Short Title

1 These Regulations may be cited as the Canada Mining Regulations.

Interpretation

• 2 (1) In these Regulations,

  Act

  Act means the Territorial Lands Act; (Loi)

  adjacent claims

  adjacent claims means claims that are contiguous or are intended by the locator to be contiguous; (claims adjacents)

  assay

  assay[Repealed, SOR/79-234, s. 1]

  authorized officer

  authorized officer means any person authorized by the Minister to perform any function related to the administration and enforcement of these Regulations; (agent autorisé)

  Chief

  Chief means the Director, Mineral Resources, of the Natural Resources and Environment Branch of the Department of Indian Affairs and Northern Development; (chef)

  claim

  claim means a plot of land located or acquired in the manner prescribed by these Regulations; (claim)

  claim inspector

  claim inspector means a person designated as a claim inspector pursuant to section 4; (inspecteur de claim)

  co-holder

  co-holder means a person in whose name a claim is recorded under these Regulations either jointly or in common with another person; (co-détenteur)

  Department

  Department means the Department of Indian Affairs and Northern Development; (ministère)

  depreciable assets

  depreciable assets, in respect of a mine, means buildings, plant, machinery and equipment that form part of the mine; (actif amortissable)

  Deputy Mining Recorder

  Deputy Mining Recorder means a person designated as a Deputy Mining Recorder pursuant to section 4; (registraire minier adjoint)

  engineer of mines

  engineer of mines means a person designated as an engineer of mines pursuant to section 4; (ingénieur des mines)

  exploration cost

  exploration cost means an expense incurred for the purpose of determining the existence, location, extent, quality or economic potential of a mineral deposit in the Territories, but does not include an expense incurred for the purpose of bringing a mine into production; (frais d’exploration)

  exploratory work

  exploratory work means any work done for the purpose of determining the economic potential of a permit area; (travaux d’exploration)

  fiscal year

  fiscal year, in respect of a mine, means the fiscal period of the mine’s operator as defined in section 249.1 of the Income Tax Act; (exercice)

  identification tag

  identification tag means a tag used to mark a corner of a claim and made of a substance and of a size approved by the Minister and issued as one of a set of four by the Mining Recorder; (plaque d’identification)

  lease

  lease means a lease of a recorded claim granted to the holder of the claim pursuant to section 58; (concession)

  legal post

  legal post means a post, tree, mound of earth or stone used for making a claim in accordance with section 14; (borne légale)

  lessee

  lessee means a person in whose name a lease of a claim is granted under these Regulations; (concessionnaire)

  licence

  licence means a licence to prospect issued under section 8; (licence)

  licensee

  licensee means a person who holds a licence; (titulaire de licence)

  locate

  locate means to mark out a claim in accordance with these Regulations; (localiser)

  locator

  locator means a licensee who locates a claim or for whom a claim is located; (localisateur)

  mine

  mine means any work or undertaking in which minerals or ore containing minerals are removed from the earth or from talus by any method, and includes works, mills, concentrators, machinery, plant and buildings below or above ground belonging to or used in connection with the mine; (mine)

  mineral

  mineral means precious and base metals and other naturally occurring substances that can be mined, but does not include

  • (a) coal, petroleum and related hydrocarbons, native sulphur, construction stone, carving stone, limestone, soapstone, marble, gypsum, shale, clay, sand, gravel, volcanic ash, earth, ochre, marl or peat, or

  • (b) any other substances regulated under the Territorial Coal Regulations, the Territorial Dredging Regulations or the Territorial Quarrying Regulations; (minéraux)

  mineral claim staking sheet

  mineral claim staking sheet means

  • (a) a map of an area bounded on the north and south by 15-minute intervals of latitude and on the east and west by 30-minute intervals of longitude south of 68 degrees north latitude, or

  • (b) a map of an area bounded on the north and south by 15-minute intervals of latitude and on the east and west by one degree intervals of longitude north of 68 degrees north latitude; (feuille de jalonnement d’un claim minier)

  mining district

  mining district means an area established as a mining district pursuant to paragraph 23(g) of the Act; (district minier)

  mining property

  mining property means

  • (a) a recorded claim or lease within the boundaries of which a mine is situated, or

  • (b) a group of contiguous recorded claims or leases, or both, within the boundaries of which a mine is situated,

    • (i) that are held by the same owner, or

    • (ii) where the mine is operated as a joint venture, that are held exclusively by the members of the joint venture or parties related thereto, regardless of the degree of ownership of each claim or lease; (propriété minière)

  Mining Recorder

  Mining Recorder means a person designated as a mining recorder pursuant to section 4; (registraire minier)

  mining royalty valuer

  mining royalty valuer means a person designated by the Minister as a mining royalty valuer; (évaluateur des redevances minières)

  Minister

  Minister means the Minister of Indian Affairs and Northern Development; (ministre)

  owner

  owner, in respect of a claim, lease, mine, mining property or abandoned mining work, means any person with a legal or beneficial interest therein; (propriétaire)

  permit

  permit means a permit to prospect issued under section 29; (permis)

  permittee

  permittee means a person who holds a permit; (titulaire de permis)

  processing

  processing means

  • (a) crushing, grinding, floatation, beneficiation, concentrating, milling, roasting, smelting, leaching, recrystallization or refining performed to recover minerals from ore or from a mineral-bearing substance, or

  • (b) where the output of a mine is precious or semi-precious stones, cleaning and sorting that output; (traitement)

  processing assets

  processing assets means tailings disposal facilities and depreciable assets located in the Territories that are used directly and exclusively in processing; (biens utilisés pour le traitement)

  qualifying environmental trust

  qualifying environmental trust means a qualifying environmental trust, as defined in subsection 248(1) of the Income Tax Act, that is created by a trust indenture approved by the Minister; (fiducie pour l’environnement admissible)

  recorded claim

  recorded claim means a claim recorded with the Mining Recorder in the manner prescribed by these Regulations; (claim enregistré)

  reduced area tag

  reduced area tag means a tag used to mark a corner of a claim, the area of which has been reduced in accordance with section 43, and made of a substance and of a size approved by the Minister and issued as one of a set of four by the Mining Recorder; (plaque de superficie réduite)

  related

  related, in respect of two or more persons, means that the persons are

  • (a) related persons within the meaning of section 251 of the Income Tax Act, read without reference to paragraph 251(5)(b),

  • (b) associated corporations within the meaning of section 256 of that Act, read without reference to subsection 256(1.4),

  • (c) affiliated persons within the meaning of section 251.1 of that Act, or

  • (d) other than for the purpose of paragraph 67.1(1)(b), owners or operators of the same mine; (liées)

  representation work

  representation work means work of a kind described in subsection 38(1); (travaux obligatoires)

  Supervising Mining Recorder

  Supervising Mining Recorder means the person designated as Supervising Mining Recorder pursuant to section 4; (registraire minier en chef)

  surface holder

  surface holder means the lessee or registered holder of the surface rights to the land on which a mineral claim is or is proposed to be recorded; (détenteur des droits de surface)

  Surveyor

  Surveyor has the same meaning as Canada Lands Surveyor in the Canada Lands Surveys Act; (arpenteur)

  Surveyor General

  Surveyor General has the same meaning as in the Canada Lands Surveys Act; (arpenteur général)

  Territories

  Territories means the Northwest Territories and Nunavut; (territoires)

  undeducted balance

  undeducted balance means

  • (a) in respect of a depreciation allowance, the original cost of the depreciable assets in respect of which the depreciation allowance is claimed, less any depreciation allowances previously claimed in respect of those assets,

  • (b) in respect of a development allowance, the unamortized balance of costs eligible for a development allowance under paragraph 65.1(1)(h), and

  • (c) in respect of a qualifying environmental trust contribution allowance, the total of all contributions made to the qualifying environmental trust, less any deductions previously claimed; (fraction non amortie)

  year

  year, for the purpose of representation work, means the period between the date of the recording of a claim and the anniversary date next following, and then from year to year. (année)

• (2) For the purposes of these Regulations, a person who is related to another person is considered to be also related to any person to whom the other person is related.

Application

• 3 (1) These Regulations apply to lands in the Territories that are vested in Her Majesty in right of Canada or of which the Government of Canada has power to dispose.

• (2) These Regulations are subject to any Act governing the production, conservation and control of ores containing radioactive elements.

Administration

• 4 (1) The Chief shall designate a person to be Supervising Mining Recorder and may designate persons to be engineers of mines or claim inspectors.

• (2) For each mining district, the Chief shall designate a person to be Mining Recorder and may designate a person to be Deputy Mining Recorder.

• 5 (1) Subject to subsection (2), all records of recorded claims and all documents filed in the office of a Mining Recorder relating to such claims shall, during office hours, be open to public inspection free of charge, and the Mining Recorder shall, on payment of the applicable fee set out in Schedule I, issue copies of such records and documents to any person applying therefor.

• (2) Subject to subsection (3),

  • (a) no report on geological, geochemical, geophysical, diamond drilling or other investigation of a recorded mineral claim, and

  • (b) no other report or document certified by the holder of a recorded mineral claim to be confidential,

  that is filed with a Mining Recorder as evidence of representation work on a mineral claim shall be open to public inspection for a period of three years from the date on which such report or document was filed or until the mineral claim to which it relates lapses, whichever is the earlier.

• (2.1) No copy of a report or document referred to in subsection (2) shall, for the earlier period referred to in that subsection, be issued to anyone except the holder of the mineral claim to which the report or document relates, except for the purposes of the administration or enforcement of these Regulations or legal proceedings related to such administration or enforcement.

• (3) Every copy of, or extract from, an entry in any record kept by a Mining Recorder or any document filed in his office relating to a recorded claim certified by a Mining Recorder or Deputy Mining Recorder to be a true copy or extract thereof, shall be received in evidence in all proceedings relating to that claim without proof of the signature or of the official character of the person appearing to have signed the certificate and without proof of his official position.

6 Where a claim has been recorded under a claim name, a Mining Recorder may, on receipt of an application therefor in writing from the holder of the claim and upon payment of the applicable fee set out in Schedule I, change the name of the claim in his records.

Licence to Prospect

7 Any individual who is 18 years of age or older and any company that is registered with the Registrar of companies pursuant to the Companies Ordinance of the Territories, other than an individual or company who held a licence that was revoked pursuant to subsection 10(3) within the previous 30 days, may apply for a licence.

• 8 (1) An application for a licence or the renewal of a licence shall be made to the Mining Recorder and shall be accompanied by the fee that is appropriate to the licence as set out in Schedule I.

• (2) On receipt of an application for a licence and the applicable fee, the Mining Recorder shall

  • (a) issue to the applicant a receipt in respect of the fee paid;

  • (b) complete a Prospector’s Licence Record in Form 1 set out in Schedule III; and

  • (c) issue to the applicant a licence in Form 2 set out in Schedule III.

• (3) On receipt of an application for the renewal of a licence and the applicable fee, the Mining Recorder shall

  • (a) issue to the licensee a receipt in respect of the fee paid; and

  • (b) enter the receipt number and the date of issue of the receipt in the licensee’s Prospector Licence Record.

• (4) Subject to subsection (5), a licence shall be valid from the date of its issue until March 31 following the date of its issue.

• (5) Where a licence is renewed before its expiration date, it shall be valid for a period of one year from March 31 following the date of its renewal.

• (6) No person, other than a licensee, shall

  • (a) prospect for minerals on territorial lands;

  • (b) make an application to record a claim;

  • (c) acquire any recorded claim or any interest in a recorded claim by transfer;

  • (d) submit an application for a certificate of work or a certificate of extension; or

  • (e) acquire a lease of a recorded claim.

• (7) No person shall locate a claim unless the person is 18 years of age or older.

• 9 (1) Subject to subsection (6), no licence is transferable.

• (2) Every licence shall be numbered and stamped to indicate the office from which it was issued.

• (3) If a licence is accidentally destroyed or lost, the licensee may, upon payment of the fee prescribed therefor in Schedule I, obtain a duplicate licence from the office from which the original licence was issued.

• (4) Every duplicate licence issued pursuant to subsection (3) shall be marked “duplicate licence”.

• (5) No person shall hold more than one licence at any time.

• (6) Where a company changes its name or is amalgamated or reorganized under a new name, any licence issued to the company may be transferred to the company under its new name or to the amalgamated or reorganized company.

• 10 (1) Where a licensee is required to perform representation work or exploratory work, that work may be performed by any person authorized by the licensee.

• (2) Any person may locate claims on behalf of a licensee.

• (3) Where a licensee or any person acting on behalf of that licensee has wilfully contravened these Regulations, the Chief may, after giving the licensee an opportunity to be heard, revoke the licence of that licensee.

Where and by Whom Claims May Be Acquired

• 11 (1) Subject to any regulations made under the Territorial Lands Act, a licensee may enter, prospect for minerals and locate claims on lands other than lands

  • (a) to which the National Parks Act applies;

  • (b) used as a cemetery or burial ground;

  • (c) in respect of which a claim has been recorded and has not lapsed;

  • (d) the minerals in which have been granted or leased by Her Majesty;

  • (e) set apart and appropriated by the Governor in Council for a purpose set out in section 23 of the Act;

  • (f) the entry on which for the purpose of prospecting for minerals and locating a claim thereon is prohibited by order of the Governor in Council, subject to the terms and conditions contained in the order;

  • (g) under the administration and control of the Minister of National Defence, the Minister of Energy, Mines and Resources or the Minister of Transport, unless the consent of that Minister has been obtained in writing; or

  • (h) the surface of which has been granted or leased by Her Majesty, unless the grantee or lessee consents thereto or an order authorizing entry thereon has been made pursuant to subsection 72(3).

  • (i) [Repealed, SOR/88-9, s. 6]

• (2) Where a roadway, railway or other right-of-way is included in a recorded claim, the holder of the claim shall not have the right to enter on the right-of-way for the purpose of prospecting or development without the permission of the Mining Recorder for the district in which the claim is situated, which permission shall not be refused unless the holder has first been given the opportunity of being heard.

