Please report on all properties, deposits or mines for which you are the operator in the province or territory covered by this report. All categories of expenditures in Sections 14,15,16 and 18 should be reported by the mineral resource development work phase as defined in 12.0 and by the location of activity (a mine site or not, also referred to as: on- or off-mine site) as defined in 13.0. Report all costs in Canadian dollars ($). For more information on specific parameters and study cases, consult the Guidelines.
| 12.0 | Mineral Resource Development Work Phases | |
| 1. |
EXPLORATION WORK PHASE: the search
for, discovery and first delimitation of a previously unknown mineral deposit or
the re-evaluation of a sub-marginal or neglected mineral deposit in order to enhance
its potential economic interest based on delimited tonnage, grade, and other characteristics.
This phase is completed when a deposit has sufficient indicated mineral resources
accompanied by a positive scoping study (preliminary economic assessment) that justifies
additional, more detailed and costly deposit appraisal work. The expenditures include
all field activities and support, including capital, repair and maintenance expenditures1,
carried out on- or off-mine site. (see 13.0 and footnotes 2&3)
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| 2. |
DEPOSIT APPRAISAL
WORK PHASE: the steps undertaken to bring a delimited deposit by definition drilling,
comprehensive tests and planning to the stage of detailed knowledge required for
an exhaustive and complete feasibility study that will fully justify and support
a production decision and the investment required. The expenditures include all
field activities and support, including capital, repair and maintenance expenditures1,
carried out on- or off-mine-site2, 3.
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| 3. |
MINE COMPLEX DEVELOPMENT WORK PHASE: all
work and support activities carried out on a mine site2 to define, block out and
gain access to the ore and prepare it for production, as well as to extend the current
ore reserves by exploring and appraising the immediate vicinity of the deposits
inside the limits described in guideline 12.0 (3.) page3. The expenditures include all field activities and support, including capital, repair and maintenance expenditures carried out on a mine site2 that is in production4 or committed to production3 and for related infrastructure and plants, such as pelletizing plants, that are not located at the mine site, but exclude metal smelting and/or refining plants. |
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| 13.0 |
Site of a producing mine/project committed to production |
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Covers all activities related
to mine complex development, including those related to installations and infrastructure
located outside the mine site and for exploration or deposit appraisal (guideline
12.0 (3.) page 3) directed at an additional mineral deposit SEPARATE from the current
mine reserve and located STRICTLY ON AN EXISTING MINE SITE2 THAT IS IN PRODUCTION
OR COMMITTED TO PRODUCTION3. This excludes the sites of temporarily or permanently
closed mines, and advanced projects not yet committed to production.3
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1 Repair and
maintenance expenditures apply only to capital assets (construction, machinery and
equipment), not to field expenditures.
2 A MINE SITE is the area that can be accessed and exploited from the current or committed installations. The size of this area is determined by the environmental permits obtained and varies depending on the commodity under consideration, on the attitude (horizontal, inclined, vertical), on the type, extent and number of the deposit(s), and on the mining method(s) in use. (See guideline 13.0 Criteria to Define the Limits of a Mine Site.)
3 For a
mine site to be COMMITTED TO PRODUCTION, all of the following criteria must be met:
4 Exclude
mining cost to avoid duplication of operating costs with the Annual Census of Mines,
Quarries and Sand Pits-Establishment Schedule.
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DESCRIPTION OF CATEGORIES OF EXPENDITURES |
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| 14.0 |
Surface and Underground Field Surveys and Work (Includes Field Overhead) |
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Includes
expenditures associated with geoscientific surveys, drilling, rock work, other costs,
engineering, economic and feasibility studies, mineral leases, and head office costs
related to the project. It includes wages, salaries, fringe benefits, food, accommodation
and other services, equipment rentals, all vehicle expenses, transportation costs
(for people and equipment), and all related technical activities/services such as
planning, data collection, interpretation, evaluation, map making and reports. The
costs reported for each activity should include all work carried out by the project
operator and contractors, and all required field supervision and project management.
Other costs should be attributed to the field survey and work category they relate
to, if feasible. All surveys and work done for environmental purposes will be entered
in 15.5. Include all costs related to Canadian projects, whether incurred in Canada
or abroad.
