Progress is being made on the Nanisivik Naval Facility near Arctic Bay, Nunavut.
Prime Minister Stephen Harper first announced the $100 million project in 2007.
Earlier this year, plans for the facility were significantly scaled back. Officials blamed the high cost of building in the North saying the $100 million committed to the project won't go as far as predicted.
The Department of National Defence said the project is now in the design phase and some of the environmental site inspections have been done, including an underwater video survey of habitat near the existing wharf.
Nyrstar, the mining company which ran the former mine site, has removed old fuel tanks and is remediating the soil.