Professional Documents
Culture Documents
Disclaimer
Peter Stoker is Chairman of the Joint Ore Reserves Committee
(JORC) Peter is also a member of CRIRSCO (Committee for
Mineral Reserves International Reporting Standards).
A strategic partner of
ICMM
International Council
On Mining and Metals
Outline
How the JORC came about
Its significance - ASX Listing Rules, ASICs view,
professional bodies
Key definitions: Mineral Resources, Ore Reserves and
Competent Persons and what they mean
Implications for resources companies - listed and unlisted
JORC Competent Persons and competency / attribution
statements
Some reporting examples
The relevance of JORC estimations to legal practitioners,
principally with respect to disclosure obligations on listed
resources companies - presented by David Holland & Guy
Sanderson, Partners, Baker & McKenzie.
Perth WA
On
Length
in feet
25
90
30
40
Ni %
Cu % Type of Ore
0.4
1.53
1.6
3.56
0.1
0.25
0.4
0.55
Leached Ore
Oxide
Disseminated Sulphides
Massive Sulphides
Leading to
The request from Melbourne Stock Exchange and
Federal Government (Rae Commission) to AMIC
(Minerals Council of Australia) to develop a
mechanism to resolve the reporting issues.
AMIC responded and AusIMM joined promptly
JORC.
JORC
The Joint Ore Reserves Committee (JORC).
JORC the Committee.
The JORC Code the Code developed by JORC
(the committee). First Code 1989.
Code updated regularly since then.
The 2004
JORC Code
READ THE
CODE!!!!
12
Corporations
Law
16
Professional Bodies
Australasian Code for the Reporting of Exploration Results,
Mineral Resources and Ore Reserves (The JORC Code)
prepared by the Joint Committee of The Australasian Institute of
Mining and Metallurgy, the Australian Institute of Geoscientists
and the Minerals Council of Australia (JORC)
So JORCs parents include two professional bodies and an
industry group. Both the professional bodies require
observance of the Code where it is applicable and failure to
observe the Code is a breach of the Code of Ethics of these
bodies
24 Recognised Overseas Professional Bodies (ROPOs) have
agreed to enforce the Code.
The professional bodies require a complaint to act against a
Competent Person.
17
Materiality
Transparency
clear unambiguous
presentation
JORC
Code
Competence
Based on work
by Competent Person
all reasonable
information
expected
Indicated
Continuity is
important
Measured
Continuity is
between not
around
Inferred Resources
Indicated
Resources
Measured Resources
Modifying Factors
The term Modifying Factors is defined to include:
Mining
Metallurgical
Economic
Marketing
Legal
Environmental
Social
Governmental considerations
Probable
Reserve
Proved
Reserve
What is a Competent
Person?
10. A Competent Person
is a person who is a Member or
Fellow of The Australasian Institute of Mining and Metallurgy, or
of the Australian Institute of Geoscientists, or of a Recognised
Overseas Professional Organisation (ROPO) included in a list
promulgated from time to time.
A Competent Person must have a minimum of five years
experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which
that person is undertaking.
If the Competent Person is preparing a report on Exploration
Results, the relevant experience must be in exploration. If the
Competent Person is estimating, or supervising the estimation of
Mineral Resources, the relevant experience must be in the
estimation, assessment and evaluation of Mineral Resources. If
the Competent Person is estimating, or supervising the
estimation of Ore Reserves, the relevant experience must be in
the estimation, assessment, evaluation and economic extraction
of Ore Reserves.
30
Am I a Competent Person?
There is no register of Competent Persons it is a system of
self declaration.
The questions for the individual are:
Do I belong to an appropriate professional organisation?
(appropriate membership of the AusIMM, AIG or a ROPO)
Am I a Competent Person?
And on the question of relevant experience the
question for the individual is:
Am I satisfied in that I could face my peers and
demonstrate competence (that is possess the
required relevant experience) in the commodity,
type of deposit and activity under consideration?
If doubt exists, the person should either seek
opinions from appropriately experienced colleagues
or should decline to act as a Competent Person.
Has been common to undertake such peer reviews
within companies.
32
Sinovus and
Sino Coal
The conditions of ASX
Companies Update 11/07
are based on the
materiality and
transparency principles
of the JORC Code
Note that ASX generally
only provide the waiver
for a single disclosure, as
it is not generally
possible for a Competent
Person to take
responsibility for an
estimate immediately
41
OCallaghans comments
This report covers the material information
that is necessary for an investor or their
professional advisor to make a reasoned
and balanced judgement regarding the new
release of a mineral resource estimate for
the OCallaghans tungsten deposit:
geology
estimation technique
reconciliation with previous estimate.
Statement that
Ore Reserves are
a subset of the
Mineral
Resources
Location of
more detailed
information in the
Supplementary
Information
ICMM
International Council
On Mining and Metals
Quote from draft: 2.66: The project team recommends that the
CRIRSCO Template and PRMS definitions of reserves and resources
are suitable for use in a future IFRS for extractive activities....
CRIRSCO in cooperation with GKZ is preparing a draft conversion
from the Russian classification system into the CRIRSCO
classification.
ICMM
International Council
On Mining and Metals
Acknowledgements
To my JORC & CRIRSCO colleagues for assistance and
support and some of the slides and JORC parents which are:
Preparing this
talk and
attending this
seminar was
supported by :
JORC Seminar
Supplementary Slides
Public Reports
There are examples of reports that may not
appear to be in accordance with the JORC Code
They should do something is the cry
But who is they and how do we know if they are
doing something?
The most important
they is you.
First Stage
A tidying up of the 2004 JORC Code to incorporate
appropriate matters from recent ASX Companies Updates
05/04, 03/07 and 03/08, but not 11/07 which deals with
historical and foreign estimates, which is outside the current
operation of The JORC Code
Several other minor inconsistencies will be rectified at the
same time.
Exposure draft to be issued for comment, expected in this
year, with a request comments be restricted to the matters
amended. This version will be the 2004 JORC Code
amended 2010, which will probably be issued later in the year
after approval by the parent bodies, ASX and ASIC.
JORC does not envisage any material changes in this first
stage.
64
Second Stage
Immediately following the finalisation of the first
stage, JORC will call for public submissions on
matters relating to the JORC Code.
JORC would also expect to consider matters arising
from recent revisions to other international Codes
(SAMREC 2007, PERC 2009 and the SME Guide
2007), as well as matters resulting from the current
review of Canadian NI 43-101.
JORC has established a number of sub-committees
to undertake the initial review, and is facilitating the
reconvening of the Coal Guidelines committee.
65