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| 14.18 |
MINERAL LEASES, CLAIMS, STAKING AND LINE CUTTING: staking costs
and fees (including recording fees), licence and lease application, renewal fees,
legal fees pertaining to mineral leases and claims, and fees paid in lieu of assessment
work. Fees paid in lieu of unperformed assessment work should be credited to this
account upon reimbursement following performance of the work (when applicable).
All environment-related costs are excluded.
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| 14.21 |
GEOLOGY AND GEOCHEMISTRY SURVEYS
GEOLOGY: prospecting, mapping, rock sampling, assaying associated with geological
surveys, supervision of drilling programs or rock work, core logging, and all other
related work such as geotechnical and mineralogical studies.
GEOCHEMISTRY: sample collection and supervision in relation to various types of geochemical sampling activities in stream, lake or glacial sediments, soils and rocks, as well as assaying, indicator mineral analysis and other related activities. |
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| 14.22 |
GROUND AND AIRBORNE
GEOPHYSICS: airborne, surface, downhole or underground geophysical surveys using
magnetic, electromagnetic, induced polarization, radar, gravimetric and other methods,
and other related activities. Remote sensing and satellite-imaging activities are
also included in this category.
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| 14.5 to 14.8 |
DRILLING is reported as ‘’ surface’’ or
‘’underground’’ and as ‘’diamond drilling’’ or ‘’other types’’ (rotary, percussion,
reverse circulation, overburden and sonic drilling, etc.). This activity includes
all expenditures related to personnel and drill obilization, site preparation, drilling,
moves between drill holes, required mobile and support equipment, other costs, as
well as related sampling and assaying costs, and including microdiamond testing
and diamond recovery. Large-diameter drilling or reverse-circulation drilling undertaken
to obtain large samples (bulk), including handling and transporation costs should
be reported here.
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| 14.9 |
STRIPPING & TRENCHING: blasting for large surface open
cuts, related control sampling and assaying (including microdiamond testing and
diamond recovery), all costs related to large and very large bulk sampling programs
collected by these methods (including handling and transportation).
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| 14.23 |
UNDERGROUND
ROCK WORK: shaft sinking, drift/crosscut, raise/decline (structure component, see
18.1.1), rock slashing, stoping, shallow glory holes, related control sampling and
assaying (including microdiamond testing and diamond recovery and excluding pilot
work, see 14.14), dewatering (excluding pumping tests, see14.14) and all costs related
to large and very large bulk sampling programs collected by these methods (including
handling and transportation).
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| 14.14 |
ENGINEERING STUDIES: all expenditures related
to the additional studies, tests, pilot work and production tests (for mining, sampling
plant, mineral processing and/or metallurgy of bulk samples, dewatering/pumping
tests, etc.) and all plans, designs and appraisals required to establish the technical
feasibility of a mining project.
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| 14.24 |
SCOPING, PRE-FEASIBILITY,
FINAL FEASIBILITY STUDIES (Incl. economic studies) ECONOMIC STUDIES: all expenditures
for economic studies (markets, prices, financing, etc.) required to appraise a mining
project and establish its economic feasibility.
SCOPING, PRE-FEASIBILITY, FINAL FEASIBILITY STUDIES: all expenditures related to scoping, prefeasibility project reviews and production feasibility studies required to develop and mine a deposit, and to obtain the required leases, permits and authorizations, excluding environmental permits (15.5) and land access expenditures (16.1). |
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| 15.5 |
Environment See section
18 for the environment-related capital and repair and maintenance expenditures (protection
and mine site restoration).