Size of a Claim

12 Subject to these Regulations, a licensee or a person authorized by a licensee may, in accordance with section 13, locate mineral claims, but no such claim shall exceed 2,582.5 acres.

How a Claim Shall Be Located

• 13 (1) A claim shall, as nearly as possible, be rectangular, except where a boundary of any lands referred to in paragraphs 11(1)(a) to (h) is adopted as a common boundary.

• (2) Subject to subsection (3), the length and width of a claim shall each, as nearly as possible, be 1,500 feet or a multiple thereof, but the length of a claim shall not exceed five times its width.

• (3) Any land situated between two previously located claims that contains not more than 2,582.5 acres, may be located as a claim.

• (4) A claim shall be measured horizontally and its boundaries shall extend vertically downward on all sides and shall, as nearly as possible, run north, south, east and west astronomically.

• 14 (1) Subject to subsection 15(2), each corner of a claim shall be marked on the ground

  • (a) in a treed area

    • (i) by a post of sound wood planted firmly in or on the ground in an upright position and standing not less than four feet above the ground, or

    • (ii) by a tree found in position and cut off not less than four feet above the ground,

    the upper one foot of which has been squared so that each face of the squared portion is not less than 1 1/2 inches in width; and

  • (b) in a treeless area, by a post described in subparagraph (a)(i) or by a cone-shaped, well-constructed mound of earth or stone that is not less than three feet in diameter at the base and not less than three feet in height.

• (2) Subject to subsections (3) and 15(2), legal posts shall be erected along the outer boundaries of a claim at intervals of not more than 1,500 feet, measured horizontally, the posts being numbered consecutively in a clockwise direction, commencing at one, from the northeast corner post, and recommencing at one from each corner post thereafter.

• (3) Where a boundary line crosses a body of water or any other natural obstruction or lands described in paragraph 11(1)(h), a legal post shall be placed on the boundary line on each side of the body of water, natural obstruction or lands.

• (4) Where two or more claims are being located at the same time by or on behalf of the same licensee and have a common corner or common boundary, one legal post may be used to mark any common corner or common boundary point.

• (5) Where wooden legal posts are used to mark a claim, there shall be fastened securely on each of the posts marking the northeasterly, southeasterly, southwesterly and northwesterly corners an identification tag bearing a serial number and the post number namely, “NE 1” for the northeast post, “SE 2” for the southeast post, “SW 3” for the southwest post and “NW 4” for the northwest post.

• (6) Where a mound of earth or stone is used as a legal post to mark a claim, the appropriate identification tag shall be inserted in a waterproof container in the apex of the mound.

• (7) There shall be clearly inscribed on the identification tag marked “NE 1”

  • (a) the name of the claim;

  • (b) the name of the locator;

  • (c) the licence number of the locator;

  • (d) the name of the person actually locating the claim if that person is not the locator; and

  • (e) the date, hour and minute of the placing of the legal post.

• (8) There shall be clearly inscribed on each of the identification tags marked “SE 2”, “SW 3” and “NW 4”

  • (a) the name of the claim;

  • (b) the name of the locator;

  • (c) the name of the person actually locating the claim if that person is not the locator; and

  • (d) the date, hour and minute of the placing of each legal post.

• (9) Information that cannot be inscribed on an identification tag because of insufficient space or lack of tags shall

  • (a) in the case of a wooden legal post, be plainly marked on the legal post; or

  • (b) in the case of a mound of earth or stone used as a legal post, be legibly written on paper or inscribed on durable material and inserted in a waterproof container in the apex of the mound.

• (10) A claim that is marked in a manner described in subsection (9) because of a lack of tags shall not be recorded by a Mining Recorder until the claim has been marked with identification tags in the manner required by these Regulations and where the claim is not so marked within the time prescribed by subsection 24(1), the claim shall not be recorded.

• (11) Where a wooden legal post is used to mark the boundary of a claim, there shall be clearly inscribed on each post, other than a corner post, the name of the claim, the appropriate number of the post and

  • (a) on any north boundary post, the letters “NBP” or “BLN”;

  • (b) on any east boundary post, the letters “EBP” or “BLE”;

  • (c) on any south boundary post, the letters “SBP” or “BLS”; and

  • (d) on any west boundary post, the letters “WBP” or “BLO”.

• (12) Where a mound of earth or stone is used as a legal post to mark the boundary of a claim, the inscriptions referred to in subsection (11) shall be legibly written on paper or inscribed on durable material and inserted in a waterproof container in the apex of the mound.

• (13) On completing the requirements of subsections (2) to (12) there shall be clearly inscribed on the identification tag marked “NE 1” the minute, hour, day, month and year at which such requirements were completed.

• (14) When all corner and boundary posts have been placed and inscribed as required by this section and the time of completion is marked on the northeast corner post as required by subsection (13), the claim shall, for the purposes of these Regulations, be deemed to be located.

• 15 (1) In this section,

  reference post

  reference post means a legal post erected pursuant to subsection (4) to designate the corner of a claim previously designated by a witness post; (borne de référence)

  witness post

  witness post means a legal post erected pursuant to subsection (2) to designate the corner of a claim. (borne témoin)

• (2) Where, because of the presence of a body of water or any other natural obstruction in an area, or lands described in paragraph 11(1)(h), it is not practicable or permitted to erect one of the four legal posts required by subsection 14(1), a witness post shall be erected on each boundary line or an extension thereof as near as possible to the place where the legal post would otherwise have been erected.

• (3) An identification tag shall be fastened to each witness post on which shall be clearly inscribed

  • (a) the information required by section 14;

  • (b) the letters “W.P.”; and

  • (c) the distance in feet and the direction along the boundary line or its extension from the witness post to the place where the legal post would have been erected had it been practicable to do so.

• (4) Where a witness post is used to mark a claim and it subsequently appears that it has become possible to mark the claim by erecting a legal post or to erect the witness post nearer to the place where a legal post would otherwise have been erected, a Mining Recorder may order the holder of the claim to erect a reference post

  • (a) at the place where the legal post would otherwise have been erected; or

  • (b) at such place nearer to the corner of the claim where the witness post would have been erected had it been practicable to do so, as the Mining Recorder may determine.

• (5) Where a reference post is erected pursuant to subsection (4), the witness post to which it relates shall not be moved.

• (6) Where the holder of a claim fails to comply with an order of the Mining Recorder made pursuant to subsection (4) prior to making application for the first certificate of work, the Mining Recorder may cancel the record of the claim.

• (7) Where a witness post is used to mark a claim and the Supervising Mining Recorder is satisfied that the use of the witness post was unnecessary, he may, after hearing the holder, cancel the record of the claim.

• 16 (1) Before a claim is recorded, a locator shall mark or cause to be marked the boundary lines of the claim in accordance with subsection (2) so that they may be followed throughout their entire length or where it is not possible to mark the entire length, along so much of the length as it is possible to mark.

• (2) The boundary lines of a claim shall be marked

  • (a) in treed areas, by blazing trees and cutting underbrush; and

  • (b) in treeless areas, by providing

    • (i) posts not less than four feet in height, or

    • (ii) mounds of earth or stone not less than 18 inches in height and three feet in diameter at the base.

• 17 (1) Failure on the part of a locator or a person who locates a claim on behalf of a locator to comply with the requirements of sections 13 to 16 shall not invalidate a claim if that person has

  • (a) in good faith tried to comply with the requirements of those sections and his failure to do so is not of a character calculated or likely to mislead other persons locating claims; and

  • (b) stated in his application to record the claim, where he was aware of the requirements of those sections, in what respects he was unable to comply with the requirements and the reasons therefor.

• (2) A Mining Recorder may, before recording a claim, order the locator thereof to comply with any of the requirements of sections 13 to 16 that have not been complied with and where the locator fails to comply with such order within the time specified therein, the Mining Recorder shall not record the claim.

18 A claim may be located on any day including a holiday.

Identification Tags

• 19 (1) On payment of the applicable fee set out in Schedule I, a Mining Recorder shall issue to a licensee applying therefor identification tags for use in marking claims in any mining district.

• (2) On payment of the applicable fee set out in Schedule I, a Mining Recorder shall issue to a licensee applying therefor reduced area tags for use in marking the corners of a reduced area, in accordance with subsection 43(2).

• (3) Where a licensee loses identification tags or reduced area tags issued to him pursuant to subsection (1) or (2) and files a declaration with a Mining Recorder as to the loss and the circumstances thereof, the Mining Recorder shall issue to the licensee, free of charge, tags equal in number to the number of tags lost.

• (4) The Mining Recorder shall cancel in his records the serial numbers of the tags that have been lost and the lost tags shall not thereafter be used.

Removal or Alteration of Legal Posts

20 Subject to subsection 17(2) and section 21, no person shall move or destroy any legal post and no person shall remove, deface or alter any identification tag or other inscription placed on or in a legal post.

• 21 (1) Where, in the course of conducting any public work or carrying on any mining operation, it is necessary to move a legal post, a surveyor may, with the permission of a Mining Recorder, move the post to such place as the Mining Recorder may determine.

• (2) Every surveyor who moves a legal post pursuant to subsection (1), shall inscribe

  • (a) in the case of a wooden legal post, on the post, or

  • (b) in the case of a mound of earth or stone, on paper or other durable material inserted in a waterproof container in the apex of the mound,

  the distance in feet and the direction from the new location to the old location of the post.

• (3) Where a legal post is moved pursuant to subsection (1), the Mining Recorder shall notify the claim holder of the location to which the post has been moved.

22 Where the Supervising Mining Recorder is satisfied that, through no fault of the holder of a recorded claim,

• (a) a legal post marking the claim has been moved or destroyed, or

• (b) the information recorded on a post is illegible,

he shall, at the request of the holder of the claim and after completing such inquiries as he considers necessary, and if no other holder’s rights will be adversely affected, authorize the holder of the claim to erect a new post to mark the claim or place on the post a new identification tag bearing the information previously on the post, as the case may be.

• 23 (1) Where, on making a survey of a recorded claim or group of recorded claims, the surveyor finds that the area exceeds that allowable under subsection 54(5), he may, with the permission of the holder or holders of the claims, establish a new legal post so that the area remaining in the claim or group of claims does not exceed that allowable under subsection 54(5).

• (2) Where a new legal post is established pursuant to subsection (1), the surveyor shall notify the Mining Recorder.

• (3) A surveyor who establishes a new legal post pursuant to subsection (1) shall inscribe

  • (a) in the case of a wooden legal post, on the post, or

  • (b) in the case of a mound of earth or stone used as a legal post, on paper or other durable material inserted in a waterproof container in the apex of the mound,

  all the information placed in or on the post being replaced and the distance in feet and the direction from the new location to the old location of the post.

Recording

• 24 (1) Subject to these Regulations, every locator of a claim or a person acting on his behalf shall make application to record the claim with the Mining Recorder of the mining district within which the claim is situated within 60 days from the date of the locating of the claim.

• (2) An application to record a claim shall be submitted, in duplicate, in Form 3 set out in Schedule III and be accompanied by

  • (a) a plan showing

    • (i) the position of the claim in relation to permanent topographical features in the vicinity of the claim,

    • (ii) any adjoining claims,

    • (iii) the position of the legal posts by which the claim is marked, and

    • (iv) where witness posts are used, the reasons for using such posts where the reasons are not obvious from the plan; and

  • (b) the applicable fee set out in Schedule I.

• (3) Where a Mining Recorder is satisfied that all the requirements of these Regulations have been complied with, he shall record the claim.

• (4) The date on which the application and the fee referred to in subsection (2) are received in the office of the Mining Recorder shall be the date of recording of the claim.

• (5) On recording a claim, the Mining Recorder shall endorse on the application the word “Recorded” and return one copy of the application to the person in whose name the claim is recorded at the address set out in the application.

25 Where a claim has been located but has not been recorded in accordance with subsection 24(3), the area within the claim or any part thereof may be located by or on behalf of another locator.

• 26 (1) Where a claim under the Yukon Quartz Mining Act, as that Act read before April 1, 2003, or under equivalent Yukon law regulating the disposition of quartz mining interests, has been located in the vicinity of the Yukon-Northwest Territories Boundary and such claim or part thereof is found by subsequent survey to be in the Northwest Territories, the holder of the claim may, on satisfying the Supervising Mining Recorder that there has been an error in locating the claim in relation to such boundary, have such claim or part thereof recorded in the proper mining district in accordance with directions issued by the Supervising Mining Recorder, and the recording of such claim or part thereof shall be effective for the purposes of these Regulations as of the time and date of its recording under the Yukon Quartz Mining Act or the equivalent Yukon law, as the case may be.

• (2) Representation work previously accepted by a Mining Recorder under the Yukon Quartz Mining Act, as that Act read before April 1, 2003, or the equivalent Yukon law regulating the disposition of quartz mining interests, shall be accepted by the Mining Recorder when a claim has been recorded in accordance with subsection (1).

• (3) Notwithstanding the requirement of subsection 58(1), a lease of a recorded claim described in subsection (2) shall be applied for before the expiration of the 10th year from the date of recording of the claim in the appropriate mining district.

• (4) Where a claim lies across or appears to lie across a boundary or boundaries of adjoining mining districts, the locator may apply to have the claim recorded in the office of any one of the mining districts in which any portion of the claim is located or appears to be located.

• (5) The Mining Recorder shall forward copies of any applications referred to in subsection (4), together with certified copies of all documents affecting the applications, to the office of the Mining Recorder of the other mining districts affected.

• (6) Any person who wishes to file a document affecting any claim recorded under subsection (4) shall file the document in the office of the Mining Recorder who recorded the claim and shall supply the Mining Recorder with sufficient copies thereof for filing in the offices of the Mining Recorders of the other districts affected.

• (7) No Mining Recorder shall charge a fee for filing a certified copy of a document sent to him by another Mining Recorder.

