Avalon Rare Metals Inc.'s Thor Lake project near Yellowknife was given the Dene name of Nechalahcho on Monday, symbolizing a partnership between the mining company and the local First Nation.

Nechalahcho — which means Long Point — was chosen for the site by elders from the Yellowknives Dene First Nation, who blessed the mine site at a ceremony Monday.

Band officials say Avalon is consulting and working with the First Nation on the site, located about 100 kilometres southeast of the N.W.T. capital.

"Avalon has come directly to the chief and council and informed us as of what they were doing. That's what you call proper consultation," Yellowknives Dene Chief Ted Tsetta said at Monday's ceremony.

The Thor Lake site has a deposit containing rare earth minerals such as terbium, which can be used to make wind turbines and electric cars. Other minerals at the site are used in high-tech products.

Often in conflict

Previous mining companies that tried to explore for minerals at the same location had left aboriginal groups out and left behind environmental problems, Tsetta said.

Avalon CEO Don Bubar promised to respect the land and its people, as part of a project that he expects will run for more than 100 years.

"Too often, First Nations and mining companies find themselves in conflict, usually over different priorities for the use of the land," Bubar said.

Tsetta said Avalon is talking about partnerships with the Yellowknives Dene and creating jobs. Today, the First Nation's members have mining experience, he added.

"This project from Avalon … can bring lots of hope and prosperity through education and training and jobs," he said. "Business opportunities lie in the front for us."

Band member Sarah Plotner said communication has been good between Avalon and the First Nation, but she still has mixed feelings about mining on traditional lands where her now-deceased father once had a trapline.

"He taught us how to go hunting, how to go trapping. We set our own traps," Plotner said, adding that she also has memories of canoeing and muskrat hunting with her mother.

Testing indicates that the Thor Lake site could have one of the largest rare element deposits in the world. However, it still needs roads and power, and its environmental impact is currently unclear.

Geologists with Avalon say they hope Thor Lake can open as a mine by 2013.