We have received numerous inquiries regarding the recent NI43-101 non-compliant public disclosure made by Abitibi Metals Corp. on social media and the issuer website. Our Qualified Persons Peer Reviewers have conducted a comprehensive review of the public disclosure and have identified the following misleading public reporting. CuEq and ZnEq

CuEq and ZnEq

Without considering metallurgical recoveries, an equivalent grade overstates the amount of metal that may eventually be obtained. The issuer has disclosed equivalents grades calculated entirely by price-weighting. Price-weighting without taking the differential metallurgical recovery of each element into account is misleading. In presenting both CuEq and ZnEq and providing the footnote below it.

The lack of metallurgical recovery is a significant omission. It is important to note that not all metals will be present in the same concentrate, such as Cu or Zn concentrates. Furthermore, the company has stated that the comparison of gross in situ metal value is restricted by s. 2.3(1)(c) of NI 43-101.
Both the Copper and Zinc Equivalents calculations assume 100% metallurgical recoveries rates of metals, which is a misleading assumption. It is misleading to report meaningless equivalents values when 100% metallurgical recovery rates are not accounted for. Such reporting is potentially misleading due to the sum of all assays, including those that may not be recoverables. Furthermore, it is misleading to present equivalent grades used to turn one type of deposit into another. For example, disclosing a CuEq grade for zinc mineralization with very minor copper content. Table 1 of the press release shows that the Ramob Ag-Zn zone calculated CuEq of 2.68 and 3.49 for the indicated and inferred mineral resource estimate, respectively. However, the reported Cu grade is almost zero.

CIM Best Practice Guidelines

CIM’s guidance on metal equivalents is clear: use of a grade equivalent or a value parameter should be for the sole purpose of preparing the outlines of potentially economic mineralization.

Want to know more?

Contact us to discuss your challenges with mineral projects public disclosure in all jurisdictions worldwide.