The CIMVAL Code for the Valuation of
Mineral Properties
Prepared by the Special Committee of theCanadian Institute of Mining, Metallurgy and Petroleum
on the Valuation of Mineral Properties (CIMVAL)
Adopted by the CIM Council on November 29, 2019

The Canadian Institute of Mining, Metallurgy and Petroleum
Suite 1250, 3500 de Maisonneuve Blvd. West
Westmount, Quebec H3Z 3C1 CANADA
Tel.: (514) 939-2710 Fax: (514) 939-2714

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Table of Contents
1.

2.

BACKGROUND ........................................................................................................................... 1
1.1.

History ................................................................................................................................... 1

1.2.

Philosophy............................................................................................................................. 1

1.3.

Distinction.............................................................................................................................. 2

1.4.

Organization of the CIMVAL Code: Standards, Guidelines, and Definitions........................... 2

1.5.

Purpose of Valuations ........................................................................................................... 2

1.6.

Coordination with NI 43-101 and CIM Definition Standards ................................................... 3

1.7.

Valuation under Securities Laws ........................................................................................... 3

1.8.

IMVAL and IVS ...................................................................................................................... 3

STANDARDS ............................................................................................................................... 4
2.1. Principles............................................................................................................................... 4
2.1.1. Competence .................................................................................................................... 4
2.1.2.

Materiality ........................................................................................................................ 5

2.1.3.

Reasonableness .............................................................................................................. 5

2.1.4.

Transparency ................................................................................................................... 6

2.1.5.

Independence .................................................................................................................. 6

2.1.6.

Objectivity ........................................................................................................................ 6

2.2.

Identification of the Property and Interest Being Valued ...................................................... 7

2.3.

Scope of Work and Limitations of the Standards .................................................................. 7

2.4.

Commissioning a Valuation ................................................................................................. 8

2.5.

Intended Use and Intended Users........................................................................................ 8

2.6.

Basis of Value ...................................................................................................................... 8

2.7.

Mineral Resources and Mineral Reserves ............................................................................ 8

2.8.

Valuation Approaches .......................................................................................................... 9

2.9.

Responsibilities of Qualified Valuator................................................................................ 10

2.10. Valuation Report ................................................................................................................ 11
2.11. Types of Valuation Reports ................................................................................................. 133.

GUIDELINES ............................................................................................................................. 14
3.1.

Professional Associations for Qualified Valuator.................................................................. 14

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3.2.

Valuation Fundamentals .................................................................................................... 14

3.3. Valuation Approaches and Methods .................................................................................. 14
3.3.1. Valuation Approaches .................................................................................................... 14
3.3.2.

References .................................................................................................................... 15

3.3.3.

Categories of Mineral Properties .................................................................................... 15

3.3.4.

Valuation Methods ......................................................................................................... 16

3.4. Use of Mineral Reserves and Mineral Resources in Valuation............................................. 17
3.4.1. General .......................................................................................................................... 17
3.4.2.

Current Estimates of Qualified Person ........................................................................... 18

3.4.3.

Mineralization other than Mineral Reserves and Mineral Resources .............................. 18

3.4.4.

Use of Mineral Reserves and Mineral Resources in the Income Approach .................... 18

3.4.5.

Parameters .................................................................................................................... 20

3.5. Comprehensive Valuation Reports – Contents .................................................................... 20
3.5.1. Technical Information and Valuation Analyses ............................................................... 20
3.5.2.

Checklist ........................................................................................................................ 20

3.6. Short Form Valuation Reports – Contents ........................................................................... 30
3.6.1. Technical Information and Valuation Analyses ............................................................... 30
3.6.2.

Checklist ........................................................................................................................ 31

4.

DEFINITIONS............................................................................................................................. 32

5.

ACKNOWLEDGEMENTS .......................................................................................................... 41

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1. BACKGROUND
1.1.

HistoryThis Code for the Valuation of Mineral Properties (the “CIMVAL Code”) is the result of areview more than a decade after the release in 2003 of the “Standards and Guidelines
for Valuation of Mineral Properties” (the "2003 Standards"). The purpose of the review
is to update the 2003 Standards to reflect domestic valuation, international valuation,and regulatory developments. The CIMVAL Code was adopted by the Canadian Instituteof Mining, Metallurgy & Petroleum (the "CIM") Council on November 29, 2019. The
CIMVAL Code supersedes the 2003 Standards.
The 2003 Standards were dated February 2003 and were adopted by the CIM Council on
March 9, 2003 as the first comprehensive set of standards for Valuation of Mineral
Properties in the Canadian mining industry. The 2003 Standards followed
recommendations of the Mining Standards Task Force of the Toronto Stock Exchange
and the Ontario Securities Commission, where in its Final Report (January 1999), the CIM
was specifically asked to form a committee of valuation practitioners to review andadvise on standards for the Valuation of Mineral Properties.
The Special Committee on Valuation of Mineral Properties ("CIMVAL") was created on
May 5, 1999 with the mandate to recommend standards and guidelines for Valuation of
Mineral Properties to be used by the mining industry in general. The CIMVAL Code islimited to the Valuation of Mineral Properties (including any interests therein) and does
not cover valuation of corporations or other entities that hold Mineral Properties asassets. The CIMVAL Code does not cover petroleum and related assets.
CIMVAL recommends that the CIMVAL Code be followed for all Valuations of Mineral
Properties, including those required by securities administrators and stock exchanges.
However, when a Valuation is required under the applicable rules of securities
administrators or stock exchanges, such rules prevail to the extent of any inconsistency.

1.2.

Philosophy
The guiding philosophy and intent of the CIMVAL Code is that Mineral Property
Valuations be carried out in a standardized and systematic manner by appropriately
qualified individuals and that all relevant information be fully disclosed in the Valuation
Report. The CIMVAL Code is based on industry best practices and allows for professional
judgement where warranted.

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1.3.

Distinction
The CIMVAL Code is concerned with Valuation, which means the estimation of the Valueof a Mineral Property in money or monetary equivalent. The word 'Valuation' can beused to refer to (a) the estimated value (the Valuation Conclusion) or (b) the preparationof the estimated Value (the act of valuing).
Valuation is distinct from evaluation, which may be used in the process of a Valuation oras a basis for a Valuation but is not a Valuation per se. Evaluation means an assessmentof the physical, technical, legal, economic, or other, aspects of a Mineral Property; which
may be used to make an investment decision. Evaluations include Feasibility Studies, PreFeasibility Studies, Preliminary Economic Assessments, and Scoping Studies.

1.4.

Organization of the CIMVAL Code: Standards, Guidelines, andDefinitions
The CIMVAL Code consists of three parts. The first part contains the Standards, which
are mandatory requirements in the Valuation of Mineral Properties. Certain guidance
regarding the Standards is set out in italics.
The second part contains Guidelines that while not mandatory, provide best practices
that are highly recommended to be followed in the Valuation of Mineral Properties.
The third part contains Definitions of the capitalized terms used in the CIMVAL Code.
Unless otherwise defined in the text, capitalized terms used in the CIMVAL Code havethe meaning given to them in the Definitions.

1.5.

Purpose of Valuations
Mineral Property Valuations are carried out for a variety of reasons, including support
for fairness opinions, mergers and acquisitions, non-arm's length transactions, pricing
securities in initial public offerings, listing support, support for financial statements,
support for property agreements, determination of vendor considerations, litigation,
expropriation compensation, income tax matters, insurance claims, and corporate
valuations. The disclosure of Mineral Property Valuations is subject to applicablesecurities laws.

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1.6.

Coordination with NI 43-101 and CIM Definition Standards
The CIMVAL Code is intended to be coordinated with National Instrument 43-101Standards of Disclosure for Mineral Projects ("NI 43-101"), which came into effect on
February 1, 2001 and was revised in December 2005 and June 2011. NI 43-101 is
administered by the Canadian Securities Administrators (the "CSA"), an umbrellaassociation of provincial securities commissions across Canada. The Instrument includes
Form 43-101F1 (Technical Report) and Companion Policy 43-101CP and is the principal
regulatory document in Canada for disclosure of scientific and technical information onmineral projects. See also the CIM Definition Standards for Mineral Resources andMineral Reserves adopted by CIM Council on May 10, 2014 (the "CIM Definition
Standards"), from which certain definitions are incorporated by reference in NI 43-101.
NI 43-101 is relevant to Mineral Property Valuation as noted in several places in the
CIMVAL Code. Where noted in the Definitions, certain definitions in the CIMVAL Codeare consistent with those used in NI 43-101, including the definition of "Qualified
Person".
The coordination of the CIMVAL Code with NI 43-101 is not meant to imply that the
CIMVAL Code is part of NI 43-101, as it is not.

