The Mineral Resource

Source: AusiMM 23M

Reporting and regulatory requirements
Chapter 9 discusses the classification and reporting of Mineral
Resources and Ore Reserves. Confidence levels reported for
the Ore Reserve, and for sections of the Ore Reserve, cannot
exceed those of that part of the Mineral Resource from which
the Ore Reserves derive. Where ‘modifying factors’ of doubtful
reliability are used, the Ore Reserves will be reported with a
lower level of confidence.
The basis of Mineral Resource and Ore Reserve reporting
is the JORC Code. This Code is supported by the Australian
Securities and Investment Commission and the Australian
Stock Exchange and ensures uniformity in reporting. It is a
dynamic code that is regularly reviewed to ensure its relevance
to changing technical and commercial requirements. Work is
progressing on an international standard code.
Ore Reserve estimation
The requirements for Ore Reserve estimation are discussed in
Chapter 6.
Before proceeding to the feasibility study, and often in
conjunction with the study, a due diligence review, often
conducted on an independent basis, will seek to verify the
reliability of all data inputs (Chapter 7; Gilfillan, 1998 and this
volume). Both the prefeasibility study and the due diligence
review may identify areas in which additional exploration or
investigation must be undertaken.
The importance of these studies cannot be over emphasised
since the failure to correct errors or bias at this stage may lead
to serious errors in the estimated Ore Reserve, or in the
computed financial outcomes of the studies.
The estimation of the Ore Reserve and its reporting in
accordance with the JORC Code does not require the completion
of a feasibility study. However, realistic assumptions of
relevant factors must be made to provide a reasonable expectation
that a technically feasible mining and production plan can
be implemented that will lead to the economic viability of the
deposit. In practice it is unlikely that a company would publish
a signed-off Ore Reserve prior to the completion of a study and
it is usual for publication to be made only after the completion
of the feasibility study.
Aspects of the feasibility study are discussed in Chapters 6
and 7 and include the scoping study, management structure
within the team and the relationships between the Feasibility
Study team and the client.
Reconciling the outcomes
The ultimate demonstration of the quality of the evaluation of a
deposit lies in reconciliation between the financial returns
predicted in the Feasibility Study and that actually achieved.
Reconciliation of prediction with outcomes can be monitored
at a number of points in the project but one of the most important
is the reconciliation of mining production with the Ore
Reserve. This is discussed in Chapter 8.