Search

In the early 1970s a significant Pb-Zn mineralised body had been defined and a feasibility study was initiated which supported the development of the Nanisivik, Baffin Island, mine. The mine was constructed and operated for 26 years. Many elements of the feasibility study were difficult to estimate because of the unique high-Arctic setting and, as a result, a large number of differences were found when comparing the actual mining data with the feasibility study. Most of the differences were the result of an actual mine life of 26 years instead of the planned 12.5 years. Most mining costs were higher than estimated and production occurred at a much higher extraction rate than planned. Metal prices were, on average, below the feasibility estimates. For the most part these differences balanced out, with actual mining being only slightly more profitable than anticipated in the feasibility study., In the early 1970s a significant Pb-Zn mineralised body had been defined and a feasibility study was initiated which supported the development of the Nanisivik, Baffin Island, mine. The mine was constructed and operated for 26 years. Many elements of the feasibility study were difficult to estimate because of the unique high-Arctic setting and, as a result, a large number of differences were found when comparing the actual mining data with the feasibility study. Most of the differences were the result of an actual mine life of 26 years instead of the planned 12.5 years. Most mining costs were higher than estimated and production occurred at a much higher extraction rate than planned. Metal prices were, on average, below the feasibility estimates. For the most part these differences balanced out, with actual mining being only slightly more profitable than anticipated in the feasibility study.

The type of resource appraisal method that is appropriate in any given situation hinges on the view of mineral endowment as an exhaustible stock or renewable flow. For the broad-scale, long-term, economic appraisal of mineral resources at CRS, it is the renewable-flow concept which is more appropriate. A blend of historical data and current outlook conditions is used to provide a set of economic criteria that reflect the long-term potential for discovery, development and production of as yet unknown mineral resources., The type of resource appraisal method that is appropriate in any given situation hinges on the view of mineral endowment as an exhaustible stock or renewable flow. For the broad-scale, long-term, economic appraisal of mineral resources at CRS, it is the renewable-flow concept which is more appropriate. A blend of historical data and current outlook conditions is used to provide a set of economic criteria that reflect the long-term potential for discovery, development and production of as yet unknown mineral resources.

Study results show that Ontario has a strong competitive position in the shield region and in Canada. A marked deterioration is found in the potential value of base metal exploration in Ontario and throughout Canada during the past 20 years, culminating in uneconomic results for 1976-85, the most recent decade analysed. The economic potential of gold exploration, on the other hand, appears to be improving with time. Ontario's taxation policies are shown to have a substantial negative impact on investment incentive. However the three-year tax exempt period for Ontario mining tax, introduced in 1987, is shown to have a significant positive effect on the after-tax incentive for exploration and development. The potential values assessed in the study provide a portrait of the mineral supply process that can be applied when looking ahead to describe the distinctive economic characteristics of mineral exploration and mine development in Ontario for government policy analysis. More generally, the study illustrates the type of data base, evaluation procedure, and economic assessments that can be developed and used on an on-going basis., Study results show that Ontario has a strong competitive position in the shield region and in Canada. A marked deterioration is found in the potential value of base metal exploration in Ontario and throughout Canada during the past 20 years, culminating in uneconomic results for 1976-85, the most recent decade analysed. The economic potential of gold exploration, on the other hand, appears to be improving with time. Ontario's taxation policies are shown to have a substantial negative impact on investment incentive. However the three-year tax exempt period for Ontario mining tax, introduced in 1987, is shown to have a significant positive effect on the after-tax incentive for exploration and development. The potential values assessed in the study provide a portrait of the mineral supply process that can be applied when looking ahead to describe the distinctive economic characteristics of mineral exploration and mine development in Ontario for government policy analysis. More generally, the study illustrates the type of data base, evaluation procedure, and economic assessments that can be developed and used on an on-going basis.

The positive expected values assessed for the base metal and gold potential in Newfoundland are found to be significantly lower than those which more broadly characterise the Appalachian region and Canada. The potential value of base metal exploration in the region is shown to have made an encouraging comeback in the most recent decade analysed (1976-85). Newfoundland's taxation policies are shown to have a substantial negative impact on investment incentive. The effects of Newfoundland's taxation system tend to be on the onerous side of the spectrum of Canadian inter-provincial assessments presented. The comparative impact of five types of regional development policy: geologic data base development, direct exploration assistance, support for new mine development, mine production incentives, and end-of-mine assistance are illustrated. While the assessments are of an exploratory nature, they suggest that geologic data base development would have the greatest impact on enhancing economic performance. The potential values assessed in the study provide a portrait of the mineral supply process that can be applied when looking ahead to describe the distinctive economic characteristics of mineral exploration and mine development in Newfoundland for government policy analysis. More generally, the study illustrates the type of data base, evaluation procedure, and economic assessments that can be built up and used on an on-going basis., The positive expected values assessed for the base metal and gold potential in Newfoundland are found to be significantly lower than those which more broadly characterise the Appalachian region and Canada. The potential value of base metal exploration in the region is shown to have made an encouraging comeback in the most recent decade analysed (1976-85). Newfoundland's taxation policies are shown to have a substantial negative impact on investment incentive. The effects of Newfoundland's taxation system tend to be on the onerous side of the spectrum of Canadian inter-provincial assessments presented. The comparative impact of five types of regional development policy: geologic data base development, direct exploration assistance, support for new mine development, mine production incentives, and end-of-mine assistance are illustrated. While the assessments are of an exploratory nature, they suggest that geologic data base development would have the greatest impact on enhancing economic performance. The potential values assessed in the study provide a portrait of the mineral supply process that can be applied when looking ahead to describe the distinctive economic characteristics of mineral exploration and mine development in Newfoundland for government policy analysis. More generally, the study illustrates the type of data base, evaluation procedure, and economic assessments that can be built up and used on an on-going basis.

The study examines economic trends in Canadian gold supply, focussing on the 40-year period 1946-85. The following facets of supply are analysed: the price of gold; Emergency Gold Mining Assistance; employment; mine operating costs; the changing mix of production from old mines, new mine developments and new discoveries; investment for sustaining existing capacity, new productive capacity and exploration for gold deposits; and cash flow analysis of gold mining revenues and costs., The study examines economic trends in Canadian gold supply, focussing on the 40-year period 1946-85. The following facets of supply are analysed: the price of gold; Emergency Gold Mining Assistance; employment; mine operating costs; the changing mix of production from old mines, new mine developments and new discoveries; investment for sustaining existing capacity, new productive capacity and exploration for gold deposits; and cash flow analysis of gold mining revenues and costs.