Mineral Resources and Reserves Classification for Reporting
Investments in mineral resources today require making many interconnected decisions quickly and clearly due to constantly changing conditions. The questions that remain after evaluations based on easily accessible reports and rumors are the biggest handicap for the process. Unlike their competitors, investors and professionals having a grasp of some basic elements provides an advantage in moving forward by seeing the big picture.
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1. What is Mineral Resource Classification? Why is it Necessary?
Bunlar, raporlarda ve beyanlarda sunulan maden kaynaklarının varlıklarına ilişkin, CRIRSCO şablonuyla oluşturulan kodlar kullanılarak ulusal veya bölgesel otoriteler (NRO) tarafından düzenlenen tanımlar ve standartlardır.
These standards ensure that the statements evaluated by investors, governments, and professionals for decisions related to mineral resources investments are transparent, reliable, and comparable.
2. How to Calculate Mineral Resources and Reserves?
Using all the drilling and sampling completed up to the reporting date, a solid model of the ore body (wireframe) is created or updated.
Within the solid model, a block model is created, and data on grade and other desired criteria are assigned to the blocks using appropriate estimation methods, along with their inclusion in the respective resource/reserve classification.
If there is ongoing operation, the digital terrain model (DTM) or underground offsets representing the excavated sections up to the reporting date are removed/depleted from the block model.
From the final block model obtained, tonnage and grade are calculated according to mineral resource classification and filled in standard tables for use in statements.
3. What is a Mineral Resource?
Mineral enrichments drilled and sampled enough to define their boundaries by modeling and have their tonnage and grade calculated at any stage of exploration activities are defined as resources.
It is not necessary to reveal all mineralization to create and calculate the resource model; statements can be made with sufficient data and sample amounts at any stage of exploration activities.
The distance between drillings or samples is the key element that determines the type of resource.
Maximum distances are determined by considering the origin, size, and commodity distribution within the mineralization. These distances are defined by a grid that divides the area over the longest 2 axes of the expected mineralization.
As exploration activities commence, the quantity of drillings and samples will inevitably rise. In later stages, the density of drillholes and samples between the initially acquired data will increase, reducing distances.
3.1. Inferred (ResCat3) Mineral Resources
The masses represented by the model, created using “drillholes and samples” evaluated together within maximum distance limits, are defined as inferred resources.
3.2. Indicated (ResCat2) Mineral Resources
Inferred resource zones with positive assets become “indicated resources” by infill drilling, dividing distance between existing drillings and samplings 2 or more times.
At this stage, if this part of the model, which is more reliable with dense data, constitutes an economic situation, a feasibility study for the start or a plan for ongoing operation can be made.
3.3. Measured (ResCat1) Mineral Resources
Zones within the indicated, where the commodity is interpreted to be homogeneously and regularly distributed or where more frequent drilling and sampling have been completed are “measured resources”, the most reliable category.
4. What is a Mineral Reserve?
If a feasible section worth mining is determined through feasibility studies on indicated resources with the necessary modifying factors, the resource can be defined as a reserve.
Modifying Factors are considerations used to convert Mineral Resources to Mineral Reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.
4.1. Probable (ResCat2) Mineral Reserves
If it is possible to conduct a feasibility study for the economic portion of the indicated resources or a continuation plan for ongoing operations, the term “probable reserve” can be used instead of resources.
4.2. Proved (ResCat1) Mineral Reserves
During the operation process, areas that have been clarified through grade control studies on upper and lower levels or through development drillholes gain the status of “proved reserves”.
5. What is the Difference Between Mineral Resources and Reserves?
In summary, you can start using the term reserve from the stage where you begin calculating the cut-off grade to operate your ore resources. It should also be noted that every reserve is a resource.
6. Important Notices
Statements that will inform the public, stock exchange institutions, and company boards under classification terms will be obtained from the sampling and model to be created by geoscience and mining professionals.
From the beginning of exploration activities, especially at the drillhole planning stage, the involvement of resource geologists in the process will facilitate the transition to reporting, notification, and production stages.
All tables and data provided for notification purposes are interpretations of professionals.
The compliance and consistency of the presented data with the standards are audited by the codes published and updated by the reporting organization (NRO) to which the professionals are accountable.
In cases where false statements are made in violation of the codes and outside of ethical values, relevant reporting organizations can impose various sanctions, up to the cancellation of the professional’s membership.
Data acquisition methods and statements related to the quantity of resources and reserves, subject headings, and classification terms/definitions used should be clear and accurate, and understandable even to those who are not experts in the subject.
In this video presentation, generalized information is provided to ensure that those interested in mining, investors, and professionals gain basic knowledge about the terms frequently encountered in reports and publications. Each project is subject to many variables in its specifics, so be sure to consult experts before making a decision.
Subjects discussed in this article may overlap with your mineral exploration, modeling, mining operation and business development issues and may provide solutions for those. However, remember that various factors specific to your business may bring about different challenges. Therefore, seek support from expert consultants to evaluate all data together in order to convert potential into profit most efficiently.
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