URANIUM EXPLORATION: Moratorium lifted in northern Labrador

The Nunatsiavut government has lifted the moratorium it compulsory three years ago on the exploration, development and mining of uranium on lands belong to the Labrador Inuit.. The ban was compulsory to give the government time to create an environmental protection act and regulations that will guarantee Inuit participation in any mineral activity.

Several Canadian mining companies were hunting for uranium in the region when the ban was imposed. The mainly advanced project was probably the Michelin project owned by Aurora Energy, since 2011 a subsidiary of Western Australia’s Paladin Energy. The Michelin project was in the higher exploration stage, and a positive preliminary economic assessment was made public in 2009.

The Michelin deposit is situated in the Central Mineral Belt, 140 km north of Goose Bay. It contains 7.1 million tonnes at 0.8% U3O8 in the measured category, 23.0 million tonnes at 0.11% U3O8in the indicated group and 16.0 million tonnes at 0.10% U3O8 in the inferred category. Paladin has five other deposits in the region, and the company’s possible uranium oxide inventory could be as high as 135 million lb

Inuit open to uranium mining

A self-governing Inuit territory in northern Canada has lifted a moratorium on uranium mining, opening the door to a likely mining boom, but analyst say low uranium prices could hamper mine development in the remote region.The Nunatsiavut government, a regional assembly in place of the Inuit people of Labrador on Canada's North Atlantic coast, voted to lift the three-year moratorium on uranium mining and milling on Inuit lands.

The region hopes to be a focus for investment and jobs to the small communities around the uranium-rich Central Mineral Belt in the territory of Newfoundland and Labrador.But analysts say the companies owning looking at projects in the region will face numerous challenges, including a lack of infrastructure and difficulty financing large and exclusive uranium projects.

Australian miner Paladin Energy, which owns the Michelin project in the district said Thursday it tactics to restart exploration in mid-2012, with drilling seen in the third quarter.The Michelin project has a deliberate and indicated resource of 83.8 million pounds and cover six part deposits.