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THE SOUTH AFRICAN CODE FOR THE REPORTING OF

EXPLORATION RESULTS, MINERAL RESOURCES AND MINERAL
RESERVES

(THE SAMREC CODE)

2016 EDITION

Table of contents

GLOSSARY OF TERMS ......................................................................................................................... 2

FOREWORD ........................................................................................................................................... 6
INTRODUCTION ..................................................................................................................................... 7
SCOPE .................................................................................................................................................... 7
COMPETENCE AND RESPONSIBILITY ............................................................................................. 11
REPORTING TERMINOLOGY ............................................................................................................. 13
REPORTING: GENERAL...................................................................................................................... 14
REPORTING OF EXPLORATION RESULTS ...................................................................................... 15
REPORTING OF EXPLORATION TARGETS ...................................................................................... 16
REPORTING OF MINERAL RESOURCES .......................................................................................... 18
REPORTING OF MINERAL RESERVES ............................................................................................. 25
TECHNICAL STUDIES ......................................................................................................................... 29
REPORTING OF COAL EXPLORATION RESULTS, COAL RESOURCES AND COAL
RESERVES ................................................................................................................................ 31
REPORTING OF DIAMOND EXPLORATION RESULTS, DIAMOND RESOURCES AND
DIAMOND RESERVES .............................................................................................................. 36
REPORTING OF EXPLORATION RESULTS, MINERAL RESOURCES AND MINERAL
RESERVES FOR INDUSTRIAL MINERALS .............................................................................. 41
REPORTING OF METAL EQUIVALENTS ........................................................................................... 42

SAMREC TABLE 1 ..............…………………………………………………………………………………43

SAMREC TABLE 2 … ...................................................................... ……………………………………..77

APPENDIX 1 ......................................................................................................................................... 88
APPENDIX 2 ......................................................................................................................................... 93
APPENDIX 3 ......................................................................................................................................... 94

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GLOSSARY OF TERMS
Audit A systematic and detailed examination of the Mineral Resource
and Mineral Reserve, processes of estimation (including
geological, geotechnical and other models), assumptions and
conclusions undertaken in order to validate the
appropriateness of the various components that contribute to
the estimates of the Mineral Resource and Mineral Reserve.
An Audit includes a detailed examination of the base data and
validation of the Mineral Resources and Reserves estimates.
When compliance with the SAMREC Code is declared and
signed off, the audit must have been conducted by a
Competent Person.
The Companies Act The Companies Act No. 71 of 2008 of the Republic of South
Africa, as amended, or any law that may wholly or in part
replace it from time to time.
Competent Person’s A report on the technical aspects of a project or mine prepared
Report (CPR) by a Competent Person (CP). The contents are determined by
the nature/status of the project/mine being reported and may
include a techno-economic model as appropriate for the level
of study.
Dilution /Contamination Low or zero grade (waste) material that is mined during the
course of mining operations and thereby forms part of the
Mineral Reserve
Effective Date The date of the most recent scientific or technical information
included in the technical report
Historical Estimate An estimate of the quantity, grade, or metal or mineral content
of a deposit that an issuer has not verified as a current Mineral
Resource or Mineral Reserve. The estimate predates the
issuing of the Code and/or was prepared before the issuer
acquiring, or entering into an agreement to acquire, an interest
in the property that contains the deposit.
Kimberlite Indicator Garnet, chrome spinel, ilmenite and chrome diopside having
Minerals (KIMs), Diamond the requisite chemical and physical properties that distinguish
Indicator Minerals (DIMs) them from otherwise similar minerals found in non-diamond
associated rock types.
Life of Mine Plan A design and financial/economic study of an existing operation
in which appropriate assessments have been made of existing
geological, mining, metallurgical, economic, marketing, legal,
environmental, social, governmental, engineering, operational
and all other Modifying Factors, which are considered in

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GLOSSARY OF TERMS
sufficient detail to demonstrate that continued extraction is
reasonably justified. Refer to Table 2 for guidance.
Licence, Permit, Right, Any form of licence, permit, right or lease, or other entitlement
Lease or similar granted by the relevant Government in accordance with its
entitlement mining legislation that confers on the holder certain rights to
explore for or extract minerals (or both) that might be contained
in the designated area. Alternatively, any form of title that may
prove ownership/tenure of the minerals.
Material Circumstances are considered material if omission or
misstatement of the associated factor, constituent or
information could influence the economic decisions of users.
As a rule of thumb, this difference would normally be equal to
or exceed 10%.
Material Information Material information is any information relating to the business
and affairs of a company that results in or would reasonably be
expected to result in a significant change in the market price or
value of any of the company’s assets. Material information
consists of both material facts and material changes related to
the business and affairs of a company.
Microdiamonds Diamonds typically less than 0.5 mm that are recovered from
samples by total liberation. Microdiamonds are used to
understand and predict the diamond size distribution in primary
diamond deposits.
Mineable Those parts of the orebody, both economic and uneconomic,
that can be extracted during the normal course of mining.
Mine Design A framework of mining components and processes taking into
account such aspects as mining methods used, access to the
orebody, personnel and material handling, ventilation, water,
power, and other technical requirements, such that mine
planning can be undertaken.
Mine Planning Production planning and scheduling, within the Mine Design,
taking into account such aspects as geological structures and
Mineralisation and associated infrastructure and other
constraints.
Mineral Deposit (or A mass of naturally occurring mineral material, usually of
Deposit) economic interest, without regard to mode of origin. No
commercial value is implied.
Mineral Occurrence Any solid mineral of potential economic interest in any

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GLOSSARY OF TERMS
concentration found in bedrock or as float; especially a
valuable (or potentially valuable) mineral in sufficient
concentration to suggest further exploration.
Mineralisation A concentration (or occurrence) of material of possible
economic interest, in or on the Earth’s crust, for which quantity
and quality cannot be estimated with sufficient confidence to be
defined as a Mineral Resource. Mineralisation is not classified
as a Mineral Resource or Mineral Reserve and can only be
reported under Exploration Results. The data and information
relating to it must be sufficient to allow a considered and
balanced judgement of its significance.
mineralisation The process or processes by which a mineral or minerals are
introduced into rock, resulting in a potentially valuable deposit.
It is a general term, incorporating various types, e.g. fissure
filling, impregnation, replacement, etc.
Ore Reserve Although the term Mineral Reserve is used throughout this
Code, it is recognised that the term Ore Reserve is still in
general use. For the purposes of reporting under the SAMREC
Code, these terms are considered to be synonymous.
Residue / low grade Material resulting from mining or processing operations.
stockpile / tailings
Review A systematic and detailed inspection or examination of any
element of the Mineral Resource and/or Mineral Reserve
estimation process undertaken in order to validate adherence
to standards and procedures, identify material errors and/or
omissions or improvements. A review might include a detailed
examination of the base data. When compliance with the
SAMREC Code is declared, the review must have been
conducted by a Competent Person.
Recognised Professional An RPO must:
Organisation (RPO)
1. Be a self-regulatory organisation covering professionals in
mining or exploration or both;
2. Admit members primarily on the basis of their academic
qualifications and experience;
3. Require compliance with the professional standards of
competence and ethics established by the organisation;
4. Have disciplinary powers, including the power to suspend
or expel a member; and

