Exploration Expenditures Not Eligible For Assessment Work Credit

Section 3 of the Assessment Work Regulation, Ontario Regulation 6/96 describes the expenses which are eligible for assessment credit. Expenses incurred by the holder of mining land are eligible for assessment credit if they relate to work that is eligible. The regulation contains a list of expenses which are eligible. However, some expenses which a claim holder may incur are not eligible for assessment credit.

The following is a partial list of exploration expenditures not eligible for assessment work credit. Please note this is a partial list to be used as a guideline when filing assessment work and completing your statement of costs form. If you are not sure an exploration expenditure is amenable to assessment credit under Ontario Regulation 6/96, please contact the Geoscience Assessment Office.

Expenses Not Eligible For Assessment Work Credit:

• Assets (i.e., purchases of compass, tents, chainsaws, axes, GPS units, boats, ATVs etc.)
• Asset repairs (i.e., repairs to vehicles, snow machines, chainsaws, ATVs etc.)
• Site (property) visits including site visits by Resident Geologist
• Consulting Resident Geologist
• Writing/compiling Prospectus reports
• Compilation reports including reports determining reserves/resources, ore grade and tonnage calculations
• Environmental inspections
• Legal surveys to bring claims to lease
• Assessment work filed for credit after 60 months from the date of performance
• Claim staking, claim tags, claim recording
• Travel outside Ontario
• Movement of equipment and personnel outside Ontario
• Wages for recorded holder and or contractor/consultant during mobilization and demobilization
• Management/consultant fees, unless to generate/write report
• Native consultation unless it is tied into the field work
• The establishment and maintenance of any structure on the property (i.e., core shack, permanent exploration camps etc.)
• Government fees
• Publications (i.e., geological books, claim maps, etc.)
• Road building and snow ploughing (Policy UC 703-9, Road building, road maintenance and snow ploughing are not eligible for assessment work credit. Construction of a trail is considered an eligible expense and winter roads are not considered trails.)
• Work performed on quarry permits where the work is not performed for exploration purposes (i.e., costs associated with site plan requirements under the Aggregate Resources Act, stripping, trenching, blasting, crushing, etc. associated with pre-production work, construction of pads, access roads and berms.)
• Mileage costs for travel over $0.40 kilometre unless supported by expense verification
• Prospecting rate over $150/day unless supported by expense verification
• Monies paid out for fines or penalties under any court order