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SOUTH AFRICAN CODE FOR
REPORTING OF MINERAL RESOURCES
AND MINERAL RESERVES
(THE SAMREC CODE)
PREPARED BY THE SOUTH AFRICAN MINERAL
RESOURCE COMMITTEE (SAMREC) UNDER THE
AUSPICES OF THE SOUTH AFRICAN INSTITUTE OF
MINING AND METALLURGY
Effective March 2000
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ACKNOWLEDGEMENTS
WORKING GROUP ON THE COMPILATION OF THE MAIN SOUTH AFRICAN CODE FOR
REPORTING OF MINERAL RESOURCES AND MINERAL RESERVES
Members of the Working Group:
Dr F. Camisani Chairman, SAIMM
M O’Brien Anglo American Corporation
A Clay Private Consultant Firms & Merchant Banks
G Cantello Anglogold
D Dingemans Coal Sub-committee
Dr D Emslie Anglogold
C Geach Association of Law Societies of SA
J Genis Goldfields
R Ingram AVMIN
Prof. D Krige Geostatistical Association of SA
Adv. C Loxton General Council of the BAR of SA
M McWha Chamber of Mines of SA
M Mullins Billiton
A Ross JSE
R Tucker Geological Society of SA
J Visser Council of Professional Land Surveyors
D Young SA Council of Banks
P Wipplinger Council for Geosciences
Additional National Contributors to the Working Group:
Prof C Annhauser Withingyersrand University
A Christie Anglocoal
A J De Klerk SA Council for Natural Scientific Professions
J Ferreira De Beers
J Giezing Private Consultant
Dr W Kleingeld De Beers
P Mellowship Impala Platinum
K Rainer HSBC Investment Services
D J Van Niekerk ISCOR
H Van Der Berg ISCOR
Prof M Veljoen Withingyersrand University
Additional International Contributors to the Working Group from the Task Force on Framework
Classification of the United Nations Economic Commission for Europe (UNFC) and from the
International Definition Group of the Council of the Mining and Metallurgical Institutions (CMMI-IDG):
Dr D Kelter UNFC
Mr N Miskelly CMMI-IDG and JORC
Mr J Postle CMMI-IDG and CIMM
Dr J M Rendu CMMI-IDG and USAIMM
Mr G Ridler CMMI-IDG and IMM
Prof. S Slavov UNFC
Mr N Weatherstone CMMI-IDG and IMM
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SOUTH AFRICAN CODE FOR REPORTING OF MINERAL RESOURCES AND
MINERAL RESERVES
(THE SAMREC CODE)
Table Of Contents
1. FOREWORD
2. INTRODUCTION
3. SCOPE
4. COMPETENCE AND RESPONSIBILITY
5. REPORTING TERMINOLOGY
5.1 Definitions
5.2 Reporting - General
5.3 Reporting of Exploration Results
5.4 Reporting of Mineral Resources
5.5 Reporting of Mineral Reserves
5.6 Reporting of Mineralised Stope-fill, Remnants, Pillars, Low Grade
Mineralisation, Stockpiles, Dumps and Tailings
6. COMMODITY SPECIFIC REPORTING FOR COAL
6.1 General
6.2 Reporting of Coal Resources
6.3 Reporting of Coal Reserves
6.4 Reporting of Coal in Pillars and Remnants, Discard and Reject Coal in
Stockpiles, Dumps and Tailings
7. COMMODITY SPECIFIC REPORTING FOR DIAMONDS
7.1 General
7.2 Reporting of Diamond Resources
7.3 Reporting of Diamond Reserves
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APPENDICES
I. CHECK LIST OF ASSESSMENT AND REPORTING CRITERIA
II. CHECKLIST OF ASSESSMENT AND REPORTING CRITERIA FOR DIAMONDS
1. Definitions
2. Check List
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1 FOREWORD
1.1 The South African Code for Reporting of Mineral Resources and Mineral Reserves (the
‘SAMREC Code’ or ‘the Code’) sets out minimum standards, recommendations and
guidelines for Public Reporting of Exploration Results, Mineral Resources and Mineral
Reserves in South Africa. It has been drawn up by the South African Mineral Resource
Committee (‘SAMREC’) under the auspices of the South African Institute of Mining and
Metallurgy (‘SAIMM’). The SAMREC Committee consists of representatives of the SAIMM,
the South African Council for Natural Scientific Professions (‘SACNASP’), the Geological
Society of South Africa (‘GSSA’), the Geostatistical Association of South Africa (‘GASA’), the
South African Council for Professional Land Surveyors and Technical Surveyors (PLATO),
the Association of Law Societies of South Africa, the General Council of the BAR of South
Africa, the Department of Minerals and Energy, the Johannesburg Stock Exchange (JSE), the
Council for Geoscience, the South African Council of Banks and the Chamber of Mines of
South Africa (‘CoM’). SAMREC was established in 1998 and modeled its Code on the
Australasian Code for Reporting of Mineral Resources and Ore Reserves (‘JORC Code’).
1.2 In 1992 a committee was formed by GSSA, including GASA, in response to the Council of
Mining and Metallurgical Institutions (‘CMMI’) to compile the first South African Code for
reporting Mineral Resource and Mineral Reserves. The final draft (‘Draft 6’) was presented in
conjunction with the SAIMM for discussion at the 1994 CMMI Conference at Sun City and to
the JSE Listing Committee. In 1994, the CMMI formed an ad-hoc International Definitions
Group to create a set of international definitions for reporting Mineral Resources and Mineral
Reserves with representatives from mining and metallurgical institutions from the United
States (‘SME’), Australia (‘AusIMM’), Canada (‘CIM’), the United Kingdom (‘IMM’) and South
Africa (SAIMM). A major breakthrough came in October 1997 when the CMMI International
Definitions Group met in Denver, Colorado and reached a provisional agreement (the Denver
Accord) on definitions of Mineral Resources and Mineral Reserves. Concurrently, and since
1992, the United Nations Economic Commission for Europe (UN-ECE) has been developing
an international framework classification for Mineral Resources and Mineral Reserves. A joint
meeting was held in Geneva on October 4, 1998 between the CMMI International Definitions
Group and the UN-ECE Task Force. Agreement was reached to incorporate the CMMI
standard reporting definitions for Mineral Resources and Mineral Reserves into the UN
Framework Classification, thus giving truly international status to the CMMI definitions. The
definitions in the SAMREC Code are consistent with those agreed at the Denver Accord by
the CMMI participants.
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2 INTRODUCTION
2.1 In this first edition of the SAMREC Code, the guidelines have been placed after the respective
Code clauses to provide assistance and guidance to readers in interpreting the Code. These
guidelines are indented and are in italics. The same indented italics typeface formatting has
been applied to the appendices to this Code.
2.2 The Code has been adopted by SAIMM and SAMREC member organisations and is
incorporated in the JSE rules regarding Listing Requirements and Continuing Obligations.
2.3 The main principles governing the operation and application of the SAMREC Code are
transparency, materiality and competence. Transparency requires that the reader of a Public
Report is provided with sufficient, clear and unambiguous information to understand the report
and is not misled. Materiality requires that a Public Report contains all the information which
investors and their professional advisers would reasonably require, and reasonably expect to
find in the report, for the purpose of making a reasoned and balanced judgement regarding
the mineralisation being reported. Competence requires that the Public Report be based on
the work of a suitably qualified, responsible and experienced person who is subject to an
enforceable professional code of ethics.