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GLOSSARY OF TERMS
5. Have been accepted by SSC Committee as an RPO.
SAMREC The South African Mineral Resource Committee
SAMVAL Committee The South African Mineral Asset Valuation Committee
significant project An exploration or mineral development project that has or
could have a significant influence on the market value or
operations of the listed company, and/or has specific
prominence in Public Reports and announcements.
SSC Committee The SAMREC/SAMVAL Committee

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FOREWORD
1 The SOUTH AFRICAN CODE FOR THE REPORTING OF EXPLORATION RESULTS,
MINERAL RESOURCES AND MINERAL RESERVES (the SAMREC Code, or the
Code) sets out minimum standards, recommendations and guidelines for Public
Reporting of Exploration Results, Mineral Resources and Mineral Reserves in South
Africa. It has been drawn up by the Working Group of the SSC Committee under the
joint auspices of the Southern African Institute of Mining and Metallurgy (SAIMM) and
the Geological Society of South Africa (GSSA). The SSC consists of representatives of
the SAIMM, the GSSA, the South African Council for Natural Scientific Professions
(SACNASP), the Geostatistical Association of South Africa (GASA), the South African
Geomatics Council (SAGC), the Institute of Mine Surveyors of Southern Africa
(IMSSA), the Association of Law Societies of South Africa, the General Council of the
Bar of South Africa, the Department of Mineral Resources (DMR), the JSE Limited
(JSE), the Council for Geoscience, the Banking Association of South Africa, Directorate
of Mineral Economics/Minerals Bureau, the Chamber of Mines of South Africa (CoM),
South African Institute of Chartered Accountants (SAICA) and the Investment Analysts
Society of South Africa (IAS).

The first version of the SAMREC Code was issued in March 2000 and adopted by the
JSE in their Listings Requirements later that same year. The Code has been adopted
by the SAIMM, GSSA, SACNASP, ECSA, IMSSA and SAGC, and it is binding on
members of these organisations. For background information and the history of the
development of the Code, please refer to the SAMREC Code, March 2000. A second
edition of the SAMREC code was issued in 2007 with an amendment being issued in
2009. This 2016 edition supersedes the previous editions of the Code.
Concurrently with the evolution of the SAMREC Code, the Committee for Mineral
Reserves International Reporting Standards (CRIRSCO), initially a committee of the
Council of Mining and Metallurgical Institutions (CMMI), has, since 1994, been working
to create a set of standard definitions for the reporting of Mineral Resources and
Mineral Reserves.
As a result of the CRIRSCO/ICMM initiative, considerable progress has been made
towards widespread adoption of globally consistent reporting standards. These are
embodied in similar Codes, guidelines and standards published and adopted by the
relevant professional bodies around the world.
The definitions in this edition of the SAMREC Code are either identical to, or not
materially different from, those existing standard definitions published in the CRIRSCO
Reporting Template 2013.

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INTRODUCTION
2 The Code is applicable to the reporting of all styles of solid mineralisation or economic
deposit. Certain commodities, namely coal, diamonds/gemstones and industrial
minerals, have specific additional reporting requirements and these are dealt with from
Clause 48 onwards. The Code does not apply to oil, gas or water. The South Africa
Oil and Gas Code (SAMOG) is applicable for oil and gas.
In this third edition of the SAMREC Code, which supersedes all previous editions, the
Code is presented predominantly in normal typeface. Definitions are highlighted in
bold text in orange boxes and form part of the Code. Guidelines are in italics in
grey boxes and are placed after the respective Code clauses to provide assistance and
guidance to readers when interpreting the Code.
The SSC recognises that further reviews and revisions of the Code may be required.
Additional information, rules, lists and best-practice guidelines will be published on the
SSC website (www.samcode.co.za) from time to time, after due process has been
followed.

SCOPE
3 The Code sets out a required minimum standard for the Public Reporting of Exploration
Results, Mineral Resources and Mineral Reserves. References in the Code to Public
Report or Public Reporting pertain to those reports detailing Exploration Results,
Mineral Resources and Mineral Reserves and which are prepared as information for
investors or potential investors and their advisers.
Although the Code is a required minimum standard for Public Reporting, the SSC
Committee recommends its adoption as a minimum standard for other reporting.

Definition Public Reports are reports prepared for the purpose of informing investors
or potential investors and their advisers on Exploration Results, Mineral
Resources or Mineral Reserves. They include, but are not limited to,
annual and quarterly company reports, press releases, information
memoranda, technical papers, website postings and public presentations.

These Public Reports may be in printed or electronic media (including social media) and
will include JSE circulars, reports as required by the Companies Act, reports for other
regulatory authorities or as required by law.

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Guidance For companies issuing annual reports or other summary reports, all material
information relating to Exploration Results, Mineral Resources and Mineral
Reserves shall be included. Where a summary is presented, it should be clearly
stated that it is a summary, with a reference attached giving the location of the
Public Reports or Public Reporting as reported under the Code on which the
summary is based. Companies and other entities are encouraged to provide
information that is as comprehensive as possible in their Public Reports.

A company’s direct economic interest in the operation / project should be

declared and the basis for the determination should be disclosed.

It is recognised that companies may be required to issue reports for more than
one regulatory jurisdiction, with compliance standards other than those contained
in the Code. It is recommended that such reports should include a statement
alerting the reader to this. Reference in the Code to ‘documentation’ pertains to
company documents or Competent Persons’ Reports prepared as a basis for, or
in support of, a Public Report. It is recognised that situations may arise in which
such supporting documentation, prepared by Competent Persons for company or
other private use, may not specifically be prepared in terms of the guidelines of
the Code. In such situations, it is recommended that the documentation should
include a prominent statement to this effect.

