reporting isr projects in accordance with the jorc code · 2019. 11. 21. · • registered...

Reporting ISR Projects

in accordance with

the JORC Codewww.csaglobal.com

Graham Jeffress

• Geologist with over 25 years experience in exploration,

resource definition, and public reporting of Exploration

Results and Mineral Resources, Independent Geologist’s Reports and Valuation under the VAMIN Code.

• Work for large mining corporations, junior explorers,

private companies, government, and in consulting

• Registered Professional Geoscientist

• Former Director, Secretary, Treasurer, JORC liaison of the

Australian Institute of Geoscientists (AIG), a JORC parent

body for 11 years

• Joint Ore Reserves Committee executive since May 2014

• Currently Principal Consultant & Manager-Corporate at

CSA Global

Your Presenter

21/5/17 www.csaglobal.com

ICMMInternational

Council on Mining

and Metals

While Graham Jeffress is a member of JORC, any

comments and views presented are his own and

should not be taken as necessarily representing

those of the full JOR committee.

Disclaimer

Introduction to JORC 317/3/2013

The Mining ‘pipeline’

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➢ Mining comprises a complex series of events

➢ Information from these different steps needs to be communicated

1. Disclosure for companies listed on

securities exchanges

– information for (potential) investors

Public Reporting – Purposes

2. Governmental, inter-governmental,

or NGO reporting of mineral

resource estimates and forecasts

– Understanding inventory to underpin

minerals policies,

– attract inward investment and

exploration activity

ANY report or briefing to inform (potential)

investors about RRR

includes, but is not limited to:

– Annual and Quarterly company reports

– Media releases

– Information Memoranda

– Technical papers

– Website postings

– public presentations, incl. PowerPoints

– Expert Reports and Valuations

– Environmental Reports

What is a Public Report?


➢ Minimum standards for public

reporting

➢ Classification of tonnage/grade

estimates

➢ Describes who can report

✓competent person

➢ Provides guidance on how

What is a Reporting Code?


1909 - Herbert Hoover’s classification system1943 - USBM classification system

1953 - AusIMM committee on classification

1956 - SEG classification system

Late 1960’s - nickel boom, Australia, with

unacceptable reporting practices

Key Developments Before JORC

Introduction to JORC 8

The Poseidon

Boom

& Bust !!

History of the JORC Code

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• 1971 JORC formed by Aust Mining

Industry Council; joined by AusIMM

• 1971-1985 JORC guidelines on

classification /reporting developed

• 1989 – first edition of JORC Code into

ASX Listing Rules

• 1992 – second edition of JORC Code

o AIG joins

• 1996 – third edition of JORC Code

• 1999 – fourth edition of JORC Code

• 2004 – fifth edition of JORC Code (ER)

• 2012 – sixth edition of JORC Code (T1)

JORC Code + ASX Listing Rules &

Guidance note 31=Public Reporting

that meets all requirements

JORC Stakeholders


Resource &

Reserve

Estimators

Mining

Company

Management

Investment

Community

Financing

Community

&

Capital Market

Regulations

• The JORC Code is about the reporting of

Exploration Results, Resources & Reserves

• About reporting — not how to estimate resources

& reserves, or collect samples

What is the JORC Code?


• Based on the concept of the Competent Person

• Designed with the investor in mind

• Part of a World process (constantly improving)

Features of the JORC Code


http://www.google.com.au/url?sa=i&rct=j&q=geologist&source=images&cd=&cad=rja&docid=iQRAU8i3heqFCM&tbnid=z5lxcCxH1J9HMM:&ved=0CAUQjRw&url=http://www-odp.tamu.edu/public/life/190/week6.html&ei=l0FDUcuCHsbokAXKx4Fw&bvm=bv.43828540,d.aGc&psig=AFQjCNFWgtt3SdoDFP2MMvv16khU4qr4wQ&ust=1363448461247871

✓Non-prescriptive and flexible

Features of the JORC Code 2


✓ Simplicity

✓ Regulatory Backing

➢ DOES NOT regulate the procedures used by

Competent Persons to estimate and classify

Mineral Resources and Ore Reserves

➢ DOES NOT regulate companies’ internal

classification or reporting systems

➢ DOES NOT deal with breaches of the Code:➢ By companies these are dealt with by the ASX

➢ By individuals these are dealt with under codes

of ethics of AIG and AusIMM or the relevant RPO

➢ The JORC Code is for public reports

The JORC Code DOES NOT…


Who is JORC?


