Communicating confidence in Mineral Resources and Mineral Reserves
MA Noppé
Mining is an inherently risky business; from the technical, environmental,
social, and economic uncertainties associated with advancing an
exploration prospect to a viable project to the operating, market, and
safety risks and uncertainties attached to a developed mine. Since we
cannot totally escape the risk and uncertainty related to resource
projects, as an industry we should improve our presentation of the
upside and downside risks in the context of the project’s development
path and maturity. More transparent, consistent, and balanced views of
technical confidence will better inform both internal and external
stakeholders about the expected risk in the project.
International reporting codes set out the minimum standards,
recommendations, and guidelines for public reporting of Exploration
Results, Mineral Resources, and Mineral Reserves. However, the
reporting code principles of transparency and materiality are largely
subject to the interpretation of the competent person(s), which may
introduce a degree of subjectivity in reporting, particularly the level of
disclosure regarding supporting information. It is fundamental that
Mineral Resources, Mineral Reserves, and study outcomes are reported
so as to unambiguously present the level of inherent technical
uncertainty (or confidence) in a project, while conveying a balanced
view of the opportunities a project presents. Reporting needs to consider
various stakeholders who may rely on this information, and present the
data in the context of the changing risk profile associated with project
development paths and project maturity.
This paper discusses the interdependence of resource-to-reserve
conversion, the consideration of various technical-economic study types,
and the level of confidence conveyed to stakeholders relying on these
technical reports and other company public announcements.
Keywords: mineral resources, mineral reserves, ore reserves confidence, accuracy,
reporting, classification, JORC Code, SAMREC Code, risk, uncertainty,
reporting codes, scoping study, pre-feasibility, feasibility study.