2.4 The Code is applicable to all minerals, as defined in the Minerals Act No 50 of 1991, for which
Public Reporting of Exploration Results, Mineral Resources and Mineral Reserves is required
by the JSE. Minerals are defined in this Act as: any substance whether in solid, liquid or
gaseous form, occurring naturally in or on the earth, in or under water or in tailings or
dumps, and having been formed by or subjected to a geological process, excluding
water but including sand, stone, rock, gravel and clay, as well as soil other than
topsoil.
2.5 SAMREC recognises that further review of the Code will be required from time to time.
2.6 Commodity specific reporting requirements of the Code, which may be required for any
specific mineral, are dealt with from Part 6 onwards.
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3 SCOPE
3.1 The Code sets a required minimum standard for Public Reporting. Reference in the Code to
a Public Report or Public Reporting is to a report or reporting on Exploration Results,
Mineral Resources or Mineral Reserves, prepared for the purpose of (a) informing
investors or potential investors and their advisers or (b) satisfying regulatory
requirements. Companies are encouraged to provide information which is as comprehensive
as possible in their Public Reports.
Public Reports include, but are not limited to: company annual reports, quarterly
reports and other reports to the JSE or required by law. It is recommended that the
Code also should apply to the following: information memoranda; expert reports and
technical papers in respect of reporting on Exploration Results, Mineral Resources or
Mineral Reserves.
While every effort has been made within the Code and Guidelines to cover most
situations likely to be encountered in the Public Reporting of Exploration Results,
Mineral Resources and Mineral Reserves, there will be occasions when doubt exists
as to the appropriate procedure to follow. In such cases, users of the Code and those
compiling reports under the Code should be guided by its intent, which is to provide a
minimum standard for Public Reporting; also to ensure that such reporting contains all
information that investors and their professional advisers would require, and expect to
find in the report, for the purpose of making a reasoned and balanced judgement
regarding the mineralisation being reported.
3.2 Public Reports must provide all relevant and material information, necessary for a reasonable
and balanced judgement of the Exploration Results, Mineral Resource or Mineral Reserve to
be made.
Appendix I included at the end of the Code, supplies an outline of items that should
be considered when evaluating a project. The importance of each item will vary with
the specific project and it is recognised that, for some projects, other items may be
relevant which are not on the list. Appendix I should be considered a guide to
facilitate a reasoned and balanced approach to evaluation. However, the need
remains for exploration and mining professionals to make difficult decisions, such as
the classification of material as a Mineral Resource or a Mineral Reserve. Decisions
remain a matter of professional judgment based on knowledge, experience and
industry practices.
Public disclosure is required of those items in Appendix I most likely to affect the
accuracy of estimates made in the report. The authors of reports should both identify
and evaluate these important factors within their reports.
It is recognised that estimates of Exploration Results, Mineral Resources, and Mineral
Reserves, being predictions of what will occur in the future, based on imperfect
knowledge of the present, are inherently subject to some level of confidence and
inaccuracy. Levels of confidence are covered in the Code in Subclause 5.4.6 and
5.5.4.
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4 COMPETENCE AND RESPONSIBILITY
4.1 Documentation detailing Exploration Results, Mineral Resources and Mineral Reserves
estimates from which a Public Report on Exploration Results, Mineral Resources and Mineral
Reserves is prepared, must be prepared by or under the direction of, and signed by, a
Competent Person.
4.2 A Public Report concerning a company’s Exploration Results, Mineral Resources and/or
Mineral Reserves is the responsibility of the company acting through its Board of Directors.
Any such report must be based on, and fairly reflect, a Mineral Resource and/or Mineral
Reserve report and supporting documentation prepared by a Competent Person. A Public
Report shall disclose the name of the Competent Person, his qualifications, professional
affiliations and relevant experience. The Competent Person’s written approval is required for
the parts of his work included in the report.
Where any specific report is referred to in a Public Report, the written approval of the
reporter must be obtained to the form and content in which that report is to be
included in the Public Report.
4.3 A ‘Competent Person’ is a person who is a member of the South African Council for
Natural Scientific Professions (SACNASP), or the Engineering Council of South Africa
(ECSA), or the South African Council for Professional Land Surveyors and Technical
Surveyors (PLATO) or any other statutory South African or international body that is
recognised by SAMREC. A Competent Person should have a minimum of five years
experience relevant to the style of mineralisation and type of deposit under
consideration and to the activity which that person is undertaking. If the Competent
Person is estimating, or supervising the estimation of Mineral Resources, the relevant
experience must be in the estimation, assessment and evaluation of Mineral
Resources. If the Competent Person is estimating, or supervising the estimation of
Mineral Reserves, the relevant experience must be in the estimation, assessment,
evaluation and economic extraction of Mineral Reserves.
The key qualifier in the definition of a Competent Person is the word ‘ relevant’.
Determination of what constitutes relevant experience can be difficult and common
sense should be exercised. For example, in estimating vein gold mineralisation,
experience in a high-nugget, vein-type mineralisation such as tin, uranium etc. will
probably be relevant, whereas experience in massive-type deposits may not be. As a
second example, a person, to be considered competent in evaluating and reporting
on alluvial gold deposits, should have considerable experience in this type of
mineralisation, because of the characteristics of gold in alluvial systems, the particle
sizing of the host sediment, and the low grades being quantified. Experience with
placer deposits containing minerals other than gold may not necessarily provide
relevant experience.
The key word ‘relevant’ also means that it is not always necessary for a person to
have five years experience in each and every type of deposit in order to act as a
Competent Person if that person has relevant experience in other deposit types. For
example, a person with twenty years experience in Mineral Resource estimation in a
variety of metalliferous hard-rock deposit types may not require five years specific
experience in porphyry copper deposits in order to act as a Competent Person.
Relevant experience in the other deposit types would count towards the required
experience in relation to porphyry copper deposits.
In addition to experience in the style of mineralisation, a Competent Person reporting
Mineral Resources must have sufficient knowledge of sampling and assaying
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techniques relevant to the deposit under consideration to be aware of problems which
could affect the reliability of the data. Some appreciation of extraction and processing
techniques applicable to that deposit type would also be important.
As a general guide, persons being called upon to sign as a Competent Person should
be clearly satisfied in their own minds that they could face their peers and
demonstrate competence in the commodity, type of deposit and situation under
consideration.
Estimation of Mineral Resources may be a team effort (for example, involving one
person or team collecting the data and another person or team preparing the Mineral
Resource estimate). Estimation of Mineral Reserves is commonly a team effort
involving a number of technical disciplines. The Competent Person who signs the
report is responsible and accountable for the whole of the report under the Code.
However, it is recommended that, where there is a clear division of responsibilities
within a team, each person must accept responsibility for, his or her particular
contribution. For example, one person could accept responsibility for the collection of
Resource data, another for the Resource estimation process, another for the
mineability study, and the project leader could accept responsibility for the overall
report. It is important that the Competent Person accepting overall responsibility for a
Mineral Resource or Mineral Reserve report which has been prepared in whole or in
part by others is satisfied that the work of the other contributors is acceptable and that
the constituent parts of the report have been signed off by such contributors.
