The glimmers of hope that analysts saw in Canada’s mining sector earlier in the year are dimming as the industry approaches 2015 with not much let up in a weak outlook for metals prices, according to a new report.

The EY Canadian Mining Eye index dropped 15 per cent in the third quarter, dragged lower by the fall in metal prices, particularly gold, which fell eight per cent during the quarter due to a strengthening of the U.S. dollar, making American currency a more attractive investment.

However, despite continuing weak metal prices that are expected to dog the industry into 2015, the light hasn’t completely died out for prospective new projects, according to EY partner Bruce Sprague, leader of the accounting and consulting firm’s Canadian mining practice.

“Weakness in metal prices will not augur well for the industry,” Sprague and his colleague Jay Patel write.

In B.C., metal prices are weakening at the same time significant new developments are being advanced.

Toronto-based Seabridge Gold Inc. is looking for a well-financed partner to help build its proposed $5.3-billion KSM mine, which just won environmental approval, in far northwestern B.C.

Vancouver’s Pretium Resources Inc. is continuing to develop its anticipated Brucejack property farther south in the same region.

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