JORC Mineral Resources & Ore Reserves

[Sapphire Capital]

Note: Code is in normal typeface, guidelines are in indented italics, definitions are in bold.
THE 2004 AUSTRALASIAN CODE FOR REPORTING EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES (THE JORC CODE)
Australasian Code for
Prepared by:
The Joint Ore Reserves Committee of The Australasian Institute of
Mining and Metallurgy, Australian Institute of Geoscientists and
Minerals Council of Australia (JORC)
Effective December 2004
Mineral Resources and Ore Reserves
Reporting of Exploration Results,
~ The JORC Code ~
2004 Edition
Appended to this document, at pages 21-31, are extracts relevant to

the JORC Code from four Australasian Securities Exchange

Companies Updates: 03/08, 11/07, 03/07, 05/04.

These Updates, issued subsequent to publication of the Code, are

important guides in the clarification and interpretation of the Code

and should be read in conjunction with it.
Note: Code is in normal typeface, guidelines are in indented italics, definitions are in bold.
THE 2004 AUSTRALASIAN CODE FOR REPORTING EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES (THE JORC CODE)
FOREWORD
Resources and Mineral (Ore) Reserves, led on
those of the JORC Code.
Representatives of bodies from participating countries
(Australia, Canada, South Africa, USA and UK) reached
provisional agreement on standard definitions for reporting
in 1997. This was followed in 1998 by an agreement to
incorporate the CMMI definitions into the International
Framework Classification for Reserves and Resources – Solid
Fuels and Mineral Commodities, developed by the United
Nations Economic Commission for Europe (‘UN-ECE’).
As a result of the CRIRSCO/CMMI initiative, considerable
progress has been made towards widespread adoption
of consistent reporting standards throughout the world.
These are embodied in the similar codes, guidelines and
standards published and adopted by the relevant professional
bodies in Australia, Canada, South Africa, USA, UK,
Ireland and many countries in Europe. The definitions
in this edition of the JORC Code are either identical to, or
not materially different from, those international definitions.
1. The Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (the ‘JORC
Code’ or ‘the Code’) sets out minimum standards,
recommendations and guidelines for Public Reporting
in Australasia of Exploration Results, Mineral Resources
and Ore Reserves. The Joint Ore Reserves Committee
(‘JORC’) was established in 1971 and published several
reports containing recommendations on the classification
and Public Reporting of Ore Reserves prior to the release
of the first edition of the JORC Code in 1989.
Revised and updated editions of the Code were issued
in 1992, 1996 and 1999. This 2004 edition supersedes
all previous editions.
Concurrently with the evolution of the JORC Code, the
Combined Reserves International Reporting Standards
Committee (‘CRIRSCO’), initially a committee of the
Council of Mining and Metallurgical Institutions
(‘CMMI’), has, since 1994, been working to create a set
of standard international definitions for reporting Mineral
INTRODUCTION
2. In this edition of the JORC Code, important terms and
their definitions are highlighted in bold text. The guidelines
are placed after the respective Code clauses using
indented italics. They are intended to provide assistance
and guidance to readers. They do not form part of the
Code, but should be considered persuasive when
interpreting the Code. Indented italics are also used for
Appendix 1 – ’Generic Terms and Equivalents’, and Table
1 – ‘Check List of Assessment and Reporting Criteria’ to
make it clear that they are also part of the guidelines, and
that the latter is not mandatory for reporting purposes.
3. The Code has been adopted by The Australasian Institute
of Mining and Metallurgy (‘The AusIMM’) and the Australian
Institute of Geoscientists (‘AIG’) and is therefore binding on
members of those organisations. It is endorsed by the Minerals
Council of Australia, and the Securities Institute of Australia
as a contribution to good practice. The Code has also
been adopted by and included in the listing rules of the
Australian (‘ASX’) and New Zealand (‘NZX’) Stock Exchanges.
The ASX and NZX have, since 1989 and 1992
respectively, incorporated the Code into their listing
rules. Under these listing rules, a Public Report must
be prepared in accordance with the Code if it
includes a statement on Exploration Results, Mineral
Resources or Ore Reserves. The incorporation of the
Code imposes certain specific requirements on
mining or exploration companies reporting to the ASX
and NZX. The 2004 edition of the Code has included
much of the relevant material previously found only
in the listing rules concerning the reporting of
Exploration Results and the naming of the Competent
Person. Despite the inclusion of this material in the
Code it is strongly recommended that users of the
Code familiarise themselves with those listing rules
which relate to Public Reporting of Exploration
Results, Mineral Resources and Ore Reserves.
The JORC Code requires the Competent Person(s),
on whose work the Public Report of Exploration
Results, Mineral Resources or Ore Reserves is based,
to be named in the report. The report or attached
statement must say that the person consents to the
inclusion in the report of the matters based on their
information in the form and context in which it
appears, and must include the name of the person’s
firm or employer. Refer to Clause 8 of the Code.
SCOPE
4. The main principles governing the operation and
application of the JORC Code are transparency,
materiality and competence.
• Transparency requires that the reader of a Public Report
is provided with sufficient information, the presentation
of which is clear and unambiguous, to understand the
report and is not misled.
• Materiality requires that a Public Report contains all
the relevant 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 Exploration Results, Mineral Resources or Ore
Reserves being reported.
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THE 2004 AUSTRALASIAN CODE FOR REPORTING EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES (THE JORC CODE)
• Competence requires that the Public Report be based
on work that is the responsibility of suitably qualified
and experienced persons who are subject to an
enforceable professional code of ethics.
5. Reference in the Code to a Public Report or Public
Reporting is to a report or reporting on Exploration
Results, Mineral Resources or Ore Reserves, prepared
for the purpose of informing investors or potential
investors and their advisers. This includes a report or
reporting to satisfy regulatory requirements.
The Code is a required minimum standard for Public
Reporting. JORC also recommends its adoption as a
minimum standard for other reporting. Companies
are encouraged to provide information in their Public
Reports which is as comprehensive as possible.
Public Reports include but are not limited to:
company annual reports, quarterly reports and other
reports to Australian and New Zealand Stock
Exchanges, or as required by law. The Code applies
to other publicly released company information in
the form of postings on company web sites and
briefings for shareholders, stockbrokers and
investment analysts. The Code also applies to the
following reports if they have been prepared for the
purposes described in Clause 5: environmental
statements; Information Memoranda; Expert Reports,
and technical papers referring to Exploration Results,
Mineral Resources or Ore Reserves.
For companies issuing concise annual reports, or
other summary reports, inclusion of all material
information relating to Exploration Results, Mineral
Resources and Ore Reserves is recommended. In
cases where summary information is presented it
should be clearly stated that it is a summary, and a
reference attached giving the location of the Codecompliant
Public Reports or Public Reporting on
which the summary is based.
It is recognised that companies can be required to
issue reports into more than one regulatory jurisdiction,
with compliance standards that may differ from this
Code. It is recommended that such reports include a
statement alerting the reader to this situation. Where
members of The AusIMM and the AIG are required
to report in other jurisdictions, they are obliged to
comply with the requirements of those jurisdictions.
The term ‘regulatory requirements’ as used in Clause
5 is not intended to cover reports provided to State
and Federal Government agencies for statutory
purposes, where providing information to the investing
public is not the primary intent. If such reports
become available to the public, they would not
normally be regarded as Public Reports under the
JORC Code (see also guidelines to Clauses 19 and 37).
Reference in the Code to ‘documentation’ is to
internal company documents prepared as a basis for,
or to support, a Public Report.
It is recognised that situations may arise where
documentation prepared by Competent Persons
for internal company or similar non-public purposes
does not comply with the JORC Code. In such
situations, it is recommended that the documentation
includes a prominent statement to this effect. This
will make it less likely that non-complying
documentation will be used to compile Public
Reports, since Clause 8 requires Public Reports to
fairly reflect Exploration Results, Mineral Resource
and/or Ore Reserve estimates, and supporting
documentation, prepared by a Competent Person.
While every effort has been made within the Code
and Guidelines to cover most situations likely to be
encountered in Public Reporting, there may be
occasions when doubt exists as to the appropriate
form of disclosure. On such occasions, users of the
Code and those compiling reports to comply with
the Code should be guided by its intent, which is to
provide a minimum standard for Public Reporting,
and to ensure that such reporting contains all
information which investors and their professional
advisers would reasonably require, and reasonably
expect to find in the report, for the purpose of making
of a reasoned and balanced judgement regarding the
Exploration Results, Mineral Resources or Ore Reserves
being reported.
6. The Code is applicable to all solid minerals, including
diamonds, other gemstones, industrial minerals and coal,
for which Public Reporting of Exploration Results,
Mineral Resources and Ore Reserves is required by the
Australian and New Zealand Stock Exchanges.
The JORC Code is cited by the ‘Code and Guidelines
for Technical Assessment and/or Valuation of Mineral
and Petroleum Assets and Mineral and Petroleum
Securities for Independent Expert Reports’ (the
‘VALMIN Code’) as the applicable standard for the
public reporting of Exploration Results, Mineral
Resources and Ore Reserves. References to ‘technical
and economic studies’ and ‘feasibility studies’ in the
JORC Code are not intended as references to
Technical Assessments or Valuations as defined in
the VALMIN Code.
7. JORC recognises that further review of the Code and
Guidelines will be required from time to time.
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THE 2004 AUSTRALASIAN CODE FOR REPORTING EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES (THE JORC CODE)
COMPETENCE AND RESPONSIBILITY
and to the activity which he (or she) is undertaking
to qualify as a Competent Person as defined in the
2004 Edition of the ‘Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore
Reserves’. (Insert name of Competent Person)
consents to the inclusion in the report of the matters
based on his (or her) information in the form and
context in which it appears”.
9. Documentation detailing Exploration Results, Mineral
Resource and Ore Reserve estimates, on which a Public
Report on Exploration Results, Mineral Resources and
Ore Reserves is based, must be prepared by, or under
the direction of, and signed by, a Competent Person or
Persons. The documentation must provide a fair
representation of the Exploration Results, Mineral
Resources or Ore Reserves being reported.
10.A ‘Competent Person’ is a person who is a Member or
Fellow of The Australasian Institute of Mining and Metallurgy,
or of the Australian Institute of Geoscientists, or of a
‘Recognised Overseas Professional Organisation’ (‘ROPO’)
included in a list promulgated from time to time.
A ‘Competent Person’ must have a minimum of five years
experience which is 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 preparing a report on
Exploration Results, the relevant experience must be
in exploration. 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 Ore Reserves, the relevant experience
must be in the estimation, assessment, evaluation and
economic extraction of Ore Reserves.
The key qualifier in the definition of a Competent Person
is the word ‘relevant’. Determination of what constitutes
relevant experience can be a difficult area and common
sense has to be exercised. For example, in estimating
Mineral Resources for vein gold mineralisation, experience
in a high-nugget, vein-type mineralisation such as tin,
uranium etc. will probably be relevant whereas experience
in (say) massive base metal deposits may not be. As
a second example, to qualify as a Competent Person
in the estimation of Ore Reserves for alluvial gold
deposits, considerable (probably at least five years)
experience in the evaluation and economic extraction
of this type of mineralisation would be needed. This is
due to the characteristics of gold in alluvial systems,
the particle sizing of the host sediment, and the low
grades involved. Experience with placer deposits
containing minerals other than gold may not
necessarily provide appropriate relevant experience.
8. A Public Report concerning a company’s Exploration
Results, Mineral Resources or Ore Reserves is the
responsibility of the company acting through its Board
of Directors. Any such report must be based on, and
fairly reflect the information and supporting
documentation prepared by a Competent Person or
Persons. A company issuing a Public Report shall
disclose the name(s) of the Competent Person or Persons,
state whether the Competent Person is a full-time
employee of the company, and, if not, name the
Competent Person’s employer. The report shall be issued
with the written consent of the Competent Person or
Persons as to the form and context in which it appears.
