Sunday 4th December 2016

Resource Clips


Year in review: Part I

Previous Page 1 | 2

43 one-oh-what?

Spring 2012 began a cross-Canada crackdown on NI 43-101 non-compliance. A flurry of news releases from securities commissions and the companies themselves revealed numerous transgressions including unsupported economic analyses, insufficient info on technical reports, non-43-101 terminology, lack of cautionary statements, lack of a qualified person, lack of an independent qualified person and other failings. As a result, dozens of companies were forced to withdraw and revise resource estimates, PEAs and other technical reports, in some cases facing cease trade orders.

I really don’t give a %@&* what markets do until after the New Year.—Peter Grandich

Although most malefactors were caught by the British Columbia Securities Commission, spokesperson Richard Gilhooley doesn’t like the word “crackdown.” But, he tells ResourceClips, “there certainly was a review.” He says problems come to BCSC attention through “complaints, continuous disclosure review audits, reviewable filings, certain investor relations activities and we do monitor market activity. We’ve got three geologists who review technical reports, among other things.”

The great big Barkerville boast

Reading all those technical reports sounds like an excruciating job. But there must be moments of levity. That was one of the responses, at least from some observers outside the BCSC, to Barkerville Gold Mines’ TSXV:BGM June 29 resource estimate. According to that report, the Cariboo Gold Project in B.C. had an indicated 10.63 million gold ounces and a much, much higher, although admittedly non-43-101, “total geological potential.”

In a detailed Exploration Insights analysis (republished here), Brent Cook stated there’s no doubt “that there is gold there or that there may be a decent deposit at Cariboo.” But he concluded that the report itself was “crap.”

On August 14, one day after formal filing by Barkerville, the BCSC threw down a cease trade order. It’s been in place ever since. The company engaged Snowden Mining Industry Consultants to produce a revised resource but missed a November target date. Barkerville goes to court in January to fight a shareholder’s petition for a special meeting and early AGM.

If you can’t say anything nice…

Don’t say anything about VMS Ventures TSXV:VMS. That’s one company that’s not going to take it anymore.

On November 30 the company announced it tracked down an anonymous shareholder who had been dissing VMS on the Stockhouse bullboard. VMS also received court orders to obtain identities of two others. The first commentator, a self-described “average joe” with 55,000 shares, posted a formal apology after first having it vetted by VMS lawyers.

Read Part II of Year in Review.

Previous Page 1 | 2

Pages: 1 2


Comments are closed.

Share | rss feed

View All: Feature Articles