1.7.

Valuation under Securities Laws
CIMVAL recommends that where a Valuation of a Mineral Property is required under
securities laws (including regulations, instruments and rules of securities administratorsand stock exchanges), the CIMVAL Code be followed in preparing the Valuation.

1.8.

IMVAL and IVS
The International Mineral Valuation Committee (“IMVAL”), which includes
representatives of CIMVAL, was formed in 2012 with the objective of providing
harmonization in the area of Mineral Property Valuation among various national codesand standards, including the CIMVAL Code. IMVAL has developed an International
Mineral Property Valuation Standards Template (Third Edition, May 2018) designed toharmonize the applicable valuation codes and standards of the IMVAL member
countries, while generally following the International Valuation Standards (IVS)
published by the International Valuation Standards Council (IVSC) in 2019. The CIMVAL
Code conforms with the IMVAL Template. IMVAL Guidelines are incorporated in italics
as guidance in the Standards part of the CIMVAL Code.

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2. STANDARDSThis part (to be read in conjunction with part 4 Definitions) sets out the minimum mandatory
requirements for Valuation of Mineral Properties. Supplemental recommended Guidance for theapplication of these Standards is provided in italics in this part.

2.1.

Principles
The six fundamental principles in undertaking Valuations and Valuation Reports are
Competence, Materiality, Reasonableness, Transparency, Independence and Objectivity.

2.1.1. Competence
While the assessment and selection of a Qualified Valuator is ultimately the
responsibility of the Commissioning Entity, a Qualified Valuator must be able todemonstrate to the Commissioning Entity and those entitled to rely on a
Valuation Report that the Qualified Valuator is sufficiently Competent to prepare
or contribute to the Valuation Report. Qualified Valuators must be clearlysatisfied that they are able to face their professional peers and demonstrate
Competence in the Valuation undertaken. Among other things, Qualified
Valuators should assess their competence regarding the subject Mineral
Property, the market in which the property would trade, and the purpose of theValuation.
A Qualified Valuator who is not Competent in all aspects of a Valuation
assignment must seek assistance from one or more Qualified Valuators or other
Experts who are Competent in the applicable field or discipline necessary toaddress those aspects. For example, in a Valuation, a Qualified Valuator may rely
on a Technical Report prepared by a Qualified Person.
Material assistance or reliance on other Experts must be disclosed in the
Valuation Report.
The Valuation of Mineral Properties may require Competence in a wide
range of disciplines. Depending on the nature of the Mineral Property to
be valued, the Basis of Value to be applied, and the availability of currently
relevant technical reports for the subject Mineral Property, an in-depth
understanding may be needed in a number of specialized areas. In manycases, Qualified Valuators should retain or rely upon reports from
Qualified Persons or other Experts who are competent in the vetting anddevelopment of certain technical information and Inputs used in the
Mineral Property Valuation and the preparation of a Valuation Report.

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Any reliance on Experts or Expert reports, or technical information
provided by the Commissioning Entity must be fully disclosed in the
Valuation Report.

2.1.2. Materiality
A Valuation must address all Material information. All Material information must
be included or adequately referenced in the Valuation Report. Materiality is theprinciple that determines whether certain information is relevant to the
Valuation. Materiality applies to the nature of the items assessed and theirinfluence on the quantum of a Valuation.
The Qualified Valuator must clearly set out all Material assumptions regarding
the input parameters, risks, limitations, and the associated effects in the
Valuation Report.
The determination of what is Material or relevant to the Valuation
depends on both qualitative and quantitative factors. A general rule indetermining if information is Material is consideration of whether its
omission or misstatement could significantly influence the decisions of theintended users of the Valuation Report.
If the Qualified Valuator finds it is impossible or impractical to obtainsufficiently accurate or reliable data, this must be stated as a limitation in
the Valuation Report. Depending on the amount and quality of available
data, the Qualified Valuator may not be in a position to express an opinionof Value. Alternatively, the Qualified Valuator may make one or moreassumptions or Special Assumptions, which must be disclosed
prominently in the Valuation Report.

2.1.3. Reasonableness
The Qualified Valuator must ensure the Reasonableness of the Valuation. Any
Valuation, assumptions applied, and any method relied upon, should bereasonable within the context of the purpose of the Valuation and the Basis of
Value.
The test of Reasonableness is to consider what appropriately qualified andexperienced Qualified Valuators, acting reasonably, would likely conclude in thecircumstances. The Qualified Valuator must form an opinion that is reasonable
in the circumstances, that is, what a Qualified Valuator believes is rational andplausible in the circumstances and would be viewed as such if considered byother appropriately qualified and experienced Qualified Valuators with the same
information and at the same time.
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2.1.4. Transparency
The Valuation process and Valuation Report must be Transparent, such that its
Material assumptions and conclusions must be clear and unambiguous andtherefore understandable to the reader. All Material assumptions and any
limitation to the Valuation that could affect the Valuation Conclusion must be
disclosed in the Valuation Report.
The principle of Transparency requires that information should not bepresented in a minimal or unclear form, from which the intended user
accepting this information at face value could draw incorrect implications
or conclusions. Any implications that would be revealed by a morethorough assessment or explanation of the Material issues should be
disclosed.
Transparency aids in promoting Objectivity, while minimizing subjectivity.
A Transparent Valuation Report is generally one that is presented withclear and concise writing, with Material information prominent;
supplemented by helpful and legible tables, graphs, maps, andphotographs. In addition, the Valuation Approaches and Methods
adopted and their application should also be clearly set out in the
Valuation Report.

2.1.5. Independence
For certain Valuations, Independence of the Qualified Valuator may be requiredby law, a national code or standards, or by the circumstances of the Valuation.
For the Qualified Valuator to be able to develop a Valuation that users canconfidently accept as free from bias, it is preferred, and may be mandated
that the Qualified Valuator be Independent of the outcome of theValuation, and thus be objective in exercising their judgement.

2.1.6. Objectivity
The Qualified Valuator should approach a Valuation with Objectivity. This is
promoted by an environment that is supported by data and minimizes theinfluence of subjective factors, such as the Valuator’s personal bias, on the
Valuation process.
The process of valuation requires the valuator to make impartial
judgements as to the reliability of inputs and assumptions. For a valuation
to be credible, it is important that those judgements are made in a way

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that promotes transparency and minimizes the influence of any subjective
factors on the process. Judgement used in a valuation must be applied
objectively to avoid biased analyses, opinions and conclusions (Adaptedfrom IVS Framework, Section 40.1).

2.2.

Identification of the Property and Interest Being Valued
The Mineral Property, including the interest or right that is the subject of the Valuation,must be described in adequate detail to identify the property, and the physical, legal,
and economic characteristics relevant to the Valuation. This description is required inparticular when the subject of the Valuation is economically interdependent with otherproperties, in which case the assumptions used in the Valuation must be stated.
One or more maps, photographs, or diagrams can aid the description of
the subject Mineral Property. Documentation of title or rights, andencumbrances, should be included in the Valuation Report as needed for
substantiation. In the case of a fractional interest, physical segment, or
partial holding, descriptions of the holding and control limits, and of
properties or rights excluded from the Valuation, are required for clarity.
As an example, a mill dedicated to a remote mineral deposit may be inside
the control limit, while a toll mill in a mining camp would be outside.

2.3.

Scope of Work and Limitations of the Standards
The Scope of Work to be performed in developing the Valuation should be determined
between the Qualified Valuator and the Commissioning Entity and must be identified.
The Scope of Work necessary to develop a credible Valuation can vary considerably
depending on the subject Mineral Property, the purpose of the Valuation, the Basis of
Value, the Valuation Date, and the intended use of the Valuation. Modification of the
Scope of Work may be necessary during the Valuation process. The Scope of Work sectionin the Valuation Report must describe the extent of investigations conducted and state any
limitations on those investigations. (See also IVS 101 Scope of Work).
The Standards cover Valuation of metallic and non-metallic Mineral Properties, which
also include bedrock, alluvium, placers, industrial minerals, dimension stone, aggregates,and energy fuel that could be produced by mining such as coal, and uranium. Mining
includes solution mining of such materials as uranium, potash, lithium, and other salts.
The Standards do not cover oil and gas properties.
The Standards are limited to Valuation of Mineral Properties (including any interests
therein), and do not cover valuation of corporations or other entities that hold Mineral
Properties as assets. Valuations of corporations are specifically governed by otherregulations and standards.

