R.R.O. 1990, Reg. 887: ONTARIO PROSPECTORS' ASSISTANCE PROGRAM

Ontario Mineral Exploration Program Act
Loi sur le Programme ontarien d’exploration minière

R.R.O. 1990, REGULATION 887

ONTARIO PROSPECTORS’ ASSISTANCE PROGRAM

Note: This Regulation was revoked on October 25, 2010. See: S.O. 2010, c. 16, Sched. 11, ss. 3, 4.

Last amendment: S.O. 2010, c. 16, Sched. 11, s. 3.

This Regulation is made in English only.

1. In this Regulation,

“designated” means designated by the Minister under subsection 3 (3);

“eligible exploration expenses” means expenses allowed under section 5. R.R.O. 1990, Reg. 887, s. 1.

2. For the purposes of this Regulation, a prescribed mineral resource is any rock, mineral or composite of minerals other than crushed rock used for construction purposes, sand, gravel, natural gas and petroleum. R.R.O. 1990, Reg. 887, s. 2.

3. (1) In this section,

“associate”, where used to indicate a relationship with any person, means,

(a) a corporation of which the person beneficially owns, directly or indirectly, equity shares carrying more than 30 per cent of the voting rights attached to all outstanding equity shares of the corporation,

(b) a partner of the person other than a joint venture partner with respect to a proposed project under this Regulation,

(c) a trust or estate in which the person has a beneficial interest of more than 30 per cent or serves as trustee or in a similar capacity,

(d) a parent, child, brother or sister of the person,

(e) a person to whom the person is married or with whom the person is living in a conjugal relationship outside marriage, or

(f) any other relative of the person or of a person mentioned in clause (e) who has the same home as the person;

“equity share” means a share of any class of shares of a corporation carrying voting rights under all circumstances and a share of any class of shares carrying voting rights by reason of the occurrence of any contingency that is continuing;

“person” means,

(a) an individual, partnership or limited partnership,

(b) an unincorporated association, syndicate or organization,

(c) a trust, trustee, executor, administrator or other legal representative, or

(d) a corporation. R.R.O. 1990, Reg. 887, s. 3 (1); O. Reg. 80/00, s. 1; O. Reg. 349/05, s. 1.

(2) An individual who proposes to carry out a project of exploration in Ontario may apply for a designation of the project on a form to be provided by the Minister. R.R.O. 1990, Reg. 887, s. 3 (2).

(3) Subject to subsection (4), the Minister may designate a project if,

(a) the application is submitted before eligible exploration expenses are incurred on the project;

(b) the applicant has the legal right to perform exploration on the land on which the project is to be carried out;

(c) the applicant has provided evidence of having a sound knowledge of mineral prospecting technology obtained through experience or training;

(d) the applicant is committing sufficient financial resources to ensure the completion of the project;

(e) the applicant clearly specifies the method of carrying out the project and demonstrates that the method meets appropriate exploration standards; and

(f) where the work consists of prospecting on Crown land, the applicant holds a valid Ontario Prospector’s Licence. R.R.O. 1990, Reg. 887, s. 3 (3).

(4) A project is not eligible to be designated if the applicant is,

(a) regularly entitled to receive proceeds from the output of a mine anywhere in the world, other than a royalty; or

(b) an associate of any person who is regularly entitled to receive proceeds from the output of a mine anywhere in the world, other than a royalty. R.R.O. 1990, Reg. 887, s. 3 (4).

(5) Subject to subsection (6), only one application for designation may be submitted for each proposed project. R.R.O. 1990, Reg. 887, s. 3 (5).

(6) Two or more individuals may apply for separate designations of a proposed project if,

(a) the work consists of prospecting on Crown land; or

(b) the work consists of prospecting on land in respect of which they are the co-holders of the mining claims or the co-owners of the mining rights. R.R.O. 1990, Reg. 887, s. 3 (6).

(7) A proposed project may consist of work to be carried out in more than one geographical area. R.R.O. 1990, Reg. 887, s. 3 (7).

(8) A designation under subsection (3) expires on the date specified therein. R.R.O. 1990, Reg. 887, s. 3 (8).

(9) At the time a project is designated, the Minister may pay to the applicant an amount equal to one-half of the proposed eligible exploration expenses, up to the maximum determined under section 8. R.R.O. 1990, Reg. 887, s. 3 (9); O. Reg. 172/99, s. 1.

4. (1) An individual whose project has been designated shall, before the expiry of the designation, submit a final submission on a form to be provided by the Minister. R.R.O. 1990, Reg. 887, s. 4 (1).

(2) Upon the filing of a final submission, the Minister may, subject to the maximum determined under section 8, pay to the applicant a grant equal to the amount of eligible exploration expenses incurred in respect of the project, less the amount paid to the applicant under subsection 3 (9). R.R.O. 1990, Reg. 887, s. 4 (2); O. Reg. 172/99, s. 2.

(3) If a final submission is not submitted before the expiry of the designation of a project,

(a) the amount paid under subsection 3 (9) shall be returned to the Minister; and

(b) no further amounts are payable in respect of the designated project. R.R.O. 1990, Reg. 887, s. 4 (3).

