NI 43-101 keeps mining companies honest

Mining companies love to tell big stories, but investors want more than just promises.

NI 43-101 makes sure mining companies lay everything on the table, giving investors a clear view of what’s actually going on. It forces companies to back up their bold claims with hard data.

This all started after the Bre-X scandal in the ‘90s, when a company claimed they’d found a massive gold deposit in Indonesia. Stock prices soared, and investors piled in, thinking they were onto a sure thing. But it turned out to be a complete fabrication. The market tanked, and people lost everything. To stop something like that from happening again, Canadian regulators introduced NI 43-101, a rule that says any public information about a mining project has to be verified and based on solid facts, not hype.

What NI 43-101 reports are (and what they’re not)?

NI 43-101 reports sum up the technical and scientific info investors need to see. These reports aren’t meant to drown people in data but to give them a clear, straightforward view of a company’s findings.

If a company drills 40 holes, investors don’t want to sift through every little detail. NI 43-101 makes sure companies give the highlights—the stuff that matters, like the quality and quantity of the minerals found.

The investor only wants to know what the actual results of the drilling are. You’re getting the key points, not the raw, unfiltered data. But don’t confuse these reports with full feasibility studies—they aren’t a deep dive into every aspect of the project. NI 43-101 reports are designed to give you just enough to make informed decisions without being overwhelmed.

When do mining companies need an NI 43-101 report?

Mining companies have to file an NI 43-101 report in a few key situations:

• when they first get listed on a Canadian exchange,
• when they release major assessments like PEAs or Feasibility Studies, or
• when something big changes, like new drilling data that alters their resource estimates.

This rule isn’t just for Canadian companies either. Many mining companies around the world use NI 43-101 standards to build investor trust because it’s become the gold standard for disclosure.

Who prepares NI 43-101 reports?

These reports must be written or approved by a Qualified Person (QP)—someone who knows what they’re doing. For smaller, junior mining companies, the report has to be prepared by an independent QP to make sure there’s no bias. These juniors depend on that independence to win investor confidence. Bigger companies don’t always need an independent QP unless something significant happens, like finding a new mineral zone or buying a new property. In some cases, in-house QPs can handle it, but if a major change happens, independence becomes key.

When does an NI 43-101 report become invalid?

Here’s something important—NI 43-101 reports don’t have an expiration date, but they can become outdated if things change. Maybe commodity prices shift, or new drilling data comes in, changing the outlook of the project. When that happens, the company needs to update the report. Sometimes the stock exchange steps in and says, “You need to give us fresh numbers.” It’s about keeping everything current and making sure investors are getting the most accurate data.

Why NI 43-101 matters for investors?

NI 43-101 is a tool that makes sure investors know what they’re dealing with. It protects them from inflated numbers and empty promises. Without it, companies could talk up their projects all day long, and investors would have no way of knowing what’s real.

NI 43-101 keeps mining companies accountable and builds trust with investors. It’s the line that separates the hype from the facts, and in the mining world, that’s everything.