Thursday 28th August 2014

Resource Clips


Week in review

A mining and exploration retrospect for January 19 to 25, 2013

by Greg Klein

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Canadian company’s employees still held hostage in Colombia

Kidnappers continue to hold five workers abducted from Braeval Mining’s TSX:BVL Snow Mine project in Colombia. According to a Thursday story in Colombia Reports, two Colombian hostages are being held separately from two Peruvians and a Canadian. The government has offered a cash reward while the army said it has 2,700 soldiers searching for the victims.

A Monday Colombia Reports article said soldiers had arrested three of the 20 to 25 kidnappers. The story gave the victims’ names as Canadian Jernoc Wobert, Peruvians Jose Manami and Javier Ochoa, and Colombians William Batista and Manuel Francisco Zabaleta.

Rebels abducted them on January 18 in northern Colombia’s Bolivar department. Among grievances cited by the kidnappers, the National Liberation Army (ELN) listed unequal distribution of mining rights, stated Colombia Reports.

Most Mali operations safe so far

A mining and exploration retrospect

“If you are still in Mali, you should leave immediately,” Canada’s Foreign Affairs department warned on Sunday. But Tuesday’s Toronto Star reported that work continues in most of southwestern Mali’s mining operations while French-led forces battle rebels hundreds of kilometres away. Over 15 Canadian exploration and mining companies operate in the country although some, especially in the northeast, have suspended work.

Endeavour Mining TSX:EDV Neil Woodyer described the turmoil as “part of the nature of the beast, as far as we’re concerned, being miners.” But his company’s properties, like most of Mali’s advanced-stage projects and operating mines, are in the southwest.

Mali is Africa’s third-largest gold-mining country, the Star reported. According to a 2008 estimate cited by the CBC, about 17% of the country’s government revenue comes from gold mining.

BCSC finds sloppy disclosures an ongoing problem

NI 43-101 regulations govern not only news releases and technical reports but also company Web sites, speeches, corporate presentations and other communications considered to be voluntary disclosures. But that fact sometimes slips the minds of company officials.

Of a sample of companies reviewed by the British Columbia Securities Commission between 2009 and 2012, only half met 43-101 standards in their voluntary disclosures. According to the BCSC 2012 Mining Report released Thursday, the problem is especially apparent when reporting PEA results, historic estimates, quality control, lab procedures and identifying the qualified person who takes responsibility for the information.

Yet compliance in non-voluntary disclosures is hardly reassuring. Only 65% of companies made the 43-101 grade. PEAs were especially problematic, flunking out in more than half of all cases for both voluntary and compulsory disclosures. A lack of cautionary language was the most frequent reason.

Non-compliant data verification, resource and reserve estimates, pre‐feas and feasibility studies also raised concerns. A common problem with resource estimates was totalling all categories instead of segregating the inferred numbers.

Among other monitoring activities, the commission targeted 82 companies between February 2011 and September 2012 that were selected because of “poor disclosure we observe in e-mail blasts, news releases and paid promotions on industry‐related Web sites,” the report stated.

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