OSC survey finds 40% of Canadian NI 43-101 reports ‘unacceptable’; only 20% are in compliance

A sampling of NI 43-101 Technical Reports filed with Ontario Securities Commission reveals mining investors should not necessarily rely on the documents to be reliable sources of information: only 20% of NI 43-101 reports are actually in compliance; 40% are unacceptable.

OSC survey finds 40% of Canadian NI 43-101 reports ‘unacceptable’

A sampling of NI 43-101 Technical Reports filed with Ontario Securities Commission reveals mining investors should not necessarily rely on the documents to be reliable sources of information.

Author: Dorothy Kosich
Posted: Friday , 28 Jun 2013 RENO (Mineweb) - 
A survey by the Ontario Securities Commission staff has found only 20% of National Instrument 43-101 reports filed by mining and exploration companies with the OSC are actually in compliance, while 40% are unacceptable.
Designed and implemented to protect mining investors, NI 43-101 reports govern all disclosures of any mining-related scientific or technical information—especially mineral resources and reserves—and requires mining and exploration companies to file a technical reported prepared or approved by a “qualified person.”
To be considered a qualified person under NI 43-101, mining engineers or geoscientists must have at least five years of experiences in mineral exploration, mine development or operation or mineral project assessment; and be a member in good standing of a professional engineering or geoscience association.
Commission staff said there were 460 technical reports by 238 Ontario mining issuers filed in SEDAR between June 30, 2011, and June 29, 2012. The scope of the OSC review was limited to a sample of 50 technical reports chosen according to certain characteristics including the main exchange listing of the issuer, the location of the mineral property, type of mineral deposit and the stage of development of the property.
The sample included 27 technical reports listed on the TSX and 16 listed on the TSX-V. Half of the issuers had a market cap of over $25 million with 25% of these having a market cap of greater than $100 million. The majority of the issuers (59%) were at the mineral resource stage. Most of the properties were located in North America (44%) while the largest percentages of the others were located in South Africa (22%) and Africa (20%). The three primary commodities discussed in the NI 43-101 reports were gold (46%0, copper (12%) or iron ore (10%).
Approximately 40% of the Technical Reports had at least one major non-compliance issue, which the OSC considered “unacceptable”.
“We are particularly concerned with the major non-compliance issues noted in the Technical Reports reviewed as these deficiencies may have a significant impact on investors,” said the OSC. “Technical Reports are a key disclosure document for mining issuers and investors and their advisors may place significant reliance and make investment decisions based on the disclosure in Technical Reports.”
The “significant deficient” discovered by the OSC included mineral resource estimates; environmental studies, permitting and social or community impact; capital and operating costs; economic analysis; and interpretation and conclusions.
Other sections of the Technical Report with frequent disclosure deficiencies include: summary; history; and certificate of the qualified person. Mining and exploration companies most frequently had deficiencies in their interpretation and conclusions (38%), histories (28%) and mineral resource estimates (25%).
Of the 19 Technical Reports related to advanced properties, the OSC noted that 37% were not in compliance with their economic analysis, while 32% did not adequately disclose information related to environmental permits or the social or community impacts of developing the mineral project.
The OSC discovered many Technical Reports did not clearly disclose how reasonable prospects for economic extraction were achieved, or what grade was used to estimate the mineral resource.
Capital and operating cost disclosure requirements were also deficient in 26% of the Technical Reports on advanced properties. “In some cases, the main components of the capital cost estimate were not provided,” the commission observed. “In other cases, the Technical Report did not provide justification for how the operating cost estimate was determined or why certain costs were assumed.”
The OSC review also found that 36% of the Technical Report reviewed “did not disclose project specific risks and uncertainties such as the availability of water rights, use of a novel mineral processing technology or the potential impact of a civil war in the region.”

To read a copy of OSC Staff Notice 43-705 Report on Staff’s Review of Technical Reports by Ontario Mining Issuers, go to http://www.osc.gov.on.ca/documents/en/Securities-Category1/sn_20130627_43-705_rpt-tech-rpt-mining-issuers.pdf

Read the article online here: OSC survey finds 40% of Canadian NI 43-101 reports ‘unacceptable’ - MINING FINANCE / INVESTMENT - Mineweb.com Mineweb

Who “murdered” the #gold price? Ian Gordon - Mineweb

The old highs of $1,900/oz will be surpassed by a long shot over the medium to long term.