• 27 (1) Subject to these Regulations and to any other regulations made under section 5 or 23 of the Act, the holder of a recorded claim has the exclusive right to prospect for minerals and to develop any mine on the land within the boundaries of the claim.

• (2) No person shall remove, sell or otherwise dispose of minerals or mineral-bearing substances from a recorded claim the gross value of which exceeds $100,000, other than for assay or testing purposes, before the holder of the claim is granted a lease for the claim.

• (3) The holder of a recorded claim who has not been granted a surface lease or grant of the land comprised in the claim is not entitled to erect any building to be used as a dwelling or any mill, concentrator or other mine building or create any tailings or waste disposal area in connection with the commencement of production from a mine on that claim.

• 28 (1) The recording of a claim may be protested by

  • (a) any person claiming priority in locating the claim or any part thereof at any time within

    • (i) the period referred to in subsection 24(1), or

    • (ii) such additional period as may be fixed by the Mining Recorder not exceeding one year from the expiration of the period referred to in subparagraph (i), or

  • (b) an engineer of mines, at any time prior to the recording of a survey of the claim,

  by filing with the Mining Recorder a notice of protest in Form 4 of Schedule III.

• (2) Where the Supervising Mining Recorder is satisfied that the recording of a claim for which a lease has not been granted was obtained by a false or misleading statement knowingly made by the holder of the recorded claim, the Supervising Mining Recorder may, after hearing the holder of the claim or any person appearing on his behalf, cancel the claim.

• (3) Where a recorded claim is cancelled by the Supervising Mining Recorder under subsection (2), he shall forthwith serve, by registered mail, a notice of cancellation on any person affected thereby.

• (4) Where a recorded claim is cancelled under subsection (2), the claim or any part thereof shall be open for relocation under these Regulations

  • (a) after 12 o’clock noon on the day following the 30th day after the day of cancellation; or

  • (b) where a review is made by the Minister and the Minister confirms the cancellation of the claim, after 12 o’clock noon on the day following the 30th day after the day the Minister confirms the cancellation of the claim.

Permit to Prospect

• 29 (1) The Territories shall be divided into prospecting permit areas, in accordance with Schedule V except for the area in the vicinity of the city of Yellowknife described as follows:

  COMMENCING at a point of intersection of Latitude 60°00′ and Longitude 107°00′, THENCE, northerly to Latitude 65°00′ and Longitude 107°00′, THENCE, westerly to Latitude 65°00′ and Longitude 120°00′, THENCE, southerly to Latitude 60°00′ and Longitude 120°00′, THENCE, easterly to the point of commencement.

• (2) A prospecting permit area shall be based on the National Topographic System as used by the Surveys and Mapping Branch, Department of Energy, Mines and Resources, and shall contain one-quarter the area of a mineral claim staking sheet and shall be designated as the N.E., S.E., N.W. or S.W. quarter.

• (3) Every application for a permit shall be in Form 5 of Schedule III and shall be accompanied by

  • (a) the applicable fee set out in Schedule I;

  • (b) full particulars of the exploratory work proposed to be carried out; and

  • (c) a deposit for an amount equal to the amount the applicant is required to undertake to spend on work in the area during the first period as specified in section 31.

• (4) An application for a permit shall be made between December 1st and December 31st in any year.

• (5) An application for a permit may be sent by mail or delivered by hand to the Chief.

• (5.1) On receipt of applications for permits, the Chief shall assign numbers to the applications according to their order of receipt and, where he receives two or more applications at the same time, he shall assign numbers to the applications according to the order in which he opens them.

• (5.2) For the purposes of subsection (5.1),

  • (a) an application that is received at the Chief’s office

    • (i) after 4 o’clock p.m. on a working day, or

    • (ii) on a holiday

    shall be deemed to have been received by the Chief at 9 o’clock a.m. on the next working day; and

  • (b) an application that is received at the Chief’s office before 9 o’clock a.m. on a working day shall be deemed to have been received by the Chief at 9 o’clock a.m. on that working day.

• (6) A deposit required under paragraph (3)(c) or subsection 30(1) shall be in the form of

  • (a) cash;

  • (b) negotiable bonds of equal value at the date of submission guaranteed by the Government of Canada or a province; or

  • (c) a guaranteed promissory note of equal value that is payable on demand and that a chartered bank has agreed, in terms acceptable to the Chief, to honour on presentation for payment.

• (7) Where a deposit required under paragraph (3)(c) or subsection 30(1) is in the form of a promissory note, it shall be guaranteed for a term of not less than four months after the expiry of the period for which it is deposited.

• (8) Where an application for a permit is not accepted, the fee and deposit shall be refunded to the applicant.

• (9) Where an application for a permit is withdrawn by the applicant before the permit is issued, the deposit but not the fee shall be refunded to the applicant.

• (10) Subject to subsection (11), where exploratory work of value will be undertaken in a prospecting permit area and the granting of a permit will not hinder other mining interests, the Chief may issue a permit, in Form 6 of Schedule III, to an applicant for the exclusive right to prospect for minerals within that area.

• (11) The granting of a permit in respect of any prospecting permit area is subject to any rights previously acquired or applied for by any person in the area to which the permit applies.

• (12) Permits shall be issued between January 1st and January 31st in each year in order of the numbers assigned by the Chief under subsection (5.1) in respect of applications received during the month of December immediately preceding.

• (13) Following the termination of the period during which permits are issued, the Chief shall cause a notice to be

  • (a) published in a newspaper circulating in the Territories,

  • (b) published in the Canada Gazette, and

  • (c) posted in the office of every Mining Recorder in and for the Territories,

  and such notice shall contain a description of all the areas in respect of which permits have been issued during that year.

• (14) Subject to sections 30 to 36, a permit becomes effective on February 1st following the date of issue and remains in effect for a period of

  • (a) in the case of a permit in respect of an area located south of the 68th parallel of north latitude, three years; and

  • (b) in the case of a permit in respect of an area located north of the 68th parallel of north latitude, five years.

• 30 (1) Every permittee shall, before the commencement of the second or any subsequent work period, make a deposit with the Chief equal to the amount that he undertakes to spend during that period in accordance with section 31.

• (2) Where a permittee does not make a deposit as required by subsection (1), his permit shall be cancelled.

• 31 (1) Every permittee shall undertake to spend the following amounts on exploratory work of a type approved by the Chief in a prospecting permit area

  • (a) north of the 68th parallel of north latitude

    • (i) during the first two-year work period, an amount determined by multiplying the number of acres in the permit area by $0.10,

    • (ii) during the second two-year work period, an amount determined by multiplying the number of acres in the permit area by $0.20, and

    • (iii) during the third one-year work period, an amount determined by multiplying the number of acres in the permit area by $0.40;

  • (b) south of the 68th parallel of north latitude

    • (i) during the first one-year work period, an amount determined by multiplying the number of acres in the permit area by $0.10,

    • (ii) during the second one-year work period, an amount determined by multiplying the number of acres in the permit area by $0.20, and

    • (iii) during the third one-year work period, an amount determined by multiplying the number of acres in the permit area by $0.40.

• (2) Every permittee shall, within 60 days after the termination of each work period, submit to the Chief

  • (a) a detailed statement of all expenditures; and

  • (b) a report of the exploratory work performed under the permit setting out the information required for the type of work done in accordance with Schedule II.

• (3) No document submitted by a permittee pursuant to subsection (2) shall be open to public inspection for three years after the expiry of the permit unless the permittee has given written authority to the Chief to permit such inspection.

• (4) The Chief shall, upon receipt of a report referred to in subsection (2), assess the exploratory work performed and notify the permittee of the approved value of the exploratory work.

• (5) For the purpose of subsection (1) and subject to subsection 33(3), the number of acres in each prospecting permit area is set out in Schedule V.

  • SOR/79-234, s. 11

• 32 (1) A permittee may apply in writing to the Chief to group not more than four prospecting permit areas that are within a circle having a radius of 20 miles.

• (2) An application under subsection (1) shall

  • (a) state the prospecting permit areas that are to be included in a group; and

  • (b) be accompanied by the applicable fee set out in Schedule I.

• (3) A prospecting permit area may be included in only one group between one anniversary date of the permit and the next following anniversary date.

• (4) The value of the exploratory work, approved pursuant to subsection 31(4), performed in any prospecting permit area shall, during the period of grouping and at the request of the permittee, be applied to any or all of the permit areas within the group, but any expenditures applied under one grouping may not be re-applied under subsequent groupings.

• 33 (1) A permittee who has done the exploratory work required by subparagraph 31(1)(a)(i) or (b)(i) may locate mineral claims within the permit area.

• (2) No person other than a permittee or a person authorized in writing by the permittee to act on his behalf may locate claims within a prospecting permit area.

• (3) When a claim has been located and recorded, the area included in the claim no longer forms part of the permit area.

34 Sections 24 to 28 apply, with such modifications as the circumstances may require, to the recording of a claim by a permittee, but no Mining Recorder shall record such claim until the Chief is satisfied that the amounts to be spent in accordance with section 31 have actually been spent.

• 35 (1) That portion of the deposit equal to the value of the exploratory work approved pursuant to subsection 31(4) for any work period as determined by the Chief shall be returned to the permittee.

• (2) Subject to subsection (5), that portion of the deposit not returned to the permittee is forfeited to Her Majesty.

• (3) Any amount spent on exploratory work and approved by the Chief pursuant to subsection 31(4) during any work period in excess of the amount required to be performed for that period shall, at the request of the permittee, be deemed to be performed for the period or periods next following and the deposit required for the next following period or periods shall be reduced by the amount of such excess expenditure.

• (4) Any amount spent on exploratory work and approved by the Chief pursuant to subsection 31(4) in excess of that required under subsection 31(1) and not applied under subsection 32(4) may be applied towards representation work on claims located by the permittee within the permit area.

• (5) Where a permittee has not been able to fulfil his undertaking pursuant to subsection 31(1) for a work period, he may make an expenditure during the next following work period equal to the aggregate of

  • (a) the deposit required for that period, and

  • (b) that portion of the deposit for the preceding period that has not been returned to the permittee,

  and, on approval of the expenditure by the Chief, that portion of the deposit that was not previously returned shall be returned to the permittee.

• 36 (1) A permittee may, at the end of the first or second work period, relinquish his rights under the permit and the deposit or a portion of the deposit shall be returned to him in accordance with subsection 35(3).

• (2) After a permit has expired, the permittee shall not locate and record claims within the original permit area for at least one year from the date of expiration.

• (3) Where a permit is relinquished, the Chief shall cause a notice describing the area to be

  • (a) published in a newspaper circulating in the Territories;

  • (b) published in the Canada Gazette; and

  • (c) posted in the office of every Mining Recorder in and for the Territories.

• (4) No transfer of a permit shall be effective without the prior written approval of the Chief and payment of the applicable fee set out in Schedule I.

Grouping

• 37 (1) Subject to subsection (4), the holder or holders of adjacent recorded claims, the area of which in the aggregate does not exceed 5,165 acres, may apply in Form 7 of Schedule III, to the Mining Recorder of the district in which the claims are located to group those claims for the purpose of applying representation work.

• (2) On receipt of an application referred to in subsection (1) together with the applicable fee set out in Schedule I, a Mining Recorder shall, on satisfying himself that the requirements of this section have been met, issue a grouping certificate to the holder or holders of the claims in Form 7 of Schedule III.

• (3) The representation work that has been done on a recorded claim and any exploratory work that has been performed under a permit in excess of the amount required under subsection 31(1) and that has been applied on a recorded claim shall, at the request of the holder, be applied to any or all the claims with which the recorded claim has been grouped under a grouping certificate.

• (4) No recorded claim shall be grouped with any other recorded claim more than once in any 12-month period.

• (5) A grouping certificate shall cease to be valid as a result of

  • (a) the lapsing or cancellation of any recorded claim in the group; or

  • (b) the granting by the Minister of a lease of any recorded claim in the group.

• (6) Any representation work applied to a recorded claim or claims whether contained in a group or not, shall not be re-applied to other recorded claims in subsequent groupings.

Representation Work

• 38 (1) For the purpose of these Regulations, the following undertakings in respect of a recorded claim are representation work:

  • (a) work done in stripping, drilling, trenching, sinking shafts and driving adits or drifts;

  • (b) geological, geochemical and geophysical investigations of a claim made on the ground or from an aircraft;

  • (c) exploratory work other than that described in paragraph (a) or (b), of a kind and to the extent approved by an engineer of mines;

  • (d) a survey of the claim approved by the Surveyor General; and

  • (e) work done in constructing roads or airstrips to provide access to the claim.

• (2) The holder of a recorded claim is entitled to hold it for a period of 10 years from the date the claim is recorded, if

  • (a) during the two-year period immediately following the date the claim is recorded, he does or causes to be done representation work to the value of at least $4 per acre or part thereof contained in the claim; and

  • (b) during each subsequent one-year period, he does or causes to be done representation work to the value of at least $2 per acre or part thereof contained in the claim.

• (3) Subject to subsection (4), where the value of the representation work done on a recorded claim in any period is in excess of the amount required by these Regulations, such excess shall, at the request of the holder, be credited to the value of representation work required to be done on that claim in any subsequent period and be deemed to be work done on that claim in that subsequent period.

• (4) Excess representation work referred to in subsection (3) shall not be credited to the value of representation work for a subsequent period unless a statement of the work is filed with a Mining Recorder in Form 9 of Schedule III

  • (a) within one year and 30 days after the expiration of the period in which the work was performed; or

  • (b) where a notice is given pursuant to subsection 45(1), within 60 days from the date of the notice.

• 39 (1) Subject to subsection (2), but notwithstanding subsection 38(2), a Mining Recorder may

  • (a) on application by a holder of recorded claims that are within the same mining district, and

  • (b) on payment of the applicable fee set out in Schedule I,

  issue a certificate in Form 8 of Schedule III, giving a common anniversary date of recording for the claims, other than February 29.