Public Reporting refers to any documentation which may find its way into the
public domain. It refers not only to reporting or documentation by companies
listed on a Securities Exchange, but also includes documents compiled by/for
private companies or individuals. While every effort has been made within the
Code to cover most situations likely to be encountered in Public Reporting, there
may be occasions when doubt exists as to the appropriate form of disclosure. On
such occasions, users of the Code and those compiling reports to comply with the
Code should be guided by its intent, which is to provide a minimum standard for
Public Reporting and the guidelines of materiality, transparency and competence,
and to ensure that such reporting contains all information which stakeholders,
interested parties, investors and their professional advisers would reasonably
require, and reasonably expect to find in the report, for the purpose of making of
a reasoned and balanced judgment regarding the Exploration Results, Mineral
Resources or Mineral Reserves being reported.

Estimation of Mineral Resources and Mineral Reserves is inherently subject to

some level of uncertainty and inaccuracy. Considerable skill and experience may
be needed to interpret pieces of information, such as geological maps and
analytical results based on samples that commonly represent only a small part of
a mineral deposit. The uncertainty in the estimates should be discussed in
documentation or Competent Persons’ Reports and, where material, in Public
Reports, and reflected in the appropriate choice of Mineral Reserve and Mineral
Resource categories.

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4 The Code takes into account issues of a global nature while addressing certain
circumstances unique to South Africa. The following principles must be considered in
the application of the Code:
Materiality: A Public Report contains all the relevant information that investors and
their professional advisors would reasonably require, and expect to find, for the
purpose of making a reasoned and balanced judgement regarding the Exploration
Results, Mineral Resources and Mineral Reserves being reported.
Transparency: The reader of a Public Report must be provided with sufficient
information, the presentation of which is clear and unambiguous, to understand the
report and not be misled.

Guidance The Competent Person should not remain silent on any issue for which the
presence or absence of comment could impact the public perception or value of
the deposit.

Competency: The Public Report is based on work that is the responsibility of suitably
qualified and experienced persons who are subject to an enforceable Professional Code
of Ethics.

Guidance The author of the Public Report should be satisfied that: his/her work has not been
unduly influenced by the organisation, company or person commissioning a report
or any report that may be deemed a Public Report; that all assumptions are
documented; and adequate disclosure is made of all material aspects that the
informed reader may require in order to make a reasonable and balanced
judgement thereof.

5 The Code is applicable to all solid minerals for which Public Reporting of Exploration
Results, Mineral Resources and Mineral Reserves is required. Minerals are defined as
any substance occurring naturally in or on the Earth, in or under water or in tailings,
residue or low grade stockpiles, and having been formed by or subjected to a geological
process and including sand, stone, rock, gravel, clay, soil and any mineral occurring in
stockpiles or in residue deposits but excluding water, oil and gas.

6 Table 1 provides a list of the main criteria that must be considered and reported upon
when reporting on Exploration Results, Mineral Resources and Mineral Reserves
In the context of complying with the principles of the Code, comments relating to the
items in the relevant sections of Table 1 shall be provided on an ‘if not, why not’ basis
within the Competent Person’s Report. The compilation of Table 1 must be undertaken
for (i) the first-time declaration of Exploration Results, a Mineral Resource or a Mineral
Reserve, and (ii) in instances where these items have materially changed from when
they were last Publicly Reported for significant projects. Reporting on an ‘if not, why
not’ basis ensures that it is clear to an investor or other stakeholders whether items
have been considered and deemed of low consequence or are not yet addressed or
resolved.

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Guidance For the purposes of the Code the phrase ‘if not, why not’ means that each item
listed in the relevant section of Table 1 should be discussed, and if it is not
discussed then the Competent Person should explain why it has been omitted
from the documentation.

A material change could be a change in the estimated tonnage or grade or in the

classification of the Mineral Resource or Mineral Reserve. A material change in
relation to a significant project should be considered by taking into account all of
the relevant circumstances, including the understanding of the deposit and the
style of mineralisation, Modifying Factors etc. This includes considering whether
the change in estimates is likely to have a material effect on the price or value of
the mineral asset or of the company.

Additional disclosure is particularly important where inadequate or uncertain data

affect the reliability of, or confidence in, a statement of Exploration Results; for
example, poor sample recovery, poor repeatability of assay or laboratory results,
etc.

By reporting Exploration Results, Mineral Resources and/or Mineral Reserves in

terms of the guidelines of the Code or where reference is made to the Code,
whether reported publicly or not, the Competent Person takes full responsibility for
the declaration. In these instances, a report detailing all aspects of the work shall
be prepared that should be available, if requested. The report cannot be
reasonably withheld and should be made available within a timeframe relevant to
the immediate situation.

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COMPETENCE AND RESPONSIBILITY

7 Documentation detailing Exploration Results, Mineral Resources and Mineral
Reserves from which a Public Report is prepared must be prepared by, or under the
direction of, and signed by a Competent Person.
8 A Public Report concerning a company’s Exploration Results, Mineral Resources and
Mineral Reserves is the responsibility of the company acting through its Board of
Directors. Any such report must be based on, and fairly reflect, the Exploration
Results, Mineral Resources and Mineral Reserves report(s) and supporting
documentation prepared by a Competent Person. A Public Report shall disclose the
Competent Person’s name, qualifications, professional affiliations and relevant
experience. The Competent Person’s written approval is required for his or her
contribution to the report.
Where any specific documentation is referred to in a Public Report, the written
approval of the author must be obtained as to the form, content and context in which
that documentation is to be included in the Public Report.
Where announcements by companies reference the SAMREC Code, the
announcement must be approved in writing in advance of publication by the relevant
Competent Person.

9 Definition A ‘Competent Person’ is a person who is registered with SACNASP, ECSA

or SAGC, or is a Member or Fellow of the SAIMM, the GSSA, IMSSA or a
Recognised Professional Organisation (RPO). These organisations have
enforceable disciplinary processes including the powers to suspend or
expel a member. A complete list of recognised organisations will be
promulgated by the SSC from time to time. The Competent Person must
comply with the provisions of the relevant promulgated Acts.

10 Definition A Competent Person must have a minimum of five years relevant

experience in the style of mineralisation or type of deposit under
consideration and in the activity which that person is undertaking.