The Competent Person undertaking Mineral Resource or Mineral Reserve reporting
must accept full responsibility for the report and must not treat the procedure merely
as a ‘rubber-stamp’ exercise. If a complaint is made in respect of the professional
work of a Competent Person, the complaint will be referred to the SAMREC
recognised body with which the Competent Person is registered.
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5 REPORTING TERMINOLOGY
5.1 Definitions
5.1.1 Public Reports dealing with Mineral Resources and/or Mineral Reserves must only use the
terms set out in Figure 5.1.
EXPLORATION
RESULTS
MINERAL MINERAL
Increasing RESOURCES RESERVES
level of Reported as in situ Reported as
geoscientific mineralisation mineable production
knowledge estimates estimates
and
confidence INFERRED
INDICATED PROBABLE
MEASURED PROVED
Consideration of mining, metallurgical, economic, marketing, legal,
environmental, social and governmental factors
(the 'modifying factors')
Figure 5.1 Relationship between Mineral Resources and Mineral Reserves
Figure 5.1 sets out the framework for classifying tonnage and grade estimates so as
to reflect different levels of geoscientific confidence and different degrees of technical
and economic evaluation. Mineral Resources can be estimated on the basis of
geoscientific information with input from relevant disciplines. Mineral Reserves, which
are a modified sub-set of the Indicated and Measured Mineral Resources (shown
within the dashed outline in Figure 5.1), require consideration of factors affecting
extraction, including mining, metallurgical, economic, marketing, legal, environmental,
social and governmental factors (‘modifying factors’), and should in most instances be
estimated with input from a range of disciplines.
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In certain situations, Measured Mineral Resources could convert to Probable Mineral
Reserves because of uncertainties associated with modifying factors which are taken
into account in the conversion from Mineral Resources to Mineral Reserves. This
relationship is shown by the broken arrow in Figure 5.1. Although the trend of the
broken arrow includes a vertical component, it does not, in this instance, imply a
reduction in the level of geological knowledge or confidence. In such a situation these
modifying factors should be fully explained. Refer also to guidelines in Subclause
5.5.4
5.2 Reporting – General
5.2.1 Public Reporting concerning a company’s Exploration Results, Mineral Resources or Mineral
Reserves should include a description of the style and nature of mineralisation.
5.2.2 A company must disclose relevant information concerning the status and characteristics of a
mineral deposit which could materially influence the economic value of that deposit, and
promptly report any material changes in its Exploration Results, Mineral Resources or Mineral
Reserves.
5.2.3 When reporting on commodity specific requirements for Coal Resources and Coal Reserves,
reference must be made to Part 6, which contains amendments and additions, which will take
precedence over all common subclauses in Parts 1 to 5.
5.2.4 When reporting on commodity specific requirements for Diamond Resources and Diamond
Reserves, reference must be made to Part 7, which contains amendments and additions,
which will take precedence over all common subclauses in Parts 1 to 5.
5.2.5 Throughout the Code, where appropriate, ‘quality’ may be substituted for ‘grade’ and ‘volume’
may be substituted for ‘tonnage’. In this Code any reference to the singular shall include a
reference to the plural, where appropriate.
5.3 Reporting of Exploration Results
5.3.1 If a Company reports Exploration Results in relation to mineralisation not classified as a
Mineral Resource or Mineral Reserve, then estimates of tonnage and associated average
grade must not be reported.
Descriptions of exploration targets or exploration potential given in Public Reports,
must be expressed so as not to misrepresent them as an estimate of Mineral
Resources or Mineral Reserves.
5.3.2 Public Reports of Exploration Results relating to mineralisation not classified as a Mineral
Resource or Mineral Reserve must contain sufficient information to allow a considered and
balanced judgement of the significance of the results. This must include all relevant
prospecting information. The reporting of Exploration Results must not be presented so as to
unreasonably imply that potentially economic mineralisation has been discovered.
Prospecting information should include the interpretation of geological continuity,
sampling results, locations etc. Appendix I, at the end of this Code, is a checklist
guideline that those preparing reports on Exploration Results, Mineral Resources and
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Mineral Reserves should use as a reference. The checklist is not prescriptive and, as
always, relevance and materiality are overriding principles that determine what
information should be publicly reported. Reporting of isolated values without placing
them in perspective is unacceptable.
5.4 Reporting of Mineral Resources
5.4.1 A ‘Mineral Resource’ is a concentration [or occurrence] of material of economic
interest in or on the Earth’s crust in such form, quality and quantity that there are
reasonable and realistic prospects for eventual economic extraction. The location,
quantity, grade, continuity and other geological characteristics of a Mineral Resource
are known, estimated from specific geological evidence and knowledge, or interpreted
from a well constrained and portrayed geological model. Mineral Resources are
subdivided, in order of increasing confidence in respect of geoscientific evidence, into
Inferred, Indicated and Measured categories.
A deposit is a concentration [or occurrence] of material of possible economic interest in or on
the Earth’s crust.
Portions of a deposit that do not have reasonable and realistic prospects for eventual
economic extraction must not be included in a Mineral Resource.
If the assessment of ‘reasonable and realistic prospects’ is uncertain, concerns
relating to that uncertainty and details of such included resources must be given.
The term ‘Mineral Resource’ covers the in-situ mineralisation as well as dumps or
tailings, which have been identified and estimated through exploration/assessment
and sampling from which Mineral Reserves may be derived by the application of
technical, economic, legal, environmental, social, marketing, governmental and
political factors.
The term ‘reasonable and realistic prospects for eventual economic extraction’
implies a judgement (albeit preliminary) by the Competent Person in respect of the
economic factors likely to influence the prospect of economic extraction, including the
approximate mining parameters. In other words, a Mineral Resource is not an
inventory of all mineralisation drilled or sampled, regardless of cut-off grades, likely
mining dimensions, location or continuity. It is a realistic inventory of mineralisation,
which, under assumed and justifiable technical and economic conditions, might
become economically extractable.
Interpretation of the word ‘eventual’ in this context may vary depending on the
commodity or mineral involved. For example, for many coal, iron ore, bauxite and
other bulk minerals or commodities, it may be reasonable to envisage ‘eventual
economic extraction’ as covering time periods in excess of 50 years. However for the
majority of gold deposits, application of the concept would normally be restricted to
perhaps 20 to 30 years, and frequently to much shorter periods of time.
Certain reports (e.g.: inventory reports, exploration reports to government and other
similar reports not intended primarily for providing information for investment
purposes) may require full disclosure of all mineralisation, including some material
that does not have reasonable and realistic prospects for eventual economic
extraction. Such estimates of mineralisation would not qualify as Mineral Resources
or Mineral Reserves.
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Mineral Resource estimates are sometimes reported after adjustment by the cutting
of high grades. If any of the data are materially adjusted or modified for the purpose
of making the estimate, this must be clearly stated in the Public Report and the nature
of the adjustment or modification described.
Where considered appropriate by the Competent Person, Mineral Resource
estimates may include mineralisation below the selected cut-off grade to ensure that
the Mineral Resources comprise bodies of mineralisation of adequate size and
continuity to properly consider the most appropriate approach to mining including any
dilution resulting from the requirements of any minimum mining width. Documentation
of Mineral Resource estimates should clearly identify any such inclusions, and Public
Reports should include commentary on the matter if considered material.
