IGWG/Industry Task Force ALTERNATIVE FUNDING ARRANGEMENTS FOR GOVERNMENT GEOLOGICAL SURVEYS 56th Annual Mines Ministers Conference HOW MUCH IS ENOUGH?

RECOMMENDATION-1998 That the Task Force and the National Geological Surveys Committee: n Determine appropriate levels of geoscience mapping as a basis for determining future funding requirements for geological surveys n Present the results of this study to the 56th Mines Ministers Conference in 1999

HOW MUCH IS ENOUGH? n How adequate is current coverage? n How often do maps need to be replaced? n What rate of mapping is required to achieve and maintain adequate coverage? n What is an acceptable rate of mapping to attract mineral exploration dollars back to Canada?

THE APPROACH Asked all jurisdictions to: n Document current status of four critical types of data: bedrock and surficial geology; airborne geophysics; and, surficial geochemistry n Compile geoscience priorities for ten years (typically with stakeholder consultation) n Estimate incremental expenditures required to meet ten-year target

y

A LARGE GAP between CURRENT LEVEL OF EFFORT and EFFORT REQUIRED TO: + Cover all areas of the country that have not been covered adequately; and, + Update maps and surveys to incorporate advances in geoscientific thought

FUNDAMENTAL ASSUMPTION n Complete up-to-date coverage of every part of the country with all types of geoscience surveys - neither realistic nor necessary to attract investment to the exploration sector

THE BOTTOM LINE (C$ millions over ten years)

WHY SPEND THIS MONEY? A good investment that will n create wealth n generate public revenue n benefit communities, particularly in the north n create employment in small, medium and large mining companies and associated industries

GOVERNMENT GEOSCIENCE  MINERAL EXPLORATION   DISCOVERY

JUNIOR MINING COMPANIES n Currently do most of the grassroots exploration n Rely heavily on government geoscience

QUANTIFYING THE IMPACT n Studies show that government expenditures on geoscience will generate a multiplier of four to five times in mineral exploration expenditures over the 5-year period after the data are released n A multiplier of 25 times exploration expenditures may approximate the value of a discovery

THE IMPACT OF THE ADDITIONAL EXPENDITURE GOVERNMENT EXPENDITURE $363 million   MINERAL EXPLORATION$1.5 billion  DISCOVERY $40 billion

RECOMMENDATION 1 n To stimulate mining investment in Canada, a collective commitment to reach the ten-year target proposed by this Taskforce should be made by provincial, territorial and federal governments.

RECOMMENDATION 2 n That this target be achieved through a cooperative approach such as a national geoscience mapping strategy