Department of Mines and Energy
Cancellation of Newfoundland Exploration
Assistance Program (NEXAP)
BACKGROUNDER
- The Newfoundland Exploration Assistance Program has been
cancelled and this action will save the Department of
Mines and Energy $500,000 annually.
- NEXAP was initiated in 1992 when mineral exploration had
been on constant decline since 1988 and needed some
stimulus to assist small companies and the companies
which provide explorations services such as drilling,
assaying and contract services.
- The program was funded at a cost of $500,000 annually and
offered 50 percent funding of eligible projects up to
$80,000 per project.
- Since the Voisey's Bay discovery in late 1994, there has
been an exploration boom in the province and government
financial stimulus is not required.
- The Department of Mines and Energy has decided to focus
on its longer term core program of providing geological
information as the main incentive for mineral exploration
and development.