Mineral industry

lobby groups

Mineral industry professional bodies

AusIMM AIG MCAFunding

bodies

MCA: Mineral Council of Australia

SIA: Securities Institute of Australia

ASX: Australian Stock Exchange

J

O

R

C

M

E

M

B

E

R

S

Others ASXSIAAMEC

Australian Reporting Environment

JORC is part of a bigger picture


Corp

ora

tions

Law

Principles balanced


CompetenceBased on work of

Competent

Person

MaterialityAll information

reasonably

Required & expected

TransparencyClear & unambiguous

presentation

JORCCompliant

Reports

Principles – need all

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MA

TE

RI

AL

IT

Y

Transparency


• Sufficient Information = but not too much

• clear unambiguous reporting = easy to

understand

• must not be misleading = a true picture

https://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&ved=0CAcQjRxqFQoTCJLd5o33-MgCFaeepgodhswAxA&url=https://www.linkedin.com/pulse/transparency-defined-marketers-agencies-will-greenwood&psig=AFQjCNEaL7dyP22yNInD4CobZNKTJlQEgA&ust=1446800791336170

Materiality

20

versus

Small Company Large Company

• Will the news affect the share price?

• Will it be a long term asset?

• How prominent is the project on the website or annual report

• How much is the company spending on the project?

1. Membership of a professional body

– Pre-requisite only = does not make you competent

2. Relevant Experience,

– > 5 years

3. Responsible for the report

– shared with board

4. Accountable for the content

– Answerable to peers

Competence

21

▪Institute of Materials, Minerals and Mining

▪Geological Society of London

▪Institute of Geologists of Ireland

▪European Geologist (EurGeol) members of the European Federation of Geologists

▪Mining and Metallurgical Society of America

▪American Institute of Professional Geologists

▪SME Registered Member of the Society of Mining, Metallurgy and Exploration Inc.

▪Engineering Council of South Africa

▪South African Council for Natural Scientific Professions

▪Geological Society of South Africa

▪South African Institute of Mining and Metallurgy

▪South African Council for Professional and Technical Surveyors

▪Professional Engineers Ontario

▪Association of Professional Engineers and Geoscientists of British Columbia

▪Association of Professional Engineers and Geoscientists of Manitoba

▪Association of Professional Geoscientists of Ontario

▪Association of Professional Engineers and Geoscientists of Newfoundland

▪Association of Professional Engineers, Geologists and Geophysicists of the Northwest Territories

▪Association of Professional Geoscientists of Nova Scotia

▪Association of Professional Engineers and Geoscientists of New Brunswick

▪Association of Professional Engineers, Geologists and Geophysicists of Alberta

▪Association of Professional Engineers and Geoscientists of Saskatchewan

▪Ordre des Geologues du Québec

▪Ordre des Ingénieurs du Québec

▪Comisión Calificadora de Competencias en Recursos y Reservas Mineras

▪Russian society of Subsoil Use Experts (OERN)

CPs = RPOs

22

UK and Europe

USA

South Africa

Canada

Chile

Russia

One of the key aspects of reporting under the JORC Code

❖ The JORC Code provides a mandatory system for classification of tonnage/grade estimates

❖ Based on

➢ geological confidence (MINERAL RESOURCES)

➢ technical/economic considerations (ORE RESERVES).

❖ Allows the Competent Person to communicate his confidence in the estimate.