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It is recommended, however, that the CIMVAL Code should be applied inthe Valuation of Mineral Properties that are included as assets in thevaluation of corporations.

2.4.

Commissioning a Valuation
A Commissioning Entity must reasonably establish that the Qualified Valuator issufficiently Competent and Independent if Independence is required to carry out the
Valuation of the subject Mineral Property or Properties.
The Commissioning Entity and the Qualified Valuator should agree in advance ofcommencing the assignment, in writing, on the terms of reference and scope of work of
the Valuation assignment, which terms must be summarized and disclosed in the
Valuation Report.
The Commissioning Entity must covenant or represent in writing to the Qualified
Valuator that complete, accurate, and true disclosure has been or will be made to the
Qualified Valuator of all Material data and information relevant to the Valuation and that
the Qualified Valuator has had or will have access to the Commissioning Entity's records
and personnel to enable a proper Valuation to be made.

2.5.

Intended Use and Intended Users
The intended use and intended users of the Valuation Report must be clearly disclosed.

2.6.

Basis of ValueThe Valuation Report must clearly state the Basis of Value, its definition, and the sourceof its definition.

2.7.

Mineral Resources and Mineral Reserves
When Mineral Resources or Mineral Reserves of the subject Mineral Property are usedor referred to in a Valuation or Valuation Report, they should be Current and should use
the Mineral Resources and Mineral Reserves as defined in the CIM Definition Standards
or National Reporting Standards.
Other estimates of quantity and grade of mineralization that are Historical Estimates, are
not Current, or do not use categories specified in the CIM Definition Standards or
National Reporting Standards may be used in a Valuation provided that:

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(a)

the key assumptions, parameters, and methods used to prepare the estimate are
fully disclosed to the extent known, and the differences, if any, between theestimate and Mineral Resources and Mineral Reserves as defined in the CIM
Definition Standards should be explained.

(b)a Qualified Person should comment on the relevance, reliability, and level ofassurance of the estimate relative to Mineral Resources and Mineral Reserves as
defined in the CIM Definition Standards.

(c)if the estimate uses categories other than those specified in the CIM Definition
Standards, a Qualified Person should reconcile, to the extent possible, thecategories used with the categories set out in the CIM Definition Standards.

2.8.

Valuation Approaches
The Qualified Valuator has the responsibility to decide which Valuation approaches andmethods to use. The choice of the specific approaches and methods used, or excluded,
must be justified and explained by the Qualified Valuator. The limitations of each method
must be explained.
The three generally accepted Valuation approaches of Income, Market, and Cost must
be considered and discussed in the Valuation Report. More than one approach should
be used in the Valuation of each Mineral Property, if it is reasonably possible andappropriate to apply them. If a Qualified Valuator is of the opinion that only one
approach should be used in particular circumstances, the Qualified Valuator must justify
and explain why other approaches are not used in such circumstances.
The results from the Valuation Approaches and Methods employed should
be analyzed and reconciled into a concluding opinion of Value. The
reasons for giving a higher weighting to one Valuation Approach or
Method over another, including any elimination of an outlier value, should
be stated. The opinion of Value can be stated as a range of Values and/or
as a single Value within a range of Values.
Where the Market Approach informs the Basis of Value, the Qualified
Valuator should ensure that Inputs to all Valuation Methods applied arederived from the relevant market-place.

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2.9.

Responsibilities of Qualified Valuator(a)

A Qualified Valuator is responsible for the overall Valuation of a Mineral Property
and the preparation of a Valuation Report. The Qualified Valuator may rely on
the work of one or more Qualified Persons and Experts. (See Section 2.1.1.)(b)

In situations where a Qualified Valuator is not a Qualified Person, all Material
technical data relating to the Mineral Property being valued is subject to Data
Verification by one or more Qualified Persons. If a Current Technical Report
already exists, the Qualified Valuator may rely on it to support the Valuation andshall clearly disclose in the Valuation Report the extent to which such reliance is
made.

(c)

The Qualified Valuator is responsible for assuring that the Qualified Persons andother Experts who contribute to the Valuation, or upon whom the Qualified
Valuator relies, are appropriately qualified and experienced.

(d)

The Qualified Valuator must be Independent, except for circumstances specified
in the next paragraph. In each Valuation Report, there must be clear, full, andplain disclosure of any past, present or anticipated business relationships, direct
or indirect, between the Qualified Valuator and the Commissioning Entity orother interested parties that may be relevant to the Qualified Valuator's
Independence, or a lack thereof.

(e)

If a Valuation is undertaken in circumstances where the Qualified Valuator is not
Independent, the Qualified Valuator must clearly disclose in the introduction andin the summary of the Valuation Report: (i) why Independence of the Qualified
Valuator is not required in the particular circumstances; (ii) that the Qualified
Valuator is not Independent; and (iii) the Qualified Valuator’s relationship to theCommissioning Entity, to the holder of any right, title, or interest to the Mineral
Property, and/or to the Mineral Property, as the case may be.

(f)

A Qualified Valuator must certify in the Valuation Report that they meet all of
the attributes of the definition of "Qualified Valuator" and must stamp the
Valuation Report with their professional seal, if applicable. In addition, valuators
who are members of a Professional Association that is not Canadian must certify
and provide evidence that their professional organization meets all of the criteria
for a Professional Association or a relevant Self-Regulatory Professional
Organization.

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(g)

The Qualified Valuator is responsible for adhering to the Standards, including theprinciples of Competence, Materiality, Transparency, Objectivity,
Reasonableness and where applicable, Independence, in the Valuation of thesubject Mineral Property and in the Valuation Report, and to any applicable legal
and regulatory requirements.

(h)

The Qualified Valuator shall retain their work file and all supporting data relating
to a Valuation and to a Valuation Report for a minimum of five years after theReport Date or such longer period as is required by the applicable Professional
Association or law.

2.10. Valuation Report
The Valuation Report must contain, at a minimum, the following information:(a)Terms of reference.

(b)

Purpose of the Valuation.

(c)

Intended use and intended users of the Valuation, and any restrictions on theuse or distribution of the Valuation.

(d)Report Date and Valuation Date, preferably stated together to avoid confusion.

(e)

Scope of Work.

(f)

Mineral Property Identification, including tenure information.

(g)

Description of the Mineral Property being valued, including location and access,history, geology and mineralization, and details of the status of its exploration,
development, or production at the Valuation Date.

(h)Basis of Value.

(i)

Valuation Approaches and Methods used and the Value estimates derived from
each.

(j)

Discussion of key assumptions, risks, and limitations and explanation as to why
the assumptions used are reasonable and appropriate in the circumstances.

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(k)

Disclosure of Values from any prior Valuations for the same Mineral Property
with Valuation Dates within the prior two years, if available, and explanation ofMaterial differences. Valuations with Valuation Dates prior to two years may be
included at the Qualified Valuator's discretion.

(l)Where the technical information being referred to or relied upon in the
Valuation includes estimates of project economics, the nature and level of
uncertainty of such estimates must be disclosed and treated appropriately by
the Qualified Valuator.

(m)

Reconciliation of the Value estimates derived where more than one Approach or
Method is used.

(n)Final Valuation Conclusion.

(o)Sources of information, including extent of reliance on information provided by
the Commissioning Entity or other sources.

(p)Statement that the Valuation complies with the Standards in its entirety, and if
not, explain how it does not comply in its entirety.

(q)Statement regarding the extent to which the Valuation is consistent with the
Guidelines. Such statement must disclose and explain the reasons for any
inconsistencies or deviations from the Guidelines.

(r)Statement of whether or not a site visit to the Mineral Property has been
undertaken, with dates and by whom.

(s)

Identity, qualifications, and experience of the Qualified Valuator and any
Qualified Persons, and the areas of the Valuation Report for which each is
responsible. Also identify any other reports or information being relied on.

(t)Statement of Independence or non-Independence of the Qualified Valuator andany Qualified Persons.

