The level of interest in mineral exploration in British Columbia has increased appreciably over the past several months, largely as a result of legislative and policy changes at the provincial level.
Venture capital markets are experiencing strong demand for mineral exploration funds destined for the province, and the junior mining sector, which accounts for most new mineral discoveries in British Columbia, is ramping up exploration programs targeted at known mineral-rich areas in the province.
“Indications are that mineral exploration levels are expected to more than double, from about $30 million last year to more than $60 million this year,” says Bruce McKnight, executive director of the Vancouver-based British Columbia & Yukon Chamber of Mines.
Yet this is still a far cry from the levels experienced in the 1980s, when $150-200 million was spent annually on exploration. Furthermore, year-to-date statistics that track the acquisition of new mineral tenures are still below 2001 levels and less than 20% of 1990 levels.
A decision on the Lillooet Land and Resource Management Plan (LRMP), a proposed $1.1-million project in the province’s interior, will be a bellwether in terms of the government’s commitment to striking a balance between environmental and economic interests. The province already has a well-established track record in terms of its commitment and dedication to the environment. Now British Columbia must restore investor confidence.
So far, the province has taken numerous steps to renew interest in mining. These include the following:
q a new 20% flow-through share credit, in addition to the 15% federal flow-through exploration tax credit;
q greater legislated certainty for land use and access to all lands outside of parks;
q clarification of a titleholder’s responsibilities when operating on private land; and
q the sale of property without the transfer of environmental liability.
— The preceding is from an information bulletin published by the British Columbia & Yukon Chamber of Mines.
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