Forty percent of miners' technical reports are non-compliant: Ontario Securities Commission
The Ontario Securities Commission found that 80% of the technical reports it surveyed last month had some form of non-compliance and 40% had at least one major non-compliance concern.
The OSC published a report on June 27 where it reviewed 50 Standards of Disclosure for Mineral Projects, 43-101F1, that were filed on SEDAR.
Only 20% of the technical reports reviewed were found to be fully compliant.
"We view this level of non-compliance with the disclosure requirements of Form 43-101F1 to be unacceptable. Although significant efforts have been made to comply with the requirements of Form 43-101F1, issuers and qualified persons need to further improve their disclosure," warned the OSC in its report.
Miners found non-compliant may be getting a call.
"Issuers should anticipate staff requests for refilings, additional disclosure, or other staff action, where appropriate, if an issuer and qualified person have not fully met the requirements of Form 43-101F1 and NI 43-101."
The OSC summarized the deficiencies it found:
The results of the Review identified frequent disclosure deficiencies, some of which may significantly impact investors.
The significant deficiencies include the following sections of the Technical Report:
• mineral resource estimates
• environmental studies, permitting and social or community impact
• capital and operating costs
• economic analysis
• interpretation and conclusions.
Other sections of the Technical Report where we noted frequent disclosure deficiencies include:
• certificate of the qualified person.