43-101 trends in mining industry

Upload: haro-velasquez-sanchez

Post on 04-Jun-2018

219 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/13/2019 43-101 Trends in Mining Industry

    1/19

    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

  • 8/13/2019 43-101 Trends in Mining Industry

    2/19

    What is NI 43-101?

    Standards of Disclosure for Mineral Projects

  • 8/13/2019 43-101 Trends in Mining Industry

    3/19

    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

  • 8/13/2019 43-101 Trends in Mining Industry

    4/19

    NI 43-101 Fundamentals

    1. Qualified Person2. Standards and Definitions3. Allow disclosure that is not misleading4. Prohibited Disclosure

    5. Technical Report

  • 8/13/2019 43-101 Trends in Mining Industry

    5/19

    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.

  • 8/13/2019 43-101 Trends in Mining Industry

    6/19

    Independent QP Tests

    Ownership. Revenue - >50% over 3 years. Competing Property. Director or Officer.

    No bright line test. Determined by the QP.

  • 8/13/2019 43-101 Trends in Mining Industry

    7/19

    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

  • 8/13/2019 43-101 Trends in Mining Industry

    8/19

    Technical Reports

    File within 45 days of disclosure Item 5 - Reliance on Other Experts Item 8 - History

  • 8/13/2019 43-101 Trends in Mining Industry

    9/19

    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

  • 8/13/2019 43-101 Trends in Mining Industry

    10/19

    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

  • 8/13/2019 43-101 Trends in Mining Industry

    11/19

    Item 8 - History

    Must make careful statements about thereliability

    Must be careful comparing categories

  • 8/13/2019 43-101 Trends in Mining Industry

    12/19

    Common Deficiencies

    Technical report no longer current

  • 8/13/2019 43-101 Trends in Mining Industry

    13/19

    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

  • 8/13/2019 43-101 Trends in Mining Industry

    14/19

    Consents

    Be careful Be very specific There are significant differences between

    Certificates and Consents and theirrespective purposes

    Be aware

  • 8/13/2019 43-101 Trends in Mining Industry

    15/19

  • 8/13/2019 43-101 Trends in Mining Industry

    16/19

    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!

  • 8/13/2019 43-101 Trends in Mining Industry

    17/19

    Good Disclosure Practices

    Use consistent units of measure Include metal price assumptions Avoid zero cut-off grade estimates Avoid gross metal values

  • 8/13/2019 43-101 Trends in Mining Industry

    18/19

    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

  • 8/13/2019 43-101 Trends in Mining Industry

    19/19

    Discussion