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LIFEISGOODINHAYRIVERByRENEFRANCOEURProgressattheoldPinePointminesitethelargestandmostprotablezinc-leadmineinCa-nadianhistoryisatastandstillasTamerlaneVenturesInc.con-tinuestosearchforfundingtogettheballrolling.WerestillinnegotiationswithlargerminingcompaniesinAsiaEuropeaswellasinNorthAmerica.Thesearemajorcompaniesinvolvedineithertheminingorsmeltingofleadandtheyhavethenan-cialresourcestofundtheproj-ectBrentJonesthedirectorofcorporatecommunicationsatTamerlanetoldTheJournal.WhileJonesremainedmumonthesecompaniesidentitieshesaidtalksaregoingwell.TheWashingtonstate-basedcompanywhichpurchasedthecurrentlydefunctPinePointsiteandthesurroundingareain2004islookingforabout140milliongiveortakede-pendingonthenegotiationstostartbuildingandminingleadandzincagainJonessaid.AccordingtoJonesadownturnintheglobalecon-omyoverrecentyearsespe-ciallywhenitcomestotheminingindustryhasslowedtheentireprocess.Itsbeenaverydiffi-culttimeforsmallerminingcompaniestogetnancinghesaid.Butevensincethebeginningofthisyearthingshavebeenabitbettersowerecautiouslyoptimisticthatitshouldnttaketoomuchlon-gertogetfunding.Oncethecapitalisse-curedconstructionoftheminecouldbeginwithinsixmonthsandwouldcontinueforan18-24monthperiod.Tamerlanehasalltheper-mitstostartconstructionandatsomepointafterwehavethefundingwedneedfur-therpermittingandbeginanenvironmentalreviewbeforeproductionJonessaidnotingthereisstillalongwaytogo.Everyonesbiggestcon-cernistheenvironmentandtheywanttomakesurethisrestorationofworkatPinePointisgoingaboutitinare-sponsiblemannerenviron-mentallyandsocially.Soforourpartitsimportanttohaveasmuchinvolvementwiththepublicinthebeginning.TamerlanevisitsNWTtalksbenetsTamerlanestaffincludingnewCEOJohnKeytraveledtotheNWTlastmonthtotalkabouttheprojectintroduceKeytocommunityleadersanddiscussthefutureimpactofarestoredPinePoint.OneofthereasonswewentupthereistodiscussmoreaboutenvironmentalreviewingbecauseitsbeenabitofastickingpointforminesintheNWTandallacrossCanadaJonessaid.Wewanttomakesurethateverybodyinthecommuni-tiesareinvolvedatanearlystageandeveryonehasinputsothatnoonefeelsliketheirvoiceisnotbeingheard.TheteammetwithKatlodeecheFirstNationontheHayRiverReservetheDeninuKueFirstNationinFortResolutionandtheMtisinbothcommunities.MeetingswerealsoheldwithAndrewCassidyHayRiversmayorandafewMLAs.Itwasntareallyformalvisit.IthadmoreofasocialpurposetointroduceJohn...WedidhowevertalkaboutthepotentialbenetstothecommunitysuchasjobsJonessaid.Tamerlanespolicyistohireasmanylocalworkersaspossibleheadded.Wedalsodoasmuchlocalcontract-ingaswecanfromtruckingcompaniestocateringandjanitorialservices.ThecompanyisintalkswiththeGNWTaboutteam-inguptoprovidetrainingpro-gramsonsiteatPinePointtogivemorelocalstheopportu-nitytobecomecertiedheavyequipmentoperatorsorunder-groundminersJonessaid.Itwouldbefundedbybothpartnersandallowmoreinterestedcommu-nitymemberstobecomeeligibleforhigherpayingjobshesaid.PinePointsrebirthmeansmultipleopportunitiesforHayRiverspecicallyJonessaidasthecompanyplanstousetherailheadinthetownlocated42kmeastoftheminesite.Ithinkmostpeopleareinfavourofthisbecausetheyseethosebenets...WedbetruckingtheoretoHayRiverthenwewouldrailitsouthfromthere.TherewaspreviouslyarailwayouttothesitebutitwasrippedoutbytheminespreviousownerCominco.AccordingtoJonesitwouldbetoocostlytorebuild.ThesitewouldalsobeusinghydropowerfromtheTaltsonDam.Onceitgetsintoproduc-tionPinePointsgoingtogeneratealotofrevenueandprotJonessaid.Weg-urewecanproduce60000tonnesofzincayearand30000tonnesofleadayearanddependingonthemarketatthetimethatcangenerategoodrevenue.Buttheimpor-tantthingisnotsomuchtheamountofmoneybecausetherewillbealotofcoststootheimportantthingisgoingtobethejobsandcontractsforlocalbusiness.TamerlanesPinePointprojectstillonquestforfundingRevivingoldminesitewillcreatemoreopportunitiesforHayRiverFilePhotoIndustryMiningByRENEFRANCOEURAvalonRareMetalsInc.ispredictingasignicantboomforHayRiverandtheNorthwestTerritoriesover-allasitmovesforwardwithplansfortheNechalachoRareEarthElementProjectatThorLakeabout5kmnorthoftheHearneChannelofGreatSlaveLakeand100kmsoutheastofYellowknife.Thecompanyplanstomineheavyraremetals-usedinhybridcarsx-raydevicesandlaseringequipmentamongmanyotherhigh-technologyuses-andprocessthemin-eralconcentratebybargingitacrossthelaketoahydro-metallurgicalplantattheoldPinePointsite42kmeastofHayRiver.Theplantwouldtakethemineralconcentrateandcrackanddissolvethemineralstoreleasetherareelementsintoasolutionwhichcanthenbeprecipitatedoutintoachemi-calconcentrateofitsown.ThatnextstageoftheprocessingandreningofamineralproducthasneverbeendoneintheNWTbe-foreDonBubarthecom-panysCEOsaid.Theter-ritoryhasalwaysbeenjustaAvalonprogressingwithThorLakePinePointplansCompanyshydrometallurgicalplanttohaverippleeffectonSouthSlaveproducershippingthebasicmineralconcentratesome-whereelse.SothiswouldbeaprettybigthingfortheeconomyintheNorthtoseethissortofoperationsucceed.Itwouldbasicallyexpandtheeconomy.Ahugeundertakingthemetallurgicalplantwouldgen-erate60or70fulltimejobsatPinePointaloneBubaradded.Overallthecompanyisestimating300newjobsintheNWTfromtheprojectwitharippleeffectintheSouthSlaveregion.Thehydrometallurgi-calplantrequirescopiousamountsoflimeopeningupanotherbusinessoppor-tunitywithlimestonearead-ilyavailableresourceintheSouthSlave.Alocalbusinesscouldthenestablishaquarryop-erationtoprovideuswiththatmaterialagainfeed-ingintothelocaleconomyBubarsaid.AdditionallyAvalonwouldbeboostingNortherntrans-portationaccessingtheNorthernTransportationCompanyLtd.NTCLtoseasonallybargethemineralconcentrateaswellastheCNraillinerunningoutofHayRivertoshiptheprocessedchemicalconcentratetoare-neryintheUnitedStates.WeplantouseasmanylocalvenuesaspossibleBubarsaidaddingthattheprojectprovidesanopportu-nitytohelppushforanex-pansionofthehydrogridintheNWT.WithoutadoubttheissueofwhatweddoforpoweratThorLakeremainsaprob-lem...AseveryoneknowstheTaltsondamhassomuchcapacityforexpansiontoproducemorepowerandneedsmorecustomers.Wedliketoseethathappen...WedbealongtermconsumerofpowerBubarsaid.Overallthisprojectcouldbeastablelong-termcon-tributorofrevenuetotheNWTbecauseitssuchabigresourceandhassuchalonglifepotentialduetode-mand.Itcouldgoformanydecades.Operatingcostsaverage264.5millionperyearovertheinitial20-yearlifeoftheoperationaccordingtothefeasibilitystudyagainstaver-ageannualrevenuesof645.8million.Averagerevenueisestimatedtobeabout886pertonneminedwithaver-ageoperatingcostsrunningat361pertonnemined.AccordingtoBubarAva-lonwhichrevealedthere-sultsofitscomprehensivefeasibilitystudyinAprilisontrackforproductionin2017subjecttonancingandpermitting.Wevedemonstratedwehaveaneconomicallyvia-bleprojectwiththefeasibil-itystudy-ahugemilestoneforus.Thenextstepsaretondtwothingscustomersthatwanttocommittobuy-ingtheproductweseektoproducetherareelementsandprojectnancingfortheconstructionoftheproject.Thetotalcostoftheprojectis1.5billionBubarsaid.Wetalkedabout30000millionaswhatweneedtostartdoingsomeearlypre-paratorysiteworkhesaid.Rightnowwehavetoworkonattractingthatcapital.Themarketsarenotveryrecep-tivetofundingrightnowsoitmaytakeabitlonger.Thesec-torisreallystrugglingrightnowbutitllturnaround.Yougothroughdowncycleslikethis.FirstNationstalkscontinueDespitemajordivisionsacrosstheAkaitchoDeninuKueFirstNationinFortRes-olutionsignedanaccommo-dationagreementwithAva-lonearlierthisyear.WerecontinuingtoworktowardsamodelthatwillallowfordirectFirstNationparticipationintheproject-equityparticipa-tionBubarsaid.Thisisasignicantchangeinhowthesetypeofagreementsarestructured.Inthepasttheyfollowedamoredirectcashtransfermodel.Thecompanyisalsoinprettyadvanceconversa-tionswiththeYellowknivesDeneFirstNationLutselKeDeneFirstNationNWTMtisNationandtheNorthSlaveMtisAlliance.WewanttomaximizetheopportunityforeveryoneBubarsaid.Whatweretry-ingtoenableisfortheFirstNationstohaveasmallown-ershippositiondirectlyintheproject.Wethinkthatsthefuture.IndustryMiningMapcourtesyofAvalonTamerlaneispreparingtobreathenewlifeintotheoldabandonedPinePointsitepicturedabovedefunctsince1988.TheNechalachoProjectwillbargemineralconcentratefromasiteatThorLaketoPinePointforprocessing.