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By I. S. Thompson

"Exploration properties form a continuum from grass roots to those with favourable geology, geochemical and/or geophysical anomalies, mineralization, showings (prospects), and finally to those with defined mineral deposits. Often, properties exhibit a composite of these categories.The most problematic to value are properties or deposits that are not economically exploitable at the time of the valuation due to a lack of exploration, insufficient grade or tonnage, poor mining conditions, or the imposition of socio-economic, environmental, or legal constraints.Various acceptable methods of valuing the range of all such mineral properties or deposits are reviewed. Some less appropriate methods are also discussed."

Jan 1, 2002

By Trevor R. Ellis

"The valuation of mineral properties in the U.S. is only partially regulated. The regulations which have jurisdiction or impact appear to have such mainly as a consequence of unintended fallout, since the regulations were designed for other purposes. Court case history can also be important. The combined results are a mixture of bad and good, with important lessons to be learned.Since 1981, the Securities and Exchange Commission has prohibited U.S. listed companies from reporting quantitative estimates of mineralization and the value of mineralization, other than proven and probable reserves. This results in the minerals appraiser (valuator) working with a shortage of data in his everyday work, both on the subject property and in sales analysis.Between 1989 and 1995, all 50 states and essentially all Federal agencies adopted the Uniform Standards of Professional Appraisal Practice (USPAP) for real property appraisals (valuations). The major national appraisal societies also require their members to abide by USPAP. A significant portion of minerals appraisals must now follow these standards. This paper will discuss the content of USPAP. It provides a very good framework for the valuation of a minerals property or a mine, both as real property and as a business. However, the credentialing standards for real property appraisers are now prohibitive for minerals appraisers."

Jan 1, 2003

By F. H. Edmunds

I N presenting this paper, the writer wishes to point out some of the difficulties and problems of geological work in that part of Saskatchewan in which outcrops are few. These problems are well known to all geologists who have made investigations in this region, but may not be so well known to those outside. A table of the strata as known in certain areas of Saskatchewan and the adjacent provinces is given, with a brief discussion of some of the formations and beds about which there is little knowledge due to their being deeply buried and not exposed in the region. Comment with regard to possible oil and gas structures is made and some features of the structures in the Battleford and Simpson districts are described. The writer wishes to make acknowledgment to members of the Geological Survey of Canada to whose work in Saskatchewan and the adjacent provinces reference is made, and to others who have made, or are making, valuable contributions to the stratigraphy of Saskatchewan. Mr. G. C. Webb has kindly furnished information regarding and materials taken from a well bored recently in the Paynton district. Special thanks are due to the Simpson Oil and Gas Company for permission to use much valuable information with regard to their wells and for the generous way in which the officials and staff co-operated with the writer. The opportunities the writer has had to visit many parts of the Province have been in connection with investigations for the Provincial Department of Natural Resources and through facilities provided by the Department of Soils of the University of Saskatchewan. To these Departments the writer accords his thanks. For the purposes of this discussion, Central Saskatchewan may be considered as that portion of the Province extending from Township 16, with Regina, Moose Jaw, and Swift Current situated on or near the southern boundary, to Township 48, with Prince Albert and Lloydminster on the northern boundary. This region includes territory underlain by Cretaceous sediments and excludes the southern portion of the Province, where Tertiary beds underlie the surface and are exposed to an extent sufficient to permit a measure of systematic mapping.

Jan 1, 1937

The Mineral Industry of Canada in 1951 Continuance of the remarkable, successive increases in the value -of Canada's mineral production, chief basis of the nation's post-war expansion, was one of the highlights of Canadian development in 1951, when, according to the preliminary estimate is-sued by the Dominion Bureau of Statistics and reported in the BULLETIN for February, 1952, mineral output for the year reached a new high of $1,228 millions. This marked an increase of 17.5 percent over the previous year, which was the first in which the billion dollar mark had been reached, and an increase of 143.7 per cent over 1946, when production was valued at approximately $503 millions. While higher prices for the principal base metals accounted for a large part of the 1951 increase, quantity gains were made by copper, nickel, zinc, asbestos. lead, cement, and strikingly important. by petroleum, the value of which exceeded for the first time that of coal production. Gold was an exception to the general trend, being lower in both quantity and value than in 1950. For the first time nickel .came within $9 millions of surpassing-gold as the leading mineral product. Metals and Fuels The value of all metals, estimated at $733 millions, was 18.7 per cent more than in the previous year. Nickel advanced 11 per cent in volume and 34 per cent in value. Copper was up 2.4 per cent in quantity and 21 per cent in value, zinc rose 6.6 per cent in quantity and 35 per cent in value, and although the volume of lead produced was lower by 8 per cent, its value increased by 17 per cent. The tonnage of iron ore was 31 per cent higher than in 1950.

