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Frequently Asked Questions
- What do the assessment work regulations state?
- Who can distribute banked assessment work credits?
- What is required to distribute assessment work credits?
- When can you distribute banked assessment work credits?
- Where can I file the distribution of banked assessment work credits?
- Is there a fee for filing the application?
- Do the banked credits automatically get applied on the anniversary date of the mining claim?
- Are there any restrictions or limitations?
- What Mining Lands policies pertain to distributions of assessment work credits?
What do the assessment work regulations state?
Ontario Regulation 6/96 Assessment Work states:
"4.(5) At the request of the holder,
(a) the recorder shall bank and carry forward approved assessment work credits indefinitely; and
(b) banked assessment work credits may be applied against assessment work requirements for the unpatented mining claim on which they were earned or a contiguous unpatented mining claim, as provided in subsections 7.(1) and (2), for the current assessment year and up to a maximum of five subsequent assessment years.
4.(7) The banked amount is a credit in respect of the relevant mining claim even if the claim is transferred or leased but reverts to zero if the claim is forfeited or otherwise terminated."
Who can distribute banked assessment work credits?
The eligibility requirements to distribute banked assessment work credits are similar to those required to report assessment work. You must be either a recorded holder, have provided proof of beneficial interest, or are on record as having an option agreement on the property. The regulations state:
"7.(1) A person who is a holder of or has a beneficial interest in contiguous mining land, or who is an optionee of record of such land may perform on that land assessment work that is required to be performed on contiguous unpatented mining claims of which the person is a holder, in which the person has a beneficial interest or of which the person is an optionee of record at the time the assessment work is performed and reported.
7.(2) If, subsequent to assessment work having been performed as authorized under subsection (1), another person becomes a holder of the contiguous mining land and the contiguous unpatented mining claims, has a beneficial interest in such land and claims or becomes an optionee of record of such land and claims, that person,
(a) may report the assessment work performed on the mining land that has not been reported; and
(b) may assign that assessment work reported with respect to the mining land to the contiguous unpatented mining claims."
An agent or family member authorized in writing may also file the application.
What is required to distribute assessment work credits?
To distribute banked assessment work credits submit one copy of the following:
- Application to Distribute Banked Assessment Work Credits form (#0291)
- A legible contiguity sketch outlining the contiguous link between the claims (required if assigning credits to contiguous claims)
- Agent authorization letter (required if someone other than the recorded holder is filing the distribution and has not filed on their behalf before or is not on record at the Geoscience Assessment office as having filed before).
- Proof of beneficial interest or as having an option agreement on the property (if applicable).
Refer to the Application to Distribute Banked Assessment Work checklist for more detailed requirements.
When can you distribute banked assessment work credits?
Banked assessment work credits must be filed on or prior to the anniversary date of a mining claim.
One can distribute banked assessment work credits anytime after the assessment work report which contains the banked work credits has been "received" at the Geoscience Assessment office. Note however, where assessment work is not approved, a cutback of work could adversely affect the distribution being filed. Distributions of assessment work credits are entered, but not approved (posted) until the original work report has been approved. It is recommended that the distribution be filed after the original work report is approved.
Where can I file the distribution of banked assessment work credits?
The form may be filed at the Mining Lands Consultants' office for the mining division where the work was performed.
It may be sent by mail, courier, facsimile machine or hand delivered to the Geoscience Assessment office or the Provincial Recording office.
It may also be left at the drop-off box at the Resident Geologist or at certain Government Information offices for mining divisions without a Mining Lands Consultant.
Is there a fee for filing the application?
There is no fee for filing an Application to Distribute Banked Assessment Work Credits form if hand delivered, sent by mail, courier or faxed to the Geoscience Assessment Office.
Do the banked credits automatically get applied on the
anniversary date of the mining claim?
No, the banked credits are not automatically applied from the reserve. It is the responsibility of the recorded holder/optionee/beneficial interest holder to keep his/her mining claims in good standing. The application of banked assessment work credits form must be filed with the Geoscience Assessment Office by the required anniversary date.
Are there any restrictions or limitations?
There are some restrictions and limitations that apply to distributing banked assessment work credits.
- Claims receiving the credit must be on record at the time the original banked work was performed (includes the claims being linked through).
- The claims receiving the credit must be continuously contiguous with the claims where the banked credits are being withdrawn with no break in time or title (includes the claims being linked through).
- The banked amount may be applied against assessment work requirements for that claim or assigned to other contiguous mining claims, for the current year up to a maximum of five (5) subsequent years.
- The maximum allowable assignment per year, based on the anniversary date and the unit size of the claim from which assessment credits are being withdrawn, is $24,000 per claim unit up to a maximum of $96,000 (Assessment Regulation 7.(4)).
- Since 1991, assessment credits for work completed on leases and/or patents may be assigned to contiguous unpatented mining claims. The maximum allowable assignment for leases or patents, based on January 01 as the start of the assignment year, is $1,500 per hectare to a maximum of $96,000 (Assessment Regulation 7.(5)).
- If a group of mining claims containing a banked amount are transferred to a new holder, those banked credits may be assigned within the transferred contiguous group. If assigning outside of the transferred group, there must be proof of beneficial interest in the transferred contiguous mining land at the time the work was performed and through to the time the work is reported.
- A person who is the sole owner of a corporation cannot assign assessment work credits from mining lands held in the name of the corporation to or through mining claims that are held in the name of that person unless there is proof of a written beneficial interest/option agreement or trust in the contiguous mining land. The same applies for parent corporations assigning to claims held by a subsidiary of the corporation and for 2 corporations with the same president or chief executive officer.
What Mining Lands policies pertain to distributions of assessment
work credits?
- UC 701-2 Requirements to assign credits
- UC 701-3 Who can distribute credits (includes filing work done by a previous holder)
- UC 701-7 On mining land other than an unpatented claim
- UC 701-8 Example situations of apply, assign
- GA 810-5 Beneficial Interest - Corporations
The Mining Lands Internet site has other policies available for viewing.