If the Competent Person is estimating or supervising the estimation of Mineral

Resources, the relevant experience must be in the estimation, assessment and
evaluation of Mineral Resources. If the Competent Person is estimating, or
supervising the estimation of Mineral Reserves, the relevant experience must be in the
estimation, assessment, evaluation and assessment of the economic extraction of
Mineral Reserves.
Persons being called upon to sign as a Competent Person must be clearly satisfied in
their own minds that they are able to face their peers and demonstrate competence in
the commodity, type of deposit and situation under consideration.

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Guidance The key qualifier in the definition of a Competent Person is the word ‘relevant’.
Determination of what constitutes relevant experience can be difficult, and common
sense should be exercised. For example, in estimating vein gold mineralisation,
experience in high-nugget, vein-type mineralisation such as tin, uranium etc. will probably
be relevant, whereas experience in massive type deposits may not be. Furthermore, a
person considered competent in evaluating and reporting on alluvial gold deposits should
have considerable experience in this type of mineralisation, because of the characteristics
of gold in alluvial systems, the particle sizing of the host sediment, and the low grades
being quantified. Experience with placer deposits containing minerals other than gold
may not necessarily provide relevant experience.
The key word ‘relevant’ could also mean that it is not always necessary for a person to
have five years’ experience in each and every type of deposit in order to act as a
Competent Person if that person has relevant experience in other deposit types. For
example, a person with twenty years’ experience in Mineral Resource evaluation in a
variety of metalliferous hard-rock deposit types may not require five years’ specific
experience in porphyry copper deposits in order to act as a Competent Person. Relevant
experience in the other deposit types would count towards the required experience in
relation to porphyry copper deposits.
In addition to experience in the style of mineralisation, a Competent Person reporting
Mineral Resources should have sufficient knowledge of sampling and assaying
techniques relevant to the deposit under consideration and be aware of problems that
could affect the reliability of the data. Some appreciation of extraction and processing
techniques applicable to that deposit type would also be important.
If a lead Competent Person is appointed, it is important that the lead Competent Person
accepting overall responsibility for a Mineral Resource or Mineral Reserve report that has
been prepared in whole or in part by others is satisfied that the work of the other
contributors, who may be Competent Persons in their own right, is acceptable and that
the constituent parts of the report have been signed off by such contributors.
The lead Competent Person reporting on Exploration Results or undertaking Mineral
Resource or Mineral Reserve reporting should accept full responsibility for the report and
should not treat the procedure merely as a ‘rubber-stamping’ exercise.
Estimation of Mineral Resources may be a team effort (i.e. involving one person or a
team collecting the data and another person or team preparing the Mineral Resource
estimate). Estimation of Mineral Reserves is a team effort involving a number of technical
disciplines. It is recommended that, where there is a clear division of responsibilities
within a team, each person should accept responsibility for his or her particular
contribution. For example, one person could accept responsibility for the collection of
Mineral Resource data, another for the Mineral Resource estimation process, another for
the mining study, and the lead Competent Person acting as project leader should accept
overall responsibility for the report.
A site visit to or inspection of the mineral property being evaluated should be undertaken
by the Competent Person(s) and appropriate member(s) of the team. If a site visit is not
undertaken, the reasons should be given, which may include non-materiality. Where
work was undertaken prior to the inspection, a declaration by the Competent Person that
the work has been validated and the information can be relied on, should be made.

11 Complaints made in respect of a Public Report of a Competent Person will be subject

to the complaints procedures of the SSC.

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REPORTING TERMINOLOGY
12 Public Reports dealing with Exploration Results, Mineral Resources and Mineral
Reserves shall use only the terms Proved or Probable Mineral Reserves, Measured,
Indicated or Inferred Mineral Resources, and Exploration Results as set out in Figure 1.
Figure 1 sets out the framework for classifying tonnage and grade estimates so as to
reflect different levels of geoscientific confidence and different degrees of technical and
economic evaluation. Mineral Resources can be estimated on the basis of geoscientific
information with some input from other relevant disciplines. Mineral Reserves, which
are modified Indicated and Measured Mineral Resources (shown within the dashed
outline in Figure 1), require consideration of the Modifying Factors affecting extraction.

Definition Modifying Factors are considerations used to convert Mineral Resources

to Mineral Reserves. These include, but are not restricted to, mining,
processing, metallurgical, infrastructure, economic, marketing, legal,
environmental, social and governmental factors.

Measured Mineral Resources may convert to either Proved Mineral Reserves or

Probable Mineral Reserves if there are uncertainties associated with Modifying Factors
that are taken into account in the conversion from Mineral Resources to Mineral
Reserves. The broken arrow in Figure 1 demonstrates this relationship. Although the
trend of the broken arrow includes a vertical component, it does not, in this instance,
imply a reduction in the level of geoscientific knowledge or confidence. In such a
situation these Modifying Factors must be fully explained.

=
Figure 1: Relationship between Exploration Results, Mineral Resources and Mineral
Reserves

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REPORTING: GENERAL
13 Public Reporting concerning a company’s Exploration Results, Mineral Resources and
Mineral Reserves must include a description of the style and nature of mineralisation.
14 A company must disclose relevant information concerning the status and characteristics
of a mineral deposit that could materially influence the economic value of the deposit
and promptly report any material changes in its Exploration Results, Mineral Resources
and Mineral Reserves.
15 When reporting on commodity-specific requirements for Coal Resources and Coal
Reserves, use must be made of Clauses 48 to 59, which contain amendments and
additions that take precedence over all common clauses.
16 When reporting on commodity-specific requirements for Diamond Resources and
Diamond Reserves (or Gemstone Resources and Gemstone Reserves), use must be
made of Clauses 60 to 72, which contain amendments and additions that take
precedence over all common clauses.
17 When reporting on commodity-specific requirements for Industrial Minerals, use must
be made of Clause 73, which contains amendments and additions that take precedence
over all common clauses.
18 When reporting of Exploration Results, Mineral Resources or Mineral Reserves for
polymetallic deposits in terms of metal equivalents, use must be made of Clause 74,
which contains amendments and additions that take precedence over all common
clauses.
19 Throughout the Code, where appropriate, ‘quality’ may be substituted for ‘grade’ while
‘volume’ may be substituted for ‘tonnage’. In the Code, any reference to the singular
shall include a reference to the plural, where appropriate.

