LETTERS TO THE EDITOR — Reporting standards cover diamond

Your editorial “Diamond standard needed” (T.N.M., Feb. 28/94) incorrectly implies that public reporting of Canadian diamond exploration results is not governed by adequate reporting standards.

Stock exchange and securities commission regulators seek the advice of seasoned industry-alert and independent technical consultants in the approval process for technical reports filed in support of public financing. Reports are reviewed in the light of existing standards and regulations, as well as current reporting concepts such as the Australian code.

Formal changes to the national policies governing private enterprise in Canada require lengthy consultation where input can come from many groups and each province’s securities commission. The independent technical consultants can, and have, adopted useful guidelines such as the Australian code prior to completion of the lengthy approval processes.

Official adoption of reporting standards specific to diamond exploration and development will probably follow the same lengthy committee review process, as have reserve definitions for both ore and petroleum.

Until then, the current review process ensures that technical reports meet or exceed both formal and informal guidelines and provide sufficient information to compare prospects.

W.H. Thompson

Scarborough, Ont.