Open pit

A form of surface mining in which ore is extracted from a large open pit 
or burrow.

Ore

Rock, generally containing metallic or non-metallic minerals, that can be 
mined and processed at a profit.

Ore body

A sufficiently large amount of ore or a natural concentration of valuable 
material that can be economically extracted.

Placer

An alluvial, marine, or glacial deposit containing valuable metals, 
especially gold.

Preliminary 
Feasibility Study*

A comprehensive study of the viability of a mineral project that has 
advanced to a stage where the mining method, in the case of underground 
mining, or the pit configuration, in the case of an open pit, has been 
established and an effective method of mineral processing has been 
determined, and includes a financial analysis based on reasonable 
assumptions of technical, engineering, legal, operating, economic, social, 
and environmental factors and the evaluation of other relevant factors that 
are sufficient for a Qualified Person, acting reasonably, to determine if all or 
part of the Mineral Resource may be classified as a Mineral Reserve.

Probable Mineral 
Reserve*

The economically mineable part of an Indicated and, in some 
circumstances, a Measured Mineral Resource demonstrated by at least a 
Preliminary Feasibility Study. This Study must include adequate information 
on mining, processing, metallurgical, economic, and other relevant factors 
that demonstrate, at the time of reporting, that economic extraction can be 
justified.

Proven Mineral 
Reserves*

The economically mineable part of a Measured Mineral 
Resource demonstrated by at least a Preliminary Feasibility Study. 
This Study must include adequate information on mining, processing, 
metallurgical, economic, and other relevant factors that demonstrate,  
at the time of reporting, that economic extraction is justified.

Qualified Person*

An individual who is an engineer or geoscientist with at least five years 
of experience in mineral exploration, mine development or operation, or 
mineral project assessment, or any combination of these; has experience 
relevant to the subject matter of the mineral project and the technical 
report; and is a member or licensee in good standing of a professional 
association.

Rare earth metals

A set of 17 chemical elements that are typically dispersed and not often 
found in concentrated and economically exploitable deposits: scandium 
(Sc), yttrium (Y), lanthanum (La), cerium (Ce), praseodymium (Pr), 
neodymium (Nd), promethium (Pm), samarium (Sm), europium (Eu), 
gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), 
thulium (Tm), ytterbium (Yb), and lutetium (Lu).

Recovery

The percentage of valuable metal that is recovered from the ore.

© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms 
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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 A Guide to Canadian Mining Taxation