A promising licence is not enough to convince an investor. What makes the difference is the ability to present results to a recognised standard. The two most widely used references in the world are NI 43-101 and the JORC Code.
Two codes, one family
NI 43-101 is the Canadian rule on disclosure for mineral projects. It applies to reporting issuers in Canada, including companies listed on the Toronto exchanges (TSX and TSX-V), and relies on the CIM Definition Standards. The JORC Code is the Australasian reference, mandatory for companies listed in Australia and New Zealand. The definitions of both systems are aligned with the international CRIRSCO template, and the JORC Code rests explicitly on three principles: transparency, materiality and competence.
The qualified person
All published scientific and technical information must be based on the work of a Qualified Person (NI 43-101) or a Competent Person (JORC), who takes responsibility for it. In both cases this is a professional in good standing with a recognised body, with at least five years of experience and experience relevant to the deposit type and the work in question.
Resources and reserves: do not confuse them
Mineral resources are classified in three categories of increasing confidence: inferred, indicated and measured. Reserves, probable and proven ("proved" in JORC terms), only exist once modifying factors are applied: mining, processing, infrastructure, economic, legal, environmental and social factors, among others. A resource is not a reserve, and an informed investor knows the difference.
What makes an estimate defensible
Compliance cannot be improvised when the report is being written. It rests on data gathered from the very start of the project:
- accurate locations for drill holes and samples;
- geological logging that is consistent from hole to hole;
- QA/QC protocols with standards, blanks and duplicates;
- density measurements and sample chain of custody.
Historical data without quality control often has to be revalidated, sometimes by new drilling. That is lost time and budget.
For a project in Morocco
A Moroccan licence may attract a foreign partner or a listed company. In that case, data quality becomes an asset in its own right: it is what will eventually allow a technical report the markets accept. We design our field programmes with that goal in mind, from the first campaign.
