National Instrument 43-101: What Issuers Need To Know About Production Decisions Without A Feasibility Study Or A Pre-Feasibility Study

The decision to commence production at a mineral project is a pivotal milestone for any mining issuer. Typically, a production decision will be made with the support of a technical report prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects  (NI 43-101) that contains a mineral reserve estimate and meets the Canadian Institute of Mining, Metallurgy and Petroleum's CIM Definition Standards for Mineral Resources & Mineral Reserves (CIM Definition Standards) definition of a “preliminary feasibility study” (PFS) or a “feasibility study” (FS). This is because the development of an operation and the decision to commence production involves significant capital expenditures and a high degree of risk and uncertainty, and the support of a comprehensive PFS or FS helps mitigate this risk and uncertainty. To proceed to production without the comprehensive information that would be required for a PFS or an FS precludes the rigorous