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Introduction to Metallic and Industrial Mineral Rights in Alberta Alberta Energy 2006 1 Coal & Mineral Development Unit, Alberta Energy.

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Presentation on theme: "Introduction to Metallic and Industrial Mineral Rights in Alberta Alberta Energy 2006 1 Coal & Mineral Development Unit, Alberta Energy."— Presentation transcript:

1 Introduction to Metallic and Industrial Mineral Rights in Alberta Alberta Energy Coal & Mineral Development Unit, Alberta Energy

2 2 MINING IN ALBERTA TODAY Alberta Energy 2006

3 3

4 4 Alberta’s Potential for Gem and Metallic Mineral Wealth Courtesy of AGS Alberta Energy 2006

5 5 Edmonton Calgary Limestone & Other Stone Salt Placer Gold Brick Clay & Shale Iron & Magnetite Ammonite Shell Lethbridge City Mining Locations in Alberta Excludes sand, gravel and sulphur Coal Legend Fort McMurray Oil sands (surface mineable) Alberta Energy 2006

6 6 Surface Mining Operation Alberta Energy 2006

7 7 Mines in Alberta Million Tonnes per year Syncrude Oil Sands Mine (plus million tonnes of overburden) Coal: Highvale Mine 12.5 Limestone: Proposed Muskeg Valley quarry 7.0 Limestone: Other major operations combined 5.6 Coal: Genesee Mine 4.5 Coal: Sheerness Mine 3.4 Coal Valley Mine 2.3 Coal: Paintearth, Vesta, Whitewood, Grande Cache Mines Over 2.0 per mine Small Mines: Coal; Iron; AmmoniteLess than 0.05 per mine Alberta Energy 2006

8 8 MINERAL RIGHTS Alberta Energy 2006 Metallic and Industrial Minerals

9 9 Province as Owner of Minerals Mines and minerals transferred from federal government to Alberta in 1930 Province owns mines and minerals in 81% of land in Alberta Alberta Energy 2006

10 10 Role of Alberta Energy Minerals tenure –Grants mineral rights to private developers for development Collection of mineral revenues – Royalties; Rent; Bonus Bid Advocates reasonable surface access –Surface access is handled through Sustainable Resource Development, the Surface Rights Board and private contract with landowner Alberta Energy 2006

11 11 Metallic and Industrial Mineral Agreements A permit (“claim”) grants the right to explore for Alberta-owned metallic and industrial minerals A lease grants rights to Alberta-owned metallic and industrial minerals for the purpose of development and mining Alberta Energy 2006

12 12 Goals of Alberta Minerals Tenure To give industry the opportunity to explore and develop minerals for the greatest benefit of Albertans To place mineral rights in the hands of those with the interest and means to explore and develop Alberta’s mineral resources To make mineral rights available to others as soon as possible upon termination or expiry of an agreement Alberta Energy 2006

13 13 The Life Cycle of A Mine ExplorationExploration DevelopmentDevelopment MineMine An ‘Idea’ Increased $ Increased Wealth Wealth $ Increased $ Increased Wealth Wealth $ ReclamationReclamation Courtesy of AGS Alberta Energy 2006 PERMIT LEASE

14 14 The Right to Conduct Exploration and Mining Activities The right to the minerals is separate from the right to conduct mining and exploration –Department of Sustainable Resource Development administers approval of exploration programs –Natural Resources Conservation Board administers approval to mine –Department of Human Resources and Employment administers worker health and safety requirements –Department of Environment administers environmental protection and reclamation Alberta Energy 2006

15 15 Courtesy of AGS Alberta Energy 2006

16 16 Mineral Rights for Exploration in Alberta A permit (“claim”) grants the right to explore for Alberta-owned metallic and industrial minerals Application fee: $625 per agreement Size: 16 to 9,216 hectares Term: 14 years, not renewable Annual rent: None Work requirement: Yes, exploration work Alberta Energy 2006

17 17 Map Staking Alberta adopted map staking in 1967 Lands are selected from a map Ground staking not required to stake claim Other provinces using this method today: –British Columbia –Newfoundland –Nova Scotia –Quebec –Saskatchewan and Manitoba in the surveyed areas of those provinces Alberta Energy 2006

18 18 Edmonton Photo courtesy of Bob Riziuk and New Claymore Resources Ltd. St. Paul Area New Claymore Resource Ltd. Alberta Energy 2006

19 19 Work Requirement To maintain a a permit, exploration expenditures and results must be reported to Alberta Energy. Type of work accepted on a permit: Prospecting Trenching and drilling Geological, geophysical, geochemical surveys Laboratory work, assay and analysis Alberta Energy 2006

20 20 Exploration Work Requirements in Alberta Every 2 years must file work on permit –Report cost of work done –Report on geological data and results Report released to public after 1 year Work required goes up over time: Period 1 (Year 1-2) $ 5 / hectare Periods 2 and 3 (Year 3-4, 5-6) $10 / hectare Periods 4 thru 7 (Years 7-14) $15 / hectare Alberta Energy 2006

21 21 Drill Core and Samples On behalf of the Minister of Energy, Alberta Energy may direct an exploring company to provide drill core or mineral samples Material is selected by an Alberta Geological Survey (AGS) geologist in negotiation with the company Material is delivered to the Provincial Mineral Core Research Facility in Edmonton, operated by AGS Alberta Government makes drill core and samples public after 1 year Alberta Energy 2006

22 22 Edmonton Mountain Lake Area Marum Resources Inc. New Claymore Resources Ltd. Permit map courtesy of Alberta Energy Photo courtesy of Bob Riziuk and New Claymore Resources Ltd. Alberta Energy 2006

23 The Right to Mine 23 Alberta Energy 2006

24 24 Metallic and Industrial Mineral Lease A lease grants Alberta-owned mineral rights for the purpose of development and mining Company can request a permit go to a lease if deposit is found and mining is being considered If a deposit is already known, a company can apply for a lease without holding a permit Lease usually grants right to all metallic and industrial minerals in that location, not just those of immediate interest to the company Alberta Energy 2006

25 25 Terms of A Lease Term: 15 years, renewable Size: Maximum 2,034 hectares Annual Rent: $3.50 per hectare Work Requirement: None, but can only renew if a mine is operating or planned Alberta Energy 2006

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