BC exploration spending declines as flagship projects mature – a call for grassroots growth

Mineral exploration spending in BC is down 14% from $643m in 2023, according to the latest findings from the British Columbia Mineral and Coal Exploration Survey 2024, as major projects have begun to mature toward operational readiness, resulting in a shifting focus away from exploration and toward infrastructure development.

The survey found the 10 largest mineral exploration projects by expenditure in 2024 totalled $259m, while 2023’s top 10 projects totalled $343m. This nearly $100m difference is indicative of the progression of flagship projects, which in years past would represent a significant portion of annual spend, maturing away from exploration and naturally redirecting resources toward the next phase of development. Policy considerations are also contributing to BC’s declining exploration spend.

• Mining and metals exploration spending in British Columbia totalled over $550m in 2024, down 14% from 2023
• Renewed focus on critical minerals tempered drop in precious metals spending
• BC’s Northwest region remains leader in mineral exploration expenditure 

Mineral exploration industry remained a significant economic contributor and employer in British Columbia with survey respondents reporting $552m in exploration spend in 2024 and a 10% year-over-year increase in workforce from 2023.

Continued focus on critical minerals cushions impact of declining spend in precious metals

The report also indicates copper and gold remained primary targets of BC mineral exploration in 2024. However, despite record-high commodity prices, copper and gold exploration spending declined by 28% and 24% respectively. This decline is attributed to changing dynamics at opposing ends of the exploration cycle, as difficult financing conditions restricted grassroots spending, while large-scale deposits matured out of the exploration phase.

These decreases were mitigated by the critical minerals and coal sectors, which received increased expenditure in 2024.

With the exclusion of copper, the critical minerals sector, key to the energy transition, saw a 110% increase in year-over-year funding in 2024 -, increasing from $24m in 2023 to $49m in 2024, supported by the federal critical mineral exploration tax credit of 2022.

The Northwest region still holds majority of mineral exploration expenditure in BC

Data from this year’s survey reasserts BC’s Northwest region, home to the informal “Golden Triangle”, as the province’s leading zone of interest from both local companies and major international stakeholders, accounting for 63% of all mineral exploration spending in 2024. While this represents a decline of 6% from 2023, it is to be expected given the shift toward more mature assets and subsequent decreases in copper and gold exploration spend.

The region notably serves as the home of projects with the largest mineral exploration spend in the entire province, namely the Eskay Creek project operated by Skeena Resources Limited, the Galore Creek Project operated by Galore Creek Mining Corporation and Kitsault Valley operated by the Dolly Varden Silver Corporation.

Launched at the annual PDAC Convention, the British Columbia Mineral and Coal Exploration Survey 2024 is a joint initiative between the Government of British Columbia’s Ministry of Mining and Critical Minerals, the Association for Mineral Exploration (AME) and EY. The survey analyzes the survey responses, financial reports and press releases from 130 companies operating in BC, which collectively represent 283 projects across the province, providing insights into the current state of BC’s minerals and coal exploration industry. Now in its ninth edition, the report provides a deep dive on:

• How nickel and industrial minerals can help soften the impact of declining copper and gold exploration
• The resurgence of metallurgical coal exploration in BC
• How provincial policy may be creating a gap between BC and Canada’s other exploration powerhouses and how well-placed incentives can better tip the scales
• The impact that effectively shifting spending from mature projects to grassroots exploration can have on struggling junior companies.

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SOURCE EY (Ernst & Young)