Canadian Securities Administrators Note Misuse Of ''Preliminary Economic Assessments'' In Mining Projects

In Staff Notice 43-307 (the Notice), the Canadian Securities Administrators (the CSA) identify a number of issues and deficiencies they have been seeing in relation to revised National Instrument 43-101 - Standards of Disclosure for Mineral Projects (NI 43-101), which came into force last year. In particular, the CSA has seen problems with the use of "preliminary economic assessment" reports (PEAs). The Notice discusses these issues, notes the CSA's stance on each issue and describes the consequences for issuers found to have these deficiencies.

Highlights

The CSA identifies a number of issues they have observed since the revisions to NI 43-101 came into effect:

• a PEA being used as a substitute for a pre-feasibility study (PFS);