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REPORTING OF EXPLORATION RESULTS

20 Definition Exploration Results include data and information generated by mineral
exploration programmes that might be of use to investors, but which do
not form part of a declaration of Mineral Resources or Mineral Reserves

Exploration Results may not be part of a formal declaration of Mineral Resources or

Mineral Reserves and must not be presented in a way that unreasonably implies the
discovery of potentially economic Mineralisation.
Exploration Results must include relevant data and information relating to the mineral
property – both positive and negative.
Exploration data and information may include survey, geological, geophysical,
geochemical, sampling, drilling, trenching, analytical testing, assaying, mineralogical,
metallurgical and other information, where available. At least some physical evidence
of assumed continuity of the Mineralisation on the property of interest must be
presented by the Competent Person.
Historical data and information may also be included if, in the considered opinion of the
Competent Person, it is relevant and reliable, giving reasons for such conclusions.
The data and information may be derived from adjacent or nearby properties if the
Competent Person can provide justification of continuity for such an association. The
actual data and/or information must be appropriately described and presented where
not already in the public domain.

Guidance Balanced reporting is required. Reporting of selected results/data/information such as

isolated assays, isolated drill-holes, assays of panned concentrates or supergene-
enriched soils or surface samples, without placing them into perspective, is therefore
unacceptable. When assay and analytical results are reported, one of the following
methods, selected as the most appropriate by the Competent Person, should be used:
by listing all results along with sample intervals (or size, in the case of bulk samples),
or by reporting weighted average grades of mineralised zones, indicating clearly how
the grades were estimated.

If true widths of Mineralisation are not reported, an appropriate qualifying statement

should be included in the Public Reports.

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REPORTING OF EXPLORATION TARGETS

21 Definition An Exploration Target is a statement or estimate of the exploration
potential of a mineral deposit in a defined geological setting where the
statement or estimate, quoted as a range of tonnes and a range of grade
or quality, relates to mineralisation for which there has been insufficient
exploration to estimate Mineral Resources.

It is recognised that a company may comment on and discuss its Exploration Target in
terms of size and type. However, any such comment in a Public Report must comply
with the following requirements.
An Exploration Target is a concept of mineralisation with respect to type, quantity and
quality, which would be of interest to an exploration or mining company. There must be
a likelihood that this exploration target occurs in an area of geological prospectivity for
that commodity and mineralisation type. An Exploration Target need not represent any
discovered Mineralisation, nor does it imply reasonable prospects for possible
economic extraction.
Any such information relating to an Exploration Target must, however, be expressed so
that it cannot be misrepresented or misconstrued as an estimate of a Mineral Resource
or Mineral Reserve. The terms Resource or Reserve must not be used in this context.
Details of the Exploration Target may not appear in any tabulation of Mineral Resources
or be included in a Scoping Study, Pre-Feasibility or Feasibility study.

Guidance When discussing Exploration Targets, the Competent Person should clearly
describe the rationale for such selection, including the geological model on
which it is based, as well as justification for any statements of conceptual
quantity and quality. In addition, the intended exploration work programme to
explore for the target should be included, detailing the extent of the proposed
exploration activities, the planned timeframe and the anticipated costs. Public
Reporting of an Exploration Target shall not be done unless supported by
exploration. Without an explicit exploration work programme on a specific
mineral property held by the Company, public reporting of an Exploration Target
should be regarded as being solely speculative.

‘Mineralisation’ as used in the Code, is defined as a concentration (or occurrence) of

material of possible economic interest, in or on the Earth’s crust, for which quantity and
quality cannot be estimated with sufficient confidence to be defined as a Mineral
Resource.
Mineralisation is not classified as a Mineral Resource or Mineral Reserve and can only
be reported under Exploration Results. The data and information relating to it must be
sufficient to allow a considered and balanced judgement of its significance.

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22 Any information relating to Exploration Results, Exploration Targets or Mineralisation

must not be expressed or misrepresented as an estimate of Mineral Resource or
Mineral Reserve. The term Mineral Resource(s) or Mineral Reserves(s) must not be
used in this context. Any statement referring to potential quantity, quality and content,
as appropriate, must be substantiated and include a detailed explanation of the basis
for the statement and a proximate statement, with the same prominence, that the
potential quantity, quality and content, as appropriate, are conceptual in nature, that
there has been insufficient exploration to define a Mineral Resource and that it is
uncertain if further exploration could result in the determination of a Mineral Resource.
A cautionary statement may not be by way of a footnote and a general disclaimer
elsewhere in the disclosure document will not satisfy this requirement.

Guidance ‘Same prominence’ is defined as the same font type and size, and ‘proximate
location’ is defined as the cautionary statement being included in the same
paragraph as or immediately following the reported Exploration Results.

Where the statement includes information relating to ranges of tonnages and grades
these must be represented as approximations. The explanatory text must include a
description of the process used to determine the grade and tonnage ranges used to
describe the Exploration Target or Mineralisation.

Guidance Any statement referring to quantity and quality should reflect the lack of reliable
data. The conceptual nature of the statement should be expressed either
through the use of ’order of magnitude’, including appropriate descriptive terms
(such as ‘approximately’, ‘in the order of’, etc.), or as ’ranges’, which is defined
as the variation between the lowest and highest relevant Exploration Results –
the use of ranges in this context has no statistical relevance.
Appropriate rounding should be used to express the level of uncertainty of the
estimates. By way of example, ’approximately one to two million tonnes at a
grade of 3-5% Cu’ or ’an Exploration Target of more than 100 million tonnes of
coal in excess of 16 MJ/kg for power generation markets’ would be acceptable,
but not ’2 ±0.2 million tonnes’. When estimates are quoted, statements of both
quantity and quality should be provided. It is not permissible to quote one
without the other.
Estimates of potential quantity and quality should, preferably, be made in terms
of volume (or area) and not tonnage. If, however, target tonnages are reported
then the preliminary estimates, or basis of assumptions, made for bulk density
should be stated.

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23 Given the level of uncertainty surrounding the supporting data, the tonnage or grade of
Mineralisation or an Exploration Target must not be reported as a ‘headline statement’
in a Public Report.
If Mineralisation or an Exploration Target is shown pictorially (for instance as cross-
sections or maps) or with a graph, it must be accompanied by text that meets the
requirements above (Clauses 21 and 22).
A Public Report that includes Mineralisation or an Exploration Target must be
accompanied by a Competent Person’s statement taking responsibility for the form and
context in which the Mineralisation or Exploration Target appears in the Report.

REPORTING OF MINERAL RESOURCES

24 Definition 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, continuity and other geological
characteristics of a Mineral Resource are known, estimated or interpreted
from specific geological evidence and knowledge, including sampling.

