Critical Minerals

The economic rationale for the Grays Bay Road and Port Project rests on a geological fact: the Kitikmeot region of Nunavut, specifically the area within the Slave Geological Province, contains some of the largest and highest-grade undeveloped deposits of zinc, copper, gold, and silver in the world. These deposits have been known for decades. They remain undeveloped for a single reason: there is no way to move bulk mineral concentrates out of the region economically.

The Izok Corridor: World-Class Zinc and Copper

Izok Lake

The Izok Lake deposit is one of the richest undeveloped zinc resources on the planet. Located approximately 255 kilometres south of Grays Bay, the deposit contains approximately 15 million tonnes of resources grading 13% zinc and 2.3% copper. These grades are exceptionally high by global standards; most operating zinc mines produce from ore grading 5-8% zinc.

The deposit also contains significant silver and lead, and is likely enriched with other critical minerals including gallium and germanium, both of which are essential for semiconductor and electronics manufacturing and are currently dominated by Chinese production.

High Lake

The High Lake deposit, located north of Izok Lake and closer to the proposed road route, contains approximately 14 million tonnes of resources grading 3.8% zinc and 2.5% copper. While the zinc grade is lower than Izok, the copper grade is higher, and the deposit's proximity to the proposed infrastructure corridor makes it a complementary development target.

Combined Production Potential

Together, the Izok Corridor deposits are projected to produce approximately 180,000 tonnes of zinc and 50,000 tonnes of copper per year over a multi-decade mine life. At current commodity prices (zinc around $2,800/tonne, copper around $9,000/tonne), annual production value would be in the range of $950 million or more.

Both deposits are currently held by MMG Limited, a subsidiary of China Minmetals Corporation. This ownership structure adds a layer of geopolitical complexity to the critical minerals discussion, as Chinese state-owned entities control the rights to deposits that Canada considers strategically important to its own critical minerals supply chain.

Gold: Hope Bay and Back River

Hope Bay

The Hope Bay gold mine, located approximately 125 kilometres southwest of Cambridge Bay, was developed by TMAC Resources and achieved commercial production in 2017. Agnico Eagle Mines acquired TMAC in 2021 and subsequently suspended production in 2022 to focus on exploration at the Doris and Madrid gold deposits within the Hope Bay belt.

The Hope Bay property covers 1,101 square kilometres and contains multiple gold-bearing structures. While Hope Bay has its own airstrip and is not directly dependent on the Grays Bay road, improved regional infrastructure would reduce operating costs and support expanded exploration and eventual production restart.

Back River (Goose Mine)

Sabina Gold & Silver Corp.'s Back River gold project is located roughly halfway between Bathurst Inlet and the Nunavut-Northwest Territories border. The Goose mine, the primary development target within the Back River project, has been advancing toward production. B2Gold Corporation acquired Sabina in 2023, bringing additional capital and operating experience.

The Back River project, like Hope Bay, would benefit from the regional infrastructure the Grays Bay road would provide, though it has been planned with its own airstrip access and seasonal sealift via Bathurst Inlet.

Other Deposits

The broader Kitikmeot region hosts numerous additional mineral occurrences and exploration-stage projects, including:

• Lupin — A formerly producing gold mine near the proposed road route, operated by Kinross Gold until closure in 2005. Its infrastructure, including an airstrip, could be repurposed.
• Jericho — A diamond mine that operated briefly before closure. Diamond-bearing kimberlites in the region suggest further potential.
• Numerous base metal and precious metal exploration properties throughout the Slave Geological Province that have never been drilled because of access costs.

The Infrastructure Gap

The fundamental challenge for all of these deposits is the same: the Kitikmeot region has no surface transportation infrastructure. Mineral exploration requires expensive fly-in/fly-out campaigns. Bulk sampling requires winter road transport during the brief ice road season. And mine development, which requires moving millions of tonnes of concentrate to market annually, is simply not viable without a permanent road and port.

This is what makes the Grays Bay Road and Port Project different from a typical infrastructure proposal. It is not incremental improvement to an existing system. It is the foundational infrastructure that would make an entire mineral province accessible for the first time. Without it, deposits like Izok Lake remain geological curiosities rather than producing mines.

Canada's Critical Minerals Strategy

The federal government's Critical Minerals Strategy, released in 2022, identifies 31 minerals critical to Canada's economic security. Zinc and copper are both on the list, as are several minerals found in association with the Kitikmeot deposits. The strategy emphasizes the need to develop domestic supply chains and reduce dependence on foreign sources, particularly China.

The irony is not lost on observers that China Minmetals, through MMG, currently controls the Izok Lake and High Lake deposits. Developing Canadian infrastructure to export Chinese-controlled mineral wealth creates a complex policy situation that the critical minerals strategy does not fully resolve. Whether future policy action might address foreign ownership of strategically significant mineral deposits remains an open question.