An NI 43-101 report is a summary for potential investors of scientific and technical information for a mineral exploration, development, or production project. This report is required for listing on the Toronto Stock Exchange (TSX) and TSXV.
Intended for the investing public and their advisors, who in most cases, are not mining experts, the NI 43-101 technical report is meant to be complete and fair in nature while also being able to be understood by a non-scientific audience. Therefore, the challenge for the qualified person preparing the report is to present relevant information as well as the nature, importance, and limitations of the reporting, within the guidelines of disclosure and while keeping the reports simplified and understandable to a potential investor.
WHAT IS A NI 43-101 REPORT?
A NI 43-101 report, otherwise known as a National Instrument 43-101 Technical report, is a report used to provide a concise and accurate summary of a mineral project, whether in the exploration, development, or production stage. Its purpose is to provide relevant and accurate information that potential investors or their advisors can use to inform investing decisions.
While the NI 43-101 report is required for stock exchanges in Toronto, it is relevant for mineral projects anywhere in the world. Regardless of location, if the mining project intends to list on the TSX or TSXV, it is almost always required to have this report to list on the exchange.
WHAT IS A NI 43-101 REPORT USED FOR?
The purpose of an NI 43-101 report is to summarize the important and relevant technical information to potential investors or advisors for a mineral exploration, development, or production project. Most investors will not have the technical knowledge to understand the more detailed and scientific technical reports; this report is meant to be presented in a way that it can be understood by the applicable audience.
The NI 43-101 report is required for most listings on the TSX and TSXV. Around 43% of the world’s public mining companies are listed on the TSX (Toronto Stock Exchange) and TSXV (TSX Venture Exchange). 42% of all global mining financings in the past 5 years were completed by companies listed on these exchanges, and 35% of all global mining equity capital in the past 5 years were raised by these same companies. Therefore, for most public mining and exploration projects, the NI 43-101 report is a critical part of their financing strategy.
KEY INFORMATION WITHIN AN NI 43-101 REPORT
There are 26 headers in a NI 43-101 report. However, the level of detail under each header is up to the qualified person. However, it is advised that they keep in mind that the intended audience does not have a scientific background and that the report is meant to be a summary. This also means a filing of comprehensive appendixes is not typically necessary.
DISCLOSURE OF MINERAL RESOURCES OR MINERAL RESERVES
One of the key aspects of the NI 43-101 report is the disclosure of mineral resources or mineral reserves. This is basically the part of the report that summarizes the mineral assets available in the project. However, there are important rules about what can and cannot be disclosed—and how—which can be found here. This disclosure within the NI 43-101 report may include the date of estimated resources and reserves, the quantity and grade or quality of each category, key assumptions, parameters, and methods used to estimate the resources and reserves. Later in the report, there will also be a disclosure of any known legal, political, environmental, or other risks that could affect potential development of these resources or reserves.
NAME OF QUALIFIED PERSON
The report must be prepared, supervised, or approved by a qualified person. The name of this person as well as their relationship to the issuer of the report must be disclosed in the NI 43-101 report. This disclosure will also include their title, qualifications, a summary of relevant experience, the name of professional associations to which the qualified person belongs, as well as information about the qualified person’s relationship to the project and responsibilities within the technical report.
DATA VERIFICATION
If the report includes scientific or technical information about a mineral project, then it must disclose whether a qualified person has verified the data disclosed, a description of how the data was verified and any limitations in the verification process, and an explanation of any failure to verify the data.
EXPLORATION INFORMATION
This may include details about any surveys or investigations regarding the property as well as the interpretation of the exploration information. The exploration information disclosure should include QA/QC measures applied, as well as sample, analytical, or testing results.
NI 43-101 OUTLINE
- Summary
- Introduction
- Reliance on Other Experts (if applicable)
- Property Description and Location
- Accessibility, Climate, Local Resources, Infrastructure, and Physiography
- History
- Geological Setting and Mineralization
- Deposit Types
- Exploration
- Drilling
- Sample Preparation, Analyses, and Security
- Data Verification
- Mineral Processing and Metallurgical Testing
- Mineral Resource Estimates
- Mineral Reserve Estimates
- Mining Methods
- Recovery Methods
- Project Infrastructure
- Market Studies and Contracts
- Environmental Studies, Permitting, and Social or Community Impact
- Capital and Operating Costs
- Economic Analysis
- Adjacent Properties
- Other Relevant Data and Information
- Interpretation and Conclusions
- References
FINAL THOUGHTS
Rangefront offers technical reporting services to prepare or supervise the preparation of NI 43-101 reports. For more information about our technical reporting services, reach out to speak with an expert today.
ABOUT THE AUTHOR
BRIAN GOSS
President, Rangefront Mining Services
Brian Goss brings over 20 years of experience in gold and mineral exploration. He is the founder and President of Rangefront, a premier geological services and mining consulting company that caters to a large spectrum of clients in the mining and minerals exploration industries. Brian is also a director of Lithium Corp. (OTCQB: LTUM), an exploration stage company specializing in energy storage minerals and from 2014 to 2017, he fulfilled the role of President and Director of Graphite Corp. (OTCQB: GRPH), an exploration stage that specialized in the development of graphite properties. Prior to founding Rangefront, Brian worked as a staff geologist for Centerra Gold on the REN project, as well as various exploration and development projects in the Western United States and Michigan. Brian Goss holds a Bachelor of Science Degree with a major in Geology from Wayne State University in Michigan.
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