Staff Insights

Yes, NI 43-101 Technical Reports are often considered the “gold standard” within the international financial community for mineral project reporting. This reputation stems from their rigorous standards for transparency, accuracy, and detail in reporting mineral resources and reserves. Developed under the guidelines set by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), these reports require comprehensive disclosure and are overseen by qualified professionals who must adhere to strict ethical and professional standards.

The NI 43-101 Technical Report is the preferred choice for mining financiers worldwide when assessing potential funding for mining operations. As a result, NI 43-101 reports are uniquely recognized and accepted by all major global stock exchanges, further solidifying their status as the most widely trusted and authoritative source for certifying gold resources.

The higher degree of certainty and reliability associated with NI 43-101 reports, as compared to other international standards, ensures that investors, financiers, and other stakeholders have the most dependable information at their disposal when evaluating the potential of gold mining projects. This level of trust has established the NI 43-101 reports as the benchmark for gold resource reporting, thereby justifying their recognition as the “gold standard” in the industry and the only standard acceptable for tokenization into NatGold coins.

FAQs

How significantly has Canada’s NI 43-101 Technical Report influenced the design of CRIRSCO’s International Reporting Template (IRT)?2024-04-20T23:41:36+00:00

Canada’s National Instrument 43-101 (NI 43-101) has had a significant influence on the design of CRIRSCO’s International Reporting Template (IRT). Developed by the Canadian Securities Administrators, NI 43-101 sets stringent guidelines for the public disclosure of scientific and technical information related to mineral projects, which emphasize transparency, accountability, and detailed reporting. The comprehensive nature of NI 43-101, particularly its rigorous requirements for Qualified Persons and its structured approach to defining mineral resources and reserves, served as a model for many of the principles incorporated into the IRT.

This influence ensures that the IRT aligns with the high standards of reporting established by NI 43-101, facilitating consistency and comparability among international mining reports and aiding in the global harmonization of mineral resource and reserve reporting standards. This alignment is crucial for fostering trust and confidence among investors and regulators in the mining industry worldwide.

Isn’t silver considered to have monetary utility, similar to gold? What happens when there are certified silver resources in addition to the primary deposit of certified gold resources? Is the silver given any gold equivalent value?2024-05-01T17:22:10+00:00

It’s extremely common for a gold deposit to include significant amounts of other metals—both precious and otherwise—alongside the gold. Silver is one such metal that frequently occurs with gold and has a rich monetary tradition alongside its “big monetary brother.”

Silver has always played an important monetary role throughout history. Sometimes referred to as the “common man’s gold,” silver was historically used for more routine commercial transactions of a smaller nature, whereas gold fulfilled larger transactions. The true monetary history of the world is bimetallic: gold and silver.

One significant difference between gold and silver is that over time, the monetary utility of silver became overshadowed by industrial usage, which accounts for about 60% of its utility. Thus, its monetary utility is no longer its primary utility, whereas with gold, its store of wealth utility remains its primary function.

Because silver plays an important role in the global investment world, with as much as 40% of its demand for investment and store of wealth purposes, it is important to recognize their value. Therefore, in models like NatGold, certified silver resources are valued on their gold equivalent ratio basis. This means that the NI 43-101 certified silver resource is converted into its gold equivalent value within the same resource category; inferred, indicated, or measured resources.

It is important to note that NatGold’s legislative policies are focused on gold as the primary element of tokenization. The silver resources to which we are referring would be a by-product resource that occurs along with the primary certified gold resource.

How is the baseline intrinsic value of NatGold calculated?2024-05-18T12:55:00+00:00

How is the baseline intrinsic value of NatGold calculated?

The baseline intrinsic value of NatGold is calculated using a global per ounce average profit comparative methodology developed by the International NatGold Council. This method assesses the profit potential of NatGold by comparing the global average cost of gold production, as indicated by the All-In Sustaining Cost (AISC), against the current market price of gold. This approach provides a robust framework for establishing the minimum intrinsic value of NatGold coins, emphasizing their potential profitability in the global market.

Calculating Production Costs: The All-In Sustaining Cost (AISC) is used as a key metric in this comparison. AISC is a global weighted average calculated quarterly by the World Gold Council, based on the reported costs of each publicly reporting mining company for that period. This figure reflects the comprehensive cost faced by publicly reporting gold mining companies to mine, refine, and market one Troy ounce of gold.

Above Ground Market Price Reference: The market price used in this calculation is derived from the latest daily average price for a Troy ounce of gold, as reported by authoritative sources like the London Bullion Market Association and the NYMEX spot gold price.

Intrinsic Price Value Baseline: For example, employing a 90-day AISC of US$1,342 for Q4, 2023, and a hypothetical market price of US$2,200 per ounce, the intrinsic profitability is calculated by subtracting the most recent quarterly global weighted average AISC from the market price. In this instance, the average global profit would be $858 per ounce. This serves as the baseline intrinsic value of gold before the expenditure of US$1,342 to physically extract the gold via traditional mining methods.

NatGold’s approach diverges from traditional practices by focusing exclusively on digital mining certified gold resources in an ESG-friendly way. Essentially, the intrinsic baseline value of an ounce of NatGold is theoretically equal to the average per ounce profit realized by global gold producers, which is calculated by subtracting the average global cost of extraction from the prevailing market price of gold.

This positions NatGold as a sustainable crypto-commodity, capable of attracting a significant ESG premium, potentially even surpassing traditional gold’s market value as global sustainability awareness increases. This valuation transcends conventional production cost-profit analyses, advocating for NatGold’s price to be independently determined by its own merits as a sustainable and innovative financial asset.

Why are NI 43-101 certification standards essential in NatGold legislation?2024-04-20T23:30:11+00:00

Certification standards play a pivotal role in the NatGold ecosystem, with only titles containing certified gold resources under the National Instrument 43-101 (NI 43-101) Standards of Disclosure for Mineral Projects being eligible. Established by the Canadian Institute of Mining, Metallurgy, and Petroleum (CIM), NI 43-101 certified gold resource reports are the benchmark in global gold mining and finance and the most widely accepted reporting standard by all major world stock exchanges.

The meticulousness of NI 43-101 in auditing and validating the existence of gold resources ensures unparalleled reliability, making it the most trusted metric for mining financiers worldwide. This level of certainty and quality is crucial for NatGold legislation, ensuring that only the most accurately quantified and scientifically backed gold resources are tokenized, maintaining the highest standards of integrity and trust in the NatGold ecosystem.

What is the International NatGold Council?2024-04-20T23:26:47+00:00

The International NatGold Council, initially known as the International Green Gold Council, was founded in December 2023 in Geneva, Switzerland, by New York-based OroEx Corp. as a Swiss commercial foundation.

Structured as an independent governing body, the Council functions separately from industry participants, including its founding entity, OroEx Corp. Its Board of Directors consists of an exceptionally experienced and diverse team of individuals with international expertise.