Market Crisis Expected To Hurt Mineral Exploration

Market Crisis Expected To Hurt Mineral Exploration

Wednesday, October 08, 2008 at 14:55

A mining expert in the province says northern Saskatchewan’s mineral sector will definitely feel the pinch of the world’s economic crisis.

Pam Schwann of the Saskatchewan Mining Association notes many junior companies rely on investors to help them finance their expeditions to the north.

She says falling commodity prices may unnerve investors and keep them from putting money into high-risk ventures like exploration projects.

Still, she feels the province’s diverse resource sector will help it get through the uncertain times.

Schwann adds one resource that may stay buoyant despite the crisis is gold, because investors often use it for security.