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Overview

List of Services
- Resource &
      Reserve

- Valuation
- Due Diligence
- Consulting
      for Banks

- Qualifying
      Reports

- Scoping &
      Feasibility

- Mining
      Consulting

- Project
      Management

- Litigation
      Support

- Project
      Evaluation

- NI43-101
      Compliance

- Diamond
      Consulting

oNational Instrument 43-101

 
Below is a brief outline of part of National Instrument 43-101, including:
  1. When technical reports are required.
  2. When Qualified Persons are required.
  3. Requirements to be a Qualified Person.
  4. Responsibilities of a Qualified Person.

Summary Of National Instrument 43-101
National Instrument 43-101, which sets reporting standards for disclosure of mineral projects, became law across Canada on February 1, 2001. National Instrument 43-101 is a reformulation of the National Polices 2A and 22 by Canadian Securities Administrators and introduces these significant changes:
  • Use of CIM definitions for reporting Mineral Resources and Mineral Reserves with the deletion of the "Possible Reserves" category. Reporting under some foreign standards, specifically JORC (Australian code), IMM system (UK code) and USGS Circular 831 (USA code), is accepted provided reconciliation is made with the CIM code.
  • Technical reporting only by "Qualified Persons" regulated by Professional Associations.
  • Disclosure of mineral target potential with appropriate cautionary language.
  • Disclosure of preliminary assessments of projects with appropriate cautionary language.
  • Grandfathering disclosure made in a "disclosure document" before February 1, 2001.
Technical reports
Technical reports under National Instrument 43-101 are required for:
  • A first time reporting issuer in a Canadian jurisdiction.
  • A reporting issuer in a new exchange jurisdiction.
  • To support a new listing or a material change at a stock exchange.
  • Preliminary prospectus, long form or short form with new material information.
  • Information or proxy circular on acquisition of material property for securities.
  • Rights offering circular containing mineral disclosure.
  • Annual information form (AIF) or annual report with new material information.
  • Mineral property valuation (OSC R. 61-601).
  • Take-over bid circular disclosing mineral reserves and resources and offering securities.
  • Directors' circular with new or additional mineral reserves and resources reporting or
  • Preliminary Assessment - material change.
  • News release with new or a change in mineral reserves and resources or Preliminary Assessment - material change in respect of the affairs of the issuer.

Qualified Persons
Where Qualified Persons are required
Under National Instrument 43-101 a technical report by an independent Qualified Person is required for:
  • A new reporting issuer or a new listing.
  • A preliminary long form prospectus.
  • A mineral property valuation.
  • If the issuer is not a producing issuer, with C$30 million of gross revenues in the previous year and C$90 million in aggregate gross revenues for the last three years:
    1. for new or 100% change in mineral reserves and resources or Preliminary Assessment, if it is a material change.
    2. for a reporting issuer in an additional exchange jurisdiction.
For the purposes of National Instrument 43-101 a Qualified Person is not independent if:
  • He / she is a director, officer or employee of the issuer, insider or affiliate.
  • Owns securities of the issuer, insider or affiliate.
  • Has an interest in the subject mineral property or in property within two kilometres of the subject property.
  • Has received the majority of his / her income for three years from the issuer, insider or affiliate.

Requirements to be a Qualified Person
A Qualified Person is someone who:
  • is a professional geoscientist or engineer with at least five years experience in mineral exploration, mine development or operation or mineral project assessment, or a combination of these.
  • has experience relevant to the subject matter of the mineral project.
  • is a member in good standing of a professional association e.g. a member organization of the CCPE and / or CCPG in Canada or organizations recognized by the CSA outside Canada.

Responsibilities of a Qualified Person
  • To adhere to professional and industry standards for work and reporting.
  • Must be involved in the design and implementation of programs.
  • Review new releases in connection with reporting work to ensure accuracy.
  • Undertake site visits.
  • Adhere to exploration best practices as published by the Mining Standards Task Force in January 1999 for the Toronto Stock Exchange (TSE) and the Ontario Securities Commission (OSC).
  • Undertake data verification (sampling, assaying, quality assurance / quality control etc.).
  • Sign and seal the report document.
  • Provide a certificate of qualifications as proscribed by National Instrument 43-101.
  • Consent to the filing of his / her technical report with the applicable securities commissions and to the use of the technical report.
 
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