Exploration is the key to sustainability in the mining industry - it is oftenreferred to as the "R & D" (Research & Development) of the industry.
To be a sustainable industry, mining companies need to identify new resources to replace the ore that is mined out.
Because mineral components are found in almost all consumer goods, mining will continue to be a dominant industrial sector in our global economy.
Growth in the economies of many developing countries is causing an increasing demand for many metals and minerals.
Exploration is the search for new sources of one grade material - most of which are now buried deep beneath the surface of the earth.
Exploration has evolved a long way from the days when the prospector and his trusty mule headed off looking for surface showings of economic mineralization.
Exploration has evolved into a highly sophisticated, multi disciplinary science using principles of physics, chemistry, and even biology to probe deep beneath the earth's surface.
Exploration is the high risk end of the industry as it involves investing large sums of capital for which there is no guaranteed return.
Exploration requires patience and persistence as fewer than 2% of mineral showings or initial discoveries will actually evolve into mines.
The length of time to bring an exploration discovery into production is constantly increasing and currently averages 10 to 15 years.
In Saskatchewan most of the mineral rights are owned by the province and companies or individuals obtain the rights to explore by staking a claim or acquiring a permit or a lease.
The first stages of exploration typically involve making observations about the rocks or soils on the land surface (geological mapping), and taking samples for various types of chemical analysis. Computer-processed images of the land surface taken from satellites are also widely used to evaluate structures that may provide clues to potential areas of mineralization.
Later stages may consist of measuring the physical, magnetic, or electrical properties of the rocks using high-tech instruments located on the ground or in an aircraft flying over the land surface. Again, extensive computer processing and careful scientific interpretation is needed to find out what lies beneath the surface.
These early stages of exploration generally have little or no impact on the land.
If enough evidence is found to indicate that an ore deposit might be present, drilling equipment is often used to obtain rock samples from below the surface. In circumstances where the minerals are not buried deeply, shallow pits or trenches may be excavated, again, to obtain additional samples.
Protection of the environment starts right at the beginning of the exploration cycle and as the exploration work becomes more involved the proponents are required to make environmental impact submissions.
Right from the first phase of exploration proponents require a variety of permits before undertaking any activity.
The most significant disturbances caused by exploration are access roads; these are either retained for future use by local residents, or reclaimed and allowed to grow over naturally.
Saskatchewan is about the middle of the pack in terms of exploration expenditures in Canada and this is partly due to a perception, still, by some of the major companies that Saskatchewan is not a mining jurisdiction.
Recognizing the role exploration plays in the evolution of the industry, in the Fall of 2002, the Saskatchewan government unveiled its Mineral Exploration Incentive Program.
In addition to the provincial flow-through mineral exploration tax credit announced last year, the Ministry of Industry and Resources has delivered a substantive exploration stimulus program that includes a Prospectors Incentive Program, a Corporation Exploration Incentive Program, an Enhanced Geoscience Program, a 10-year Royalty Holiday for new gold and base metal mines, a competitive diamond royalty/tax Structure and exploration fuel tax rebate.
These incentives have transformed Saskatchewan into one of the most favourable provinces/territories in which to explore from a regulatory perspective.
Twenty-six prospectors and corporations received $1.16 million in funding for projects in the first year of the six year program, this year it was oversubscribed.
This impact is reflected in exploration expenditures which are forecasted to increase over 40% to $41.4 million and given current activity levels could be as high as $50 million.
Uranium has now been surpassed by diamond exploration activity which now accounts for half of total expenditures.
The potash and coal sectors are not actively involved in exploration as they both have in excess of 100 years of identified reserves at current extraction levels.
Saskatchewan has significant untapped mineral resource potential, not only for the commodities that we are well known for - potash and uranium, but also for a variety of other minerals including diamonds, gold, platinum and palladium, rare earth elements, copper, zinc, nickel and mineralized brines.
The bulk of the mineral exploration activity currently takes place in north and central Saskatchewan. The diamond exploration is currently being focused on an area east and northeast Prince Albert. The gold exploration is primarily north- east of LaRonge and uranium exploration activity west and southwest of Wollaston Lake.
Mineral exploration provides employment, particularly for residents of northern Saskatchewan and northern residents are developing the skill sets to continue to service the exploration sector.
New discoveries act as a magnet to attract new exploration activity so we need to maintain a strong exploration sector in order to grow this important sector of our provincial economy.
;D
Now you can begin to appreciate what we have and why it may take some time to exploit it...
