Public Company Reporting Requirements

One mining scandal wiped out $6 billion in investor money. Here's how: In 1997, Bre-X Minerals claimed to have found the "gold discovery of the century" in Indonesia. Their stock exploded from $0.50 to $286 in just 3 years. When independent verification finally happened, they found "insignificant amounts of gold." The gold didn't exist. Core samples had been "salted" with gold dust bought from local Indonesian panners. $6 billion vanished overnight. The smoking gun was hiding in plain sight – in technical reports most investors couldn't understand. This scandal forced Canada to create NI 43-101 – strict standards for mineral project disclosure. But the jargon in these reports can still make or break your investment. Here's what you need to know: 1. Understand mineral resource estimates These come in 3 categories of increasing confidence: • Inferred - Based on limited sampling, lowest confidence • Indicated - More exploration, reasonable confidence • Measured - Most reliable, based on detailed data Resources ≠ guaranteed money. 2. Know the difference between "reserves" and "resources" • Resources = What might be in the ground • Reserves = What's economically mineable Reserves have 2 critical categories: • Probable - Lower confidence • Proven - Highest confidence 3. Grade determines profitability It's the concentration of valuable mineral within the ore. Bre-X reported consistently high gold grades across large areas – which almost never happens naturally. Watch for these warning signs: • Lack of visible minerals despite high reported grades • Unrealistic (and increasing) projections • Suspicious consistency in samples • Unusually perfect conditions Before investing, ask: • Are resource estimates compliant with standards like NI 43-101? • What percentage is classified as Measured vs. Indicated vs. Inferred? • Has an independent qualified person verified the estimates? • Does management have a successful track record? At Power Metallic, transparency is our foundation. Our nickel reports use the NI 43-101 standards created post-Bre-X. For our Lion Zone copper discovery, we're publishing drill collars, assays, and geophysical data in real time – allowing independent analysts to model the deposit as it expands. A formal 43-101 for copper is coming in H2 2026. - Thanks for reading. I’ve spent decades in the trenches—building companies, making discoveries, and fighting for fairness in the markets. Follow me, Terry Lynch for straight talk on exploration, capital markets and creating real value in mining.

JORC CODE REPORTING The JORC Code, is a professional standard used to report Exploration Results, Mineral Resources, and Ore Reserves. It ensures that reports are clear, honest, and reliable for investors and regulators. It’s built on three key principles: Transparency – clearly explain data, methods, and assumptions. Materiality – include all important information that affects understanding. Competence – reports must be signed by a Competent Person (a qualified geologist or engineer with at least 5 years’ relevant experience). Reporting Levels Exploration Results – raw data (drilling, sampling, assays) Mineral Resources – identified mineralization with potential for economic extraction Inferred, Indicated, Measured (increasing confidence) Ore Reserves – economically mineable part of a resource Probable, Proved Main Steps in JORC Reporting Data Collection & QA/QC Gather samples, drilling, assays Apply quality control (blanks, standards, duplicates) Geological Interpretation Build 3D geological model showing rock types, structures, and mineralization. Resource Estimation Use geostatistical methods (kriging, IDW) to estimate grades and tonnages. Resource Classification Classify as Inferred, Indicated, or Measured based on data confidence. Apply Modifying Factors Assess mining, metallurgy, economics, environment, legal, and social aspects. Convert Resources → Reserves. Validation and Peer Review Check for errors and reasonableness. Peer or independent review is often required. JORC Table 1 and Report Preparation Complete the checklist (sampling, drilling, estimation methods, assumptions). Sign off by the Competent Person. Key Points Always report data honestly and completely. Use reliable and verifiable methods. Never upgrade classification without evidence. Keep all assumptions and limitations clear. In short: The JORC Code turns exploration data into credible, investor-trusted reports by ensuring quality, confidence, and responsibility at every step — from the first drillhole to the final reserve statement.

JORC vs NI 43-101: What Every Geologist and Investors Should Know After 22 years in mineral resource evaluation, I’ve worked extensively with both JORC and NI 43-101 reporting codes. While they share the same goal—transparent, reliable disclosure of mineral projects—they differ in structure, terminology, and regulatory oversight. 🔍 JORC (Australia) Principles: Transparency, Materiality, Competence Flexible language, often used in early-stage exploration Strong emphasis on the Competent Person’s judgment 🧾 NI 43-101 (Canada) Legally binding under Canadian securities law Requires strict formatting and disclosure standards The Qualified Person must be independent in many cases 💡 My Take: Understanding both codes isn’t just about compliance—it’s about building trust with investors, regulators, and communities. I’ve seen projects succeed or stall based on how well these frameworks were applied. ✅ Tip for juniors: Learn the nuances early. Your technical skills are only as valuable as your ability to communicate them clearly and credibly. 💼 Tips for Investors: Don’t just look at the numbers—look at the reporting code behind them. A JORC Inferred Resource is not the same as a NI 43-101 Measured Resource. Ask who the Competent or Qualified Person is. Their experience and independence matter. Be cautious with early-stage reports that lack rigorous disclosure. Transparency is key to long-term value. I'm curious to hear from others: 👉 What’s your biggest challenge when working with JORC or NI 43-101?