• (2) Before issuing a certificate pursuant to subsection (1), the Mining Recorder shall satisfy himself that

  • (a) on each recorded claim listed in the application representation work having a value of $0.50 per acre or part thereof has been done for each three-month period or part thereof between the anniversary date of the recording of the claim and the day fixed as the common anniversary date; or

  • (b) a deposit has been made in accordance with subsection 44(8).

• 40 (1) Representation work done on a claim by a holder or a person acting on his behalf before the claim was recorded shall be included in calculating the value of representation work done on the claim in respect of the period of two years from the date of the recording of the claim if the Mining Recorder is satisfied that the work was done for the purpose of developing the claim.

• (2) Representation work done on land not included in a recorded claim may be included in calculating the value of representation work done on the recorded claim if the Mining Recorder is satisfied that the work was done for the purpose of developing the claim.

• 41 (1) Subject to subsection 45(1), every holder of a recorded claim who is required to perform representation work shall file with the Mining Recorder

  • (a) within 30 days after the anniversary date of the recording of the claim, a statement of the representation work done on the claim in the preceding period as required by subsection 38(2); and

  • (b) within one year and 30 days after the anniversary date of the recording of the claim, a statement of any representation work done on the claim in the preceding period that is in excess of the representation work required by subsection 38(2).

• (2) The statement required by subsection (1) shall

  • (a) be in Form 9 of Schedule III;

  • (b) be accompanied by the applicable fee set out in Schedule I; and

  • (c) be accompanied by a plan of the claim showing clearly the location, nature and extent of the representation work done and setting out the information required for the type of work done in accordance with Schedule II.

• (3) Unless excess representation work has been done on a recorded claim in a preceding period, a holder of a recorded claim who fails to comply with the requirements of this section in respect of any period shall be deemed to have done no representation work on that claim in that period.

• (4) The value of any representation work done on a claim shall be determined by a Mining Recorder in accordance with the values set out in Schedule II.

• (5) Where a Mining Recorder is satisfied that the representation work required by these Regulations has been done on a recorded claim, he shall issue a certificate of work to the holder of the claim in Form 10 of Schedule III.

• (6) Where geological, geochemical or geophysical surveys or other similar work have been performed on a claim and evidence of such work is submitted as representation work, all data obtained from such work shall be filed with the statement referred to in subsection (1).

42 No representation work is required to be done on a recorded claim between the day on which an application for a lease of that claim is filed with the Mining Recorder and the day on which a lease is granted, if the holder of the claim has met the requirements of section 58.

Reduced Area Claim

• 43 (1) The holder of a recorded claim may, before the anniversary date of the recording of the claim, make application to the Mining Recorder in the manner set out in subsection 24(2) to have the area of his claim reduced if

  • (a) he is a licensee; and

  • (b) a certificate of work has been issued for the claim in accordance with subsection 41(5).

• (2) A reduced area referred to in subsection (1) shall be one parcel located in accordance with sections 13 to 16 except that the tags to be used shall be those referred to in subsection 19(2).

• (3) On the anniversary date of a recorded claim, the area of which has been reduced, a notice defining the area to be released and the date on which such area shall be open for relocation shall be posted in the office of the Mining Recorder.

• (4) An area referred to in subsection (3) shall be open for relocation under these Regulations after 12 o’clock noon on the day following the expiration of 30 days from the anniversary date.

• (5) The holder of a reduced area claim or claims may, subject to these Regulations, hold the reduced area claim or claims for the unexpired term of the original claim.

• (6) Any credit for excess representation work shall, at the request of the holder of the claim, be applied to the reduced area.

Extension of Time to Perform Representation Work

• 44 (1) Where, because of illness, the holder of a recorded claim is unable to do representation work on the claim as required by these Regulations, he may make application to the Mining Recorder for an extension of time to perform the representation work.

• (2) An application referred to in subsection (1) shall be accompanied by

  • (a) the applicable fee set out in Schedule I; and

  • (b) a certificate of a medical practitioner verifying the illness of the holder.

• (3) Subject to subsection (4), when a Mining Recorder is satisfied that the requirements of this section have been complied with, he shall issue to the holder of a recorded claim a certificate in Form 11 of Schedule III, extending the time for doing representation work on the claim for a period not exceeding one year.

• (4) Where a Mining Recorder has issued a certificate to the holder of a recorded claim pursuant to subsection (3), he shall not issue a further certificate to the holder in respect of that claim for a period of three years from the end of the period for which the certificate was issued.

• (5) Subject to subsections (6) to (8), where the representation work required by these Regulations cannot be done on a recorded claim in any year for any reason other than illness of the holder of the claim, the Mining Recorder shall, on receipt of an application from that holder and on payment of the applicable fee set out in Schedule I, issue to that holder a certificate in Form 11 of Schedule III extending the time for doing representation work on the claim for a period not exceeding one year.

• (6) Where a Mining Recorder has issued a certificate pursuant to subsection (5) to a holder of a recorded claim for three consecutive periods, he shall not issue a further certificate to that holder in respect of that claim for a period of one year from the end of the third period.

• (7) Where a Mining Recorder has issued a certificate to a holder of a recorded claim pursuant to subsection (3) for a period immediately preceding the period for which a certificate is applied for pursuant to subsection (5), he shall not issue a certificate under subsection (5) to the person in respect of that claim for more than two consecutive periods.

• (8) A Mining Recorder shall not issue a certificate pursuant to subsection (5) unless the holder of the recorded claim has deposited with him,

  • (a) prior to the expiration of 30 days after the end of the period in which the representation work is required to be done on the claim, or

  • (b) where a notice has been given to the holder by the Mining Recorder pursuant to paragraph 45(1)(b), before the expiration of 60 days from the date of the notice,

  security of a kind described in subsection 29(6) and in an amount equal to the value of the representation work required by these Regulations to be done on the claim during the period in respect of which the extension is requested.

• (9) Where a certificate is issued to the holder of a recorded claim pursuant to subsection (5) and representation work having a value in excess of the amount required by these Regulations is done on the claim by the holder in the year immediately following the period for which the certificate was issued, the excess amount of the work shall be included in calculating the value of representation work required to have been done in the period or periods for which the deposit was made and a portion of the deposit equivalent to the value of the excess work shall be returned to the holder of the claim.

• (10) Where a certificate is issued to the holder of a recorded claim pursuant to subsection (5) and the holder thereof

  • (a) fails to do representation work on the claim as required by these Regulations within the period specified in the certificate, or

  • (b) makes application for a lease of the claim,

  the security deposited with the Mining Recorder prior to the issuing of the certificate shall be deemed to have been forfeited to Her Majesty and, except for the purposes of section 58, the representation work required to be done on the claim in respect of which the certificate was issued shall be deemed to have been done.

• 45 (1) Subject to sections 80 to 82, where the holder of a recorded claim fails

  • (a) to comply with subsection 27(2),

  • (b) to file with the Mining Recorder the statement required by subsection 41(1) within the time fixed for the filing thereof,

  • (c) to obtain a certificate pursuant to subsection 44(3) or (5), as the case may be, before the expiration of 30 days after the anniversary date of the recording of the claim, or

  • (d) to apply for a lease within the time fixed by section 58,

  the Mining Recorder shall give written notice to the holder specifying the default and informing him that unless the default is remedied within 60 days from the date of the notice, the claim shall be deemed to have lapsed as provided in subsection (2).

• (2) Where the holder of a recorded claim fails, within 60 days from the date of a notice given to him pursuant to subsection (1), to remedy the default specified in that notice,

  • (a) the claim shall be deemed to have lapsed, without any declaration of cancellation or forfeiture on the part of Her Majesty; and

  • (b) the land within the claim shall be open for relocation under these Regulations after 12 o’clock noon on the day following the first business day following the expiration of the 60 days referred to in subsection (1).

46 Subject to sections 44 and 82, where there is an agreement between co-holders of a recorded claim as to the amount of representation work to be done by each of them and any one of those co-holders fails to do the amount of work he agreed to do, the Minister may, on receipt of an application and on being satisfied that the work has been done by the remaining co-holder or co-holders, vest the claim in the co-holder or co-holders.

Inspection

• 47 (1) An engineer of mines or an authorized officer may, at any reasonable time,

  • (a) enter on any claim or mine site and inspect the claim or mine site or records or books of account kept therein and may take samples or specimens of minerals or ores;

  • (b) require the operator of a mine to produce for inspection or for the purpose of obtaining copies thereof or extracts therefrom any records or books of account relating to the operation of the mine; and

  • (c) subject to subsection (2), require the holder of a recorded claim to provide him with copies of any plans, drill logs or reports of geological, geochemical, geophysical, engineering or other surveys relating to exploration, development or operation of the claim or any mine thereon.

• (2) Information relating to exploration results not filed as representation work shall be kept confidential until such time as it has been released to the public by the holder of the recorded claim or until the claim or lease lapses or is cancelled, whichever is the earlier.

• (3) Every authorized officer shall be furnished with a certificate of authorization and on entering any claim or mine site, or any premises or place described in subparagraph (1)(a)(ii), shall, if so required, produce the certificate to the owner or persons in charge thereof.

• (4) The owner or person in charge of any claim or mine site or any premises or place described in subparagraph (1)(a)(ii) and every person found therein shall give to an authorized officer all reasonable assistance in his power to enable the officer to carry out his duties and functions under these Regulations, and shall furnish him with such information with respect to the administration and enforcement of these Regulations as he may reasonably require.

• (5) No person shall obstruct or hinder an authorized officer in carrying out his duties and functions under these Regulations.

• (6) No person shall make a false or misleading statement either orally or in writing to an authorized officer engaged in carrying out his duties and functions under these Regulations.

• 48 (1) An engineer of mines may direct

  • (a) the holder of a recorded claim to carry out any mining work on the claim in a manner that does not interfere with or endanger the safety of the public, any public work, road or right-of-way, or any other mining property or recorded claim; and

  • (b) the owner of any abandoned mining work to have it filled in, fenced or otherwise made safe.

• (2) Every person who is directed to carry out any work pursuant to subsection (1) shall carry out that work without delay.

Lapsing and Surrender of Claims

• 49 (1) Subject to section 50, where a recorded claim lapses or is cancelled, the holder of the claim at the time it lapses or is cancelled shall not

  • (a) relocate or have any interest in the claim or any part thereof, or

  • (b) have the claim or any part thereof recorded in his name or in the name of any corporation controlled by him

  for a period of one year from the date that the claim lapsed or was cancelled.

• (2) Except as otherwise provided in these Regulations, where a recorded claim lapses or is cancelled, the claim or any part thereof shall be open for relocation under these Regulations after 12 o’clock noon on the day following the first business day following the day that the claim lapsed or was cancelled.

• 50 (1) Subject to subsection 27(2), where a recorded claim lapses or is cancelled, the holder of the claim may, if he is not under an obligation to pay any moneys to Her Majesty in respect of the claim, remove from the claim all his personal property, including any minerals or ore extracted from the claim, at any time within

  • (a) 180 days from the date that the claim lapsed or was cancelled; or

  • (b) such additional period, not exceeding one year, as the Mining Recorder may fix.

• (2) Any property described in subsection (1) that is not removed from a recorded claim within the time referred to in that subsection shall be deemed to be the property of Her Majesty.

• 51 (1) The holder of a recorded claim may, at any time, with the approval of the Supervising Mining Recorder surrender the claim for the purpose of relocating it by

  • (a) filing with the Mining Recorder a notice of surrender in Form 12 of Schedule III; and

  • (b) paying the applicable fee set out in Schedule I.

• (2) Where a recorded claim is surrendered in accordance with subsection (1), the date of surrender shall be the day following the day the notice of surrender is recorded by the Mining Recorder, unless a later day is specified in the notice.

• (3) Where a recorded claim is surrendered in accordance with subsection (1), the claim may not be located by or on behalf of any person other than the person surrendering the claim for a period of seven days from the date of surrender.

• (4) Where a recorded claim that is surrendered pursuant to subsection (1) is relocated by the person surrendering the claim within the time referred to in subsection (3), the claim shall, for the purposes of these Regulations, be deemed to be the same as the claim surrendered except for the location of the boundaries thereof.

Disputes

• 52 (1) In the case of a dispute as to entitlement to a claim, the person entitled to the claim shall be,

  • (a) in the case of a claim recorded in accordance with subsection 26(1), the person who first located the claim in accordance with the Yukon Quartz Mining Act, as that Act read before April 1, 2003, or under equivalent Yukon law regulating the disposition of quartz mining interests; and

  • (b) in the case of any other claim, the person who first located the claim in accordance with these Regulations.

• (2) In the case of a dispute as to entitlement to a claim, any irregularity that occurred before the date of the last certificate of work in respect of the claim shall not affect the title to the claim and unless fraud is proven the title shall be deemed to be valid up to the date of the last certificate of work.

• 53 (1) Where a notice of protest is filed with a Mining Recorder pursuant to subsection 28(1) or section 56, the Mining Recorder shall

  • (a) send a copy thereof, by registered mail, to the holder of the claim;

  • (b) investigate the allegations contained in the notice of protest;

  • (c) make a report of the allegations to the Supervising Mining Recorder; and

  • (d) send copies of the report made under paragraph (c) to each of the parties to the dispute.

• (2) Where, in the opinion of the Mining Recorder the circumstances so require, he may, before investigating the allegations contained in a notice of protest,

  • (a) require the person filing the notice to deposit with the Mining Recorder cash or other security satisfactory to the Mining Recorder in an amount fixed by the Mining Recorder; and

  • (b) in the case of a recorded claim, the recording of which is protested by a person claiming priority in locating the claim or any part thereof, have a survey of the claim made by a surveyor.

• (3) Where a person is required to deposit security under paragraph (2)(a), he may appeal to the Supervising Mining Recorder on the ground that the requirement for a deposit or the amount required to be deposited is unreasonable.