(u)Certificate(s) of Qualified Valuator and any Qualified Person(s), containing
information itemized in section 3.5.2 item 21 Certificate of Qualifications.

(v)

The Valuation Report must be signed by the Qualified Valuator who is
responsible for the Valuation Report, or by a corporation, partnership, limited
partnership, or other entity (each an "Entity") provided that the Valuation has
been supervised by a Qualified Valuator employed or engaged by such Entity.

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2.11. Types of Valuation Reports
A Valuation Report may be in the form of (a) a Comprehensive Valuation Report or (b) a
Short Form Valuation Report. The Commissioning Entity and the Qualified Valuator may
agree that a Comprehensive Valuation Report is not necessary for the intended purposeof the Valuation and that a Short Form Valuation Report is sufficient.
(a)Comprehensive Valuation Report. A "Comprehensive Valuation Report" meansa Valuation Report that complies with all of the requirements in Section 2.10 and
the Valuation is based on a comprehensive review and analysis.

(b)

Short Form Valuation Report. A "Short Form Valuation Report" means a
Valuation Report that may be requested by the Commissioning Entity when aComprehensive Valuation Report is unnecessary for the intended purpose of theValuation. A Short Form Valuation Report meets the requirements of Section
2.10, except that (i) disclosure of relevant and Current technical information may
not be to the same level of detail as specified in Section 3.5.2, (ii) the Valuation
may rely on technical information provided by the Commissioning Entity or otherparties, or may be based on a limited review and analysis of technicalinformation, (iii) the Valuation may rely on technical information not signed off
on by a Qualified Person, (iv) disclosure that the assurance level of both the
Valuation and the resulting Value may be less than those of a Comprehensive
Valuation Report, if this is the case, and (v) disclosure as to whether or not a site
visit has been made by the Qualified Valuator or a Qualified Person.

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3. GUIDELINES
These Guidelines provide guidance and best practices that are highly recommended to befollowed in the Valuation of Mineral Properties.

3.1.

Professional Associations for Qualified Valuator
For the purpose of the definition of "Qualified Valuator" in the Standards, the Qualified
Valuator shall be a member of one or more of the following organizations:

3.2.

(a)

a Professional Association; or(b)a Self-Regulatory Professional Organization. While CIMVAL currently does notendorse any Self-Regulatory Professional Organization; from time to time in the
future, it may issue a list of approved organizations for the purpose of thisrequirement.

Valuation Fundamentals
There is a body of knowledge reflected in the literature, as well as accepted valuation
fundamentals in the general field of valuation that do not deal specifically with Valuationof Mineral Properties, but that have application to the Valuation of Mineral Properties.
A number of these accepted valuation fundamentals, which must be applied whenestimating Value, are briefly described below.

3.3.

(a)

Value relates to a specific point in time. Valuation opinions must state theapplicable Valuation Date.

(b)

Value relates to Current and future expectations.

(c)

The Value of an asset is based on, or directly related to, what the asset can or
could earn.

(d)Hindsight, in general, must not be used in reaching Valuation Conclusions.

(e)

The market dictates the required rate of return.

Valuation Approaches and Methods
3.3.1. Valuation Approaches
The three generally accepted Valuation approaches are Income Approach,Market Approach, and Cost Approach.

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The Income Approach is based on the principle of anticipation of benefits andincludes all methods that are based on the income or cash flow generation
potential of the Mineral Property.
The Market Approach, also known as the "Sales Comparison Approach", is based
primarily on the principle of substitution. The Mineral Property being valued iscompared with the attributed transaction value of similar Mineral Properties,
transacted in an open market. Methods include comparable transactions,market capitalization analysis, and option or farm-in agreement terms analysis.
The Cost Approach is based on the principle of contribution to value. The
appraised value method is commonly used where exploration expenditures areanalyzed for their contribution to the exploration potential of the Mineral
Property and may be adjusted for market conditions.

3.3.2. References
Numerous papers on Valuation of Mineral Properties have been published.
Many are available through the CIM (www.cim.org), the Australasian Institute of
Mining and Metallurgy (www.ausimm.com.au), South African Institute of Mining
and Metallurgy (www.samimm.co.za), the Society of Mining and Exploration(www.smenet.org), and the International Institute of Minerals Appraisers(www.mineralsappraisers.org).

3.3.3. Categories of Mineral Properties
As applied to Mineral Properties, the Valuation approach depends on the stageof exploration or development of the Mineral Property. Mineral Properties canbe categorized for convenience into four types; however, it should be noted that
there are no clear-cut boundaries between these types, that the Mineral
Property category may change over time, and that it may be difficult to classify
some Mineral Properties so they fit in only one specific category. These
categories are:

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Exploration Properties•

Mineral Resource Properties•

Development Properties•

Production Properties

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Table 1 shows the Valuation approaches that are generally considered appropriate to apply in valuingeach type of Mineral Property.

TABLE 1. Valuation Approaches for Different Types of Mineral Properties
Valuation

Exploration

Approach

Properties

MineralDevelopment

Production

Resource

Properties

Properties

Properties
IncomeNo

In some cases

Yes

Yes

Market

Yes

Yes

Yes

Yes

Cost

Yes

In some cases

NoNo

3.3.4. Valuation Methods
Valuation methods are, in general, subsets of Valuation approaches. For
example, the Income Approach includes several methods. Certain Valuation
methods are more widely used and are more generally acceptable as industry
practice than others. Some methods are considered to be primary methods for
Valuation while others are secondary methods or “rules of thumb” and may beconsidered suitable only to check the Reasonableness of Valuations conductedby applying primary methods.
Table 2 lists a number of Valuation methods for Mineral Properties, classifies
each as to approach and specifies whether it is ranked as a primary or secondary
Valuation method. Methods with no primary or secondary ranking are
considered to be unreliable or are not widely accepted.

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TABLE 2. Methods
Valuation Approach

Valuation Method

Ranking

IncomeDiscounted Cash
Flow (DCF)

Primary

IncomeReal Options

Primary

MarketComparable
Transactions

Primary

MarketOption Agreement
Terms

Primary

MarketMarketCapitalization

Secondary

Cost

Appraised ValuePrimary

Cost

Multiple of Past
Exploration
Expenditure

Primary

Other

Geoscience Factor

Secondary

Gross “in situ” Metal Value is not an acceptable method for Valuation.

3.4.

Use of Mineral Reserves and Mineral Resources in Valuation
3.4.1. General
All Mineral Reserves and Mineral Resources on a Mineral Property should beconsidered in the Valuation of the Mineral Property. Depending on thecircumstances, the Income Approach, the Market Approach, or the Cost
Approach may be most appropriate for the Valuation of a Mineral Property
containing Mineral Reserves or Mineral Resources, although for Mineral
Properties with Mineral Reserves, the Income Approach is usually the mostappropriate and the Cost Approach the least appropriate.

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3.4.2. Current Estimates of Qualified Person
Mineral Reserves and Mineral Resources used in the Valuation should be
estimated or confirmed by a Qualified Person and should be Current and inaccordance with the CIM Definition Standards or National Reporting Standards.
Any use of or references to other estimates of quantity and grade ofmineralization, including Historical Estimates and non-Current estimates, not inaccordance with the CIM Definition Standards or National Reporting Standards
should be clearly identified and explained in the Valuation Report so as not tomislead the reader, and any limitations or qualifications in the Valuation should
be clearly explained.

3.4.3. Mineralization other than Mineral Reserves and Mineral Resources
In the Income Approach, it is generally not acceptable to use in a Valuation any
mineralization categories (such as potential quantity and grade, potential
resource, exploration potential, exploration target, potential deposit, or target
for further exploration) that do not conform to the definitions of Mineral
Reserves and Mineral Resources. If such categories of mineralization are
mentioned in a Valuation Report, it must be stated that they are not Mineral
Reserves or Mineral Resources and cannot be relied upon.

3.4.4. Use of Mineral Reserves and Mineral Resources in the Income
Approach
For Income Approach methods, it is generally acceptable to use all Mineral
Reserves, and to use Mineral Resources in the circumstances described below.
The Valuation Report should clearly state the justification for any assumptions
used in the Income Approach and their effect on the Valuation.
(a)

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It is generally acceptable to use Mineral Resources in the Income
Approach if Mineral Reserves are also present and if, in general, minedahead of the Mineral Resources in the same Income Approach cash flow
model.

