Northern Dynasty Minerals Ltd T.NDM

NI Reserve vs SEC Guide 7 (NI “Reserve” is acceptable)

[RealityCheck123]

https://www.lexology.com/library/detail.aspx?g=5d4ed9d7-3375-49de-9e06-6b8bccb8b4bf

https://www.tsx.com/resource/en/97

In Canada, disclosure of mineral reserve and mineral resource estimates is governed by National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101). The equivalent reporting regime in the United States is the U.S. Securities and Exchange Commission’s (SEC) Industry Guide 7 (Guide 7). While many of the terms and concepts used by these two instruments are similar, these regimes are not harmonized and contain a number of substantive differences. Guide 7 is generally more conservative than NI 43-101 in what is permitted to be disclosed in a company’s annual reports, registration statements and other public documents. For example, under Guide 7 mineralization is not permitted to be classified as “proven” or “probable” reserves until a “final” or “bankable” feasibility study has been conducted and all necessary permits, including environmental permits, are in hand (or their issuance is imminent). In contrast, under NI 43-101, mineral reserves are the economically mineable part of a measured or indicated mineral resource demonstrated by at least a preliminary feasibility study and at least a reasonable expectation that governmental approvals will be provided. NI 43-101 also provides for the disclosure of “measured,” “indicated” or “inferred” mineral resources. In general terms, measured and indicated mineral resources are categories of mineralization that have reasonable prospects for economic extraction but have not been demonstrated to be economically mineable as is required to constitute a mineral reserve under NI 43-101 or reserves under Guide 7.

Inferred mineral resources have less certainty as to quantity and grade than measured and indicated mineral resources. Disclosure of these types of mineral resources is generally prohibited by U.S. rules, though in limited circumstances Guide 7, as applied by the SEC, does allow the disclosure of “mineralized material,” which generally includes any mineralization of existing or potential economic significance that does not qualify as a proven or probable reserve.

*****These differences may lead Canadian mining companies to believe that compliance with applicable reporting requirements is complicated, and that listing their securities on a U.S. exchange is therefore overly burdensome. In practice, under the Multi-Jurisdictional Disclosure System (MJDS) Canadian mining companies can publicly sell their securities in the United States and list them on a U.S. exchange without complying with the Guide 7 requirements.

[paths]

Interesting, thanks, this says they do not have to recalculate to US guidelines to list as NAK in the US. However, they do have to comply with Canada, and to use the category "Proven Mineral Reserve" that "implies a high degree of confidence in the Modifying Factors", which includes governmental factors. Without the permits in hand, reading the document sugggests to me they

[RealityCheck123]

After all the environmental, regulatory, and engineering information collected there appears to be no reason why a Preliminary Feasibility Study/Feasibility Study or similar document, which is compliant, with appropriate language, cannot be completed and general results disclosed to the public stating "ore, reserve, ore reserve, mineral reserve, proven and probable classification", etc.

[paths]

They would have done that several times by now, however, lawyers would prevent them from releasing it, for all the reasons we already discussed. An older version has been done already, 2014 Rio Tinto, it takes some time to find, I should have bookmarked it. It may be easier to find by searching for words that would be in the text. Nak would not be the operator so any feasibility study they did

[RealityCheck123]

Maybe yes, maybe no.  No confirmed economic reserve.  Feasibility meeting Canadian standard or caveated US feasibility.  At least a potential JV partner would have something to review irrespective what they do with the study.  Without an established reserve your numbers are meaningless.  Stock at $0.85.