Abstract
Authors: Dr. G. Gosson, P.Geo., Technical Director with Wood PLC; Ms. S. Searston, SME RM, Principal Geologist with Mine Technical Services
Item 1305 Internal Controls Disclosure requires a registrant to describe their internal controls used in their exploration and mineral resource and mineral reserve efforts.
In this presentation, the authors will show from a qualified person’s perspective how a registrant’s internal controls on mineral resource and reserve estimation:
- fits well into the COSO framework for Corporate Governance where internal control is a process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance.
- is complimentary to:
- Section 404 of the Sarbanes-Oxley Act where public mining companies are required in their annual report to state the responsibility of management for establishing and maintaining an adequate internal control structure and procedures for financial reporting; and
- NI 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings on additional disclosure necessary to provide investors with a materially accurate and complete picture of financial condition, results of operations and cash flows
- should address the issuer’s financial auditor’s requirements for tests on the effectiveness of the internal controls over the mineral resource and mineral reserve estimation process, and
- form part of the professional practice guideline requirements for a documented process to confirm that the professional engineering or professional geoscience work is complete, meets all input requirements, and is suitable for its intended use or purpose.