Mineral Resources are subdivided, and must be so reported, in order of increasing

confidence in respect of geoscientific evidence, into Inferred, Indicated or Measured
categories.
Any Mineralisation that does not have demonstrated reasonable prospects for eventual
economic extraction may not be included in a Mineral Resource. The Competent
Person must disclose and discuss the parameters used to support the concept of
‘eventual’.
Geological evidence and knowledge required for the estimation of Mineral Resources
must include sampling data of a type, and at spacings, appropriate to the geological,
chemical, physical, and mineralogical complexity of the mineral occurrence, for all
classifications of Inferred, Indicated and Measured Mineral Resources.
A Mineral Resource cannot be estimated in the absence of sampling information.
For each category of Mineral Resource, the basis of classification must be disclosed
(Table 1).

Guidance The term Mineral Resource covers in-situ Mineralisation as well as residues,
low grade stockpiles or tailings that have been identified and estimated through
exploration or assessment and sampling and from which Mineral Reserves may
be derived by the application of Modifying Factors.
A Mineral Resource is not an inventory of all Mineralisation drilled or sampled,
regardless of cut-off grades, likely mining dimensions, location or continuity. It
is a record of Mineralisation that, at the time of reporting and under assumed
and justifiable technical and economic conditions, might become economically

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extractable. Any Mineralisation that does not qualify as a Mineral Resource

should not be described as such. Certain reports (e.g. exploration/prospecting
reports to Government and other similar reports not intended primarily for
providing information for investment purposes) may require full disclosure of all
Mineralisation, including some material that does not have reasonable
prospects for eventual economic extraction. Such estimates of Mineralisation
would not qualify as Mineral Resources or Mineral Reserves in terms of the
SAMREC Code.
Reasonable prospects for eventual economic extraction should be
demonstrated through the application of an appropriate consideration of the
potential viability of Mineral Resources. Such a consideration should include a
reasoned assessment of the geological, mining engineering, processing,
metallurgical, legal, infrastructural, environmental, marketing, socio-political and
economic assumptions which, in the opinion of the Competent Person, are likely
to influence the prospect of economic extraction. All of the issues listed in Table
1, under ’Reasonable prospects for eventual economic extraction’ should be
discussed at the level appropriate for the specific investigation.
If criteria such as deleterious minerals or physical properties are of more
relevance than the composition of the bulk mineral itself, then they should be
reported accordingly.
The determination of reasonable prospects for eventual economic extraction
should be based on the principle of reasonableness and should be justifiable
and defendable. The assumptions used to test for reasonable prospects should
be reasonable and within known/assumed tolerances or have examples of
precedence. These assumptions should be applied at an appropriate and
reasonable scale and may differ from those used for conversion of Mineral
Resources to Mineral Reserves and should be appropriate to the definition of
Mineral Resources in terms of precision, accuracy, degree of confidence and
variability.
Where untested practices are applied in the determination of ‘reasonable
prospects’, the use of the proposed practices for reporting of the Mineral
Resource should be justified by the Competent Person in the Public Report.
Interpretation of the word ‘eventual’ in this context may vary depending on the
commodity, mineral involved or legal tenure. For example, for many
occurrences of coal, iron ore, bauxite and other bulk minerals or commodities, it
may be reasonable to envisage a life of mine of 50 years or more. However, for
other deposits, application of the concept would normally be restricted to a life
of mine of perhaps 20 to 30 years and frequently much shorter periods.
Any adjustment made to the data for the purpose of making the Mineral
Resource estimate, for example by cutting or factoring grades, or any other
relevant assumptions, should be clearly described in the Public Report. Should
part or all of the anticipated mining take place after the tenement has expired, it
should be stated in the Public Report.
Where considered appropriate by the Competent Person, Mineral Resource
estimates may include Mineralisation below the selected cut-off grade to ensure
that the Mineral Resource consists of bodies of Mineralisation of adequate

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grade, quality, size and continuity to properly consider the most appropriate
approach to mining, including any dilution or contamination resulting from the
requirements of any minimum mining width (in addition to cut-off grades,
Mineral Resources can also be defined by geological constraints, which may
include, but are not limited to, structure, stratigraphic boundaries, or
geometallurgical/mineralogical constraints). Documentation of Mineral
Resource estimates should clearly define any such inclusions, and Public
Reports should include commentary on the matter, if considered material.

25 Definition An Inferred Mineral Resource is that part of a Mineral Resource for which
quantity and grade or quality are estimated on the basis of limited
geological evidence and sampling. Geological evidence is sufficient to
imply but not verify geological and grade or quality continuity.
An Inferred Resource has a lower level of confidence than that applying to
an Indicated Mineral Resource and must not be converted to a Mineral
Reserve.
It is reasonably expected that the majority of Inferred Mineral Resources
could be upgraded to Indicated Mineral Resources with continued
exploration.

Where the Mineral Resource being reported is predominantly an Inferred Mineral

Resource, sufficient supporting information must be provided to enable the reader to
evaluate and assess the risk associated with the reported Mineral Resource.
An Inferred Mineral Resource can be based on interpolation between widely spaced
data where there is reason to expect geological continuity of Mineralisation. The extent
of extrapolation outside of the nominal drill or sampling grid spacing must be justified.
The report must contain sufficient information to inform the reader of:
• The maximum distance that the Mineral Resource is extrapolated beyond the
sample points;
• The proportion of the Mineral Resource that is based on extrapolated data;
• The basis on which the Mineral Resource is extrapolated to these limits; and
• A diagrammatic representation of the Inferred Mineral Resource showing clearly
the extrapolated part of the estimated Resource.

Guidance This category is intended to cover situations in which a mineral concentration or

occurrence has been identified and limited measurements and sampling have
been completed, but in which the data are insufficient to allow the geological or
grade continuity to be interpreted with confidence.
While it would be reasonable to expect that the majority of Inferred Mineral
Resources would upgrade to Indicated Mineral Resources with continued
exploration, due to the uncertainty of Inferred Mineral Resources, it should not
be assumed that such upgrading will always occur.

