Podcast
Questions and Answers
What must be ensured when reporting an exploration target?
What must be ensured when reporting an exploration target?
How should potential mineralization statements be expressed?
How should potential mineralization statements be expressed?
What does an Exploration Target represent?
What does an Exploration Target represent?
Which of these factors is NOT considered in assessing Mineral Resources?
Which of these factors is NOT considered in assessing Mineral Resources?
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Which classification represents the highest confidence in geological knowledge?
Which classification represents the highest confidence in geological knowledge?
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Which statement accurately reflects the nature of an Exploration Target?
Which statement accurately reflects the nature of an Exploration Target?
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What aspect is emphasized in reporting exploration results?
What aspect is emphasized in reporting exploration results?
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What is the primary role of the Competent Person regarding Resource estimates?
What is the primary role of the Competent Person regarding Resource estimates?
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What do Exploration Results represent?
What do Exploration Results represent?
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Which of the following factors are NOT considered Modifying Factors when assessing Mineral Reserves?
Which of the following factors are NOT considered Modifying Factors when assessing Mineral Reserves?
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Which Mineral Resource category represents the highest level of confidence?
Which Mineral Resource category represents the highest level of confidence?
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What must be disclosed when determining confidence levels in Resource estimates?
What must be disclosed when determining confidence levels in Resource estimates?
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Which statement best describes the concept of 'Mineralisation'?
Which statement best describes the concept of 'Mineralisation'?
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In the context of Geological Prospectivity, which aspect is crucial for determining resource potential?
In the context of Geological Prospectivity, which aspect is crucial for determining resource potential?
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What is an Exploration Target?
What is an Exploration Target?
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Which Mineral Resource category typically includes estimates that are reported as in situ mineralisation?
Which Mineral Resource category typically includes estimates that are reported as in situ mineralisation?
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What is an Exploration Target primarily defined by?
What is an Exploration Target primarily defined by?
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Which statement accurately describes mineralisation?
Which statement accurately describes mineralisation?
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Which of the following must be established for a substance to be classified as a Mineral Resource?
Which of the following must be established for a substance to be classified as a Mineral Resource?
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What differentiates a Mineral Resource from a Mineral Reserve?
What differentiates a Mineral Resource from a Mineral Reserve?
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In the context of Exploration Results, which condition must be met?
In the context of Exploration Results, which condition must be met?
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What is a key characteristic of an Exploration Target?
What is a key characteristic of an Exploration Target?
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Which of the following does NOT characterize mineralisation?
Which of the following does NOT characterize mineralisation?
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What is NOT a requirement for a material to be considered a Mineral Resource?
What is NOT a requirement for a material to be considered a Mineral Resource?
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How is an Exploration Target different from a Mineral Resource?
How is an Exploration Target different from a Mineral Resource?
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Which of the following describes the primary purpose of CRIRSCO?
Which of the following describes the primary purpose of CRIRSCO?
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What is a key challenge faced by the mining industry in attracting investment?
What is a key challenge faced by the mining industry in attracting investment?
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Which country established its CRIRSCO member in 2019?
Which country established its CRIRSCO member in 2019?
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What aspect is crucial for the mining industry to maintain its operational well-being?
What aspect is crucial for the mining industry to maintain its operational well-being?
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Which statement best reflects the nature of mineral assets in the mining industry?
Which statement best reflects the nature of mineral assets in the mining industry?
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What is the primary purpose of the CRIRSCO Codes?
What is the primary purpose of the CRIRSCO Codes?
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Which of the following is NOT a benefit of the CRIRSCO Codes?
Which of the following is NOT a benefit of the CRIRSCO Codes?
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Why are mining disclosure rules put in place?
Why are mining disclosure rules put in place?
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Which principle does CRIRSCO prioritize in its codes?
Which principle does CRIRSCO prioritize in its codes?
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What is a significant risk that mining disclosure aims to minimize?
What is a significant risk that mining disclosure aims to minimize?
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What is the primary responsibility of a Competent Person in relation to the SAMREC Code?
What is the primary responsibility of a Competent Person in relation to the SAMREC Code?
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Which of the following is NOT a requirement for public reporting under the SAMREC Code?
Which of the following is NOT a requirement for public reporting under the SAMREC Code?
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What does the SAMREC Code emphasize about the nature of mineral resource estimation?
What does the SAMREC Code emphasize about the nature of mineral resource estimation?
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What characterizes the SAMREC Code in terms of its jurisdiction?
What characterizes the SAMREC Code in terms of its jurisdiction?
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What is the purpose of the disclosure standards set by the SAMREC Code?
What is the purpose of the disclosure standards set by the SAMREC Code?
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Which statement best describes the obligations placed on issuers by the SAMREC Code?
Which statement best describes the obligations placed on issuers by the SAMREC Code?
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What is NOT a benefit of the SAMREC Code?
What is NOT a benefit of the SAMREC Code?
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What is the primary purpose of the SAMREC Code?
