Almaty, 10-11 December, 2009
Mapping of CRIRSCO Template
to
UNFC-2009UN-ECE WORKSHOP
ALMATYDecember 10th 2009
60
John A Clifford
Almaty, 10-11 December, 2009
PRESENTATION OUTLINE
61
• UNFC General Principles
• CRIRSCO – UNFC Alignment
• CRIRSCO and the Russian Code
Almaty, 10-11 December, 2009 62
UNFC GENERAL PRINCIPLES
Almaty, 10-11 December, 2009
CRIRSCO – UNFC – SPE
63
Range of Technical Uncertainty
RESERVES
PRODUCTION
PROSPECTIVERESOURCES
UNRECOVERABLE
UNRECOVERABLE
TOTA
L PE
TRO
LEU
M IN
ITIA
LLY-
IN-P
LAC
E (II
P)
DIS
CO
VE
RE
D I
IP
Su
b-C
om
me
rcia
lC
om
me
rcia
l
UN
DIS
CO
VE
RE
D I
IP
Incr
ea
sin
g C
om
me
rcia
l C
ert
ain
ty
Po
ten
tia
lly
Co
mm
erc
ial
CONTINGENTRESOURCES
ExplorationResults
Geo
logi
cal K
now
led
ge a
nd
Con
fid
ence
MineralResources
Probable
ProvedMeasured
Indicated
Inferred
MineralReserves
(the “modifying factors)
Separate butCross-referenced
Almaty, 10-11 December, 2009
UNFC (2009) - AXES
64
• The E axis designates the degree of favourability of social and economic conditions in establishing the commercial viability of the project, including consideration of market prices and relevant legal, regulatory, environmental and contractual conditions.
• The F axis designates the maturity of studies and commitments necessary to implement mining plans or development projects.
• The G axis designates the level of confidence in the geological knowledge and potential recoverability of the quantities.
E1
E2
E3
F1
F2
F3
F4
G1 G2 G3 G4
Geological Knowledge
Socio‐Econ
omic Viability
Project Feasibility
Almaty, 10-11 December, 2009
UNFC (2009) – “E” AXIS
65
• E1 = Extraction and sale has been
confirmed to be economically viable.
• E2 = Extraction and sale is expected
to become economically viable in
the foreseeable future.
• E3 = Extraction and sale is not
expected to become economically
viable in the foreseeable future or
evaluation is at too early a stage to
determine economic viability
E1
E2
E3
F1
F2
F3
F4
G1 G2 G3 G4
Geological Knowledge
Socio‐Econ
omic Viability
Project Feasibility
Almaty, 10-11 December, 2009
UNFC (2009) – “F” AXIS
66
• F1 = Feasibility of extraction by a defined
development project or mining operation
has been confirmed.
• F2 = Feasibility of extraction by a defined
development project or mining operation is
subject to further evaluation.
• F3 = Feasibility of extraction by a defined
development project or mining operation
cannot be evaluated due to limited
technical data.
• F4 = No development project or mining
operation has been identified.
E1
E2
E3
F1
F2
F3
F4
G1 G2 G3 G4
Geological Knowledge
Socio‐Econ
omic Viability
Project Feasibility
Almaty, 10-11 December, 2009
UNFC (2009) – “G” AXIS
67
• G1 = Quantities associated with a known
deposit that can be estimated with a high
level of confidence.
• G2 = Quantities associated with a known
deposit that can be estimated with a
moderate level of confidence.
• G3 = Quantities associated with a known
deposit that can be estimated with a low
level of confidence.
• G4 = Estimated quantities associated with
a potential deposit, based primarily on
indirect evidence.
E1
E2
E3
F1
F2
F3
F4
G1 G2 G3 G4
Geological Knowledge
Socio‐Econ
omic Viability
Project Feasibility
Almaty, 10-11 December, 2009 68
CRIRSCO – UNFC ALIGNMENT
Almaty, 10-11 December, 2009
UNFC (2009) – CRIRSCO “EXPLORATION RESULTS”
69
• Exploration Results include data and
information generated by exploration
programmes that may be of use to
investors but which may not be part of
a formal declaration of Mineral
Resources or Mineral Reserves.
• E3; F3; G4
• = 334
E1
E2
E3
F1
F2
F3
F4
G1 G2 G3 G4
Geological Knowledge
Socio‐Econ
omic Viability
Project Feasibility
Almaty, 10-11 December, 2009
UNFC (2009) – CRIRSCO “RESOURCES”
70
• A ‘Mineral Resource’ is a concentration
or occurrence of material of economic
interest in or on the Earth’s crust in such
form, quality and quantity that there are
reasonable prospects for eventual
economic extraction. The location,
quantity, grade, continuity and other
geological characteristics of a Mineral
Resource are known, estimated or
interpreted from specific geological
evidence, sampling and knowledge.