Appropriate forms of compliance statements may be
as follows (delete bullet points which do not apply):
• If the required information is in the report:
“The information in this report that relates to
Exploration Results, Mineral Resources or Ore
Reserves is based on information compiled by (insert
name of Competent Person), who is a Member or
Fellow of The Australasian Institute of Mining and
Metallurgy or the Australian Institute of Geoscientists
or a ‘Recognised Overseas Professional Organisation’
(‘ROPO’) included in a list promulgated by the ASX
from time to time (select as appropriate and if a
ROPO insert name of ROPO)”: or
• If the required information is included in an
attached statement:
“The information in the report to which this statement
is attached that relates to Exploration Results, Mineral
Resources or Ore Reserves is based on information
compiled by (insert name of Competent Person), who
is a Member or Fellow of The Australasian Institute
of Mining and Metallurgy or the Australian Institute
of Geoscientists or a ‘Recognised Overseas
Professional Organisation’ (‘ROPO’) included in a
list promulgated by the ASX from time to time (select
as appropriate and if a ROPO insert name of ROPO)”.
• If the Competent Person is a full-time employee
of the company:
“(Insert name of Competent Person) is a full-time
employee of the company”.
• If the Competent Person is not a full-time employee
of the company:
“(Insert name of Competent Person) is employed by
(insert name of Competent Person’s employer)”.
• For all reports:
“(Insert name of Competent Person) has sufficient
experience which is relevant to the style of
mineralisation and type of deposit under consideration
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THE 2004 AUSTRALASIAN CODE FOR REPORTING EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES (THE JORC CODE)
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 (say) 20 years experience in
estimating Mineral Resources for a variety of
metalliferous hard-rock deposit types may not require
five years specific experience in (say) porphyry
copper deposits in order to act as a Competent
Person. Relevant experience in the other deposit
types could count towards the required experience
in relation to porphyry copper deposits.
In addition to experience in the style of
mineralisation, a Competent Person taking
responsibility for the compilation of Exploration
Results or Mineral Resource estimates should have
sufficient experience in the sampling and analytical
techniques relevant to the deposit under
consideration to be aware of problems which could
affect the reliability of data. Some appreciation of
extraction and processing techniques applicable to
that deposit type may also be important.
As a general guide, persons being called upon to act
as Competent Persons 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. If doubt
exists, the person should either seek opinions from
appropriately experienced colleagues or should
decline to act as a Competent Person.
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
estimate). Estimation of Ore Reserves is very commonly
a team effort involving several technical disciplines.
It is recommended that, where there is clear division
of responsibility within a team, each Competent
Person and his or her contribution should be identified,
and responsibility accepted for that particular
contribution. If only one Competent Person signs the
Mineral Resource or Ore Reserve documentation, that
person is responsible and accountable for the whole
of the documentation under the Code. It is important
in this situation that the Competent Person accepting
overall responsibility for a Mineral Resource or Ore
Reserve estimate and supporting documentation
prepared in whole or in part by others, is satisfied
that the work of the other contributors is acceptable.
Complaints made in respect of the professional work
of a Competent Person will be dealt with under the
disciplinary procedures of the professional
organisation to which the Competent Person belongs.
When an Australian or New Zealand Stock Exchange
listed company with overseas interests wishes to
report overseas Exploration Results, Mineral Resource
or Ore Reserve estimates prepared by a person who
is not a member of The AusIMM, the AIG or a ROPO,
it is necessary for the company to nominate a
Competent Person or Persons to take responsibility
for the Exploration Results, Mineral Resource or Ore
Reserve estimate. The Competent Person or Persons
undertaking this activity should appreciate that they
are accepting full responsibility for the estimate and
supporting documentation under Stock Exchange
listing rules and should not treat the procedure merely
as a ‘rubber-stamping’ exercise.
REPORTING TERMINOLOGY
11.Public Reports dealing with Exploration Results, Mineral
Resources or Ore Reserves must only use the terms set
out in Figure 1.
The term ‘Modifying Factors’ is defined to include
mining, metallurgical, economic, marketing, legal,
environmental, social and governmental considerations.
Figure 1 sets out the framework for classifying
tonnage and grade estimates to reflect different
levels of geological confidence and different degrees
of technical and economic evaluation. Mineral
Resources can be estimated mainly by a geologist
on the basis of geoscientific information with
some input from other disciplines. Ore Reserves,
which are a modified sub-set of the Indicated and
Measured Mineral Resources (shown within the
dashed outline in Figure 1), require consideration
of the Modifying Factors affecting extraction, and
should in most instances be estimated with input from
a range of disciplines.
Measured Mineral Resources may convert to either
Proved Ore Reserves or Probable Ore Reserves. The
Competent Person may convert Measured Mineral
Resources to Probable Ore Reserves because of
uncertainties associated with some or all of the
Modifying Factors which are taken into account in
the conversion from Mineral Resources to Ore
Reserves. This relationship is shown by the broken
arrow in Figure 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 the guidelines to Clause 31.
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[Sapphire Capital]

THE 2004 AUSTRALASIAN CODE FOR REPORTING EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES (THE JORC CODE)
Figure 1. General relationship between Exploration Results, Mineral Resources and Ore Reserves
REPORTING – GENERAL
14.Companies must review and publicly report on their
Mineral Resources and Ore Reserves at least annually.
15.Throughout the Code, if appropriate, ‘quality’ may be
substituted for ‘grade’ and ‘volume’ may be substituted
for ‘tonnage’. (Refer Appendix 1 – Table of Generic Terms
and Equivalents).
REPORTING OF EXPLORATION RESULTS
16.Exploration Results include data and information
generated by exploration programmes that may be of use
to investors. The Exploration Results may or may not be part
of a formal declaration of Mineral Resources or Ore Reserves.
The reporting of such information is common in the early
stages of exploration when the quantity of data available
is generally not sufficient to allow any reasonable
estimates of Mineral Resources.
If a company reports Exploration Results in relation to
mineralisation not classified as a Mineral Resource or
an Ore Reserve, then estimates of tonnages and average
grade must not be assigned to the mineralisation unless
the situation is covered by Clause 18, and then only in
strict accordance with the requirements of that clause.
Examples of Exploration Results include results of
outcrop sampling, assays of drill hole intercepts,
geochemical results and geophysical survey results.
17.Public Reports of Exploration Results must contain
sufficient information to allow a considered and balanced
judgement of their significance. Reports must include
relevant information such as exploration context, type
and method of sampling, sampling intervals and
methods, relevant sample locations, distribution,
dimensions and relative location of all relevant assay
data, data aggregation methods, land tenure status plus
information on any of the other criteria listed in Table 1
that are material to an assessment.
Public Reports of Exploration Results must not be
presented so as to unreasonably imply that potentially
economic mineralisation has been discovered. If true
widths of mineralisation are not reported, an
appropriate qualification must be included in the
Public Report.
Where assay and analytical results are reported, they must
be reported using one of the following methods, selected
as the most appropriate by the Competent Person:
• either by listing all results, along with sample intervals
(or size, in the case of bulk samples), or
• by reporting weighted average grades of mineralised
zones, indicating clearly how the grades were calculated.
12.Public Reports concerning a company’s Exploration
Results, Mineral Resources or Ore Reserves should include
a description of the style and nature of the mineralisation.
13.A company must disclose any relevant information
concerning a mineral deposit that could materially
influence the economic value of that deposit to the
company. A company must promptly report any material
changes in its Mineral Resources or Ore Reserves.
Exploration Results
Mineral Resources Ore Reserves
Increasing level
of geological
knowledge and
confidence
Inferred
Probable
Proved
Consideration of mining, metallurgical, economic, marketing,
legal, environmental, social and governmental factors
(the “modifying factors”)
Indicated
Measured
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THE 2004 AUSTRALASIAN CODE FOR REPORTING EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES (THE JORC CODE)
Reporting of selected information such as isolated assays,
isolated drill holes, assays of panned concentrates or
supergene enriched soils or surface samples, without
placing them in perspective is unacceptable.
Table 1 is a check list and guideline to which those
preparing reports on Exploration Results, Mineral
Resources and Ore Reserves should refer. The check
list is not prescriptive and, as always, relevance and
materiality are overriding principles which determine
what information should be publicly reported.
18.It is recognised that it is common practice for a company
to comment on and discuss its exploration in terms of
target size and type. Any such information relating to
exploration targets must be expressed so that it cannot
be misrepresented or misconstrued as an estimate of
Mineral Resources or Ore Reserves. The terms Resource(s)
or Reserve(s) must not be used in this context. Any
statement referring to potential quantity and grade of
the target must be expressed as ranges and must include
(1) a detailed explanation of the basis for the statement,
and (2) a proximate statement that the potential quantity
and grade is conceptual in nature, that there has been
insufficient exploration to define a Mineral Resource and
that it is uncertain if further exploration will result in the
determination of a Mineral Resource.
REPORTING OF MINERAL RESOURCES
19. A ‘Mineral Resource’ is a concentration or occurrence
of material of intrinsic economic interest in or on the
Earth’s crust in such form, quality and quantity that
there are reasonable prospects for eventual economic
extraction. The location, quantity, grade, geological
characteristics and continuity of a Mineral Resource
are known, estimated or interpreted from specific
geological evidence and knowledge. Mineral Resources
are sub-divided, in order of increasing geological
confidence, into Inferred, Indicated and Measured
categories.
Portions of a deposit that do not have reasonable
prospects for eventual economic extraction must not
be included in a Mineral Resource. If the judgement as
to ‘eventual economic extraction’ relies on untested
practices or assumptions, this is a material matter which
must be disclosed in a public report.
The term ‘Mineral Resource’ covers mineralisation,
including dumps and tailings, which has been
identified and estimated through exploration and
sampling and within which Ore Reserves may be
defined by the consideration and application of the
Modifying Factors.
The term ‘reasonable prospects for eventual
economic extraction’ implies a judgement (albeit
preliminary) by the Competent Person in respect of
the technical and 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 grade, likely mining dimensions, location
or continuity. It is a realistic inventory of
mineralisation which, under assumed and justifiable
technical and economic conditions, might, in whole
or in part, become economically extractable.
Where considered appropriate by the Competent
Person, Mineral Resource estimates may include
material 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. Documentation of Mineral Resource
estimates should clearly identify any diluting material
included, and Public Reports should include
commentary on the matter if considered material.
Any material assumptions made in determining the
‘reasonable prospects for eventual economic
extraction’ should be clearly stated in the Public Report.
Interpretation of the word ‘eventual’ in this context
may vary depending on the commodity or mineral
involved. For example, for some 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 10 to 15 years, and frequently
to much shorter periods of time.
Any adjustment made to the data for the purpose of
making the Mineral Resource estimate, for example
by cutting or factoring grades, should be clearly stated
and described in the Public Report.
Certain reports (eg: inventory coal 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 prospects for eventual economic
extraction. Such estimates of mineralisation would
not qualify as Mineral Resources or Ore Reserves in
terms of the JORC Code (refer also to the guidelines
to Clauses 5 and 37).
20. 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
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THE 2004 AUSTRALASIAN CODE FOR REPORTING EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES (THE JORC CODE)
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 which 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 Inferred 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. Commonly,
it would be reasonable to expect that the majority of
Inferred Mineral Resources would upgrade to
Indicated Mineral Resources with continued
exploration. However, due to the uncertainty of
Inferred Mineral Resources, it should not be assumed
that such upgrading will always occur.