What is the primary purpose of the SAMREC Code?
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In what year was the JORC Code first published?
In what year was the JORC Code first published?
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Which organization was formed in 2002 alongside CRIRSCO?
Which organization was formed in 2002 alongside CRIRSCO?
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Which agreement introduced the Denver Accord?
Which agreement introduced the Denver Accord?
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When was the SAMVAL Code published?
When was the SAMVAL Code published?
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Which significant event occurred in the year 2000 related to SAMCODES?
Which significant event occurred in the year 2000 related to SAMCODES?
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What was established in 2008 in addition to the SAMVAL Code?
What was established in 2008 in addition to the SAMVAL Code?
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What does the acronym SAMCODES refer to?
What does the acronym SAMCODES refer to?
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Study Notes
SAMCODES - The South African Mineral Reporting Codes
- SAMCODES are the South African mineral reporting codes
- They include SAMREC, SAMVAL, and SAMOG
- SAMREC: Reporting of exploration results, mineral resources, and mineral reserves
- SAMVAL: Reporting of mineral asset valuations
- SAMOG: Reporting of oil and gas resources
Introduction to SAMREC Code
- Presenter: Ken Lomberg, Pr. Sci. Nat.
- Date: September 2024
- Organization: Pivot Mining Consultants
Previous Chairperson of SAMREC Committee
- Name: Ken Lomberg (Pr.Sci.Nat.)
- Job title: Director (Geology and Resources)
- Organization: Pivot Mining Consultants
- Experience: 30 years
Background
- Mining asset life cycle stages: Expansion, Exploration, Evaluation, Development, Production, Closure
- Activities at each stage: Country risk & market opportunities, Prospecting rights, Preliminary economic assessment, design & implementation
Background
- 1960s: Australian concern about unacceptable reporting practices ("Poseidon nickel boom and bust")
- Australian Stock exchanges self-regulated
- 1971: Australasian Joint Ore Reserves Committee (JORC) established
- 1989: JORC published first version of the code
- US reporting code derived from Hoover's work in the 1930s
- 1990s events like the Bre-X affair caused regulatory re-examination
- Enron, Shell, and other US events led to increased scrutiny of company reporting
Bre-X Scandal
- Canadian junior based in Calgary
- Gold deposit in Busang, Indonesia
- May 1998: Bre-X incorporated
- 1992-1993: Exploration at Busang
- 1994-1995: Drilling ramps up
- 1995: Analyst bullish buy
- April 1996: Lists on TSX, share price hits $180
- May 1996: 39 Moz Au announcement
- July 1996: 47 Moz Au announcement
- Agreement with Indonesian government and Freeport to develop mine
- February 1997: Estimates of 71 Moz Au (as much as 200 Moz Au)
- March 1997: Freeport due diligence only minor amounts of gold found; De Guzman falls from helicopter
- March 1997: Indonesian paper and other reports indicate Busang may not contain much gold; Bre-X shares drop
- March 1997: Trading halted after Freeport-McMoRan's report finds only insignificant amounts of gold
- May 1997: Independent mining firm confirms no gold
- Stock de-listed and investors lose everything
Bre-X Litigation
- November 1997: Walsh and VP McAnulty resign
- June 1998: Walsh dies of brain aneurysm
- May 1999: Ontario Securities Commission lays charges
- July 2007: Felderhof acquitted
Global Reach, Providing a Single View
- Organizations: CIM (Canada), SME (USA), CBRR (Brazil), SAMREC (South Africa) and others
15 CRIRSCO Members
- JORC, CBRR, CIM, Comision Minera (Chile), CCRR, PERC, Kombers-KCMI, KAZRC, MPIGM, NACRI, NAEN, SAMCODES, UMREK, SME
Why was CRIRSCO created?
- Promote International Best Practice in reporting of mineral exploration results, mineral resources, and mineral reserves
Why did the Codes Develop?
- Good Governance (Self Regulation, Best Practice)
- Technical Excellence (Scientific and Engineering Principles)
- Reliable Reporting (Financial Sector, Valuations, Common Language)
- Public Reporting (Minimum Requirements)
What are the benefits of the CRIRSCO Codes?
- Promotes best practice, common language, common concepts, comparative transactions/projects/mines, non-technical professionals understand, basis for valuation, guidance to competent persons, self-regulation, accountability, risk mitigation
Why do we have Mining Disclosure Rules?
- Mining is capital intensive and risky
- Companies need risk capital access
- Investors rely on company information and mining has numerous intrinsic risks
- Being misled is not acceptable
The SAMREC Code (2016 Edition)
- This is a South African Code for reporting exploration results, mineral resources, and mineral reserves.
