Agnico Eagle looks to grow its Nunavut gold holdings

A Toronto-based mining company is touting anewly-discovered gold deposit in central Nunavut.

The Amaruqexploration project, about 50 kilometres northwest of the Meadowbank mine near Baker Lake, is one of a handful of gold exploration optionsbeing carried out by Agnico Eagle in Nunavut. In a recent update, the company announced they'd found a promising vein of gold near an existing deposit called Whale Tale. The gold is about 300 metres underground.

The findingsare still being analysed; Agnico says it will have give a fuller picture of the resources at the site by the end of the summer. However, the company is already considering expanding its summer exploration program.

"We will be reviewing our programs at both projects with a view to increase our drilling activities", said CEO Sean Boyd in a recent news release.

Agnico Eagle runs Meadowbank, Nunavut's only fully operational gold mine. In March, the Nunavut Impact Review Board granted the company a project certificate for a second mining operation known asMeliadine. Milling equipment for that project is set to arrive at the site near Rankin Inlet during the summer sealift season.