Confidence in the estimate of Inferred Mineral
Resources is usually not sufficient to allow the results
of the application of technical and economic
parameters to be used for detailed planning. For this
reason, there is no direct link from an Inferred Resource
to any category of Ore Reserves (see Figure 1).
Caution should be exercised if this category is
considered in technical and economic studies.
21.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.
Mineralisation may be classified as an Indicated
Mineral Resource when the nature, quality, amount
and distribution of data are such as to allow confident
interpretation of the geological framework and to
assume continuity of mineralisation.
Confidence in the estimate is sufficient to allow the
application of technical and economic parameters,
and to enable an evaluation of economic viability.
22.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.
Mineralisation may be classified as a Measured
Mineral Resource when the nature, quality, amount
and distribution of data are such as to leave no
reasonable doubt, in the opinion of the Competent
Person determining the Mineral Resource, that the
tonnage and grade of the mineralisation can be
estimated to within close limits, and that any variation
from the estimate would be unlikely to 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.
Confidence in the estimate is sufficient to allow the
application of technical and economic parameters
and to enable an evaluation of economic viability
that has a greater degree of certainty than an
evaluation based on an Indicated Mineral Resource.
23.The choice of the appropriate category of Mineral Resource
depends upon the quantity, distribution and quality of data
available and the level of confidence that attaches to
those data. The appropriate Mineral Resource category
must be determined by a Competent Person or Persons.
Mineral Resource classification is a matter for skilled
judgement and Competent Persons should take into
account those items in Table 1 which relate to
confidence in Mineral Resource estimation.
In deciding between Measured Mineral Resources
and Indicated Mineral Resources, Competent Persons
may find it useful to consider, in addition to the
phrases in the two definitions relating to geological
and grade continuity in Clauses 21 and 22, the phrase
in the guideline to the definition for Measured
Mineral Resources: ‘.... any variation from the
estimate would be unlikely to significantly affect
potential economic viability’.
In deciding between Indicated Mineral Resources
and Inferred Mineral Resources, Competent Persons
may wish to take into account, in addition to the
phrases in the two definitions in Clauses 20 and 21
relating to geological and grade continuity, the
guideline to the definition for Indicated Mineral
Resources: ‘Confidence in the estimate is sufficient
to allow the application of technical and economic
parameters and to enable an evaluation of economic
viability’, which contrasts with the guideline to the
definition for Inferred Mineral Resources:
‘Confidence in the estimate of Inferred Mineral
Resources is usually not sufficient to allow the results
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of the application of technical and economic
parameters to be used for detailed planning.’ and
‘Caution should be exercised if this category is
considered in technical and economic studies’.
The Competent Person should take into consideration
issues of the style of mineralisation and cut-off grade
when assessing geological and grade continuity.
Cut-off grades chosen for the estimation should be
realistic in relation to the style of mineralisation.
24.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 should reflect the relative
uncertainty 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’.
In most situations, rounding to the second significant
figure should be sufficient. For example 10,863,000
tonnes at 8.23 per cent should be stated as 11 million
tonnes at 8.2 per cent. There will be occasions,
however, where rounding to the first significant figure
may be necessary in order to convey properly the
uncertainties in estimation. This would usually be
the case with Inferred Mineral Resources.
To emphasise the imprecise nature of a Mineral
Resource estimate, the final result should always be
referred to as an estimate not a calculation.
Competent Persons are encouraged, where
appropriate, to discuss the relative accuracy and/or
confidence of the Mineral Resource estimates. The
statement should specify whether it relates to global
or local estimates, and, if local, state the relevant
tonnage or volume. Where a statement of the relative
accuracy and/or confidence is not possible, a
qualitative discussion of the uncertainties should be
provided (refer to Table 1).
25.Public Reports of Mineral Resources must specify one
or more of the categories of ‘Inferred’, ‘Indicated’ and
‘Measured’. Categories must not be reported in a
combined form unless details for the individual
categories are also provided. Mineral Resources must
not be reported in terms of contained metal or mineral
content unless corresponding tonnages and grades are
also presented. Mineral Resources must not be aggregated
with Ore Reserves.
Public Reporting of tonnages and grades outside the
categories covered by the Code is not permitted unless
the situation is covered by Clause 18, and then only in
strict accordance with the requirements of that clause.
Estimates of tonnage and grade outside of the
categories covered by the Code may be useful for a
company in its internal calculations and evaluation
processes, but their inclusion in Public Reports could
cause confusion.
26.Table 1 provides, in a summary form, a list of the main
criteria which should be considered when preparing
reports on Exploration Results, Mineral Resources and
Ore Reserves. These criteria need not be discussed in a
Public Report unless they materially affect estimation
or classification of the Mineral Resources.
It is not necessary, when publicly reporting, to
comment on each item in Table 1, 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 or Ore Reserves; for example, poor sample
recovery, poor repeatability of assay or laboratory
results, limited information on bulk densities etc.
If there is doubt about what should be reported, it is
better to err on the side of providing too much
information rather than too little.
Uncertainties in any of the criteria listed in Table 1
that could lead to under- or over-statement of
resources should be disclosed.
Mineral Resource estimates are sometimes reported
after adjustment from reconciliation with production
data. Such adjustments should be clearly stated in a
Public Report of Mineral Resources and the nature
of the adjustment or modification described.
27.The words ‘ore’ and ‘reserves’ must not be used in
describing 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 reevaluation
indicates that the Ore Reserves are no longer
viable, the Ore Reserves must be reclassified as Mineral
Resources or removed from Mineral Resource/Ore
Reserve statements.
It is not intended that re-classification from Ore
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
operate on a non-economic basis. Examples of such
situations might be commodity price fluctuations
expected to be of short duration, mine emergency of
a non-permanent nature, transport strike etc.
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REPORTING OF ORE RESERVES
28.An ‘Ore Reserve’ is the economically mineable part of a
Measured and/or Indicated Mineral Resource. It
includes diluting materials and allowances for losses,
which may occur when the material is mined. Appropriate
assessments and studies have been carried out, and
include consideration of and modification by realistically
assumed mining, metallurgical, economic, marketing,
legal, environmental, social and governmental factors.
These assessments demonstrate at the time of reporting
that extraction could reasonably be justified. Ore Reserves
are sub-divided in order of increasing confidence into
Probable Ore Reserves and Proved Ore Reserves.
In reporting Ore Reserves, information on estimated
mineral processing recovery factors is very important,
and should always be included in Public Reports.
Ore Reserves are those portions of Mineral Resources
which, after the application of all mining factors,
result in an estimated tonnage and grade which, in
the opinion of the Competent Person making the
estimates, can be the basis of a viable project, after
taking account of all relevant Modifying Factors.
Ore Reserves are reported as inclusive of
marginally economic material and diluting material
delivered for treatment or dispatched from the mine
without treatment.
The term ‘economically mineable’ implies that
extraction of the Ore Reserve has been demonstrated
to be viable under reasonable financial assumptions.
What constitutes the term ‘realistically assumed’ will
vary with the type of deposit, the level of study that
has been carried out and the financial criteria of the
individual company. For this reason, there can be no
fixed definition for the term ‘economically mineable’.
In order to achieve the required level of confidence
in the Modifying Factors, appropriate studies will
have been carried out prior to determination of the
Ore Reserves. The studies will have determined a
mine plan that is technically achievable and
economically viable and from which the Ore Reserves
can be derived. It may not be necessary for these
studies to be at the level of a final feasibility study.
The term ‘Ore Reserve’ need not necessarily signify
that extraction facilities are in place or operative, or
that all necessary approvals or sales contracts have
been received. It does signify that there are
reasonable expectations of such approvals or
contracts. The Competent Person should consider the
materiality of any unresolved matter that is dependent
on a third party on which extraction is contingent. If
there is doubt about what should be reported, it is
better to err on the side of providing too much
information rather than too little.
Any adjustment made to the data for the purpose of
making the Ore Reserve estimate, for example by
cutting or factoring grades, should be clearly stated
and described in the Public Report.
Where companies prefer to use the term ‘Mineral
Reserves’ in their Public Reports, e.g. for reporting
industrial minerals or for reporting outside
Australasia, they should state clearly that this is being
used with the same meaning as ‘Ore Reserves’,
defined in this Code. If preferred by the reporting
company, ‘Ore Reserve’ and ‘Mineral Resource’
estimates for coal may be reported as ‘Coal Reserve’
and ‘Coal Resource’ estimates.
JORC prefers the term ‘Ore Reserve’ because it assists
in maintaining a clear distinction between a ‘Mineral
Resource’ and an ‘Ore Reserve’.
29.A ‘Probable Ore Reserve’ is the economically mineable
part of an Indicated, and in some circumstances, a Measured
Mineral Resource. It includes diluting materials and
allowances for losses which may occur when the material
is mined. Appropriate assessments and studies have been
carried out, and include consideration of and modification
by realistically assumed mining, metallurgical, economic,
marketing, legal, environmental, social and governmental
factors These assessments demonstrate at the time of
reporting that extraction could reasonably be justified.
A Probable Ore Reserve has a lower level of confidence
than a Proved Ore Reserve but is of sufficient quality to
serve as the basis for a decision on the development of
the deposit.
30.A ‘Proved Ore Reserve’ is the economically mineable
part of a Measured Mineral Resource. It includes
diluting materials and allowances for losses which may
occur when the material is mined. Appropriate
assessments and studies have been carried out, and
include consideration of and modification by
realistically assumed mining, metallurgical, economic,
marketing, legal, environmental, social and governmental
factors. These assessments demonstrate at the time of
reporting that extraction could reasonably be justified.
A Proved Ore Reserve represents the highest
confidence category of reserve estimate. The style
of mineralisation or other factors could mean
that Proved Ore Reserves are not achievable in
some deposits.
31.The choice of the appropriate category of Ore Reserve
is determined primarily by the relevant level of
confidence in the Mineral Resource and after considering
any uncertainties in the Modifying Factors. Allocation
of the appropriate category must be made by a
Competent Person or Persons.
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THE 2004 AUSTRALASIAN CODE FOR REPORTING EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES (THE JORC CODE)
The Code provides for a direct two-way relationship
between Indicated Mineral Resources and Probable
Ore Reserves and between Measured Mineral
Resources and Proved Ore Reserves. In other words,
the level of geological confidence for Probable Ore
Reserves is similar to that required for the
determination of Indicated Mineral Resources, and
the level of geological confidence for Proved Ore
Reserves is similar to that required for the
determination of Measured Mineral Resources.
The Code also provides for a two-way relationship
between Measured Mineral Resources and Probable
Ore Reserves. This is to cover a situation where
uncertainties associated with any of the Modifying
Factors considered when converting Mineral
Resources to Ore Reserves may result in there being
a lower degree of confidence in the Ore Reserves
than in the corresponding Mineral Resources. Such
a conversion would not imply a reduction in the level
of geological knowledge or confidence.
A Probable Ore Reserve derived from a Measured
Mineral Resource may be converted to a Proved Ore
Reserve if the uncertainties in the Modifying Factors
are removed. No amount of confidence in the
Modifying Factors for conversion of a Mineral
Resource to an Ore Reserve can override the upper
level of confidence that exists in the Mineral
Resource. Under no circumstances can an Indicated
Mineral Resource be converted directly to a Proved
Ore Reserve (see Figure 1).
Application of the category of Proved Ore Reserve
implies the highest degree of confidence in the
estimate, with consequent expectations in the minds
of the readers of the report. These expectations should
be borne in mind when categorising a Mineral
Resource as Measured.
Refer also to the guidelines in Clause 23 regarding
classification of Mineral Resources.
32.Ore Reserve estimates are not precise calculations.
Reporting of tonnage and grade figures should reflect the
relative uncertainty of the estimate by rounding off to
appropriately significant figures. Refer also to Clause 24.
