Background
2014-0534121R3 confirmed that an abandoned mine within the Corporation’s Concession had lost its characteristics as a mine in a mineral resource for the purpose of subpara. (f)(vi) of the CEE definition. The Corporation then issued flow-through shares, to finance preliminary work (which perhaps consisted mostly of analyzing data from drill holes that were previously drilled by previous owners of the mine and from drill core assays left by them, in order to develop an indicated and inferred resource). In order to produce from its Concession in the future, the Corporation needs to develop a new mine by constructing its own workings.
Proposed exploration program
In order to conduct an underground exploration program, the Corporation will lease space in an abandoned mine within the Concession, set up temporary equipment and facilities there and conduct a drilling program, which will be financed with the proceeds of flow-through shares.. No pre-feasibility study has been conducted yet on the deposit being explored.
Ruling
Re the specified expenses of the exploration program qualifying under para. (f).