Terry Lynch Unearths the Faults in NI 43-101’s Fine Print
Unveiling the Truth Behind Mining’s “Gold Standard” Reports
Editorial Team (ET)May 2, 2025
In a candid social media post on May 1, 2025, Terry Lynch, CEO of Power Metallic Mines Inc. and founder of Save Canadian Mining, pulled back the curtain on National Instrument 43-101 (NI 43-101) technical reports, urging retail investors to approach these documents with a critical eye. Often treated as the gold standard in mining disclosures, Lynch argues that not all 43-101s are created equal—some, he says, are little more than “compliance theater.”
For those unfamiliar, NI 43-101 is a Canadian regulation governing the disclosure of scientific and technical information about mineral projects. It requires companies to file detailed reports, authored by qualified professionals, to ensure transparency about a project’s potential. These reports are a cornerstone for investors evaluating mining stocks, particularly in Canada’s resource-heavy markets. But Lynch, with years of experience filing and reviewing these documents, warns that their reliability varies widely.
Key Takeaways from Lynch’s Post
Lynch’s post is a call to action for investors to dig deeper. Here are his main points, distilled:
Geology Over Hype: A credible 43-101 prioritizes geological context—details about the structure, continuity, and host rock of a deposit. If a report leans on flashy grades without this foundation, Lynch suggests it’s more marketing than substance.
Transparency Is Non-Negotiable: The best reports provide raw data, like full drill collar tables and assays, allowing analysts to independently verify claims. Lynch highlights that Power Metallic Mines is committed to this level of openness, offering “no sugar-coating, just data.”
Timing Matters: Filing a 43-101 too early can lock a company into an outdated snapshot of a project. Lynch explains that Power Metallic is delaying a report on its copper zone because the deposit is still expanding. He cites Great Bear Resources and Filo Mining as examples of companies that prioritized raw data releases over premature reports, letting the market draw its own conclusions.
Question Everything: Lynch urges retail investors to stop blindly trusting “compliant” documents and ask, “What aren’t they telling me?” He invites both new and seasoned investors to share their own red flags for spotting weak reports, fostering a dialogue to “raise the bar.”
Why This Matters
Lynch’s perspective is a wake-up call for retail investors, who often lack the technical expertise to dissect complex mining reports. His emphasis on transparency aligns with broader concerns in the mining sector about misleading disclosures. For example, while NI 43-101 is designed to protect investors, its effectiveness depends on the quality of the data and the integrity of the qualified persons authoring it. A 2020 report by the Canadian Securities Administrators noted that some NI 43-101 filings contained incomplete or overly optimistic assumptions, echoing Lynch’s concerns about “compliance theater.”
Lynch’s approach at Power Metallic Mines—delaying a 43-101 until the data is robust and sharing raw results in the interim—reflects a strategy seen in successful juniors like Great Bear, which was acquired for $1.8 billion in 2022 after building credibility through transparent data releases. This model challenges companies to prioritize substance over spin.
A Broader Call to Action
By sparking a conversation about 43-101 quality, Lynch is advocating for a cultural shift in the mining industry. His post isn’t just a critique—it’s an invitation for investors to educate themselves and demand better. For newcomers, he advises learning to “read between the lines.” For industry veterans, he seeks insights on spotting red flags, such as vague resource estimates or missing assay details.
As the mining sector navigates volatile commodity prices and growing scrutiny from ESG-focused investors, Lynch’s message is timely. Retail investors, armed with skepticism and a focus on data, can play a role in holding companies accountable and elevating industry standards.
Conclusion
Terry Lynch’s LinkedIn post is more than a critique of NI 43-101 reports—it’s a rallying cry for investor empowerment. By questioning the quality of these documents and championing transparency, Lynch is pushing for a mining industry where data speaks louder than hype. Whether you’re a retail investor or a seasoned analyst, his advice is clear: don’t just read the report—interrogate it.