5.4.2 Mineral Resource estimates are not precise calculations, being dependent on the
interpretation of limited information on the location, shape and continuity of the occurrence
and on the available sampling results. Reporting of tonnage and grade figures must reflect
the order of accuracy of the estimate by rounding off to appropriately significant figures and,
in the case of Inferred Mineral Resources, by qualification with terms such as ‘approximately’.
Rounding off must convey the uncertainties in estimation.
In order to emphasise the imprecise nature of a Mineral Resource or Mineral Reserve
estimate, it is recommended that the final results always be referred to as an estimate
not a calculation.
5.4.3 An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which tonnage,
grade and mineral content can be estimated with a low level of confidence. It is inferred
from geological evidence and assumed but not verified geological and/or grade
continuity. It is based on information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes that may be limited
or of uncertain quality and reliability.
An Inferred Mineral Resource has a lower level of confidence than that applying to an
Indicated Mineral Resource.
The category is intended to cover situations where a mineral concentration or
occurrence has been identified and limited measurements and sampling completed,
but where the data are insufficient to allow the geological and/or grade continuity to
be confidently interpreted. Due to the uncertainty which may be attached to some
Inferred Mineral Resources, it cannot be assumed that all or part of an Inferred
Mineral Resource will necessarily be upgraded to an Indicated or Measured Mineral
Resource as a result of continued exploration.
Confidence in the estimate is usually not sufficient to allow the appropriate application
of technical and economic parameters or to enable an evaluation of economic
viability. Caution should be exercised if this category is considered in economic
studies, and if included, full disclosure and the effect on the results of the economic
studies must be stated. A comparison between the two scenarios, the one with
inclusion and the one without inclusion, must be fully explained in the Public Report in
such a way as not to mislead the investors (see also Subclause 5.4.6).
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5.4.4 An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which tonnage,
densities, shape, physical characteristics, grade and mineral content can be estimated
with a reasonable level of confidence. It is based on exploration, sampling and testing
information gathered through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes. The locations are too widely or inappropriately
spaced to confirm geological and/or grade continuity but are spaced closely enough
for continuity to be assumed.
An Indicated Mineral Resource has a lower level of confidence than that applying to a
Measured Mineral Resource, but has a higher level of confidence than that applying to an
Inferred Mineral Resource.
An Indicated Mineral Resource requires that the nature, quality, amount and
distribution of data are such as to allow the Competent Person to confidently interpret
the geological framework and to assume geological continuity of mineralisation.
Confidence in the estimate is sufficient to allow the appropriate application of
technical and economic parameters and to enable an evaluation of economic viability.
5.4.5 A ‘Measured Mineral Resource’ is that part of a Mineral Resource for which tonnage,
densities, shape, physical characteristics, grade and mineral content can be estimated
with a high level of confidence. It is based on detailed and reliable exploration,
sampling and testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes. The locations are
spaced closely enough to confirm geological and grade continuity.
A Measured Mineral Resource requires that the nature, quality, amount and
distribution of data are such as to leave no reasonable doubt in the opinion of the
Competent Person, that the tonnage and grade of the mineralisation can be
estimated to within close limits and that any variation within these limits would not
significantly affect potential economic viability. This category requires a high level of
confidence in, and understanding of, the geology and the controls of the mineral
deposit. Confidence in the estimate is sufficient to allow the appropriate application
of technical and economic parameters and to enable an evaluation of economic
viability with a high level of confidence.
5.4.6 The choice of the appropriate category of Mineral Resource depends upon the quantity,
distribution and quality of data available and the level of confidence attached to the data. The
appropriate Mineral Resource category must be determined by a Competent Person.
Mineral Resource classification is a matter for skilled judgement and the Competent
Person must take into account those items in Appendix I which relate to confidence,
accuracy (i.e. lack of bias) and precision in Mineral Resource estimation.
In deciding between Measured Mineral Resources and Indicated Mineral Resources,
the Competent Person may find it useful to consider, in addition to the phrases in the
two definitions relating to geological and grade continuity in Subclauses 5.4.4 and
5.4.5, the phrase in the guideline to the definition for Measured Mineral Resources,
‘.... any variation within these limits would not significantly affect potential economic
viability’.
In deciding between Indicated Mineral Resources and Inferred Mineral Resources,
the Competent Person may wish to take into account, in addition to the phrases in the
two definitions in Subclauses 5.4.3 and 5.4.4 relating to geological and grade
continuity, the guideline to the definition for Indicated Mineral Resources: ‘Confidence
in the estimate is sufficient to allow the appropriate application of technical, economic
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and financial parameters and to enable an evaluation of economic viability’. This
contrasts with the guideline to the definition of Inferred Mineral Resources:
‘Confidence in the estimates is usually not sufficient to allow the appropriate
application of technical, economic and financial parameters or to enable an
evaluation of economic viability. Caution should be exercised if this category is
considered in economic studies, and if included, full disclosure and the effect on the
results of the economic studies must be stated. A comparison between the two
scenarios, the one with inclusion and the one without inclusion, must be fully
explained in the Public Report in such a way as not to mislead the investors.’
5.4.7 Mineral Resource estimates are not precise calculations, and tonnage and grade figures in
reports must be expressed so as to convey the order of accuracy of the estimates by
rounding off to appropriately significant figures.
Rounding off must convey the uncertainties in estimation.
In order to emphasise the imprecise nature of a Mineral Resource estimate, it is
recommended that the final results always be referred to as an estimate not a
calculation.
5.4.8 Public Reports of Mineral Resources must specify one or more of the categories of ‘Inferred’,
‘Indicated’ or ‘Measured’. Reports must not contain Mineral Resource figures combining two
or more of the categories unless figures for the individual categories are also provided. A
Mineral Resource must not be reported in terms of contained mineral content unless
corresponding tonnage and grade figures are also presented.
Appendix I provides, in a summary form, a list of the main criteria which should be
applied when preparing reports on Exploration Results, Mineral Resources and
Mineral Reserves. These criteria need not be discussed in a Public Report unless
they materially affect estimation or classification of the Mineral Resources and
Mineral Reserves.
It is not necessary, in a Public Report, to comment on each item in Appendix I, but it
is essential to discuss any matters which might materially affect the reader’s
understanding or interpretation of the results or estimates being reported. This is
particularly important where inadequate or uncertain data affect the reliability of, or
confidence in, a statement of Exploration Results or an estimate of Mineral
Resources and/or Mineral Reserves, for example poor sample recovery, poor
repeatability of assay or laboratory results, limited information on tonnage factors etc.
5.4.9. The words ‘ore’ and ‘reserves’ must not be used in stating Mineral Resource estimates as the
terms imply technical feasibility and economic viability and are only appropriate when all
relevant modifying factors have been considered. Reports and statements should continue to
refer to the appropriate category or categories of Mineral Resources until technical feasibility
and economic viability have been established. If re-evaluation indicates that any of the
Mineral Reserves is no longer viable, such Mineral Reserve must be reclassified.
It is not intended that re-classification from Mineral Reserves to Mineral Resources or
vice-versa should be applied as a result of changes expected to be of a short term or
temporary nature, or where company management has made a deliberate decision to
temporarily operate on a sub-economic basis. Examples of such situations might be
a commodity price drop expected to be of short duration, mine emergency of a nonpermanent
nature, transport strike etc.
