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 a mineral resource certification under subparagraph (d)(i) of the definition of "mineral resource" in subsection 248(1) is required in respect of XXXXXXXXXX deposit.
Position: No.
Reasons: NRCan has advised us that the XXXXXXXXXX deposit is a base metal, and that the deposit qualifies as a base metal deposit under paragraph (a) of the mineral resource definition in subsection 248(1).
XXXXXXXXXX 2026-109579
Marie-Audrey Kirouac
June 1, 2026
Dear XXXXXXXXXX:
Re: XXXXXXXXXX – Mineral Resource Certification
This is in response to your inquiry dated April 13, 2026, in which you asked, on behalf of your client XXXXXXXXXX (the “Company”), whether a mineral resource certification under subparagraph (d)(i) of the definition “mineral resource” in subsection 248(1) of the Income Tax Act (the “Act”) is required in respect of XXXXXXXXXX to be extracted from a XXXXXXXXXX project (the “Project”).
The Project
The Project is located approximately XXXXXXXXXX (the “Property”). The Property is located XXXXXXXXXX.
The Property is comprised of XXXXXXXXXX, covering a total of XXXXXXXXXX. All the claims are registered in the name of the Company which owns a XXXXXXXXXX% interest in the Property (for a list of the claims, see Appendix I).
Definition of Mineral Resource
Paragraph (a) and subparagraph (d)(i) of the definition of “mineral resource” in subsection 248(1) of the Act read as follows:
“mineral resource” means:
(a) a base or precious metal deposit […]
(d) a mineral deposit in respect of which
(i) the Minister of Natural Resources has certified that the principal mineral extracted is an industrial mineral contained in a non-bedded deposit.
The Minister of Natural Resources has advised us that the XXXXXXXXXX to be extracted from the XXXXXXXXXX deposit as part of the Project is a base metal. As a result, it is our view that the deposit located on the Property qualifies as a base metal deposit under paragraph (a) of the “mineral resource” definition in subsection 248(1) and, as such, does not require certification under subparagraph (d)(i) of this definition.
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
Appendix I
XXXXXXXXXX
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