NI 43-101 & SEC S-K 1300 Reader-Evaluator
Automated extraction, geostatistical validation, and risk-scoring of technical reports, feasibility studies, and drill core assay certificates. Audits Qualified Person (QP) liability, detects multi-year "resource creep", enforces strict QA/QC insertion thresholds, and strips unbankable Inferred Resources from cash flow models.
Four Critical Pillars of Geological Due Diligence
Every institutional credit committee requires objective verification of mineral assets before committing debt facilities. AurumIntegrity Core applies rigorous rules to prevent reliance on speculative geological promotional material.
1. Resource Classification & S-K 1300 Gate
STATUTORY GATEUnder SEC Regulation S-K 1300 (Item 1302) and Canadian NI 43-101 standards, mineral resources are strictly separated into Measured, Indicated, and Inferred.
| Category | Geological Confidence | Credit Eligibility |
|---|---|---|
| Proven / Probable Reserves | High geological & economic certainty (FS/PFS backed) | Eligible (70%–80% Advance) |
| Measured & Indicated (M&I) | Sufficient drill spacing to assume continuity | Discounted (40%–50% Advance) |
| Inferred Resources | Speculative; cannot assume geological or grade continuity | Zero Collateral Value |
SEC S-K 1300 Prohibition: The SEC explicitly forbids including Inferred Resources in economic evaluations, discounted cash flows (DCF), or payback calculations. AurumIntegrity Core automatically recalculates NPV with Inferred Resources set to zero.
2. Assay Methods & QA/QC Insertion
LABORATORY GATEDrill core assays must be executed by ISO/IEC 17025 accredited independent commercial laboratories (such as ALS Global, SGS, or Bureau Veritas).
- Fire Assay vs Spectrometry: Gold reserve estimations require classical lead-collection fire assay with gravimetric finish (for high-grade >5 g/t Au) or AAS/ICP finish. Handheld portable XRF gun readings are strictly forbidden for reserve reporting.
- ≥5.0% Certified Reference Material (CRM) Insertion: Standard Operating Procedures (SOP) must demonstrate a minimum 5% insertion rate of blind matrix-matched standards, blanks (coarse silica), and field/pulp duplicates into the sample stream.
- Umpire Laboratory Cross-Checks: A minimum of 5% of randomly selected mineralized pulps must be sent to a secondary independent referee lab. Discrepancies exceeding ±10% relative difference trigger a full geostatistical review.
3. Multi-Year Resource Creep Detection
RED FLAG DETECTORMining operators under pressure frequently expand mineral inventory without proportional new drilling by artificially lowering cut-off grades or altering kriging search ellipsoids.
Our engine scans historical technical reports (years 1 through 5) to flag:
- • Unjustified cut-off grade reductions that inflate tonnage while masking sub-economic rock.
- • Inferred-to-Indicated reclassification without infill drilling density confirmation.
- • Changes in specific gravity (bulk density) assumptions lacking pycnometer lab testing.
4. Qualified Person (QP) Certification
LEGAL ATTESTATIONTechnical reports are legally binding documents attested by a Qualified Person (QP) holding verified credentials (P.Geo., P.Eng., AusIMM, or SME Registered Member).
1. Personal Inspection Date: QP must have personally inspected the site within 12 months of the filing date.
2. Independence Test: In SEC S-K 1300 and NI 43-101 reports, the third-party QP must possess zero equity, royalties, or success fees in the property.
3. Signature & Professional Seal: Digitally signed certificate with verified registration status with relevant professional licensing bodies.
Technical Confidence Score (TCS 0–100)
AurumIntegrity Core calculates a composite Technical Confidence Score (TCS) across 5 geological dimensions to guide credit committees on maximum advance rates.
| Audit Dimension | Weight | Scoring Criteria | Deficiency Penalty |
|---|---|---|---|
| QA/QC & CRM Standards | 25% | ≥5% CRM blanks/duplicates, acceptable bias (≤5%), independent umpire lab | Missing QA/QC caps total TCS at ≤40 (Ineligible) |
| Drill Spacing & Variography | 25% | Geostatistical variogram ranges support continuity; infill drill grid verified | Erratic nuggets or wide spacing forces M&I downgrade |
| Assay Protocol & Metallurgy | 20% | Fire assay with gravimetric finish; representative metallurgical recovery curves | Handheld XRF reliance deducts 100% of assay score |
| QP Independence & Site Visit | 15% | Valid professional seal, zero conflict of interest, documented site inspection | Non-independent QP or missed inspection deducts 15 pts |
| Historical Consistency | 15% | Zero resource creep, stable cut-off grades, verified specific gravity testing | Unexplained reserve jumps trigger red flag review |
Ready to run your geological report through the evaluator?
Upload PDF technical reports, drill databases, and assay certificates for automated screening.