• UNFC (2009): E2 - F2 Axes
E1
E2
E3
F1
F2
F3
F4
G1 G2 G3 G4
Geological Knowledge
Socio‐Econ
omic Viability
Project Feasibility
Almaty, 10-11 December, 2009
UNFC – CRIRSCO INFERRED
71
• An ‘Inferred Mineral Resource’ is that part of a
Mineral Resource for which tonnage, grade
and mineral content can be estimated with a
low level of confidence. It is inferred from
geological evidence, sampling and assumed
but not verified geological and/or grade
continuity. It is based on information gathered
through appropriate techniques from locations
such as outcrops, trenches, pits, workings
and drill holes which is limited or of uncertain
quality and reliability.
• UNFC (2009): E2; F2; G3 = 223
E1
E2
E3
F1
F2
F3
F4
G1 G2 G3 G4
Geological Knowledge
Socio‐Econ
omic Viability
Project Feasibility
Almaty, 10-11 December, 2009
UNFC (2009) – CRIRSCO “INDICATED”
72
• An ‘Indicated Mineral Resource’ is that part of a
Mineral Resource for which tonnage, densities,
shape, physical characteristics, grade and
mineral content can be estimated with a
reasonable level of confidence. It is based on
exploration, sampling and testing information
gathered through appropriate techniques from
locations such as outcrops, trenches, pits,
workings and drill holes. The locations are too
widely or inappropriately spaced to confirm
geological and/or grade continuity but are spaced
closely enough for continuity to be assumed.
• UNFC (2009): E2; F2; G2 = 222
E1
E2
E3
F1
F2
F3
F4
G1 G2 G3 G4
Geological Knowledge
Socio‐Econ
omic Viability
Project Feasibility
Almaty, 10-11 December, 2009
UNFC (2009) – CRIRSCO “MEASURED”
73
• A ‘Measured Mineral Resource’ is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity.
• UNFC (2009): E2; F2; G1 = 221
E1
E2
E3
F1
F2
F3
F4
G1 G2 G3 G4
Geological Knowledge
Socio‐Econ
omic Viability
Project Feasibility
Almaty, 10-11 December, 2009
UNFC (2009) – CRIRSCO “RESERVES”
74
• A ‘Mineral Reserve’ is the economically mineable
part of a Measured and/or Indicated Mineral
Resource. It includes diluting materials and
allowances for losses, which may occur when the
material is mined. Appropriate assessments and
studies have been carried out, and include
consideration of and modification by realistically
assumed mining, metallurgical, economic,
marketing, legal, environmental, social and
governmental factors. These assessments
demonstrate at the time of reporting that
extraction could reasonably be justified.
• UNFC (2009): E1 – F1 Axes
E1
E2
E3
F1
F2
F3
F4
G1 G2 G3 G4
Geological Knowledge
Socio‐Econ
omic Viability
Project Feasibility
Almaty, 10-11 December, 2009
UNFC (2009) – CRIRSCO “PROBABLE”
75
• A ‘Probable Mineral Reserve’ is the economically mineable part of an Indicated, and in some circumstances, a Measured Mineral Resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Studies to at least Pre-Feasibility level will have been carried out, including consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. The results of the studies demonstrate at the time of reporting that extraction could reasonably be justified.
• UNFC (2009) = E1; F1; G2 = 112
E1
E2
E3
F1
F2
F3
F4
G1 G2 G3 G4
Geological Knowledge
Socio‐Econ
omic Viability
Project Feasibility
Almaty, 10-11 December, 2009
UNFC (2009) – CRIRSCO “PROVED”
76
• A ‘Proved Mineral Reserve’ is the economically
mineable part of a Measured Mineral Resource.
It includes diluting materials and allowances for
losses, which may occur when the material is
mined. Studies to at least Pre-Feasibility level
will have been carried out, including
consideration of, and modification by,
realistically assumed mining, metallurgical,
economic, marketing, legal, environmental,
social and governmental factors. These studies
demonstrate at the time of reporting that
extraction is justified.
• UNFC (2009): E1; F1; G1 = 111
E1
E2
E3
F1
F2
F3
F4
G1 G2 G3 G4
Geological Knowledge
Socio‐Econ
omic Viability
Project Feasibility
Almaty, 10-11 December, 2009
UNFC (2009) – CRIRSCO TEMPLATE
77
E1
E2
E3
F1
F2
F3
F4
G1 G2 G3 G4
Geological Knowledge
Socio‐Econ
omic Viability
Project Feasibility
334 = Exploration Results
221 = Measured Resources222 = Indicated Resources223 = Inferred Resources
111 = Proved Reserves112 = Probable Reserves
Almaty, 10-11 December, 2009 78
CRIRSCO AND THE RUSSIAN CODE
Almaty, 10-11 December, 2009
PROTOCOL OF 22ND OCTOBER 2008
79
Almaty, 10-11 December, 2009
CRIRSCO-GKZ MAPPING• Working Group established to:
– Develop a clear understanding of the two resource and reserve reporting
systems
– Agree a basis for mapping of the Russian classification to the CRIRSCO
Template
– Publish Conversion Guidelines: A Consultation Draft will be published shortly.
• Objective
– Development of a new Russian standard, aligned with the CRIRSCO
Template, for use internationally for market purposes - in parallel with the
existing Russian system for regulatory purposes
80