One question?  Did Richard not indicate that the natives were happy with any discovery in Voisey Bay that would stimulate employment for the native people?  Was this discovery not looked on in a good light then?  I need clarification on this if anyone has any please.

Mineral Exploration and Development
at Eimish (Voisey Bay)
An Introduction to the Issues

revised September 1995
Innu Nation

Economic Significance of the Voisey Bay Discovery
=================================================

Diamond Fields (DFR) continues to release results from drilling operations
which expand the size of the ore body. At present, the company has proven
reserves of 31.7 million tonnes. Most industry analysts, however, assign a
much higher potential to the deposit. In dollar terms, assuming the ore
contains 3.6% nickel, 2.17% copper, and 0.15% cobalt and is valued at
present market prices, this means that the value of the find is now in the
billions of dollars. Depending on whose numbers you believe, the present
gross value (before considering the costs of mining, royalties and taxes)
ranges from 10-20 billion dollars.

On June 8th, Inco, one of the world's largest nickel producers, bought a
25% stake in the Voisey Bay project for roughly $700 million (CDN).
Basically, what this means to investors and the mining industry is that
Inco, which controls roughly 25-30% of the world's nickel market, now has a
significant degree of control over the nickel produced at Voisey Bay. The
deal gives Inco the rights and obligation to market all of the nickel and
cobalt produced by the mine for the first 5 years of production and a
minimum of 133 million tonnes for the next 15 years. A few weeks prior,
Teck, another large mining concern, paid over $100 million for a 10% share
in Diamond FIelds. In concluding these deals, Diamond Fields has gained
large partners with extensive experience in nickel mining and very deep
pockets to finance the project, and with Inco, a guaranteed buyer for most
of the product.

What this means is that it is no longer a question of if there will be a
mine. Unless something radically changes, the outstanding questions are now
"how and when" the mine will be built.

Diamond Field's deal with Inco is structured to insure that Diamond Fields
Co-Chairman and majority stockholder, Robert Friedland, remains in control
of the company and the Voisey Bay development. It will be Diamond Fields
that has the lead in developing the mine, with partners Inco and Teck
playing support roles in the project.

The issue of how the mine will be developed is still outstanding. The
Newfoundland government and media has given a great deal of attention to
the possibility of a smelter being built to refine the ore from the mine.
However, Diamond Fields has publicly stated that if a smelter is built in
Newfoundland or Labrador, it will not be built at Eimish, although Goose
Bay and other sites on the Island are being considered.

> From the Innu perspective, the almost certain prospect of a large producing
nickel mine and associated infrastructure, such as port facilities and
roads, only 75km from Utshimassit (Davis Inlet) threatens to open a
Pandora's box of complex problems.

Innu are expressing a great deal of uncertainty over the future of their
communities and their way of life, and anger over the refusal of the
companies to deal fairly with Innu concerns. They are worried about the
implications of additional social and economic pressures on communities
that are just beginning to heal after years of abuse and despair.

The frantic pace of exploration and development is not permitting Innu
communities time to adapt organically to this new reality. The timelines
and goals of the companies and the Newfoundland government do not take into
account the need of the Innu to determine their own visions of an economic
future of their communities--a vision which may not include Voisey Bay.

Related Mineral Exploration Activities
======================================

At last count, there were over 250,000 claims staked in Labrador by
hundreds of companies and individuals. The majority of these claims are in
the Eimish area and north of Nain, but a growing number of claims are being
staked in other areas of Innu land use. Even if there is not another
"Voisey Bay discovery", the impact of exploration work needs to be
carefully considered. These claims constitute "third party interests" at
the land rights table according to the Newfoundland government. In
addition, if they are actively explored, there are direct impacts on Innu
rights and the environment which are associated with airborne geophysical
surveys (intensive disturbance of wildlife), other helicopter activity,
exploration camps (potential for increased harvesting by survey workers,
garbage, water pollution, etc. ), just to list a few of the issues which
need to be considered.

The most geologically interesting areas for nickel/copper/cobalt (e.g. the
areas with rock formations much like those at Eimish) were staked prior to
the announcement of the Voisey Bay discovery by Diamond Fields and Archean
Resources. These include the Harp Lake and Shapio Lake areas, both of which
have been extensively staked. The majority of these claims were staked
following the discovery, and many of them will result in no significant
finds. However, there is a possibility that other "discoveries" will be
announced. According to geologists, there is the potential for more than
one "Voisey Bay" in Labrador.

