Page 9 - Why we need a New Mineral Exploration Policy for National Mineral Security?
P. 9
The requirement in the Minerals (Evidence of Mineral establish the Inferred Mineral Resource (333). As is clear,
Contents) Rules 2015 is that for a mining lease, at least the E and F axes are not required under the provision
General Exploration (G2) should have been completed to be “2” or “1”, implying that beyond the geological
to establish the Indicated Mineral Resource (332); for report, there is no requirement for a pre-feasibility
prospecting (composite) licence, the requirement is that study and estimation of potentially economic resources
Preliminary Exploration (G3) should been completed to ( much less a feasibility study).
United Nations Framework Classification (UNFC)
The classification system used in the Minerals (Evidence of Mineral Contents) Rules 2015 (and also described therein) is the United Nations
Framework Classification (UNFC), which classifies mineral finds on a 3-digit code (E, F,G) where E is the Economic axis; F is the Feasibility axis,
and G is the Geological axis. The exploration for any mineral deposit involves four stages on the geology axis, namely, Reconnaissance Survey
(G4), Preliminary Exploration (G3), General Exploration (G2), and Detailed Exploration (G1). These stages of exploration lead to four resource
categories, namely, Reconnaissance Mineral Resource, Inferred Mineral Resource, Indicated Mineral Resource, and Measured Mineral Resource,
respectively reflecting the degree of geological assurance. An Intrinsically economic (E3) and feasible (F3) rating is available through a Geological
Study. Depending on the extent of exploration, and based on a geological study, a mineral find would be classified in a three-digit code, (3, 3, 4),
(3, 3, 3), (3, 3, 2), or (3, 3, 1) as the case may be (the change from “4” to “3” to “2” and to “1” in the third digit reflecting the increased explora-
tion). Prefeasibility (F2) or feasibility (F1) study must be conducted to establish potentially economic (E2) and economic (E1) quantities and
convert the relevant portions of the “Mineral Resources” to “Mineral Reserves” which is the economically mineable part of the Mineral Resource.
This conversion through modifying factors include issues relating to mining, processing, end use, cut off grade, threshold value, metallurgical,
infrastructure, economic, marketing, legal, environmental, social, and governmental factors.
[note: The three digit code (E,F,G) may also be expressed without the commas, as (EFG);for example “(3,3,2)” as “(332)”.]
When adequate exploration has been done (that is, at least general exploration or G2) and some feasibility study has been conducted to estimate
the economic or potentially economic nature of the find and its practical extractability, the resource (or reserve in case economics of extraction
have been established), the mineral find can be classified into one of the following :
Probable Mineral Reserve (121 and 122) is the economically mineable part of an Indicated, and in some circumstances, a Measured Mineral
Resource. The confidence in the Modifying Factors applying to a Probable Mineral Reserve is lower than that applying to a Proved Mineral
Reserve. (The modifying factors relate to mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social, and
governmental factors, which impact technical and economic feasibility.)
Proved Mineral Reserve (111) is the economically mineable part of a Measured Mineral Resource. A Proved Mineral Reserve implies a high
degree of confidence in the Modifying Factors.
Feasibility Mineral Resource (211) A ‘Feasibility Mineral Resource’ is that part of a Measured Mineral Resource which is not economically
mineable as defined by studies at the feasibility level. This material is identified as being possibly economically viable subject to changes in
technological, economic, and environmental and/or other relevant conditions.
Pre-Feasibility Mineral Resource (221 and 222) A ‘Prefeasibility Mineral Resource’ is that part of an Indicated, and in some circumstances,
Measured Mineral Resource, that has been found by studies at the Pre-feasibility level, as not economically viable. This material is identified as
being possibly economically viable subject to changes in technological, economic, and environmental and/or other relevant conditions.
The Mineral (Evidence of Mineral Contents) Rules likely to be “resources” whose potential for economic
incorporate the provision for a pre-feasibility report in extraction has not been established with any substantial
Part V of the Schedule to the Rules and states in Rule 4 degree of confidence rather than “reserves” which may
that a legacy concession holder of a prospecting licence, in be economically mineable or potentially mineable under
order to claim a mining lease under the earlier provisions, favourable price conditions.
must have carried out at least General Exploration
(G2 level) over the area to establish Indicated Mineral There are other classification systems, such as the
Resource (332); and prepared at least a pre-feasibility Australian JORC Code or its counterpart the Canadian
study (F2) report to establish a probable mineral reserve National Instrument 43.101. The Australasian Code for
(121 and 122) conforming to Part V of the Schedule. Reporting of Exploration Results, Mineral Resources and
However, the same standard has not been applied for Ore Reserves (‘the JORC Code’) is a professional code of
the auction of leases and what are being auctioned are practice that sets minimum standards for public reporting
of mineral Exploration Results, Mineral Resources and
JUNE 2017 9
Contents) Rules 2015 is that for a mining lease, at least the E and F axes are not required under the provision
General Exploration (G2) should have been completed to be “2” or “1”, implying that beyond the geological
to establish the Indicated Mineral Resource (332); for report, there is no requirement for a pre-feasibility
prospecting (composite) licence, the requirement is that study and estimation of potentially economic resources
Preliminary Exploration (G3) should been completed to ( much less a feasibility study).
