TerraX Minerals Inc. (TSX-V: TXR; Frankfurt: TXO) has been issued a Land Use Permit (No. MV2014C005) from the McKenzie Valley Land and Water Board ("MVLWB") to conduct advanced exploration and drilling programs on its Yellowknife City Gold Project ("YCGP"). The permit has conditions applying to work activities typical for advanced exploration, and contains a condition for a security deposit of $70,000 to be deposited with the minister of Aboriginal Affairs and Northern Development Canada. The permit is for a term of five years with the option of a two year extension. The term and area of the permit will allow TerraX to efficiently explore the YCGP in the years ahead.
The permit applies to all TerraX's exploration land holdings immediately north of the City of Yellowknife with the exception of the Goodwin Claims which contain approximately 5% of the YCGP area. At the request of the Yellowknife Dene First Nation (YKDFN"), TerraX requested that the Goodwin Claims not be included in the permit. This area is currently low priority for TerraX and the YKDFN has advised that portions of the Goodwin Claims border culturally and environmentally sensitive land. TerraX will conduct below threshold prospecting activity on the Goodwin Claims to ascertain their mineral potential and at that time will sit down with the YKDFN to advise them of findings prior to any future work on the Goodwin property.
Currently TerraX has detailed planning for initial target areas totaling approximately 6,000 meters of drilling on its Northbelt Property. It is anticipated that these target areas will receive addition drilling to follow up on exploration success. The YCGP has indications of additional drill targets and as these are better defined TerraX will apply for amendments to the permit to drill these new areas. TerraX is committed to public disclosure of its future work plans and the results of work as they occur. This will allow stakeholders to be fully aware of project direction as we move forward into this exciting phase of advanced exploration.
The MVLWB received numerous letters of support from potentially impacted Aboriginal Communities, the City of Yellowknife and outdoor recreational groups which use the area together with constructive comments from a number of Government of the Northwest Territories ("GNWT") and Federal Government reviewers. In preparation for the permit application the Company conducted over 400 community engagement activities since February 2013.
TerraX's application had the potential to be complicated during the current implementation of legislation of devolution rights to manage lands and waters from the Federal Government to the Government of the NWT. TerraX wants to thank the Government of the NWT and the NWT Chamber of Mines for working together in the spirit of the NWT Mineral Strategy to coordinate and streamline the MVLWB permitting processes while respecting that the permitting process is focused on protecting the environment. The granting of this permit has confirmed TerraX's faith in the NWT permitting process. The expeditious manner in which it was granted is a tribute to the initial direction TerraX received from MVLWB for constructing a comprehensive application, and to the robustness of the permitting process within the NWT.
Joe Campbell President and CEO of TerraX said: "TerraX thanks the MVLWB for their timely, professional and balanced approach to reviewing our Land Use Permit application. I personally want to thank all those who took the time during the last year to consult with us and to submit your inquiries and letters to the MVLWB. Your participation in this process helped TerraX make a better, safer, and more sustainable submission. TerraX is fully aware that making promises on paper is vastly easier than physically carrying out those promises on the land. It is now our job to meet our commitments and safely carry out the permitted activities in an environmentally responsible manner within the conditions established by the Board and pertinent legislation. We look forward to continuing to develop our relationships within the local community as we define TerraX's future exploration plans."
Work upgrading the winter roads on Walsh and Banting Lakes and plowing and grooming of the old Crestaurum Mine road to access Phase 1 worksites has begun. Drilling is expected to begin later this month. Care will be taken to ensure that the drilling activities do not interfere with traditional trapping or Frostbite 45 on March 29th or the NWTel Ski Loppet on April 6th, events organized by recreational users on the land, the YK Multisport Association and Yellowknife Ski Club. TerraX has partnered with these organizations and provided monetary support for these events through the Great Slave Snowmobile Association Trail Riders and St. John Ambulance. All users of the trails, mining roads and ice roads are reminded to act safely and responsibly and keep an eye out for other recreational, traditional and industrial users and hazards.