To emphasise the imprecise nature of an Ore Reserve,
the final result should always be referred to as an
estimate not a calculation.
Competent Persons are encouraged, where
appropriate, to discuss the relative accuracy and/or
confidence of the Ore Reserve estimates. The
statement should specify whether it relates to global
or local estimates, and, if local, state the relevant
tonnage or volume. Where a statement of the relative
accuracy and/or confidence is not possible, a
qualitative discussion of the uncertainties should be
provided (refer to Table 1).
33.Public Reports of Ore Reserves must specify one or other
or both of the categories of ‘Proved’ and ‘Probable’.
Reports must not contain combined Proved and Probable
Ore Reserve figures unless the relevant figures for each
of the categories are also provided. Reports must not
present metal or mineral content figures unless
corresponding tonnage and grade figures are also given.
Public Reporting of tonnage and grade outside the
categories covered by the Code is not permitted unless
the situation is covered by Clause 18, and then only in
strict accordance with the requirements of that clause.
Estimates of tonnage and grade outside of the
categories covered by the Code may be useful for a
company in its internal calculations and evaluation
processes, but their inclusion in Public Reports could
cause confusion.
Ore Reserves may incorporate material (dilution)
which is not part of the original Mineral Resource. It
is essential that this fundamental difference between
Mineral Resources and Ore Reserves is borne in mind
and caution exercised if attempting to draw
conclusions from a comparison of the two.
When revised Ore Reserve and Mineral Resource
statements are publicly reported they should be
accompanied by reconciliation with previous
statements. A detailed account of differences
between the figures is not essential, but sufficient
comment should be made to enable significant
changes to be understood by the reader.
34.In situations where figures for both Mineral Resources
and Ore Reserves are reported, a statement must be
included in the report which clearly indicates whether
the Mineral Resources are inclusive of, or additional to
the Ore Reserves.
Ore Reserve estimates must not be aggregated with Mineral
Resource estimates to report a single combined figure.
In some situations there are reasons for reporting
Mineral Resources inclusive of Ore Reserves and in
other situations for reporting Mineral Resources
additional to Ore Reserves. It must be made clear
which form of reporting has been adopted.
Appropriate forms of clarifying statements may be:
‘The Measured and Indicated Mineral Resources are
inclusive of those Mineral Resources modified to
produce the Ore Reserves.’ or ‘The Measured and
Indicated Mineral Resources are additional to the
Ore Reserves.’
In the former case, if any Measured and Indicated
Mineral Resources have not been modified to
produce Ore Reserves for economic or other reasons,
the relevant details of these unmodified Mineral
Resources should be included in the report. This is
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to assist the reader of the report in making a
judgement of the likelihood of the unmodified
Measured and Indicated Mineral Resources
eventually being converted to Ore Reserves.
Inferred Mineral Resources are by definition always
additional to Ore Reserves.
For reasons stated in the guidelines to Clause 33 and
in this paragraph, the reported Ore Reserve figures
must not be aggregated with the reported Mineral
Resource figures. The resulting total is misleading and
is capable of being misunderstood or of being misused
to give a false impression of a company’s prospects.
35.Table 1 provides, in a summary form, a list of the criteria
which should be considered when preparing reports on
Exploration Results, Mineral Resources and Ore Reserves.
These criteria need not be discussed in a Public Report
unless they materially affect estimation or classification
of the Ore Reserves. Changes in economic or political
factors alone may be the basis for significant changes in
Ore Reserves and should be reported accordingly.
Ore Reserve estimates are sometimes reported after
adjustment from reconciliation with production data.
Such adjustments should be clearly stated in a Public
Report of Ore Reserves and the nature of the
adjustment or modification described.
REPORTING OF MINERALISED FILL, REMNANTS, PILLARS, LOW
GRADE MINERALISATION, STOCKPILES, DUMPS AND TAILINGS
36.The Code applies to the reporting of all potentially
economic mineralised material. This can include
mineralised fill, remnants, pillars, low grade
mineralisation, stockpiles, dumps and tailings (remnant
materials) where there are reasonable prospects for
eventual economic extraction in the case of Mineral
Resources, and where extraction is reasonably justifiable
in the case of Ore Reserves. Unless otherwise stated, all
other clauses of the Code (including Figure 1) apply.
Any mineralised material as described in this clause
can be considered to be similar to in situ
mineralisation for the purposes of reporting Mineral
Resources and Ore Reserves. Judgements about the
mineability of such mineralised material should be
made by professionals with relevant experience.
If there are no reasonable prospects for the eventual
economic extraction of all or part of the mineralised
material as described in this clause, then this material
cannot be classified as either Mineral Resources or
Ore Reserves. If some portion of the mineralised
material is currently sub-economic, but there is a
reasonable expectation that it will become
economic, then this material may be classified as a
Mineral Resource. If technical and economic studies
have demonstrated that economic extraction could
reasonably be justified under realistically assumed
conditions, then the material may be classified as an
Ore Reserve.
The above guidelines apply equally to low grade in
situ mineralisation, sometimes referred to as
‘mineralised waste’ or ‘marginal grade material’, and
often intended for stockpiling and treatment towards
the end of mine life. For clarity of understanding, it
is recommended that tonnage and grade estimates
of such material be itemised separately in Public
Reports, although they may be aggregated with total
Mineral Resource and Ore Reserve figures.
Stockpiles are defined to include both surface and
underground stockpiles, including broken ore in
stopes, and can include ore currently in the ore
storage system. Mineralised material in the course
of being processed (including leaching), if reported,
should be reported separately.
REPORTING OF COAL RESOURCES AND RESERVES
37.Clauses 37 to 39 of the Code address matters that relate
specifically to the Public Reporting of Coal Resources
and Reserves. Unless otherwise stated, Clauses 1 to 36
of this Code (including Figure 1) apply. Table 1, as part
of the guidelines, should be considered persuasive when
reporting on Coal Resources and Reserves.
For purposes of Public Reporting, the requirements
for coal are generally similar to those for other
commodities with the replacement of terms such as
‘mineral’ by ‘coal’ and ‘grade’ by ‘quality’.
For guidance on the estimation of Coal Resources
and Reserves and on statutory reporting not primarily
intended for providing information to the investing
public, readers are referred to the 2003 edition of
the ‘Australian Guidelines for Estimating and
Reporting of Inventory Coal, Coal Resources and
Coal Reserves’. These guidelines do not override
the provisions and intentions of the JORC Code for
Public Reporting.
Because of its impact on planning and land use,
governments may require estimates of inventory coal
that are not constrained by short to medium term
economic considerations. The JORC Code does not
cover such estimates. Refer also to the guidelines to
Clauses 5 and 19.
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38.The terms ‘Mineral Resource(s)’ and ‘Ore Reserve(s)’,
and the subdivisions of these as defined above, apply
also to coal reporting, but if preferred by the reporting
company, the terms ‘Coal Resource(s)’ and ‘Coal
Reserve(s)’ and the appropriate subdivisions may be
substituted.
In order to demonstrate that a resource has reasonable
prospects for economic extraction, some appreciation
of the likely stone size distribution and price is
necessary, however preliminary. To determine an
Inferred Resource in simple, single-facies or single-phase
deposits, such information may be obtainable by
representative large diameter drilling. More often, some
form of bulk sampling, such as pitting and trenching,
would be employed to provide larger sample parcels.
In order to progress to an Indicated Resource, and
from there to a Probable Reserve, it is likely that much
more extensive bulk sampling would be needed to
fully determine the stone size distribution and value.
Commonly such bulk samples would be obtained
by underground development designed to obtain
sufficient diamonds to enable a confident estimate
of price.
In complex deposits, it may be very difficult to ensure
that the bulk samples taken are truly representative
of the whole deposit. The lack of direct bulk sampling,
and the uncertainty in demonstrating spatial continuity
of size and price relationships should be persuasive
in determining the appropriate resource category.
42.Where diamond Mineral Resource or Ore Reserve grades
(carats per tonne) are based on correlations between
the frequency of occurrence of micro-diamonds and of
commercial size stones, this must be stated, the reliability
of the procedure must be explained and the cut-off sieve
size for micro-diamonds reported.
43.For Public Reports dealing with diamond or other
gemstone mineralisation, it is a requirement that any reported
valuation of a parcel of diamonds or gemstones be
accompanied by a statement verifying the independence
of the valuation. The valuation must be based on a report
from a demonstrably reputable and qualified expert.
If a valuation of a parcel of diamonds is reported, the
weight in carats and the lower cut-off size of the
contained diamonds must be stated and the value of
the diamonds must be given in US dollars per carat.
Where the valuation is used in the estimation of diamond
Mineral Resources or Ore Reserves, the valuation must
be based on a parcel representative of the size, shape
39.‘Marketable Coal Reserves’, representing beneficiated
or otherwise enhanced coal product where
modifications due to mining, dilution and processing
have been considered, may be publicly reported in
conjunction with, but not instead of, reports of Ore (Coal)
Reserves. The basis of the predicted yield to achieve
Marketable Coal Reserves should be stated.
REPORTING OF DIAMOND EXPLORATION RESULTS,
MINERAL RESOURCES AND ORE RESERVES
40.Clauses 40 to 43 of the Code address matters that relate
specifically to the Public Reporting of Exploration Results,
Mineral Resources and Ore Reserves for diamonds and
other gemstones. Unless otherwise stated, Clauses 1 to
36 of this Code (including Figure 1) apply. Table 1, as
part of the guidelines, should be considered persuasive
when reporting Exploration Results, Mineral Resources
and Ore Reserves for diamonds and other gemstones.
For the purposes of Public Reporting, the
requirements for diamonds and other gemstones are
generally similar to those for other commodities with
the replacement of terms such as ‘mineral’ by
‘diamond’ and ‘grade’ by ‘grade and average
diamond value’. The term ‘quality’ should not be
substituted for ‘grade,’ since in diamond deposits
these have distinctly separate meanings. Other
industry guidelines on the estimation and reporting
of diamond resources and reserves may be useful
but will not under any circumstances override the
provisions and intentions of the JORC Code.
A number of characteristics of diamond deposits are
different from those of, for example, typical
metalliferous and coal deposits and therefore require
special consideration. These include the generally
low mineral content and variability of primary and
placer deposits, the particulate nature of diamonds,
the specialised requirement for diamond valuation
and the inherent difficulties and uncertainties in the
estimation of diamond resources and reserves.
41. Reports of diamonds recovered from sampling programs
must provide material information relating to the basis
on which the sample is taken, the method of recovery
and the recovery of the diamonds. The weight of
diamonds recovered may only be omitted from the report
when the diamonds are considered to be too small to
be of commercial significance. This lower cut-off size
should be stated.
The stone size distribution and price of diamonds
and other gemstones are critical components of the
resource and reserve estimates. At an early exploration
stage, sampling and delineation drilling will not
usually provide this information, which relies on large
diameter drilling and, in particular, bulk sampling.
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THE 2004 AUSTRALASIAN CODE FOR REPORTING EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES (THE JORC CODE)
and colour distributions of the diamond population in
the deposit.
Diamond valuations should not be reported for samples
of diamonds processed using total liberation methods.
Table 1 provides in summary form, a list of the main
criteria which should be considered when preparing
reports on Exploration Results, Mineral Resources
and Ore Reserves for diamonds and other gemstones.
TABLE 1
CHECK LIST OF ASSESSMENT AND REPORTING CRITERIA
REPORTING OF INDUSTRIAL MINERALS EXPLORATION
RESULTS, MINERAL RESOURCES AND ORE RESERVES
44.Industrial minerals are covered by the JORC Code if they
meet the criteria set out in Clauses 5 and 6 of the Code.
For the purpose of the JORC Code, industrial minerals
can be considered to cover commodities such as kaolin,
phosphate, limestone, talc etc.