• (4) The cost of a survey of a recorded claim ordered by the Mining Recorder under subsection (2) shall be paid by such of the parties to the dispute as

  • (a) the Supervising Mining Recorder orders, or

  • (b) where the decision of the Supervising Mining Recorder is appealed, the Minister orders,

  or may be retained from any security deposited by the person filing a notice pursuant to paragraph (2)(a).

• (5) Where security is deposited under paragraph (2)(a) and the person making the deposit notifies the Mining Recorder of his abandonment of the dispute before it is heard by the Supervising Mining Recorder, the amount of the deposit shall be returned to the person, less the costs of any survey of the recorded claim ordered by the Mining Recorder incurred up to the time of the abandonment of the dispute.

• (6) The Supervising Mining Recorder shall, after considering the report of a Mining Recorder made under subsection (1) and hearing the parties to a dispute and such evidence as they may present, give a decision on the dispute in writing and shall send a copy of the decision to each of the parties to the dispute.

Surveys

• 54 (1) A survey required by these Regulations shall be made in accordance with the instructions of the Surveyor General.

• (2) Where a survey is required in the case of a group of adjacent recorded claims and the aggregate area, as appears in the applications to record, does not exceed 2,582.5 acres, a perimeter survey of the group of claims is acceptable as a survey for the purpose of these Regulations.

• (3) Before surveying a recorded claim, the Surveyor shall examine the application to record the claim and the plan accompanying the application.

• (4) In surveying a recorded claim, the Surveyor shall accurately mark the boundaries of the claim on the ground and shall examine the claim and the area surrounding it to ascertain whether it is in conflict with any other claim.

• (5) Where

  • (a) in the case of a recorded claim located prior to November 15, 1977, the area surveyed exceeds 51.65 acres,

  • (b) in the case of a recorded group of claims located prior to November 15, 1977, the areas surveyed exceed the product of 51.65 acres and the number of claims in the group, or

  • (c) in the case of a recorded claim or a group of claims located after November 15, 1977, the area surveyed exceeds that stated in the application or applications to record,

  a charge in respect of the excess area, at the rate of $2 per acre or part thereof for each year or part thereof from the date of recording the claim, shall be imposed.

• (5.1) Where the recording dates of the claims contained in a survey referred to in paragraph (5)(a) or (b) are not the same, the Mining Recorder shall determine the excess acreage charge by dividing the total excess area of the claims contained in the survey by the number of claims in the survey and multiplying the quotient for each claim by $2 per acre or part thereof for each year or part thereof from the date of recording.

• (6) A charge required under subsection (5) or (5.1) shall be reduced by the amount of excess representation work that has been done on the claim or group of claims.

• (7) A charge required under subsection (5) or (5.1) shall be paid by the holder of the claim or claims to the Mining Recorder for the district in which the claim or claims are located.

• (8) Where a recorded claim or group of claims has an excess area referred to in subsection (5) or (5.1), the holder of the claim or group of claims may

  • (a) include the excess area in the claim or group of claims; or

  • (b) direct the Surveyor to exclude the excess area.

• (9) Where a holder of a recorded claim excludes an excess area from his claim, the excluded area shall be open for relocation on a date fixed by the Mining Recorder.

• (10) A Mining Recorder shall give 30 days’ notice of the date fixed pursuant to subsection (9) by posting such notice in a conspicuous place in his office.

• 55 (1) On completion of a survey of a recorded claim, the Surveyor shall

  • (a) send to the Surveyor General

    • (i) a copy of the field notes made by the Surveyor,

    • (ii) a plan of survey signed by the Surveyor, and

    • (iii) a certificate in Form 13 of Schedule III; and

  • (b) send to the holder of the recorded claim

    • (i) a copy of the plan of survey, and

    • (ii) a certificate in Form 13 of Schedule III.

• (2) On receipt of a copy of the plan of survey of a recorded claim, the holder of the claim shall

  • (a) forward a notice in Form 14 of Schedule III, by registered mail, to all holders of adjacent claims at their addresses on record with the Mining Recorder;

  • (b) request the Mining Recorder to post a copy of the notice in the office of the Mining Recorder for a period of 21 consecutive days commencing on the day the holder complies with paragraph (a); and

  • (c) deposit a copy of the plan of survey with the Mining Recorder.

• 56 (1) A survey of a recorded claim may be protested by any person who has any interest in land that is contiguous to the claim and who alleges that such interest will be adversely affected if the plan survey is recorded pursuant to section 57

  • (a) at any time during the period referred to in paragraph 55(2)(b), or

  • (b) within 30 days thereafter

  by filing with the Mining Recorder a notice of protest in Form 4 of Schedule III.

• (2) Where a survey is protested pursuant to subsection (1), the protest shall be heard and determined in accordance with section 53.

• (3) A plan of survey of a recorded claim shall not be recorded by the Mining Recorder until the holder of the claim has paid the applicable fee set out in Schedule I and the Mining Recorder is satisfied that

  • (a) the requirements of section 55 have been complied with;

  • (b) the plan of survey has been approved by the Surveyor General; and

  • (c) any charge payable pursuant to subsection 54(5) has been paid.

57 A survey of a recorded claim made in accordance with these Regulations and recorded by the Mining Recorder is conclusive evidence, for all purposes of these Regulations, of the boundaries of the claim.

Leases

• 58 (1) The holder of a recorded claim may apply for a lease of the claim

  • (a) where no certificate respecting the claim has been issued under subsection 39(1), not later than 30 days after the 10th anniversary of the recording of the claim; or

  • (b) where a certificate respecting the claim has been issued under subsection 39(1), not later than 30 days after the common anniversary date next following the 10th anniversary of the original recording date of the claim.

• (2) The holder of a recorded claim shall be granted a lease of that claim by the Minister if

  • (a) the holder has submitted an application pursuant to subsection (1);

  • (a.1) his title to the claim is not disputed;

  • (a.2) where the holder has received a notice under subsection (5), he has complied with subsection (6);

  • (b) he has

    • (i) recorded representation work on the claim to a value of at least $10 per acre, or

    • (ii) undertaken to commence production on his claim;

  • (c) a survey of the claim has been recorded with the Mining Recorder;

  • (d) the applicable fee set out in Schedule I and the rental for the first year have been paid to the Mining Recorder; and

  • (e) an application for a lease in Form 15 of Schedule III has been filed with the Mining Recorder.

• (3) In calculating the value of representation work done on a recorded claim for the purposes of subsection (2), the Mining Recorder shall not include representation work of a kind described in paragraph 38(1)(d) having a value in excess of $2 per acre or of a kind described in paragraph 38(1)(e) having a value in excess of $2 per acre.

• (4) On receipt of an application for a lease, the Mining Recorder shall forward the application to the Chief who may

  • (a) notify the Minister that the requirements of subsections (1) and (2) have been met; or

  • (b) reject the application if the applicant has not complied with all the provisions of these Regulations.

• (5) Where the Chief rejects an application under subsection (4), he shall give written notice to the applicant stating the grounds for his rejection.

• (6) An applicant who receives a notice under subsection (5) may, within 60 days from the date of the notice or such longer period as the Chief may direct, submit evidence satisfactory to the Chief that he has complied with all the provisions of these Regulations.

• (7) Where an applicant referred to in subsection (6) does not submit evidence satisfactory to the Chief pursuant to that subsection and the 10th anniversary of the recording of the claim has passed,

  • (a) the applicant’s claim shall be deemed to have lapsed without any declaration of cancellation or forfeiture at the end of the applicable period referred to in subsection (6) and to have been forfeited to Her Majesty on that date; and

  • (b) the land comprised within the applicant’s claim shall be open for relocation under these Regulations after 12 o’clock noon on the day following the first business day at the end of such period.

• (8) [Repealed, SOR/88-9, s. 17]

• (9) The Chief shall notify the Mining Recorder of the granting of a lease of a recorded claim and of any assignment of that lease or of any interest therein.

• (10) to (12) [Repealed, SOR/88-9, s. 17]

• 59 (1) A lease granted pursuant to subsection 58(2) or (8) shall be for a term of 21 years from the date that is stated on the lease to be the effective date.

• (2) On the expiry of the term of a lease referred to in subsection (1), including a lease that has previously been renewed, the lessee may apply to the Minister for a renewal of the lease for a further term of 21 years and the Minister shall, on payment of the fee set out in Schedule I and subject to these Regulations, grant the renewal.

• (2.1) [Repealed, SOR/99-219, s. 4]

• (3) If a lessee does not apply for a renewal of a lease in accordance with subsection (2), the Minister may serve, by registered mail, a notice of expiry on the lessee and if the lessee fails to apply for a renewal of his lease within 60 days of the date of mailing of the notice, the lessee’s right to a renewal shall forthwith lapse without any declaration of cancellation or forfeiture.

• (4) A part of the area contained in a lease may, at the time of renewal under these Regulations, be surrendered on condition that

  • (a) the part to be surrendered comprises one or more entire mineral claims that were recorded before the coming into force of these Regulations, or

  • (b) if the part to be surrendered is a mineral claim recorded after the coming into force of these Regulations or part of such a mineral claim, the area contained in the lease is reduced in accordance with section 43, and

  the reduced area is surveyed in accordance with sections 54 to 57.

• 60 (1) Subject to subsection (2), the rent for a recorded claim for which a lease has been granted shall be the amount set out in Schedule I.

• (2) Where work of a kind described in paragraph 38(1)(a) has been done on a recorded claim for which a lease has been granted pursuant to these Regulations, there shall be deducted from the rent for that lease for the year in which the work was done and for any leases granted pursuant to these Regulations for adjacent recorded claims not exceeding five held by the same lessee, an amount equal to

  • (a) the amount expended on the work in that year as approved by the Minister, or

  • (b) 50 per cent of the rent owing on the lease or leases for that year,

  whichever is the lesser.

• (3) The yearly rent due under a lease shall be paid to the Chief on the date of signing of the lease and on every anniversary of the effective date thereafter.

• (4) The Chief shall, 30 days after the date on which the rent is due, send to each lessee who has not paid his rent for the year a notice in Form 16 of Schedule III stating the amount of rent due for the year.

• (5) Where the rent due under a lease of a recorded claim is not paid within 60 days from the date indicated on the notice sent pursuant to subsection (4), the Minister may cancel the lease.

• 61 (1) A lease of a recorded claim shall be in such form as the Minister may determine and contain such terms and conditions as may be prescribed by these Regulations and other applicable legislation.

• (2) A lessee may, at any time during the term of a lease, with the approval of the Chief, surrender his interest in the lease, and the area covered by the lease shall be open for relocation under these Regulations on a day fixed by the Chief.

• (3) Where a lease lapses or is cancelled,

  • (a) the area covered by the lease or any part thereof shall be open for relocation under these Regulations after 12 o’clock noon on the day following the first business day following the day that the lease lapsed or was cancelled; and

  • (b) the lessee, if he is not under an obligation to pay any moneys to Her Majesty in respect of the lease, may remove from the area covered by the lease all his personal property including any minerals or ore extracted from the claim at any time within

    • (i) 180 days from the date that the lease lapsed or was cancelled, or

    • (ii) such additional period, not exceeding one year, as the Mining Recorder may fix.

Transfer of a Claim or Lease

• 62 (1) Subject to subsections (4) and (5), a recorded claim or lease, or an interest therein, may be transferred to a licensee at any time.

• (2) A transfer of a lease shall be filed with the Chief together with

  • (a) the applicable fee set out in Schedule I; and

  • (b) the original lease.

• (3) A transfer of a recorded claim, or of any interest therein, shall be

  • (a) filed with the Mining Recorder of the mining district in which the claim is situated, in a form prescribed by the Minister under section 28 of the Act; and

  • (b) signed by the holder of the claim.

• (4) No lease, or any interest therein, may be transferred if rent owing under the lease is unpaid.

• (5) No recorded claim or lease that is part of a mining property, or any interest therein, shall be transferred if mining royalties are due and unpaid in respect of the mining property, unless security in the amount of the unpaid royalties has been deposited with the Minister.

• 63 (1) A Mining Recorder shall register

  • (a) every judgement or order relating to ownership of a claim or lease made by a judge of a court of competent jurisdiction, the Minister, the Supervising Mining Recorder or a Mining Recorder;

  • (b) against the recorded claims and leases that constitute a mining property or any interest therein, a notice of mining royalties due and unpaid for the amount of any mining royalties payable that have not been paid within 30 days after

    • (i) the delivery to the Chief of a mining royalty return in respect thereof, or

    • (ii) where a notice of assessment has been sent under subsection 67.2(1) or (2), the date of the notice of assessment, unless an application for review of the assessment has been made under section 84; and

  • (c) subject to subsection (2), on the payment of the applicable fee set out in Schedule I, every other document filed in relation to a claim or lease.

• (2) No notice of an express or constructive trust shall be registered against a recorded claim.

• (3) All persons shall be considered to have received notice of every document registered under subsection (1) as of the date of registration of the document.

• (4) A transfer of a recorded claim or lease, or any interest therein, is subject to all judgements, orders, liens and other encumbrances that were registered against the claim or lease, or any interest therein, at the time of registration of the transfer.

• 64 (1) For the purposes of these Regulations, the date on which a mine commences production is

  • (a) where the mine includes a mill or concentrator, the first day of the first 90-day period during which the mill or concentrator operates at an average of at least 60 per cent of its rated capacity; and

  • (b) where the mine does not include a mill or concentrator, the day the mine begins to produce minerals or mineral-bearing substances in reasonable commercial quantities.

• (2) For the purposes of these Regulations, a mineral or mineral-bearing substance shall be considered to be produced and part of the output of a mine if the mineral or mineral-bearing substance is in a saleable form or has been removed from the mine.

• (3) For the purposes of these Regulations, minerals or mineral-bearing substances produced from the reprocessing of tailings from a mine shall be considered to form part of the output of the mine.

