Plains Creek Phosphate Corp (PCP.V) - clarifications on resources statements

Comment by Objective Capital , Nov 01, 2011
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Plains Creek Phosphate has clarified its formal disclosure at the request of the British Columbia Securities Commission (BCSC), in order to bring its information into full compliance with NI 43-101 standards as required by Canadian-listed companies.

At issue were certain statements, made in corporate presentations, a company fact sheet and on Plains Creek’s company website, pertaining to the resource calculation at the Farim phosphate deposit. Information contained in these documents in some cases failed to break down the resource calculations within the various classifications. According to NI 43-101, inferred resources are not to be added to measured and indicated resources. Rather, they must be listed separately.

Plains Creek has clarified the information concerning its resource, which stands at 68.75 million tonnes measured, averaging 29.88% P2O5, 15.07 million tonnes indicated, averaging 30.06% P2O5, and 43.65 million tonnes, averaging 29.6% P2O5. Further, Plains Creek has clarified that a lower zone at Farim had been inappropriately described as “450 million tonnes of 10-to-15% P2O5”. This zone, although present, has not been delineated to NI 43-101 standards, has not been assessed by a qualified person, as defined under NI 43-101, and is therefore not to be relied upon.

As well, the company did not always list its qualified person(s), in accordance with NI 43-101 requirements. It has now done so.

Objective's view:

Such reviews are an ongoing act of surveillance by the BCSC and it is not unusual for junior companies, especially those based outside of Canada, to be cited for incomplete or improper disclosure against NI 43-101 standards.

Our valuation of Plains Creek, as indicted in our initiation note of June 2011, was based on the detailed information contained in the company’s technical report, which meets NI 43-101 standards. Accordingly, our valuation remains unchanged.