ENVIRONMENTAL CHARACTERIZATION: all costs of environmental characterization, baseline studies, assessment (preliminary environmental impact studies). ENVIRONMENTAL ASSESSMENT AND PERMITS: all costs related to the process of meeting the legal and regulatory requirements or guidelines for environmental assessment and for obtaining permits required for the work program under consideration, including preproduction permits. ENVIRONMENTAL PROTECTION: costs for monitoring (additional to normal practices) and complying with laws, regulations and guidelines related to air emissions, liquid effluents, ground pollution, and wildlife and habitat protection. Environmental fines are included in this category. ENVIRONMENTAL RESTORATION: all costs of decommissioning TEMPORARY installations, reclamation and restoration, as well as monitoring, if required, after specific work has ceased. Include in Section 18 capital, repair and maintenance expenditures related to restoration of permanent installations at the mine complex development phase (including care and maintenance at temporarily closed mines). Exclude mine site reclamation of mines permanently shut down. |
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| 16.1 |
Socio-economic and impact benefit agreements:
land access agreements, permits, damages as well as all costs related to establishing Impact benefit agreements, socio-economic agreements, and other requirements for mine complex development and mine production, and the costs of rights of way, damages and permits for exploration and deposit appraisal work, including all associated legal fees, but excluding all environment-related costs. |
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| 14.17 |
OTHER FIELD WORK COSTS: expenditures related to
surveying and general or overhead costs that could NOT be attributed or prorated
to a specific work activity.These expenditures may include such items as office
rental, warehouse and storage, radio and telecommunications, and energy costs unrelated
to mine production. At the exploration and deposit appraisal phases, these costs
may include the temporary construction of camps, access roads and airstrips, other
transportation-related facilities as well as the care and maintenance of projects
on hold, awaiting permits or financing.
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| 14.19 |
HEAD OFFICE COSTS RELATED TO PROJECTS:
the portion of costs incurred at a head office that is applicable to work on specific
mineral development projects.These expenditures may include costs related to exploration,
deposit appraisal, and mine complex development, such as administration, management,
head office overhead, and legal and any other project-related head office activities
that are not already reported in other expenditure categories. No costs related
to salaries, fringe benefits and expenditures related to activities carried out
in the field should be charged here (see 14.0). For a producing mine, avoid duplication
with head office costs reported in the Annual Census of Mines.
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| 18.1 |
Capital Assets
Capital assets for construction, machinery and equipment include expenditures by the company for work performed by contractors or by the company from its own account, such as salaries and wages, materials and supplies, and other charges such as engineering, consulting and project management fees. Capital expenditures, referring to new assets, new and used assets imported, as well as the costs for renovation, retrofit, refurbishing, overhauling and rehabilitation, are reported on lines 18.1.1 (non-residential construction excluding lands) and 18.1.2 (machinery and equipment); and the purchase of used assets in Canada, on lines 18.1.1.1 (non-residential construction) and 18.1.2.1 (machinery and equipment). New residential construction is reported on line 18.1.3. All capital expenditures related to environmental protection and restoration are included under this category. |
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| 18.1.1 |
NON-RESIDENTIAL CONSTRUCTION (EXCLUDING LAND):
total capital expenditures incurred during the year for industrial and commercial
construction, marine construction, permanent roads and other transportation-related
construction, waterworks, sewage systems, electric power, mining construction (such
as shaft structures), other construction or structures (not specified elsewhere),
and environment-related construction. All mine development construction investments
(structures only) related to “rock work” (14.23) are reported here.
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| 18.1.2 |
MACHINERY
AND EQUIPMENT: total capital expenditures incurred during the year on all new machinery
and tooling, whether for own use or for lease or rent to others. The following subheadings
are provided: general machinery and equipment, transportation equipment, computer-assisted
process machinery and equipment, conventional process machinery and equipment (non-computer-assisted),
other machinery and equipment, and environment-related machinery and equipment costs.
Also includes mine development construction investments related to “rock work” (14.23)
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| 18.1.3 |
NEW RESIDENTIAL CONSTRUCTION (excluding land) – Declare the value of residential
buildings, including expenditures for the residential portions of town plots and
multi-use complexes. Please take into account the following exceptions:
(1) residences without bathrooms or kitchens; (2) the non-residential portions of town plots and multi-use complexes; and (3) service expenditures. Expenditures related to these exceptions must be included with the appropriate capital assets (i.e., for non-residential construction). |
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| 18.1.4 |
PURCHASE OF LANDS AND OPTION PAYMENTS – Capital expenditures
for land should include all costs associated with the purchase of land parcels or
mineral rights that are not amortized or depreciated, and property option payments.
