Annual spending on mineral exploration in Canada has stabilized above $500 million, after declining from a peak of $921 million in 1997 and a low of $497 million in 2000, according to a report published by Natural Resources Canada.
Titled Overview of Trends in Canadian Mineral Exploration, the report goes on to say that three factors — easier access to funding, higher gold prices and the search for diamonds — contributed to the rise in spending. Also, the junior sector is recovering, and major mining companies are expected to spend more on exploration in the near term. Expenditures continue to be directed mostly at Ontario, Quebec and the Northwest Territories.
In 2001, Canadian companies spent $513 million on mineral exploration, of which 74% was applied to direct exploration, with the remainder used for project appraisal. Of the total spent on exploration, 43% was for drilling, whereas geoscientific surveys (geology, geochemistry and geophysics) accounted for 36%. In deposit appraisals, surface and underground drilling account for 31% of spending; engineering, economic and feasibility studies, 21%; and development (shafts, crosscuts, raises, declines, dewatering), 14%.
In 2001, precious metals (gold, silver and platinum group elements) were the most sought targets. Diamonds were second, outpacing base metals for the first time.
The report says reserves of copper, silver, zinc and lead are declining, whereas nickel production and reserves remain in good shape. Gold reserves remain stable but look better, owing to stronger prices.
Platinum group metals production and reserves are on the rise, while reserves of iron ore and uranium are sufficient to maintain or increase output over the next 25 years.
Be the first to comment on "Canadian exploration trends"