United Nations Framework Classification (UNFC)
The classification system used in the Minerals (Evidence of Mineral Contents) Rules 2015 (and also described therein) is the United Nations
Framework Classification (UNFC), which classifies mineral finds on a 3-digit code (E, F,G) where E is the Economic axis; F is the Feasibility axis,
and G is the Geological axis. The exploration for any mineral deposit involves four stages on the geology axis, namely, Reconnaissance Survey
(G4), Preliminary Exploration (G3), General Exploration (G2), and Detailed Exploration (G1). These stages of exploration lead to four resource
categories, namely, Reconnaissance Mineral Resource, Inferred Mineral Resource, Indicated Mineral Resource, and Measured Mineral Resource,
respectively reflecting the degree of geological assurance. An Intrinsically economic (E3) and feasible (F3) rating is available through a Geological
Study. Depending on the extent of exploration, and based on a geological study, a mineral find would be classified in a three-digit code, (3, 3, 4),
(3, 3, 3), (3, 3, 2), or (3, 3, 1) as the case may be (the change from “4” to “3” to “2” and to “1” in the third digit reflecting the increased explora-
tion). Prefeasibility (F2) or feasibility (F1) study must be conducted to establish potentially economic (E2) and economic (E1) quantities and
convert the relevant portions of the “Mineral Resources” to “Mineral Reserves” which is the economically mineable part of the Mineral Resource.
This conversion through modifying factors include issues relating to mining, processing, end use, cut off grade, threshold value, metallurgical,
infrastructure, economic, marketing, legal, environmental, social, and governmental factors.
[note: The three digit code (E,F,G) may also be expressed without the commas, as (EFG);for example “(3,3,2)” as “(332)”.]
When adequate exploration has been done (that is, at least general exploration or G2) and some feasibility study has been conducted to estimate
the economic or potentially economic nature of the find and its practical extractability, the resource (or reserve in case economics of extraction
have been established), the mineral find can be classified into one of the following :
Probable Mineral Reserve (121 and 122) is the economically mineable part of an Indicated, and in some circumstances, a Measured Mineral
Resource. The confidence in the Modifying Factors applying to a Probable Mineral Reserve is lower than that applying to a Proved Mineral
Reserve. (The modifying factors relate to mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social, and
governmental factors, which impact technical and economic feasibility.)
Proved Mineral Reserve (111) is the economically mineable part of a Measured Mineral Resource. A Proved Mineral Reserve implies a high
degree of confidence in the Modifying Factors.
Feasibility Mineral Resource (211) A ‘Feasibility Mineral Resource’ is that part of a Measured Mineral Resource which is not economically
mineable as defined by studies at the feasibility level. This material is identified as being possibly economically viable subject to changes in
technological, economic, and environmental and/or other relevant conditions.
Pre-Feasibility Mineral Resource (221 and 222) A ‘Prefeasibility Mineral Resource’ is that part of an Indicated, and in some circumstances,
Measured Mineral Resource, that has been found by studies at the Pre-feasibility level, as not economically viable. This material is identified as
being possibly economically viable subject to changes in technological, economic, and environmental and/or other relevant conditions.
The Mineral (Evidence of Mineral Contents) Rules likely to be “resources” whose potential for economic
incorporate the provision for a pre-feasibility report in extraction has not been established with any substantial
Part V of the Schedule to the Rules and states in Rule 4 degree of confidence rather than “reserves” which may
that a legacy concession holder of a prospecting licence, in be economically mineable or potentially mineable under
order to claim a mining lease under the earlier provisions, favourable price conditions.
must have carried out at least General Exploration
(G2 level) over the area to establish Indicated Mineral There are other classification systems, such as the
Resource (332); and prepared at least a pre-feasibility Australian JORC Code or its counterpart the Canadian
study (F2) report to establish a probable mineral reserve National Instrument 43.101. The Australasian Code for
(121 and 122) conforming to Part V of the Schedule. Reporting of Exploration Results, Mineral Resources and
However, the same standard has not been applied for Ore Reserves (‘the JORC Code’) is a professional code of
the auction of leases and what are being auctioned are practice that sets minimum standards for public reporting
of mineral Exploration Results, Mineral Resources and
JUNE 2017 9
