Competent Person

Novice

Competent Person

Novice

Competent Person?

Competent Persons

A Competent Person is …

A mining industry professional

who has a mature ability to reason across the JORC Code*,

can provide a reasoned analysis of the risks in a project

and is able to communicate the material risks (without exclusion)

to their peers, management, the board of directors and investors

(*including all respective items in Table 1)

Competent Persons

Competent Persons

Person ability score

Question difficulty score

Question references – aligned with difficulty scores

Scores scaled toLogits

Item

DifficultyReasoning Level Description

> 1.0High Order Mining

Reasoning

High order consideration

of mining context and

estimation purpose

0.3 to

1.0

Mining Context

Reasoning

Connection of process to

mining context

-1.0 to

0.3Process Reasoning

Lower level linking of task

to process

< -1.0Foundation

Reasoning

The basics preparation

knowledge in resource

estimation

Item

DifficultyReasoning Level Description

> 1.0High Order Mining

Reasoning

High order consideration

of mining context and

estimation purpose

0.3 to

1.0

Mining Context

Reasoning

Connection of process to

mining context

-1.0 to

0.3Process Reasoning

Lower level linking of task

to process

< -1.0Foundation

Reasoning

The basics preparation

knowledge in resource

estimation

Higher JORC Code Reasoning in line with experts’ expectations

Lower/emergingJORC Code Reasoning levels

JORC Code Competence

“Competence requires that the Public Report be based on work that is the responsibility of suitably qualified and experienced persons who are subject to an enforceable professional code of ethics.”

• Minimum 5 years of relevant experience• Member of recognised professional body

• Confident to defend an estimate among peers

I am sufficiently competent to report

under JORC Code Guidelines

Experience in years …

Statistic

Minimum 5 years’ Mining Industry

Experience

Minimum 5 years Estimation

Experience

T-Value -1.25 -2.18

p-Value 0.218 0.008

Significance at 95%

Confidence Level Not Significantly Different Significantly Different

Minimum of 5 years’ Resource Estimation experience increases JORC Code Reasoning levels

Mining Industry Experience ~ 10 years

Level

T-Value -2.70

P-Value 0.010* *p-value < 0.05 so is significantly different from zero

Less than a minimum of 10 years’ mining industry experience Is associated with lower levels of JORC Code Reasoning levels

Membership of Professional Institute

Statistic Membership

T-Value -1.21

p-Value 0.232

Significance at 95%

Confidence Level Not Significantly Different

Membership grade (Fellow or not)

Statistic Fellow Member

T-Value 1.81

p-Value 0.078

Significance at 95%

Confidence Level Not Significantly Different

Chartered Professional Status

Statistic Chartered Professional

T-Value 0.42

p-Value 0.676

Significance at 95%

Confidence Level Not Significantly Different

Self Assessment

Level

T-Value 5.42

P-Value 0.000* *p-value < 0.05 so is significantly different from zero

Resource Geologists tend to over-estimate their own competency

1.Number of resource estimates generated

2.Number of commodities estimated

3.Number of reconciliation studies

4.Number of commodities for which reconciliation studies have been conducted

21

Resource Geologists who have conducted fewer than 15 models have not yet developed sufficient requisite JORC Code reasoning levels.

Resource Geologists who have generated estimates on across fewer than 2 commodities not yet developed sufficient requisite JORC Code reasoning levels.

Resource Geologists who have conducted fewer than 5 reconciliations on their own estimates not yet developed sufficient requisite JORC Code reasoning levels.

Basis for “15-2-5” Criteria

Combined Alternative Minimum Criteria

“15-2-5” Criteria

Combined Alternative Minimum “15-2-5” Criteria

Level

T-Value 3.66

P-Value 0.001* *p-value < 0.05 so is significantly different from zero

Resource geologists who do not meet the minimum ‘15-2-5’ criteria, and who do not have at least 10 years’ mining industry experience and at least 5 years’ resource estimation experience, will not have developed sufficient JORC Code reasoning levels.

Competent Person

Novice

Sustained practical application that includes learning from

consequences of corrected errors over sufficient duration

Mineral Resource Reporting:15-2-5 criteria

10 years’ mining industry experience5 years’ resource estimation experience

Competent Person

Novice Experiences

15-2-5 Criteria NOT met 15-2-5 Criteria met

Competent Person

Novice Experiences

Hig

h JO

RC C

ode

Reas

onin

g

JORC

Cod

e Re

ason

ing

15-2-5 Criteria NOT met 15-2-5 Criteria met

JORC

Cod

e Re

ason

ing

deve

lopi

ngWhat is the difference in Competency

Development?

Competent Person

Novice Experiences

Hig

h JO

RC C

ode

Reas

onin

g

JORC

Cod

e Re

ason

ing

15-2-5 Criteria NOT met 15-2-5 Criteria met

JORC

Cod

e Re

ason

ing

deve

lopi

ng

Scientific reasoning/thinkingAt least one semester maths/stats

On site production experience (reconciliation)Stint duration sufficient to “learn from the consequences of corrected mistakes”Several geological styles/scenarios

Peer group learning networkHigh level of technical mentoringCourses timed with onsite supported application

Competency Development Model

The JORC System

Four Vulnerabilities JORC system

Four Vulnerabilities JORC system

Sanctioning Process

Key contributions to today’s workshop

Thank you to: • Contributors (anonymous and known) to the research

and their organisations who allowed them time to participate

• JORC, AIG and AusIMM for their ongoing interest and engagement

• Industry peers and friends for their encouragement

• PhD supervisors• Dr Peter Lilly • Dr Llandis Barratt-Pugh