AUSTRALASIAN CODE FOR REPORTING OF IDENTIFIED MINERAL RESOURCES AND ORE RESERVES REPORT OF THE JOINT COMMITTEE OF THE AUSTRALASIAN INSTITUTE OF MINING AND METALLURGY AND AUSTRALIAN MINING INDUSTRY COUNCIL se FEBRUARY 1989 AFOREWORD “The Joint Commo was sot up in 1971 to consider ‘and make recommendations on stock exchange listing Toquroments appropiate to mining companier Toporing ore roservon. Tha fst ropot wa published in bpd 1972 and vrpublihed in 1975, ‘he. ‘Commitee reconvened. in 1978. to. reviow dovolopmonts since the fet repod and to condor ‘commending changes. A revised ropot pulsed in 1861" enlarged. tho. s0ston on. proare. rove terminology fo recognise the reporting of cairo, cquakatve, or quanttatvo estates ot penta Sconomic mineralisation’ The repo stabiehed oro Touervos categorie and Keducod tho concept of ‘Procson™ and “qulfcaton” tho lattr boing further fotne in 1989, ‘ho 1980. Commitoo dit not storpt to define or classly mineral resources (as-dstine rom rosorves) protoring to regard resource easensmont Issey a Iators primary of concern to government 5. The Commitlos has sought to define a mineral resource and then outine the process by which R may bbe upgraded to an of@ roserva through consideration ‘of technical and economic eferia and data Inching mining, metallurgy and marketing. 6. The Committee also considers that ifthe investment community recognises that @ mineral resource may bo tho procursor of an ore reserva then it wl find it easier to distinguish mineral resource assessmonts basad on gooeclontife and sampling data from ore reserve fseesemonts based on consideration of dotalled technical and economic data going boyond basic resource data. 7. The Commitee considers this report unifies the industry's reporting of mineral resources and ore ‘oeorves and complements the Austrian Code for Reporting Kdontiied Coal Resources and Reserves and terminology used by government organisations in Australia which is Included with this publication as ‘The present Commies coneKers that is now ‘Appendix 1 appropriate to tink the reporting of mineral resources {wih the roporting of ore reserves as shown In Figure 1 CONCLUSIONS “Tho Committoe botoves that, ints efforts to: + define and distinguich between mineral resourcos and + eubavide Kontiied minoral rosources Into catogorios ‘of “inferod", “indicated” and “measured”; + subdivide ore reserves. into categorios of "probablo™ [and "proved? and + discard the use of the torms “In situ reserves" and “possible oro; t has provided a code that wil promote. standardised teporting of a company’s mineral asso, Figure 1. - REPORTING TERMINOLOGY IDENTIFIECMINERAL RESOURCES (Insitu) INFERRED Increasing level of geological knowledge and confidence ORERESERVES (Mineable) INDICATED ———<—- PROBABLE Consideration of ‘economic, mining, metallurgical, marketing, environmental, social and governmental factors, MEASURED <———mmmp> PROVEDDISCUSSION 9, A*RESOURCE” Is an in stu (moaning a it occurs on ‘surface or underground) mineral occurrance quanttled fon the basis of geological data and a goologeal cuff grade only ‘Tho torm "ORE RESERVE" wil only be used Hf study cf technical and economic etteria and data rotating to the "RESOURCE" has boon caied out and # wil bo sated In torms of minoable tonnes or volume and ‘rade, 10, Tho Commitos reaffirms ts strong boll that the ppublle release of information concerning mineral osourcos and ore rosorvos and ralated estimates must derive from reports propared by appropriataly qualified persone. 11. In an endeavour to encourage competent, professional reporting of resources and ore rasarves and to ‘liminate unsalistactory reporting the Committee frocommends to the industly and to the Australien Stock Exchange Limited that resource and oro reserve reports conform to the Code set out bolow. ‘Tho Committee recommends to the Australian Stock Exchange Limited that @ declaration of conformity or ‘otherwise with this code be a” requirement. for prospectus listings, regular reporting to stock ‘exchanges, press reloases or other Information made avalable tothe public 12. The Commitee Is conscious of the fact that this Code hhas boon the subject of considorable dleeussion and debate and thal posite recommendations wil continue to be received. This Code has been made in the knowedge that it wil require review from time to tim Competence 18. A *Compotont Porson Ie porson who is a Corporate Membor of Tho Australasian Insitute of Mining and Metallurgy with a minimum of five year's experiance in the relevant Resource and Ore Reserve assessment fio Responsibility 14. A “Resource Report” or "Ore Reserve Report” giving technical facts, intorprotaione or assessments of Resources or Ore Reserves must be prepared under the direction of, and signed by a Competent Person or Persons. 