Staking rushes boost Ontario economy.

• Author: Stewart, Nick
• Position: SPECIAL REPORT: MINING

While stellar drill results on a new property can spark the imaginations of juniors and prospectors alike, the real value of staking rushes lies in the millions of dollars they inject into Ontario's economy.

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According to the Ontario Prospectors' Association (OPA), 2006 saw more than 60,000 claim units staked in the province, with $5.4 million in related expenditures such as travel, accommodations and the like.

"It certainly can be a significant contributor to the provincial economy," Ann Wilson, district geologist with the Ontario Geological Survey, says.

Even just one powerful assay can ignite a wave of staking, such as recently seen with Noront Resources Ltd.'s McFaulds Lake discovery in the James Bay lowlands, and Golden Chalice's Langmuir Township nickel find north of Timmins.

Staking is still ongoing in the McFaulds Lake area, where it is estimated that more than 100,000 hectares have already been staked on the heels of Noront's find.

While the exact number of claim units being staked is as yet unknown, it's estimated the money being generated is exceeding that typically seen during a staking rush. The average value of a physically staking claim unit in 2006 hit roughly $90, though Garry Clark of the OPA says it's likely the value of the McFaulds Lake claims may hit $160 per unit due to the need to use helicopters to reach the claim areas.

Such significant rushes may only occur two or three times in the province in any given year, but they pack a mighty financial wallop, according to Wilson.

In order to maintain legal control over a claim, a set amount of exploration work must be performed in a two-year period. On 3,500 claims alone, the value of performing this work would reach $1.4 million, she says.

Of course, what drives this kind of activity depends on who you approach.

For instance, ask legendary prospector Richard Hughes what prompted a rash of staking around his Golden Chalice property in Langmuir after just one positive nickel drill result earlier this year, and he'll tell you.

"Well, I was one of the co-founders of the Hemlo deposit, and people respond to that," says Hughes.

"Success breeds a lot of interest."

While this concept of "celebrity prospectors" is popular with some financial analysts, Wilson finds it to be a surpassingly weak one, saying that like with any industry, people go where the potential money is.

To this end, some juniors may even stake claims adjacent to popular discoveries for the...