❖ The system is summarized in Figure 1 of the code

Classification

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Tool for transparency/materiality

• is a guide

• Covers key questions

• ‘if not, why not’• Can’t ignore something

important just because it is

not specifically mentioned

in Table 1

• BUT CP should add more if

required

Key concepts: Table 1


Section

1

Sampling Techniques

and Data

Section

2

Reporting of

Exploration Results

Section

3

Estimation and

Reporting of Mineral

Resources

Section

4

Estimation and

Reporting of Ore

Reserves

Section

5

Estimation and

Reporting of Diamonds

and Other Gemstones

Main Reasons for Success of JORC Code

• Code was developed by industry and

adopted by regulatory authorities

• Code has been incorporated into ASX

and NZX listing rules

• Competent Persons can be brought to

account

• JORC is a permanent and diverse

committee

• Constant communications with

industry and regulatory authorities

Why does it work?


• CRIRSCO family of codes

• Evolved from the JORC Code

Part of a global system

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• Best practice

• Practical

• Useable

• Accepted by

industry

• Sample representivity: sample size/interval

selection

• Selection of measurement tools: PFN, gamma,

chemistry

• QA/QC• Calibration of tools = standards

• Repeat runs =bismuth 214

• duplicates

• Reconciliation against core analysis

• Understand what you are sampling and how this

relates to the economic mineral: 214Bi 214 235U

• Radiological complexity – radon, disequilibrium

ISR U – Data Collection: Samples

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Critical questions

✓Hydrogeological setting – confined aquifer or below

watertable

Permeability – hydraulic conductivity and anisotropy

Can the target mineral be leached?

Is the target mineral exposed in cracks or pores?

Are there gangue minerals that will neutralise the

lixiviant?

Suitability for ISR

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Prospects for eventual economic extraction is a key concept

Prospects for eventual economic extraction is a key concept

• Depth : <700m best, <150m most favourable

• Morphology : tabular sheets >> steep plunging shoots

• Thickness : 10m great, <2m unfavourable

• Grade : low-moderate > high grade

• Distribution: homogeneous > uneven

• Size mineral grains: fine/dispersed > coarse crystals

• Chemistry: oxidised/secondary > reduced/primary

Will it be economic?

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GT is

critical

Questions for the Competent Person

✓ Gamma eU probably acceptable

for Inferred estimates

✓ But for higher categories do you

need more?

✓ Can you get a PFN/KND tool?

✓ How are you measuring

hydrogeological parameters?

✓ Inferring from resistivity and

correlation with grainsize

estimates or direct measurement

by NMR

Wireline tools for ISR U

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• Distribution of porosity &

permeability

• Hydrogeological regime

• Lab tests of hydraulic properties

• Pumping & Infiltration tests

• Field tests of in situ hydraulic

properties

ISR U - Hydrogeology

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• Stratigraphy, facies, continuity, faults

• grainsize, clay content,

• carbonates, organics

• Geometry/volumes

• Internal structure/boundaries

Resource Estimation

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Controls on mineralisation / Interpretation of geology

• Model mineralisation and select cut-

offs using grade-thickness product

NOT just grade distribution

• Model lithology not just mineralisation

What do I need for a Resource?

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❖ Metallurgical characterisation is particularly pertinent

to Uranium

❖ Confirmation of the mineralogy, associations (e.g. acid

consumers) and test the amenability to the chosen process

and hence the recovery

❖ Mining design and recovery leading to cost/revenue

assumption are equally critical

❖ These will depend on the physical properties of the rock -

the assumptions should be tested.

Modifying Factors

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Market – including the political overlay

➢ you may have a great in situ deposit

➢ but if the government will not let you develop it - is

it a Mineral Resource?

➢ The lack of Government approval would not allow

demonstration “at the time of reporting that

extraction could reasonably be justified”.

Modifying Factors contd

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Particular Requirements to consider

ISR and Mineral Resources

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Stage Minimum Recommended

Exploration Results &

Exploration Target Range

Geology amenable to ISR

Favourable criteria present

Plus single hydrogeological

well, and/or lab tests

Inferred Resources

General Lithological model

Mineralisation model

Mineralogy, grainsizes

At least1 hydrogeol well

Plus laboratory leaching

tests

Indicated & Measured

Resources

Detailed 3D model of

mineralisation and

lithologies

Cluster hydrogeological

tests

Detailed mineralogical &

granulometric analysis

Laboratory leach testing

Permeability model;