• (4) For the purposes of these Regulations,

  • (a) where minerals or mineral-bearing substances that have been sold by an operator to a person not related to the operator are later sold to a person related to the operator, those minerals or mineral-bearing substances shall be considered to have been sold by the operator to a related person; and

  • (b) where minerals or mineral-bearing substances that have been sold by an operator to a person related to the operator are later sold to a person not related to the operator and evidence of that sale is provided, those minerals or mineral-bearing substances shall be considered to have been sold by the operator to a person not related to the operator.

• 65 (1) For each fiscal year, royalties shall be paid to Her Majesty in right of Canada by the owner or operator of every mine on lands referred to in subsection 3(1), on the value of the output of the mine during that fiscal year, in an amount equal to the lesser of

  • (a) 13% of the value of the output of the mine; and

  • (b) the amount calculated in accordance with the following table.

    TABLE

    	Column I	Column II
    Item	Value of output ($)	Royalty payable on that portion of the value
    1	10,000 or less	0
    2	in excess of 10,000 but not exceeding 5 million	5%
    3	in excess of 5 million but not exceeding 10 million	6%
    4	in excess of 10 million but not exceeding 15 million	7%
    5	in excess of 15 million but not exceeding 20 million	8%
    6	in excess of 20 million but not exceeding 25 million	9%
    7	in excess of 25 million but not exceeding 30 million	10%
    8	in excess of 30 million but not exceeding 35 million	11%
    9	in excess of 35 million but not exceeding 40 million	12%
    10	in excess of 40 million but not exceeding 45 million	13%
    11	in excess of 45 million	14%

• (2) Royalties payable under subsection (1) in respect of a mine accrue during a fiscal year as the output of the mine is produced and shall be paid to the Receiver General and delivered to the Chief not later than the last day of the fourth month after the end of that fiscal year.

• (3) Subject to paragraph 67.1(1)(b), Her Majesty may recover the entire amount of the royalties payable on a mine under subsection (1) from any person who was an owner or operator of the mine, or a person related thereto, during the fiscal year in respect of which the royalties were payable.

• (4) For the purposes of this section, the value of the output of a mine for a fiscal year shall be calculated in accordance with the formula

  A + B - C + D + E + F + G + H - I

  where

  A

  is the total of

  • (a) the proceeds from sales, during the fiscal year, of minerals or mineral-bearing substances produced from the mine to persons not related to the operator, where evidence of those sales is provided, and

  • (b) the market value of any minerals or mineral-bearing substances produced from the mine that were otherwise sold or transferred during the fiscal year, determined under subsection (5),

  B

  is the market value of any inventories of minerals or mineral-bearing substances produced from the mine, as at the end of the fiscal year, determined under subsection (5),

  C

  is the market value of any inventories of minerals or mineral-bearing substances produced from the mine, as at the beginning of the fiscal year, determined under subsection (5),

  D

  is the lesser of

  • (a) the amount of any payment received during the fiscal year that is related to a cost that has been claimed as a deduction or allowance under this section, and

  • (b) that cost,

  E

  is any excess amount referred to in paragraph 65.1(5)(b),

  F

  is any amount withdrawn during the fiscal year from a qualifying environmental trust established in respect of the mine, up to a maximum of the aggregate of the amounts contributed to the trust,

  G

  is any proceeds received during the fiscal year from insurance on minerals or mineral-bearing substances produced from the mine,

  H

  is the amount of any grants in respect of the mine that were made to the operator, or of any loans to the operator in respect of the mine that were forgiven, by the federal government during the fiscal year, and

  I

  is the total of the deductions and allowances claimed under subsection 65.1(1).

• (5) Subject to subsection (6), the market value of minerals or mineral-bearing substances sold or transferred to a person related to the operator, or to any other person where evidence of the proceeds of disposition is not provided, and of inventories of minerals and mineral-bearing substances, shall be

  • (a) in respect of precious or semi-precious stones, the maximum amount that would be expected to be realized from the sale of the stones on the open market, after sorting into market assortments,

    • (i) in respect of stones in inventory at the beginning or end of the fiscal year of the mine, as at that time, and

    • (ii) in any other case, as at the last time the stones were valued by the mining royalty valuer; and

  • (b) in respect of any other minerals or mineral-bearing substances, the amount that would be expected to be realized from the sale of those minerals or mineral-bearing substances, to a person who is not related to the operator,

    • (i) at the beginning or end of the fiscal year, where the value is calculated for opening or closing inventory purposes, and

    • (ii) at the time the minerals or mineral-bearing substances were shipped from the mine, where the value is calculated for any other purpose.

• (6) Where precious or semi-precious stones produced from a mine are to be sold to a person related to the operator of the mine,

  • (a) if the mining royalty valuer and the operator have agreed on a sample and price book for the period during which the valuation takes place and the mining royalty valuer and the operator agree that the stones have been sorted according to that sample, the value of the stones, including their value for inventory purposes, is the value as determined in accordance with the sample and price book; or

  • (b) if the mining royalty valuer and the operator agree on a value for the stones, the value of the stones, including their value for inventory purposes, is the agreed-on value.

• (7) Gains and losses from hedging transactions shall not be included in calculating the value of the output of a mine.

• 65.1 (1) In calculating the value of the output of a mine for a fiscal year, only the following deductions and allowances may be claimed:

  • (a) the costs, incurred during the fiscal year, of sorting, valuing, marketing and selling the minerals or mineral-bearing substances produced from the mine;

  • (b) the costs, incurred during the fiscal year, of insurance, storage, handling and transportation to the smelter, treatment plant or refinery or to market of, and any duties payable in respect of, the minerals or mineral-bearing substances produced from the mine;

  • (c) the costs, incurred during the fiscal year, of mining and processing ore or mineral-bearing substances from the mine or of reprocessing tailings from the mine;

  • (d) the costs, incurred during the fiscal year, of repair and maintenance at the mine;

  • (e) general and indirect costs incurred during the fiscal year for property, employees or operations at the mine that are not otherwise allocated to operating costs;

  • (f) exploration costs incurred during the fiscal year by an owner of the mine on land referred to in subsection 3(1), other than on the mining property, if those costs have not been otherwise claimed as an allowance or deduction under these Regulations, in an amount not exceeding 10 per cent of the value of the output of the mine multiplied by the owner’s share of that output, calculated

    • (i) after deduction of the costs referred to in paragraphs (a) to (e), and

    • (ii) before deduction of any depreciation allowance, qualifying environmental trust contribution allowance, development allowance or processing allowance;

  • (g) subject to subsection (5), a depreciation allowance, not exceeding the undeducted balance of the depreciable assets at the end of the fiscal year of the mine;

  • (h) a development allowance, determined by the operator, not exceeding the undeducted balance at the end of the fiscal year of the mine of

    • (i) exploration costs incurred, prior to the date of commencement of production, on the mining property as constituted on the date of commencement of production and not deducted under paragraph (f) in respect of any other mine,

    • (ii) all costs incurred for the purposes of bringing the mine into production, less the aggregate of

      • (A) the value of any minerals or mineral-bearing substances produced from the mining property that were sold or transferred prior to the date of commencement of production, calculated in accordance with section 65, and

      • (B) the market value of any minerals or mineral-bearing substances produced from the mining property that are in inventory on the date of commencement of production, calculated in accordance with subsection 65(5),

    • (iii) exploration costs incurred on the mining property after the date of commencement of production,

    • (iv) costs incurred after the date of commencement of production for workings designed for continuing use, including the clearing, removing or stripping of overburden from a new deposit at the mine, the sinking, excavation or extension of a mine shaft, main haulage way or similar underground work, the construction of an adit or other underground entry and the construction of a road or of tailings disposal structures at the mine, and

    • (v) where minerals or mineral-bearing substances are being produced in reasonable commercial quantities from a recorded claim or lease that was incorporated into the mining property after the date of commencement of production,

      • (A) where the claim or lease was purchased, the purchase price of the claim or lease or the amount referred to in clause (B), whichever is the lesser, or

      • (B) in any other case, the costs referred to in subparagraphs (i) and (ii) that were incurred on the incorporated claim or lease and that have not been previously claimed as a deduction or allowance under these Regulations;

  • (i) a qualifying environmental trust contribution allowance, determined by the operator, not exceeding the undeducted balance at the end of the fiscal year of amounts contributed to the qualifying environmental trust in respect of the mine; and

  • (j) if ore or mineral-bearing substances are processed by the operator of the mine prior to sale, an annual processing allowance equal to the lesser of

    • (i) subject to subsection (2), 8 per cent of the original cost of processing assets owned by the operator at the end of the fiscal year of the mine, and

    • (ii) 65 per cent of the value of the output of the mine, after deduction of the amounts referred to in paragraphs (a) to (i).

• (2) Where a mine is in production for less than 12 months in a fiscal year or a fiscal year of a mine is less than 12 months,

  • (a) the processing allowance shall be a percentage equal to 8 per cent multiplied by one-twelfth times the number of months in the fiscal year that the mine is in production or the number of months in the shortened fiscal year, as the case may be; and

  • (b) the amounts in column I of the table to subsection 65(1) shall be reduced by multiplying each amount by one-twelfth times the number of months in the fiscal year that the mine is in production or the number of months in the shortened fiscal year, as the case may be.

• (3) Where the operator of a mine claims a deduction for costs incurred in a transaction with a related person, the costs allowed as a deduction under this section shall be the amount of the actual costs incurred by the related person, exclusive of any profit, gain or commission to the related person or to any other related person.

• (4) A depreciation allowance may be claimed in respect of a depreciable asset in the fiscal year in which it is first used in the operations of the mine.

• (5) Where an operator disposes of, or receives insurance proceeds in respect of, assets for which a depreciation allowance has been claimed,

  • (a) the undeducted balance of depreciable assets shall be reduced by the lesser of

    • (i) the proceeds of disposition or insurance proceeds, as the case may be, and

    • (ii) the original cost of the asset; and

  • (b) where the lesser of the amounts referred to in subparagraphs (a)(i) and (ii) exceeds the undeducted balance of depreciable assets in the fiscal year in which the assets were disposed of, the excess shall be included in the value of the output of the mine for that fiscal year.

• (6) For the purposes of subsection (5), where the operator of a mine sells an asset for which a depreciation allowance has been claimed to a related person or removes the asset from the mine, the proceeds of disposition of the asset shall be the amount that could be expected to be realized from the sale of the asset to a person not related to the operator.

• (7) Where the operator of a mine purchases an asset that is eligible for a depreciation allowance from a related person or transfers to the mine an asset from another mine owned by the operator, the cost of the asset for the purposes of calculating a depreciation allowance is the amount that the operator could be expected to pay to purchase that asset from a person not related to the operator.

• (8) Where in a particular fiscal year the operator of a mine uses processing assets at a mine to process mineral or mineral-bearing substances produced at another mine,

  • (a) the revenue earned from the processing shall not be included in the value of the output of that mine;

  • (b) the deductions for the fiscal year for the mill operating costs and asset base used for the calculation of the processing allowance shall be reduced by a percentage equal to the proportion of the mill operating costs attributable to the processing of the minerals or mineral-bearing substances from the other mine in that fiscal year; and

  • (c) the depreciation allowance for depreciable assets involved in processing for the fiscal year shall be reduced by a percentage equal to the proportion of the mill operating costs attributable to the processing of the minerals or mineral-bearing substances from the other mine.

• (9) Where a deduction for a depreciation allowance in a fiscal year has been reduced pursuant to paragraph (8)(c), the undeducted balance of the depreciable assets of the mine that are eligible for a depreciation allowance for the fiscal year shall be reduced by the amount of the depreciation allowance claimed, before any reduction pursuant to that paragraph for the proportion of mill operating costs attributable to the processing of the minerals or mineral-bearing substances from the other mine.

• (10) Notwithstanding any other subsection of this section, no deduction or allowance shall be made in respect of a mine in relation to

  • (a) the capital cost of buildings, plant, machinery or equipment, other than under paragraph (1)(g);

  • (b) depletion in the value of the mine or mining property by reason of exhaustion of the ore or minerals;

  • (c) where an owner or the operator of the mine is a corporation,

    • (i) remuneration and travel costs of directors,

    • (ii) stock transfer agents’ fees,

    • (iii) the preparation of corporate financial statements, shareholders’ reports and shareholders’ meetings, and

    • (iv) legal, accounting and other costs incurred in connection with incorporations, reorganizations or security or stock issues;

  • (d) interest on any debt, including an overdraft, loan, mortgage, advance, debenture or bond, that is capitalized or expensed for accounting purposes;

  • (e) remuneration of executive officers, administrative and consulting costs and costs in respect of offices not located at the minesite, unless that remuneration or those costs are directly related to operations of the mine or to the marketing and selling of minerals or mineral-bearing substances produced from the mine;

  • (f) taxes on profits, property or capital, or payments in lieu of such taxes, paid to any level of government;

  • (g) royalties paid for the use of mining property or royalties calculated on revenue, production or profits of the mine;

  • (h) payments made to an organization, community or corporation, including an aboriginal organization, community or corporation, that are not attributable to the provision of goods and services directly related to the development and operation of the mine or to prospecting and exploration on land referred to in subsection 3(1);

  • (i) payments made for the use or lease of, or access to, the surface of the land on which the mine is located;

  • (j) discounts on bonds, debentures, shares or sales of receivables;

  • (k) increases in reserves or provisions for contingencies, other than in respect of a qualifying environmental trust;

  • (l) dues and memberships for persons other than employees involved in the operation of the mine;

  • (m) insurance premiums that are not applicable to minerals or mineral-bearing substances produced from the mine;

  • (n) costs incurred during the fiscal year to produce revenue that does not form part of the value of the output of the mine;

  • (o) subject to subparagraph 65.1(1)(h)(v), the purchase price of a recorded claim, a lease or a mine;

  • (p) the purchase price of any financial instrument;

  • (q) charitable donations;

  • (r) advertising costs not directly identified with the output of a particular mine; or

  • (s) any cost not evidenced in accordance with generally accepted auditing practices.

