DEPARTMENT OF MINES AND ENERGY
Mineral Titles Act and Regulations
GUIDELINE 6
Benchmark Minimum and Admissible Expenditure
An expenditure report is required annually from the holder of an EL, ELR or ML under Section
94(2)(b) of the Mineral Titles Act (the Act) and Regulation 81 of the Mineral Titles Regulations (the
Regulations). This guideline summarises the admissible expenditures for EL, ELR and ML titles
under the Act and Regulations, plus benchmark minimum expenditure amounts for Exploration
Licences.
Only those expenditures relating to acquiring information directly related to mineral exploration,
undertaken with the expectation that the said information will be publicly released (as directed by
the Act), can be claimed. Expenditure reporting should relate to the geoscientific surveys, drilling
programs and technical investigations described in the annual technical report.
Benchmark Minimum Expenditures
The introduction of minimum expenditure amounts for exploration licences is designed to
encourage title holders to nominate realistic expenditure requirements that reflect the maturity of
the title and are designed to progress the exploration program towards discovery and assessment
of the potential value of minerals in the title area.
Although these amounts are not compulsory, a title holder must have regard to this Guideline when
nominating expenditure requirements.
Title holders will be expected to nominate an amount, referred to as the covenant, for each yearly
reporting period. The amount should be in excess of the benchmark minimum expenditure
amounts listed below. If the actual expenditure is less than the covenant amount, the title holder
must apply for a Variation of Covenant.
Benchmark Minimum Expenditure for Exploration Licences:
Year One
Year Two
Year Three
Year Four
Year Five
Year Six
Year Seven
Year Eight
Year Nine
Year Ten
$10,000 plus $ 150 per block
$10,000 plus $ 250 per block
$10,000 plus $ 500 per block
$10,000 plus $ 750 per block
$10,000 plus $1000 per block
$10,000 plus $1250 per block
$10,000 plus $1500 per block
$10,000 plus $1750 per block
$10,000 plus $2000 per block
$10,000 plus $2250 per block
Explanatory Notes for Expenditure Reports
An applicant for an exploration licence must include the proposed expenditure for years one and
two of the granted title. In the application an existing title holder must submit an expenditure report
with the current reporting year’s expenditure plus the proposed expenditure for the upcoming
reporting year. This expenditure report is to be submitted using the approved form (Regulation
81(1)).
MTA Guideline 6 (r1)
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Northern Territory Government, 09/12/2011
An expenditure report is only required with an Annual report. Upon partial relinquishment of an
exploration licence expenditure is not required. Upon final surrender, it is necessary to specify that
the report is an “Annual and Final” and provide an accompanying expenditure report.
The intention of the Mineral Exploration and Mining Expenditure Reporting form is to capture those
costs directly attributable to each title for the acquisition and interpretation of new exploration data.
A description of the work undertaken for each Admissible Expenditure category (where
appropriate), must be stated, together with the total amount spent on those activities.
Details of requirements for submission of the form, including formats and lodgement details are
provided in Guideline 7 - Reporting on Mineral Titles.
Admissible Expenditure
The following categories list activities that may be claimed against expenditure commitments. An
example of the type of information required is provided.
If a section of admissible expenditure is not relevant to your operations, insert “not applicable” at
the appropriate section of the approved form.
Expenditure relating to data acquisition (by any method) can only be claimed if the data is supplied
to the Department in the format advised in Guideline 7 - Guidelines for Reporting on Mineral Titles.
A. Geological Activities and Prospecting
Geological mapping, core logging, geological sample description, petrology, geological data
processing, basic interpretation and expenses associated with conducting these activities on
the mineral title.
General prospecting including metal detecting, loaming, panning, sampling, dollying and dryblowing.
Specify and quantify all activities undertaken, eg. hours spent mapping on the title; or, 300
metres of diamond core logged and cross-sections prepared; or, 15 samples prepared for
petrology and analysed in-house.
Include only salaries and wages directly related to ‘on ground’ tasks. Conceptual targeting or
desktop studies are to be included in Office Studies and Overheads category.
B. Geochemical Activities
Geochemical sampling, analysis of surface and subsurface geochemical samples, handheld
XRF assays, PIMA or hyperspectral studies on rock samples, mineral separation, mineralogy
and analysis of diamond indicator minerals or other minerals, geochemical data processing and
interpretation, isotopic studies, age dating and metallurgical testing.
Specify the number of samples collected and/or assayed, eg. 205 rock chip samples were
collected and after testing with handheld XRF, 180 were sent for analysis by AAS.
