Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Whether the XXXXXXXXXX deposit located on the taxpayer's property qualify as a mineral resource pursuant to subsection 248(1).
Position: Yes.
Reasons: The law and a positive opinion from NRCan.
XXXXXXXXXX 2025-107182
Marie-Audrey Kirouac
January 8, 2026
Dear XXXXXXXXXX:
Re: XXXXXXXXXX – Mineral Resource Certification
This is in response to your inquiry dated July 8, 2025, in which you asked on behalf of XXXXXXXXXX (the “Company”) for a mineral resource under subparagraph (d)(i) of the definition “mineral resource” in subsection 248(1) of the Income Tax Act (the “Act”) in respect of the XXXXXXXXXX deposit contained within the XXXXXXXXXX Project (the “Project”), located in XXXXXXXXXX.
The Project
The Project location is XXXXXXXXXX. The Project comprises XXXXXXXXXX mineral claims (the “Property”) totaling XXXXXXXXXX. The claims are held by the Company (for a list of claims, see Appendix A).
Definition of Mineral Resource
In order for subparagraph (d)(i) of the definition of “mineral resource” in subsection 248(1) of the Act to apply, three conditions must be met:
1. a principal mineral must be extracted,
2. that mineral is an industrial mineral; and
3. that mineral is contained in a non-bedded deposit.
We obtained an opinion from the Minister of Natural Resources (“NRCan”) regarding the deposit located on the Property. NRCan has advised us that the principal minerals to be extracted from the deposit, XXXXXXXXXX, are industrial minerals contained in a non-bedded deposit. It is therefore our view that the deposit contained within the Project will qualify as a “mineral resource” pursuant to subparagraph (d)(i) of the definition of this term in subsection 248(1) of the Act.
We note that nothing in this letter should be construed as implying that the Canada Revenue Agency has confirmed, reviewed, made any determination, or accepted any method for the determination in respect of whether the proposed exploration expenses will be “Canadian exploration expenses”, “flow-through mining expenditures” or “flow-through critical mineral mining expenditures”, as those terms are defined in the Act.
Yours truly,
Kimberley Wharram
Manager
Resources Section
Reorganizations Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
XXXXXXXXXX
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