Mining

Mining and mineral exploration companies in Canada must follow specific guidelines for disclosure, designed to improve the accuracy and integrity of the information they provide. National Instrument 43-101 governs a company's public disclosure of scientific and technical information about its mineral projects.

Changes to National Instrument 43-101: Standards of Disclosure for Mineral Projects effective December 30, 2005
See BC Notice 2005/59, published December 20, 2005 for information about the implementation. A summary of the changes to 43-101, the list of commenters, and a summary of the comments and our responses are available in BC Notice 2005/49, published October 7, 2005. We have withdrawn CSA Notice 43-302 Frequently Asked Questions as many of the items were redundant following the December 2005 revision of NI 43-101.

National Instrument 43-101: Standards of Disclosure for Mineral Projects
This instrument governs disclosure, including oral statements, written documents and websites. The disclosure must be based on information provided by a "qualified person" (as defined in NI 43-101). NI 43-101 requires a company to file a technical report at certain times, prepared in a prescribed format. In some circumstances, the qualified person is to be independent of the company and the property. A company is required to use specified terminology when disclosing resources and reserves.

• Companion Policy to NI 43-101 Standards Of Disclosure For Mineral Projects: Guidance and interpretation to help you apply the requirements of National Instrument 43-101.
• Technical Report - NI 43-101F1: Describes the contents required in your technical reports.

2007 BCSC Mining Prospectus Review

Prospectus Due Dilligence Failures - Round 2 BCSC Strategy 1.3

Mineral Exploration Roundup 2008

The BCSC, in conjunction with AME BC, sponsored and presented two free half-day workshops on NI 43-101, as part of the Mineral Exploration Roundup 2008 mining conference held in Vancouver January 28-31, 2008.. As a result of requests from the public, we have posted the presentations given at the workshop here.

Additional Resources for Managers of Junior Resource Companies
Continuous Disclosure for Resource Companies (Update 5R) : Corporate Finance staff at the Commission prepared this guide in 2003 to assist managers and directors of junior resource companies listed on the TSX Venture to comply with MD&A disclosure requirements in their annual and quarterly reports. Please note that it does not address all requirements of current regulations.

Are you the manager of a junior mining company? You should be prepared to answer these questions from your investors. Investing in mining: Questions to Ask

NI 43-101: Mandated Filings on SEDAR
If section 4.1 or 4.2 of NI 43-101 triggers a technical report, you are required to file the following documents in SEDAR:

• Technical reports(s)
• Certificates of Qualified Persons (see s.8.1 of NI 43-101)
• Consents of Qualified Persons (see s.8.3 of NI 43-101)

We remind filers that offering memorandums are not mandated SEDAR filings. We recommend that you file your offering memorandums and reports of exempt distribution using BCSC E-Services. Technical reports, along with the certificates and consents of qualified persons, can be filed electronically by including them in one electronic document along with the offering memorandum.

Canadian Institute of Mining and Metallurgy (CIM) Resources
National Instrument 43-101 and its Companion Policy reference three CIM documents. These documents are available on the CIM website, but for your convenience the links below give you direct access:

• CIM Definition Standards on Mineral Resources and Mineral Reserves , adopted by CIM Council on November 14, 2004
• CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines , adoped by CIM Council on November 23, 2003
• Mineral Exploration Best Practices Guidelines , adopted by CIM Council, published in June 2000
• CIM Guidelines for Reporting of Diamond Exploration Results , adopted by CIM in March 2003

Reporting of Coal Resources and Coal Reserves
A qualified person estimating mineral resources or mineral reserves for coal may follow the guidelines of Paper 88-21 of the Geological Survey of Canada: A Standardized Coal Resource/Reserve Reporting System for Canada, as amended ("Paper 88-21"). However, for all disclosure of mineral resources or mineral reserves for coal, issuers are required by section 2.2 of the Instrument to use the equivalent mineral resource or mineral reserve categories set out in the CIM Definition Standards and not the categories set out in Paper 88-21. The CSA believes it is not reasonable to apply Paper 88-21 to foreign coal properties.

Inquiries about Scientific and Technical Issues
Contact Corporate Finance staff with expertise in scientific and technical issues related to mining and mineral exploration companies.