British Columbia Report Shows Increase in Mineral Exploration Expenditure

EY, a global consultancy firm, recently released its annual British Columbia Mineral and Coal Exploration Survey 2020 report.

The report discovered that the exploration price index surged by 26% by August 2020, despite the almost 11% decline in global exploration expenditures.

The report notes that while base metals such as copper fluctuated and recorded the highest declines in exploration spend, gold continued to dominate around the globe.

Despite experiencing a marginal decline, the exploration expenditure of Canada remained in third place, following South America and Australia in global rankings.

This report also found that exploration spend across the British Columbia province grew to C$422 million ($334 million), a 28% year-over-year growth.

EY Canada Mining & Metals consulting leader Iain Thompson stated that despite the effects of the coronavirus pandemic, projects capitalized on available venture capital and favorable commodity prices, which helped strengthen budgets in the final half of last year, in addition to attracting additional investments. Thompson added that these factors supported an increase in exploration in the province, which helped Canada maintain its position in global rankings.

The report also found that gold recorded a 76% growth in exploration expenditure in the province, moving to C$224 million last year from 2019’s CAD 127 million. This was as a result of investors flocking to gold metal as a safe haven investment.

EY found that despite the Northwest region dominating in the province, the South central and north central regions recorded growth in gold exploration of 62% and 113% respectively.

The survey also found that expenditure decreased to C$121 million last year from 2019’s C$143 million, an 18% decline. This was largely because of a decline in spend by some large zinc/lead and nickel projects.

The report demonstrated a significant shift in exploration towards base metals, with the trend continuing as the year progressed. This was mainly attributed to the fact that the demand for base metals, including copper, was driven by electrification and global economic growth.

To make up for 35% of total exploration conducted last year, early-stage exploration and grassroots declined by 5% yearly. Likewise, EY reported that the total number of projects had declined by 5%.

Additionally, the report found that expenditures increased in all regions in the British Columbia province except the southwest. CEO and president of the Association for Mineral Exploration Kendra Johnston stated that a healthy exploration industry was fundamental for community development, the creation of employment opportunities and future investments.

Speaking of mineral exploration spend, Energy Resources Inc. (NYSE American: UUUU) (TSX: EFR) has done the groundwork and established that its properties in Utah and Colorado have significant vanadium deposits, and the company stands to benefit from the extraction of this critical mineral.

NOTE TO INVESTORS: The latest news and updates relating to Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) are available in the company’s newsroom at http://ibn.fm/UUUU

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