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(b)

Where Mineral Reserves are not present, it is generally acceptable touse Mineral Resources in the Income Approach. Where technical,
economic, and other relevant parameters are at a lower confidence
level than the Pre-Feasibility Study level (for example, a Preliminary
Economic Assessment), it is recommended that the higher risk or
uncertainty be recognized by some means, which might include using ahigher discount rate, reducing the quantum of the Mineral Resources,
probability weighting the resource quality, applying sensitivities to theassumptions, or delaying the timing of production of the Mineral
Resources in the Income Approach model. The Valuation Report must
contain a qualifying statement about the confidence level of thetechnical, economic, and other relevant parameters relative to a PreFeasibility Study or a Feasibility Study confidence level.

(c)

Where Inferred Mineral Resources are used in the Income Approach, it
is recommended that the reason for using them be explained, and thatthe higher risk or uncertainty be recognized by some means, whichmight include using a higher discount rate, reducing the quantum of theMineral Resources, probability weighting the resource quality, applying
sensitivities to the assumptions, or delaying the timing of production of
the Inferred Mineral Resources in the Income Approach model. Inferred
Mineral Resources should, if included in the Income Approach, be usedwith great caution and care, particularly where the Inferred Mineral
Resources account for all or are a dominant part of total Mineral
Resources. In such cases, the Valuator should consider other Valuation
methods (such as the Market Approach) that may be more appropriate.
(d) When other estimates of quantity and grade of mineralization, including
Historical Estimates and non-Current estimates, not in accordance with
the CIM Definition Standards or National Reporting Standards are usedin the Income Approach, the categories as reconciled to those of the CIM
Definition Standards or National Reporting Standards should be used as
specified in Section 3.4.4 (a) to (c).

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3.4.5. Parameters
Technical, economic, and related parameters include, but are not limited to,Mineral Reserves, Mineral Resources, mining recovery, mining dilution, mining
plan, tailings and waste management, production schedule, metallurgical test
work, metallurgical recovery, process plant design, project engineering,
construction schedule, environmental aspects, permitting, socio-economic
aspects, political and geo-political risks, reclamation and rehabilitation, closure
plan, capital costs, operating costs, smelter terms, royalties, product marketing,sales contracts, financing, and commodity price forecasts. The relevant
technical, economic, and related parameters and the level of uncertainty andlimitations of all material assumptions made by the Valuator should be disclosed
in the Valuation Report or summarized from any Technical Report used as asource document for the Valuation.

3.5.

Comprehensive Valuation Reports – Contents
3.5.1. Technical Information and Valuation Analyses
A Comprehensive Valuation Report should consist of technical information andValuation analyses. Technical information relied on in a Comprehensive
Valuation Report can be incorporated by reference to a Technical Reportcontaining the relevant information and need not be repeated in theComprehensive Valuation Report.

3.5.2. Checklist
Subject to Section 3.5.1, which allows for incorporation of technical information
by reference, the following outline is intended to be a checklist for information
purposes regarding the topics of discussion that should be addressed according
to Sections 2.10 and 2.11. The checklist is provided to assist the Qualified
Valuator in identifying areas that may be appropriate to be included in aComprehensive Valuation Report. The technical information in a Comprehensive
Valuation Report should be at a similar level of detail as required in a Technical
Report (NI 43-101 Form F1).

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In the Comprehensive Valuation Report, the Qualified Valuator should address
those items on the checklist that they determine to be relevant and Material in
relation to the Mineral Property being valued. Depending on the status of theproperty, the level of detail needed will vary. For instance, the information initems 8, 9, and 10 may be critical in valuing an Exploration Property, whereas thevalue of a Production Property will depend to a far greater extent on theinformation in items 11, 12, 13, and 14.
1.

Summarya. Provide a brief description of the terms of reference, scope ofwork, the Valuation Date, the Mineral Property, its location,
ownership, geology and mineralization, history of explorationand production, current status, exploration potential and/or
production forecast, Mineral Resources and Mineral Reserves,
production facilities if any, environmental and permitting
considerations, Valuation approaches and methods, Valuationand conclusions.

2.

Terms of Reference, Purpose, Date, Usea. Identify the Commissioning Entity for whom the Valuation isprepared, identify any other intended users, state the owner ofthe Mineral Property, and confirm who has paid for the
Valuation.
b. Describe the Valuation mandate and terms of reference.
c. Outline the purpose of the Valuation and its intended use andusers, and any restrictions.
d. Describe the Mineral Property briefly, state the interest in theproperty that is being valued and indicate its type and stage.
e. State the Valuation Date and the Report Date.
f.

Name the Qualified Valuator and any Qualified Persons involvedin the Valuation.

g. DiscusstheQualified
Valuator's/Qualified
Independence or lack of Independence.

Person'sh. Provide a definition of the Basis of Value being determined.
i.
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Provide other definitions used in the report.
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3.

Scope of the Valuationa.

Scope of work performed.

b. Describe information reviewed, or relied upon, and its source.
c. Describe steps taken to assure the reliability of the information
relied upon, and the degree of reliance on other Experts.
d. Describe how Data Verification was done.
e. Name the Qualified Valuator or Qualified Person who carriedout the site visit, when it was done, and what was examined, or
explain why such a visit was not undertaken.
f.

Specify if data are confidential, and why.

g. State any disclaimers that apply to the data or the Mineral
Property title, or that apply to the extent that certain
information or opinions of others are relied on.
4.

Compliance with the CIMVAL Standards
a. State that the Valuation complies with the Standards (as per
Section 2.10(q)).
b. Where the Comprehensive Valuation is inconsistent with the
Guidelines, disclose and explain such inconsistencies ordeviations and reasons for them (as per Section 2.10(r)).

5.

Property Location, Access and Infrastructurea. Describe the Mineral Property location in detail, including area,and provide a location map.
b. Provide distances to major centres, and an outline of how theproperty can be reached.
c. Describe the availability of infrastructure such as roads, rail,
shipping, airports, power, water, pipelines, labour, supplies, andservices.

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d. Provide a summary of other relevant local issues such as militaryor terrorist activities, social unrest, seismic risks, and the like.
e. Provide maps on a regional and local scale, showing all relevant
infrastructure including roads, railways, power lines, pipelines,
and tailings disposal sites. Provide geographic coordinates using
national and international systems.
6.

Property Ownership, Status, and Agreements

a. Describe the Mineral Property title and the owner's interest in
the property, including surface rights, including obligations thatmust be met to retain the property, and the expiry dates ofclaims, licences and other tenure rights, along with any
encumbrances to the title.
b. Describe any applicable agreements, such as options, joint
ventures, farm-ins, royalties, back-in rights, payments, and the
like.
c. Describe the status of the Mineral Property at the Valuation
Date including statutory work requirements, surface rights,
water rights, easements, aboriginal land claims, any legal issues,environmental and permitting issues, and the impact these may
have on property development.
7.

History of Exploration and Production
a. Provide chronology of previous exploration programs, including
methods employed and results, and ownership at the time of
the work.
b. Tabulate historical Mineral Resource and Mineral Reserve
estimates, if relevant, along with the source of the estimates.
c. Tabulate production history showing annual amounts andgrades. Provide a reconciliation between Mineral Reserves andproduction, where possible.
d. Provide information of a similar nature for the region and for
adjacent properties, if relevant.

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8.

Geology and Mineralization
a. Describe the regional and local geology and mineralization.
b. Describe the geology of the Mineral Property.
c. Describe the mineralization encountered on the property, thehost rocks, and relevant geological controls. Give details on
geometry and dimensions of the mineralized zones, along withthe type, character, continuity, and distribution of themineralization.
d. Describe deposit type.
e. Outline current thinking about sources and controls ofmineralization and the models and concepts being applied to
exploration.
f.

Provide similar information about adjacent properties, if
relevant.

g. Provide regional and property geology maps showing
mineralization and other relevant details.
9.

Exploration Results and Potential
a. Describe recent exploration work on the Mineral Property anddiscuss results, their interpretation and their significance.
Discuss the reliability of the exploration work and the data.
b. Provide opinion on the exploration potential for existence anddiscovery of economic mineralization on the Mineral Property.
c. Where a significant mineral deposit is indicated, provide anassessment of the potential for the discovery of additional
mineralization.
d. Information from adjacent properties may be included provided
that the distinction is clearly made between information on theadjacent properties and the Mineral Property being valued.

