Practical Interpretation of Resource Classification Guidelines

Mineral resource and ore reserve classification defines the risk associated with quoted resource tonnes and grades, allowing the interested party to make a judgement as to the `worth' of the resource statement. The JORC Code and Guidelines (1992) are now well entrenched as the foundation upon which gold and base metal deposits in particular are publicly reported. There are three categories of resource, namely Measured, Indicated or Inferred reflecting decreasing levels of confidence. The ore reserve, that is the economically mineable part of the resource, is classified as Proven or Probable and can only be drawn from the Measured and Indicated resource categories. As summarised by Stephenson (1995), resource/reserve classification has been an issue ever since the earliest days of mining in Australasia where, like elsewhere in the world, the industry, for a long time, lacked firm reporting guidelines. Those currently adopted in Australasia as the minimum standards for companies reporting to the Australian Stock Exchange (ASX) have been developed and revised since 1972 by The Australasian Institute of Mining and Metallurgy (The AusIMM), the Australian Institute of Geoscientists (AIG) and Australian Mining Industry Council (AMIC). Debate is now underway in terms of adopting an international code. The Code specifically does not attempt to regulate either the classification technique nor the method of estimation of the resource/ore reserve, but rather places the responsibility for this task on a `Competent Person' whose experience will decide the appropriate approach for a given commodity/orebody. The Competent Person must be a Corporate member of either The AusIMM or AIG with five years experience `relevant to the style of mineralisation' under consideration.