Frequently Asked Questions About Mining and Exploration

1. What is the Resource? What is Reserve?

"Resource" is the total commodity, mineralization, that has been discovered and will be discovered as exploration activities increase. It is a commodity "reserve" that has been discovered in the resource and has a reliability above a certain level. For more information, you can review the reserve reporting codes.

2. What are JORC and NI 43-101? What are they for?

These are the reporting standards used to explain the results obtained in mineral exploration activities, resource and reserve status. Relevant institutions in Australia (JORC), Canada (NI 43-101), Turkey (UMREK), and other mining countries control the presentation of these data, which are open to interpretation, with regulations in order to ensure that investors are informed accurately and objectively.

3. Why are JORC, NI 43-101, UMREK and similar reporting important?

These are reports prepared by experts who are affiliated with reputable professional institutions and subject to sanctions by the institutions, and written by observing the standards set by the institutions. Those who signed the report are responsible for the reliability of what they state on their subjects.

4. What is Ore? Is every enrichment an ore? What is the limit?

We can define it as a "rock" that is valuable to you. Although theoretically it is not economical, any mineral enrichment can be mineralization. The limit is whether it can reach the economic level that will give you what you want based on the "prices you calculated". Do not be surprised when "ore" is written about very low grade enrichments in reports, question it, it may reach economic value in the near future.

5. Can geologists at all levels use 3D computer-aided design programs?

Yes they can use it, should learn it and use it. Young people are already doing much more complicated things, whether on social media or in FPS games. It is not a privilege in today's conditions. Provide training support to your staff and demand results.

6. What is the “Ore Model”? Why is it necessary to do it?

The model is the 3D image of the real thing in the digital environment you want. In both the exploration and production phases, you will have more control over writing cross-sectional and field data than just working in 2 dimensions. Also, the decision is not left to one person, you involve the whole team. You will have analytical data about what we have in terms of ore and you can better follow the production stages from start to finish.

7. What does geostatistics do? How to use?

It is used to pinpoint the large masses that remain between the drillings and other samples you make at certain distances. This prediction consists of mathematical functions and there are various types, the geologist's interpretation is essential. Even though the work is done on the computer, you need to follow a path in all steps, from your drilling plans to using the sample results.

8. What actually is the so-called “Nugget Effect”?

This phrase, which is sometimes used when talking about the high-grade parts of gold mineralizations and sometimes when visible gold grains are seen, is essentially a term in statistics. It is the value on the variogram axis at the point where the distance is minimum (0) on the variogram chart. It is simply randomness in a narrow area, which can also be described as noise. The suddenly rising grade value in nature may cause a nugget effect in that region.

9. I want to sell my property / licence, what technical elements can I put forward that would make it easier?

You should keep the coordinates, photographs and sample results of all important points, outcrops, samples in the field in a way that leaves no room for doubt. If you have drilled, you should leave the core samples in the boxes as a witness during the sampling and the meter, run wedge, case number, etc. in the boxes. All elements must be stored in a suitable environment without being erased or moved in the safe, and photographs must be of a certain standard and clear before sampling.

10. Why is geology now more important in mineral exploration?

The discovery of mineralizations that are partially visible on the surface has been made for thousands of years. Detection of mineralizations waiting underground requires geological knowledge and experience provided by science. Now, if riskier exploration projects are involved, it is geology's job to go for the best possibilities and narrow down the target area.

11. How should geophysics be used in the mineral exploration process?

After geological mapping and alteration mapping or, in the worst case scenario, determining the direction of a mineralization extension, geophysical lines and planar details should be designed to cut perpendicularly to this direction. The geologist should decide on the next stage, drilling planning, by examining all geological and geophysical data in 3 dimensions.

12. Can remote sensing application be tried for every mineralization type?

The remote sensing method is a method that can be used in the strategy phase of the exploration phase to be carried out on a "very large scale". Although it is possible to work in detail from time to time, the area must be quite barren flora so that the signal recovery will provide you with a healthy contrast. If you do not expect signs of mineralization near the surface or at the surface, do not expect remote sensing to be beneficial.

13. Are coreyards(or core shacks, etc.) really that important?

You must "meticulously" perform all the data you can get from the drilling process, which is the largest of your exploration and development expense items, by eliminating the possibility of "neglect". Any detail you miss while examining the drill cores will cause you not to see great opportunities, the range you sample incorrectly will affect all your calculations related to the investment decision and business. When you want to sell your project, the first thing to look at will be the cores of the drillings you have made. Even a few simple reasons point to the need for your core drilling facility to be meticulous.

14. “Spreadsheet” and data processing… Was “Excel” that valuable?

Mining is technically carried out with data assigned to the point registered in the coordinate system. This sometimes means that even a single project contains millions of cell data. Currently, the MS Office package is available on every computer, Excel is the easiest application to use these cells and has a wide support potential on the internet. With so much data, it is inevitable to analyze your data with formulas (functions) and macros, because geology loves to use relativity.

15. What is corporate governance? Is it costly? Is it worth the effort?

The organization is a conceptual entity created by people with established principles. If you wish to embellish it, it can become costly. However, if you lay out your objectives, principles, and procedures, you become corporate, and individual emotional states will have less influence on decision-making during the project's progress. For example, after your work in the project, you decided on five drillings based on your procedures. After receiving negative results from the fourth drilling, you decided not to proceed with the fifth one. What would have changed if the fifth drilling had been done? Well, who knows...

