BackMining Mindset welcomes Pierre-Jean Lafleur, a mining consultant with nearly five decades of experience, to discuss why geological databases are inherently flawed, why regulations were necessary to prevent fraud, and whether AI & blockchain can truly improve mining accuracy.
This episode takes a deep dive into the realities of mining reporting, the importance of independent consultants, and how modern technologies are both helpful and misleading in the industry.
Video transcription
(00:00)
Welcome to Mining Mindset! Today’s guest is Pierre-Jean Lafleur, a mining consultant with nearly 50 years of experience. We’ll explore the evolution of mining regulations, the accuracy of geological databases, and the impact of technology on mining operations.
(00:08)
Pierre-Jean Lafleur: Regulations have increased significantly. Mining companies are now legally required to hire independent consultants—geologists, engineers, metallurgists—to ensure compliance and prevent fraud. This shift has created more work for consultants but also improved transparency in the industry.
(01:16)
Fraud prevention in mining has become a major focus. The Bre-X scandal in 1996 is a prime example—it involved a false gold discovery in Indonesia that inflated stock values to $6 billion before collapsing to zero. This was a turning point, prompting governments to enforce stricter regulations like NI 43-101 in Canada to prevent such fraudulent claims.
(06:25)
Technology has helped detect fraud, but it also introduces new challenges. Mining software, AI, and blockchain can improve efficiency but are not foolproof. Data is only as good as the information we put into it. Every geological database is an approximation—none are 100% accurate.
(10:40)
Many companies focus on the price of mining software. The truth is, software is the cheapest expense in mining. The real cost is hiring skilled professionals to use it correctly. A million-dollar software license is nothing compared to the $1 million+ spent annually on expert salaries. If you’re spending millions on equipment and exploration, don’t cut corners on software—buy what you need and use it properly.
(17:55)
Automation is set to transform underground mining by reducing costs, enhancing safety, and optimizing high-grade extraction. Historically, automation was used in Canada’s uranium mines due to radiation risks. Now, with a growing labor shortage in remote mining regions, automation is more crucial than ever.
(22:59)
NI 43-101 gained global traction because Canada dominates mining finance, with 60-70% of mining capital once flowing through its stock market. NI 43-101 also requires public technical reports, whereas JORC allows more flexibility in disclosure. As ESG factors grow in importance, JORC is evolving to align more closely with NI 43-101.
(31:54)
Mining regulations will continue to evolve, increasing compliance costs. This favors larger companies that can absorb the burden, leading to fewer small mining firms and more industry consolidation.
(39:39)
Are mineral resources running out? No. Every resource we’ve ever mined is still on Earth. The issue isn’t depletion—it’s economic feasibility. Recycling will become more viable once it’s cheaper than fresh mining. For now, we continue discovering new deposits in unexpected places.
(43:45)
Natural resources are not disappearing—economic feasibility drives extraction. Humanity is adaptable, and we will continue to find innovative solutions to meet our resource needs.
(49:30)
Thank you for tuning in to Mining Mindset!
Subscribe to newsletter 
Follow K-MINE on LinkedIn