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SOUTH AFRICAN CODE FOR
REPORTING OF MINERAL RESOURCES
AND MINERAL RESERVES
(THE SAMREC CODE)
PREPARED BY THE SOUTH AFRICAN MINERAL
RESOURCE COMMITTEE (SAMREC) UNDER THE
AUSPICES OF THE SOUTH AFRICAN INSTITUTE OF
MINING AND METALLURGY
Effective March 2000
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ACKNOWLEDGEMENTS
WORKING GROUP ON THE COMPILATION OF THE MAIN SOUTH AFRICAN CODE FOR
REPORTING OF MINERAL RESOURCES AND MINERAL RESERVES
Members of the Working Group:
Dr F. Camisani Chairman, SAIMM
M O’Brien Anglo American Corporation
A Clay Private Consultant Firms & Merchant Banks
G Cantello Anglogold
D Dingemans Coal Sub-committee
Dr D Emslie Anglogold
C Geach Association of Law Societies of SA
J Genis Goldfields
R Ingram AVMIN
Prof. D Krige Geostatistical Association of SA
Adv. C Loxton General Council of the BAR of SA
M McWha Chamber of Mines of SA
M Mullins Billiton
A Ross JSE
R Tucker Geological Society of SA
J Visser Council of Professional Land Surveyors
D Young SA Council of Banks
P Wipplinger Council for Geosciences
Additional National Contributors to the Working Group:
Prof C Annhauser Withingyersrand University
A Christie Anglocoal
A J De Klerk SA Council for Natural Scientific Professions
J Ferreira De Beers
J Giezing Private Consultant
Dr W Kleingeld De Beers
P Mellowship Impala Platinum
K Rainer HSBC Investment Services
D J Van Niekerk ISCOR
H Van Der Berg ISCOR
Prof M Veljoen Withingyersrand University
Additional International Contributors to the Working Group from the Task Force on Framework
Classification of the United Nations Economic Commission for Europe (UNFC) and from the
International Definition Group of the Council of the Mining and Metallurgical Institutions (CMMI-IDG):
Dr D Kelter UNFC
Mr N Miskelly CMMI-IDG and JORC
Mr J Postle CMMI-IDG and CIMM
Dr J M Rendu CMMI-IDG and USAIMM
Mr G Ridler CMMI-IDG and IMM
Prof. S Slavov UNFC
Mr N Weatherstone CMMI-IDG and IMM
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SOUTH AFRICAN CODE FOR REPORTING OF MINERAL RESOURCES AND
MINERAL RESERVES
(THE SAMREC CODE)
Table Of Contents
1. FOREWORD
2. INTRODUCTION
3. SCOPE
4. COMPETENCE AND RESPONSIBILITY
5. REPORTING TERMINOLOGY
5.1 Definitions
5.2 Reporting - General
5.3 Reporting of Exploration Results
5.4 Reporting of Mineral Resources
5.5 Reporting of Mineral Reserves
5.6 Reporting of Mineralised Stope-fill, Remnants, Pillars, Low Grade
Mineralisation, Stockpiles, Dumps and Tailings
6. COMMODITY SPECIFIC REPORTING FOR COAL
6.1 General
6.2 Reporting of Coal Resources
6.3 Reporting of Coal Reserves
6.4 Reporting of Coal in Pillars and Remnants, Discard and Reject Coal in
Stockpiles, Dumps and Tailings
7. COMMODITY SPECIFIC REPORTING FOR DIAMONDS
7.1 General
7.2 Reporting of Diamond Resources
7.3 Reporting of Diamond Reserves
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APPENDICES
I. CHECK LIST OF ASSESSMENT AND REPORTING CRITERIA
II. CHECKLIST OF ASSESSMENT AND REPORTING CRITERIA FOR DIAMONDS
1. Definitions
2. Check List
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1 FOREWORD
1.1 The South African Code for Reporting of Mineral Resources and Mineral Reserves (the
‘SAMREC Code’ or ‘the Code’) sets out minimum standards, recommendations and
guidelines for Public Reporting of Exploration Results, Mineral Resources and Mineral
Reserves in South Africa. It has been drawn up by the South African Mineral Resource
Committee (‘SAMREC’) under the auspices of the South African Institute of Mining and
Metallurgy (‘SAIMM’). The SAMREC Committee consists of representatives of the SAIMM,
the South African Council for Natural Scientific Professions (‘SACNASP’), the Geological
Society of South Africa (‘GSSA’), the Geostatistical Association of South Africa (‘GASA’), the
South African Council for Professional Land Surveyors and Technical Surveyors (PLATO),
the Association of Law Societies of South Africa, the General Council of the BAR of South
Africa, the Department of Minerals and Energy, the Johannesburg Stock Exchange (JSE), the
Council for Geoscience, the South African Council of Banks and the Chamber of Mines of
South Africa (‘CoM’). SAMREC was established in 1998 and modeled its Code on the
Australasian Code for Reporting of Mineral Resources and Ore Reserves (‘JORC Code’).
1.2 In 1992 a committee was formed by GSSA, including GASA, in response to the Council of
Mining and Metallurgical Institutions (‘CMMI’) to compile the first South African Code for
reporting Mineral Resource and Mineral Reserves. The final draft (‘Draft 6’) was presented in
conjunction with the SAIMM for discussion at the 1994 CMMI Conference at Sun City and to
the JSE Listing Committee. In 1994, the CMMI formed an ad-hoc International Definitions
Group to create a set of international definitions for reporting Mineral Resources and Mineral
Reserves with representatives from mining and metallurgical institutions from the United
States (‘SME’), Australia (‘AusIMM’), Canada (‘CIM’), the United Kingdom (‘IMM’) and South
Africa (SAIMM). A major breakthrough came in October 1997 when the CMMI International
Definitions Group met in Denver, Colorado and reached a provisional agreement (the Denver
Accord) on definitions of Mineral Resources and Mineral Reserves. Concurrently, and since
1992, the United Nations Economic Commission for Europe (UN-ECE) has been developing
an international framework classification for Mineral Resources and Mineral Reserves. A joint
meeting was held in Geneva on October 4, 1998 between the CMMI International Definitions
Group and the UN-ECE Task Force. Agreement was reached to incorporate the CMMI
standard reporting definitions for Mineral Resources and Mineral Reserves into the UN
Framework Classification, thus giving truly international status to the CMMI definitions. The
definitions in the SAMREC Code are consistent with those agreed at the Denver Accord by
the CMMI participants.
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2 INTRODUCTION
2.1 In this first edition of the SAMREC Code, the guidelines have been placed after the respective
Code clauses to provide assistance and guidance to readers in interpreting the Code. These
guidelines are indented and are in italics. The same indented italics typeface formatting has
been applied to the appendices to this Code.
2.2 The Code has been adopted by SAIMM and SAMREC member organisations and is
incorporated in the JSE rules regarding Listing Requirements and Continuing Obligations.
2.3 The main principles governing the operation and application of the SAMREC Code are
transparency, materiality and competence. Transparency requires that the reader of a Public
Report is provided with sufficient, clear and unambiguous information to understand the report
and is not misled. Materiality requires that a Public Report contains all the information which
investors and their professional advisers would reasonably require, and reasonably expect to
find in the report, for the purpose of making a reasoned and balanced judgement regarding
the mineralisation being reported. Competence requires that the Public Report be based on
the work of a suitably qualified, responsible and experienced person who is subject to an
enforceable professional code of ethics.
