a guideline for preparing

Mineral Assessment Reports in Alberta

Contents

Mineral Assessment Reports 2
Contact Information 2
Filing of Reports 3
Grouping of Permits 4
Statement of Intent to File 5
Allocation of Expenditures 6
Acceptability 6
Part A 7
Part B 8Part C 9
Data Submission 9
Acceptable Work Expenditures 10
Assessment Report Review 13
Assessment Report Essentials 14

Mineral Assessment Reports
Metallic and Industrial Minerals (MIM) Permits are issued for the purpose of granting
the exclusive right to explore for metallic and industrial minerals in Alberta. In orderto keep a MIM Permit in good standing, the permittee must perform a specified
amount of exploration work throughout the term of the permit.
The primary role of mineral assessment reports is to document and support
expenditure claims for work done in order to keep a permit, or group of permits,in good standing. They also serve an important role of providing information on
geological, geophysical, geochemical, drilling and other mineral exploration related
activities that are completed each year in Alberta.
Mineral assessment reports are required through the Metallic and Industrial Minerals
Tenure Regulation (AR 145/2005). They are described as a requirement in Part 1:
Permits, and the specific requirements are outlined in the Schedule.
This guideline addresses the details of both the administrative and technical aspectsof mineral assessment reports. It is intended to present the legislative requirements
in a straightforward and clear way. For more information, please see the Alberta
Energy website or contact the Coal and Mineral Development Branch of Alberta
Energy.

Contact Information
Mailing Address

Telephone
Fax
Email
WebsiteAll Alberta Acts and Regulations
are available online
Permit and Leasing Toolkits

Alberta Energy
Resource Revenue and Operations Division
Coal and Mineral Development BranchNorth Petroleum Plaza
9945-108 St NW
Edmonton, AB T5K 2G6
780-427-7707
780-422-5447
CMD.Energy@gov.ab.ca
www.energy.alberta.ca/OurBusiness/minerals.asp
www.qp.alberta.ca/Laws_Online.cfm
www.energy.alberta.ca/minerals/547.asp

CMD Guideline-01 (2013)
A Guideline for Preparing Mineral Assessment Reports in Alberta
January 2013
978-1-4601-0565-8 (print)
978-1-4601-0566-5 (online)
Scan the QR code to go to the Alberta Energy website, where you can download a pdf of this guide.

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Mineral Assessment Reports

Filing of Reports
A mineral assessment report is due at the end of each work period.
ExampleTerm date: May 1, 2012
Assessment report forwork period 1 is due: May 1, 2014
In the case of a permit group, the assessment report due date is the last day of the of
the assessment work period for the permit with the earliest work period.
Mineral assessment reports are submitted to the Coal and Mineral Development
Branch of Alberta Energy. A geologist reviews each report for completeness and quality.
Expenditures are accepted based on the recommendations of the technical review.

The 14 year term of a MIM Permit is divided into
7 work periods. Each work period requires a
specific amount of exploration work.
Work Period

Expenditures

1
2, 3
4, 5, 6, 7

$5 per hectare$10 per hectare$15 per hectare

Mineral Assessment Report Parts
Part A deals with the administrative requirements of the regulations. This part includes
the detailed statement of the expenditures being claimed for the work period and all of
the required authorizations. The documents submitted in Part A remain confidential.
Part B contains the technical information related to the exploration project; thisinformation is reviewed for geological content. The purpose of Part B is to support theexpenditures claimed in Part A. The material contained in Part B will become public
information.
Part C contains technical appendices, which should support the information presented inPart B. Technical appendices will become public information.
Confidentiality
Mineral assessment reports are confidential for a period of one year after the end of thework period for which they are submitted.

3Grouping of Permits
Permits may be grouped for assessment purposes. In order to group two or more
permits, they must be contiguous: two permits are contiguous if they are joined by a side
or corner.
In the example below, sections 5, 6, 11 and 12 are contiguous because they share sides.
Sections 2 and 6 are contiguous because they are joined by a corner. Section 9 is notcontiguous and will require a separate assessment report.

