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Ontario exploration spending continues slide, but several projects advance to mine development
Exploration and deposit appraisal expenditures in Ontario were down significantly in 2014 – no surprise to junior mining companies, geologists, drilling companies and manufacturers of drilling consumables. But the news wasn’t all bad as the New Year dawned.
Revised estimates published by Natural Resources Canada in September pegged exploration and deposit appraisal expenditures for Ontario at $509.5 million, less than half the amount spent in 2011 and down again from last year’s total of $562 million.
Ontario still leads all other provinces and territories with 24 per cent of spending in Canada, but that’s down from Ontario’s 30.8 per cent share registered in 2010.
Gold continued to be the predominant target, accounting for $416.3 million of total spending for the year. Grass roots exploration took most of the hit, though several of the most promising projects crossed the threshold from exploration to mine development. By late January, gold had rebounded from its October low of $1,140 and was sitting at just under $1300.
“We had a very good run from the early 2000s,” said Rod Thomas, president of the Prospectors and Developers Association of Canada. “China was growing at double digit rates and there was a huge demand for commodities starting around 2003 all the way to the financial crisis in 2008… but we bounced back and the industry did really well until around April 2012.”