An audit conducted by the British Columbia Securities Commission shows an average decline in compliance with national standards meant to ensure the information mining companies are disclosing about mineral deposits is truthful and accurate. The commission reports a random audit of 40 British Columbia-based mining issuers found that just 61 percent were compliant with those standards in fiscal 2009/10. This, after reviewing their filed disclosures. By comparison, that rate was 73 percent in fiscal 2008/09 and 74 percent in fiscal 2007/08.
In an interview with Public Eye, the commission's corporate finance director Martin Eady attributed the decline to the hot mining market.
"There's a lot of new players in the marketplace, there's a lot of inexperienced players - people who have not experienced a market boom before - and also there's people who have come back who are used to the way things used to be 10 years ago" - before the 1997 Bre-X Minerals Ltd. scandal that resulted in the new standards.
Mr. Eady said the commission is moving to increase its enforcement and education activities in response to the decline.