12

11

10

9

5

6

7

8

4

3

2

1

A permit holder, or mineral assessment appointee, can request a permit grouping in a
number of ways:
1. File a statement of intent to file for a group of permits. If the permits are contiguous
and the intent to file is accepted, the permits listed in the intent to file will beconsidered a permit group.
2. Submit an assessment report that includes more than one permit. All of the permits
listed, and mapped, in the assessment report, if contiguous, will be considered apermit group.
3. Submit a written request to group permits to the Coal and Mineral Development
Branch prior to submitting an assessment report.
A permit can only be included in one permit group at a time. For example, a permit
cannot be included in the submission of an assessment report if has already been
included in an intent to file for a separate assessment report.
Work period end date for a permit group
Once a permit group is accepted, the end date of the work period for all permits within
the group becomes the work period end date of the permit with the earliest work period
end date. The mineral assessment report is due at the end of the work period of thepermit group.

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Statement of Intent to File
Section 10, of the Metallic and Industrial Minerals Tenure Regulation, allows for a permit
holder to file a Statement of Intent to File within the last 30 days of a work period, if anassessment report is not available to be submitted. The assessment report is then due
within 60 days of the normal due date.
A statement of intent to file allows the Coal and Mineral Development Branch tocommence the administrative process prior to receiving the mineral assessment report.
Staff will screen for contiguous permit grouping and identify specific lands or permits
to be surrendered. The procedure allows lands to be returned to the Crown land banksooner by serving the 30-day notice regarding land availability on the online interactivemap.
A Statement of Intent to File should contain the following information:
1. The project name.
2. Permit number(s) and work period.
This should be a list of all of the permits, and work period for each, that will be included
within the mineral assessment report. No additional permits can be included in theassessment report when it is filed.
3. A statement that a mineral assessment report will be filed within 60 days of the endof the work period.
If a mineral assessment report is not filed within 60 days, all permits that are passed theend date of their work period, after the 60 day period will be cancelled. The statement ofintent to file does not remove the requirement to file, it only allows for extra time.
4. The name of the mineral assessment appointee (if different from the permit
holder).
A mineral assessment appointee acts as the designated representative on behalf of thepermit holder(s) on decisions affecting the filing of the assessment report, the reportcontent and the permit area. They must be "re-appointed" for each assessment report.
5. A map showing the boundaries of the permit(s), so staff can review the configurationof a permissible group.
All permits in a group must be contiguous (see grouping description on Page 4). The
map must be legible and show all permit(s) together, at an appropriate scale.
6. An estimate of expenditures incurred during exploration work during the work period.
The expenditures should be broken down by the different activities.
7. A list of permit number(s) and land description that will be surrendered and retained
for the next work period.
In order to get land back into the land bank, any required cancellations can be done at
this point.
8. A list of permit(s) that will be carried through to the next work period through apayment in lieu. A cheque for the proper amount should be enclosed with thestatement.
A payment in lieu can only be applied once during the term of a permit.

5Allocation of Expenditures

Permit holders, or mineral assessment appointees, can allocate expenditures as theylike. Expenditures can be allocated to any permit within a group that is included in theassessment report. Any excess expenditures can be carried over to future work periodsof the permit(s) to which the expenditures are allocated. Any expenditures that do nothave allocation instructions from the mineral assessment appointee will be arbitrarily
allocated by Alberta Energy.
All expenditures must be allocated within the reporting period in which they are claimed.
Money expended in the year prior to the commencement date may be claimed for the
first work period of a permit, if the work done was within the permit boundaries.
Once an assessment report in finalized, the expenditure allocation cannot be changed.
Payment in Lieu
If the expenditures claimed are not enough to carry all of the land contained within apermit a cash payment in lieu can be made to keep the permit in good standing. The
payment can be for all or any portion of a permit. A payment in lieu can be made one
time per term for each permit.
A payment in lieu is non-refundable.