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e. Describe any constraints to further success, such as legal
disputes, land claims, permitting constraints, or physical
impediments to effective exploration.
10.

Drilling, Sampling, Assaying, and Data Verification
a. Describe the methods of sampling and details of location,
number, type, nature, and spacing or density of samples
collected, and the area covered.
b. Identify any drilling, sampling, or recovery factors that could
Materially impact the accuracy or reliability of results.
c. Describe sample preparation, security, analytical procedures,
assay quality assurance and quality control procedures, andcheck assays; and discuss their adequacy.
d. Note where the analytical data have been verified by a Qualified
Person and any limitations on that verification.

11.

Mineral Resources and Mineral Reserves
a. Provide estimates of Current Mineral Resources and Current
Mineral Reserves and confirm that the work was carried out by
a Qualified Person. If other estimates of quantity and grade ofmineralization, including Historical Estimates and non-Current
estimates, not in accordance with the CIM Definition Standards
or National Reporting Standards are included, explain why they
are relevant for the purposes of the Valuation.
b. State the date that the Mineral Reserves and/or Mineral
Resources were effective, and describe any subsequent
sampling, production, or other information that would change
the Mineral Resources and Mineral Reserves.
c. Describe the reserve/resource database and how it was
validated.
d. Discuss geologicalmineralization.

interpretation

andcontinuity

ofe. Describe estimation methods and how they were applied.
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f.

Discuss technical and economic parameters such as cut-off
grade, dilution, and mining recovery.

g. Provide details of any reconciliation between Mineral Reserve
estimates and subsequent production results.
h. Discuss the classification of the Mineral Resources and Mineral
Reserves.
i.

12.

Provide representative plans and sections depicting theconfiguration of sampling data and the Mineral Resource andMineral Reserve outlines or blocks.

Metallurgy
a. Describe mineralogy of the mineralization.
b. Describe sampling procedures for metallurgical tests and discuss
the representativeness of the samples.
c. Provide details of metallurgical test work, including thelaboratories used, who supervised and carried out the work,
methods employed, results obtained.
d. Describe proposed or operating beneficiation process andflowsheet.

13.

Environmental and Social Considerations
a. Discuss available information on environmental, permitting, andsocial or community factors related to the Mineral Property
being valued.
b. Describe the environmental standards that have to be met, andthe permits needed to continue work on the Mineral Property
along with their application status, and any limitations they may
impose on the exploration, development, and production on theproperty.
c. Summarize the results of any environmental studies and discuss
any known environmental issues that could Materially impact
the ability to establish mining operations on the Mineral
Property and plans to mitigate them.

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d. Discuss any potential social or community related requirements
and plans for the Mineral Property and the status of any
negotiations or agreements with local communities.
e. Describe plans for bonding, pre-closure remediation,
reclamation, closure plan, and post-closure responsibilities.
14.

Operational and Economic Parameters
a. Outline current status and proposed activities for the future.
b. Where property is at a Feasibility Study stage, summarize theengineering, Pre-Feasibility Studies, and Feasibility Studies
completed and planned, and discuss the significance of thesestudies and the plans for future work.
c. Where property is in production, provide a full description ofmining and processing methods, mining recovery, mining
dilution, metallurgical performance, throughput and output
capacities, production schedule, infrastructure, products, andmarketing. Describe any technical or financial issues that may
impact on the Valuation, and discuss measures proposed to deal
with these.
d. Provide an outline of capital costs operating costs, sustaining
capital, closure costs, contracts, taxes, and royalties.
e. Commodity prices and foreign exchange rates.
f.

Treatment and refining charges, marketing costs, andtransportation costs.

g. Provide details and results of any relevant economic studies.
15.

Key Assumptions, Risks, and Limitations
a. Describe and discuss all Material assumptions and limiting
conditions that affect the analyses, opinions, and conclusions
reached and upon which the Valuation is based.

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b. Discuss the Material risks associated with the Mineral Property
including technical, operating, financial, socio-economic,
environmental, permitting, marketing, commodity prices,foreign exchange, political and geo-political risks, legal disputes,
land claims, and other impediments to mineral exploration anddevelopment.
c. Provide support for parameters in any quantitative risk model.
d. Discuss the extent of any reliance on information obtained frommanagement.
16.

Valuation Approaches and Methods
a. Discuss the possible application of various approaches andexplain why each approach was utilized or not.
b. Describe the methods selected for the Valuation and justify theirapplicability.

17.

Recent Valuations
a. Summarize recent Valuations of the Mineral Property (for atleast the past two years), briefly describe the methods
employed, and provide the resulting Valuations. Provide an
explanation as to why these prior Valuations are or are not
relevant to the Valuation.

18.

Valuationa. Provide an overview of the economic context within which the
Valuation is carried out. For Exploration Properties, this might
include comments on the demand for such properties by juniorand major mining companies, and the availability of financing for
exploration work. For Development Properties and Production
Properties, the current economics of the mining industry andthe particular commodity being studied should be discussed.
The outlook for commodity prices and the availability and costof financing should be outlined.
b. Specify currency used and provide any exchange rates utilized.

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c. Provide details of database used to support each Valuation
method.
d. For the Income Approach, where applicable, describe the impact
on the cash flow estimate of uncertainty in the main technical,
economic, and cost assumptions, by means, such as sensitivity
analysis or simulation.
e. For the Income Approach, describe the derivation of, andrationale for, the discount rate used.
f.

19.

Provide a clear description and analysis of the information
utilized, the methods followed, and the reasoning that supports
the analysis, opinions, and Valuation Conclusion.

Valuation Conclusiona. Provide a summary of the Valuation estimates reached using
each method employed. Discuss any significant differences inthe Valuation estimates.
b. State the Valuation Conclusion, expressed as a range of values.
Discuss any reliance on or weighting of different Valuation
estimates used to develop the range of Values.
c. Where a single Value is required, discuss the rationale used to
select this Value within the stated range.

20.

Referencesa. Include a detailed list of all sources of information cited in the
Valuation Report.

21.

Certificate of Qualifications
a. The Certificate of Qualifications of the Qualified Valuator (QV)
and any Qualified Person (QP) should include the following
information:

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i. Name, address, and occupation.
ii. Qualifications,
includingrelevant
experience,education, the name of each Professional Association or
Self-Regulatory Professional Association to which the
QV or QP belongs, and a statement that the person is a
QV or QP for the purpose of the Valuation.
iii. Dates of the most recent visits to the Mineral Property.
iv. Sections of the report for which each QV and QP is
responsible.
v. That the QV, and QP if applicable, is not aware of any
Material fact not in the Valuation Report that would
make the report misleading.
vi. If the QV and QPs are Independent.
vii. What prior involvement with the Mineral Property that
the QV or QP may have had.
viii. That the Valuation Report has been preparedconsistently with these Valuation standards.
ix. Consents, as applicable.
x. Date and signature of QV, and QP if applicable.

3.6.

Short Form Valuation Reports – Contents
3.6.1. Technical Information and Valuation Analyses
A Short Form Valuation Report should consist of technical information andValuation analyses. Technical information relied on in a Short Form Valuation
Report can be incorporated by reference to the Technical Report and need not
be repeated in the Short Form Valuation Report.

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Since the Short Form Valuation Report does not contain the level of technicaldetail that is consistent with a Comprehensive Valuation Report, it would notnormally require a site visit or a Certificate of Qualifications. It should, however,contain a disclosure that the assurance levels of the Valuation may be less thanthose of a Comprehensive Valuation Report, if this is the case.

3.6.2. Checklist
The checklist should consist of the items included in Section 3.5.2 that the
Qualified Valuator considers relevant, except in far less detail, to the extent thata Short Form Valuation Report would be significantly shorter than aComprehensive Valuation Report. There would typically be much less detail inmost of the supporting areas (such as Property Location, Access andInfrastructure; Property Ownership, Status and Agreements; History of
Exploration and Production; Geology and Mineralization; Exploration Results andPotential; Drilling, Sampling, Assaying, and Data Verification; Mineral Resources
and Mineral Reserves; Metallurgy, Environment and Social Considerations; andMining and Processing Operations) and a larger reliance, by reference, toprevious Technical Reports.
The sections on Key Assumptions, Risks and Limitations, Valuation Approaches,
Valuation, and Valuation Conclusions should be similar to Comprehensive
Valuation Reports.

