5
Qualified Person
(1)
The term “Qualified Person” refers to an individual who is an engineer or geoscientist
with at least five years of experience in mineral exploration, mine development or
operation or mineral project assessment, or any combination of these, and has
experience relevant to the subject matter of the mineral project, and the technical
report and is a member in good standing of a professional association.
SEC Industry Guide 7 Definitions
Reserve
The term “Reserve” refers to that part of a mineral deposit that could be economically and
legally extracted or produced at the time of the reserve determination. Reserves must be
supported by a feasibility study
(2)
done to bankable standards that demonstrates their
economic extraction (“bankable standards” implies that the confidence attached to the costs
and achievements developed in the study is sufficient for the project to be eligible for
external debt financing). A reserve includes adjustments to the in-situ tonnes and grade to
include diluting materials and allowances for losses that might occur when the material is
mined.
Proven Reserve
The term “Proven Reserve” refers to reserves for which (a) quantity is computed from
dimensions revealed in outcrops, trenches, workings or drill holes; grade and/or quality are
computed from the results of detailed sampling and (b) the sites for inspection, sampling and
measurement are spaced so closely and the geologic character is so well-defined that size,
shape, depth and mineral content of reserves are well established.
Probable Reserve
The term “Probable Reserve” refers to reserves for which quantity and grade and/or quality
are computed from information similar to that used for proven (measured) reserves, but the
sites for inspection, sampling and measurement are farther apart or are otherwise less
adequately spaced. The degree of assurance, although lower than that for proven reserves, is
high enough to assume continuity between points of observation.
Mineralized Material
(3)
The term “Mineralized Material” refers to material that is not included in the reserve as it
does not meet all of the criteria for adequate demonstration for economic or legal extraction.
Non-Reserves
The term “Non-Reserves” refers to mineralized material that is not included in the reserve as
it does not meet all of the criteria for adequate demonstration for economic or legal
extraction.
Exploration Stage
An “Exploration Stage” prospect is one that is not in either the development or production
stage.
Development Stage
A “Development Stage” project is one that is undergoing preparation of an established
commercially mineable deposit for ore extraction but that is not yet in production. This stage
occurs after completion of a feasibility study.
Production Stage
A “Production Stage” project is actively engaged in the process of extraction and
beneficiation of Mineral Reserves to produce a marketable metal or mineral product.
(1) SEC Industry Guide 7 does not require designation of a Qualified Person.
(2) For SEC Industry Guide 7 purposes, the feasibility study must include adequate information on mining,
processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that
economic extraction is justified.
(3) This category is substantially equivalent to the combined categories of Measured Mineral Resource and
Indicated Mineral Resource specified in NI 43-101.