Acceptability
A mineral assessment report will be considered acceptable if it meets several
basic requirements:
1. It relates to the location of a permit or permit group.

qualifiedperson2. It relates to the appropriate work period of a permit or permit group.
3. It complies with all of the requirements of the Schedule within the Metallic
and Industrial Minerals Tenure Regulation.
4. It complies with the time lines for submission.
5. Geological, geochemical and geophysical surveys are carried out under
the supervision of a qualified person.
Mineral assessment reports cannot duplicate work that has previously been
submitted for assessment credit, or duplicates previously published work.
Other deficiencies may include:
1. Not meeting the specifications listed above.
2. Failure to show the adequate work required for the work period.
3. Failure to show work that is adequate to support the claimed expenditures.
In the case a mineral assessment report is deficient, the mineral assessment
appointee is informed, in writing, of the deficiencies and provided an
opportunity to either submit additional material to correct the deficiencies, or
asked to provide an entirely new assessment report.

6"an individual who is anengineer or geoscientist with atleast five years of experiencein mineral exploration, minedevelopment or operation ormineral project assessment,or any combination of these;
has experience relevant to thesubject matter of the mineralproject; and is a member or
licensee in good standing of aprofessional association"*; or aprospector having acceptable
qualifications.
*CIM Definitions and Standards,
November 27, 2010

guideline

Mineral Assessment Reports

Part A

Administrative Documents

Part A of a mineral assessment report contains the administrative documents. One
copy of Part A is required and remains confidential. The documents required for Part A
include:Part A:

1. A title page indicating the project name, permit numbers, client name, report author,
date and a label indicating that it is Part A.
2. A cover letter that includes the name of the project and a list of the permits included

requires 1 copy
within the report.
remains confidential 3. A signed statement that verifies the accuracy and completeness of Part A, and thetitle pagecompleteness of Part B and C.
cover letter
4. A letter of authorization for Alberta Energy to copy or reproduce the report once theauthorization
confidentiality period has ended.
to copy
5. A letter designating a mineral assessment appointee for the applicable permit(s)detailed expenditureduring the specified work period. This authority enables the appointee to file theassessment report and make decisions regarding the group and surrendering ofstatement
lands, and allocation of expenditures.
allocation
6. The detailed expenditure statement of costs expended, relating to exploration
instructions
activities conducted on the lands included in the assessment report. These aremapthe expenditures that are being claimed as credit toward the required spending tomaintain a permit in good standing.

7.

Allocation instructions for the accepted expenditures to the permit(s) included in
the assessment report. This includes several instructions:• Instructions for the current work period.
• If there are excess expenditures, instructions for allocation to future work terms.
• If there are insufficient expenditures to carry all land, an amendment orcancellation will be required.
• If, after Alberta Energy's review, there are insufficient expenditures accepted
to carry all land, Alberta Energy will request instructions for reallocation of
expenditures or land to be surrendered.
If Alberta Energy does not receive the required instructions, the decisions will bemade at the Department's discretion.

8. A map of the permit(s), including the permit number(s) and boundaries. All of thepermit(s) should be on a single map at an appropriate scale. This ensures Alberta
Energy can confirm that all permit(s) are contiguous

important

The detailed expenditure statement is the most important document ofPart A. It outlines the expenditures that are being claimed, in order to fulfil
the requirements of Section 8(1) of the Metallic and Industrial Minerals
Tenure Regulation. All of the other documents and information support thedetailed expenditure statement. It is important that the detailed expenditurestatement be sufficiently detailed so the Department geologist reviewing thereport can complete a thorough review. If costs are not adequately broken
down, expenditures may be rejected for lack of supporting evidence.