2.4 The Code is applicable to all minerals, as defined in the Minerals Act No 50 of 1991, for which
Public Reporting of Exploration Results, Mineral Resources and Mineral Reserves is required
by the JSE. Minerals are defined in this Act as: any substance whether in solid, liquid or
gaseous form, occurring naturally in or on the earth, in or under water or in tailings or
dumps, and having been formed by or subjected to a geological process, excluding
water but including sand, stone, rock, gravel and clay, as well as soil other than
topsoil.
2.5 SAMREC recognises that further review of the Code will be required from time to time.
2.6 Commodity specific reporting requirements of the Code, which may be required for any
specific mineral, are dealt with from Part 6 onwards.
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3 SCOPE
3.1 The Code sets a required minimum standard for Public Reporting. Reference in the Code to
a Public Report or Public Reporting is to a report or reporting on Exploration Results,
Mineral Resources or Mineral Reserves, prepared for the purpose of (a) informing
investors or potential investors and their advisers or (b) satisfying regulatory
requirements. Companies are encouraged to provide information which is as comprehensive
as possible in their Public Reports.
Public Reports include, but are not limited to: company annual reports, quarterly
reports and other reports to the JSE or required by law. It is recommended that the
Code also should apply to the following: information memoranda; expert reports and
technical papers in respect of reporting on Exploration Results, Mineral Resources or
Mineral Reserves.
While every effort has been made within the Code and Guidelines to cover most
situations likely to be encountered in the Public Reporting of Exploration Results,
Mineral Resources and Mineral Reserves, there will be occasions when doubt exists
as to the appropriate procedure to follow. In such cases, users of the Code and those
compiling reports under the Code should be guided by its intent, which is to provide a
minimum standard for Public Reporting; also to ensure that such reporting contains all
information that investors and their professional advisers would require, and expect to
find in the report, for the purpose of making a reasoned and balanced judgement
regarding the mineralisation being reported.
3.2 Public Reports must provide all relevant and material information, necessary for a reasonable
and balanced judgement of the Exploration Results, Mineral Resource or Mineral Reserve to
be made.
Appendix I included at the end of the Code, supplies an outline of items that should
be considered when evaluating a project. The importance of each item will vary with
the specific project and it is recognised that, for some projects, other items may be
relevant which are not on the list. Appendix I should be considered a guide to
facilitate a reasoned and balanced approach to evaluation. However, the need
remains for exploration and mining professionals to make difficult decisions, such as
the classification of material as a Mineral Resource or a Mineral Reserve. Decisions
remain a matter of professional judgment based on knowledge, experience and
industry practices.
Public disclosure is required of those items in Appendix I most likely to affect the
accuracy of estimates made in the report. The authors of reports should both identify
and evaluate these important factors within their reports.
It is recognised that estimates of Exploration Results, Mineral Resources, and Mineral
Reserves, being predictions of what will occur in the future, based on imperfect
knowledge of the present, are inherently subject to some level of confidence and
inaccuracy. Levels of confidence are covered in the Code in Subclause 5.4.6 and
5.5.4.
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4 COMPETENCE AND RESPONSIBILITY
4.1 Documentation detailing Exploration Results, Mineral Resources and Mineral Reserves
estimates from which a Public Report on Exploration Results, Mineral Resources and Mineral
Reserves is prepared, must be prepared by or under the direction of, and signed by, a
Competent Person.
4.2 A Public Report concerning a company’s Exploration Results, Mineral Resources and/or
Mineral Reserves is the responsibility of the company acting through its Board of Directors.
Any such report must be based on, and fairly reflect, a Mineral Resource and/or Mineral
Reserve report and supporting documentation prepared by a Competent Person. A Public
Report shall disclose the name of the Competent Person, his qualifications, professional
affiliations and relevant experience. The Competent Person’s written approval is required for
the parts of his work included in the report.
Where any specific report is referred to in a Public Report, the written approval of the
reporter must be obtained to the form and content in which that report is to be
included in the Public Report.
4.3 A ‘Competent Person’ is a person who is a member of the South African Council for
Natural Scientific Professions (SACNASP), or the Engineering Council of South Africa
(ECSA), or the South African Council for Professional Land Surveyors and Technical
Surveyors (PLATO) or any other statutory South African or international body that is
recognised by SAMREC. A Competent Person should have a minimum of five years
experience relevant to the style of mineralisation and type of deposit under
consideration and to the activity which that person is undertaking. If the Competent
Person is estimating, or supervising the estimation of Mineral Resources, the relevant
experience must be in the estimation, assessment and evaluation of Mineral
Resources. If the Competent Person is estimating, or supervising the estimation of
Mineral Reserves, the relevant experience must be in the estimation, assessment,
evaluation and economic extraction of Mineral Reserves.
The key qualifier in the definition of a Competent Person is the word ‘ relevant’.
Determination of what constitutes relevant experience can be difficult and common
sense should be exercised. For example, in estimating vein gold mineralisation,
experience in a high-nugget, vein-type mineralisation such as tin, uranium etc. will
probably be relevant, whereas experience in massive-type deposits may not be. As a
second example, a person, to be considered competent in evaluating and reporting
on alluvial gold deposits, should have considerable experience in this type of
mineralisation, because of the characteristics of gold in alluvial systems, the particle
sizing of the host sediment, and the low grades being quantified. Experience with
placer deposits containing minerals other than gold may not necessarily provide
relevant experience.
The key word ‘relevant’ also means that it is not always necessary for a person to
have five years experience in each and every type of deposit in order to act as a
Competent Person if that person has relevant experience in other deposit types. For
example, a person with twenty years experience in Mineral Resource estimation in a
variety of metalliferous hard-rock deposit types may not require five years specific
experience in porphyry copper deposits in order to act as a Competent Person.
Relevant experience in the other deposit types would count towards the required
experience in relation to porphyry copper deposits.
In addition to experience in the style of mineralisation, a Competent Person reporting
Mineral Resources must have sufficient knowledge of sampling and assaying
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techniques relevant to the deposit under consideration to be aware of problems which
could affect the reliability of the data. Some appreciation of extraction and processing
techniques applicable to that deposit type would also be important.
As a general guide, persons being called upon to sign as a Competent Person should
be clearly satisfied in their own minds that they could face their peers and
demonstrate competence in the commodity, type of deposit and situation under
consideration.
Estimation of Mineral Resources may be a team effort (for example, involving one
person or team collecting the data and another person or team preparing the Mineral
Resource estimate). Estimation of Mineral Reserves is commonly a team effort
involving a number of technical disciplines. The Competent Person who signs the
report is responsible and accountable for the whole of the report under the Code.
However, it is recommended that, where there is a clear division of responsibilities
within a team, each person must accept responsibility for, his or her particular
contribution. For example, one person could accept responsibility for the collection of
Resource data, another for the Resource estimation process, another for the
mineability study, and the project leader could accept responsibility for the overall
report. It is important that the Competent Person accepting overall responsibility for a
Mineral Resource or Mineral Reserve report which has been prepared in whole or in
part by others is satisfied that the work of the other contributors is acceptable and that
the constituent parts of the report have been signed off by such contributors.
