CRA categorized different types of pre-mining expenditures, including the following:
- preliminary planning for potential exploration,
- mining engineering assistance in establishing unit cost of mining and processing
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current s. 9 expense
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- environmental studies and community consultation,
- area selection and review of existing data,
- geophysical and geochemical surveys and geological mapping and modelling,
- sampling generally only up to decision to bring mine into production but also where done to define mineral resource (but not for technical feasibility purposes),
- trenching, digging test pits, drilling to obtain samples,
- infill drilling,
- bulk sampling (reasonable sizes - but not if to evaluate optimal processing method),
- mineralogical analysis, laboratory testing of drilling cores,
- resource estimation,
- testing of host rock stability, testing of ore dilution and breakability,
- metallurgical testing if for determining whether separation of pay metals is feasible (but not for determining the optimal method of separation)
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Canadian exploration expense (“CEE”), para. (f)
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- feasibility and pre-feasibility studies,
- scoping study
- deposit delineation, deposit modelling and estimation of cut-off grade
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CEE para. (f) and current s. 9 expense
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mining claims and exploration permits
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Canadian development expense (“CDE”), para. (e)
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mine design and development studies
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deductible under s. 9 if incurred before decision made to bring mine into production /otherwise may be “CDE, para. (c.2), Class 41 or 41.2 property or (if project does not proceed) Class 14.1 property
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- evaluation of different technically feasible options for processing,
- process engineering studies, financial estimates of mine capital and operating costs,
- (similarly reevaluation of transportation from mine to processing plant)
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deductible under s. 9 if incurred before decision made to bring mine into production (determination of economic viability)/otherwise Class 41 or 41.2 property or (if project does not proceed) Class 14.1 property
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