Exploration and deposit appraisal spending was higher in Nunavut in 2021 than in 2020, when the exploration and mining industry was hampered by the COVID-19 pandemic. Restrictions on travel into Nunavut have continued, but more operators were able to proceed with programs in 2021. Acknowledging the ongoing impacts of the pandemic, CIRNAC renewed the option for prospecting permit and mineral claim holders to request relief from their reporting requirements under the Nunavut Mining Regulations.

In January, Agnico Eagle Mines Ltd. acquired TMAC Resources and its Hope Bay mine, associated deposits, and regional prospects in the Kitikmeot, making Agnico Eagle the owner of all three active gold mines in the territory. Exploration in Nunavut was also gold-focused, with operators including Blue Star, Northquest, Fury Gold, Agnico Eagle, Western Atlas, and Sabina Gold & Silver conducting programs. Several Inuit prospectors were also active in the territory, mainly in the Kivalliq and western Qikiqtani.

North Arrow Minerals completed its bulk sampling program on the Q1-4 kimberlite at the Naujaat diamond project in September and acquired new claims in the western Kitikmeot. There has also been renewed interest in critical and battery metals in the territory, with Bathurst Metals planning a reconnaissance mapping and sampling program at two of its platinum-group metals properties in the western Kitikmeot, and Canadian North Resources completing a drill program at its Ferguson Lake nickel-copper-PGE project in the Kivalliq.

In December 2020 the Mineral Resources division released a new Nunavut Mineral Project Inventory, in preparation for the transition to the Nunavut Map Selection system, to highlight areas with economic potential for various commodities over which mineral tenure could be selected. The online Map Selection system was successfully launched on January 30, 2021, allowing prospectors and companies to acquire mineral tenure in Nunavut without having to put boots on the ground. The system has been well received, with many existing proponents using it to expand their mineral claim holdings, and new entrants to exploration in the territory accounting for at least 25% of the tenure acquired through Nunavut Map Selection.