Jan 1, 1952

By Ludwig M. Strah

"Wear is a universal problem and is present in all cases wherein one weighted surface moves with or relative to another surface. A practical description of wear as applied to mineral processing plants is outlined.With the advent of higher material and maintenance costs, more attention is being focused on the field of wear resistant linings. The aforementioned is magnified today as the production facilities continue to be designed to handle larger daily capacities. These changes, higher costs and larger plant handling facilities have necessitated the introduction of different materials and designs to combat the never ending battle against wear.In order that wear be understood, it can be relegated to two specific types:1 - Mechanical Wear - due to movement of one loaded surface relative to another.2 - Chemical Wear - more easily defined as corrosionMechanical wearMechanical wear can be subdivided into two basic forms:A.,Material movementB.,Material impactMaterial movement Abrasion is the result of, as earlier stated, the straight move¬ment of one loaded material relative to another.Material impact Is the striking effect when a mass strikes another from various angles and at various speeds. Impact can be severe enough to permanently damage and distort the basic component installed to overcome impact."

Jan 1, 1983

By Charles Camsell

At the last annual meeting of this Institute the programme very properly was drawn up and carried out with the special object of calling attention to the Dominion's position and problems with regard to fuel supplies. That subject, always one of serious concern, was a source of considerable anxiety twelve months ago. It is still so, but in a decidedly less degree than at that time. So far as the immediate fuel situation is concerned our anxieties have been relieved. And I think we can safely say that such a consciousness of our difficulties and determination to overcome them, has been developed in the minds of our people that there will be no slackening of the offensive until a final solution is reached. In selecting a subject of major importance for the present occasion I have felt free to digress from the pressing problems of last year and to go back, for a starting point, to the presidential address of two years ago .. I do not, however, wish to enter the controversy that has developed as a result of that address, though in spite of my own failure to amass a fortune from participation in certain mining ventures, I am decidedly inclined to the optimistic view that Dr. Corless presented of the future of our mining industry. You will perhaps have observed that in its general wording the title of my paper bears a marked resemblance to that of that address. This simila1ity of titles is not accidental. It is intentional on my part.

Jan 1, 1924

By Charles Camsell

At the Annual General Meeting of the Institute in 1924. I endeavoured to present the position held by the mineral industries in the commercial life of this country. The facts and figures were presented at that time in a detached way. Since then, however, I have made some attempt to analyze them in order to determine the causes for that position and to draw some conclusions as to the future of the mining industry. As everyone knows, our trade figures are very often used in political discussion, especially in discussion of tariff policy. It would be entirely out of order for me to say anything touching the tariff issue and I want to have it clearly understood that, in my opinion, the material I am about to present contains not a single statement or conclusion which anyone would be warranted in using as an argument for either a lower or a higher tariff or for tariff changes of any kind. As a starting point, let me re-state, very sketchily, Canada's general situation in external trade. In the last calendar year, 1924, we sold Canadian merchandise of all kinds to other countries to the value of $1,045,000,000 in round figures. Our purchases abroad reached about $893,000,000. Thus our sales exceeded our purchases by roughly $152,000,000. In other words, we had what is known as a 'favourable balance of trade' - one of the biggest favourable balances we have ever had in our history. The proceeds of our sales of Canadian products enabled us to meet the bills for all our purchases of foreign commodities and, in addition, placed a large surplus to our credit with which to offset our interest charges and other obligations abroad.