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Part B

Technical Information

Part B of a mineral assessment report contains the technical information that is used tosupport the expenditures that are claimed within Part A; it will become part of the publicrecord once the confidentiality period ends. If submitting the assessment report in
hard copy, two copies of Part B are required. Part B should be submitted in a separate
binding than Part A and all pages must be numbered. Part B requires:
1. A title page indicating the project name, permit numbers, client name, report author,
date and a label indicating that it is Part B.

Part B:requires 2 copies
becomes public
3. A breakdown statement of project work. This must include a breakdown of
title page
expenditures for all types of work performed. A copy of the detailed expendituretable of contents
statement from Part A can be used as long as all company and personal information
breakdown of work
is removed.
introduction
4. Text, technical illustrations and tables, which contain the data and information
summary
necessary to support the expenditures claimed in Part A and outlined in thelocationbreakdown statement of project work. The following sections should be included:
work performed
Introduction - outlining the scope and purpose of the assessment work.
results
Summary - a summary discussion of the work performed and results obtained
conclusions
during the work period for which the report is written.
references
Location - a map showing the permit number(s) and boundaries for the permit(s)2. A table of contents.

covered in the assessment report. The map should also indicate the locations of all
sampling, drilling, survey grids and other such exploration work.

Work performed - a detailed description of the exploration activities performed
during the work period. This includes descriptions of the methods used, the name of
the individual or company that performed (or supervised) the work, and the dates thework was performed. There should be a description of the work performed for eachof the items listed on the detailed expenditure statement in Part A.
Results - a tabulation or compilation of the data collected during the work period, adescription of each type of analysis, and a statement of results drawn from any data
included in Part C. If a Part C is not included, Part B must contain all the raw data, as
well as any laboratory data, accompanied by certified laboratory reports.
Conclusions - a summary discussion of how all of the reported results fit together
and what new geological knowledge was gained.
Bibliography/references - all information that was derived from a source that is not
the author's must be referenced. It is acceptable to use information from previous
work, but proper credit must be given.
5. A signed statement from the technical author that states their name andqualifications or work experience. This statement must accept responsibility for theveracity of the technical data and results presented in the report.

tip
8

Ensure all expenditures within Part A
are discussed in detail in Part B.
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Mineral Assessment Reports

Part CPart C:

optional 1 copy
becomes public
raw data
certified lab reports
maps
drill logs
engineering reports

Technical AppendicesPart C of a mineral assessment report contains the technical appendices for anassessment report. This includes data that is referred to in Part B. If full data tables andanalytical reports are included within Part C, summary tables can be used in Part B.
Part C is optional; if submitted, one copy is required and will become part of the publicrecord once the confidentiality period expires. Examples of information that may be
included within Part C includes, for example:•

Raw data (must accompany any filtered data in Part B)•

Certified laboratory reports•

Maps (other than what is required to be in Part B)•

Drill logs•

Engineering reports

Part C may be included within the same binding as Part B. If so, it must be separated bya tab and Part C should be included within the table of contents of Part B. If it is boundseparately, Part C must have its own table of contents. All data provided in Part C must
to be referred to in Part B.

Data Submission
All data and results submitted in Part B and C must meet certain specifications:
All locations and data must be reported using geographic coordinates (e.g. Lat-Long or
UTM), and must use the metric system.
All samples collected must have a unique identification code. This unique identifier must
be used for all descriptions, assays and other analysis that involve each sample.
Samples
All samples must be listed in a table, which describes:•

the date the sample was collected•

the size and type of sample•

the sample location, given in geographic coordinates (and shown on a map)•the observed physical or geological characteristics of the sample

Analytical Results
If assays or analytical results are reported, the mineral assessment report must include:•

a description of the analytical methods (with the indicated detection limits).

•

a clearly legible and signed copy of the certified lab report submitted by the analyticalfacility that performed the analyses. Each analysis must be present on a lab report.

