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 deposit qualifies as a mineral resource where the principal minerals to be extracted include XXXXXXXXXX.
Position: Yes.
Reasons: Positive opinion provided by Natural Resources Canada.
XXXXXXXXXX 2025-108003
Marie-Audrey Kirouac
November 12, 2025
Dear XXXXXXXXXX:
Re: XXXXXXXXXX – Addendum to a Mineral Resource Certification
This is in response to your inquiry dated September 25, 2025, in which you asked on behalf of your client XXXXXXXXXX. (the “Company”, formerly known as XXXXXXXXXX.) for an addendum to the mineral resource certification issued on May 23, 2023 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”, formerly known as the XXXXXXXXXX project).
More precisely, the purpose of the addendum to the mineral resource certification is to include XXXXXXXXXX, which are to be extracted from the deposit together with XXXXXXXXXX.
The Project
The Project is located within the XXXXXXXXXX. The Project is composed of XXXXXXXXXX claims (the “Property”) covering a total of XXXXXXXXXX. All the claims are registered in the name of the Company which owns a 100% interest in the Property (for a list of the claims, see Appendix I).
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 additional 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
Appendix I XXXXXXXXXX
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