When reporting information and estimates for
industrial minerals, the key principles and purpose
of the JORC Code apply and should be borne in
mind. Assays may not always be relevant, and other
quality criteria may be more applicable. If criteria such
as deleterious minerals or physical properties are of
more relevance than the composition of the bulk
mineral itself, then they should be reported accordingly.
The factors underpinning the estimation of Mineral
Resources and Ore Reserves for industrial minerals
are the same as those for other deposit types covered
by the JORC Code. It may be necessary, prior to the
reporting of a Mineral Resource or Ore Reserve, to
take particular account of certain key characteristics
or qualities such as likely product specifications,
proximity to markets and general product
marketability.
For some industrial minerals, it is common practice
to report the saleable product rather than the ‘asmined’
product, which is traditionally regarded as
the Ore Reserve. JORC’s preference is that, if the
saleable product is reported, it should be in
conjunction with, not instead of, reporting of the
Ore Reserve. However, it is recognised that
commercial sensitivities may not always permit this
preferred style of reporting. It is important that, in
all situations where the saleable product is reported,
a clarifying statement is included to ensure that the
reader is fully informed as to what is being reported.
Some industrial mineral deposits may be capable of
yielding products suitable for more than one
application and/or specification. If considered
material by the reporting company, such multiple
products should be quantified either separately or
as a percentage of the bulk deposit.
Table 1 is a check list and guideline which those preparing reports on Exploration Results, Mineral Resources and Ore
Reserves should use as a reference. The check list is not prescriptive and, as always, relevance and materiality are overriding
principles that determine what information should be publicly reported. It is, however, important to report any matters
that might materially affect a 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 or Ore Reserves.
The order and grouping of criteria in Table 1 reflects the normal systematic approach to exploration and evaluation.
Criteria in the first group ‘Sampling Techniques and Data’ apply to all succeeding groups. In the remainder of the table,
criteria listed in preceding groups would often apply to succeeding groups and should be considered when estimating
and reporting.
Criteria Explanation
Sampling Techniques and Data
(criteria in this group apply to all succeeding groups)
Sampling techniques. • Nature and quality of sampling (eg. cut channels, random chips etc.) and measures
taken to ensure sample representivity.
Drilling techniques. • Drill type (eg. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka
etc.) and details (eg. core diameter, triple or standard tube, depth of diamond tails, facesampling
bit or other type, whether core is oriented and if so, by what method, etc.).
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THE 2004 AUSTRALASIAN CODE FOR REPORTING EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES (THE JORC CODE)
Criteria Explanation
Sampling Techniques and Data
(criteria in this group apply to all succeeding groups)
Drill sample recovery. • Whether core and chip sample recoveries have been properly recorded and results assessed.
• Measures taken to maximise sample recovery and ensure representative nature of the samples.
• Whether a relationship exists between sample recovery and grade and whether sample
bias may have occurred due to preferential loss/gain of fine/coarse material.
Logging. • Whether core and chip samples have been logged to a level of detail to support
appropriate Mineral Resource estimation, mining studies and metallurgical studies.
• Whether logging is qualitative or quantitative in nature. Core (or costean, channel etc.)
photography.
Sub-sampling techniques • If core, whether cut or sawn and whether quarter, half or all core taken.
and sample preparation. • If non-core, whether riffled, tube sampled, rotary split etc. and whether sampled wet or dry.
• For all sample types, the nature, quality and appropriateness of the sample preparation
technique.
• Quality control procedures adopted for all sub-sampling stages to maximise representivity
of samples.
• Measures taken to ensure that the sampling is representative of the in situ material collected.
• Whether sample sizes are appropriate to the grainsize of the material being sampled.
Quality of assay data • The nature, quality and appropriateness of the assaying and laboratory procedures used
and laboratory tests. and whether the technique is considered partial or total.
• Nature of quality control procedures adopted (eg. standards, blanks, duplicates, external
laboratory checks) and whether acceptable levels of accuracy (ie. lack of bias) and
precision have been established.
Verification of sampling • The verification of significant intersections by either independent or alternative
and assaying. company personnel.
• The use of twinned holes.
Location of data points. • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys),
trenches, mine workings and other locations used in Mineral Resource estimation.
• Quality and adequacy of topographic control.
Data spacing and • Data spacing for reporting of Exploration Results.
distribution. • Whether the data spacing and distribution is sufficient to establish the degree of
geological and grade continuity appropriate for the Mineral Resource and Ore Reserve
estimation procedure(s) and classifications applied.
• Whether sample compositing has been applied.
Orientation of data in • Whether the orientation of sampling achieves unbiased sampling of possible
relation to geological structures and the extent to which this is known, considering the deposit type.
structure. • If the relationship between the drilling orientation and the orientation of key mineralised
structures is considered to have introduced a sampling bias, this should be assessed and
reported if material.
Audits or reviews. • The results of any audits or reviews of sampling techniques and data.
Reporting of Exploration Results
(criteria listed in the preceding group apply also to this group)
Mineral tenement and • Type, reference name/number, location and ownership including agreements or material
land tenure status. issues with third parties such as joint ventures, partnerships, overriding royalties, native
title interests, historical sites, wilderness or national park and environmental settings.
• The security of the tenure held at the time of reporting along with any known
impediments to obtaining a licence to operate in the area.
Exploration done by • Acknowledgment and appraisal of exploration by other parties.
other parties.
Geology. • Deposit type, geological setting and style of mineralisation.
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THE 2004 AUSTRALASIAN CODE FOR REPORTING EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES (THE JORC CODE)
Criteria Explanation
Reporting of Exploration Results
(criteria listed in the preceding group apply also to this group)
Data aggregation • In reporting Exploration Results, weighting averaging techniques, maximum and/or
methods. minimum grade truncations (eg. cutting of high grades) and cut-off grades are usually
material and should be stated.
• Where aggregate intercepts incorporate short lengths of high grade results and longer
lengths of low grade results, the procedure used for such aggregation should be stated
and some typical examples of such aggregations should be shown in detail.
• The assumptions used for any reporting of metal equivalent values should be clearly stated.
Relationship between • These relationships are particularly important in the reporting of Exploration Results.
mineralisation • If the geometry of the mineralisation with respect to the drill hole angle is known, its
widths and intercept nature should be reported.
lengths. • If it is not known and only the down-hole lengths are reported, there should be a clear
statement to this effect (eg. ‘downhole length, true width not known’).
Diagrams. • Where possible, maps and sections (with scales) and tabulations of intercepts should be
included for any material discovery being reported if such diagrams significantly clarify
the report.
Balanced reporting. • Where comprehensive reporting of all Exploration Results is not practicable,
representative reporting of both low and high grades and/or widths should be practised
to avoid misleading reporting of Exploration Results.
Other substantive • Other exploration data, if meaningful and material, should be reported including (but not
exploration data. limited to): geological observations; geophysical survey results; geochemical survey
results; bulk samples – size and method of treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock characteristics; potential deleterious or
contaminating substances.
Further work. • The nature and scale of planned further work (eg. tests for lateral extensions or depth
extensions or large-scale step-out drilling).
Estimation and Reporting of Mineral Resources
(criteria listed in the first group, and where relevant in the second group, apply also to this group)
Database integrity. • Measures taken to ensure that data has not been corrupted by, for example,
transcription or keying errors, between its initial collection and its use for Mineral
Resource estimation purposes.
• Data validation procedures used.
Geological • Confidence in (or conversely, the uncertainty of) the geological interpretation of the
interpretation. mineral deposit.
• Nature of the data used and of any assumptions made.
• The effect, if any, of alternative interpretations on Mineral Resource estimation.
• The use of geology in guiding and controlling Mineral Resource estimation.
• The factors affecting continuity both of grade and geology.
Dimensions. • The extent and variability of the Mineral Resource expressed as length (along strike or
otherwise), plan width, and depth below surface to the upper and lower limits of the
Mineral Resource.
Estimation and • The nature and appropriateness of the estimation technique(s) applied and key assumptions,
modelling techniques. including treatment of extreme grade values, domaining, interpolation parameters,
maximum distance of extrapolation from data points.
• The availability of check estimates, previous estimates and/or mine production records
and whether the Mineral Resource estimate takes appropriate account of such data.
• The assumptions made regarding recovery of by-products.
• Estimation of deleterious elements or other non-grade variables of economic significance
(e.g. sulphur for acid mine drainage characterisation).
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[Sapphire Capital]

THE 2004 AUSTRALASIAN CODE FOR REPORTING EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES (THE JORC CODE)
Criteria Explanation
• In the case of block interpolation, the block size in relation to the average sample
spacing and the search employed.
• Any assumptions behind ling of selective mining units.
• Any assumptions about correlation between variables.
• The process of validation, the checking process used, the comparison of data to
drillhole data, and use of reconciliation data if available.
Moisture. • Whether the tonnages are estimated on a dry basis or with natural moisture, and the
method of determination of the moisture content.
Cut-off parameters. • The basis of the adopted cut-off grade(s) or quality parameters applied.
Mining factors • Assumptions made regarding possible mining methods, minimum mining dimensions and
or assumptions. internal (or, if applicable, external) mining dilution. It may not always be possible to make
assumptions regarding mining methods and parameters when estimating Mineral
Resources. Where no assumptions have been made, this should be reported.
Metallurgical factors • The basis for assumptions or predictions regarding metallurgical amenability. It may not
or assumptions. always be possible to make assumptions regarding metallurgical treatment processes and
parameters when reporting Mineral Resources. Where no assumptions have been made,
this should be reported.
Bulk density. • Whether assumed or determined. If assumed, the basis for the assumptions. If determined,
the method used, whether wet or dry, the frequency of the measurements, the nature,
size and representativeness of the samples.
Classification. • The basis for the classification of the Mineral Resources into varying confidence categories.
• Whether appropriate account has been taken of all relevant factors. i.e. relative
confidence in tonnage/grade computations, confidence in continuity of geology and
metal values, quality, quantity and distribution of the data.
• Whether the result appropriately reflects the Competent Person(s)’ view of the deposit.
Audits or reviews. • The results of any audits or reviews of Mineral Resource estimates.
Discussion of relative • Where appropriate a statement of the relative accuracy and/or confidence in the Mineral
accuracy/confidence. Resource estimate using an approach or procedure deemed appropriate by the
Competent Person. For example, the application of statistical or geostatistical procedures
to quantify the relative accuracy of the resource within stated confidence limits, or, if
such an approach is not deemed appropriate, a qualitative discussion of the factors
which could affect the relative accuracy and confidence of the estimate.
• The statement should specify whether it relates to global or local estimates, and, if local,
state the relevant tonnages or volumes, which should be relevant to technical and
economic evaluation. Documentation should include assumptions made and the
procedures used.
• These statements of relative accuracy and confidence of the estimate should be
compared with production data, where available.
Estimation and Reporting of Ore Reserves
(criteria listed in the first group, and where relevant in other preceding groups, apply also to this group)
Mineral Resource • Description of the Mineral Resource estimate used as a basis for the conversion
estimate for conversion to an Ore Reserve.
to Ore Reserves. • Clear statement as to whether the Mineral Resources are reported additional to,
or inclusive of, the Ore Reserves.
Study status. • The type and level of study undertaken to enable Mineral Resources to be converted
to Ore Reserves.
• The Code does not require that a final feasibility study has been undertaken to convert
Mineral Resources to Ore Reserves, but it does require that appropriate studies will have
been carried that will have determined a mine plan that is technically achievable and
economically viable, and that all Modifying Factors have been considered.
Cut-off parameters. • The basis of the cut-off grade(s) or quality parameters applied.