• 65.2 (1) A change in the ownership or of the operator of a mine does not affect

  • (a) the undeducted balance of the depreciable assets eligible for a depreciation allowance;

  • (b) the undeducted balance of the costs eligible for a development allowance;

  • (c) the undeducted balance of contributions to a qualifying environmental trust; or

  • (d) the original cost of the assets used for calculating a processing allowance.

• (2) Subject to paragraph 65.1(1)(h), where a recorded claim or lease lapses, is cancelled or is surrendered, any costs incurred in respect of that claim or lease that would otherwise be eligible for a development allowance expire and are no longer eligible for a development allowance in respect of any mine.

• 66 (1) Where in a particular year ore, minerals or mineral-bearing substances from a lease the gross value of which exceeds $100,000 are treated at a mine, removed from a mine, sold or otherwise disposed of, the lessee shall, within one month after the end of the year, deliver to the Chief a statement setting out

  • (a) the name and a description of the mine;

  • (b) the names and addresses of all owners, operators and other lessees of the mine;

  • (c) the name and address of a person to whom notices may be sent;

  • (d) the weight and value of ore, minerals or mineral-bearing substances treated at the mine, removed from the mine, sold or otherwise disposed of during the year and during each month of the year; and

  • (e) the design capacity of any mill, concentrator or other processing plant at the mine.

• (2) A lessee who has delivered a statement under subsection (1) shall forthwith notify the Chief of

  • (a) any change in the name and address of the person to whom notices may be sent; and

  • (b) any change in the ownership or of the operator of the mine.

• 67 (1) On or before the last day of the fourth month after the end of each fiscal year of a mine, including the fiscal year in which the mine commences production, and on or before the same day in each year after the mine ceases production until the mine is completely reclaimed, the operator of the mine shall deliver to the Chief a mining royalty return, on a form prescribed by the Minister under section 28 of the Act, setting out

  • (a) the name and a description of the mine;

  • (b) the name and address of the operator;

  • (c) the names of smelters, refineries or mills to which ore, mineral or mineral-bearing substances have been shipped from the mine for treatment;

  • (d) the weight of the minerals or mineral-bearing substances produced from the mine that were produced during the fiscal year of the mine;

  • (e) the weight and value of the minerals or mineral-bearing substances produced from the mine that were

    • (i) sold or transferred during the fiscal year of the mine to persons not related to the operator;

    • (ii) sold or transferred during the fiscal year of the mine to persons related to the operator;

    • (iii) in inventory at the beginning of the fiscal year of the mine, and

    • (iv) in inventory at the end of the fiscal year of the mine;

  • (f) any costs, deductions and allowances claimed under subsection 65.1(1);

  • (g) where exploration costs are claimed as a deduction under paragraph 65.1(1)(f), or where costs are included in the costs eligible for development allowance under paragraph 65.1(1)(h), the recorded claims or leases on which those costs were incurred;

  • (h) in respect of depreciable assets,

    • (i) the undeducted balance of depreciable assets at the beginning of the fiscal year,

    • (ii) the cost of additions during the fiscal year to depreciable assets,

    • (iii) the proceeds from the disposition during the fiscal year of depreciable assets,

    • (iv) the undeducted balance of depreciable assets at the end of the fiscal year prior to deduction of a depreciation allowance,

    • (v) the undeducted balance of depreciable assets at the end of the fiscal year after deduction of a depreciation allowance, and

    • (vi) the original cost of depreciable assets disposed of during the fiscal year;

  • (i) in respect of development allowances,

    • (i) the undeducted balance at the beginning of the fiscal year of costs eligible for a development allowance,

    • (ii) where the return is filed for the first fiscal year of the mine, the amount of the costs identified in subparagraphs 65.1(1)(h)(i) and (ii),

    • (iii) the amounts of each of the costs identified in subparagraphs 65.1(1)(h)(iii) to (v) incurred during the fiscal year,

    • (iv) the undeducted balance of costs eligible for a development allowance at the end of the fiscal year prior to deduction of a development allowance, and

    • (v) the undeducted balance of costs eligible for a development allowance at the end of the fiscal year after deduction of a development allowance;

  • (j) in respect of any qualifying environmental trust for the mine,

    • (i) the total of all amounts contributed to the qualifying environmental trust,

    • (ii) the undeducted balance of contributions to the qualifying environmental trust at the beginning of the fiscal year,

    • (iii) the amounts contributed to the qualifying environmental trust during the fiscal year,

    • (iv) the undeducted balance of contributions to the qualifying environmental trust at the end of the fiscal year prior to any deduction of a qualifying environmental trust contribution allowance,

    • (v) the undeducted balance of contributions to the qualifying environmental trust at the end of the fiscal year after deduction of a qualifying environmental trust contribution allowance, and

    • (vi) the total of all amounts withdrawn from the qualifying environmental trust during the fiscal year and in previous fiscal years;

  • (k) in respect of processing assets,

    • (i) the original cost of the processing assets at the beginning of the fiscal year,

    • (ii) the original cost of any new processing assets added to the mine during the fiscal year,

    • (iii) the original cost of any processing assets that were substituted for other processing assets of the mine during the fiscal year,

    • (iv) the original cost of any processing assets for which other processing assets were substituted during the fiscal year,

    • (v) the original cost of any processing assets not used, sold, discarded or otherwise disposed of during the fiscal year, and

    • (vi) the original cost of the processing assets at the end of the fiscal year;

  • (l) any payment received during the fiscal year that is related to a cost that has been claimed as a deduction or allowance; and

  • (m) any amount by which the proceeds of disposition of assets for which a depreciation allowance has been claimed exceed the undeducted balance of depreciable assets at the end of the fiscal year in which the assets were disposed of.

• (2) Every mining royalty return shall be

  • (a) accompanied by the financial statements for the mine or, where the mine has no financial statements, the financial statements of the operator of the mine, and a reconciliation of those financial statements to the mining royalty return; and

  • (b) signed and include a statement under oath or solemn affirmation by the operator of the mine or, where the operator of the mine is a corporation, by an officer of the corporation, that the financial statements are to that person’s knowledge and belief complete and correct.

• 67.1 (1) Where a mine is operated as a joint venture and each member of the joint venture takes its share of the output of the mine in kind and sells that share separately from the other members of the joint venture to different purchasers

  • (a) each member may deliver to the Chief a separate mining royalty return for the royalty payable under subsection 65(1) on the value of its share of the output of the mine, in lieu of including that information in a return delivered under subsection 67(1); and

  • (b) each member, and any person related to that member, is liable to pay only those royalties attributable to that member’s share of the output of the mine.

• (2) Where, pursuant to subsection (1), more than one member of a joint venture delivers a mining royalty return to the Chief for a single mine,

  • (a) each member of the joint venture shall be considered to be a separate operator for the purposes of these Regulations;

  • (b) each member shall indicate on the mining royalty return the percentage of the output of the mine represented by that mining royalty return;

  • (c) the value of the output on the mining royalty return for each member shall be calculated in accordance with section 65 using

    • (i) in respect of costs eligible for deductions under paragraphs 65.1(1)(a) to (e),

      • (A) a percentage of costs that have been jointly incurred equal to the percentage of the output of the mine received by that member, and

      • (B) the costs that have been incurred by that member alone,

    • (ii) in determining a deduction for exploration costs under paragraph 65.1(1)(f), the exploration costs incurred by that member,

    • (iii) a depreciation allowance based on

      • (A) a percentage of the depreciable assets of the mine that are jointly held equal to the percentage of the output of the mine received by that member, and

      • (B) the depreciable assets of the mine held by the member alone,

    • (iv) a development allowance based on

      • (A) a percentage of the costs referred to in subparagraphs 65.1(1)(h)(i) to (v) that were incurred jointly, equal to the percentage of the output of the mine received by that member, and

      • (B) the costs referred to in subparagraphs 65.1(1)(h)(i) to (v) incurred by that member alone,

    • (v) a qualifying environmental trust contribution allowance based on a percentage of the amounts contributed to a qualifying environmental trust for the mine equal to the percentage of the output of the mine received by that member, and

    • (vi) a processing allowance based on

      • (A) a percentage of the processing assets of the mine that are jointly held equal to the percentage of the output of the mine received by that member, and

      • (B) the processing assets of the mine held by that member alone;

  • (d) the amounts in column I of the table to subsection 65(1) shall be adjusted by multiplying each amount by a percentage equal to the percentage of the output of the mine received by that member; and

  • (e) each mining royalty return shall be based on the same fiscal year.

• 67.2 (1) Within six years after the end of a particular fiscal year of a mine, the Chief shall send to the operator of the mine a notice of assessment of royalties payable for that fiscal year.

• (2) The Chief may at any time send a notice of reassessment for the amount of the royalty payable for a fiscal year in respect of a mine if the operator or other person delivering a mining royalty return has made a fraudulent or negligent misrepresentation in completing the mining royalty return or on supplying any other information under section 67 or 67.1.

• (3) Where the Chief sends an operator a notice of assessment or reassessment for the amount of royalty payable for a fiscal year, the amount of royalty assessed or reassessed for the fiscal year shall be considered to have been payable on the last day of the fourth month after the end of that fiscal year.

• (4) Where the ownership of a mine changes, the operator may file a separate mining royalty return for the portion of the fiscal year before the change of ownership and the portion of the fiscal year after the change of ownership, and each such portion shall be considered to be a fiscal year of less than 12 months for the purposes of subsection 65.1(2).

• 68 (1) Every operator of a mine shall keep at an office in Canada and make available to the Chief to substantiate information required on mining royalty returns, records, books of account and other documents evidencing

  • (a) the weight and value of all ore, minerals or mineral-bearing substances produced from the mine, sold by the operator or processed at the mine;

  • (b) the returns from the smelter, mill or refinery and any other returns of amounts derived from the sale of ore, minerals or mineral-bearing substances;

  • (c) the costs, payments, allowances and other deductions referred to in section 65.1;

  • (d) financial statements of each owner and the operator;

  • (e) where the financial statements of an owner or operator of the mine are audited by an external auditor,

    • (i) the audited financial statements and the accompanying signed audit opinion of the external auditor, and

    • (ii) any working papers and documentation prepared by the external auditor that are in the possession of the operator or owner;

  • (f) any documents filed by an owner or the operator with a stock exchange or securities commission; and

  • (g) any other information necessary for ascertaining the amount of royalty payable under section 65.

• (2) No person shall disclose information of a confidential nature acquired for the purposes of sections 65 to 69, except

  • (a) to the extent necessary to determine the amount of royalties payable under section 65;

  • (b) where required under a land claims agreement referred to in section 35 of the Constitution Act, 1982; or

  • (c) under an agreement entered into by the Minister for the purpose of the administration of section 65 with the government of a country, province or state, or with an aboriginal organization owning mineral rights, under which the officers of that government or aboriginal organization are provided with the information and the Chief is provided with information from the government or aboriginal organization.

• 69 (1) No ore, minerals or mineral-bearing substances produced from a mine, other than precious or semi-precious stones, shall be removed from the mine, other than for assay or testing purposes, until the weight and any other information necessary to establish the value thereof has been ascertained and entered in the books of account referred to in subsection 68(1).

• (2) No precious or semi-precious stones shall be removed from a mine, other than for assay or testing purposes, or sold until they have been valued by a mining royalty valuer.

• (3) The operator of a mine shall provide in the Territories any facilities and equipment, other than computer equipment, necessary for a mining royalty valuer to value any precious or semi-precious stones produced from the mine.

• (4) For the purposes of these Regulations, facilities within the Territories that are provided for valuation by a mining royalty valuer of precious or semi-precious stones produced from a mine shall be considered to be part of the mine and any transfer of such stones from one part of a mine to another shall not be considered to constitute removal from the mine.

• (5) Where any part of the output of a mine consists of precious or semi-precious stones, no stones shall be sold or removed from the mine until the operator of the mine has cleaned the stones so as to remove all substances from the stones that are not part of the stones.

• (6) As soon as any precious or semi-precious stones have been processed into a saleable form, they shall be made available to a mining royalty valuer for valuation.

• (7) Where the operator of a mine that produces precious or semi-precious stones transfers or sells those stones to persons who are not related to the operator and to persons who are related to the operator, the operator shall make available to a mining royalty valuer, for separate valuation prior to their transfer or sale, all stones that are to be transferred or sold to a person related to the operator.

• (8) For the purposes of subsections (6) and (7), unless otherwise agreed on by the operator and the mining royalty valuer, an operator shall

  • (a) in respect of diamonds with a weight of more than 10.8 carats, make the diamonds available to the mining royalty valuer individually and provide the weight and the operator’s estimate of the value of each diamond;

  • (b) in respect of diamonds with a weight of from 1.8 carats to 10.8 carats, make the diamonds available to the mining royalty valuer in lots separated according to carats, and provide the number of diamonds per lot and the operator’s estimate of the value of each lot;

  • (c) in respect of diamonds with a weight of from 3 grainers to less than 1.8 carats, make the diamonds available to the mining royalty valuer in lots separated according to weight in grainers, from which a randomly selected sample, accurately representing the composition of the lot, has been separated, and provide the operator’s estimate of the value of each lot; and

  • (d) in respect of diamonds with a weight of less than 3 grainers, make the diamonds available to the mining royalty valuer in lots separated according to sieve size, from which a randomly selected sample, accurately representing the composition of the lot, has been separated, and provide the operator’s estimate of the value of each lot.

Locating on Occupied Lands

• 70 (1) Where a locator wishes to enter, prospect for minerals, locate or have a claim located for him on land that has been granted or leased to a surface holder, the locator may file with the Mining Recorder a notice in Form 19 of Schedule III of his intention to locate, or have located for him, a claim on the land or part thereof described in the notice.

• (2) Where the surface holder of any land referred to in subsection (1) refuses entry thereon to a locator or a person acting on his behalf, or sets terms and conditions of entry that the locator considers unreasonable, the locator may file with the Mining Recorder a notice referred to in subsection (1).