15. While the public release of information concerning @ ‘company’s Resources and Ore Reservas romaine tho responsbsity ofits Board of Directors any such roleaso ‘must be based on, and fay rellect, a Resource andlor Ore Reserves Report prepared by a Competent Person, Companies must roviow and report on Resources and (Oro Resorves annually 16. A Company must disclose _basle information oncoming tho status and characteristics of @ minoral doposk which could materially influance the economic ‘value of that depot. 17. Tho Competent Person responsible for the reporting must also include a stalomont relating the reported mineralisation to ts modo of occurrence, Minoralisation may bo established in a surface outerop, ‘costean, mine opening, or dil hole betore there is any ‘certainty or even likelihood that k could constitute part of a resource, Pre-ResourceReporting 18. A Company, when reporting Pre-Rasource mineralization, should disclose avaliable data relating to ts source, including cil intersections where ‘appropriate. In reporting such mineralisation which may ‘be teolated, sporadic or discontinuous, ful information on the nature of the sampling, sample intorvals, assay data and postions must be given. (Refer Table 1) REPORTING OF IDENTIFIED MINERAL RESOURCES ResourceTerminology 19. Tho torm "Resoured” Is defined as an identified in ety ‘mineral oceurranea which ‘exclides “Pro-Rosource” ‘mineralisation, from wich valuable or usoful minerale ‘may be recovered. A resource maybe reported ae + anioterred Resource; + amindioated Resource; or + aMeasured Resource, In dafining a resource, the competent person will only tako into consideration geoscentie data, Mt must be appreciated, howover, that in roporing a rasoutce, there is an implication that thoro are reasonable prospects for eventual ceonomie oxplotaton 20. The torm “inferred Rsourco" Is an estimate, inferred from geoscientiie evidence, dil holes, underground ‘openings, or other sampling procedures and before testing and sampling information le eufclent to allow a ‘more raliablo and systematic estimation 21. The torm * Indeed Resourco” means a Resource sampled by. dil _holes, undorground openings, of ‘ther ‘sanipling procedures at locations too. widely ‘paced to ensure continuty but cise enough to ole a reasonable Indication of continuity and where oosclontic data are known with a reasonable level of Feliabity 22. The torm “Measured Resource” means a Resource intersected ‘and tesied by dil holes, underground ‘openings, or other sampling and procedures at locations which are spaced closely enough to confirm ‘continuty and whoro gooscientite data are rolebly known, 23. The appropriate Resource category must bo. dtormined by a Competent Person, ResourceReport 24. A mineral resource Wentiied during exploratory investigations should only be reported as a Resource to tho stage where a significant. probability of ‘economic viblty has boon establshed and whore ‘lavant mine planning, metallurgical teetng and other ‘otter, as shown In Figure 1, may Indleato that the ‘resource could bo catogorieod te a Recerve, February 1989 Pages.25, Resource roports shouk! bo made moro informative by Alviding Resources Into tho throo categories which foflect the quantity and qual of data avaliable and the degree of correlation or continuity assigned and thus reflect the confidence lavel ofthe assessmont ‘concoming a company's Resources should state tho pptinent data on which the Report Is. basod and ‘contain a qualficaion drawing ationton to any ‘assossment crea from Table 1 for which Inadequate data aro avaliable. 28. An Inforrad Resource (the least rliable assessment) 30. Tho words “oro” and “rasorves" should not bo used in category for any Montfiad rosouree, on which testing and sampling information has Infertod a resource but ‘nok defined 1 suficently to clasely 1 as indicated. Estimates should be exprossed in round figures that 0 not Imply prociee estimation; be sutably qualified with torms such as “approximately; and Include a the data on which the estimate Is statement based. (See Table 1) 27. An Indleatod Resource ostimate wil be based on more ‘data than an Inforted Resource, and will therefore be more reliable. 