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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: Whether a deposit of serpentine constitutes a mineral resource.
Position: Yes.
Reasons: Natural Resources certified under subparagraph (d)(i) of the definition of "mineral resource" in subsection 248(1) of the Act in respect of the Lizardite (Serpentine).
2002-017325
XXXXXXXXXX D. Shugar
(613) 957-2134
November 26, 2002
Dear XXXXXXXXXX:
This is in reply to your letter dated November 13, 2002, wherein you requested certification that serpentine qualifies as a "mineral resource" under subsection 248(1) of the Income Tax Act (the "Act").
In particular, certification was requested in respect of serpentine deposits that XXXXXXXXXX (the "Company") is exploring on its property located on the XXXXXXXXXX.
Pursuant to subparagraph (d)(i) of the definition of "mineral resource" in subsection 248(1) of the Act, Natural Resources Canada was asked to certify that the serpentine deposits constitute a mineral deposit in respect of which the principal mineral extracted is an industrial mineral contained in a non-bedded deposit. The Minister of Natural Resources has certified that the principal mineral to be extracted, lizardite, is an industrial mineral contained in a non-bedded deposit.
It is, therefore, our view, that the lizardite (serpentine) deposits which you are exploring on the Property qualify as a mineral resource pursuant to subparagraph (d)(i) of the definition of the term in subsection 248(1) of the Act.
Yours truly,
for Director
Reorganizations and Resources Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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