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Securities and Exchange Commission  

Representatives of SME’s Resources and Reserves Committee and SME staff met with the Securities and Exchange Commission to discuss continued differences between the SEC’s Industry Guide 7 (IG7) and the SME Guide for Reporting Exploration Results, and to identify common areas of interest regarding resource and reserve reporting by publicly traded companies. The SEC’s IG7 on mineral resources and reserve reporting has not been updated since its original publication in 1982. The SME Guide was originally published in 1992, updated in 1999, and reissued in 2007, which reflected the recommendations made to, yet not acted upon by, the SEC.


U.S.-based mining companies must follow the requirements of IG7, which only provides for declaration of Proven and Probable Reserves in Form 10-K SEC filings, which are used to provide public disclosure. The SEC does not generally recognize other codes for reporting. In general, foreign companies domiciled outside the U.S. report using the CRIRSCO family of codes. These provide for reporting exploration information and measured, indicated and inferred mineral resources in addition to proven and probable reserves. This provides for more transparent and material disclosure, particularly for mineral resources and, in turn, has an impact on decisions as to which international stock exchanges will be chosen for listing.

At this December 2011 meeting, the SEC agreed to caucus amongst the agency participants and to establish an internal timeline to determine a course of action for these issues. No deadline was given for these internal discussions. The SEC stated that while it makes practical sense to update IG7, this issue is not a current priority for the agency. Updating IG7 would most likely require rulemaking.


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