NI 43-101

Trends in the Mining Industry Garth D. Kirkham, P.Geo., P.Geoph. Kirkham Geosystems Ltd.

Mintec User Conference 2007 Tucson, AZ April 17, 2007

What is NI 43-101?
Standards of Disclosure for Mineral Projects

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 Appendix B Policy 3.3 Appendix 3E Appendix 3F Summary of Changes (December 2005) Disclosure Policy Timely Disclosure News Release Guidelines 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

NI 43-101 Fundamentals
1. 2. 3. 4. 5. Qualified Person Standards and Definitions Allow disclosure that is not misleading Prohibited Disclosure Technical Report

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 or combination 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.

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

No bright line test. Determined by the QP.

Naming QP Where is it Required?

All written technical disclosure on material properties must identify QP and relationship to company. Applies to producing issuers as well as juniors. Written disclosure includes:
News release Annual information form MD&A Website Investor relations material

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

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

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 technical report Take responsibility for the mineral resources/reserves

Item 8 - History
Must make careful statements about the reliability Must be careful comparing categories

Common Deficiencies
Technical report no longer current

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 a technical report if you state that you are relying on another report It is OK to omit sections of a technical report if adequately covered in previously filed technical report

Consents
Be careful Be very specific There are significant differences between Certificates and Consents and their respective purposes Be aware

Civil Liability
It has always existed!
QPs are only liable for their expert report, opinion or statement if they have provided written consent hence the importance of consent

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 from expert Avoid blanket consents!

Good Disclosure Practices

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

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

Discussion