New mineral incentive program approved by Ontario legislature

“We’ve had two questions since this program was announced,” said John Gammon, director of the program for the Ministry of Northern Development and Mines. “They ask what will they do about the expenses they’ve incurred this summer and whether this program is just a one-year flash in the pan.

“No, it’s not a flash in the pan. It’s an ongoing program for as long as it’s seen to be useful * * * and anyone who receives grants can `grandfather’ expenses back to July 13.”

A total of $8 million is earmarked for the program’s two parts: the Ontario Prospectors Assistance Program (OPAP) and the Ontario Mineral Incentive Program (OMIP). They are designed to replace the old OMEP grants which were cancelled last year to avoid duplication with the federal government’s CEIP grants.

OPAP will make modest grubstakes of up to $10,000 available for individual prospectors with 50% payable before the work is started and the balance payable after it’s finished.

OMIP will give grants to junior companies of up to $150,000 or 30% of eligible exploration expenses, whichever is lower. The grants are only available to companies that do not raise money through flow- through financing.

Eligible expenses include linecutting, geophysical and geochemical surveys, stripping, trenching, overburden drilling, some overhead costs and up to 50% of diamond drilling costs.

Gammon explained that the program is designed to expand the province’s mineral potential rather than delineate specific orebodies. For this reason, the emphasis is on mineral surveys and diamond drilling expenses are limited.

“The intention is to get people out in the bush and looking at the ground,” he said.

Gammon hopes that the program will encourage base metal exploration.

“During the peak flow-through years almost all the emphasis was on gold. We want to improve the base metal picture * * * and these are usually found by surveys not diamond drilling.”

Since the act was passed by the Legislature, the specific regulations have been awaiting government approval. Gammon guesses that will take about four weeks.

When the program is in place, applications will be mailed to those on the branch’s mailing list or can be picked up at the offices of provincial mine recorders and regional geologists.

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