Canada's Mining Industry Continuing to Boom

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It is also interesting to note that the proportion of spending between juniors and seniors continues to shift in favour of the former, and in 2006, juniors accounted for 50% of companies with spending commitments in excess of $10 million.

This time last year, in fact April 16, 2006, your correspondent appraised the Canadian mining industry with the help of the Overview of Trends in Canadian Mineral Exploration, published annually by Natural Resources Canada...

We concluded last year that, “Canada is still a hot spot for mining investment, perhaps all the more so as a result of uncertainty in other jurisdictions as seen in last week’s article about Peru and the general climate in South/Central America. Furthermore, Canada remains mining friendly and willing to provide meaningful incentives for Canadian listed juniors to keep ploughing their capital into the ground at home. By the numbers, it would appear that with the base metals finally being accepted, the appetite for these projects is on the rise. Uranium is also capturing the imagination of investors as prices continue to rise and underlying fundamentals are strong.”...

It is also interesting to note that the proportion of spending between juniors and seniors continues to shift in favour of the former, and in 2006, juniors accounted for 50% of companies with spending commitments in excess of $10 million. Juniors were forecast to spend $1.12 billion in 2006 - the highest number ever recorded junior company spending.

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