Jan 1, 1925

By M. Nagamori, A. J. Plumpton

"Commercial HCl-leaching of magnesite and serpentine yields highly concentrated aqueous solutions containing 25 mass % to 33 mass % MgCl2. The partial molar enthalpies and heat capacities, the ionic activities of Mg2+ and Cl–, and the Raoultian activity of H2O have been assessed for the concentrated MgCl2-H2O solutions at temperatures of 348 to 373 K. These thermodynamic data are used to calculate the pH of aqueous MgCl2 solutions saturated with a Mg-bearing mineral such as magnesite, serpentine, brucite, forsterite, enstatite or talc. On the basis of these thermodynamic data, technico-economic aspects are discussed as to neutralization with pulverized MgCO3, water evaporation from the MgCl2 solutions, and ore composition including such minor constituents as CaCO3, FeCO3 and Fe3O4. IntroductionA major magnesium electrolytic reduction plant operates in Quebec, where another will begin its production in the year 2000. One uses imported magnesite ore as raw material, while the other will utilize local asbestos tailings (serpentine). Both processes produce a concentrated salt solution of 25 mass % to 33 mass % MgCl2 by leaching the ore with concentrated hydrochloric acid. Thus, the two processes differ mainly in the HCl-leach and related operations. After the HCl-leach of the ore, the serpentine process yields about 25 times more wet cake to filter and wash than the magnesite counterpart. A comparative cost-engineering study with respect to slurry filtration and cake washing has been published elsewhere (Blackburn and Nagamori, 1994). By contrast, the present study considers the thermodynamics and technicoeconomics of the HCl-leach itself for both ores."

Jan 1, 1999

By Daniel Hodouin, Claude Bazin

"This paper examines the economic advantages of tuning the operation of a differential Cu-Zn flotation circuit as a function of metal prices. Three operating strategies are considered in the analysis: 1) the operation of the circuit at planned copper and zinc concentrates grade with maximum recovery of both metals; 2) the operation of the Cu circuit at maximum copper smelter return per ton of ore and of the Zn circuit at a maximum zinc smelter return per ton of ore; and 3) the operation of the circuit at maximum copper and zinc smelter return per ton of ore. The second strategy tunes the copper circuit independently from the zinc circuit, while the third strategy tunes both circuits simultaneously IntroductionMetal prices play a very important role in the mineral industry (Malhotra and Dowling, 1991). In many cases, metal prices can be the basis for the GO/NO GO decision of a mining project (Malhotra and Dowling, 1991; Apostolides, 1983; Davis, 1996). This direct impact of metal prices on company revenues is highlighted in many annual reports. The 1995 Noranda Annual Report indicates that a variation of 10% of the copper price impacts its yearly revenues by $25,000,000. Some mine operators claim to mine stopes as a function of metal prices (Liimatainen, 1996; Hartman, 1992). This impact of metal prices is also recognized by mill operators that seek strategies to tune ore processing circuits to maximize revenues from the concentrate they sell to smelters (McKee, 1991; Barker et al., 1989; Hales and Ynchausti, 1994; Cipriano et al., 1995). In many cases the problem of tuning the operation of an ore processing circuit is complicated by the fact that the ore contains two or more valuable metals which have to be recovered into separate products. The Agnico-Eagle (Robitaille and Cousin, 1995) and Barrick East Malartic (Pelletier, 1996) Cu-Au mines are examples, as well as the Cu-Pb-Zn Brunswick mine (Shannon et al., 1993) or the Cu-Zn Louvicourt (Whiteway, 1995) and Selbaie (Wright, 1995) mines."

Jan 1, 2000

By J. L. Bowlby

Introduction In the following discussion, boiler-feed and mine waters will be considered from the point of view of the problems arising from the chemical nature of the mineral and gaseous impurities they contain. The theories underlying some of these problems will be reviewed for the purpose of getting a clearer concept of the problems themselves. Certain terms of a chemical nature, necessary to the discussion, will be explained on the assumption that they are not generally familiar to mining engineers. Finally, an attempt will be made to correlate theory and practice, with the abject of establishing certain limits to factors relevant to the problems, and to show that these limits are justified by practical experience. The general problems occasioned by the presence of mineral and gaseous impurities in boiler-feed and mine waters are: (1) Scale formation and corrosion in boiler systems. (2) Corrosion of mine pumps and pump fittings. These will be discussed separately. Boiler Scale Typical analyses of waters available for use in steam power-plants are given in the accompanying Table (Table I). All analytical data are expressed in grains per Imperial gallon. The bicarbonates of calcium and magnesium in the raw waters are shown as normal carbonates in the Table. Substances in the first five rows constitute the encrusting solids. All the waters listed in Table I would be classified as 'very good' in the schedule of classification for boiler waters adopted by the American Association of Railway Chemists in 1887. In spite of this classification, however, the waters contain sufficient encrusting solids to cause serious scale trouble after prolonged evaporation.