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THE 2004 AUSTRALASIAN CODE FOR REPORTING EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES (THE JORC CODE)
Criteria Explanation
Mining factors • The method and assumptions used to convert the Mineral Resource to an Ore Reserve
or assumptions. (ie either by application of appropriate factors by optimisation or by preliminary or
detailed design).
• The choice of, the nature and the appropriateness of the selected mining method(s) and
other mining parameters including associated design issues such as pre-strip, access, etc.
• The assumptions made regarding geotechnical parameters (eg. pit slopes, stope sizes,
etc.), grade control and pre-production drilling.
• The major assumptions made and Mineral Resource used for pit optimisation
(if appropriate).
• The mining dilution factors, mining recovery factors, and minimum mining widths used.
• The infrastructure requirements of the selected mining methods.
Metallurgical factors • The metallurgical process proposed and the appropriateness of that process to the style
or assumptions. of mineralisation.
• Whether the metallurgical process is well-tested technology or novel in nature.
• The nature, amount and representativeness of metallurgical testwork undertaken and
the metallurgical recovery factors applied.
• Any assumptions or allowances made for deleterious elements.
• The existence of any bulk sample or pilot scale testwork and the degree to which such
samples are representative of the orebody as a whole.
Cost and revenue • The derivation of, or assumptions made, regarding projected capital and operating costs.
factors. • The assumptions made regarding revenue including head grade, metal or commodity
price(s) exchange rates, transportation and treatment charges, penalties, etc.
• The allowances made for royalties payable, both Government and private.
Market assessment. • The demand, supply and stock situation for the particular commodity, consumption
trends and factors likely to affect supply and demand into the future.
• A customer and competitor analysis along with the identification of likely market
windows for the product.
• Price and volume forecasts and the basis for these forecasts.
• For industrial minerals the customer specification, testing and acceptance requirements
prior to a supply contract.
Other. • The effect, if any, of natural risk, infrastructure, environmental, legal, marketing, social or
governmental factors on the likely viability of a project and/or on the estimation and
classification of the Ore Reserves.
• The status of titles and approvals critical to the viability of the project, such as mining
leases, discharge permits, government and statutory approvals.
Classification. • The basis for the classification of the Ore Reserves into varying confidence categories.
• Whether the result appropriately reflects the Competent Person(s)’ view of the deposit.
• The proportion of Probable Ore Reserves which have been derived from Measured
Mineral Resources (if any).
Audits or reviews. • The results of any audits or reviews of Ore Reserve estimates.
Discussion of relative • Where appropriate a statement of the relative accuracy and/or confidence in the Ore
accuracy/confidence. Reserve estimate using an approach or procedure deemed appropriate by the Competent
Person. For example, the application of statistical or geostatistical procedures to quantify
the relative accuracy of the reserve within stated confidence limits, or, if such an
approach is not deemed appropriate, a qualitative discussion of the factors which could
affect the relative accuracy and confidence of the estimate.
• The statement should specify whether it relates to global or local estimates, and, if local,
state the relevant tonnages or volumes, which should be relevant to technical and
economic evaluation. Documentation should include assumptions made and the
procedures used.
• These statements of relative accuracy and confidence of the estimate should be
compared with production data, where available.
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THE 2004 AUSTRALASIAN CODE FOR REPORTING EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES (THE JORC CODE)
Criteria Explanation
Estimation and Reporting of Diamonds and other Gemstones
(criteria listed in other relevant groups also apply to this group; additional guidelines are available in the
’Guidelines for the Reporting of Diamond Exploration Results‘ issued by the Diamond Exploration Best Practices
Committee established by the Canadian Institute of Mining, Metallurgy and Petroleum.)
Indicator minerals. • Reports of indicator minerals, such as chemically/physically distinctive garnet, ilmenite,
chrome spinel and chrome diopside, should be prepared by a suitably qualified laboratory.
Source of diamonds. • Details of the form, shape, size and colour of the diamonds and the nature of the source
of diamonds (primary or secondary) including the rock type and geological environment.
Sample collection. • Type of sample, whether outcrop, boulders, drill core, reverse circulation drill cuttings,
gravel, stream sediment or soil, and purpose, e.g. large diameter drilling to establish
stones per unit of volume or bulk samples to establish stone size distribution.
• Sample size, distribution and representativity.
Sample treatment. • Type of facility, treatment rate, and accreditation.
• Sample size reduction. Bottom screen size, top screen size and re-crush.
• Processes (dense media separation, grease, X-ray, hand-sorting etc.).
• Process efficiency, tailings auditing and granulometry.
• Laboratory used, type of process for micro diamonds and accreditation.
Carat. • One fifth (0.2) of a gram (often defined as a metric carat or MC).
Sample grade. • Sample grade in this section of Table 1 is used in the context of carats per units of mass,
area or volume.
• The sample grade above the specified lower cut-off sieve size should be reported as
carats per dry metric tonne and/or carats per 100 dry metric tonnes. For alluvial deposits,
sample grades quoted in carats per square metre or carats per cubic metre are
acceptable if accompanied by a volume to weight basis for calculation.
• In addition to general requirements to assess volume and density there is a need to relate
stone frequency (stones per cubic metre or tonne) to stone size (carats per stone) to
derive sample grade (carats per tonne).
Reporting of • Complete set of sieve data using a standard progression of sieve sizes per facies. Bulk
Exploration Results. sampling results, global sample grade per facies. Spatial structure analysis and grade
distribution. Stone size and number distribution. Sample head feed and tailings particle
granulometry.
• Sample density determination.
• Percent concentrate and undersize per sample.
• Sample grade with change in bottom cut-off screen size.
• Adjustments made to size distribution for sample plant performance and performance on
a commercial scale.
• If appropriate or employed, geostatistical techniques applied to stone size,
distribution or frequency from size distribution of exploration diamond samples.
• The weight of diamonds may only be omitted from the report when the diamonds are
considered too small to be of commercial significance. This lower cut-off size should
be stated.
Grade estimation for • Description of the sample type and the spatial arrangement of drilling or sampling
reporting Mineral designed for grade estimation.
Resources and • The sample crush size and its relationship to that achievable in a commercial treatment plant.
Ore Reserves. • Total number of diamonds greater than the specified and reported lower cut-off sieve size.
• Total weight of diamonds greater than the specified and reported lower cut-off sieve size.
• The sample grade above the specified lower cut-off sieve size.
Value estimation. • Valuations should not be reported for samples of diamonds processed using total
liberation method, which is commonly used for processing exploration samples.
• To the extent that such information is not deemed commercially sensitive, Public Reports
should include:
– Diamonds quantities by appropriate screen size per facies or depth.
– Details of parcel valued.
– Number of stones, carats, lower size cut-off per facies or depth.
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THE 2004 AUSTRALASIAN CODE FOR REPORTING EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES (THE JORC CODE)
Criteria Explanation
• The average $/carat and $/tonne value at the selected bottom cut-off should be reported in
US Dollars. The value per carat is of critical importance in demonstrating project value.
• The basis for the price (e.g. dealer buying price, dealer selling price etc.).
• An assessment of diamond breakage.
Security and integrity. • Accredited process audit.
• Whether samples were sealed after excavation.
• Valuer location, escort, delivery, cleaning losses, reconciliation with recorded sample
carats and number of stones.
• Core samples washed prior to treatment for micro diamonds.
• Audit samples treated at alternative facility.
• Results of tailings checks.
• Recovery of tracer monitors used in sampling and treatment.
• Geophysical (logged) density and particle density.
• Cross validation of sample weights, wet and dry, with hole volume and density, moisture factor.
Classification. • In addition to general requirements to assess volume and density there is a need to relate
stone frequency (stones per cubic metre or tonne) to stone size (carats per stone) to
derive grade (carats per tonne). The elements of uncertainty in these estimates should
be considered, and classification developed accordingly.
APPENDIX 1
GENERIC TERMS AND EQUIVALENTS
Throughout the Code, certain words are used in a general sense when a more specific meaning might be attached to them
by particular commodity groups within the industry. In order to avoid unnecessary duplication, a non-exclusive list of
generic terms is tabulated below together with other terms that may be regarded as synonymous for the purposes of this
document.
Generic Term Synonyms and Similar Terms Intended Generalised Meaning
Tonnage Quantity, Volume An expression of the amount of material of interest irrespective of
the units of measurement (which should be stated when figures
are reported)
Grade Quality, Assay, Any physical or chemical measurement of the characteristics of the
Analysis (Value) material of interest in samples or product. Note that the term quality
has special meaning for diamonds and other gemstones. The units
of measurement should be stated when figures are reported.
Metallurgy Processing, Beneficiation, Physical and/or chemical separation of constituents of interest
Preparation, Concentration from a larger mass of material. Methods employed to prepare a final
marketable product from material as mined. Examples include screening,
flotation, magnetic separation, leaching, washing, roasting etc.
Recovery Yield The percentage of material of initial interest that is extracted during
mining and/or processing. A measure of mining or processing efficiency.
Mineralisation Type of deposit, orebody, Any single mineral or combination of minerals occurring in a mass, or
style of mineralisation. deposit, of economic interest. The term is intended to cover all forms
in which mineralisation might occur, whether by class of deposit,
mode of occurrence, genesis or composition.
Ore Reserves Mineral Reserves ‘Ore Reserves’ is preferred under the JORC Code but ‘Mineral
Reserves’ is in common use in other countries and is generally accepted.
Other descriptors can be used to clarify the meaning e.g. coal
reserves, diamond reserves etc.
Cut off grade Product specifications The lowest grade, or quality, of mineralised material that qualifies
as economically mineable and available in a given deposit. May
be defined on the basis of economic evaluation, or on physical or
chemical attributes that define an acceptable product specification.
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Australasian Securities Exchange
Companies Updates: 03/08; 11/07; 03/07; 05/04
(Extracts relevant to the JORC Code)
Companies Update
18 March 2008
Update no 03/08
JORC compliance
In excess of one third of all ASX Limited ("ASX") listed companies are mining and exploration
entities. ASX monitors all announcements made by listed entities and has during the December
2007 quarter identified a number of JORC Code (PDF 335KB) compliance reporting issues that
ASX believes would be assisted by ASX providing further guidance to companies.
These issues include:
1. Reporting of "in situ" values
2. Reporting historical or non-JORC compliant estimates
3. Competent Person statement
4. Reporting exploration targets
5. Lack of drill hole information
6. Combining categories of resources and reserves
7. Incorrect use of reserves or resources to describe results
1. Reporting of "in - ground value" or "in situ value"
During the December 2007 quarter, ASX identified an increased usage of 'in-ground value' or 'in
situ value' by companies when reporting exploration results or evaluation of deposits that
commonly include a large proportion of Inferred Resources. Consequently, ASX seeks to provide
clarification on the usage of 'in-ground value' or 'in situ value' when reporting exploration results.
The practice of reporting 'in-ground value' or 'in situ value' by companies is an attempt to convey
the significance of the exploration results or deposit to the investing community by converting it
to a dollar amount.
However, the use of 'in-ground values' has little to no relationship to economic viability, value or
potential returns to investors and may therefore be misleading. The term implies economic
viability without considering the application of the Modifying Factors (JORC Code (PDF
335KB) Clauses 11 & 28), in particular, the mining, metallurgical, economic, marketing, legal,
environmental, social, and governmental considerations. In determining project viability it is
necessary to include all reasonable Modifying Factors (JORC Code (PDF 335KB) Clause 28) to
determine the economic value that can be extracted from the mineralisation.
Many deposits with large 'in-ground values' are never developed because they have a negative
Net Present Value when all reasonable Modifying Factors are considered. By reporting an 'inground
value' or 'in situ value' for exploration results or when evaluating deposits that commonly
include large portions of inferred resources, companies are not properly representing the
economic viability of the project, or the net economic value that can be extracted from the
mineralisation.