SAMCODES History of Development
- Milestones in mineral reporting code development including JORC, IMM Code, SAMREC WG formation, CMMI initiative (CRIRSCO), Denver Accord, SAMREC Code adoption, CIM Code published, SAMREC/SAMVAL/SAMOG Code update, SAMCODES Launch at the JSE
South African Framework
- Breakdown of elements of the South African framework, including competent person code, JSE rules, and other bodies
The Scope of the Code
- The code sets a minimum standard of public reporting of exploration results and mineral reserves
- Applicable to all solid mineralisation or economic deposits
- Excludes Oil, Gas and Water
What the SAMREC Code is not
- Guarantee of good work
- Cookbook for mineral resource or reserve estimation
- Confirmation of technical report
Public Reporting - What it's meant to be
- Technical information should be signed-off by a professional
- Based on reasonable assumptions
- Consistent use of standardized terms and definitions
- Balanced and not misleading
- In a format for comparing similar projects
- Understandable to a reasonably informed investor
JSE Listing - Section 12
- JSE rules for mineral companies
- JSE uses the Code
- Reviews CPRs for compliance, not investment opportunity
Pertinent Aspects of the SAMREC Code
- Required minimum standard for public reporting.
- Relevant to all solid minerals
- Presents information to investors, advisors and satisfies regulatory requirements. Includes materiality, transparency, and competency.
Core Definitions
- Public reports
- Competent person
- Exploration target
- Exploration results
- Mineral Resource
- Indicated Resource
- Inferred Resource
- Measured Resource
- Modifying factors
- Mineral Reserve
- Probable Reserve
- Proved Reserve
- Scoping Study
- Pre-Feasibility Study
- Feasibility Study
SAMREC 2016 General Minerals
- Stages of mineral resources from exploration to reserves.
SAMREC 2016 — Coal / Diamonds & Gemstones
- Information for each commodity.
Degree of Confidence
- Tonnes and grade should reflect different levels of geoscientific confidence. Details of calculation method must be disclosed for the resource confidence.
Exploration Results
- Includes data from exploration programs, but does not include mineral declaration or mineral reserves.
- Must not misrepresent an exploration target as an estimate.
Exploration Target
- Statement or estimate of exploration potential for a mineral deposit
- Relates to mineralisation for which insufficient exploration exists to estimate mineral resources
- May be considered in mine design, planning, or economic studies
- Must state that it is uncertain whether further exploration will lead to a mineral resource.
- Geological prospects for a mineral, with a range for quantity and quality.
- No reasonable prospect for economic extraction.
Mineralisation
- Focuses on mineral concentration on Earth's crust
Mineral Resource
- Concentration or occurrence of economically interested materials within earth crust.
- Includes the quantity, quality, geological features, and reasonable prospects for future economic extraction
Mineral Resource (In other words)
- A deposit may cover in-situ mineralization or the materials such as tailings and dumps.
- The geological data must be sufficient to demonstrate the likely economic extraction.
Mineral Resource (Assumptions)
-
The material assumptions to determine eventual economic extraction should be clearly stated in the Public Report
-
The reasonable prospects should not include an undefined duration for economic extraction.
Mineral Resource (Adjustments)
- Any adjustments to adjust the data should be clearly described in the public report.
- Adjustment may include cutting or factoring grades, or other adjustments.
Inferred Resource
- Part of a mineral resource with limited geological/sampling data
- Has a lower level of confidence than Indicated Resource.
- Cannot be converted into Mineral Reserve.
- Majority of Inferred Resources can be upgraded.
Indicated Resource
- Sufficient geological/sampling data supports the application of Modifying Factors for detailed planning
- Has a lower level of confidence than Measured Resource
- Can only be converted to a Probable Mineral Reserve
Measured Resource
- Estimated with confidence that allows the application of Modifying Factors for detailed planning.
- Enough geological/sampling data to confirm geological/grade/quality continuity between points of observation
Metal Equivalents
- Reporting of polymetallic deposits in terms of metal equivalents
- Details of all material factors must be shown
- Assumed commodity prices and metallurgy recovery details must be disclosed.
Table 1
- Checklist and guideline of reporting and assessment criteria (for all declarations and guidelines of SAMREC Code).
- Comprehensive list of guidelines for each declaration type and other elements such as project outline, assessment methods, and other relevant information.
If not, Why not?
- Used as a verb to trigger clarification in circumstances including maiden announcement, change of materials
Competent Person's Report (For JSE Reporting)
- Must comply with SAMREC and SAMVAL Codes
Technical Reports (CPR) - To do and Do Not
- Checklist of actions expected and steps to avoid in preparing technical reports
- Focuses on the importance of following the correct procedures.
CPR'S
- IPO
- Information Memoranda
- Updated Reports
- Continuous Disclosure
SAMCODES App
- Mobile application for SAMREC code access
Questions
- Placeholder for questions
Mining Consultants
- Placeholder for mining consultant information
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Description
Dive into the South African Mineral Reporting Codes, known as SAMCODES, which include SAMREC, SAMVAL, and SAMOG. This quiz presents an overview of each code's purpose and the stages of the mining asset life cycle. Gain insights from industry expert Ken Lomberg's extensive experience in geology and resources.