Jan 1, 1934

By Hugh P. Godard, K. Winslow

"AbstractA number of panels of various aluminum alloys in different combinations and secured by steel and three types of aluminum rivets were exposed underground at two locations in a Northern Ontario gold mine for two years and then examined to determine the extent of corrosion. The results indicate Alcan 65S-T to possess considerable advantages over Alcan 178-T, which has been employed in the construction of light skips and cages with considerable success for almost twenty years. Information on the behaviour of these alloys when used with steel rivets and in mixed combinations with themselves was obtained.IntroductionBy the complete substitution of aluminum alloys for steel in the fabrication of mining skips and cages, their weight can be reduced as much as 50 per cent. Lesser savings are possible though its savings are possible through its plates, doors, reinforcing members, etc. Reduced weight leads to economy through increased hoisting efficiency.For a new installation, the basis of design is the rate of production, which thus fixes the live load to be hoisted per trip. A lighter skip permits the use of a lighter rope and a smaller hoist. In deep shafts with high-speed hoists operated in balance, the power required for accelerating is considerable. The hoist size is determined by the weight of skip, load, and rope plus the force required to accelerate or decelerate these three elements A light skip may result in a considerably lighter rope. This is important because, even though the skip can be completely balanced this is not true of the rope. Partial balancing is possible, but conical hoist drums or other devices for this purpose are costly; thus a smaller rope results in a smaller hoist, with consequent general reduction in cost of the whole installation. A reduction in power consumption is also obtained as a result of keeping to a minimum the amount of unbalanced load and the weight of all moving parts which must be accelerated."

Jan 1, 1950

By R. J. Johnston

"INTRODUCTIONPoint Mines is located about 65 miles east of Hay River on the South Shore of the Great Slave Lake. It is connected to the Northern Alberta Railway System by the Great Slave Lake Division of CN Railways at Roma Junction, Alberta.The operation started in the fall of 1965 with a capacity of 5000 t.p.d. An addition was put into operation late in 1968 to bring the capacity up to 8000 t.p.d. The present milling rate is 11,000 t.p.d.The location of Pine Point Mines is such that long end cold winters are to be expected end temperatures of lower than -200F are encountered from late October to late March, with extended periods of -300F being common in January and February.It was recognized by Cominco engineers during the initial design period that since freezing would be encountered with open pit ore somewhere in the crushing circuit, the problem was to reduce it as much as possible. Other mines, working under similar conditions, found that the fine ore bins feeding the grinding circuit were the main problem area. The decision was reached, therefore, to have heated fine ore bins and to make sure thst the ore was sufficiently warm to prevent freezing.CRUSHING PLANT FLOWSHEETThe crushing plant has a standard open flow circuit (flowsheet). Ore from the stockpile is loaded into R-50 Euclid trucks by Caterpillar 992 Front End Loader with 11 cu. yd. bucket and dumped into a 42 x 65 C.A.C. Superior Crusher driven by a 300 HP motor. The crusher is set at a nominal 5 inches. The ore falls through into a 100-ton surge bin. There are high level and low level nuclear gauges to allow the primary operator to optimize for optimum orientation."

Jan 1, 1972

By J. Paraszczak

For mining companies facing strong international competition and unfavourable commodities’ prices, automation of underground operations has the potential to increase productivity and help cut costs. However, despite considerable technological progress in this field, there still remain many problems to overcome. Furthermore, successful implementation of automation depends also on numerous operational, organizational, and even human factors. In this context, this paper briefly reviews technological progress with regard to different underground operations. Following that, several issues related to implementation of automated equipment and systems are presented and discussed. Particular emphasis is put on the factors whose importance is often underestimated. Some recommendations in this respect are also given. It is stated that the success of an automation project is a function of many “winning conditions,” which may be created through very thorough planning and preparation. It is also underlined that despite achievements made, a vision of a man-less underground mine is not yet as much a matter of near future as it may seem.

Jan 1, 2004

By M. A. Upham

"MINING is Canada's second largest basic industry, producing material with a gross value of 2.5 billion dollars, led only by agriculture with 2.9 billion dollars. It pro-vides employment, directly and in-directly, for three quarters of a million people. Since the Second War, the value of mineral production in Canada has tripled. Economists forecast that over the next 15 years its value will triple again. Canada is a basic and leading supplier of nickel, iron, copper, zinc, lead and uranium. It is also a major oil producer, leads the world in the production of asbestos and in five years will be the leading producer of potash, a basic constituent of fertilizer.It can be seen that Canada's wealth and economic progress lies in being a primary producer of economic minerals and in building secondary industries to manufacture finished products from these raw materials. Canada's future in the field of mineral production looks bright, with our resources just starting to be tapped. Outside of the large expanse of Soviet Russia, we are by far the world's most fertile mineral exploration area."

