Mineral exploration in the NWT falls 80% in 2009

Canada’s Northwest Territories seems to be of waning interest to mine-finders, according to a new estimate from Natural Resources Canada (NRCan).

Mineral exploration expenditures in the Boreal-forested region fell to $29.5 million in 2009, an 80% plummet from $148 million in 2008.

There is a silver lining: NRCan’s preliminary estimate for 2010’s exploration expenditure in the N.W.T. is $66.3 million. However, $36 million of that is projected for diamond mine appraisal, leaving only $30 million to be spent on exploration.

The N.W. T’s 2009 exploration expenditures only makes up a piddling 1.7% of Canada’s total exploration expenditures, which is particularly shocking considering the region occupies 20% of Canada’s landmass. In 2006, the N.W.T. accounted for 9.2% of Canada’s expenditures.

The region’s Arctic counterparts, the Yukon and Nunavut, fared better, seeing spending of $75 million and $189 million, respectively, in 2009.

It’s worth noting that 2009 was the first time in 15 years that mineral explorers spent more in the Yukon than in the N.W.T.

The N.W.T. has fallen to eighth in NRCan’s exploration and deposit appraisal expenditure rankings of Canada’s 11 provinces and territories from sixth spot, which it held in 2005.

From 2005 to 2009, $642 million was spent on exploration and prefeasibility studies in the N.W.T., contrasting with $1.3 billion spent in Nunavut. And $500 million was spent in the Yukon over this period.

In 2010, explorers are expected to spend $75 million in the Yukon, and $238 million in Nunavut.

According to the report, the last time the Northwest Territories saw such a lack of exploration interest was in 1993.