News Focus
News Focus
icon url

Rick-UK

01/29/10 9:13 AM

#18849 RE: Popunjay #18840

How to Stake a Claim

The mineral claim or concession is the legal document that grants ownership over subsurface materials (in this case minerals). Every political entity in the world has a system for purchasing the claim and registering the ownership. In some jurisdictions the process is relatively simple and the title is defensible. In others it is laborious and the resultant title may or may not stand up to challenges. The prospector must be very careful to check the business and legal climate of the area he/she is working in.

With the increasing ability and desire of smaller personal and corporate entities to do business in increasingly remote parts of the world a competition between political entities has resulted in more secure legal frameworks in which to stake claims. If one country cannot demonstrate that a mineral claim properly registered can be defended, that country will see very little mineral exploration activity. And mineral exploration activity can lead to very lucrative tax receipts for the presiding government. The message is starting to get through.

How to Stake a Claim in Canada

In Canada, surface rights and mineral rights came with the purchase of land until some time in the early 1900s, depending on the jurisdiction. Since then, mineral rights have been government-owned and cannot be purchased, but only leased, by individuals or companies. As a result, the mineral rights on more than 90% of Canada’s land are currently owned by governments.

As per the Canadian Constitution, the regulation of mining activities on publicly owned mineral leases falls under provincial/territorial government jurisdiction. Thus, there is separate mining rights legislation for each of the thirteen Canadian jurisdictions except Nunavut which is regulated by the Department of Indian Affairs and Northern Development’s office based in the Northwest Territories.

In the Northwest Territories, British Columbia, Manitoba, Ontario, Quebec, New Brunswick and Nova Scotia, individuals and companies must obtain a prospector’s licence before engaging in exploration for minerals. In the Yukon, Alberta, Saskatchewan, PEI, and Newfoundland and Labrador, one can conduct prospecting or exploration activities without a licence, but must have a licence to actually acquire mineral rights (or "stake claims") so as to protect what one has discovered. In some jurisdictions, a special permit is required to obtain the right to fly an airborne geophysical survey over an area not covered by a mineral claim.

Mining claim units are normally 16 to 25 square hectares, with a maximum individual claim dimension varying from 256 to 500 hectares. But in some provinces, or in some areas of certain provinces, maximum claim dimensions can be much larger, especially where claims are registered by way of "map staking." Mining companies can circumvent maximum claim size limits for individuals by having more than one person stake claims for it. Individual prospectors then transfer ownership of the claims to the company.

"Map staking" is being developed and is gaining usage in provinces or regions of provinces where the territory is surveyed. Claims can then be recorded on a map directly at the mining recorders’ office without the prospector ever having visited the location on the ground. Elsewhere, claims must actually be marked out on the ground, using marked wooden corner posts and boundaries cut through the forest.

Prospecting licence fees and recording fees are imposed at variable rates across jurisdictions. In addition, a certain amount of assessment work must be done each year to keep claims in good standing. For example, all jurisdictions require that claim holders carry out geological mapping of their mineral holdings, a specified amount of diamond drilling, or a specified value of other work. Copies of geological maps, reports, drill logs and the like must be submitted to the mining recorder. They are kept for future access by any interested party, after the end of a confidentiality period that varies by province or territory.

Holders of claims in good standing must obtain a mining lease in order to proceed with the development of a property into a mine. Mining leases require that claim boundaries be surveyed by a Registered Land Surveyor. They are valid in most provinces/territories for 20 or 21 years and can be renewed. Some provinces impose certain conditions upon the renewal of mining leases (for example, the property must be the site of an active mine).

http://www.mineralprospector.com/canada