THE JORC EXPLORATION

STANDARD PROCEDURE
 INTRODUCING

SRK CONSULTING
Patrick J. Hanna (Principal Consultant)
Graeme Duncan (Associate Senior Mine Eng.)
Yoga Suryanegara (Senior Consultant)
Tri Yoso (Senior Consultant)
Galih Lutfihadi (Consultant)
Eko Agus (Consultant)
 BACKGROUND

JORC Code

THE 2004 AUSTRALASIAN CODE

FOR REPORTING OF
MINERAL RESOURCES
AND
ORE RESERVES
 WHAT JORC CODE DOES
•Sets minimum standards for public reporting of exploration results,
Resources and Reserves

•Provides a code (and guidelines) for classification of tonnage/grade

estimates according to geological confidence and
technical/economic considerations

•Describes the qualifications and types of experience required to be

a Competent Person

•Provides a summary list of main criteria to be considered when

preparing reports on exploration results, Resources and Reserves
 WHAT JORC CODE
DOES NOT DO

•Regulate the procedures used by Competent Persons to

estimate and classify Resources and Reserves
(methodology)

•Regulate companies’ internal classification or reporting

systems
 THE PRINCIPLES GOVERNING
JORC REPORTS
•'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 judgment regarding
the mineralization being reported.

•'Competence' requires that the Public Report is based on work

which is the responsibility of a suitably qualified and experienced
person who is subject to an enforceable professional code of ethics.
JORC CLASSIFICATION
 THE BENEFITS OF JORC REPORTING
•Provides an internationally recognized standard for
potential investors and financial institutions to readily
evaluate a mining company’s worth in terms of its
Resources and Reserves.

•Provides a clear understanding to the company’s

management of the level of CONFIDENCE of their internal
estimation of Resources and Reserves and therefore an
understanding of the level of FINANCIAL RISK involved in
the project.
 THE MOST STRATEGY
FOR DELINEATION OF COAL MINE COMPANY
TO DETERMINE RESOURCES AND RESERVES
(Related to Drilling Program)
•EXPLORATION
¾PRELIMINARY DRILLING (OUTCROP
AND WILD CAT DRILLING)
¾DEEP DRILLING
¾SHALLOW DRILLING

•MINE DEVELOPMENT
¾INFILL DRILLING
 PRELIMINARY DRILLING
•DEFINES IN-SITU COAL CONDITION (IN FRESH
CONDITION)

•REQUIRED FOR ROUGH GENERAL COAL

STRATIGRAPHIC

•PROVIDES TARGETS FOR NEXT

EXPLORATION PROGRAM

•PROSPECT AREA
 DEEP DRILLING
•DEFINES LIFE-OF-MINE RESOURCES

•REQUIRED FOR LONG-TERM PLANNING

•PROVIDES TARGETS FOR POTENTIAL PITS

•INFERRED RESOURCES
 SHALLOW DRILLING
•DEFINES 10-YEAR RESOURCES

•IDENTIFIES COAL CHARACTERISTICS

FOR PRIORITIZING PITS

•INITIAL OUTLINE OF SUBCROP LIMITS

•INDICATED RESOURCES
 INFILL DRILLING

•DEFINES CONCEPTUAL PIT DESIGN

•FINALISE SUBCROP LIMITS

•MEASURED RESOURCES FOR 5-YEAR BUDGETS

 ISSUES WITH
THE MOST CURRENT
EXPLORATION STRATEGY

•GENERAL GEOLOGY MODEL

•PRIORITY OF EXPLORATION AREA
•STAGE EXPLORATION PROGRAM
•QUALITY OF DATA
•DRILLING PROGRAM
•COAL QUALITY PROBLEM
 GENERAL GEOLOGY MODEL
(GENERAL INFORMATION)

•GENERAL STRATIGRAPHIC OF
COAL BEARING FORMATION
•LACK OF DATA (FIELD SECTION
DATA)
•LACK OF COAL QUALITY DATA
•UN-CORRECT GEOLOGY MODEL
INTERPRETATION
PRIORITY OF EXPLORATION AREA

•STAGE OF EXPLORATION
PROGRAM
•KEY WORD : QUANTITY (BULK),
QUALITY, COAL LOGISTIC
TRANSPORTATION
 STAGE OF EXPLORATION
(GENERAL INFORMATION)

•KEY WORD: PRELIMINARY,

REGIONAL, SEMI-DETAIL, DETAIL,
DEVELOPMENT
•TARGET OF EACH EXPLORATION
STAGE
•EQUIPMENT AND MAN POWER
 QUALITY OF DRILLING DATA
MAJOR ISSUES
•CORE RECOVERY
¾BOREHOLES HAVE LESS THAN 90% RECOVERY OF
COAL SEAM
¾DUE TO CORE DRILLING METHOD
¾NO GEOPHYSICAL LOGS
¾CONSIDER CHANGING BACK TO “HQ” CORE

•CONSEQUENCES
¾UNDER-ESTIMATING RESOURCES AND ECONOMICS
¾INCORRECT COAL QUALITY ESTIMATION
 QUALITY OF DRILLING DATA
MAJOR ISSUES
•COAL QUALITY
¾UNRELIABLE RESULTS DUE TO SAMPLING
PROCEDURES
¾CURRENTLY ESTIMATED AFTER MINING

