The U.S. Securities and Exchange Commission has rescinded Guide 7, which effectively had not been modified for more than 30 years, and replaced it with rules generally following CRIRSCO principles for public reporting of exploration results, mineral resources and ore reserves. The new rules, for the first time, introduce a requirement for technical reports to be prepared by a Qualified Person, provide specific indemnities for Qualified Persons and include a definition for what constitutes materiality used to determine which companies need to comply with the new rules and the level of detail required in reports. The new rules also set out how mineral resources should be reported in conjunction with ore reserves and how prices used in economic analysis should be determined and reported. The changes will reduce the compliance burden of dual-listed companies by aligning reporting requirements in the U.S.A. with other jurisdictions. AIPG appears to meet the requirements of a “recognised professional organisation” whose members are able to prepare reports in compliance with the new rules.
AIPG welcomes the SEC announcement which brings the U.S.A. closer to countries with effective, transparent and material codes for exploration result, mineral resource and ore reserve reporting that provide informed investors with a basis for sound mineral asset investment decisions. The new rules also provide an opportunity for Australian geoscientists, experienced in the application of the JORC Code and Canada's National Instrument NI 43-101, to share their knowledge and experience with their U.S. counterparts.
Here are the new rules: https://www.sec.gov/rules/final/2018/33-10570.pdf
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