•a cross-reference between the lab report and unique identifier of each sample.

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Acceptable Work Expenditures
Only work that can be directly associated with the area and work period that themineral assessment applies will be accepted towards the required expenditures for apermit or permit group. The following kinds of work are acceptable to satisfy spending
requirements:
Prospecting
Stripping and trenching
Shaft-sinking, tunnelling and other underground work
Drilling
Must include clearly legible drill logs and a map showing the locations of all drill collar
locations.
Geological survey
A geological map must be included that shows the results of the geological survey.
Geophysical survey
A geophysical map must be included that shows the results of the geological survey.
There should also be a map showing the locations of geophysical data acquisition.
Geochemical survey

Work costs must
be expended doing
exploration workthat is directly
associated withthe permits andwork period of theassessment report.

A map must be included that shows the sampling locations for the geochemical
survey. There may also be a map showing the distribution of the results of thesurvey.
Legal land survey
The results of the land survey should be shown on a map.
Transporting drill core and mineral samples to a core storage facility or otheracceptable location provided by the Minister
Reclamation of disturbed sites
Aboriginal consultation
Up to 20% of mineral assessment costs may be expenditures directly related toconsultation with First Nations or Métis for the purposes of furthering exploration on
lands within the assessment report and during the work period.
10% overhead allowance
A 10% overhead allowance can be claimed for acceptable work done by the permit
holder. Overhead costs for acceptable work done through a contract will generally
not be accepted because contracts normally have an overhead charge calculated
into them.
Other costs acceptable to the Minister
Other costs may be accepted upon review of the assessment report, if the
Department considers them applicable to the exploration work for the specific land
and work period of the assessment report. This may include:
Computer software - up to 20% of software costs may be claimed.
Physical work - such as infrastructure to support exploration work.

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Mineral Assessment Reports

Aboriginal Consultation
If consultation costs are claimed:•

Identify the actual or estimated consultation costs under "other" in the Statement ofIntent to File (if submitted).

•

Include details on consultation activities and costs in Part A: including a breakdownof the costs being claimed for Aboriginal consultation, a schedule identifying theAboriginal group(s) that was consulted, a chronological summary of consultation
activities, copies of notices served, meeting agenda(s) and itineraries.

•

Part B must have the costs listed in the "breakdown statement of project work".
Consultation details and results are not required in Part B.

Cost

Acceptable

Not acceptable

Aboriginal
consultation

Consultation specific to the
exploration program undertaken
to meet a legal or informal
requirement relating to the permitor the exploration approval.

Consultation fees charged by aFirst Nations or Métis group.

Facility and other equipment
rental (receipted).
Meals and refreshments atsessions (receipted).
Company
representatives

Travel expenses incurred bycompany representative for the
purpose of consultation related toa specific exploration program.

Community
representatives

Cost of transport andaccommodation of up to threecommunity representatives tomeetings within Alberta outside
the community (receipted).

Legal fees associated with
consultation and litigation.
Community compensation forloss of opportunity for traditionaluse.
Development and delivery of
training.
Cost of general meetings not
specific to one exploration
program, for building
relationships or assessing
community attitudes asa foundation for potential
exploration activities.

To be considered on a caseby case basis
Traditional use or historic
resource studies - notnormally a requirement for an
exploration program under apermit; more likely relevant
for mine development under alease.
Consultation costs exceeding
the suggested guidelines.
Consultation costs not
anticipated in this guideline.

Administrative overhead related
to consultation.

Cost of transport and meals for
one community member per visit
to work site area.
Allowable costs for Aboriginal consultation was originally introduced through Alberta Energy Information Letter 2008-11(inform.energy.gov.ab.ca/Documents/Published/IL-2008-11.pdf)

tip

If you are unsure if an expenditureis acceptable, contact the Coal andMineral Development Branch.

