Roberto C. Villas-Bôas Center for Minerals Technology – CETEM, Brazil
Science & Technology for Development – CYTED
Expert Member UNFC/UNECE
What is a RESOURCE/RESERVE classification for ? Villas-Bôas
The conclusions of this presentation on LA reflect some discussions with a selected group of LA mining and geology experts having as underlying documents :
UNFC-2009
ECE/ENERGY/GE.3/2009/6
ECE/ENERGY/GE.3/2009/7
CRIRSCO
Besides local documents
What is a RESOURCE/RESERVE classification for ? Villas-Bôas
Poseidon bubble was a
stock market bubble
numerous cases of improper trade practices. It recommended a number of changes to the regulation of stock markets, which ltimately led to Australia's national companies and securities legislation.
What is a RESOURCE/RESERVE classification for ? Villas-Bôas
Bre-X case: an 'embarrassment' for Canadian law
How to believe in reported samples ?
What is a RESOURCE/RESERVE classification for ? Villas-Bôas
CRIRSCO views that UNFC- 2009 satisfies the need for high level definitions that can bridge the petroleum and minerals industries but leaves intact the detailed definitions, rules and guidelines that are commodity specific.
CRIRSCO has been associated with the International Council on Mining and Metals (ICMM), which shares similar objectives and also represents the international mining industry, initially as a Task Force then from 2009 through a Strategic Partnership.
What is a RESOURCE/RESERVE classification for ? Villas-Bôas
Assessments made for different purposes :CRIRSCO is specifically designed for corporate reporting purposes
non-sales production in ore bodies and polimetalics.
aggregation to national level:Template explicitly precludes the aggregation of Mineral Reserves and Mineral Resources, highlighting the fact that, firstly, there are fundamental differences between them and, secondly, Mineral Resources are sometimes reported inclusive of those quantities that are separately reported as Mineral Reserves.
What is a RESOURCE/RESERVE classification for ? Villas-Bôas
Confusion still exists between reserves and resources definitions* as well as between in-situ and recoverable quantities;
* In 1997, CRIRSCO ´s Denver Accord reached definitions of Mineral Resources and Mineral Reserves, and their respective sub-categories Measured, Indicated and Inferred ,and Proved and Probable .
In some situations there are reasons for reporting Mineral Resources inclusive of Mineral Reserves and in other situations for reporting Mineral Resources additional to Mineral Reserves. TRANSPARENCY
What is a RESOURCE/RESERVE classification for ? Villas-Bôas
Need for comprehensive, consistent and coherent reporting reflecting key categories :
Resources
Discovered & Undiscovered
Reserves
Measured, Indicated, Inferred
What is a RESOURCE/RESERVE classification for ? Villas-Bôas
General guidelines required for UNFC does not preclude practical mapping guidelines developed by each country between its system and UNFC.
Set fundamental reporting guidelines (not user-specific) and use of plain language to the extent possible.
Qualified person : responsible for the estimation is subjected to sanctions .
113 = Possible Reserve , still reported in some countries.
What is a RESOURCE classification for ? Resource valuation :The monetary valuation of
resource quantities is outside the scope of resource classification and there are no plans to attempt to expand UNFC-2009 to cover this issue.
Commodity-specific guidelines “The fact that many existing mining sector reporting regulations are based on the CRIRSCO codes must be kept in mind, and conflicts with those must be avoided”
What is a RESOURCE classification for ? Proved and probable reserves based on forecast costs :
UNFC-2009 is entirely aligned with the Template and PRMS, in that the definition of E1 refers to “realistic assumptions of future market conditions”.
Governance and administrative system for guidelines
Using industry best practice :it would seem to be counter-productive to attempt apply a fluids-based classification system to the mining of solids and vice versa.
Benefit in globally-consistent terminology and definitions
What is a RESOURCE classification for ? • When and why S&SE Types as JORC and
CRIRSCO ? Marketing , Security and Stock Exchange POSEIDON Ni, Australia ( late 60´s).
BRE-X , in Canada ( 1997).
• When and why UNFC ?
Applications to Energy Studies, Resources Management Functions, Corporate Business Processes and Financial Reporting Standards.
2004 ECOSOC …. UNFC-2009
McKelvey´s original
2 parameters:
degree of geological assurance degree of economic feasibility of exploitation. Villas-Bôas
© 2003-2004 Petrobjects
USGS-USBM / 1980 largely utilized in LA ,except UNDISCOVERED after McKelvey (1972) & Brobst and Pratt (1973)
Major LA Mining Players RESOURCES : measured, indicated, inferred deposits included Villas-Bôas
USGS* type of Classification
CRIRSCO
Brazil
Venezuela
Colômbia
Argentina
Chile Peru
*excepted UNDISCOVERED
Selected LA Medium to Minor Mining Players Villas-Bôas
Cuba ( MINBAS 2008 & CIMVal 2001 - Ni)
Bolívia (changing to ?)
México (Ag) ( USGS Type)
Dominican R. (CIMVal 2001- Cu)
Major LA Mining Players Villas-Bôas
Mineral Resource is based on mineralisations and natural materials of intrinsic economic interest, identified and estimated through exploration, drilling, and sampling .
Ore Reserves is based on well-supported technical and economic parameters, as well as on legal, environmental, socio-economic and government aspects. The “cut-off” grades.
Ore Reserves are sub-divided into Proved (Measured) and Probable ( Indicated) , according to level of confidence that they are supplied.
In Conclusion: Major LA Mining Players & UNFC Villas-Bôas
UNFC “immediately” applied
In those where JC applies to Securities and Stock Exchanges
o 111 - 121 - 122
112 ( in some)
o 211 - 221 – 222
o 331 – 332 - 333
334 ( in some )
CRIRSCO standards are accepted ,as well as other local reporting codes and guidelines ,depending on the particular S & SE concerned
In Conclusion:
Major LA Mining Players & UNFC Villas-Bôas
USGS type of classification does not confront UNFC and or CRIRSCO classifications;
UNFC and CRIRSCO do have different objectives, although complementary, and CRIRSCO should be a subset of UNFC.
UNFC is a guideline to National Classification Systems that eventually will have their own particularities within that framework.
Issues : The Competent Person
S&SE types: no need for 36,or so, codes( in CRISRCO ,05; USA-SEC : Reserves)
The UNDISCOVERED case