We are not only expert Qualified Persons Peer Reviewers but we also carry out due diligence on public technical reporting of mineral projects under PERC and JORC international codes.
The last Mineral Resource Estimate and Exploration Target made publicly available online has the following PERC Code deficiencies: The disclosure of the estimate of the Exploration Target is potentially misleading.
Clause 6.12: The potential quantity, quality and content, as appropriate, are conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration could result in the determination of a Mineral Resource.
Clause 6.15: If a Public Report includes an Exploration Target, it is a requirement to detail proposed exploration activities designed to test the validity of the Exploration Target and to specify a timeframe within which those activities are expected to be completed.
PERC Reporting Standard 2017
The Competent Person did not follow the following requirement:
- Exploration Target tonnages and grades are conceptual in nature and that it is uncertain if further exploration could result in the estimation of Mineral Resource. The company’s public statement is misleading. It claims that: “the doubling of the Exploration Target, which clearly demonstrate the potential for a mine at Kallak to supply high-quality iron ore over several decades for fossil-free steel production in Sweden”.
- However, this is not true. The company is required to detail proposed exploration activities designed to verify the validity of the Exploration Target as well as specifying a timeframe for completing the proposed activities.
As stated in Exploration Target Guidance to Clause 6, the explanatory text paragraphs should include a brief description of the process used to determine the grade or quality and tonnage ranges used to describe the Exploration Target.
As stated in Exploration Target Guidance to Clause 6, in any subsequent upgraded or modified statements on the Exploration Target, the Competent Person should discuss any material changes to potential scale or quality arising from completed exploration activities.
The Competent Person failed to:
The Competent Person must follow the PERC Code 2017 recommendations and include a brief description of the process used to determine the grade and tonnage ranges estimation of the Exploration Target.