In practice, the economically viable portion of a mineral resource is converted to ore reserves
only after taking into account all Modifying Factors. Clause 27 of the JORC Code (PDF 335KB)
states: "The words 'ore' and 'reserves' must not be used in describing Mineral Resource Estimates
as the terms imply economic viability and are only appropriate when all Modifying Factors have
been considered". Inferred Resources are not able to be converted to Ore Reserves, and it is also
possible that portions of Indicated and Measured Resources may not convert to Ore Reserves nor
contribute to the Net Present Value of a given mineralised body at the time of evaluation.
The publication of 'in-situ' or 'in-ground values' may also breach the principles of the JORC Code
(PDF 335KB) as the use of these terms:
a. is not transparent, in that the reader is not "provided with sufficient information, the
presentation of which is clear and unambiguous, to understand the report and not be
misled" (JORC Code (PDF 335KB) Clause 4); and
b. lacks materiality in that the statement of 'in-ground values' does not "contain all the
relevant information which investors and their professional advisors would reasonably
require, and reasonably expect to find in the report, for the purpose of making a reasoned
and balanced judgement" (JORC Code (PDF 335KB) Clause 4).
Consequently use of the terms 'in-ground value' or 'in situ value' is also contrary to the intent of
Clause 27 of the Code, and should not be reported by companies.
2. Reporting historical estimates or estimates currently not reported in accordance with the
JORC Code
Companies seeking to list on ASX wishing to include information in their prospectus which is not
JORC compliant need to approach ASX for a waiver, and, subject to certain conditions, waivers
may be granted. Listed companies seeking to announce information that does not comply with the
JORC Code (PDF 335KB) will also need to approach ASX for a waiver, and, in certain
circumstances, waivers may be granted (see Companies Update dated 5 December 2007). Where
companies lodge announcements which are based on historical estimates that are not reported in
accordance with the JORC Code (PDF 335KB) and not the subject of an ASX waiver, or do not
come under Clause 18 of the JORC Code (PDF 335KB), it is likely that ASX will request the
company to make a further announcement retracting the comments made in the earlier
announcement. In addition ASX may pursue further supervisory action.
3. Competent person statement
In releasing public reports that contain information in relation to Exploration Results, Mineral
Resources and/or Ore Reserves, companies are required under clause 8 the JORC Code (PDF
335KB) to do the following:
• disclose the name(s) of the Competent Person or Persons, state whether the Competent
Person is a full-time employee of the company, and, if not, name the Competent Person's
employer;
• ensure that the Competent Person has a minimum of five years experience which is
relevant to the style of mineralisation and type of deposit under consideration and to the
activity which that person is undertaking; and
• ensure that the public report is issued with the prior written consent of the Competent
Person or Persons as to the form and context in which it appears.
The ASX Companies Update dated 3 May 2007 outlined ASX's view that it regards the
completion of a consent form to be good practice and will accept the completed form (in a format
proposed by ASX or another equivalent format) as evidence that the required written consent has
been obtained. ASX may request the company to release to the market evidence that it has
obtained the consent of the competent person to the inclusion, in the form and context in which it
appears in the public report, of the information prepared by the Competent Person. ASX may in
certain instances also write to the Boards of listed companies requesting further information
pursuant to listing rule 18.7 (PDF 204 KB) to determine whether ASX believes that the company
is in compliance with the rules. In these circumstances the request and response will be released
to the market.
4. Exploration Targets
Clause 18 of the JORC Code (PDF 335KB) facilitates the reporting of exploration targets in
public reports. There are, however, a number of reporting conditions that must be satisfied before
an exploration target is reported. The reporting conditions include:
a. Any such information relating to exploration targets must be expressed so that it cannot be
misrepresented or misconstrued as an estimate of Mineral Resources or Ore Reserves.
b. Any statement referring to potential quantity and grade of the target must be expressed as
ranges and must include:
i. a detailed explanation of the basis for the statement; and
ii. a proximate statement that the potential quantity and grade is conceptual in
nature, that there has been insufficient exploration to define a Mineral
Resource, and that it is uncertain if further exploration will result in the
determination of a Mineral Resource.
It is not sufficient to disclose an exploration target without also disclosing all of the information
required under the second reporting condition. Where an exploration target is reported ASX
requires the information that satisfies reporting condition 2 to be disclosed with the same
prominence as the exploration target and in a proximate location. Where an exploration target is
reported in a company presentation, ASX expects the information that satisfies reporting
condition 2 also to be included in the presentation slides. If a public report does not comply with
clause 18, ASX will require a company to make a retraction or clarifying announcement.
5. Lack of drill hole information
ASX has identified an increase in the reporting of isolated assays, and isolated drill holes without
placing them in perspective. Pursuant to clause 17 of the JORC Code (PDF 335KB), a company
should not report an isolated assay or drill hole without also disclosing the results from all
relevant assays or drill holes. It is not necessary for the company to report all assays or drill holes
provided that an explanation is given as to why the results are not considered relevant (e.g., cut
off grade). In reporting Exploration Results, companies must comply with the requirements of
clause 17.
6. Combining categories of resources and reserves
Clauses 25, 33, and 34 of the JORC Code (PDF 335KB) do not allow statements in public
reports which provide only total figures for Mineral Resources or Ore Reserves.
Mineral Resource estimates must be allocated to the defined categories of Measured, Indicated,
and Inferred. Ore Reserve estimates must be allocated to the defined categories of Proved and
Probable. Mineral Resources estimates must not be aggregated with Ore Reserves estimates to
report a single combined figure.
In situations where figures for both Mineral Resources and Ore Reserves are reported, a statement
must be included in the report which clearly indicates whether the Mineral Resources are
inclusive of, or additional to, the Ore Reserves.
7. Incorrect use of reserves or resources to describe results
The reporting of Exploration Results is common in the early stages of exploration when the
quantity of data is generally not sufficient to allow any reasonable estimates of Mineral
Resources. Public reports of Exploration Results must not be presented so as unreasonably to
imply that potentially economic mineralisation has been discovered.
Companies are encouraged to refer to Table 1 of the JORC Code (PDF 335KB) for the list of
main criteria which should be considered when preparing reports on Exploration Results.
Companies Update
5 December 2007
Update no 11/07
JOINT MARKET STATEMENT - ASX & JORC
Historical estimates and foreign resource and reserve estimates, currently not reported in
accordance with the JORC Code
Introduction
In some instances mining companies listed on ASX are in a position where they want to report, or
believe they are required to report, material statements of historical estimates or foreign resource
and reserve estimates, currently not reported in accordance with the JORC Code. Historical
estimates are those prepared pre-1989, which is when the JORC Code was introduced to the ASX
Listing Rules as an Appendix.
This Joint Statement by ASX and JORC sets out the circumstances in which ASX will consider
waiving the company's obligation under listing rule 5.6, which requires a report prepared by a
mining entity to be in accordance with the JORC Code, in order to accommodate the reporting of
historical pre-JORC Code estimates. This Statement also sets out the minimum requirements for
disclosing information in relation to such estimates.
This statement is intended to provide certainty to the market in terms of when and how historical
non-JORC Code compliant reporting may be made. It is also intended to reinforce that there are
only exceptionally limited circumstances in which ASX will accommodate reporting that is not in
accordance with the requirements of the JORC Code. Such reporting must, at a minimum, comply
with the requirements of this Statement, and any other conditions that ASX imposes on the
company. Nothing in this statement affects ASX's ability to take action against a listed company
for breach of listing rule 5.6 or any other listing rule.
Circumstances to which this Statement applies
• Situations where previously prepared reports (which may or may not be published) include
statements of historical (pre-JORC Code or before the requirement to name the Competent
Person) estimates, or foreign resource and reserve estimates currently not reported in
accordance with the JORC Code.
Circumstances to which this Statement does not apply
• Situations where exploration and evaluation programs are incomplete and companies want
to report preliminary resources;
• Situations where appropriate studies have not yet been completed to the point to allow the
conversion of mineral resources to ore reserves;
• Situations where the company wishes to refer to resource or reserve estimates, currently
not reported in accordance with the JORC Code, and relating to areas adjacent to or near to
the company's tenements;
• A company is under no circumstances to treat the historical estimate as a current reserve or
resource, for example by including the estimate in economic analysis or in the company's
current reserve or resource estimates. The company must make appropriate JORC Code
disclosures in accordance with Chapter 5 of the listing rules in relation to those estimates,
before the historical estimate can be treated as a current reserve or resource.
• Any other situation where a company is seeking to avoid reporting in accordance with the
JORC Code and which does not involve reporting historical or foreign estimates in the
spirit of this Statement.
Requirements for non-JORC Code Compliant Historical and Foreign Reporting
A company which requests a waiver from listing rule 5.6 for the purposes of reporting statements
of historical estimates or foreign resource and reserve estimates, currently not reported in
accordance with the JORC Code must, at a minimum:
1. Clearly disclose that the historical or foreign estimate is not reported in accordance with
the JORC Code and it is uncertain that following evaluation and/or further exploration the
resource or reserve will ever be able to be reported in accordance with the JORC Code.
2. Clearly identify and disclose the source(s) and date of all the historical estimate(s).
3. Confirm that the historical estimate is relevant and state why it is relevant.
4. Comment on the reliability of the historical estimate with reference to any items in Table 1
of the JORC Code which are relevant to understanding the reliability of the estimate.
Specifically comment on the nature of the historic work programs on which the historical
estimate is based and the key assumptions and parameters underlying the historical
estimate.
5. Comment on the materiality of the historical estimate, with specific reference to:
a. Why the estimate is material;
b. What exploration or evaluation program the company intends to undertake;
c. How the company intends to fund that program;
d. Any impact on resources currently devoted to other exploration projects.
6. State whether the historical estimate uses categories other than the ones set out in the
JORC Code and, if so, include an explanation of the differences.
7. Include any more recent estimate or data available to the company.
8. Disclose the company's intention to evaluate those matters listed in Table 1 of the JORC
Code (Appendix 5A of the listing rules) which are relevant to the estimate and/or conduct
exploration for the purposes of allowing a Competent Person to take responsibility for the
estimates of Mineral Resources or Ore Reserves in order that they may be reported by the
Company in accordance with the JORC Code, and the time frame in which the Company
intends to report those activities.
9. Indicate that the report is consistent with the guidance contained in this Companies Update
and Companies Update no 05/04 25 March 2004 (reprinted below)
10.Include a statement by a Competent Person who accepts responsibility for the accuracy of
the information disclosed in items 2 to 9 above.
The purpose of these ten requirements is to provide adequate warning to investors and to their
professional advisers that the information disclosed by the company is not in accordance with the
JORC Code. The materiality of the estimates disclosed can therefore be considered in this
context.
Excerpt: Companies Update no 05/04 25 March 2004
JORC Code Compliance, Chapter 5 of ASX Listing Rules
In recent months ASX has noted some instances where companies, when reporting mineral
resources and ore reserves, have announced resources which are not in compliance with the
requirements of the JORC Code. In some instances, announcements have referred to a non-JORC
compliant "resource of xx tonnes and yy grade...".
ASX, in consultation with JORC, takes the view that this represents unacceptable practice under
the JORC Code, compliance with which is a requirement of Chapter 5 of ASX Listing Rules.
Chapter 5 of the ASX listing Rules requires ASX listed companies to prepare exploration results
and mineral resources and ore reserves estimates in compliance with the JORC Code. The
description of a resource or reserve estimate as a "non-JORC compliant", resource or reserve
estimate is not acceptable to ASX.
Where a listed company does release to the market a "non-JORC compliant" resource or reserve
estimate without prior consultation with ASX, ASX will consider halting trading in the entity's
quoted securities until the matter is clarified/rectified.