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| 18.2 |
Repair and Maintenance
Non-capitalized REPAIR AND MAINTENANCE expenditures consist of the gross non-capitalized repair expenditures on non-residential buildings, other structures and machinery, the costs of maintaining the restored mine site (care and maintenance), and the routine care of assets, including environmental monitoring of the restored mine site. Exclude costs incurred at permanently closed mines. |
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| 18.3.1 |
Share of line 18.3 of environmental protection and restoration Capital
and repair and maintenance costs (construction, machinery and equipment) related
to environment protection and restoration should be reported as a share of the total
capital and repair and maintenance costs. This applies to all work phases of the
mineral resource development cycle.
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GUIDELINES SURVEY OF MINERAL EXPLORATION, DEPOSIT APPRAISAL AND MINE COMPLEX DEVELOPMENT EXPENDITURES |
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| 12.0 |
MINERAL RESOURCE DEVELOPMENT
WORK PHASES |
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| 1. |
Exploration Work Phase
Ideally, the exploration phase ends when a newly discovered mineral deposit has first been delimited on a moderately wide drilling grid and a mineral inventory has been carried out to establish its potential economic interest for eventual development. Estimation of a mineral resource shall be justified by the dimensions, metals and minerals contents and other pertinent characteristics of the deposit. The economic potential that justifies the estimation of a mineral resource should be formally presented in a preliminary technical and economic study. |
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| 2. |
Deposit Appraisal Work Phase
This phase includes all activities directed essentially at converting mineral resources by definition drilling into measured reserves that can be extracted legally and at a profit. The deposit appraisal phase effectively starts when the operator has the required funds and engages in the detailed geological and technical appraisal stages that initiates deposit appraisal. Clearly, an exploration program does not jump to the deposit appraisal stage as soon as a mineral discovery occurs. The following two examples describe extreme situations. LIMITS BETWEEN EXPLORATION AND DEPOSIT APPRAISAL A discovery estimated, after a first round of delineation drilling, at 50 000 tonnes grading 2 grams per tonne gold, or 100 000 tonnes at 1.0% copper, may constitute a significant mineral occurrence but does not normally constitute a mineral deposit of ”potential economic interest” (unless it is situated near surface, close to an operating mine). In most cases, additional work done after the discovery of a small mineralized zone does not yet qualify as deposit appraisal and should still be reported as exploration. At the other end of the scale, a discovery based on a few drill intersections of 60 to 100 metres in length, grading 3% nickel and 2% copper, does not yet constitute a delineated deposit, despite the apparently enormous economic potential. Accordingly, further drilling as part of the exploration phase is required to delimit this mineral discovery and to carry out a first semi-quantitative estimate of its size and mineral content, and a project review is required to plan further, more detailed work and obtain the required budgets. CONCURRENT DEPOSIT APPRAISAL AND EXPLORATION ACTIVITY It is customary to continue to search for extensions to, or enlargements of, the deposit on which deposit appraisal has started. As a result, the drilling footage reported as deposit appraisal may include, in addition to the definition drilling, some drilling to extend the size of the known deposit(s). However, surveys and drilling carried out for the discovery or first delineation of new deposits on the same property should continue to be considered as exploration expenditures. |
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| 3. |
Mine Complex Development Work Phase
This phase includes the mine development, construction, and machinery and equipment groups of expenditures. Mine development consists of two distinct groups of activities. The first group relates to short to mid term objectives: delimiting, detailing and gaining access to the ore and preparing it for production. The second group targets mid to long term objectives, i.e., extending the reserves of the mine in production or committed to production in the immediate vicinity of the deposit(s), within the limits defined below. LIMITS BETWEEN MINE DEVELOPMENT AND MINE SITE EXPLORATION The following geometric criteria are proposed to delimit the area where mine site exploration activity starts: a) For a typical stratiform base metal deposit, mine site exploration begins 75 metres from the boundary of the known deposit across the structure and 150 metres from each end or at depth along the plane of continuity of the structure. b) For gold mines based on planar vein structures, mine site exploration begins 50 metres across the structure from the boundary of the known deposit and 100 metres along the plane of continuity from the boundary. c) For horizontal or sub-horizontal sedimentary deposits, such as coal or potash deposits, larger distances, of up to 500 metres from the boundary of the delineated deposits, should be used along the plane of the geological