SEC SK-1300 RESOURCE / RESERVE ESTIMATION
Are your ready for SK-1300?
Agapito Associates LLC is offering a free 5-hour readiness review to help the mining industry prepare for the new SK-1300 requirements.
Click here to receive your free 5-hour readiness review.
In response to three decades of joint advocacy with the Society of Mining Engineers & Exploration (SME) and the National Mining Association, the United States Securities and Exchange Commission (SEC) adopted regulatory amendments, effective February 25, 2019, to modernize the property disclosure requirements of mining registrants. The amendments are intended to provide investors with a more comprehensive understanding of a registrant’s mining properties, which should help them make more informed investment decisions. Industry Guide 7 will be rescinded and the mining property disclosure requirements moved to a new subpart of Regulation S-K 1300. Registrants engaged in mining operations must comply with the final rule amendments for the first fiscal year beginning on or after January 1, 2021. This change is significant in the impact to the individuals responsible for reporting resources and reserves.
All US SEC registrants that show “Materiality” shall report all aspects relating to the Exploration Information, Mineral Resources, or Mineral Reserves on which the audience of a publicly traded company report and shall include a balanced discussion of the uncertainties and risks associated with the Resource and Reserves estimate. S-K 1300 reporting will be by a Qualified Person (QP), defined as a suitably qualified and experienced mining industry professional(s) who is either a Registered Member of the SME or an eligible member of another Recognized Professional Organization (RPO) subject to an enforceable professional code of ethics and rules of conduct.
Agapito Associates’ staff have carefully reviewed the new S-K 1300 rules, focusing on the required content for technical reports and the QPs role in the report preparation. We can provide our clients with detailed coverage of the required disclosures and the estimation of engineering and geologic detail such as data validation, commodity pricing, capital and operating cost, cut-off grade, and criteria for resource and reserve classification.
Dr. Susan Patton has already provided training on this subject at the
- Concept evaluation
- Mining method selection
- Preliminary selection of mining equipment
- Due diligence of maturing projects
- Mine and process planning
- Evaluation of infrastructure needs
- Assessment of adequacy of the resource base
- Recommendation for additional exploration drilling and core analysis
- Evaluation of permitting requirements
- Preparation of 43-101 compliant Technical Report on resource
- Risk assessment
- Fatal flaw analysis
- Capital and operating cost estimation
- Financial analysis
