In 2012-0441771R3 (released September 18, 2013), the CRA ruled that an exploration program underneath the site of a former open pit mine would qualify as “Canadian exploration expenses” (CEE) notwithstanding that a former mine at the site had previously come into production in reasonable commercial quantities. The facts revealed that a former open pit mine at the site had previously come into commercial production, but was later closed and placed on care and maintenance for a number of years. Further, at the time of the ruling, no “Measured Mineral Resource”, “Indicated Mineral Resource”, or “Mineral Reserve” (of any category) had been identified in respect of the property being explored, which was located under the former open pit mine site. Accordingly, the exclusion in paragraph (f) of the definition of CEE in s. 66.1(6) – for “any expense that may reasonably be considered to be related to a mine…that has come into production in reasonable commercial quantities or to be related to a potential or actual extension of the mine” – did not apply. As such, the proposed exploration program would qualify as CEE, in particular for any flow-through shares that might be issued to finance such exploration.