5. (1) Subject to subsection (2), eligible exploration expenses consist of,

(a) the expenses for services, personnel, supplies, accommodation, machinery rental and transportation of personnel, supplies and machinery incurred under a designated project with respect to,

(i) prospecting on the property, if such activity includes the preparation of a report and a map showing traverses and observations made,

(ii) geotechnical surveys, including ground or airborne geophysical surveys, geological surveys and geochemical surveys, including overburden test drilling, if such activities include the preparation of maps and reports,

(iii) the establishment of a grid by line cutting, including picketing and chaining, or by compass line and flagging, where dictated by circumstances, if the grid established is used to carry out a survey,

(iv) stripping, trenching and the taking of samples, if such activities include the preparation of plans and reports,

(v) assays and analyses, if such activities include the preparation of maps and reports and the submission of assay or geochemical certificates, and

(vi) surface drilling for exploration purposes only, including mobilization, demobilization and core logging and the preparation of plans, sections, drill logs and reports;

(b) a daily allowance of $100 per day for the time spent by an applicant working on a designated project, if a daily log outlining the applicant’s work activity is submitted.

(2) In calculating eligible exploration expenses, there shall be deducted from the amount otherwise calculated under this section the amount of any funds obtained from any other type of government assistance. R.R.O. 1990, Reg. 887, s. 5.

6. (1) A prospecting report shall be accompanied by,

(a) a detailed list of the expenditures being claimed as eligible exploration expenses;

(b) two complete sets of legible copies, or one set, if one has already been filed for assessment purposes under the Mining Act, of technical reports, maps, plans, sections and drill logs showing the date and the author’s name; and

(c) an index map locating the work area with respect to claim boundaries and topographical features.

(2) The following requirements apply to the items referred to in subsection (1):

1. Plans or maps submitted shall have an astronomic or magnetic north arrow and a scale and shall show claim lines, claim numbers and existing survey or grid lines, roads, streams and other major topographical features.

2. Geological survey maps shall have a legend with rock types coded to facilitate black and white reproduction and shall show outcrops, structural symbols, character of the overburden, distribution of swamp, muskeg and forests and existing drill hole locations, shafts, trenches and mineralization either in bedrock or boulders.

3. Geophysical survey maps shall show the lines traversed, station and base points, value of readings taken and the units measured and the data shall be presented by contours or profiles with conductor location or by an equivalent method of presentation.

4. Geochemical survey maps shall indicate the type of soils, water, stream sediments, rocks or other material sampled, and the location of each sample with analysis and, for vegetation surveys, the description shall give the plant name, species and the part of the plant sampled.

5. Reports on geophysical surveys shall indicate the instrument used, its make, type and model and shall specify the scale constant and sensitivity, the method of survey, the number of stations established, the miles of line surveyed, the dates of the surveys and the interpretation of the results.

6. Reports on geochemical surveys shall indicate the type and amounts of samples collected, the tools used in collecting, the particular soil horizon sampled, the method of sample preparation, the mesh size fraction used for analysis, if applicable, and a brief description of the topography, the dates of the surveys and the interpretation of the results.

7. Details regarding analytical results shall include the total number of samples collected, metals determined and concentration units, analytical methods used, the concentration of the reagents, the name of the commercial laboratory used and, if a field analytical method for determining the metal content is used, a description of the method.

8. Results of assays or other related analytical work shall be accompanied by assay or analytical certificates and plans or sections, or both, showing the assay results and the sample dimensions and indicating the type of grab, chip, panel, channel, drill core or other type of sample taken.

9. Results of drilling shall be set out in a written report outlining the objectives, final results and recommendations of the drilling program.

10. The report referred to in paragraph 9 shall be accompanied by complete drill logs showing the name of the drilling contractor, the starting and finishing dates, the size of core, the direction and initial dip of hole, the location within a claim or grid co-ordinates, the results of dip tests, if taken, the final depth of the hole and the storage location of the core or overburden rejects.

11. Each drill log shall detail overburden, rock types, mineralization, assays or analyses and the results of physical or chemical tests performed.

12. A drilling plan showing the projection on the horizontal of each drill hole shall be presented either separately or combined with other plans or maps.

13. Results of stripping, rock trenching and sampling shall be presented in a written report with a map or maps and the report shall detail the dates the work was carried out, the names of all persons who performed the work, the equipment used, the sample assay results and the location and dimensions of the excavation and the results obtained in the form of a plan or sketch map. R.R.O. 1990, Reg. 887, s. 6.

7. (1) If exploration work on a designated project is discontinued before the project is completed, the applicant shall notify the Minister in writing within thirty days of discontinuing the work.

(2) Any applicant who fails to notify the Minister in accordance with subsection (1) is ineligible to apply for further incentives for a period of three years from the expiry of the designation of the project. R.R.O. 1990, Reg. 887, s. 7.

8. The total grants that may be made under this Regulation to any individual in any year shall not exceed the maximum determined by the Minister. O. Reg. 172/99, s. 3.

9. An applicant who fails to return a grant to which he or she is not entitled is ineligible for any further incentives. R.R.O. 1990, Reg. 887, s. 9.