• (3) Where a locator files a notice referred to in subsection (1), no claim may be located on the land described in the notice by any person other than the locator or a person acting on his behalf for a period of one year from the day of the filing of the notice or until such time as the notice is withdrawn by the locator or ordered removed by the Supervising Mining Recorder pursuant to subsection 71(4), whichever is the earlier.

• (4) Where a locator or person acting on his behalf locates a claim on land referred to in subsection (2) and

  • (a) wishes to enter on his claim or any part thereof in order to prospect for or develop a mine thereon, and

  • (b) the surface holder refuses entry or sets terms and conditions of entry that the locator considers unreasonable,

  the locator may file with the Mining Recorder a notice in Form 19 of Schedule III of his intention to prospect for minerals or develop a mine on the land or part thereof that is described in the notice.

• 71 (1) As soon as possible after the filing of a notice referred to in subsection 70(1), (2) or (4), the Mining Recorder shall attempt to effect a settlement of the dispute between the locator and the surface holder.

• (2) If a Mining Recorder is unable to effect a settlement between a locator and a surface holder within 30 days after the filing of a notice referred to in subsection (1), he shall make a report to the Supervising Mining Recorder who shall immediately notify the parties to arbitrate.

• (3) On receipt of a notice to arbitrate from the Supervising Mining Recorder each of the parties named therein shall, within 15 days from the date of such notice, appoint one arbitrator and the arbitrators so appointed shall, as soon as practicable, appoint a third person to be chairman of the panel of arbitration.

• (4) Where a locator who has received a notice to arbitrate from the Supervising Mining Recorder fails to appoint an arbitrator within the time fixed by subsection (3), the Supervising Mining Recorder may order the notice filed pursuant to subsection 70(1) or (2) removed from the records of the Mining Recorder.

• (5) Where

  • (a) a surface holder who has received notice to arbitrate fails to appoint an arbitrator within the time fixed by subsection (2), or

  • (b) the two arbitrators appointed pursuant to subsection (3) cannot agree on the appointment of a chairman,

  the Supervising Mining Recorder may appoint a person to be the representative of the surface holder on the panel or the chairman of the panel, as the case may be.

• 72 (1) The persons appointed to a panel of arbitration pursuant to section 71 shall

  • (a) determine the extent to which and the terms and conditions on which the locator may enter on the land owned or leased by the surface holder;

  • (b) determine the amount of compensation to be paid to the surface holder by the locator;

  • (c) determine the cost of the arbitration and the portions thereof to be paid by the surface holder and the locator, respectively; and

  • (d) file a written report of their findings and recommendations with the Supervising Mining Recorder.

• (2) In determining the extent to which the locator or a person acting on his behalf is to be allowed entry on the surface holder’s land, a panel of arbitration may, before determining the amount of compensation to be paid to the surface holder, make a preliminary report to the Supervising Mining Recorder recommending the extent to which and the terms and conditions on which such entry should be allowed.

• (3) Where a report of a panel of arbitration recommends that the locator be allowed entry on the land or part thereof owned or leased by the surface holder, the Supervising Mining Recorder shall make an order authorizing entry by the locator on the land or part thereof specified in the order.

Prohibitions and Reservations

• 73 (1) Where the holder of a recorded claim, the owner, operator, lessee or manager of a mine or any employee or agent of any such person discharges or causes to be discharged from his claim or from any mining operation thereon any substance that, in the opinion of the Minister, is or is likely to be harmful to humans, animals or vegetation, the Minister may, by order in writing, require that person

  • (a) to treat the substance before it is discharged so that it is not discharged in a form harmful to humans, animals or vegetation;

  • (b) to limit the discharge of the substance in such manner as the Minister may order; or

  • (c) to cease all operations causing such discharge.

• (2) No person shall prospect, perform representation work on a claim or deposit earth, clay, stone or any mineral ore or mine tailings on any claim except

  • (a) in accordance with

    • (i) any Act of Parliament, or

    • (ii) these Regulations or any other regulations made pursuant to the Territorial Lands Act; or

  • (b) with the approval of an engineer of mines and in accordance with such terms and conditions as he may fix.

• 74 (1) Except as provided in subsection (2), no person shall drill a hole in post-precambrian sedimentary rock to a depth in excess of 500 feet unless he

  • (a) applies to an engineer of mines for a drilling authority; and

  • (b) complies with the terms of any drilling authority issued by the engineer of mines respecting the safety precautions to be followed in the event that hydrocarbons are encountered.

• (2) Where a drilling authority has been issued to a person to drill a hole pursuant to subsection (1) and no hydrocarbons have been encountered in drilling the hole, a second hole may be drilled by that person under the drilling authority if the second hole is within one mile of the first hole and does not exceed it in depth.

• (3) No person shall abandon a hole in respect of which a drilling authority has been issued unless he files a notice of abandonment with an engineer of mines and complies with his requirements in respect of abandonment.

• (4) No person shall begin any drilling program unless he has notified the engineer of mines thereof.

• (5) A person who carries out a drilling program shall, at the end of each month, file a report to the engineer of mines in Form 20 of Schedule III showing the number of holes and the footage drilled in the program during that month.

• (6) Every report filed pursuant to subsection (5) shall not, if requested by the holder of the claim to which the report relates, be open to public inspection for a period of three years from the date on which the report is filed or until the claim lapses, whichever is the earlier.

• (7) No copy of a report referred to in subsection (6) shall be issued to any person except the holder of the claim to which the report relates except for the purpose of the administration or enforcement of these Regulations.

• 75 (1) Nothing contained in these Regulations shall be construed so as to limit the right of Her Majesty or of the Commissioner of the Territories to construct and maintain roads or other public works on or over the land comprised in any recorded claim.

• (2) The Chief may grant authority to any person to lay out rights of way for electrical transmission or telecommunication lines across, through, along, over or under any mining property acquired under these Regulations together with full right to enter upon the property or such portion thereof as the Chief deems necessary for the construction, maintenance and repair of such lines.

• (3) Compensation shall be paid to the owner of a mining property for any damage or loss sustained by reason of any entry on the property for the purpose set out in subsection (2).

• (4) In case of any dispute respecting the compensation referred to in subsection (3), the amount thereof shall be determined by the Minister.

76 [Repealed, SOR/88-9, s. 25]

• 77 (1) Where a person holds a licence continuously for 25 years and submits to a Mining Recorder a sworn declaration to that effect, he shall be entitled to an honorary licence free of charge for the next subsequent year.

• (2) Any person who has been granted an honorary licence pursuant to subsection (1) shall be entitled, on application to a Mining Recorder in each subsequent year, to an honorary licence free of charge for that year.

78 [Repealed, SOR/97-117, s. 4]

79 Any affidavit made under these Regulations may be taken before a Mining Recorder or any person duly authorized to administer oaths.

• 80 (1) Where the holder or a co-holder of a recorded claim for which no lease has been granted dies or is declared by a court of competent jurisdiction to be incapable of managing his affairs and notice thereof, satisfactory to the Mining Recorder, is filed with the Mining Recorder within 90 days of the date of such death or declaration, calculation of the time within which any thing is required by these Regulations to be done by such holder or co-holder with respect to that claim shall be suspended for a period commencing with the day of the death or of the declaration and ending on the third anniversary of such day or on the 30th day from the day the claim or interest therein is transferred to the person administering the estate of such holder or co-holder, whichever is the earlier.

• (2) Where, prior to the filing with the Mining Recorder of the notice mentioned in subsection (1), land included in a recorded claim in which a person described in subsection (1) has an interest has been located in accordance with these Regulations by a locator who, in good faith, thought the claim had lapsed or been abandoned, the Mining Recorder may, on being satisfied that the administrator of the estate of that person has, within the time fixed by the Mining Recorder, paid an amount to the locator equal to the costs incurred by the locator in locating the claim, cancel the recording of the claim in the name of the locator and record the claim in the name of the administrator.

• 81 (1) Notwithstanding anything in these Regulations, where a lessee, permittee or holder of a mineral claim is prevented through circumstances beyond his control from fulfilling any requirement of these Regulations, the lessee, permittee or holder may apply to the Chief for an order granting whatever relief is necessary in the circumstances to maintain the lease, permit or claim in good standing for the period within which fulfilment of the requirement is prevented.

• (2) On receipt of an application under subsection (1), the Chief may grant such relief as he deems necessary in the circumstances.

• (3) Notwithstanding any relief granted by the Chief under subsection (2), the Chief may order the lessee, permittee or holder of a mineral claim to commence and diligently continue to fulfill a requirement referred to in subsection (1) that is necessary to keep the lease, permit or claim in good standing where, in his opinion, the circumstances that prevented the requirement from being fulfilled no longer exist and any period of suspension granted under subsection (1), as shortened by an order under this subsection, shall be added to the term or period of the lease, permit or claim for the purposes of determining compliance with the requirements of these Regulations.

• (4) Any relief granted or order made by the Chief under this section shall be recorded in the records of the Mining Recorder or of the Chief, whichever records are relevant.

82 Where, as a result of a strike within the meaning of the Public Service Staff Relations Act, the holder of a recorded claim is unable to do anything within the time required by these Regulations and the Minister is satisfied that such inability is not in any way the fault of the holder of the claim, the time within which anything is required to be done shall be extended for a period ending 15 days after the last day of the strike.

Notice

83 For the purposes of these Regulations, written notice shall be deemed to be given by the Mining Recorder, Chief or Minister, as the case may be, to the holder of a recorded claim, when the notice is sent by registered mail to the holder at his address as shown in the records of the Mining Recorder.

Review by the Minister

• 84 (1) Any person with a legal or beneficial interest in the subject matter of an order, decision or direction made, or any other action taken or omitted to be taken, under these Regulations by the Supervising Mining Recorder, a Mining Recorder, the Chief, a mining royalty valuer or an engineer of mines may, within 30 days after the making of the order, decision or direction or the taking of the action or, in the case of an omission to take action, within 30 days after the action should have been taken, request in writing that the Minister review the matter.

• (2) On receipt of a request under subsection (1), the Minister shall

  • (a) request, from the applicant or any other person, any documents, further particulars or written argument necessary to determine the matter;

  • (b) review the matter or conduct a hearing into the matter;

  • (c) either

    • (i) confirm the order, decision, direction or action in question, or

    • (ii) substitute a different order, decision, direction or direct that a different action be taken; and

  • (d) advise the applicant in writing of his or her decision, and the reasons therefor.

Transitional

• 85 (1) In this section, “prior claim” means any mineral claim acquired before November 15, 1977 under

  • (a) the Northwest Territories Quartz Mining Regulations,

  • (b) the Northwest Territories Placer Mining Regulations, or

  • (c) the Canada Mining Regulations made by Order in Council P.C. 1960-717 of May 26, 1960,

  and in good standing on November 15, 1977.

• (2) Subsections 27(2) and 58(1) do not apply to prior claims.

• (3) Notwithstanding subsection 38(2), a certificate of work issued in respect of a prior claim shall remain in force for the full period for which it was issued and no further certificate of work or extension shall be issued for that claim except for the purposes of subsection 54(6).

• 86 (1) In this section, prior lease means any lease issued before November 15, 1977 under

  • (a) the Northwest Territories Quartz Mining Regulations,

  • (b) the Northwest Territories Placer Mining Regulations, or

  • (c) the Canada Mining Regulations made by Order in Council P.C. 1960-717 of May 26, 1960,

  and in good standing on November 15, 1977 and includes a prior claim as defined in section 85 in respect of which a lease has been issued under these Regulations or the Canada Mining Regulations made by Order in Council P.C. 1961-325 of March 3, 1961.

• (2) Nothing in these Regulations shall be construed as prejudicing the rights of holders of prior leases or prior claims.

• (3) Subsections 59(2) and 60(2) do not apply to prior leases.

• (4) Notwithstanding anything contained in these Regulations but subject to subsections (5) and (6), on the expiration of the term of a prior lease the holder of the lease may apply to the Minister for a renewal of the lease for a further term of 21 years and the Minister may, if the holder of the lease has complied with the terms and conditions of the lease, grant the renewal of the lease.

• (5) On the renewal of a prior lease under subsection (4), the renewed lease is subject in all respects to these Regulations, other than subsection 60(2), as if the lease has been renewed under subsection 59(2).

• (6) If the holder of a prior lease does not apply for a renewal thereof under subsection (4), the Minister may send a notice of expiry to the holder of the lease by registered mail and if the holder of the lease fails to apply for a renewal of the lease within 60 days of the date of the registration of the notice, all rights of the holder of the prior lease in respect thereof terminate forthwith without any declaration of cancellation or forfeiture.

• 87 (1) Subject to sections 85 and 86, all licences, mineral claims and leases issued or granted prior to November 15, 1977 and in good standing on November 15, 1977 shall be deemed to have been issued or granted under these Regulations.

• (2) Notwithstanding subsections 24(1) and (3) and section 25, but subject to subsection (3), a claim recorded prior to the coming into force of these Regulations shall be deemed to be recorded under section 24 if the holder of the claim complies or agrees to comply with section 38 and thereafter all provisions of these Regulations shall apply to such claim.

• (3) A claim deemed to be recorded under subsection (2) is subject to the rights of any recorded owner or any person entitled to record a claim in the area covered by the claim.

88 Any person who has staked a claim or claims in accordance with the former regulations or as nearly thereto as circumstances would permit, and has submitted an application to record his claim within the time prescribed by such regulations, but whose claim has not been recorded, may have his claim recorded pursuant to these Regulations if

• (a) he satisfies the Mining Recorder that

  • (i) a bona fide attempt was made to comply with the former regulations, and

  • (ii) the failure to observe any of the requirements therein prescribed was not of such a character as to mislead other persons; and

• (b) he complies, within a reasonable time, with such requirements of these Regulations as the Mining Recorder deems necessary.

89 The fee set out in column II of an item in Schedule I is the fee to be paid for a licence, service, certificate or permit set out in column I of the item.