C. Geophysical and Remote Sensing Activities
Ground geophysical surveys, scintillometer surveys, track etch surveys, downhole logging,
geophysical data processing and interpretation.
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Northern Territory Government, 09/12/2011
Airborne geophysical activities including aerial hyperspectral surveys, aerial survey costs,
geophysical data processing and interpretation.
Includes hire of specific vehicle/plane/helicopter and running costs for the actual survey.
Purchase or acquisition and interpretation of remotely sensed data, satellite imagery, aerial
photographs.
Specify and quantify the number of data points, grid spacing or flight line kilometres,
orientation, height; eg. Spot imagery was purchased and registered; or, 450 line km of
magnetics and radiometrics was flown at 1 km line spacing, in NNW direction and 50 m
altitude.
D. Drilling
All forms of drilling except pre-blast drilling, including exploration and grade-control drilling,
underground, water bores, pre-collars, sterilisation, drill pad access tracks, drill site
preparation, gridding.
Specify the type of drilling, metres drilled and number of holes. If non-exploration drilling,
specify type (eg. sterilisation, water bores). Specify number of metres gridded or number of drill
pads prepared. Eg. 12 RAB holes were drilled for a total of 600 m and 5 km of gridding and 12
drill pads were prepared.
E. Bulk Sampling and Earth Works
Plant and equipment hire, fuel and consumables used under this title for costeaning, trenching
and bulk sampling. Include all other substantial earthwork expenses.
Specify the tonnes excavated or moved, or length and depth of trenches. Eg. 100 m trenched
to a depth of 1 metre.
Note: sampling costs and analysis of those samples taken from trenches or costeans should be
reported under category C. Geochemical Activities.
F. Rehabilitation
Rehabilitation costs of drill holes, drill pads, grid lines, trenches.
Specify the number of holes, length of tracks and how they were rehabilitated. Eg. 18 drill holes
were plugged and drill pads ripped by a grader; or, 50 km of grid lines were ripped by a grader
and previously collected top soil redistributed.
G. Pre-feasibility including Metallurgical and Environmental
Feasibility and pre-feasibility studies, environmental studies, mine planning, engineering and
design studies, if supplied to the Department and able to be publicly released within 5 years
(any Corporate-in-Confidence material must not be supplied and cannot be claimed).
H. Office Studies
Non-field geoscientific studies such as research, literature and desktop studies, report
preparation, map production, planning of exploration programs and conceptual targeting
studies.
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Northern Territory Government, 09/12/2011
I. Overheads (to a maximum of 15% of the total of A to H above)
Administrative activities, such as office costs.
Field supplies and support - general exploration equipment not specific to a given survey,
consumables, plant and equipment hire/fuel/oil of general use vehicles - for geologists or field
staff used on this title, depreciation of direct exploration equipment if used on this title.
Field camp activities - establishment and maintenance of exploration base camps, food and
accommodation, camp costs for contractors not directly associated with mineral exploration
activities conducted on the mineral title.
Travel and accommodation: only those costs directly associated with mineral exploration
activities conducted on the mineral title, excludes marketing and road shows.
J. Preliminary Airborne Exploration
Regulation 81(3) states that “for the first operational year of an EL the title holder may also
include in the expenditure report details of any amount, as specified in an airborne survey
report, expended by the title holder on an approved airborne survey of land now in the title area
of the EL”.
Non Admissible Expenditure (ie. expenditure that cannot be claimed)
 Land access negotiations
 Rent for titles
 Fines and late lodgement fees
 Insurance
 Transfer costs
 Company Prospectus
 Title Search
 Costs of Reporting to a
Stock Exchange
 Bond / Security Deposit
 Legal costs
 Marketing (either for the title or
the commodity)
 Costs of Transfers, Dealings or
JVs
 Costs of floating a company
 Advertising
 Training not directly related to
this title
 Data capture where the
data are not supplied to
the Department in the
correct format
 Purchase of data or
reports where these
are not supplied to the
Department in the
correct format
 Tenement
management fees
 Corporate-in-confidence
material must not be supplied
and cannot be claimed
 Conferences
 Salaries and Wages of staff
not engaged on activities
related to the title
Land Access Negotiation Expenditure
Although land access negotiation expenditure is not admissible for the purposes of the expenditure
condition, title holders are required to report their expenditure in the relevant section of the
approved form.
Such expenditure would include all land access negotiations (general land access meetings and
specific site clearances) and any compensation payment directly related to access. Other useful
information includes where and with whom meetings were held, progress made and issue of an
AAPA clearance certificate.
MTA Guideline 6 (r1)
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Northern Territory Government, 09/12/2011