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4. DEFINITIONS
The following words used in the CIMVAL Code have the meanings given to them below.
Basis of Value. Bases of Value (sometimes called standards of value) describe thefundamental premises on which the reported values will be based. (See also IVS 104
Bases of Value). Basis of Value commonly refers to Market Value or Fair Market Valuebut can also refer to other Bases of Value such as Fair Value, Investment Value, Special
Value, or Synergistic Value (see Definitions).
CIM means the Canadian Institute of Mining, Metallurgy & Petroleum.
CIM Definition Standards means the “CIM Definition Standards- For Mineral Resources
and Mineral Reserves” adopted by CIM Council on May 10, 2014, as amended from time
to time by CIM.
Commissioning Entity means the organization, company, or person who commissions a
Valuation.
Competence or Competent means having relevant qualifications and relevant experiencein the particular subject matter or area of expertise.
Comprehensive Valuation Report has the meaning given to it in Section 2.11(a).
Cost Approach provides an indication of value using the economic principle that a buyer
will pay no more for an asset than the cost to obtain an asset of equal utility, whether bypurchase or by construction (IVS 105 Valuation Approaches and Methods, Section 60),
and includes methods based on expenditures.
CRIRSCO means the Committee for Mineral Reserves International Reporting Standards,
which has published the International Reporting Template for the public reporting of
Exploration Results, Mineral Resources and Mineral Reserves dated November 2013
(CRIRSCO Template).
Current means in all material respects, accurate and complete as at the Valuation Date.
Data Verification means the process of confirming that data has been generated withproper procedures, has been accurately transcribed from the original source and issuitable to be used (NI 43-101).
Development Property means a Mineral Property that contains Mineral Reserves and/or
Mineral Resources and for which economic viability has been demonstrated by a
Feasibility Study or Pre-Feasibility Study and includes a Mineral Property that has a
Current positive Feasibility Study or Pre-Feasibility Study but that is not yet in production.
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Expert means a person who may be retained by the Qualified Valuator to review
technical information, prepare one or more sections of a Valuation Report, or provide
Inputs concerning specialized matters about which the Qualified Valuator is not
personally Competent. The Expert must have sufficient training and experience relevantto the subject matter for which he or she is being retained to review or provide Inputs.
An Expert can include a Qualified Person.
Exploration Property means a Mineral Property that does not contain Mineral Reserves
or Mineral Resources and for which economic viability has not been demonstrated.
Fair Market Value – see Market Value.
Feasibility Study means a comprehensive technical and economic study of the selecteddevelopment option for a mineral project that includes appropriately detailed
assessments of applicable Modifying Factors together with any other relevant
operational factors and detailed financial analysis that are necessary to demonstrate, atthe time of reporting, that extraction is reasonably justified (economically mineable). The
results of the study may reasonably serve as the basis for a final decision by a proponent
or financial institution to proceed with, or finance, the development of the project. The
confidence level of the study will be higher than that of a Pre-Feasibility Study (CIM
Definition Standards).
Guideline or Guidance means a best practices recommendation in the Valuation of a
Mineral Property that, while not mandatory, is highly recommended.
Historical Estimate means an estimate of the quantity, grade, or metal or mineralcontent of a deposit (resource and/or reserve) that a Mineral Property holder has notverified as a Current Mineral Resource or Mineral Reserve, and which was prepared
before the Mineral Property holder acquiring, or entering into an agreement to acquire,
an interest in the property that contains the deposit (Adapted from NI 43-101).
Income Approach provides an indication of value by converting future cash flows to asingle current capital value" (IVS 105 Valuation Approaches and Methods, Section 40).
Independence or Independent means that the Qualified Valuator has no financial or
beneficial interest, either present or contingent, in the Commissioning Entity, theMineral Property being valued, other parties involved in a transaction on the Mineral
Property, or the outcome of the Valuation, other than professional fees anddisbursements related to the Valuation assignment.

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Indicated Mineral Resource means that part of a Mineral Resource for which quantity,
grade or quality, densities, shape and physical characteristics are estimated with
sufficient confidence to allow the application of Modifying Factors in sufficient detail tosupport mine planning and evaluation of the economic viability of the deposit. Geologicalevidence is derived from adequately detailed and reliable exploration, sampling andtesting and is sufficient to assume geological and grade or quality continuity between
points of observation. An Indicated Mineral Resource has a lower level of confidence
than that applying to a Measured Mineral Resource and may only be converted to a
Probable Mineral Reserve (CIM Definition Standards).
Inferred Mineral Resource means that part of a Mineral Resource for which quantity andgrade or quality are estimated on the basis of limited geological evidence and sampling.
Geological evidence is sufficient to imply but not verify geological and grade or quality
continuity. An Inferred Mineral Resource has a lower level of confidence than that
applying to an Indicated Mineral Resource and must not be converted to a Mineral
Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could
be upgraded to Indicated Mineral Resources with continued exploration (CIM Definition
Standards).
Investment Value is the value of an asset to a particular owner or prospective owner forindividual investment or operational objectives (IVS 104 Bases of Value, Section 60).
Market Approach provides an indication of value by comparing the asset with identicalor comparable (that is similar) assets for which price information is available (IVS 105
Valuation Approaches and Methods, 20.1). The Market Approach is also known as the"sales comparison approach".
Market Value means the highest price, expressed in terms of money or money's worth,obtainable in an open and unrestricted market between knowledgeable, informed andprudent parties, acting at arm's length, neither party being under any compulsion totransact (Income Tax Act (Canada)) as at a given point in time. Reference to a Market
Value must be stated to be as at the applicable Valuation Date.
Materiality and Material means all relevant information that investors and theirprofessional advisers would reasonably require, and reasonably expect to find in a
Valuation Report for the purpose of making a reasoned and balanced judgement
regarding the Valuation. See General Guidance (4) and (5) of Companion Policy 43-101CP
to NI 43-101, which provides further guidance on the meaning of "Material" and"Materiality".

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Measured Mineral Resource means that part of a Mineral Resource for which quantity,
grade or quality, densities, shape, and physical characteristics are estimated withconfidence sufficient to allow the application of Modifying Factors to support detailed
mine planning and final evaluation of the economic viability of the deposit. Geologicalevidence is derived from detailed and reliable exploration, sampling and testing and issufficient to confirm geological and grade or quality continuity between points ofobservation. A Measured Mineral Resource has a higher level of confidence than that
applying to either an Indicated Mineral Resource or an Inferred Mineral Resource. It may
be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve (CIM
Definition Standards).
Mineral Property means any right, title, or interest to property held or acquired inconnection with the exploration, development, extraction, or processing of minerals that
may be located on or under the surface of such property, together with all fixed plant,
equipment, and infrastructure owned or acquired for the exploration, development,
extraction, and processing of minerals in connection with such property. Such property
shall include, but not be limited to, Real Property, unpatented mining claims, prospecting
permits, prospecting licences, reconnaissance permits, reconnaissance licences,
exploration permits, exploration licences, development permits, development licences,mining licences, mining leases, leasehold patents, crown grants, licences of occupation,patented mining claims, and royalty interests.
Mineral Reserve means the economically mineable part of a Measured and/or IndicatedMineral Resource. It includes diluting materials and allowances for losses, which may
occur when the material is mined or extracted and is defined by studies at a PreFeasibility or Feasibility level as appropriate that include application of Modifying
Factors. Such studies demonstrate that, at the time of reporting, extraction could
reasonably be justified. The reference point at which Mineral Reserves are defined,
usually the point where the ore is delivered to the processing plant, must be stated. It is
important that, in all situations where the reference point is different, such as for asaleable product, a clarifying statement is included to ensure that the reader is fully
informed as to what is being reported. The public disclosure of a Mineral Reserve must
be demonstrated by a Pre-Feasibility Study or Feasibility Study(CIM Definition
Standards).
Mineral Resource means a concentration or occurrence of solid material of economic
interest in or on the Earth’s crust in such form, grade or quality and quantity that there
are reasonable prospects for eventual economic extraction. The location, quantity, gradeor quality, continuity and other geological characteristics of a Mineral Resource are
known, estimated or interpreted from specific geological evidence and knowledge,
including sampling (CIM Definition Standards).
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Mineral Resource Property means a Mineral Property that contains a Mineral Resource
as defined in the CIM Definition Standards, as defined in National Reporting Standards,
or other estimates of quantity and grade of mineralization that are reconciled the with
the CIM Definition Standards.
Minerals Industry means entities and individuals involved in exploration for minerals,
and the extraction, processing, and marketing of minerals. This term applies to the pointof first possible sale of any particular commodity and excludes properties and activities
that are downstream from a smelter, refinery, or processing plant.
Modifying Factors means considerations used to convert Mineral Resources to Mineral
Reserves. These include, but are not restricted to, mining, processing, metallurgical,
infrastructure, economic, marketing, legal, environmental, social and governmental
factors (CIM Definition Standards).
National Reporting Standards means codes and standards for reporting of Mineral
Resources and Mineral Reserves (or Ore Reserves) that are in accordance with the
CRIRSCO Template, as amended from time to time, and are promulgated by a country
that is a member of CRIRSCO, other than Canada.
NI 43-101 means the Canadian Securities Administrators’ National Instrument 43-101
Standards of Disclosure for Mineral Projects, as amended from time to time.
Objectivity means acting impartially and without bias.
Pre-Feasibility Study (Preliminary Feasibility Study) means a comprehensive study of arange of options for the technical and economic viability of a mineral project that has
advanced to a stage where a preferred mining method, in the case of undergroundmining, or the pit configuration, in the case of an open pit, is established and an effective
method of mineral processing is determined. It includes a financial analysis based onreasonable assumptions on the Modifying Factors and the evaluation of any otherrelevant factors which are sufficient for a Qualified Person, acting reasonably, todetermine if all or part of the Mineral Resource may be converted to a Mineral Reserveat the time of reporting. A Pre-Feasibility Study is at a lower confidence level than a
Feasibility Study (CIM Definition Standards).
Preliminary Economic Assessment (PEA) means a study, other than a Pre-Feasibility or
Feasibility Study, that includes an economic analysis of the potential viability of Mineral
Resources (NI 43-101).

