1. MINERALISATION BEYOND INFERRED RESOURCES
ROGER DIXON
South African Representative
Committee for Mineral Reserves International Reporting Standards
I chose the topic as I think it demonstrates the synergies between UNFC 2009 and the Crirsco International Reporting Template
It demonstrates how mineralised Inventory can be managed by use of UNFC.

2. MINERALISATION BEYOND INFERRED RESOURCES
South African Representative, CRIRSCO

3. UNFC 2009
Generic classification system applicable to Fossil Energy and Mineral Resources and Nuclear fuels
Provides a single framework on which to build international energy and mineral studies
Allows for non-economic mineralisation
Soon to be applicable to renewable energy
Important tool for harmonized generic terminology at a level suitable for global communication
Solar, wind Bio energy Hydro

4. UNFC – 2009 Generic, Principle based 3 Axis Economic, Social
Feasibility, Project status
Geological
Numerical code
Commercial Projects
Potentially commercial projects
Non commercial projects
Exploration projects
Additional quantities in place
Other quantities in place
Extracted quantities
Applied directly or as harmonizing tool

5. CRIRSCO - Principle Objective
To promote best practice in the international public reporting of Mineral Exploration Results, Mineral Resources and Mineral Reserves. CRIRSCO is an international advisory body without legal authority, relying on its constituent members to ensure regulatory and disciplinary oversight at a national level. It recognises the truly global nature of the minerals industry and the agreed need for international consensus on reporting standards.
Public Reporting
Reporting standards
Beijing to Bogota

6. 10 CRIRSCO Members
Australasia: JORC Brazil: CBRR Guide Canada: CIM Chile: COMISIÓN MINERA DE CHILE Europe : PERC Kazakhstan KAZRC Mongolia MRC Russia NAEN South Africa: SAMREC United States: SME Guide
10 members
Ongoing dialogue with China, Turkey, Indonesia, India, Phillipines and Columbia

7. CRIRSCO Engagement
United Nations Economic Commission for Europe (UNECE) -1999
Society of Petroleum Engineers (SPE) -2004
International Accounting Standards Board (IASB)
International Atomic Energy Agency (IAEA)
Member of EGRC
The Bureau
The TAG

8. Mineral Resource
A Mineral Resource is a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction.
The location, quantity, grade or quality, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.
So even a the stage of declaring a resource the competent Person has to make a preliminary assessment of the technical and economic factors to ascertain whether there are reasonable prospects for eventual economic extraction

9. Mineralised Inventory
Strategic planning at country or global level
Corporate mineral inventory management
- exploration target definition
- development options - purchase price accounting
- capital allocation
World bank or International Energy agency
Planning infrastructure
Setting minerals and fiscal policy
Valuation of mineral properties.

10. Figure 1(a) General Relationship between Exploration Results, Mineral Resources and Mineral Reserves as Represented in the CRIRSCO Template

11. Figure 1(b) Re-Oriented Figure Showing the CRIRSCO Categories (Shaded) and Additional Categories in Other Systems

12. Figure 2 Comparison of the Petroleum Resource Management System (PRMS) and the CRIRSCO Template
Using the previous slide we now compare The Template with PRMS
PRMS has Proved Probable and Possible Reserves
Contingent Resources equivalent to Mineral Resources
Sub marginal Contingent resources which has no equivalent in the Template
It the has Prospective resources which are undiscovered and equivalent to Exploration Results

13. Figure 3 High Level Comparison Between UNFC (2009) and the CRIRSCO Template
Now compare with UNFC2009
Remember 3 axis EFG
Total commodity initially in place
Future recovery by commercial development projects
Potential future recover by contingent development project or mining operation
Shaded boxes in the Template; others in UNFC for managing inventory

14. Discovered not Economic
Feasibility/Technical
Geological Confidence
UNFC 2009; 321, 322, 323
Potential future recover by contingent development project or mining operation

15. Discovered Unrecoverable
Economic
Feasibility/Technical
Geological
UNFC 2009; or 343
It is also possible to have mineralisation that is discovered but unrecoverable. The geology may be fine but Feasibility and economics are not.
Reasons for it being unrecoverable could be remote location, safety reasons or extreme depth or that technology is currently not available to extract the mineral economically.

16. Exploration Results
Include data and information generated by mineral exploration programmes
Examples - discovery outcrops, single drill hole intercepts or the results of geophysical surveys
Inappropriate to use such information for deriving estimates of tonnage and grade:
UNFC 2009; 334

17. Exploration Target
A statement or estimate of the exploration potential
Quoted as a range of tonnes and grade or quality
Insufficient exploration to estimate Mineral Resources
Referred to in the Temaplate
Since it introduction has been abused in promoting share prices.
Using high end figures for tonnes and grade
Not in the Fundamental framework
Not in UNFC 2009

18. Undiscovered Unrecoverable
Statistical probability of extension to known resources
Statistical probability on a regional basis
UNFC 2009; 344
More applicable to oil and gas industry
Technology and economics may change sometime in the distant future

19. Figure 4 Categories of Mineralisation Beyond Inferred

20. Conclusion Need for management of inventory - Company level
- Country level
- Global level
Definitions must be consistent
Understand definition of Reserves and Resources and whether they are quoted inclusive or exclusive so that we do not get double accounting by aggregating the two

21. Acknowledgements
ALL SLIDES