Jan 1, 1967

By Karl J. C. Harries

"4.1. INTRODUCTIONThis chapter, although divided into four parts, deals with only two principal topics. The first briefly describes and discusses some common types of property interests and considerations relating to them and the second deals with entering upon privately owned lands and obtaining the consent to do so.It should be noted that the terms “mining rights” and “mineral rights” are used interchangeably. As so used, they include the right to exploit the minerals and dispose of them for the benefit of the owner/lessee. This is relatively common in common law jurisdictions. In some jurisdictions, the two terms have distinct meanings, with “mining rights” referring to the right to work or exploit the minerals and “mineral rights” referring to the minerals themselves.Finally, it must be mentioned that the comments in the Introduction and §§ 4.2., 4.3. and 4.4. are based primarily upon Ontario law and Ontario’s mining and real property systems of registration. They have been included for illustrative purposes.4.2. LICENCES, CLAIMS, AND LEASESIn most jurisdictions, there are several basic types of interests that can be obtained from the state for mining purposes and that are of interest to the explorationist, as opposed to the operator. Different jurisdictions will have variations of these and possibly some extra ones that will address special purposes or local concerns. In virtually every jurisdiction, privately owned property rights are obtained through negotiation between owner and acquiror.Exploration or prospecting licence. This licence grants to the holder the right to prospect over a large tract of land and the exclusive right to acquire mining claims within that tract for the term of the licence. Such licences are usually negotiated documents requiring a minimum expenditure during the first year (often secured by a deposit or surety bond) and minimum annual expenditures thereafter to continue the licence in force up to its full term. The term will rarely exceed four years. The number of claims permitted to be staked will be limited in some way, possibly as to a maximum aggregate area or a maximum number of claims per annum. It is normal for the holder to have to drop part of the licensed area each year, so that the area shrinks annually, although exploration expenditure requirements will usually increase.These types of licences are usually used by governments to encourage exploration of otherwise unattractive or remote areas, such as the far northern parts of some of Canada’s provinces. They do not grant any real property interest in the area for which they are issued, and they will be subject to any claims or property rights that exist in the area. They are contracts with the state that grant certain exclusive rights in return for commitments to carry out work. They may or may not be specifically authorized by statute."

Jan 1, 2003

By J. Ran

"Hangingwall sloughing is the major cause of unplanned stope dilution in open stope mining. Understanding the hangingwall sloughing mechanism can guide the stope design in minimizing the unplanned dilution and improving muck size and therefore mining efficiency. Though the modified stability graph method may be adopted to assess the hangingwall stability, for mines where the hangingwall is inaccessible, the required parameters are difficult to define and some of the simple influential factors cannot be easily identified in this method to provide guidelines for stope design.This paper identifies the main modes of hangingwall sloughing in open stope mining based on detailed data collected from mined-out stopes and site observations, applies the voussoir beam notation to analysis of the hangingwall sloughing mechanism, compares the model analysis results with the collected stope data, and provides guidelines for stope design and model application. Finally, examples are given to demonstrate the time and support effects on hangingwall sloughing and stope dilution."

Jan 1, 2002

By A. R. Miller, G. Desrivières, M. C. Bétournay, D. L. Barnes, P. Laliberté

"Over the last four years, an international initiative, championed by Vehicle Projects LLC, the Fuelcell Propulsion Institute and Natural Resources Canada, has been active in carrying out research projects to prove out the concept of applying fuel cell technology to underground mining vehicles. These have been carried out by a consortium consisting of mining companies, equipment manufacturers, technology developers, national laboratories and consultants, with the participation of Canadian and U.S. mine regulatory agencies.This clean technology, which produces only water and electricity, would allow several advantages to be obtained, in the health area (by eliminating diesel emissions and reducing noise generation), in lowering production costs (such as reducing ventilation required) and lowering greenhouse gas emissions.This paper outlines the results obtained in several key areas, such as, the operation of fuel cells in underground conditions, risk issues related to underground and surface operation of hydrogen vehicles and hydrogen production and delivery systems, and the design and mining performance of the world’s first hydrogen mining vehicle, a mine production locomotive. The work to date on the fuel cell loader, designing the power plant and power transmission systems, operational requirements, and operating cost reductions is also presented."

