Scientific and Technical Disclosure

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Scientific and Technical Disclosure

• Presented by Greg Gosson, Ph.D., P.Geo. Senior
  Mining Advisor

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Standards of Disclosure for Mineral Projects

• What are Directors and Officers
  responsibilities/liabilities?
• What are the standards for technical disclosure?
• What gets reviewed?
• Common problems.
• What to expect in future?

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Responsibilities/Liabilities

• General responsibility for all disclosure
• National Instrument 43-101
• Spelled out in the Companion Policy 43-101CP
• Frequently Asked Questions

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The Qualified Person

• The Qualified Person concept
• Responsibility to choose a Qualified Person
• Cant hide behind the Qualified Person

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Standards of Disclosure

• NI 43-101
• Exchange Guidelines
• Best Practice Guidelines

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What is the purpose of NI 43-101?

• To enhance the accuracy and integrity of
  disclosure in the mining sector

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When does NI 43-101 apply?

• Any oral statement or written disclosure
• Made by or on behalf of the issuer
• Intended or reasonably likely to be made
  available to the public
• In a Canadian jurisdiction

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Who reviews the technical disclosure at the BCSC?

• Terry Macauley
• Chief Mining Consultant
• Darcy Krohman
• Senior Securities Analyst
• Greg Gosson
• Senior Mining Advisor
• Robert Holland
• Senior Securities Analyst

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What gets reviewed?

• Prospectuses, Rights Offerings, AIFs
• Continuous Disclosure Review
• press releases, MDA, company websites
• Technical Reports, Research Analyst Reports
• Investor packages

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What problems do we commonly see?

• Not reading the Rules
• They changed since last century
• NP 2-A is out
• NI 43-101 is in

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Problems with Reserves and Resources

• Five categories only not dozens
• Report separately dont just lump
• Not just metal content
• Metal equivalents
• Gross metal value

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Problems with Technical Reports

• Lack of Technical Report
• Report in wrong format
• Lack of site visit on mineral property
• Report author not a Qualified Person

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More Problems

• Overly promotional language
• Lack of cautionary language
• Sample results
• Sample type
• Grades up to

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More Problems

• Websites its part of your written disclosure
• Research reports
• You distribute it
• You own it!

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Solutions

• Become familiar with 43-101
• Get involved with QP
• Stay involved

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What to expect in the future?

• Less allowance for transition
• More emphasis on compliance
• Continue with education process