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Probable Mineral Reserve means the economically mineable part of an Indicated, and insome circumstances, a Measured Mineral Resource. The confidence in the Modifying
Factors applying to a Probable Mineral Reserve is lower than that applying to a Proven
Mineral Reserve (CIM Definition Standards).
Production Property means a Mineral Property with an operating mine, with or without
a processing plant, which has been fully commissioned and is in production.
Professional Association means a self-regulatory organization of engineers,
geoscientists, or both engineers and geoscientists that (a) is (i) given authority or
recognition by statute in a jurisdiction of Canada, or (ii) a foreign association that is
generally accepted within the international mining community as a reputableprofessional association; (b) admits individuals on the basis of their academic
qualifications, experience, and ethical fitness; (c) requires compliance with theprofessional standards of competence and ethics established by the organization; (d)requires or encourages continuing professional development; and (e) has and applies
disciplinary powers, including the power to suspend or expel a member regardless of
where the member practices or resides (NI 43-101).
Proven Mineral Reserve means the economically mineable part of a Measured Mineral
Resource. A Proven Mineral Reserve implies a high degree of confidence in the Modifying
Factors (CIM Definition Standards).
Qualified Person means an individual who (a) is an engineer or geoscientist with auniversity degree, or equivalent accreditation, in an area of geoscience, or engineering,
relating to mineral exploration or mining; (b) has at least five years of experience inmineral exploration, mine development or operation, or mineral project assessment, or
any combination of these, that is relevant to his or her professional degree or area ofpractice; (c) has experience relevant to the subject matter of the mineral project and thetechnical report; (d) is in good standing with a Professional Association; and (e) in thecase of a professional association in a foreign jurisdiction, has a membership designationthat (i) requires attainment of a position of responsibility in their profession that requires
the exercise of independent judgment; and (ii) requires A. a favourable confidential peer
evaluation of the individual’s character, professional judgement, experience, and ethicalfitness; or B. a recommendation for membership by at least two peers, anddemonstrated prominence or expertise in the field of mineral exploration or mining (NI43-101).]

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Qualified Valuator means an individual who (a) is a professional with demonstrated
extensive experience in the Valuation of Mineral Properties, (b) has experience relevantto the subject Mineral Property or has relied on a Current Technical Report on the subject
Mineral Property by a Qualified Person, and (c) is regulated by or is a member in goodstanding with a Professional Association or a relevant Self-Regulatory Professional
Organization. Qualified Valuator also means a corporation, partnership, or other entity,that can demonstrate that (d) it has relevant experience in providing Valuations ofMineral Properties, (e) it is a member in good standing of a relevant regulated or selfregulated organization, which has the ability to discipline its members, and (f) its
professional employee or partner responsible for the Valuation is an individual who is a
Qualified Valuator.
Real Estate means land and all things that are a natural part of the land, e.g., trees, andminerals and things that have been attached to the land, e.g., buildings and site
improvements and all permanent building attachments, e.g., mechanical and electricalplant providing services to a building, that are both below and above the ground (IVS
2013 Definitions).
Real Property Interest means a right of ownership, control, use, or occupation of landand buildings (IVS 400 Real Property Interests, Section 20).
Reasonableness means that other Qualified Valuators with access to the same
information for the same Valuation Date and Basis of Value as the Valuator of a Mineral
Property would consider the Valuator's estimate of Value to be within a reasonable rangeof Values. A Reasonableness test serves to identify Valuations that may be out of stepwith industry standards and industry norms. It is not sufficient for a Qualified Valuator
to determine that he or she personally believes the value determined is appropriate
without satisfying an objective test (adapted from Companion Policy 43-101CP, General
Guidance (7)).
Report Date means the date the Valuation Report is signed and dated.
Scoping Study means an order of magnitude technical and economic study of thepotential viability of Mineral Resources. It includes appropriate assessments ofrealistically assumed Modifying Factors together with any other relevant operational
factors that are necessary to demonstrate at the time of reporting that progress to a PreFeasibility Study can be reasonably justified.

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Self-Regulatory Professional Organization means a self-regulatory organization that (a)admits members or registers employees of members primarily on the basis of theireducational qualifications, knowledge and experience; (b) requires compliance with theprofessional standards of competence and code of ethics established by theorganization; and (c) has disciplinary powers, including the power to suspend or expel amember or an employee of the member for matters related to Mineral Property
Valuation.
Short Form Valuation Report has the meaning given to it in Section 2.11(b).
Special Assumption means an assumption referred to as such and made in a Valuationthat is to be used in special circumstances, such as litigation or arbitration, whereassumed facts differ from those existing at the Valuation Date or the Valuation “reflectsa view that would not be taken by participants generally on the Valuation Date" (IVS 104
Bases of Value, Section 200). The term "hypothetical condition" is the same as Special
Assumption.
Special Purchaser means a particular buyer for whom a particular asset has Special Value
because of advantages arising from its ownership that would not be available to otherbuyers in the market".
Special Value means an amount that reflects particular attributes of an asset that are
only of value to a Special Purchaser.
Standard means a general rule that is mandatory in the Valuation of Mineral Properties.
Synergistic Value means the result of a combination of two or more assets or interests
where the combined value is more than the sum of the separate values (IVS 104 Basesof Value, Section 70).
Technical Report means a report prepared and filed in accordance with NI 43-101 andForm 43-101F1 Technical Report that includes, in summary form, all material scientificand technical information in respect of the subject property as of the effective date of
the technical report (NI 43-101).
Transparency and Transparent means a clear and unambiguous presentation of theValuation in the Valuation Report, which includes all Material information on which the
Valuation is based, such that the reader can understand the Valuation and not be misled.
Valuation has the meaning given to it in Section 1.3.

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Valuation Conclusion means the estimated Value conclusion reached as a result of a
Valuation.
Valuation Date means the date on which the Valuation applies (IVS 2013 Definitions).
Valuation Report means a report prepared in accordance with this Code.
Value is a generic term that may refer to any one of the definitions in this CIMVAL Codeusing the word “Value”. See “Basis of Value”, “Fair Market Value”, “Investment Value”,“Special Value”, “Synergistic Value”, “Valuation”, and “Valuation Conclusion”.

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5. ACKNOWLEDGEMENTS
CIM acknowledges the contributions of the members of the CIMVAL Committee:
William Roscoe – Co-Chair
Keith Spence – Co-Chair
Eden Oliver – Secretary
Michael Fowler
Marc Legault
Bruce McKnight
Derek Melo
Michael Samis
David Scott
Patrick Stephenson

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