Key recommendations of the task force

* A “Qualified Person” must sign off on all corporate disclosures by mineral exploration companies.

The report defines “Qualified Person” (QP) as a licenced professional, regulated by a professional body with disciplinary powers. The QP must be a formally-educated engineer or geoscientist with at least five years of experience in the industry.

For resource estimates and initial listings, the QP must also be independent of the company.

Currently, the professional engineering societies in Alberta, British Columbia, Newfoundland, Saskatchewan, the Northwest Territories and the Yukon license geoscientists. The Professional Engineers of Ontario recently rejected a proposal to do the same.

* The industry will be expected to follow a set of “best practices” meant to ensure the accuracy and integrity of exploration information.

The report has recommended interim guidelines for exploration and field practices, and would require the Qualified Person to ensure those practices are followed. The industry and professional organizations will be relied upon to develop and update a best-practices code for general use.

Among the practices listed in the interim guidelines are core splitting, maintaining core security and using accredited laboratories for analysis.

* Higher disclosure standards will be demanded.

The task force would demand that news releases, technical reports and annual information forms contain specified details of the technical basis for results and of the legal status of the company’s mineral properties.

The report recommends adoption of the Canadian Institute of Mining, Metallurgy and Petroleum’s guidelines for description of mineral resources and reserves, and permits similar guidelines, such as the Australian and U.S. codes, to be used provided the system is explained.

The task force also endorsed the development of statutory laws providing civil liability for misleading corporate disclosure.

* The task force also calls for uniform securities regulations and stock exchange rules across the country.

The task force stopped short of recommending the formation of a national securities commission, but did call for provincial securities commissions to adopt similar policies, except in the area of listings standards.

The report also calls on governments to provide more resources to securities commissions and police forces to enforce securities regulations and prosecute those involved in fraudulent activities.