Geoscience Reference
In-Depth Information
disclosure of mineral resources. As such, resource classifi-
cation is not necessarily a technical issue, but rather a self-
regulated response of the mining industry for conveying
investment risk, and also as a response to some notorious
fraud cases. The codes have been developed according to
specific needs for each jurisdiction, although all have a gen-
eral common thread that makes them similar in spirit and in
the application of its main concepts. Given the global nature
of the mining industry, this commonality has led for a long-
standing effort towards internationalization of the codes,
unifying some of the details of application, to define a set of
worldwide accepted set of definitions, namely the Interna-
tional Standards (Miskelly
2003
).
Although the most commonly used codes have attached
guidelines to them, they are non-prescriptive in all that re-
lates to technical issues. Thus, the responsibility for the
appropriateness of the disclosure is left to the technical
competency of the individual(s) signing off on the resource
calculations and classification, defined as the Competent or
Qualified Person (CP or QP). In this context, the published
Guidelines that accompany the different Codes are used to
set minimum standards for practice, and are not intended to
be used as enforcement tools.
The most widely used codes are the Joint Ore Reserves
Committee (JORC, www.jorc.org); the CIM guidelines used
in
National Instrument 43-101: Standards of Disclosure for
Mineral Projects
(NI43-101) in Canada (www.cim.org);
the Securities and Exchange Commision's Industry Guide
7 in the United States (www.sec.gov/about/forms/indus-
tryguides.pdf); the SAMREC code in South Africa (www.
saimm.co.za/samrec.asp); and the Pan-European Union
and United Kingdom's Reporting Code (www.crirsco.com/
PERC_REPORTING_CODE_jan2009.pdf).
The JORC code has received broad international accep-
tance. In Canada, most Provincial Securities Commissions
and the Toronto Stock Exchange (TSE) have adopted NI
43-101, which applies to all oral statements and written dis-
closure of scientific or technical information, including dis-
closure of a mineral resource or mineral reserve. NI 43-101
defers to the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) for definitions and guidelines. The Coun-
cil of Mining and Metallurgical Institutes (CMMI), of which
CIM is a member, have developed a Resource/Reserve clas-
sification, definition and reporting system that is also widely
accepted.
In recent years there has been an increased emphasis on
the concept of a qualified (QP) or competent (CP) person.
The professionals preparing resource models and statements
are required to be experts in the field and also in the type
of deposit being modeled. Typical requirements are that the
individual(s) be members in good standing of recognized
professional associations, which includes having approved
a State or Provincial-sponsored professional exam, and have
no less than 5 years experience modeling the same type of
mineral deposits.
As an example, the 2010 CIM guidelines adopted in the
National Instrument 43-101 of Canada allows classifying
mineralization or other natural material of economic inter-
est as a Measured Mineral Resource by the Qualified Person
when the nature, quality, quantity and distribution of data are
such that the tonnage and grade of the mineralization can be
estimated to within close limits and that variation from the
estimate would not significantly affect potential economic
viability. This category requires a high level of confidence
in, and understanding of, the geology and controls of the
mineral deposit.
Mineralization may be classified as an Indicated Mineral
Resource by the Qualified Person when the nature, quality,
quantity and distribution of data are such as to allow confi-
dent interpretation of the geological framework and to rea-
sonably assume the continuity of mineralization. The Quali-
fied Person must recognize the importance of the Indicated
Mineral Resource category to the advancement of the feasi-
bility of the project. An Indicated Mineral Resource estimate
is of sufficient quality to support a Preliminary Feasibility
Study which can serve as the basis for major development
decisions.
Mineralization is classified as Inferred Mineral Resource
if the quantity and grade or quality can be reasonably as-
sumed, but not necessarily verified. Due to the uncertainty
that may be attached to Inferred Mineral Resources, it cannot
be assumed that all or any part of an Inferred Mineral Re-
source will be upgraded to an Indicated or Measured Mineral
Resource as a result of continued exploration. Confidence in
the estimate is insufficient to allow the meaningful applica-
tion of technical and economic parameters or to enable an
evaluation of economic viability worthy of public disclosure.
Inferred Mineral Resources must be excluded from estimates
forming the basis of feasibility or other economic studies.
A Mineral Reserve is the economically mineable part of
a Measured or Indicated Mineral Resource demonstrated
by at least a Preliminary Feasibility Study. This Study must
include adequate information on mining, processing, metal-
lurgical, economic and other relevant factors that demon-
strate, at the time of reporting, that economic extraction can
be justified. A Mineral Reserve includes diluting materials
and allowances for losses that may occur when the material
is mined.
A Proven Mineral Reserve is the economically mineable
part of a Measured Mineral Resource demonstrated by at
least a Preliminary Feasibility Study. This Study must in-
clude adequate information on mining, processing, metallur-
gical, economic, and other relevant factors that demonstrate,
at the time of reporting, that economic extraction is justified.
A Probable Mineral Reserve is the economically mine-
able part of an Indicated, and in some circumstances a Mea-
sured Mineral Resource demonstrated by at least a Prelimi-
