Take physic, pomp

Drilling results requirements

An interesting mail received from reader ‘MR’ last week, so rather than try and claim the idea as original let’s reprint the whole thing below (bar the name) and let you think about it:

Hi Otto,

Love your blog. Thought I would send this along, as this will certainly perk up some ears on your more technically minded readers. NI43-101 requirements changed in June 2011, and of the more significant changes is this:

Requirements Applicable to Written Disclosure of Exploration Information
(1) If an issuer discloses in writing exploration information about a mineral project on a property material to the issuer, the issuer must include in the written disclosure a summary of
(a) the material results of surveys and investigations regarding the property;
(b) the interpretation of the exploration information; and
(c) the quality assurance program and quality control measures applied during the execution of the work being reported on.
(2) If an issuer discloses in writing sample, analytical or testing results on a property material to the issuer, the issuer must include in the written disclosure, with respect to the results being disclosed,
(a) the location and type of the samples;
(b) the location, azimuth, and dip of the drill holes and the depth of the sample intervals;
(c) a summary of the relevant analytical values, widths, and to the extent known, the true widths of the mineralized zone;
(d) the results of any significantly higher grade intervals within a lower grade intersection;
(e) any drilling, sampling, recovery, or other factors that could materially affect the accuracy or reliability of the data referred to in this subsection; and
(f) a summary description of the type of analytical or testing procedures utilized, sample size, the name and location of each analytical or testing laboratory used, and any relationship of the laboratory to the issuer.
In other words, any TSX or TSX-V listed company that is putting out drill results in press releases must include the location, azimuth, dip, and intersected depths. Most juniors I have seen so far are not yet in compliance, but this is especially pertinent to those sophisticated investors (or institutions) with 3D modelling software who can effectively make estimate block models. If the juniors aren’t doing this yet, there’s no hurt in sending them a gentle reminder so we can make more educated decisions about projects.
Here’s the full text:

Cheers, MR
IKN back and MR has made a very good point here. I mean, check all the NRs out this morning with drill results, do you see any azimuth data here? What about this mixed salad of obfuscation here that’s seen the stock shoot up 37% at the bell?
The real question, however, is just why the asleep-at-the-wheel toothless agents at the Canadian authorities that are supposed to audit one of the shadiest markets in the world aren’t bothering to impose their own, brand new minted rules.

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