Province supports more mineral exploration projects in northern Ont.

Ontario Minister of Energy and Mines Stephen Lecce was in Greater Sudbury on Thursday for an announcement connected to mineral exploration.

Since global demand for critical minerals is accelerating, Lecce said Ontario needs to build more mines for the future.

“We need to identify the next mine of critical minerals, rare earths, whatever it may be, to help support our prosperity and our self-reliance,” he said.

Lecce held the news conference underground at NORCAT’s training centre in Levack.

Funds from the Ontario Junior Exploration Program is supporting 68 exploration projects. The program covers up to 50 per cent of eligible costs for exploration and development projects.

Prospectors will now be eligible to receive up to $65,000 per project. Junior mining companies will be eligible to receive up to $215,000 per project.

Tough to find capital

The funding is meant to help with future economic growth in the province, as many prospectors face challenges finding capital to keep going.

There have been six rounds of the program since it was launched in 2021.

The plan is meant to “help unlock untapped economic potential, bolster Canadian self-reliance, boost job creation and secure made-in-Ontario supply chains,” a news release stated.

“Every discovery starts with prospectors and exploration companies taking on the highest risks in the mining cycle –before there is a resource, before there’s a mine, before there’s a return. Early-stage exploration is high risk and offers no guarantees,” said Daniele Spethmann with the Ontario Prospectors’ Association.

Lecce said there’s a lot of uncertainty in early-mine exploration, with a one in 1,000 chance that those projects become a mine. Long timelines, high costs and location challenges make it difficult for junior companies to attract private investors to move forward.

“We live in a vast northern frontier and it’s a balance of science and luck for prospectors and those at the frontier of discovery, they need to make sure that there are some government efforts from permitting to funding to reach the risk,” he said.

Michele Tuomi with Landore Resources Canada spoke about how the company is exploring remote areas near Junior Lake property in northwestern Ontario.

High risks, lengthy process

“The communities in these areas rely heavily on the natural resources sector for economic development, which, in good times, everyone benefits,” Tuomi said.

“Mineral exploration is high risk and highly sensitive to external pressures such as market volatility. When investment dollars dry up, so to can a company’s capacity to explore.”

“The OJEP program provides the financial stability that’s absolutely essential to stimulate continued exploration for minerals, including critical minerals like nickel and platinum,” she added.

Spethmann said it could take 7-10 years from when a deposit is found to when it’s extracted for economic value.

Lecce added that for every dollar invested by the provincial government, $2.50 is mobilized by private investors.