I rise today to inform members of the House that my department has approved seven new Junior Exploration Assistance contracts so far this fiscal year for a total amount of just over $730,000. These contracts represent a total work commitment of $2.4 million for mineral exploration activity in the province this year.

This funding is made possible through the province�s Mineral Incentive Program which received an additional $1 million in this year�s provincial budget. At $2.5 million this year, it is the largest budget in the program�s history.

$1.9 million of this year�s Mineral Incentive Program has been earmarked for junior exploration and prospecting which are critical elements in Newfoundland and Labrador�s mining industry. The seven junior exploration assistance contracts we are announcing today will support geophysical surveys in Labrador and on the south cost of the island, and drilling programs in the Buchans and Port aux Basques regions.

The department has signed contracts with Silver Spruce Resources, Pathfinder Resources, Vinland Resources, Cornerstone Resources, Playfair Mining and two with Messina Minerals.

The contracts range in amounts from $80,000 to $150,000 and, we know that for every dollar invested by government, $1.41 of private capital is spent on grassroots exploration.

Exploration activity increases the potential for new mine development which leads to new business and employment opportunities for the people of the province. Messina Minerals, for example, is making a significant investment in its Tulks South Property in the Buchans-Millertown area as a result of discovering significant amounts of zinc, lead, copper, silver and gold. The company is extremely encouraged by the results of its exploration activity in this province and is adding three new drill rigs, as I speak.

In addition to the contracts we are announcing today, 42 prospector grants have also been approved so far this fiscal year for a total of $145,550.

Since 2004, 197 prospectors assistance grants have been issued totalling over $600,000 to carry out grassroots and advanced prospecting. To date, these grants have led to at least 12 option agreements with junior mining companies, resulting in combined work commitments in excess of $2 million.

During this same period, 49 junior exploration assistance grants were awarded totaling over $3.4 million. These resulted in project exploration expenditures in excess of $12.3 million for advanced exploration, diamond drilling, geophysics and geochemical surveys.

With the Mineral Incentive Program, we are investing in economic development and job opportunities for rural Newfoundland and Labrador.

2006 05 16                        2:00 p.m.