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Inuit halt Aurora in Labrador
by Andy Hoffman
The Globe and Mail
April 9, 2008
Aurora Energy Resources Inc.'s hopes of extracting uranium in Labrador
were dealt a crippling blow after Inuit in the region imposed a three-
year moratorium on uranium mining.
The Nunatsiavut government voted 8-7 in favour of the ban which will
prevent Aurora or any other mining firm from producing the radioactive
metal until at least 2011.
Shares of Vancouver-based Aurora plunged almost 34 per cent in
response to
the vote results, which became effective immediately.
The people of the area 100 kilometres north of Goose Bay were concerned
about potential environmental damage and health risks.
Exploration can continue and Aurora said it will carry on with an in-
fill
drill program at its Michelin and Jacques Lake deposits in Labrador as
well as a prefeasibility study on the Michelin project, which Aurora
says
has more than 100 million pounds of uranium.
"We are committed to continue working closely with the Nunatsiavut
Government, Inuit Community Government members and beneficiaries on such
things as tailings management and environmentally safe mine closing
plans.
We strongly believe that we can demonstrate to the Nunatsiavut
Government
that uranium mining can be safely carried out, with the utmost care for
the integrity of the environment," Mark O'Dea, Aurora's president and
CEO
said in a statement.
Spot uranium prices soared to record highs of $135 a pound last
summer and
Aurora's market value peaked at over $1-billion. Since then, the spot
price has slipped to $71 a pound and Aurora's market capitalization has
plunged to $255-million. Yesterday's stock slide saw roughly $100-
million
shaved from the company's market value.
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