The Competent Person undertaking Mineral Resource or Mineral Reserve reporting
must accept full responsibility for the report and must not treat the procedure merely
as a ‘rubber-stamp’ exercise. If a complaint is made in respect of the professional
work of a Competent Person, the complaint will be referred to the SAMREC
recognised body with which the Competent Person is registered.
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5 REPORTING TERMINOLOGY
5.1 Definitions
5.1.1 Public Reports dealing with Mineral Resources and/or Mineral Reserves must only use the
terms set out in Figure 5.1.
EXPLORATION
RESULTS
MINERAL MINERAL
Increasing RESOURCES RESERVES
level of Reported as in situ Reported as
geoscientific mineralisation mineable production
knowledge estimates estimates
and
confidence INFERRED
INDICATED PROBABLE
MEASURED PROVED
Consideration of mining, metallurgical, economic, marketing, legal,
environmental, social and governmental factors
(the 'modifying factors')
Figure 5.1 Relationship between Mineral Resources and Mineral Reserves
Figure 5.1 sets out the framework for classifying tonnage and grade estimates so as
to reflect different levels of geoscientific confidence and different degrees of technical
and economic evaluation. Mineral Resources can be estimated on the basis of
geoscientific information with input from relevant disciplines. Mineral Reserves, which
are a modified sub-set of the Indicated and Measured Mineral Resources (shown
within the dashed outline in Figure 5.1), require consideration of factors affecting
extraction, including mining, metallurgical, economic, marketing, legal, environmental,
social and governmental factors (‘modifying factors’), and should in most instances be
estimated with input from a range of disciplines.
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In certain situations, Measured Mineral Resources could convert to Probable Mineral
Reserves because of uncertainties associated with modifying factors which are taken
into account in the conversion from Mineral Resources to Mineral Reserves. This
relationship is shown by the broken arrow in Figure 5.1. Although the trend of the
broken arrow includes a vertical component, it does not, in this instance, imply a
reduction in the level of geological knowledge or confidence. In such a situation these
modifying factors should be fully explained. Refer also to guidelines in Subclause
5.5.4
5.2 Reporting – General
5.2.1 Public Reporting concerning a company’s Exploration Results, Mineral Resources or Mineral
Reserves should include a description of the style and nature of mineralisation.
5.2.2 A company must disclose relevant information concerning the status and characteristics of a
mineral deposit which could materially influence the economic value of that deposit, and
promptly report any material changes in its Exploration Results, Mineral Resources or Mineral
Reserves.
5.2.3 When reporting on commodity specific requirements for Coal Resources and Coal Reserves,
reference must be made to Part 6, which contains amendments and additions, which will take
precedence over all common subclauses in Parts 1 to 5.
5.2.4 When reporting on commodity specific requirements for Diamond Resources and Diamond
Reserves, reference must be made to Part 7, which contains amendments and additions,
which will take precedence over all common subclauses in Parts 1 to 5.
5.2.5 Throughout the Code, where appropriate, ‘quality’ may be substituted for ‘grade’ and ‘volume’
may be substituted for ‘tonnage’. In this Code any reference to the singular shall include a
reference to the plural, where appropriate.
5.3 Reporting of Exploration Results
5.3.1 If a Company reports Exploration Results in relation to mineralisation not classified as a
Mineral Resource or Mineral Reserve, then estimates of tonnage and associated average
grade must not be reported.
Descriptions of exploration targets or exploration potential given in Public Reports,
must be expressed so as not to misrepresent them as an estimate of Mineral
Resources or Mineral Reserves.
5.3.2 Public Reports of Exploration Results relating to mineralisation not classified as a Mineral
Resource or Mineral Reserve must contain sufficient information to allow a considered and
balanced judgement of the significance of the results. This must include all relevant
prospecting information. The reporting of Exploration Results must not be presented so as to
unreasonably imply that potentially economic mineralisation has been discovered.
Prospecting information should include the interpretation of geological continuity,
sampling results, locations etc. Appendix I, at the end of this Code, is a checklist
guideline that those preparing reports on Exploration Results, Mineral Resources and
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Mineral Reserves should use as a reference. The checklist is not prescriptive and, as
always, relevance and materiality are overriding principles that determine what
information should be publicly reported. Reporting of isolated values without placing
them in perspective is unacceptable.
5.4 Reporting of Mineral Resources
5.4.1 A ‘Mineral Resource’ is a concentration [or occurrence] of material of economic
interest in or on the Earth’s crust in such form, quality and quantity that there are
reasonable and realistic prospects for eventual economic extraction. The location,
quantity, grade, continuity and other geological characteristics of a Mineral Resource
are known, estimated from specific geological evidence and knowledge, or interpreted
from a well constrained and portrayed geological model. Mineral Resources are
subdivided, in order of increasing confidence in respect of geoscientific evidence, into
Inferred, Indicated and Measured categories.
A deposit is a concentration [or occurrence] of material of possible economic interest in or on
the Earth’s crust.
Portions of a deposit that do not have reasonable and realistic prospects for eventual
economic extraction must not be included in a Mineral Resource.
If the assessment of ‘reasonable and realistic prospects’ is uncertain, concerns
relating to that uncertainty and details of such included resources must be given.
The term ‘Mineral Resource’ covers the in-situ mineralisation as well as dumps or
tailings, which have been identified and estimated through exploration/assessment
and sampling from which Mineral Reserves may be derived by the application of
technical, economic, legal, environmental, social, marketing, governmental and
political factors.
The term ‘reasonable and realistic prospects for eventual economic extraction’
implies a judgement (albeit preliminary) by the Competent Person in respect of the
economic factors likely to influence the prospect of economic extraction, including the
approximate mining parameters. In other words, a Mineral Resource is not an
inventory of all mineralisation drilled or sampled, regardless of cut-off grades, likely
mining dimensions, location or continuity. It is a realistic inventory of mineralisation,
which, under assumed and justifiable technical and economic conditions, might
become economically extractable.
Interpretation of the word ‘eventual’ in this context may vary depending on the
commodity or mineral involved. For example, for many coal, iron ore, bauxite and
other bulk minerals or commodities, it may be reasonable to envisage ‘eventual
economic extraction’ as covering time periods in excess of 50 years. However for the
majority of gold deposits, application of the concept would normally be restricted to
perhaps 20 to 30 years, and frequently to much shorter periods of time.
Certain reports (e.g.: inventory reports, exploration reports to government and other
similar reports not intended primarily for providing information for investment
purposes) may require full disclosure of all mineralisation, including some material
that does not have reasonable and realistic prospects for eventual economic
extraction. Such estimates of mineralisation would not qualify as Mineral Resources
or Mineral Reserves.
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Mineral Resource estimates are sometimes reported after adjustment by the cutting
of high grades. If any of the data are materially adjusted or modified for the purpose
of making the estimate, this must be clearly stated in the Public Report and the nature
of the adjustment or modification described.
Where considered appropriate by the Competent Person, Mineral Resource
estimates may include mineralisation below the selected cut-off grade to ensure that
the Mineral Resources comprise bodies of mineralisation of adequate size and
continuity to properly consider the most appropriate approach to mining including any
dilution resulting from the requirements of any minimum mining width. Documentation
of Mineral Resource estimates should clearly identify any such inclusions, and Public
Reports should include commentary on the matter if considered material.