16. What is the purpose of quality management systems and documentation? How do they benefit us?

Knowing that the tasks are composed and recorded step by step in a system makes employees clearly aware of their responsibilities. As a result, it helps prevent unnecessary initiatives and reduces the likelihood of negligence, work fatigue, and accidents. Additionally, it serves as an excellent guide for new or transitioning personnel taking over the work.

17. Is there any advantage to working on a server (network) system?

The most important "work" done by personnel is the data they obtain, interpret, discover, and record. Acquiring geological data sometimes requires traveling thousands of kilometers or climbing unexplored mountains. Data recorded on a server, backed up, and accessible for collaboration by everyone involved will facilitate teamwork and reduce dependence on individuals, improving work quality. If proper care isn’t given to the data, you may have to travel that same road again or climb that mountain, possibly in the snow, to retrieve it.

18. What is the importance of employee training, and what is the Dunning-Kruger Effect?

The Dunning-Kruger Effect can be defined as when an employee with insufficient skills overestimates their abilities. It’s something everyone might experience at certain points in life. By interacting with newer and better approaches, the employee may realize their limitations and work on improving themselves. Ways to foster such interaction include training, attending trade fairs, symposiums, and inter-company exchanges, all of which help engage with external perspectives.

19. Does "cost reduction" work for every type of mining operation?

Cost reduction might not work for every type of mining operation. Mining is a process that evolves with experience. If your operations are not on a large scale and you have known your mineralization for a long time, you may have already achieved the most economical levels with your acquired experience.

20. Is it impossible to acquire a "profitable mining license" from now on?

You can still find a good one. If current metal prices increase significantly, many deposits with lower quality or grade can become economically viable. The key issue is how long you can hold the exploration license. Additionally, even if a site doesn’t show surface indications, you can conduct relatively risky tests using geological indicators.

21. What is the status of metallic mineral potential within the borders of the Republic of Turkey?

It's not unrealistic to say that the amount of mineral resources anticipated for our country, located at the point where three active continents converge, is much greater than initially thought. The only issue is that these resources are often buried deep and covered, awaiting discovery by those willing to take on the risk.

22. Is mapping still necessary? What is the relevance of alteration for mineral deposits?

Mapping involves plotting the elements of a designated area onto a plane. When we refer to "geology," Turkey has medium-detail geological maps for nearly every region, thanks to the establishment of MTA (General Directorate of Mineral Research and Exploration) in 1935, which has served both academic and administrative purposes. Handling mineral elements involves using detailed maps. If we can't directly observe the mineral deposit, understanding and mapping the alteration surrounding the mineralization will be beneficial. Alteration can provide crucial information about the presence and location of ore deposits.

23. How important is it for us to understand the origin of the ore deposit we are exploring?

If we know the geological belt and the main structural elements of our exploration area, we can search for a general model of the expected ore origin in the field. Structural, morphological, and geochemical data, along with alteration mapping, can be used to make various assessments based on the characteristics of this origin.

24. Should we keep drilling until we find it, or decide that this amount of drilling is sufficient?

Make your decision based on your principles. Strategy and corporate governance can assist you in this regard.

25. We hired a newly graduated geological engineer or geologist. What should we expect from them?

You can expect them to convert the project into a 3-dimensional format and collect all necessary data. Don’t expect an "assertive" geologist from your staff right away. Empty self-confidence without proven capability can waste resources, time, and personnel.

26. We hired a senior geologist/geological engineer. What should we expect from them?

You can expect them to audit the project's reliability, prevent neglect, analyze data as robustly as possible, and develop concepts. You can also expect them to identify problems, even if it involves overcoming challenges, by ensuring appropriate authority and trust aligned with the responsibilities you provide.

27. We assigned a sampler team. What should we expect from them?

In addition to normal workflow, you should expect them to consistently maintain the organization and arrangement of the core storage and coreyard duties they are responsible for.

28. We have done many drillings. How should we store the diamond drillhole core boxes?

Core boxes contain a lot of logged information. Whether the boxes are polymer or wood, exposure to sunlight and moisture over time affects the legibility of the writing inside. Stacked boxes can become deformed due to the weight over time. To prevent these issues, stack a standard number of boxes on a solid (preferably concrete) base, and cover them with a membrane to protect against moisture and sunlight. A stacking diagram should be maintained, and if possible, box data should be attached to the boxes with embossed tags.

29. What should I ask my geologists or drillers to pay attention to when examining drilling sites?

In the drill progress reports, they should record problematic zones, circulation losses, and structural elements without neglecting any details, specifying them by meter intervals. Before starting new drillholes, they should consult with geologists about the meter intervals where these elements might be encountered based on their interpretations. Additionally, these consultations can sometimes help achieve positive results by working with higher turnover and pressure, rather than always proceeding cautiously.

30. To what extent does the method of rock sampling in the field impact investment decisions?

Sampling a specific 20-30 cm wide area on a vein outcrop a few meters wide will only provide a random element query result for that spot’s mineralization. Cutting across the vein/trend with a transverse line (possibly with excavator support) and distinguishing the phases through sampling (like drilling) will help you obtain the most accurate information about the ore body. This will allow you to make more informed decisions about whether to proceed to the next steps.