Jan 1, 2003

By G. M. Brownell

THE Falcon Lake stock is a small igneous mass, 2.6 square miles in area, which has intruded a belt of older lavas and metamorphosed sediments. It is well exposed and the entire area of its outcrop is taken up with surveyed mining claims, the claim lines forming a grid which makes ideal conditions for a detailed petrographical study of the unusual variations which are found in the composition of this unit (see Figure 1). The study of this mass, which has revealed features of both scientific and economic significance, began in the summer of 1939 when trainees in a Prospectors' Training Camp, a Do-minion-Provincial youth-training project under the writer's supervision, were, detailed to map rock outcrops on various mining claims. Microscopic study of rock specimens taken on a line across this stock were made during the following winter and proved to be of such interest that a special trip was made the following summer for the purpose of gathering more data, the results of which are presented here. Location The stock is close to the southeast corner of the province of Manitoba, about three miles from the Ontario boundary. It lies between Falcon and West Hawk lakes and less than a mile south of the Trans-Canada highway. It is easily accessible by motor car, as a branch road from the highway leads to the Sunbeam Kirkland gold mine, which is within the inner core of the stock. Previous Work This area was the first in the Province to receive attention from prospectors, who entered it from the adjacent Lake of the Woods district during the days of the mining boom in the 1890's. Small occurrences of gold, copper, molybdenum, and tungsten ores were found, but to date there has been no production from the district, except for small shipments of gold ore. The regional geology has been mapped by the Manitoba Department of Mines and Natural Resources, the Falcon Lake stock being shown and recorded as of "varying composition". The more detailed work involved in preparing the accompanying map has necessitated only minor changes in the outline as previously mapped.

Jan 1, 1941

En quoi consistent les études de suivi des effets sur l?environnement (ESEE)? Les ESEE constituent une méthode de suivi scientifique que l?on peut employer pour déterminer la santé des écosystèmes aquatiques (qui peuvent être touchés par l?activité humaine) et l?efficacité des mesures de protection de l?environnement. Les ESEE sont des évaluations scientifiques itératives du poisson, de l?habitat du poisson et des ressources halieutiques. Le programme comporte des phases séquentielles de deux à six ans de suivi, d?interprétation et de compte rendu au cours desquelles la fréquence et le type de suivi dépendent des résultats des études précédentes. Le programme des ESEE pour les mines de métaux est fondé sur un accord conclu à l?unanimité entre les intervenants. Les exigences du programme et les guides techniques connexes ont été élaborés à la suite d?une consultation multilatérale à laquelle ont participé les représentants du secteur privé, du gouvernement et des collectivités. Toutes les mines assujetties au Règlement sur les effluents des mines de métaux (REMM), aux termes de la Loi sur les pê ches, doivent procéder à une ESEE dans le cadre de l?autorisation qu?ils ont reç ue de rejeter des effluents. Le REMM a été enregistré le 6 juin 2002 et publié dans la Partie II de la Gazette du Canada le 19 juin 2002 (SOR/DORS/2002-222).

Nov 1, 2002

By Robert B. Parsons

"Canada's mining industry has reason to celebrate the federal government's budget which was tabled on February 26, 1986. The budget contains an important proposal to improve the flowthrough share rules by effectively eliminating the investor's liability to third parties. This proposed rule change and other important budget proposals are the subject of this month's edition of Tax Notes. IntroductionWhile Finance Minister Michael Wilson's February 26, 1986 budget received a mixed reaction from business and labour leaders, the budget was mainly ""good news"" for the mining industry. A long-standing bugaboo in the flow-through share rules will be cleared up, a permanent set of rules will be installed for the tax treatment of Northern allowances, and limited partnerships will apparently be able to continue to serve a useful role in financing exploration programs. Flow-Through SharesThe present rules which apply to an investment in flow-through shares are structured in such a way that the relevant Canadian exploration expense (""CEE"") must be incurred by the investor, and not by the issuing corporation. Obviously, in the case of most flow-through share issues, this requirement that the investor incur the CEE poses a practical problem-the investor typically does not have the expertise or organization to incur the CEE. As a result, an integral part of most flowthrough arrangements is an agreement whereby the investor appoints another party (usually the issuing corporation) as his agent to spend the flow-through funds on CEE on his behalf. Although the issuing corporation might consequently be the party which actually spends the flow-through share funds on CEE, nevertheless the legal structure is such that the investor is the ""principal"" who is incurring the CEE. As such, the investor is legally responsible for any third-party claims with respect to the exploration program. Third-party liability might arise, for example, in the case of property damage, personal injury, environmental infractions, and so on."

Jan 1, 1986