FAQ about Mineral Tenure in the Northwest Territories and Nunavut
What is mineral tenure?
Mineral tenure refers to a range of mechanisms by which the rights to explore for and develop mineral deposits are allocated. Details of the mineral tenure system in application on Crown lands are specified in the Northwest Territories and Nunavut Mining Regulations .
What is a mineral?
"Mineral" under the administration of the Northwest Territories and Nunavut Mining Regulations means any naturally occurring inorganic substance found on or under any surface of land but does not include the construction or building materials authorized under the Territorial Quarrying Regulations .
Why do we have tenures?
Mineral exploration and mine development are lengthy, capital-intensive and high-risk endeavours. As such, individuals and companies will only be willing to invest their time, effort and money in mineral exploration and mine development if they know that their rights to develop a mineral discovery are secure. The mineral tenure system provides that security. Without secure tenures, private sector exploration would not occur.
What types of tenures are there?
There are four types of tenures:
- Licence to Prospect – A license grants the holder the right to prospect for minerals on Crown lands open for mineral exploration. In addition, only a license holder can obtain the other types of mineral tenures. Anyone 18 years of age or older or a registered company can acquire a license on payment of $5 for an individual or $50 for a company. Licenses must be renewed annually and are not transferable.
- Prospecting Permit – A prospecting permit grants the exclusive rights to explore and have mineral claims recorded within the assigned boundaries of a given area for a specified period of time. The areas are one quarter of a mineral claim staking sheet (1:50,000 scale map) and vary in size from 20,557 to 71,661 acres (8,319 to 22,900 hectares). A prospecting permit has a fixed term of three years for areas south of 68°N, and five years for areas north of 68°N. Prospecting permits are not renewable. Any area of further interest to the holder must be converted to a mineral claim(s) prior to permit expiry provided the work requirements for the specified period have been completed.
Applications for prospecting permits are received between December 1 and December 31 and are processed on a first-come, first-served basis. They are issued effective as of February 1 the following year and are transferable. Applications must include details of the exploratory work to be conducted, an application fee of $25, and a deposit equal to the value of exploration work required for the first period.
- Mineral Claim – A claim grants the exclusive right to prospect and develop mineral discoveries within the boundaries of the claim. The area of a claim cannot exceed 2,582.5 acres (1,045 hectares). Any holder of an active license to prospect can stake a claim on Crown lands open for exploration that is not already under claim or under a prospecting permit. Only the holder of a prospecting permit may register a claim within the prospecting permit area. A claim may be held for a maximum of ten years. Claims are transferable to other parties.
To register a claim it must be physically staked by marking the corners and the boundaries of a rectangular area with posts in accordance with the Northwest Territories and Nunavut Mining Regulations and an application submitted to the Mining Recorder's Office within 60 days of staking. The application includes a sketch map showing the position of the claim, and a fee equal to $0.10 per acre ($0.25/ha) for the area contained within the claim.
To maintain a claim in good standing the claim holder must:
- undertake annual representation work; and
- within 30 days of the anniversary of the claim submit a statement of representation work, an assessment report, and a fee of $0.10 per acre ($0.25/ha) of the claim.
- Leases – Only a mineral claim in good standing can be converted to a lease. While ore samples can be collected from a claim, only a lease can enter full commercial production. A claim holder may apply for a lease if:
- the value of the ore removed from the claim exceeds $100,000, unless the purpose of removal is for assay and testing;
- representation work has reached a total value of $10/acre ($24.71/ha);
- a legal boundary survey of the claim has been recorded; and
- the right to the claim(s) to be leased is not under dispute.
A lease has a 21-year term and can be renewed for a further 21 years. There is an annual rent of $1/acre ($2.47/ha) for the first 21-year term, and $2/acre ($4.94/ha) for subsequent renewal periods. The rent payable can be reduced by 50% on filing representation work. Leases are transferable to other parties.
What is exploration and representation work?
Access to Crown lands open for exploration is granted in order to promote active mineral exploration. Prospecting permits and mineral claims grant the exclusive right to prospect on defined areas for set periods of time. To ensure that permit and claim holders continue to pursue mineral exploration, both tenure types require that the tenure holder undertake a minimum amount of exploration and representation work each period.
The exploration work for a prospecting permit is detailed in the prospecting permit application and the work must be of an approved type. The value of the required exploration work is $0.10 per acre ($0.25/ha) for the first period, $0.20 per acre ($0.49/ha) for the second period, and $0.40/acre ($0.99/ha) for the third. For permits south of 68°N, each period is one year. For permits north of 68°N, the first and second periods are two years long and the third is one year.
For a mineral claim the valid types of representation work includes:
- geological, geochemical and geophysical surveys of the area made from the ground or the air;
- drilling, trenching, stripping and sinking shafts to determine the underlying geology;
- other exploratory work of a kind approved by an engineer of mines;
- a survey of the claim; and
- construction of roads or airstrips to access the claim.
The required annual value of the representation work for a claim is $4/acre ($9.88) for the first two years and $2/acre ($4.94/ha) for each subsequent year.
The valuation of exploration and representation work is calculated in accordance with Schedule II of the Northwest Territories and Nunavut Mining Regulations.
Why are assessment reports required?
Prospecting permit and mineral claim holders amass significant detailed knowledge of the geology of the areas being explored. The assessment reports are a means by which much of the information collected can enter the public domain. These reports are of value to those interested in exploring in the vicinity of existing claims or in re-exploring the area of lapsed permits, claims or leases. Assessment reports filed by prospecting permit holders are not open for public inspection until three years after the expiry of the permit. Assessment reports filed for mineral claims are not open for public inspection until three years from the date on which the report was filed or the mineral claim lapses, whichever is earlier.
Can a mineral tenure be relinquished or surrendered?
Prospecting permit holders can relinquish the permit at the end of the first or second work period. A lessee may surrender a lease at any time by giving notice in writing. The areas relinquished or surrendered are then re-opened for claim staking.
Permits, claims and leases can be cancelled if the tenure holder does not comply with tenure requirements.
Do mineral tenures grant surface rights?
No. Mineral tenures grant subsurface rights. Work conducted under a prospecting permit or mineral claim on Crown lands may require a land-use permit while a lease will require either a land-use permit or a surface lease. Where the surface rights are privately held, the tenure holder must obtain the surface rights holder's consent. For Aboriginal or Inuit owned lands, please refer to the appropriate land claim agreement.
Are mineral tenure holders subject to environmental regulations?
Yes. Mineral exploration and mine development in both territories are subject to environmental assessment, permitting, regulation and any relevant land claim agreement. Projects may be subject to environmental review by the Mackenzie Valley Environmental Impact Review Board or the Nunavut Impact Review Board . Land use and water permits are required under the Mackenzie Valley Resource Management Act , the Territorial Lands Act and the Nunavut Waters and Nunavut Surface Rights Tribunal Act . Exploration and development could be subject to provisions of various land claims and due diligence should be undertaken on a case-by-case basis to determine the status of the lands and any obligations that could arise either prior to staking a claim or during exploration and development. In addition, the lands open for mineral exploration and development are assessed by territorial land use planning processes.
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