Mining exploration in Canada’s North declines despite record-high gold prices

For years, gold has been the focus of Canadian mining exploration spending: the financing that backs efforts to find, assess, and potentially develop mineral deposits into mines. These efforts have established Canada as a top gold producer worldwide.

According to reports, high gold prices do not result in higher spending at mining explorations in Canada. Throughout 2024, the price of gold shot up by 38 per cent, reaching historic heights. Skyrocketing value didn’t necessarily lead to more investment last year. It found overall exploration spending in the province was down 14 per cent from 2023, and exploration spending targeting gold dropped by 24 per cent.

“There are several factors that play into the level of exploration spend beyond commodity price,” said Iain Thompson, a partner with EY Canada, the consulting firm behind the report. He pointed to several projects in B.C. that are further along the development life cycle and global decline in exploration spending