Post by
PGMBOY on Feb 05, 2007 2:29pm
receives Meadowbank road-building permits
Cumberland receives Meadowbank road-building permits
Cumberland Resources Ltd (C:CLG)
Shares Issued 75,305,274
Last Close 2/2/2007 $6.94
Monday February 05 2007 - News Release
Mr. Kerry Curtis reports
CUMBERLAND OBTAINS PERMITS TO ADVANCE ROAD CONSTRUCTION TO MEADOWBANK GOLD PROJECT, NUNAVUT
Cumberland Resources Ltd. has obtained all land rights necessary to advance construction of the 110-kilometre all-weather access road to the company's 100-per-cent-owned Meadowbank gold project located 70 kilometres north of Baker Lake, Nunavut. At a signing ceremony held in Cumberland's offices on Feb. 2, 2007, the company and the Kivalliq Inuit Association (KIA) signed the required land and quarry leases to initiate road construction on Inuit-owned lands. Earlier in January the company signed land and quarry leases with the government of Nunavut, and Indian and Northern Affairs Canada (INAC) allowing initial construction to commence from the community of Baker Lake. To date, total conventional road access achieved is approximately 18 kilometres, including approximately 13 kilometres of new construction. The Meadowbank project, designed to produce an average of 330,000 ounces of gold per year over an eight-year mine life, will become one of Canada's highest output gold producers.
"We are very pleased with the prompt issuance of the permits and licences from the government of Nunavut, INAC and the KIA," stated Kerry Curtis, president and chief executive officer. "With the continued strong support from the three regional landowners, the residents of Baker Lake and surrounding communities are able to benefit from construction activities. Road construction operations are currently operating at approximately 75-per-cent capacity and are expected to immediately accelerate to 100 per cent. When road construction is at full capacity, its northern Inuit employment level is anticipated to be approximately 55 per cent."
Road construction
Since receiving a project certificate from the Nunavut Impact Review Board on Dec. 30, 2006, Cumberland has obtained land access and quarry permits from the government of Nunavut, Indian and Northern Affairs Canada, and the Kivalliq Inuit Association to commence and advance road construction to Meadowbank. Additional licences were received from Natural Resources Canada and other territorial departments to commence construction. Initial road construction has advanced in the municipality of Baker Lake and on federal-owned (INAC) land. Construction will now commence on Inuit-owned land and the company expects to complete road construction during the 2007 shipping season.
Benefits to Inuit
The commencement of road construction has initiated training and employment opportunities for the residents of Baker Lake and the surrounding Kivalliq communities. Cumberland retained Nuna Logistics Ltd. as contractor for road construction and Nuna has recently undertaken on-the-job training programs in Baker Lake. From an original 200 applicants, the training program has employed 40 people from Baker Lake with the community benefiting from the cost of training estimated at $250,000. When at full operations, road construction will employ up to 43 northern Inuit out of a total of 64 positions, with positions varying from general labourer through to heavy equipment operators.
Management appointments
As Cumberland prepares for development and production at the Meadowbank project, the company continues to build an outstanding team of mine development and operations professionals with northern experience. Cumberland is pleased to announce the appointment of Don Gove as superintendant, materials and transportation, and Wayne Grudzinski as safety superintendant.
Mr. Gove joins Cumberland from the Cantung mine in Northwest Territories where he was superintendant, materials management. Mr. Gove has over 35 years of material management experience in the mining industry, and has held senior positions at three open pit and four underground mines. He has been involved in five mine start-ups in NWT and British Columbia and has worked at operations mining tantalum, zinc, copper, molybdenum, gold, diamonds and tungsten.
Mr. Grudzinski comes to Cumberland from the Lupin mine operations in Nunavut where he was the manager of loss control and site manager during the recent reclamation phase of the mine. With over 25 years in the mining industry, he has held senior positions at three arctic gold mining operations, one open pit and two underground. Mr. Grudzinski was a member of the legislated review committee that undertook the review and amendments of the Mine Health and Safety Act, and Regulations of the northwest and NWT.
Meadowbank gold project
Meadowbank, host to Canada's largest undeveloped pure gold open pit gold reserves, is designed to produce an average of 330,000 ounces of gold per year over an eight-year mine life (1). With the development of Meadowbank, Cumberland will emerge as mid-tier Canadian gold producer. The board of directors of Cumberland made a production decision in September, 2006, and the company has since secured at least $254-million for its gold loan facility and has raised approximately $100-million in equity financing to be used for development of Meadowbank. Subject to the timely receipt of all ancillary permits and requisite financing, production is expected to commence in late 2008 or early 2009.
(1) Meadowbank feasibility study due diligence (December, 2005) -- as a requirement of bank financing, bank-appointed independent engineers SRK Consulting (UK) completed a due diligence audit of the Meadowbank feasibility study completed in early 2005 by AMEC Americas Ltd. The results from the feasibility study by AMEC are summarized in a technical report, dated March 31, 2005, prepared by AMEC in accordance with the standards of disclosure for mineral projects as defined by National Instrument 43-101. Construction scheduling and capital cost estimation has been prepared by Merit International Consultants Inc. Metallurgical and process testwork was completed by SGS Lakefield Research Ltd. Process design was completed by International Metallurgical and Environmental Inc. and AMEC. Supporting geotechnical engineering, hydrogeological and geochemical studies were completed by Golder Associates Ltd. Both the SRK and AMEC assumptions include a long-term gold price of $400 (U.S.) and an exchange rate of 75 U.S. cents per $1 (Canadian).
© 2007 Canjex Publishing Ltd.