•CONSEQUENCES
¾OVER-ESTIMATING CALORIFIC VALUE OF COAL
¾INCORRECT COAL DENSITY ESTIMATION AND
INSITU TONNAGE
 QUALITY OF DATA
MINOR ISSUES
•LOGGING IN SPLITS
¾MORE ACCURATE SEAM DEPTH AND
THICKNESS INFORMATION

•CORE PHOTOGRAPHY
¾PERMANENT RECORD OF CORE FOR FUTURE
REFERENCE
 JORC DRILLING PROGRAM
•MUST BE PLANNED CAREFULLY
¾EXPENSIVE AND CRUCIAL

•REQUIRED TO DELINEATE
¾INTERBURDEN VARIATIONS BETWEEN SEAMS
¾CHANGES IN SEAM DIP
¾QUALITY CONTENT IN MORE DETAIL
 QUALITY PROBLEM
•HIGHLY UNPREDICTABLE
¾NO CORRECT PATTERN
¾NOT A COMMON PROBLEM
¾NOT UNDERSTOOD

•SUGGESTIONS
¾CORRECT STANDARD PROCEDURE IN
SAMPLING
¾TRAINED WELL SITE
¾MONITORING OF DRILLING ACTIVITY
¾REPUTABLE LABORATORIUM
THEREFORE
PRIORITY OF EXPLORATION AREA

GUNUNG
CATEGORIES MASAHA JANGKANG MAS
2 SEAM WITH 2 SEAM WITH 1 SEAM WITH
GENTLE GENTLE FLATT
QUANTITY DIPPING DIPPING DIPPING

QUALITY 5800 – 6200 5200 – 5600 4800 – 5700

TRANSPORTATION CLOSE 7KM. VERY CLOSE 30KM

PRIORITY 2 1 3
 EXPLORATION PROGRAM FOR
LONG-TERM PLANNING
•REQUIRE TO DELINEATE POTENTIAL
MINING AREAS

•ON-GOING ANNUAL PROGRAM PARALLEL

TO OTHER EXPLORATION PROGRAM

•INCLUDES DETAIL TOPOGRAPHY SURVEY

 EXPLORATION PROGRAM FOR
LONG-TERM PLANNING
•400m X 400m DRILL PATTERN – DEEP HOLES

•SURVEY 1:1000 SCALE

•COSTS APPROX $?????? ANNUALLY

•ACQUIRE SIROLOG LOGGING TOOL

APPROX. $????? (will save $????? in 1 year)
 STRATEGY FOR COMPILING
JORC REPORT

•FREQUENCY OF REPORTING – EVERY 2 YEARS

¾CONSIDER DRILLING PROGRESS
¾TOO MUCH DATA – TO BIG A TASK

•1ST REPORT
•2ND REPORT
•3RD REPORT
 STRATEGY FOR COMPILING
JORC REPORT
•TRAIN ALL FIELD GEOLOGIST

•TRAIN STAFF IN JORC REQUIREMENTS AND

PROCESSES

•ENSURE FIELD PROCEDURES ARE COMPLIANT WITH

JORC

•ENABLE UP-TO-DATE INTERNAL JORC REPORTING

REGULARLY
DRILLING PROGRAM FOR
PRELIMINARY TARGET

•MASAHA
•JANGKANG
•GUNUNG MAS
•OTHER POTENTIAL AREA
•ON-GOING EXPLORATION
 MASAHA AND JANGKANG

•TWO SEAMS (1.5 TO 2.7 M WITH IB 26M TO 40M)

¾REQUIRES OUTCROP DRILLING FOR QUALITY
ANALYSIS
¾5 BORES CLOSE TO OUTCROP
¾SHALLOW BORES
¾GEOPHYSICAL LOGGING
¾COAL ANALYSIS
 GUNUNG MAS

•ONE SEAM (1.5M WITH DIP <10DEG)

¾REQUIRES DETAIL OUTCROP MAPPING
¾REQUIRES GENERAL EVALUATION
¾REQUIRES OUTCROP DRILLING (?)
¾DRILLING FOR QUALITY ANALYSIS
¾5 BORES CLOSE TO OUTCROP
¾SHALLOW BORES
¾GEOPHYSICAL LOGGING
¾COAL ANALYSIS
 DRILLING COSTS

GUNUNG
MASAHA JANGKANG MAS TOTAL

DRILLING COSTS

ANALYSIS

E-LOGGING

ADMINISTRATION

TOTAL
 COST BASIS
SHALLOW
DEEP BORES BORES CORED SEAMS

MASAHA

JANGKANG

GUNUNG MAS
 STRATEGY FOR COMPILING
JORC REPORT

•TRAIN STAFF IN JORC REQUIREMENTS AND

PROCESSES

•ENSURE FIELD PROCEDURES ARE COMPLIANT WITH

JORC

•ENABLE UP-TO-DATE INTERNAL JORC REPORTING

REGULARLY
THANK YOU