structure. Exploration would begin at 100 metres or more, perpendicularly, of the reserves/ deposits. From this perspective, drill programs, geophysical surveys and other rock work carried out between the boundary of the ore reserves and the area where mine site exploration activity starts will qualify as mine complex development activity to extend the ore reserves. DISTINCTION BETWEEN MINE DEVELOPMENT AND MINE SITE DEPOSIT APPRAISAL Whenever mine site exploration activity is successful and a deposit is discovered and first delimited on a moderately wide drilling grid. A deposit appraisal program will be required up to the time at which the feasibility of mining this new zone is confirmed (tons grades and limits) and a commitment to production can be made. Some of the expenditures that are tabulated as deposit appraisal under the present definitions were previously included in mine complex development. |
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| 13.0 |
SITE OF A PRODUCING MINE CRITERIA TO DEFINE THE LIMITS OF A MINE SITE
A mine site is the area that can be accessed and exploited from the current or committed installations. Based on criterion 4) of the mine site definition on page 1, its area and limits are those of the environmental permits obtained. The limits and area(s) of the mining site will always be established based on the environmental permits obtained, as these permits are meant to meet the operation’s needs and the requirements to protect and restore the environment. In practice, the area and limits are established based on the operational requirements established in the feasibility study. These requirements will vary depending on the type, surface extent, position (horizontal, inclined, vertical) of the deposit(s), and on the mining methods used. Variations in these deposit/mining parameters contribute to the difficulties of deciding the actual extent of the mine site. Some plants and infrastructure that are essential parts of the mine complex may be located off the mine site, such as roads, docks, airports or processing and pelletizing plants (Section 12.0 (3) page 1 of the guide). Needless to say, this infrastructure should also dispose of the required permits. The area of the mine site is distinct from the area of the mining concessions or mining leases. These vary between jurisdictions, from a mining lease restricted to the deposit(s) that is the object of a production feasibility study with positive recommendations, to much more extensive mining leases that may include a considerable portion of poorly explored areas. EXAMPLES OF SPECIFIC SITUATIONS The following paragraphs establish criteria specific to each situation in order to divide expenditures between “off-mine-site” and “on-mine-site” activities. a) For multiple deposits or mining sites For example, BHP’s new Ekati diamond mine is currently based on seven kimberlite pipes, but may eventually include other diamond pipes. By definition, a mine site is based on deposits in production or committed to production (page 1). Thus, only the seven pipes involved in the production feasibility study and covered by the required permits should be considered as part of the mine site at the beginning of production. Each of the other pipes will only become an “adjoining” mine site once the appraisal process has been completed, the environmental permits have been obtained and a commitment to production has been made for that pipe (page 1). The same criteria will apply to multiple coal or potash deposits, or other metals located in the same geological formation, as well as to mineral leases that will constitute either a complex extended mine site or multiple independent mine sites. b) Environmental restoration after production ends Restoration and care and maintenance expenditures on the site of a temporarily closed mine are considered as being "on mine site" in the mine complex development phase. This is required in order to avoid allocating these, very often substantial, costs to the exploration and deposit appraisal phases. Such costs should be allocated in (18.1.1 and 18.1.2) if these represent capital or in (18.2.1 and 18.2.2) if they represent repair and maintenance expenditures. c) Exploration at an exhausted mine Exploration carried out by the operator of a mine after the reserves have been mined out but before the site has been closed should be classified as ON MINE SITE EXPLORATION. d) Exploration at the site of a closed mine Often a mine that was in production will close because of depressed commodity prices. If underground exploration and deposit appraisal are carried out from the underground workings to delineate additional mineralized zones before a decision is made to resume production, these expenditures should be classified as OFF MINE SITE EXPLORATION/ OFF MINE SITE DEPOSIT APPRAISAL. e) Exploration on a property adjoining a mine Exploration (or deposit appraisal) work by Company A, the owner of Mine A, is carried out under an option agreement on the property of unrelated Company B, immediately adjacent to the workings of Mine A. Whether Company B or Company A carried out and reported on this work, it should be classified as OFF MINE SITE EXPLORATION. |
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| 14.5-14.8 14.9 14.14 14.23 |