Who “murdered” the gold price? Ian Gordon

INDEPENDENT VIEWPOINT

Ian Gordon, chairman and founder of the Longwave Group, speculates on what happened to the gold price on April 15, the biggest one-day loss ever for the yellow metal.

Author: Brian Sylvester
Posted: Thursday , 27 Jun 2013 

The Gold Report  - 

The gold price may have taken a tumble, but Ian Gordon, chairman and founder of the Longwave Group in British Columbia, is watching for a recovery. As bullishness in gold reaches some of its lowest levels, Gordon, in this interview with The Gold Report says he believes that is indicative of a turn.

The Gold Report: On April 15, the gold price plunged about 9%—the biggest one-day loss ever for the yellow metal. Many gold investors got "murdered" that day. Has your personal investigation revealed any suspects? 

Ian Gordon: I suspect it was akin to what happened in 1999. The then-governor of the Bank of England, Edward George, supposedly said that "any further rise in the gold price would take down one or more trading houses." He said the rising price of gold was curtailed through the work of the Federal Reserve and the Bank of England. It appears that a bullion bank was caught offside on the short side and they had to take the price of gold down quite dramatically to allow it to cover. 

I think something similar happened in April. I think it was manipulated to the downside. Goldman, Sachs & Co. encouraged its clients to short sell gold two days before this occurred.

TGR: Could it have just been an error?

IG: I always suspect the worst. There's so much manipulation in all the markets as I see it.

TGR: That one-day drop caught even long-time gold investors off guard and shook their confidence. Is being a precious metals investor at this point simply about having the resolve to stay the course, or should even the ardent investors make adjustments to their gold portfolios? 

IG: I'm extremely bullish on gold. Bullishness in gold, according to the website Market Vane, is at 40%, the lowest it has been since 2001. Bullishness in the stock market is at 70%, which is almost the highest it has been since Market Vane began tracking it. I see a reversal occurring here, for the gold price to the upside and the stock market to the downside.

TGR: There's no way to sugar coat the disappointing performance of gold and silver in 2013. But has the current global economic backdrop provided some new and compelling reasons to own gold and precious metal equities? 

IG: There are compelling reasons to be bullish on gold particularly, simply because there is a real worldwide crisis in fiat money. The unfolding crisis is similar to the 1930s, when the whole monetary system collapsed. We're envisioning something quite similar to that collapse is now occurring. 

We can see that there's this huge move to gold, not only by countries like China and Russia and even the small "-stan" countries, but major investors are also taking up the physical metal because they can see this crisis unfolding.

TGR: Most of what I'm reading says that there just aren't a lot of bids in the market right now for precious metals. Investment demand has waned, with gold falling consistently lower since its high in 2011.

IG: Investment demand is huge. The output of American Eagle gold bullion coins by the U.S. Mint is at record highs. Demand by the small investors for gold and silver is at unprecedented levels. The amount of gold that's being imported through Hong Kong into China is at a record level. 

TGR: Yet, at the same time, India, which is the world's biggest gold consumer, increased the royalty from 6% to 8% on gold imports.

IG: It has, but India is notorious for gold smuggling. Most people are going to look for a way to go around those taxes. I suspect that there will be the same amount of gold imported into India through Dubai, but most of it won't be declared.

TGR: You say you're seeing strong demand for the physical metal, but investors have been getting out of exchange-traded funds (ETFs) and equities in mass numbers.

IG: With regards to the gold ETFs, I suspect that many investors are cashing in their paper claims to take possession of the physical. Yes, gold stocks, particularly the juniors, have been slaughtered, but once bullishness returns to gold, bullishness will return to gold equities. When you get this overly bearishness in markets, it's usually indicative of a turn. I'm confident that we're going to see a turn to the upside. I also believe that the turn in the stock market to the downside is about to begin.