28. A Measured Resource estimate (the most reliable esource estimate) wil bo based on a substantial ‘amount of data competently collected, intorproted and evaluated which allows a clear outine of shapes, izes, 1000 milion tonnes. lt a moro specific quantitalve estimate is made’ to determine exploration prirites ac. should not be quoted in pubic reports or In any prospactus. TYPE OF RESERVES Minsabio in stu Reserves aro the tonnages of in situ coal ‘contained in seams or sections of seams for which ‘ufficlont tnformation Is avallable to enable. dotalled. or ‘conceptual mine planning and for which such planning has been undertaken. Mineabio In sku Reserves may be caletiated only from Measured and Indlested Resources. Moasured: Resources fare, required for detaled mine planning, and are. the preferred basis for Mingablo In tu Resorves. Indicsted Resources may be used for conceptual mine planning. I gonoral, tutor exploration wil be required prior to ‘Sommencament of mining operations. Mineablo In hu Reserves should be quoted soparaely for surtace and underground mines and an outline of tho proposed mining method{s) shouid be provided. RegoverablefRezerves aro the tonnagos of Minoablo In stu Reserves thet aro expected to be recovered, Le. that properton ofthe seams) which willbe extracted. dition Fébruary 1909 Page7the Recovarablo Reserves tonnage, the total the *run-of-mino" tonnage. Wf alowancs is made Factor must be applied to the Minoable In sity Reserves. ‘This'factor will dapond on the mining method to be used. Unk actor has boon determined for concoptual storealy proven Mining Recovery Factor ‘such information fs not avalablo, a wary Factor of 50% for underground reserves and 90% for surface reserves may be applied, An outine of the proposed mining method should accompany any ‘statement of Resovorable Roserves. Markotable Reserves are the tonnages of coal that will bo ‘avaliable forsale. H.the coal le to be marketed rav, the Marketable Reservas Will be the same as the Recoverable Reserves plus dion, Te. the “vun-ot-mine” tonnage. i the coal is to be beneficlated, Marketable Reserves are calculated by ‘spplying the predicted yield to tho Rocoverable Reserves. ‘The basis of the predictod yiold should be etated, eg. 200 mm cores, elim cores, pretraatod cores. REPORTING OF RESOURCES AND RESERVES ‘Al factors used to limk Resources and Reservas and ‘necessary to verily the calculations (including the types of ebsorvalions, 9g. cored hole, outcrop) must be stated ‘xpltly. The relative donslly value adopted In calculating tho coal tonnage should be noted, togethor with the ‘evidence on which it le based, Tonnage estimates always: ‘should be rounded, commencurate with the accuracy of ‘estimation. ‘Rosourcos and Rocorves chould be statod + foreach seam = on a depth basis, in regular depth ineromonts If “uffclent Information fe avaiable + on a soam thickness basts, the minimum thickness ‘Used should be stated and separate tonnages shoud 'bo quoted for seams loss than 1.5 m thick and seams. ‘equal fo or groator than 1.5 m (this fmt may be groator {or brown coal 0.9. 3 m)..The maximum thickness of ‘any included non-coal bands should be stated. Normally whore @ seam contains a nor-coal bands thicker than 0.3m the two coal spits should be ‘considered as sptrate seams and tonnages should bo ‘eportad for each (the limt for non-coal bande may be ‘greater fr brown coal sequences, 0g. 1 m). + on a qually basis, maximum raw coal ash should bo ‘tated and only that coal which can bo used of Dboneficated st an accoptablo yield (to be stated) ‘should bo inchided in the estimate. Other raw coal ually parametors, partcuary those which affect Uillzaion behaviour, should be stated and further ‘subdivision of the resources made I significant ‘variations occur, 0.9. heat affected coal, oxidized coal. In ackition, for roporing of Reserves the following Information fe required, as minimum + an ute ofthe proposed mining mathod + physical orto ining mining such as maximum and mrinimum working eoston, thicknese, mirimum Separation “of seams, maximum dp, geological ‘Srvc, areas of pronation + qualty ortoria iting! mining such os ash content, ‘oatle mater, yes, te. + for Resoverablo Reserves, the Mining Recovery Factor ood + for Makatablo Reserves, the pradited yl tho coal Is to bo bonetclatd and te qualty specication ofthe product coe! *+ the overburden rai oxprossed as bark cuble metros of overburden to tonnes of coal Ih ak for reserves famonable to surface mining + the depth of planned mining + the percentage of the Resources which are tho ‘Minosbl In sts Resorvee within the area(s) proposed to be mined MAPS ‘Any report of Resources andlor Reserves must bo ‘tbstantiated, to the rolevant Government authority, by ‘maps at ecaloe appropriate to tho accuracy claimed forthe Resources andor Reserves, showing all relevant data Inoluding the areas considered for each catogory of Resources andlor Reserves, tho limits Imposed (0g. cover lines, seam lsopachs, Isoashea), tho areas of prohibtion, and seam thickness ai polnts of observation. A PUBLIC STATEMENT ‘A Pubic Statoment of Resources andlor Reserves claiming the authorty of this Code should be Inthe format descrined In the section “Reporting of Reeaurcos and Reserves". The qualfications of the. person(s) responsible for thls “Reporting” should bo tated. REFERENCE For guidance in determining “coe! qualty from bore corn, sternce shouldbe made to Austrian Standard 2510 0: ee th eaten of ar a aponte srieieme