11

Costs that are not allowed
There are some costs that will generally not be accepted as assessment expenditures
because they cannot be directly associated with exploration work for a permit, or they do
not further the geological knowledge of a property:•

Cost of writing a 43-101 technical report.
A 43-101 is a requirement for securities regulators and all of the information within it
should already be included within an assessment report. For assessment purposes,
they do not add any additional information.

•

Company/office administration costs.
This is the purpose of the 10% overhead allowance.

•

Vehicle or equipment repair or acquisition.
Capital costs are not allowable; however, rental costs are an allowable expenditure.

•

Expenditures accepted in previous assessment reports.

•

Costs for work that duplicates work that has previously been submitted forassessment report credit.

•

Costs for work that duplicates previously published work.

•

Other costs Alberta Energy considers to be not allowable.

Evolution of work
Work that is claimed for assessment expenditures should further the geologicalknowledge of the area within the permit lands.
Exploration work and the types of expenditures claimed over the term of a permit should
evolve as exploration and development of the resource progresses. Later stages of
exploration, and subsequent assessment reports, should use more advanced exploration
techniques as knowledge of the deposit is gained.

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Mineral Assessment Reports

Assessment Report Review
Upon receipt of a mineral assessment report, Alberta Energy will do an administrative
and a technical review of the report. The administrative review is to ensure all of theadministrative requirements are met and the report can continue on to a technical review.
The technical review has several aspects:
1. Reviews the quality and consistency of the reported data and conclusions.

Each time
Alberta Energy
communicates areview decision,
the mineral
assessment
appointee has aperiod of 14 days
to reply.

2. Ensures all of the expenditures claimed within Part A are supported by Part B.
3. Confirms that all claimed expenditures were incurred within the area of the permit or
permit group during the relevant work period and have not already been claimed inother reports and reflect new work done on the permit(s).
If all of the expenditures are accepted, they are allocated to the permit(s), following theallocation instructions provided in Part A.
Report Deficiencies
A mineral assessment report is considered deficient if:
1. Any of the requirements described in this guideline, or the Metallic and Industrial
Minerals Tenure Regulation, are not met.
2. The report fails to show adequate work for the work period(s) of the permit(s)included in the report.
3. The report fails to show work that is adequate to support the detailed statement ofexpenditures (in Part A).
If the assessment report review finds deficiencies, either technical or administrative,
Alberta Energy may do one of two things:
1. Request a correction or supplementary material to correct the deficiencies or noncompliance. This may include sending a revised page, supplementary material tosupport expenditures, or receipts to prove costs were expended.
2. Request the mineral assessment appointee submit a new assessment report that
corrects the deficiencies or non-compliance.
Alberta Energy will allow the mineral assessment appointee one chance only to addressadministrative or technical deficiencies. If the final accepted expenditures are less thanwhat is claimed, the mineral assessment appointee must provide Alberta Energy withnew allocation instructions. If no instructions are received, the Department will make thedecision on how to allocate the expenditures.

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Assessment Report Essentials
Prior to submitting a mineral assessment report, the author can use this guide to ensure
the report properly captures all of the information required. This list is an example of thetypes of information the reviewing geologist is looking for.

Activities•

The activities are reasonable and appropriate given the exploration objectives andcircumstances.

•

Expenditures for the reporting period are reasonable for the activities described andhave not been claimed in a previous assessment report.

Data & Results•

The data and results are complete for the activities undertaken.

•

The data and results are accurate, reliable and authentic.

•

All raw data is included in the report along with a detailed description of the datacollection and interpretation of the results.

Expenditures•

An expenditure statement is included in both Part A and Part B.

•

All expenditures claimed are reasonable based on current commercial rates.

Work Done•

Appropriate maps are included to show any physical, geological, geochemical andgeophysical work done.

•

All work done is described in detail.

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Mineral Assessment Reports

tip

Reviewing the items in this guideline
will help to ensure your mineral
assessment report is complete.

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guideline

Mineral Assessment Reports