There may be limited occasions where a listed company believes it needs to provide a "non-
JORC compliant" estimate under the Continuous Disclosure requirements of the ASX Listing
rules. In such cases a company will need to consult with ASX prior to making such disclosure.
Companies Update
3 May 2007
Update no 03/07
ASX / JORC INITIATIVES
For more than three decades, ASX Limited (ASX) and the Joint Ore Reserves Committee (JORC)
have been working to ensure a practical and effective set of minimum reporting standards and
guidelines for the mining industry. These standards and guidelines, embodied in the JORC Code
(DOC 339KB), contribute significantly to Australia's reputation for offering a well-regulated and
supervised marketplace. This reputation for integrity is critical to Australia's attractiveness to
global capital.
Preserving confidence in the integrity of Australia's market is the mutual interest of all
participants, including the market operator, industry bodies, and listed companies. Accordingly,
ASX and JORC are working together on a number of initiatives designed to maintain a high
standard of compliance with the JORC Code (DOC 339KB) by ASX listed entities.
One third of all ASX listed companies are mining and resources entities. A well-functioning
JORC Code (DOC 339KB) not only supports Australia's status as a mining centre, it also
underpins the market's overall attractiveness. Its success depends on the support of all
participants.
During the March 2007 quarter, ASX identified a number reporting issues faced by companies
that require some additional guidance. Consequently, this Companies Update seeks to provide
clarification on the following issues; the reporting of metal equivalents, the use of extrapolation
when reporting Mineral Resources, the inclusion of Competent Person Statements and obtaining
written consent from a Competent Person for the release of a public report.
This Companies Update deals with:
1. Reporting of metal equivalents;
2. Reporting of Mineral Resources, Extrapolation, and Sampling;
3. Competent Person's Statement and Consent Form; and
4. Enforcement action by ASX for non-compliance with the JORC Code (DOC 339KB).
1. REPORTING OF METAL EQUIVALENTS
ASX has observed that there appears to be an increased usage of metal equivalents by companies
when reporting exploration results. Metal equivalents are used by companies to report
polymetallic exploration results in terms of a single equivalent grade of one major metal such as
gold or copper. This metal equivalent grade is usually obtained by taking the in situ "value"
(grade times price) of each of the individual metals, adding these "values" and calculating the
grade of the same "value" of the primary reported metal. Such reporting may be misleading unless
additional details such as estimates of metal recoverability are also provided.
The JORC Code (DOC 339KB) provides guidance in Table 1 - Data Aggregation Methods, that
"The assumptions used for any reporting of metal equivalent values should be clearly stated". The
reporting of metal equivalents must also adhere to the principles of transparency, materiality and
competence, as set out in clause 4 of the JORC Code (DOC 339KB).
The following minimum information should accompany any report which includes reference to
metal equivalents in order to conform with these principles:
• individual assays for all metals included in the metal equivalent calculation;
• assumed commodity prices for all metals. (Companies should disclose the actual assumed
prices. It is not sufficient to refer to a spot price without disclosing the price used in
calculating the metal equivalent);
• assumed metallurgical recoveries for all metals and the basis on which the assumed
recoveries are derived (metallurgical test work, detailed mineralogy, similar deposits, etc.);
• a clear statement that it is the company's opinion that all the elements included in the metal
equivalents calculation have a reasonable potential to be recovered; and
• the calculation formula.
In most circumstances the metal chosen for reporting on an equivalent basis should be the one that
contributes most to the metal equivalent calculation. If this is not the case, a clear explanation of
the logic of choosing another metal must be included in the report.
Estimates of metallurgical recoveries for each metal are particularly important. For many projects
at the Exploration Results stage, metallurgical recovery information may not be available or able
to be estimated with reasonable confidence. Therefore, for many projects at the Exploration
Results stage, reporting in terms of metal equivalents may not be appropriate.
2. REPORTING OF MINERAL RESOURCES, SAMPLING AND EXTRAPOLATION
All reports of Mineral Resources must satisfy the requirements of clause 19 of the JORC Code
(DOC 339KB), in particular, that there are reasonable prospects for eventual economic extraction.
It is the intent of the JORC Code (DOC 339KB) that specific geological evidence required for the
estimation of mineral resources must include sampling data for all classifications of Inferred,
Indicated and Measured Mineral Resources. A Mineral Resource cannot be estimated in the
absence of sampling information.
For the purposes of interpretation of the JORC Code (DOC 339KB) a 'sample' may be defined as:
A statistically-significant subset selected and analysed by an industry accepted method or
measured by an appropriate technique to estimate the characteristics of a larger group or
population.
JORC has advised ASX that the guidance note in Table 1 of the JORC Code (DOC 339KB) on
sampling techniques should not be taken as limiting the broad meaning of sampling. Sampling
techniques referred to in Table 1 should be interpreted as follows:
Table 1 Sampling techniques and data
Sampling
Techniques
Nature and quality of sampling (eg. cut channels, random chips, specific
specialised industry standard measurement tools appropriate to minerals
under investigation such as downhole gamma sondes and prompt fission
neutron bore hole probes etc). Include reference to measures taken to
ensure sample representivity and the appropriate calibration of any
measurement tools or systems used.
For further guidance on reporting of sampling techniques and data please refer to Table 1 of the
JORC Code (DOC 339KB).
JORC has advised ASX that future editions of the JORC Code (DOC 339KB) and Guidelines will
reflect this interpretation of sampling techniques.
Where the Mineral Resource that is being reported is predominantly an Inferred Resource (that
part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a
low level of confidence), sufficient supporting information must be provided to enable the
investor to evaluate and assess the risk associated with the reported Mineral Resource. In
circumstances where the estimation of the Inferred Resource is presented on the basis of
extrapolation, that is, an estimation that extends to an area beyond that of the sample data, clause
26 and Table 1 of the JORC Code (DOC 339KB) and the JORC Code (DOC 339KB) principles of
materiality and transparency require the report to contain sufficient information to inform the
investor of:
• the maximum distance that the resource is extrapolated beyond the sample points;
• the proportion of the resource that is based on extrapolated data;
• the basis on which the resource is extrapolated to these limits; and
• a diagrammatic representation of the Inferred Resource showing clearly the extrapolated
part of the estimated resource.
3. COMPETENT PERSON'S STATEMENT AND CONSENT FORM
Clause 5 of the JORC Code (DOC 339KB) provides that a public report is "a report or reporting
on Exploration Results, Mineral Resources or Ore Reserves, prepared for the purpose of
informing investors or potential investors and their advisers. This includes a report or reporting
to satisfy regulatory requirements". The JORC Code (DOC 339KB) goes on to provide guidance
as to the type of reports that could be considered to be "public reports". They include, but are not
limited to, company annual reports, quarterly reports and other reports to ASX, and include other
publicly released company information in the form of website postings and briefings for
shareholders, stockbrokers and investment analysts.
Companies reporting Exploration Results, Mineral Resources or Ore Reserves are reminded that
while a public report is the responsibility of the company acting through its Board of Directors,
clause 8 the JORC Code (DOC 339KB) requires that any such report "must be based on, and
fairly reflect the information and supporting documentation prepared by a Competent Person or
Persons". In releasing public reports that contain information in relation to Exploration Results,
Mineral Resources and/or Ore Reserves, companies are required under clause 8 the JORC Code
(DOC 339KB) to do the following:
• disclose the name(s) of the Competent Person or Persons, state whether the Competent
Person is a full-time employee of the company, and, if not, name the Competent Person's
employer;
• ensure that the Competent Person has a minimum of five years experience which is
relevant to the style of mineralisation and type of deposit under consideration and to the
activity which that person is undertaking; and
• ensure that the public report is issued with the prior written consent of the Competent
Person or Persons as to the form and context in which it appears.
In order to assist Competent Persons and companies to comply with these requirements, and to
emphasise the need for companies to obtain the written consent of Competent Persons for their
material to be included in the form and context in which it appears in the public report, ASX,
together with JORC, have developed a Competent Person's Consent Form that incorporates the
requirements of the JORC Code (DOC 339KB).
ASX advises that it:
• regards the completion of a consent form to be good practice and will accept the
completed form, whether in the format provided or another equivalent format, as evidence
that the required written consent has been obtained; and
• may request a company to release to the market evidence that it has obtained the
Competent Person's written consent to the inclusion, in the form and context in which it
appears in the public report, of information based on their work in relation to Exploration
Results, Mineral Resources and/or Ore Reserves.
Having the Competent Person's Consent Form completed will ensure that evidence of the written
consent is readily available if ASX subsequently makes a request for the consent to be released to
the market. The Competent Person's Consent Form(s), or other evidence of the Competent
Person's written consent, should be retained by the company to ensure that the written consent can
be promptly provided to ASX if requested.
The Competent Person's Consent Form (DOC 49KB) is available to download from asx.com.au.
4. ENFORCEMENT ACTION BY ASX FOR NON-COMPLIANCE WITH THE JORC
CODE
ASX reminds companies that Chapter 5 (PDF 113 KB) of the ASX Listing Rules requires listed
companies to report Exploration Results, Mineral Resources or Ore Reserve estimates in
compliance with the JORC Code (DOC 339KB). Where it appears that a company may not be in
compliance with listing rule 5.6, ASX may write to the company pursuant to listing rule 18.7
seeking further information and requesting that the response be provided in a format suitable for
release to the market.
Where ASX is concerned that the circumstances of the possible non-compliance may lead to a
disorderly or uninformed market, ASX may suspend a company's securities from quotation and/or
refer the matter to the Australian Securities & Investments Commission for their consideration.
ASX looks forward to your company's cooperation in helping to maintain the highest standards in
reporting Exploration Results, Mineral Resources or Ore Reserves
Companies Update
25 March 2004
Update no 05/04
JORC Code Compliance, Chapter 5 of ASX Listing Rules
In recent months ASX has noted some instances where companies, when reporting mineral
resources and ore reserves, have announced resources which are not in compliance with the
requirements of the JORC Code. In some instances, announcements have referred to a non-JORC
compliant "resource of xx tonnes and yy grade...".
ASX, in consultation with JORC, takes the view that this represents unacceptable practice under
the JORC Code, compliance with which is a requirement of Chapter 5 of ASX Listing Rules.
Chapter 5 of the ASX listing Rules requires ASX listed companies to prepare exploration results
and mineral resources and ore reserves estimates in compliance with the JORC Code. The
description of a resource or reserve estimate as a "non-JORC compliant", resource or reserve
estimate is not acceptable to ASX.
Where a listed company does release to the market a "non-JORC compliant" resource or reserve
estimate without prior consultation with ASX, ASX will consider halting trading in the entity's
quoted securities until the matter is clarified/rectified.
There may be limited occasions where a listed company believes it needs to provide a "non-
JORC compliant" estimate under the Continuous Disclosure requirements of the ASX Listing
rules. In such cases a company will need to consult with ASX prior to making such disclosure.
New Listings, listing rule 1.16
The description of a resource or reserve estimate as a "non-JORC compliant" resource or
reserve estimate in relation to, or in conjunction with, an application for admission to the official
list is not acceptable to ASX.
There may be limited circumstances where a company believes it needs to provide a "non-JORC
compliant" estimate under the Corporations Act and/or Continuous Disclosure requirements of
the ASX Listing rules. In such cases an applicant for admission should consult with ASX prior to
doing so.
Full information about JORC Code is available on the JORC web site.
ASX looks forward to your company's cooperation in helping to maintain the highest standards in
reporting exploration results, mineral resources and ore reserves.
ASX/JORC Initiatives
ASX and JORC are committed to ensuring that a high standard of compliance with the JORC
Code by ASX listed entities is maintained, and accordingly, are working together on a number of
initiatives towards that objective. Further details will be provided in a future Companies Update as
soon as these initiatives are finalized.