Disclosure decisions gone wrong
|Area||Corporate and Commercial|
Article originally published in the Canadian Lawyer Magazine, June 2018
Excerpt from "Disclosure decisions gone wrong":
The annals of unfortunate questions are deeper for the experience of Pretium Resources Inc. reflected in the recent Ontario Superior Court decision in Wong v. Pretium Resources Inc. Pretium had conducted a mineral exploration program at its Brucejack property and hired a wellknown consultant to review the results and to produce a mineral resource estimate. That estimate was used as the basis for a feasibility study, which concluded that Brucejack contained economically recoverable mineral reserves capable of supporting a successful mining operation. To support that underlying estimate, Pretium hired a second consultant to conduct milling and testing of a bulk sample from the property. Unfortunately, capacity at a mill couldn’t be timely secured, so, while waiting, the consultant conducted tests on a small part of the bulk sample using the “sample tower testing method.” This method is less reliable because it depends on the representativeness of the sample(s) used.