Resource Estimation Practice at The Granites Gold Mine, Northern Territory

The development of the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves is a significan step towards informing the financial community and the public about the future profitability and risks of investing in resource companies. The Code is also important from the accountants' point of view because it provides them with a well-defined bash for assigning costs or attributing value to the assets of resource companies and hence improving their financial reports. Although reporting to the public is ultimately the responsibility of management, accountants, like geologists, are frequently required to provide information for inclusion in these reports. Jr the last ten years, there has been a considerable refinement in the reporting of mineral resources which can be attributed mainly tc the progress made towards developing the Code. It seems tha the classification and terminology that the geologists have developed are widely used in the annual reports. However, little progress has been made by accountants in improving the financia information. The purpose of this paper is twofold: (a) to outline briefl) some of the major problems in accounting and reporting fo; mining companies and; (b) to examine the potential contribution of the Code in solving those problems.