March 22, 1999
(Mines and Energy)

New Mineral Exploration Program increases exploration
 and opportunities for development in province

Minister of Mines and Energy, Roger Grimes says a major $12 million three-year initiative by government and industry for a new Mineral Exploration Program, announced in today's budget, will increase the level of mineral exploration in the province and create more opportunities in the development of our natural resources.

"This government is living up to its commitment to take steps to increase mineral exploration in the province by implementing a major Mineral Exploration Program that will help maximize the value of our natural resources and create an attractive investment climate," said Mr. Grimes. "Exploration is the driving force behind this industry. It leads to new development opportunities which bring investment, employment opportunities and revenue into the province."

The Mineral Exploration Program is a three-year program, with new government funding for 1999/2000 of $2 million. This will be matched by industry funding of approximately $2 million or more, for a total expenditure of $4 million this year.

The Mineral Exploration Program will have four main components: an expanded Prospectors Assistance Program with annual government funding of $250,000; Junior Company Exploration Assistance Program with $1.5 million annually in government funding; Dimension Stone Incentive Program with annual government funding of $250,000; and an enhanced Promotion Program with government funding in the range of $150,000 to $250,000 per year.

Mr. Grimes noted that the exploration program will provide significant benefits for all individual prospectors, junior mining companies and the developing stone industry based in the province.

"My department, and this government, remain committed to ensuring the optimum benefits of our natural resources are realized by the people of the province," said Mr. Grimes, "and this major exploration initiative by government will help bring continued development of our natural resources that will further generate wealth for commitment to social programs in the province."

Media contact: Carl Cooper, Communications, (709) 729-4890.

FACT SHEET
MINERAL EXPLORATION PROGRAM
EXPANDED PROSPECTORS ASSISTANCE PROGRAM

• The new expanded program will increase the total available funding from $100,000 to $250,000 annually.

• This increase will enable 40 new prospectors to receive grants who are not able to obtain support because of limited funds.

• Grants are awarded up to an amount of $4,000 for individual independent prospectors working in Newfoundland and Labrador.

• The individual prospectors spend at least a matching amount of "in-kind" expenditures.

• The program has been in place since 1991 and has resulted in 293 prospecting projects, 40 option agreements and $5.5 million in expenditures by the private sector.

• Since 1991, 29 new prospecting companies have been formed.

JUNIOR COMPANY EXPLORATION ASSISTANCE PROGRAM

• This new program will provide $1.5 million annually in government support, matched by $1.5 million in industry expenditure.

• The program provides 50/50 cost-sharing of eligible costs with junior exploration companies with advanced exploration projects on known mineral prospects.

• The Department of Mines and Energy will enter into project specific agreements with Newfoundland and Labrador-based junior companies to cost-share eligible expenditure up to a limit per project.

• An internal committee of the Department of Mines and Energy will screen applications and manage the program.

• The former program, in place from 1993 to 1995, provided $1.2 million over three years. It supported 17 companies with 24 projects, generated private sector expenditures of $6 million, resulted in three new mines (Roycefield, Ming, Richmont) and one future mine (Hammerdown).

DIMENSION STONE INCENTIVE PROGRAM

• The program will provide for 50/50 cost-sharing of eligible up-front costs of new quarry and plant development for dimension stone projects.

• Government will provide funding in the amount of $250,000 annually, to be matched by the private sector.

• Funding will be primarily for trial quarry development and preliminary infrastructure support.

• The Department of Mines and Energy will screen applicants, manage the programs and enter into project-specific agreements with developers to cost-share eligible expenditures up to a specific limit per project.

• There was a similar program in place from 1995 to 1996.

ENHANCED PROMOTION PROGRAM FOR INVESTMENT IN MINERAL EXPLORATION

• The Department of Mines and Energy has an ongoing promotion program for participation in promotional events at major national and international mining conferences and trade shows.

• The Newfoundland and Labrador Chamber of Mineral Resources will partner with government at these events in the future with an enlarged and collaborative program aimed at attracting new mining companies to the province.

• The local mining sector will spend up to $250,000 annually on these collaborative efforts.

• The Department of Mines and Energy will continue with its ongoing program which costs $150,000 to $250,000 annually.

1999 03 22