1988 — a year for important Quebec developments

General activity in the exploration industry in 1988 was much lower than in 1987, when a record amount of exploration expenditures, estimated to be close to $500 million, were invested. According to data complied as of the end of December, sums collected through flow-through shares for the 1988 fiscal year amounted to about 65% less than at the same date in 1987.

Gold remains the mineral most explored for in Quebec, and the Abitibi-Temiscamingue area (the northwest part of the province) continues to be preferred by exploration companies. A renewed interest for industrial minerals was noted; many exploration programs were directed particularly to graphite, kyanite, dolomite and silica.

Casa Berardi Twp., still attracts attention with the recent discovery of significant gold mineralization on the Golden Pond West property of Inco Ltd. (TSE) and Golden Knight Resources (TSE). Chibougamau district

In Chibougamau district, exploration remains focused on copper and gold: Copper Rand of Westminer (Canada), Joe Mann East of Campbell Resources (TSE), Lake Laura of Messeguay Mines (ME) and Minnova Inc. (TSE) and the projects of Flanagan McAdam Resources (TSE).

Besides the exploration projects listed in the accompanying table, others are worth mentioning, particularly because of the relatively little-explored regions where they were undertaken.

In the Labrador Trough, La Fosse Platinum (TSE) has carried out an important exploration program which has detected, among other minerals, massive sulphide areas (copper-nickel-platinum group metals).

Falconbridge Ltd. (TSE) has been one of the rare companies active in the Ungava area, with drilling activities in the Delta 8 and 9 areas, as well as an aerial survey of the New Quebec Raglan property. Furthermore, Soquem (the provincially- controlled mining company) has actively prospected for rare earths on the Lower North Shore. In the mining district of the Eastern Twps. and the Laurentians, Coleraine Minerals (ME) has confirmed through test drillings the presence of chromium, nickel and platinum group elements in old deposits in Coleraine Twp., near Thetford Mines.

In the Sutton area, Soquem has undertaken to study the titaniferous potential of marine paleoplacers enriched with hematite, rutile and zircon. North of Dolbeau, a company has discovered an important area of sulphides, both massive and disseminated with copper, nickel and platinum group elements within the Lac St. Jean anorthositic massif. New Mining Act The new Quebec Mining Act and the regulations covering minerals other than petroleum, natural gas and brine took effect Oct 24, 1988. This act should allow simplified administrative procedures and facilitate resource management.

New provisions of the act include a renewable prospecting permit, 2-year claims which can be registered to companies, the possibility of transforming unmined mining concessions and leases into claims, the granting of mining rights distinct from claims and mineral leases for prospecting and mining surface minerals.

A “credit on duties refundable for losses,” introduced in 1985 in the Mining Duties Act, will allow several mining concerns to receive from the energy and resources ministry an estimated $15 million for fiscal year 1988-89.

This refundable credit on duties allows an exploration or mining company to obtain, under certain conditions, a maximum refund of 18% of its exploration and development expenses and depreciation on goods and properties acquired since April 23, 1985. Eastern Quebec region

The financial assistance program for mineral processing in the Bas- St-Laurent-Gaspesie has a budget in excess of $1.3 million for 1988-89. This program resulted from co-operation between the governments of Canada and Quebec within the Eastern Quebec Development Plan. In 1988, close to 100 prospectors were able to benefit from this program.

Thanks to the Canada-Quebec Subsidiary Agreement on mineral development, about $22 million should be spent in equal proportions by the Canadian and Quebec governments for the current fiscal year. Nine programs are covered by this agreement, some of which aim at facilitating exploration in the province of Quebec.

The first program covers geoscientific activities carried out by the energy and resources ministry and will represent expenditures of $7.6 million during 1988-89. The Mineral Infrastructure Development Program will represent a contribution of $7.8 million, which will go towards the establishment of new production and processing facilities.

For 1988-89, Audrey Resources (TSE), Louvem Inc. (TSE), Polycor Mining, Inco (Golden Pond East) and Dumagami Mines (TSE) were the beneficiaries of this program.

The Minerals Exploration Assistance Program will provide payments totalling $1.8 million to companies conducting mining exploration in economically-depressed areas (Eastern Twps., Murdochville and Chapais). Geoscientific data

The production and distribution of data related to the mineral sector will represent expenses close to $2.2 million, including for the development of GIS technology systems for producing, processing and disseminating different types of spatial reference geoscientific data. A pilot project has been completed which permits implementation of such a system for an area located immediately north of Noranda. This $2.2 million program also includes the development of a new mining rights management system which became opera tional when the new Mining Act came into force.

In December, 1987, an additional allowance of 33.3% was introduced for exploration expenditures made in Quebec between June 30, 1988, and Jan 1, 1990, by an eligible exploration company and which are renounced to individuals. On June 30, 1988, the Quebec government decided to extend this allowance to expenses eligible under the Canada Exploration Incentive Program.

The other fiscal measures relating to mineral exploration which have been announced by the federal government have been harmonized with those of the province of Quebec.

At the end of December, the Quebec government announced a supplementary 33.3% deduction which may be claimed by individuals for surface mining exploration expenditures incurred in Quebec during the 1989 taxation year, and the recognition of the “Institut de recherche en exploration minerale” as an eligible entity for the 40% R & D refundable tax credit.004 Odile Legare works for the Quebec Ministry of Energy and Resources. This article is an updated version of a report appearing in “1988 Exploration and Development Highlights,” a publication of the Prospectors and Developers Association of Canada.

New mines in 1988 Malartic Hygrade Orion gold Cambior Eldrich-Flavel gold Dumagami Dumagami gold Aur First Canadian gold Inco/Golden Knight Golden Pond East gold LAC/Rouyn Mining Francoeur gold Aurizon Sleeping Giant gold Noranda Isle Dieu zinc Selbaie/Esso/TCPL A-2 poly-metallic Developing mines LAC Bousquet #2 gold Inco/Golden Knight Golden Pond West gold J.M. Asbestos C asbestos Stratmin Stratmin graphite Robex Upton barite Carbec Carbec carbonates Noranda/Cambior/Nova-Cogesco Silidor gold Augmitto Beauchastel gold Minnova Ansil poly-metallic Audrey/Minnova Mobrun poly-metallic Cambior Pascalis gold Camchib (Campbell) Cedar Bay expansion copper, gold Louvem Chimo expansion gold

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