5.4.2 Mineral Resource estimates are not precise calculations, being dependent on the
interpretation of limited information on the location, shape and continuity of the occurrence
and on the available sampling results. Reporting of tonnage and grade figures must reflect
the order of accuracy of the estimate by rounding off to appropriately significant figures and,
in the case of Inferred Mineral Resources, by qualification with terms such as ‘approximately’.
Rounding off must convey the uncertainties in estimation.
In order to emphasise the imprecise nature of a Mineral Resource or Mineral Reserve
estimate, it is recommended that the final results always be referred to as an estimate
not a calculation.
5.4.3 An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which tonnage,
grade and mineral content can be estimated with a low level of confidence. It is inferred
from geological evidence and assumed but not verified geological and/or grade
continuity. It is based on information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes that may be limited
or of uncertain quality and reliability.
An Inferred Mineral Resource has a lower level of confidence than that applying to an
Indicated Mineral Resource.
The category is intended to cover situations where a mineral concentration or
occurrence has been identified and limited measurements and sampling completed,
but where the data are insufficient to allow the geological and/or grade continuity to
be confidently interpreted. Due to the uncertainty which may be attached to some
Inferred Mineral Resources, it cannot be assumed that all or part of an Inferred
Mineral Resource will necessarily be upgraded to an Indicated or Measured Mineral
Resource as a result of continued exploration.
Confidence in the estimate is usually not sufficient to allow the appropriate application
of technical and economic parameters or to enable an evaluation of economic
viability. Caution should be exercised if this category is considered in economic
studies, and if included, full disclosure and the effect on the results of the economic
studies must be stated. A comparison between the two scenarios, the one with
inclusion and the one without inclusion, must be fully explained in the Public Report in
such a way as not to mislead the investors (see also Subclause 5.4.6).
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5.4.4 An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which tonnage,
densities, shape, physical characteristics, grade and mineral content can be estimated
with a reasonable level of confidence. It is based on exploration, sampling and testing
information gathered through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes. The locations are too widely or inappropriately
spaced to confirm geological and/or grade continuity but are spaced closely enough
for continuity to be assumed.
An Indicated Mineral Resource has a lower level of confidence than that applying to a
Measured Mineral Resource, but has a higher level of confidence than that applying to an
Inferred Mineral Resource.
An Indicated Mineral Resource requires that the nature, quality, amount and
distribution of data are such as to allow the Competent Person to confidently interpret
the geological framework and to assume geological continuity of mineralisation.
Confidence in the estimate is sufficient to allow the appropriate application of
technical and economic parameters and to enable an evaluation of economic viability.
5.4.5 A ‘Measured Mineral Resource’ is that part of a Mineral Resource for which tonnage,
densities, shape, physical characteristics, grade and mineral content can be estimated
with a high level of confidence. It is based on detailed and reliable exploration,
sampling and testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes. The locations are
spaced closely enough to confirm geological and grade continuity.
A Measured Mineral Resource requires that the nature, quality, amount and
distribution of data are such as to leave no reasonable doubt in the opinion of the
Competent Person, that the tonnage and grade of the mineralisation can be
estimated to within close limits and that any variation within these limits would not
significantly affect potential economic viability. This category requires a high level of
confidence in, and understanding of, the geology and the controls of the mineral
deposit. Confidence in the estimate is sufficient to allow the appropriate application
of technical and economic parameters and to enable an evaluation of economic
viability with a high level of confidence.
5.4.6 The choice of the appropriate category of Mineral Resource depends upon the quantity,
distribution and quality of data available and the level of confidence attached to the data. The
appropriate Mineral Resource category must be determined by a Competent Person.
Mineral Resource classification is a matter for skilled judgement and the Competent
Person must take into account those items in Appendix I which relate to confidence,
accuracy (i.e. lack of bias) and precision in Mineral Resource estimation.
In deciding between Measured Mineral Resources and Indicated Mineral Resources,
the Competent Person may find it useful to consider, in addition to the phrases in the
two definitions relating to geological and grade continuity in Subclauses 5.4.4 and
5.4.5, the phrase in the guideline to the definition for Measured Mineral Resources,
‘.... any variation within these limits would not significantly affect potential economic
viability’.
In deciding between Indicated Mineral Resources and Inferred Mineral Resources,
the Competent Person may wish to take into account, in addition to the phrases in the
two definitions in Subclauses 5.4.3 and 5.4.4 relating to geological and grade
continuity, the guideline to the definition for Indicated Mineral Resources: ‘Confidence
in the estimate is sufficient to allow the appropriate application of technical, economic
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and financial parameters and to enable an evaluation of economic viability’. This
contrasts with the guideline to the definition of Inferred Mineral Resources:
‘Confidence in the estimates is usually not sufficient to allow the appropriate
application of technical, economic and financial parameters or to enable an
evaluation of economic viability. Caution should be exercised if this category is
considered in economic studies, and if included, full disclosure and the effect on the
results of the economic studies must be stated. A comparison between the two
scenarios, the one with inclusion and the one without inclusion, must be fully
explained in the Public Report in such a way as not to mislead the investors.’
5.4.7 Mineral Resource estimates are not precise calculations, and tonnage and grade figures in
reports must be expressed so as to convey the order of accuracy of the estimates by
rounding off to appropriately significant figures.
Rounding off must convey the uncertainties in estimation.
In order to emphasise the imprecise nature of a Mineral Resource estimate, it is
recommended that the final results always be referred to as an estimate not a
calculation.
5.4.8 Public Reports of Mineral Resources must specify one or more of the categories of ‘Inferred’,
‘Indicated’ or ‘Measured’. Reports must not contain Mineral Resource figures combining two
or more of the categories unless figures for the individual categories are also provided. A
Mineral Resource must not be reported in terms of contained mineral content unless
corresponding tonnage and grade figures are also presented.
Appendix I provides, in a summary form, a list of the main criteria which should be
applied when preparing reports on Exploration Results, Mineral Resources and
Mineral Reserves. These criteria need not be discussed in a Public Report unless
they materially affect estimation or classification of the Mineral Resources and
Mineral Reserves.
It is not necessary, in a Public Report, to comment on each item in Appendix I, but it
is essential to discuss any matters which might materially affect the reader’s
understanding or interpretation of the results or estimates being reported. This is
particularly important where inadequate or uncertain data affect the reliability of, or
confidence in, a statement of Exploration Results or an estimate of Mineral
Resources and/or Mineral Reserves, for example poor sample recovery, poor
repeatability of assay or laboratory results, limited information on tonnage factors etc.
5.4.9. The words ‘ore’ and ‘reserves’ must not be used in stating Mineral Resource estimates as the
terms imply technical feasibility and economic viability and are only appropriate when all
relevant modifying factors have been considered. Reports and statements should continue to
refer to the appropriate category or categories of Mineral Resources until technical feasibility
and economic viability have been established. If re-evaluation indicates that any of the
Mineral Reserves is no longer viable, such Mineral Reserve must be reclassified.
It is not intended that re-classification from Mineral Reserves to Mineral Resources or
vice-versa should be applied as a result of changes expected to be of a short term or
temporary nature, or where company management has made a deliberate decision to
temporarily operate on a sub-economic basis. Examples of such situations might be
a commodity price drop expected to be of short duration, mine emergency of a nonpermanent
nature, transport strike etc.
NOTE: Code is in normal typeface, guidelines are indented italics
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