43-101 trends in mining industry
TRANSCRIPT
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NI 43-101
Trends in the Mining Industry
Garth D. Kirkham, P.Geo., P.Geoph.
Kirkham Geosystems Ltd.
Mintec User Conference 2007Tucson, AZ April 17, 2007
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What is NI 43-101?
Standards of Disclosure for Mineral Projects
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NI 43-101 Fundamentals NI 43-101 Standards for Disclosure Form 43-101 F1 Detailed Contents of the Technical Report Companion Policy 43-101CP TSX and TSX-V Exchange
Appendix A Summary of Changes (December 2005) Appendix B Disclosure Policy Policy 3.3 Timely Disclosure Appendix 3E News Release Guidelines Appendix 3F Mining Standards Guidelines
CIM Best Practices for: Mineral Resource and Reserve Estimation Mineral Exploration
Reporting of Diamond Exploration Results GSC Paper 88-21 for Coal
www.bcsc.bc.ca
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NI 43-101 Fundamentals
1. Qualified Person2. Standards and Definitions3. Allow disclosure that is not misleading4. Prohibited Disclosure
5. Technical Report
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Qualified Person
Scientific and technical disclosure must be prepared by a QP.
At least 5 years experience in mineral exploration,mine development or project assessment orcombination thereof.
Experience relevant to the subject matter of the
mineral project and the technical report. Is a member in good standing of a recognized professional association.
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Independent QP Tests
Ownership. Revenue - >50% over 3 years. Competing Property. Director or Officer.
No bright line test. Determined by the QP.
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Naming QP Where is it Required?
All written technical disclosure on material properties must identify QP and relationship tocompany.
Applies to producing issuers as well as juniors. Written disclosure includes:
News release Annual information form
MD&A Website Investor relations material
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Technical Reports
File within 45 days of disclosure Item 5 - Reliance on Other Experts Item 8 - History
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Item 5 - Reliance on Other Experts
Reliance on an expert who is not a QP Should not include scientific or technical
information normally prepared by a QP No disclaimers May rely on historical data and the work of
other QPs if reasonable to do so Conduct appropriate due diligence May not disclaim responsibility
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Relying on Previous Resource
Estimates Mineral resources/reserves by another QP from a
previously filed technical report-one of the current
QPs must take responsibility Make whatever investigation necessary to
reasonably rely on that data Alternatives:
Include new certificate of QP from previous technicalreport
Take responsibility for the mineral resources/reserves
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Item 8 - History
Must make careful statements about thereliability
Must be careful comparing categories
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Common Deficiencies
Technical report no longer current
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Common Misconceptions
All authors must be independent All technical reports filed have been reviewed and
accepted It is OK to disclaim responsibility for sections of atechnical report if you state that you are relying onanother report
It is OK to omit sections of a technical report ifadequately covered in previously filed technicalreport
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Consents
Be careful Be very specific There are significant differences between
Certificates and Consents and theirrespective purposes
Be aware
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Civil Liability in the Secondary
Market Extends statutory liability to all public
disclosure by the company
Annual information forms, news releases,company websites, public oral statements
Must have obtained written consent fromexpert
Avoid blanket consents!
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Good Disclosure Practices
Use consistent units of measure Include metal price assumptions Avoid zero cut-off grade estimates Avoid gross metal values
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Disclosure Red Flags
No QP named Overly promotional language
Non-compliant resource/reserve modifiers Adding inferred resources to other categories Lack of required / cautionary language
Reporting gross metal value or in-situ value Implying economic viability without tech report
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Discussion