International mineral resource and mineral reserve classification and reporting systems

The minerals industry’s inherent international scope has led to raising the requisite capital in various jurisdictions, independent of a mining company’s management or operations base. While this creates various financing options, it can still be a challenge to raise the requisite capital given the requirement for large amounts of high-risk capital. As a consequence, the minerals industry must develop efficient means to attain this capital, the most important of which is providing investors willing to provide capital with transparent and comprehensive information. Achieving this requires internationally accepted reporting standards for mineral resources and mineral reserves using universally accepted definitions. Experts in the international mineral exploration and mining industries have been working diligently for decades towards this end. In fact, they have done exceptionally well relative to other industries in producing closely harmonized international standards in the world’s top mining and mineral financing countries.
The international standards provide minimum standards, recommendations, and guidelines for public reporting of exploration results, mineral resources, and mineral reserves in their respective jurisdictions (International Codes). Their reporting terminology sets out a classification system for the tonnage and grade estimates of mineral resources and mineral reserves. Public documents which include estimates of mineral resources and mineral reserves must be prepared by or under the direction of, and signed by, a Competent Person (i.e. Qualified Person) or persons. A Competent Person is essentially a regulated engineer or geoscientist who has a minimum of five years of relevant experience.
The regulatory framework within which each of these International Codes sits will determine whether or not each will have its intended effects. For each International Code to be effective they must have (1) backing from the applicable regulatory authorities (e.g. stock exchanges or securities commissions), and (2) SROs and other relevant organizations which adopt the International Codes and support them as a best practice. That is, it must be legally mandatory for both individuals and companies to conform to the International Codes if they are to be effective.
Unfortunately, the International Codes have not been accepted by the regulatory authorities in the United States [the U.S. Securities and Exchange Commission (SEC)], or in the United Kingdom (the UK Listing Authority). This is more serious in the United States, given that the SEC rules do not permit reporting of resource estimates or even use of the term resource and do not require the use of a Competent Person. This may not be an oversight on the part of the SEC given the United States does not have a national organization or agency that licenses mineral industry professionals nor an effective discipline committee that can remove one’s right to practice for incompetence or impropriety. This lack of a national professional ‘umbrella’ organization has not, however, hindered the concept of a Competent Person in Canada.
It is evident therefore, that application of these standards may be less in the hands of the industry and more in the hands of their respective regulators. One of the factors influencing the acceptance of such standards is the current work of the International Accounting Standards Board (IASB) and the International Organization of Securities Commissions (IOSCO). IASB and IOSCO are currently standardizing international accounting practices and international securities rules and regulations relating to multi-jurisdictional issues. Already the extractive industries have been segregated from international accounting practices due to their specialized nature and, unfortunately, the current views expressed by these organizations would nullify the use of the International Codes. The securities regulatory authorities are expressing dissatisfaction with the subjective nature of the estimation of mineral resources and mineral reserves to say nothing of the valuation of mineral resources and mineral reserves—the effect being that the extractive industries are being treated differently than other industries resulting in an uneven playing field. This may cause otherwise available capital to flow to non-extractive industries.
Accordingly, those in the minerals industry must do all that it can to be treated on par with other industries from an accounting point of view. This can be achieved by attaining the highest possible professional technical standards thereby establishing confidence in the International Codes. Similarly, the regulatory authorities must recognize that the uniqueness of the minerals industry requires input from industry professionals in order to implement successful rules and practices.
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Summary: This paper describes the challenges of mining a sill pillar under various types of paste backfill quality. From 1994 to 2002, Louvicourt mine produced approximately 12,600,000 t grading 3.5% Cu, 1.5% Zn, 27 g/mt Ag, and 0.85 g/mt Au. The mining method is transverse blasthole stoping, mining primary and secondary stopes. The production of this 4,300 t/d operation was accomplished using two mining horizons: from the 655 m level to the 415 m level and from the 860 m level to the 680 m level. The...
Publication: CIM Bulletin
Author(s): D. Fleury
Issue: 1086
Volume: 98
Year: 2005
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Summary: In Mexico alone, as much as 10,000 tons of dross is annually available. The secondary aluminum dross generally requires specially designed disposal facilities, as this material is considered toxic by environmental legislation in many countries. As it can be inferred, the dross treatment is important for two main reasons: the necessity of recovering aluminum from the dross, and the possibility to transform some of the dross components in by-products for industrial use, avoiding the necessity...
Publication: CIM Bulletin
Author(s): J.M. Almanza, A. Flores, J.C. Escobedo B., D.A. Cortés
Issue: 1086
Volume: 98
Year: 2005
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Summary: The North American mining industry faces challenging emissions regulations in future years with the introduction of new standards for off-road diesel engines. In order to remain competitive, industry stakeholders must invest in new technologies that are economically and environmentally sustainable.
Westport Innovations Inc., in Vancouver, British Columbia, has developed high-pressure direct injection (HPDI) technology that allows diesel engines to run primarily on natural gas with no...
Publication: CIM Bulletin
Author(s): K.B. Hodgins, P. Ouellette
Issue: 1086
Volume: 98
Year: 2005
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Summary: Highland Valley Copper has been mining its Valley pit since 1982. This pit requires large quantities of water-bearing overburden to be stripped away to expose the porphyry copper deposit underneath it. In order to dewater the aquifers, the mine began extracting groundwater in 1985 through the implementation of strategically placed deepwells containing submersible pump sets.
Initially, dewatering focused on aquifers close to the topographic surface and pumping flow rate targets were set in...
Publication: CIM Bulletin
Author(s): P.A. Witt
Issue: 1086
Volume: 98
Year: 2005
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Summary: Durant les dix dernières années, les améliorations dans le contrôle des limites de sautage ainsi que les arpentages avant et après l’exploitation ont fourni des informations pre et post facto sur les limites de sautage réalisées par rapport à celles planifiées, particulièrement pour les grands chantiers exploités par les méthodes chambres vides et à sous-niveaux. Cependant, peu de recherches ont été faites pour améliorer la délimitation du minerai, l’estimation des ressources et des réserves...
Publication: CIM Bulletin
Author(s): S. Planeta et M. Vallée
Issue: 1086
Volume: 98
Year: 2005
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Summary: The International Rock Excavation Data Exchange Standard (IREDES) initiative and organization was launched during MineExpo 2000 in Las Vegas, Nevada, United States. IREDES sets the global standard for data exchange between equipment used for rock excavation and equipment users involved in the rock excavation process.
Companies from the mining industry, together with Atlas Copco and LKAB Kiruna mine, were the founders of IREDES. Today, the organization has close to twenty member companies, all...
Publication: CIM Bulletin
Author(s): M. Ramström, U. Olsson
Issue: 1086
Volume: 98
Year: 2005
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Summary: The Antamina orebody is a geologically complex, polymetallic skarn located in the Peruvian Andes. Different copper and copper-zinc ores are campaigned separately through the concentrator producing copper and zinc concentrates as well as lead and molybdenum by-products.
Ore type classification at Antamina is based on chemical assays; geological or lithological variations are not considered. Consequently, each ore type demonstrates a wide range of concentrator performance.
Antamina is currently...
Publication: CIM Bulletin
Author(s): A. Dance
Issue: 1086
Volume: 98
Year: 2005
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