TGR: I get the sense that there's a prevailing sentiment that we haven't hit a bottom yet in the mining equity space and that there's another leg down before we see a move to the upside. Do you see that as well?

IG: That is always a possibility and it can't be ruled out, but the precious metals' fundamentals are as compelling today as they have ever been.

TGR: Could it be seasonality due to the summer? 

IG: I don't think so and anyway I am a long-term investor and I am essentially not concerned by short-term price machinations. As I have said, the most compelling reason to own gold is the crippling debt crisis, which has brought about the probability of a catastrophic end to fiat currencies. 

TGR: Sean Boyd recently told Bloomberg that gold could reach about $1,800/ounce ($1,800/oz) within a year. What's your medium-term outlook for gold and silver? 

IG: The market is going to have to go through a consolidation that could last for weeks. However, I'm much more bullish on gold than I am on silver because gold has traditionally been recognized as money sine qua non. Industrial demand is going to drop quite precipitously as the world goes into the depression stage of the cycle. Nevertheless, it is likely that silver will take on the role of poor man's gold.

My belief is we're going to see a decoupling between the paper markets and the physical markets. The demand for physical is going to grow dramatically. It's going to make the paper markets irrelevant.

I'm not sure if it's going to be a year as Sean says, but it's going to be extremely strong and the move will be very dramatic once it starts. The old highs of $1,900/oz will be surpassed by a long shot over the medium to long term.

TGR: Do you think silver will fall below the $20/oz level in the next six months to a year?

IG: We're as oversold as we were in 2008, although the price isn't as low as it was then. I see a consolidation in the price, but I don't forecast much lower prices occurring in either of the precious metals. Once this consolidation is over, I see a resumption of the bull market.

TGR: Is there any good news among the juniors? 

IG: In the junior sphere, you can buy some companies for nearly $10/oz of gold in the ground.

TGR: How do you determine cheap? 

IG: Relative to where it was formerly priced and the value I place on the company's assets. I started to buy gold and silver stocks in 2000 because they were cheap and no one wanted them. We are in the same position in the market today. We know the bullish consensus numbers for gold are at the same levels that they were in 2001. You can buy these things really cheap. 

The only reason anybody wouldn't be buying them is because they don't believe that the price of gold is going to rise. I believe that the price is going to rise substantially because the chaos in the financial markets is going to be horrendous.

TGR: Thanks, Ian.

A globally renowned economic forecaster, author and speaker, Ian Gordon is founder and chairman of the Longwave Group, which comprises two companies—Longwave Analytics and Longwave Strategies. The former specializes in Gordon's ongoing study and analysis of the Longwave Principle originally expounded by Nikolai Kondratiev. With Longwave Strategies, Gordon assists select precious metal companies in financings. Educated in England, Gordon graduated from the Royal Military Academy, Sandhurst. After a few years serving as a platoon commander in a Scottish regiment, he moved to Canada in 1967 and entered the University of Manitoba's History Department. Taking that step has had a profound impact because, during this period, he began to study the historical trends that ultimately provided the foundation for his Longwave theory. Gordon has been publishing his Longwave Analyst website since 1998. Eric Sprott, chairman, CEO and portfolio manager at Sprott Asset Management, describes Gordon as "a rare breed in the investment-adviser arena." He notes that Gordon's forecasts "have taken on a life force of their own and if you care to listen, Gordon will tell you how it will all end." 

This article is an edited version of the original and is republished here courtesy of The Gold Report 

Who “murdered” the gold price? Ian Gordon - INDEPENDENT VIEWPOINT - Mineweb.com Mineweb

Registered #Gold at the #Comex LT Chart on Jesse's Café Américain

Does this mean JPM has been accumulating all the ounces that have been sold out by the GLD ETF held by HSBC?


Jesse's Café Américain: Registered Gold at the Comex Long Term Chart: Someone asked me about this, and while I do not keep a history of it, I found a decent historical chart of the registered gold inventory a...
For your reference the number of registered ounces in the COMEX warehouses yesterday (June 24, 2013) was approximately 1,360,000.