26 It is accepted that mine design and planning may include a proportion of Inferred
Mineral Resources. If this category is considered in mine design, mine planning or
economic studies, the results of which are publicly reported, full disclosure must be

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made and the effect on the results of the studies must be stated. Inferred Mineral
Resources may be included in mine design, mine planning and economic studies only if
a mine plan exists and a statement of Mineral Reserves that states that Inferred Mineral
Resources have been used. Where a material amount of mining in the mine plan
includes Inferred Mineral Resources, a comparison of the results with and without these
Inferred Mineral Resources must be shown, and the rationale behind their inclusion
must be explained.
Modifying Factors and assumptions that were applied to the Indicated and Measured
Mineral Resources to determine the Mineral Reserves must be equally applied to the
Inferred Mineral Resources if included in the Life of Mine Plan.
Inferred Mineral Resources cannot be converted to Mineral Reserves and must not be
stated as part of the Mineral Reserve.

27 Definition An Indicated Mineral Resource is that part of a Mineral Resource for which
quantity, grade or quality, densities, shape and physical characteristics are
estimated with sufficient confidence to allow the application of Modifying
Factors in sufficient detail to support mine planning and evaluation of the
economic viability of the deposit.
Geological evidence is derived from adequately detailed and reliable
exploration, sampling and testing and is sufficient to assume geological and
grade or quality continuity between points of observation.

Guidance An Indicated Mineral Resource has a lower level of confidence than that applying to a
Measured Mineral Resource and may only be converted to a Probable Mineral
Reserve. An Indicated Mineral Resource has a higher level of confidence than that
applying to an Inferred Mineral Resource.
A deposit or part of a deposit may be classified as an Indicated Mineral Resource
when the nature, quality, amount and distribution of data are such as to allow the
Competent Person determining the Mineral Resource to confidently interpret the
geological framework and to assume physical and grade continuity of Mineralisation.
Confidence in the estimate is sufficient to allow the appropriate application of
technical and economic parameters to prepare incremental mine plans and production
schedules and to enable an evaluation of economic viability. Overall confidence in
the estimates is high, while local confidence is reasonable. The Competent Person
should recognise the importance of the Indicated Mineral Resource category in the
advancement of the feasibility of the project.
An Indicated Mineral Resource estimate should be of sufficient quality to support
detailed technical and economic studies leading to Probable Mineral Reserves which
can serve as the basis for development decisions. It is imperative that data exists in
the area of the Indicated Mineral Resource.

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28 Definition A Measured Mineral Resource is that part of a Mineral Resource for which
quantity, grade or quality, densities, shape, and physical characteristics
are estimated with confidence sufficient to allow the application of
Modifying Factors to support detailed mine planning and final evaluation
of the economic viability of the deposit.
Geological evidence is derived from detailed and reliable exploration,
sampling and testing and is sufficient to confirm geological and grade or
quality continuity between points of observation.
A Measured Mineral Resource has a higher level of confidence than that
applying to either an Indicated Mineral Resource or an Inferred Mineral
Resource. It may be converted to a Proved Mineral Reserve or to a
Probable Mineral Reserve.

Depending upon the level of confidence in the various Modifying Factors it may be
converted to a Proved Mineral Reserve (high confidence in Modifying Factors),
Probable Mineral Reserve (some uncertainty in Modifying Factors) or may not be
converted at all (low or no confidence in some of the Modifying Factors; or no plan to
mine, e.g. pillars in an underground mine or outside economic pit limits).

Guidance A Measured Mineral Resource requires that the nature, quality, amount and
distribution of data are such as to leave the Competent Person with no
reasonable doubt that the tonnage and grade of the Mineralisation can be
estimated to within close limits and any variation within these limits would not
materially affect the economics of extraction. This category requires a high
level of confidence in, and understanding of, the geology and the controls on
mineralisation.
A Measured Mineral Resource estimate should be of sufficient quality to support
detailed technical and economic studies leading to Mineral Reserves which can
serve as the basis for major development decisions.

29 The Competent Person responsible for the Resource estimate must determine the
appropriate Mineral Resource category based upon the quantity, distribution and quality
of data available and the level of confidence attached to the data with reference to
Table 1. The method of determining these confidence levels must be disclosed.

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Guidance Mineral Resource classification is a matter for skilled judgement and a

Competent Person should take into account those items in Table 1 that relate to
confidence in Mineral Resource estimation.
In many cases it will be understood that overall tonnages, densities, shapes, physical
characteristics, grades or qualities and mineral contents can be estimated with higher
levels of confidence, and local tonnages, densities, shapes, physical characteristics,
grades or qualities and mineral contents can be estimated only with lower levels of
confidence, insufficient for detailed mine planning.
The Competent Person should take into consideration issues of the style of
mineralisation and cut-off grade when assessing geological and grade continuity
for the purposes of classifying the Mineral Resource.
Cut-off grades chosen for the estimation should be realistic in relation to the
style of mineralisation and the anticipated mining and metallurgical development
options.

30 The Mineral Resource statement is a summary report of the Mineral Resource

estimates, with key assumptions used in their derivation as per the guidelines in Table
1. Details regarding Exploration Targets, Exploration Results or Mineralisation may not
be included in Mineral Resource statements.
31 Public Reports of Mineral Resources must specify one or more of the categories of
‘Inferred’, ‘Indicated’ or ‘Measured’. Reports must not contain Mineral Resource
information combining two or more of the categories unless information for the
individual categories is also provided.
Mineral Resources must not be aggregated with Mineral Reserves. This is not to be
confused with inclusive reporting of Mineral Reserves.

Guidance Estimates of tonnage and grade outside of the categories covered by the Code
may be useful for a company in its internal calculations and evaluation
processes, but their inclusion in Public Reports is not permitted.
Mineral Resource estimates are sometimes reported after adjustment from
reconciliation with production data. Such adjustments should be clearly stated
in a Public Report of Mineral Resources and the nature of the adjustment or
modification described.

32 A Mineral Resource must not be reported in terms of contained mineral content (or
metal equivalents) unless corresponding tonnages and grades of individual elements
(and recoveries) are also reported.
33 The words ‘Ore’ and ‘Reserves’ must not be used in stating Mineral Resources. These
terms imply a level of technical feasibility and economic viability and are appropriate
only when all relevant Modifying Factors have been applied. Reports and statements
must continue to refer to the appropriate category or categories of Mineral Resources
until technical feasibility and economic viability have been established. If re-evaluation
indicates that the Mineral Reserve is no longer viable, the Mineral Reserves must be
reclassified as Mineral Resources or removed from Mineral Resource/Reserve
statements.