🪨 GEOLOGICAL REPORT PREPARATION – Field Rules under JORC & NI 43-101 Codes A true geological report is not a theoretical document — it’s the story of the earth told with evidence, structure, and integrity. Whether under JORC (Australasia) or NI 43-101 (Canada), every report must reflect what was actually seen, measured, and validated in the field. JORC CODE – Field-Based Geological Reporting Rules 1️⃣ Log what you see, not what you think. Record lithology, texture, structure, color, and mineralization as observed. 2️⃣ Maintain strict chain of custody for all samples with GPS, signatures, and photos. 3️⃣ Use consistent lithological codes across logs, maps, and sections. 4️⃣ Accurate coordinates and RLs are critical — use differential GPS. 5️⃣ Show field evidence for each geological boundary or contact. 6️⃣ Verify core recovery and RQD; photograph every box with hole ID. 7️⃣ Mark sample intervals clearly on core and confirm before dispatch. 8️⃣ Include QA/QC checks – blanks, duplicates, standards. 9️⃣ Provide local geological context, not textbook terminology. 🔟 Report must be signed by a Competent Person (CP) with ≥5 years’ relevant experience. NI 43-101 CODE – Field-Based Geological Reporting Rules 1️⃣ All observations must be verifiable – field photos, GPS logs, and raw sheets. 2️⃣ Describe exploration methods – drill type, diameter, recovery %, sampling spacing. 3️⃣ Keep hand logs consistent with digital data; no mismatched entries. 4️⃣ Record true structural readings with measured bearings and dips. 5️⃣ Report all results, including barren or failed holes – transparency is key. 6️⃣ Describe alteration and mineralization in field terms, not academic phrases. 7️⃣ Validate data through QA/QC summaries (duplicates, standards, blanks). 8️⃣ Maintain geospatial consistency – all holes and samples properly plotted. 9️⃣ Present interpretations backed by field sketches and photos. 🔟 Report must be certified by a Qualified Person (QP) who approves public disclosure. Field Realities to Always Remember 🪶 Describe before you interpret. 📸 Support everything with photos. 📏 Keep data consistent across logs, assays, and coordinates. 🧪 Include QA/QC results transparently. 🌍 Match your deposit model with real field evidence. 📚 Use metric units consistently and maintain raw field data. 🧑🏭 No anonymous reports — sign-off by CP or QP is mandatory. 💎 Materiality & Transparency are your guiding principles. In exploration, credibility begins at the outcrop and ends with accurate reporting. The best reports aren’t written in offices — they’re born in the field. #Geology #ExplorationGeology #JORC #NI43101 #FieldGeology #MiningStandards #GeologicalReporting #CoreLogging #MineralExploration #Geoscience #QAQC #CompetentPerson #QualifiedPerson #MiningIndustry #TransparencyInMining #GeologicalData #MineralResources #GeologistLife #FieldBasedKnowledge #geologistjobs #miningjobs #engineeringjobs #australia #canada #india #africa #mining #geology

📘 Guidelines for Technical Studies in Mining Projects A structured framework for de-risking and advancing mining projects This document presents a disciplined approach to mineral project development through the three key study phases: Scoping Study, Pre-Feasibility Study (PFS), and Feasibility Study (FS). Each phase progressively enhances the level of geological confidence, engineering definition, cost accuracy, and investment readiness. 🔍 Key areas covered: ▪️ Resource classification: Inferred → Indicated → Measured ▪️ Mine design & scheduling: From conceptual layouts to detailed monthly plans ▪️ Geotechnical & metallurgical inputs: Including pilot-scale testing ▪️ Capital & operating cost estimation: In line with AACE RP 47R-11 standards ▪️ Financial analysis: Includes Cut-Off Grade, NPV, IRR, and Break-Even Grade ▪️ Permitting, ESG & stakeholder engagement: Embedded throughout all phases ▪️ Full alignment with JORC (2012), NI 43-101, SAMREC/SAMVAL, VALMIN This guideline supports the delivery of technically robust, economically defensible, and internationally compliant studies—serving as a vital reference for geologists, mining engineers, analysts, and decision-makers. 📎 PDF attached for industry professionals involved in advancing mining projects from concept to execution. #MiningProjects #FeasibilityStudy #TechnicalStudies #ScopingStudy #PFS #JORC #NI43101 #VALMIN #AACE #MineDesign #NPV #IRR #CutOffGrade #CostEstimation #ResourceEstimation #Geology #MiningEngineering #MineralValuation #ESG #ProjectDevelopment