Additional finds would make large-scale industrial development (such as the
construction of a smelter on-site) more likely, and the development of
associated infrastructure (roads, rail and port facilities) may revive
interest in old projects that were abandoned for economic reasons (such as
the Strange Lake rare-earth metals deposit or the BRINEX Kitts-Michelin
uranium project).

The cumulative effects of mineral exploration and development, when
considered along with the impacts of other activities such as military
low-level flight training, the Churchill Falls hydroelectric project,
forestry activities, road development, outfitting, etc. may be
considerable. Innu people have borne most of the impacts of these
activities without receiving any of the benefits, while the land and
wildlife that they rely on to sustain their way of life is increasingly
under assault.

Environmental Impacts
=====================

The impacts of exploration, especially exploration conducted at this pace
and scale, are not being adequately addressed. Newfoundland has failed to
responsibly exercise the jurisdiction that it claims over Innu land. It was
quickly apparent that Newfoundland's regulatory regime was completely
inadequate to deal with exploration of this pace and scale, and the belated
introduction of new regulations occured too late to have any effect on the
conduct of this years exploration activities.

Some examples include:

* Since the Newfoundland government and most companies did not
inform the Innu Nation of their activities, there remains a large potential
for conflict between Innu land use and exploration activities. Innu
concerns include illegal harvesting by survey workers, siting of
exploration camps in areas of intensive Innu land use or cultural
significance, increased helicopter and airplane traffic over sensitive
wildlife habitat or harvesting areas, etc.

* Airborne geophysical surveys involve flying transects (usually no
more than 250-500 meters apart) over the claim block at altitudes of
approximately 100 ft. above ground level. Innu hunters from Utshimassit
(Davis Inlet) have already been overflown by survey helicopters in Sango
Bay. In early May, both the Innu Nation and the Canadian Wildlife Service
expressed serious concern over the impacts of aerial survey work on key
wildlife, such as caribou and migratory birds. To date, nothing has been
done to effectively regulate these activities to protect wildlife.

* Until September, there were enforceable regulations governing the
siting and operation of exploration camps or the conduct of aerial survey
work. Even with the new regulations, the Newfoundland government lacks the
means to effectively monitor the activities of exploration crews;

* There are few examples of consultation between government
departments on the potential impacts of exploration activities, but what
little consultation exists is hampered by the absence of critical baseline
data on wildlife populations and distributions, key habitat areas,
archaeological sites, etc. Even those rare instances where baseline data
exists, there is a serious deficit in the basic ecological and cultural
research required to make informed decisions.

Current Events
============

Recently, the Innu Nation has had discussions directly with Newfoundland
Premier Clyde Wells and Diamond Fields Resources. The goals of the Innu
Nation in these negotiations is to attempt to protect Innu interests prior
to achieving a negotiated land rights agreement.

In dealing with the Province, the Innu Nation is attempting to negotiate a
protocol to provide interim protection for Innu land and Innu rights from
mineral exploration and development activities at Eimish. Two meetings
between Wells and the Innu Nation have taken place, and a third meeting is
anticipated in the near future.

While the fact that negotiations are taking place may be a positive
development, the Innu Nation has major difficulties with Newfoundlands
approach. In general terms, the Province is offering to provide the Innu
Nation with information and a limited advisory role in decisions regarding
approvals of exploration activities. However, Wells has made it clear that
the Province is not prepared to delay the exploration activities in order
to collect baseline environmental data or conduct an environmental review
of the impacts of exploration and development activities at the site.

Innu Nations preliminary discussions with Diamond Fields are based on their
recognition that the project is already having a significant impact on Innu
interests. Through negotiations, the Innu Nation is attempting to ensure
that mineral exploration and development respects Innu rights and is
environmentally viable. The Innu Nation also seeks to ensure that any
mining project proceeds in a way that provides real economic benefit and
contributes to the long-term social development of the Innu people of
Utshimassit and Sheshatshiu.

The Innu maintain that no development should be considered until two
conditions have been met: 1) a resolution of land rights negotiations is
achieved through a final settlement; 2) a comprehensive study of the
environmental, social and economic implications of mineral exploration and
development is complete.

If exploration and development continues to proceed without resolution of
land rights or the negotiation of substantial interim measures, the Innu
Nation has publicly indicated its intention to pursue an injunction against
the government and/or the companies in the courts.

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