SPECIAL CATEGORIES OF EXPENDITURES Large to Very Large (Bulk) Sample “Large to very large (bulk) sample” is a generic term involving several types and sizes of samples (ranging from hundreds to several tens of thousands of tonnes) and straddles several field work categories. These activities may have one or several legitimate objectives: 1) to process mineralized material in a sampling plant to confirm the content of the substance of interest detected and estimated by drilling and other sampling (14.5-14.8, 14.9 & 14.23); 2) to devise appropriate mineral processing/metal extraction technology through pilot and full scale testing, and to determine actual concentrator/extraction plant recovery and loss percentages, as well as total metal content (14.14); 3) to establish and evaluate the geotechnical parameters for the design of the mine and the fields, and plan test mining (14.14). Large to very large (bulk) samples are normally part of the deposit appraisal phase and are rarely justified at the exploration phase. This may happen mainly for deposits whose mineral distribution is very nuggetty, such as diamond deposits or some gold deposits with very coarse and scattered gold particles, or in deposits of other types with concentration/extraction problems, to establish their potential economic value. Obtaining a large to very large (bulk) sample may involve stripping and trenching on surface, drifting, crosscutting, slashing or stoping work (14.9 & 14.23) or large-diameter drilling (14.5 to 14.8). Sampling costs should therefore be allocated to these specific activities. The handling and transportation costs involved to bring the sample material to the sampling or processing sites should be charged to 14.5 to 14.8 (drlling), 14.9 & 14.23. Sampling plant, mining and/or processing test work should be charged to 14.14 (Engineering). Marketing-related expenditures, such as providing samples to prospective clients for tests or pilot work, should be charged to 14.24 (Economic studies). For statistical purposes, expenditures for bulk sampling and engineering tests should be reported, not taking into account any income received from the sale of the metal(s) or concentrates produced. ENGINEERING TESTS – EXAMPLE (line 14.14) A Saskatchewan uranium deposit occurs in a porous sandstone rock. The expenditures related to the following tests, which are required to determine the technical feasibility of mining this deposit, should be recorded in the engineering category. 1) Well pumping tests were done to determine whether the water table could be drawn down sufficiently to permit mining of the deposit and to determine pumping costs. 2) A subsequent test-mining program was designed and carried out to determine: i. the problem that ground water constitutes and ways to solve it; |
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| 14.24 |
Scoping, pre-feasibility or final feasibility studies (incl.
economic studies)
The exploration phase ends with the first quantitative deposit inventory that is accompanied by a preliminary technical and economic study (scoping study), that evaluates the potential economic interest of the deposit. Deposit appraisal starts when the funds required to do so are available and the operator decides to undertake a deposit appraisal program. Several prefeasibility studies are carried out during deposit appraisal for review and planning purposes. A production feasibility study (full-scale and detailed) is required to establish the technical feasibility and economic profitability of a mining project and to conclude this phase. This due diligence review is the first of the five essential criteria needed to establish that the project has entered the mine complex development phase. |
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| 14.17 |
Other field
work costs (accommodation, meals, transportation, only if unable to report with
the above activities, and temporary construction e.g. access roads)
The current set of definitions aims to collect complete and representative expenditures for the various field surveys and work categories carried out. Unless exception (unable to prorate costs), NO expenditures that could be attributed to field surveys (geology and geochemistry surveys, ground and airborne geophysics, drilling, stripping/trenching, underground rock work, engineering studies and scoping, pre-feasibility or final feasibility studies) to mineral leases, claims, staking, line cutting (14.18), to the environment (15.5), to socio-economic and impact and benefits agreements (incl. right of way & damage costs) (16.1), to capital expenditures (18.1), or to repair and maintenance (18.2) should be attributed here. The costs of maintaining projects on hold can be reported on this line. |
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| 18.1 |
Capital Assets
Imported used assets should be reported with new assets because they constitute new acquisitions for the Canadian economy. The costs of refurbishing and upgrading construction as well as machinery and equipment must be reported with new assets on lines 18.1.1 or 18.1.2, as they are required, depending on the situation, to maintain or increase productivity. Used assets purchased in Canada are reported separately because, for National Accounts, they do not constitute new additions to the national asset inventory. |
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| 18.2 |
Repair and Maintenance
Repair and maintenance expenditures are current accounts, not capital assets. They are included in this survey to bring out their contribution to maintain productivity of the capital assets invested in mineral development and mining activity. |
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