Push-pull or two well in

situ leaching test

Seredkin, Zabolotsky & Jeffress, 2016 OGR 79, pp 500-514

Particular Requirements to consider

ISR and mining studies

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Stage Minimum Recommended

Scoping Study

Conceptual/Order of

Magnitude

Lab. Tests of different

lixiviant options

Recovery from pregnant

solutions must be shown

Hydrodynamic modelling

Plus push-pill or two-

well in situ leaching tests

Without processing of

pregnant solutions

Pre-feasibility Study

Preliminary/Approximate

Push-pull or two well in

situ test without

processing of pregnant

solutions

Lab extraction of metals

from preg solutions

Multiple wells for in situ

leach tests

Feasibility

Definitive/detailed

Multiple wells, with in situ leaching tests;

processing of pregnant solutions

Transition to pilot mining

Seredkin, Zabolotsky & Jeffress, 2016 OGR 79, pp 500-514

➢ JORC is a committee

➢ JORC Code is for public reporting of exploration results, mineral resources and ore reserves

➢ such reporting is to keep financial investment markets continuously and adequately informed

➢ A confident investing public with trust in the system will invest more

➢ It does not tell you how to estimate resources and reserves

➢ Careful use of nomenclature is required by the Code

➢ Mineral resources and ore reserves estimates are not fixed or “correct” ― they vary in response to economic, technical and government factors

➢ Exploration Results have great potential to affect company values and require careful reporting to maintain confidence

Summary of the JORC Code


JORC is very flexible and accommodating

• It is a great tool to help communicate news about

Exploration results, Mineral Resources and Ore

Reserves

• The consistent framework and risks are well

understood by investors

• But it relies on a Competent Person understanding

what they are doing and disclosing the right info.

• The idiosyncrasies of ISR are no greater than other

commodities/mining methods

• Be transparent about material information

Wrap up

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For more information

please contact:

Follow Us On:

31/5/17 www.csaglobal.com

Graham Jeffress

Manager

Corporate Services

CSA Global Perth

https://www.facebook.com/CSA-Global-150999914987957/timeline

https://twitter.com/CSAGlobal

https://www.linkedin.com/company/csa-global?trk=biz-companies-cym

CSA Global is a leading geological, mining and management consulting company

which provides high quality solutions to our clients in the global minerals industry.

Our staff include geologists, mining engineers, project managers, data management

professionals and technical personnel.

• 30 Year History

• >100 Employees

• Global Experience

• Global Presence

• Full Project Capability

• Exploration to production technical services.

• Project reviews, program design & management.

• Operational audits and improvement strategies.

• Code compliant reports e.g. JORC, NI 43-101, etc.

• Mineral Resource and Ore Reserve estimation.

• Concept to feasibility studies.

• Gap analysis, fatal flaw studies & due diligence.

• Expert reports, valuations & specialist advice.

About CSA Global

www.csaglobal.com

• EXPLORATION

• RESOURCES

• MINING

• DATA

• CORPORATE

We have broad technical expertise and experience which covers most mineral

commodities, geological terranes, deposit types and mining methods. Our team of

specialists are leaders in their respective fields and experienced in all stages of the

mining cycle from project generation to production and mine closure.

Our Services

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1984 : CSA Group was founded in Ireland.

1986 : Australian branch setup in Perth, later incorporated as CSA Australia.

2000 : Diversification strategy begins (commodities, services, regions).

2006 : Acquisition of Finore P/L, CSA Consulting International established.

2008 : CSA brand purchased from CSA Group. CSA Australia renamed as CSA Global to

reflect growth and expansion plans. CSA Global UK office opened.

2009 : Additional Australian branch office opened in Darwin, Northern Territory.

2010 : Indonesian office opened, new headquarters in West Perth, Western Australia.

2011 : Third Australia branch office opened in Brisbane, Queensland.

2012 : Opened an office in Johannesburg, South Africa and a branch office in South

Australia. Acquired Revelation Geoscience Ltd in Vancouver, Canada.

2013 : Established CSA Global Rus in Moscow to service the CIS region.

2014 : CSA Global Singapore office established.

Our History

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Global Office Locations & Projects

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reporting isr projects in accordance with the jorc code · 2019. 11. 21. · • registered...

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