Outline
The JORC Code Introduction & Background Changes in 2004 JORC Code Other Codes and International Developments Current Topics of Interest Frequently Asked Questions Discussion.
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Introduction
Model for other national Mineral Resource and Ore Reserves Codes Major strengths
Incorporation of the JORC Code into the ASX Listing Rules in 1989 Periodic updating of the Code.
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Sets minimum standards for public reporting (in Australia & New Zealand) of Exploration Results, Mineral Resources and Ore Reserves
Provides a mandatory system for classification of tonnage/grade estimates according to geological confidence and technical/economic considerations Requires Public Reports to be based on work undertaken by a Competent Person; describes the qualifications and type of experience required to be a Competent Person
Provides extensive guidelines on the criteria to be considered when preparing reports on Exploration Results, Mineral Resources and Ore Reserves.
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Companies (ASX)
Individuals, these are dealt with under code of ethics of AIG and AusIMM or the relevant ROPO.
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Transparency
Materiality
Competence
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Mr Peter Stoker (AusIMM) Mr Mark Adams (AusIMM) Ms Alice Clark (AusIMM) Mr John Dow (AusIMM) Mr Gerry Fahey (AIG) Mr Max Fowles (ASX) Mr Chris Roberts (AIG) Mr Pat Stephenson (AusIMM) Mr Gavin Yeates (MCA) Mr Tim Goldsmith (AusIMM) Dr Bill Shaw (AIG) Mr Don Larkin (AusIMM) The AusIMM.
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Canada
Similar system
South Africa
Detailed list
http://www.asx.com.au/professionals/pdf/ropo_letter november_2005standalone.pdf
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1999 Code
Public Report on exploration results did not require the involvement of a Competent Person Requirement to involve a Competent Person for Exploration Results introduced
2004 Code
1999 Code
No clear distinction between reporting of exploration results and exploration targets Clause 18 clarifies the reporting of exploration targets ( separated from the clause on reporting of Exploration Results)
2004 Code
a detailed explanation of the basis for the statement, and 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.
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The requirement for the Competent Person to be named was not in the Code - ASX listing rules only Transferred to Clause 8
2004 Code
The naming of the Competent Person has been a strong deterrent to public reporting by those who do not qualify as Competent Persons.
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Competent Persons are encouraged to quantify risk/uncertainty attaching to resource/reserve estimates (see Guidelines to Clauses 24 & 32 and Table 1) Not a mandatory requirement Reflecting mining project evaluation and increasingly common professional practice.
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Clause 28 - Level of technical/economic study expected to have been carried out to convert Mineral Resources to Ore Reserves achievable mine plan Requirements for reporting of Exploration Results transferred from ASX listing rules to Code The diamond and other gemstone reporting requirements consolidated and revised Guidelines for the reporting of Industrial Minerals introduced Modification of the coal clauses and recognition of the new Coal Guidelines.
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ASX listing rules included additional requirements for reporting of exploration results Transferred to the Code and removed from the ASX Listing Rules to consolidate the requirements for reporting of Exploration Results.
2004 Code
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USA
SME Reserves Working Group Recommendations Concerning Estimation and Reporting of Mineral Resources and Mineral Reserves Aimed at resolving differences with SEC
South Africa
IASB
Extractive Industries Accounting Standard Request to investigate alignment of the mineral and petroleum reporting codes Classification Framework revision recently completed International reporting template development.
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UN-ECE
CRIRSCO
Reporting Issues
Reporting of Inferred Resources
Submissions called from industry Quarter 4 2005 Subcommittee to report end Quarter 1 2006
Clause 8 is clear on Public Report requirements Terms such as "Probable Resources", "Geological Resources", "In situ Reserves", "Mining Reserves", Mining Inventory, "Possible Reserves" have no meaning under the Code and may not be used in public reports Such terms may be used in internal company reports if the company so wishes, although care should be taken not to create confusion since they are inconsistent with Code terminology.
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ASX Monitoring
ASX have increased monitoring of company reports Steps are underway to form a review panel to assist the ASX in this process.
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Conclusions
JORC Code was born following a period of poor industry reporting standards JORC Code continues to be the basis for International Codes Reporting standards need to be maintained and improved Increased monitoring activity is planned.
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Discussion