Geoscience Investments Support Mineral Exploration
Government geoscience supports mineral exploration in three important ways:
- Allows companies to identify areas with favourable mineral potential. Mineral exploration can be likened to looking for a needle in a haystack. Public geoscience identifies the haystacks by improving regional geological understanding.
- Increases exploration efficiency by minimizing the duplication of effort by individual companies and channelling exploration investment towards the most prospective areas.
- Increases exploration effectiveness by providing the information required for informed, risk-based decision-making and by allowing companies to identify exploration targets in a cost-effective manner.
Researchers estimate that every dollar invested in a basic geological survey triggers five dollars in exploration spending by the private sector and that each dollar spent by government on pre-competitive geosciences leads to the discovery of in-situ resources worth between $100 and $150.
Impacts of the Geo-mapping for Energy and Minerals Program
Canada’s Geo-mapping for Energy and Minerals Program
(GEM) provides modern, regional-scale, geological knowledge of Canada’s north. Between 2008 and 2012, eight GEM mineral projects generated considerable staking activity and $16.7 million in mineral exploration expenditures. Over the long run, the GEM program is expected to stimulate over $500 million in exploration expenditures, with potential future mineral discoveries at $12 billion.
Public Geoscience is the Lifeblood of Mineral Exploration
Geoscience concepts and techniques are used at almost every stage of the mineral exploration life-cycle. Government investments in geosciences stimulate exploration activity, increase the potential for mineral discoveries and promote economic growth. Programs like GEM pay dividends and the rate of return is often a multiple of the initial investment. UPDATE The PDAC Applauds the Prime Minister’s Renewal of Investment in Geoscience
PDAC welcomes the renewal of investment in GEM of $100 million over seven years. A Canadian Economic Powerhouse
PDAC Executive Director Ross Gallinger discusses the importance of investments in geosciences and the GEM program. Government geosciences to support mineral exploration: public policy rationale and impact
by J.M. Duke, Ph.D.