Canadian securities regulators seek input on disclosure standards for mineral projects

  • Securities - CSA Image

Apr 14, 2022

On April 14, 2022, the Staff of the Canadian Securities Administrators (CSA) published CSA Consultation Paper 43-401 "Consultation on National Instrument 43-101 Standards of Disclosure for Mineral Projects" seeking comments on Canada’s standards for disclosing scientific and technical information about mineral projects, as they consider ways to update and enhance those requirements. Comments are requested by July 13, 2022.

The CSA continually monitors the mineral disclosure requirements in NI 43-101, and has gathered data showing deficiencies in technical report disclosure identified through continuous disclosure reviews, prospectus reviews, and targeted issue-oriented reviews. These deficiencies include:

  • improper self-assessment by report authors of their independence, competence, expertise or relevant experience;
  • poor quality of scientific and technical disclosure for early stage exploration properties related to new stock exchange listings;
  • inadequate mineral resource estimation disclosure, including disclosure related to reasonable prospects for eventual economic extraction;
  • misuse of preliminary economic assessments; and inadequate disclosure of all business risks.

The consultation paper is seeking general comments and asking specific questions touching on a wide range of issues, including:

  • the application of innovative technologies to the requirement that a technical report author conduct a current personal inspection of a mineral project,
  • verification of data from previous property owners,
  • the broad, undefined range of precision of a preliminary economic assessment,
  • the independence of and qualifications for technical report authors,
  • disclosure requirements related to environmental matters, and
  • disclosure of the risks and uncertainties that arise as a result of the rights of Indigenous Peoples.

Review the following additional information:

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.