SEC (United States) - Industry Guide 7 - Description of Property by Issuers Engaged or to be Engaged in Significant Mining Operations

"Industry Guide 7 contains the Securities and Exchange Commission’s basic mining disclosure policy. It provides guidance for Registrants on various matters including the definition and disclosure of proven and probable reserves and the definitions of exploration, development and production stages. The definitions and disclosure instructions contained in this Guide apply to all public mining entities and their public disclosures. As NI 43-101 is law in Canada, the SEC allows mineral resources and mineral reserves prepared under CIM Definition Standards for issuers that are reporting in Canada but are also registered with the SEC. The SEC places conditions on the disclosure of these estimates. US shareholders are cautioned that the requirements under NI 43-101 and the CIM Definition Standards differ significantly from those of Industry Guide 7.Note: this Guide contains the Commission's basic mining disclosure policy. The definitions and disclosure instructions contained in this Guide apply to all public mining entities and their public disclosures pursuant to the rules of Regulation S-K. Questions regarding the application of these definitions and rules to specific situations should be asked of the Commission's mining engineers or geologists at either the Office of Engineering, Division of Corporation Finance, 202-272-3252, or the Branch of Geology, Central Regional Office, 303-844-1000.(a) Definitions. The following definitions apply to registrants engaged or to be engaged in significant mining operations:(1) Reserve. That part of a mineral deposit which could be economically and legally extracted or produced at the time of the reserve determination.Note: Reserves are customarily stated in terms of DoreD when dealing with metalliferous minerals; when other materials such as coal, oil shale, tar, sands, limestone, etc. are involved, an appropriate term such as Drecoverable coalD may be substituted.(2) Proven (Measured) Reserves. 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.(3) Probable (Indicated) Reserves. 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 (measured) reserves, is high enough to assume continuity between points of observation.(4)(i) Exploration StageDincludes all issuers engaged in the search for mineral deposit (reserves) which are not in either the development or production stage."