Mining Exploration Up in '08
By 250 News
Friday, January 16, 2009 03:57 AM
Prince George, B.C.- While the market for metals and ores is down, that didn’t stop mining exploration in the province last year.
Mineral exploration activity in the province reached $367 million in 2008, with 98 projects spending in excess of $1 million.
"This is the second-highest total for exploration spending ever and just off 2007's record-setting pace," said Minister of State for Mining Gordon Hogg. "Despite a difficult economic climate in the last quarter of 2008, the mining industry performed extremely well. We are optimistic that when commodity prices recover, the B.C. mining industry will continue its upward trajectory as a vital player in the B.C. economy."
Last year, 26 new mine development proposals were in the works for 14 metal mines, seven coal mines, three industrial mineral mines and two large aggregate operations.
Of the 388 projects throughout the province, 110 are in the northwest part of the province, and 108 are in the south central region. The next highest concentration of projects is in the north central region with 64.
When it comes to oil and gas, the latest sale of rights generated $7.1 million dollars, that’s down from January ’08 which saw sales of $8.6 million. The average price was also lower, with the current sale netting , on average, $690 per hectare, when last year the average January sale price was $702 per hectare.
The key parcels in the sale included:
* A drilling licence located approximately 42 kilometres southeast of Tumbler Ridge, partially within the Ojay gas field, with a bid of $1,129 per hectare for a total of over $3 million in tender bonus.
* A drilling licence located approximately 65 kilometres north of Hudson's Hope, near the Townsend gas field, with the highest average price for a parcel of $1,466 per hectare, for a total bonus bid of $2.1 million.
* Two leases, which averaged $551 per hectare and received a combined $323,631 in tender bonus, located 40 kilometres southwest of Dawson Creek, within the Sundown gas field.
Drilling licences provide the exclusive right to explore for petroleum and natural gas by drilling wells; they are acquired by the successful bidder at the Crown sale; primary terms of three, four or five years depending on location.
Leases provide the exclusive right to produce petroleum and natural gas; they are acquired by the successful bidder at the Crown sale, or selected from permits and drilling licences. Primary terms are five or 10 years depending on location.
The next sale is scheduled for Feb. 25, 2009 and will offer 98 parcels covering 32,639 hectares.
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Posted by: He speaks on January 16 2009 8:15 AM