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’
www.csaglobal.com
➢ 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?
Introduction to JORC 617/3/2013
➢ 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?
Introduction to JORC 717/3/2013
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
www.csaglobal.com
• 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
Introduction to JORC 10
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?
Introduction to JORC 11
• 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
Introduction to JORC 1217/3/2013
✓Non-prescriptive and flexible
Features of the JORC Code 2
Introduction to JORC 1317/3/2013
✓ 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…
Introduction to JORC 1417/3/2013
Who is JORC?
Introduction to JORC 1517/3/2013
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
Introduction to JORC 1617/3/2013
Corp
ora
tions
Law
Principles balanced
Introduction to JORC 1721/5/17
CompetenceBased on work of
Competent
Person
MaterialityAll information
reasonably
Required & expected
TransparencyClear & unambiguous
presentation
JORCCompliant
Reports
Principles – need all
www.csaglobal.com
MA
TE
RI
AL
IT
Y
Transparency
Introduction to JORC 19
• Sufficient Information = but not too much
• clear unambiguous reporting = easy to
understand
• must not be misleading = a true picture
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
www.csaglobal.com
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
Introduction to JORC 2417/3/2013
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?
Introduction to JORC 2517/3/2013
• CRIRSCO family of codes
• Evolved from the JORC Code
Part of a global system
www.csaglobal.com
• 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
www.csaglobal.com
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
www.csaglobal.com
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?
www.csaglobal.com
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
www.csaglobal.com
• Distribution of porosity &
permeability
• Hydrogeological regime
• Lab tests of hydraulic properties
• Pumping & Infiltration tests
• Field tests of in situ hydraulic
properties
ISR U - Hydrogeology
www.csaglobal.com
• Stratigraphy, facies, continuity, faults
• grainsize, clay content,
• carbonates, organics
• Geometry/volumes
• Internal structure/boundaries
Resource Estimation
www.csaglobal.com
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?
www.csaglobal.com
❖ 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
www.csaglobal.com
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
www.csaglobal.com
Particular Requirements to consider
ISR and Mineral Resources
www.csaglobal.com
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
www.csaglobal.com
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
Introduction to JORC 3817/3/2013
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
www.csaglobal.com
For more information
please contact:
Follow Us On:
31/5/17 www.csaglobal.com
Graham Jeffress
Manager
Corporate Services
CSA Global Perth
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
www.csaglobal.com
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
www.csaglobal.com
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
www.csaglobal.com
Global Office Locations & Projects
www.csaglobal.com
Top Related