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Guidance It is not intended that reclassification from Mineral Reserves to Mineral

Resources or vice versa should be applied as a result of changes expected to
be of a short term or temporary nature. Examples of such situations might be
commodity price fluctuations expected to be of short duration, mine
emergencies of a non-permanent nature, transport strike, etc.

34 Mineral Resource estimates are not precise calculations, being dependent on the
interpretation of limited information about the location, shape and continuity of the
occurrence and on the available sampling results.

Guidance Rounding off should convey the uncertainties in estimation.

In order to emphasise the imprecise nature of a Mineral Resource estimate, the
final results should always be referred to as an estimate, not a calculation, and
Inferred Mineral Resources should be qualified with terms such as
‘approximately’.
Competent Persons are encouraged, where appropriate, to discuss the relative
accuracy and confidence level of the Mineral Resource estimates with
consideration of at least sampling, analytical and estimation errors. The
statement should specify whether it relates to global or local estimates, and, if
local, state the relevant tonnage. Where a statement of the relative accuracy
and confidence level is not possible, a qualitative discussion of the uncertainties
should be provided in its place (refer to Table 1).

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REPORTING OF MINERAL RESERVES

35 Definition A Mineral Reserve is the economically mineable part of a Measured and/or
Indicated Mineral Resource.
It includes diluting materials and allowances for losses, which may occur
when the material is mined or extracted and is defined by studies at Pre-
Feasibility or Feasibility level as appropriate that include application of
Modifying Factors. Such studies demonstrate that, at the time of
reporting, extraction could reasonably be justified.
The reference point at which Mineral Reserves are defined, usually the
point where the ore is delivered to the processing plant, must be stated. It
is important that, in all situations where the reference point is different,
such as for a saleable product, a clarifying statement is included to ensure
that the reader is fully informed as to what is being reported.

Mineral Reserves are reported as inclusive of diluting and contaminating material

delivered for treatment or dispatched from the mine without treatment. To avoid
confusion in reporting Mineral Reserves, the definition of treatment is taken to include
any beneficiation of the raw product that might take place before or during the
metallurgical process. For clarity, tonnages and grades of saleable product may be
reported for certain commodities, with clear descriptions indicating such.

Guidance Commodity prices and exchange rates used for Mineral Reserve estimation
should be disclosed.
For commodities traded on metal exchanges, reasonable forward-looking prices
should be used. Such prices should be based on historic price averages and
should be disclosed. However, for commodities not traded on metal exchanges,
it is recognised that disclosure of a specific price may put a company at a
competitive disadvantage, and this should be stated.
When commodity prices are disclosed, disclosure can be as a single price
estimate equal to that used for Mineral Reserve determination, or as a range of
prices within which no material change in Mineral Reserves would occur.
Whether or not the commodity prices used to estimate Mineral Reserves are
published, the method used to determine those prices should be disclosed.
Such disclosure should be in a manner that helps investors determine whether,
in their own opinion, the stated prices represent reasonable views of the future.
Mineral Reserves are subdivided in order of increasing confidence into Probable
and Proved Mineral Reserves. For each category of Mineral Reserve, the
confidence levels in the Modifying Factors should be disclosed.
The term ‘economically mineable’ implies that extraction of the Mineral Reserve
has been demonstrated as viable and justifiable under a defined set of
realistically assumed Modifying Factors and application of the requirements of a
Pre-feasibility or Feasibility Study. What constitutes the term ‘realistically
assumed’ will vary with the type of deposit, the level of study that has been

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carried out, and the economic criteria of the reporting entity. Deriving a Mineral
Reserve without a mine design or mine plan through a process of factoring of the
Mineral Resource is unacceptable.
If there is doubt about what should be reported, it is better to provide too much
information rather than too little. Any adjustment to the data for the purpose of
making the Mineral Reserve estimate, for example by cutting or factoring grades
or applying any other modifying factor, should be clearly described in the Public
Report.
When reporting Mineral Reserves, a sensitivity analysis should be conducted.
The disclosure of commodity price and other economic assumptions used for
this analysis is recommended
The Code does not imply that an economic operation should have Proved
Mineral Reserves. Situations may arise in which Probable Mineral Reserves
alone may be sufficient to justify extraction, as for example with some alluvial tin,
diamond or gold deposits. This is a matter for judgement by the Competent
Person.

36 Definition A Probable Mineral Reserve 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.

37 Definition A Proved Mineral Reserve is the economically mineable part of a Measured

Mineral Resource. A Proved Mineral Reserve implies a high degree of
confidence in the Modifying Factors.

38 The categorisation of a Mineral Reserve is governed by the relevant level of confidence

of the Mineral Resource and the Modifying Factors and must be made by the
Competent Person.

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Guidance The Code provides for a direct relationship between the criteria applied to
Indicated Mineral Resources and Probable Mineral Reserves and between the
criteria applied to Measured Mineral Resources and Proved Mineral Reserves.
In other words, the level of geoscientific confidence for Probable Mineral
Reserves is similar to that required for the determination of Indicated Mineral
Resources. The level of geoscientific confidence for Proved Mineral Reserves is
similar to that required for the determination of Measured Mineral Resources.
Inferred Mineral Resources are always additional to Mineral Reserves and
should be quoted as such.
The Code also provides for a relationship between Measured Mineral Resources
and Probable Mineral Reserves. This is to cover the situation in which
uncertainties associated with any of the Modifying Factors considered when
converting a Mineral Resource to a Mineral Reserve result in a lower degree of
confidence in the Mineral Reserve than in the corresponding Mineral Resource.
Such a conversion would not imply a reduction in the level of geoscientific
knowledge or confidence.
A Probable Mineral Reserve derived from a Measured Mineral Resource may be
converted to a Proved Mineral Reserve if the uncertainties in the Modifying
Factors are reduced. No amount of confidence in the Modifying Factors for
conversion of a Mineral Resource into a Mineral Reserve can override the upper
level of confidence that exists in the Mineral Resource. Under no circumstances
can an Indicated Mineral Resource be converted directly to a Proved Mineral
Reserve (Figure 1).
Application of the category of Proved Mineral Reserves implies the highest
degree of confidence in the estimate, with consequent expectations in the minds
of the readers of the Public Report. These expectations should be borne in mind
when categorising a Mineral Resource as Measured.

39 Mineral Reserve estimates are not precise calculations, and tonnages and grades must
be expressed so as to convey the order of accuracy of the estimates by rounding off to
appropriately significant figures...

Guidance Rounding off should convey the uncertainties in estimation.

In order to emphasise the imprecise nature of a Mineral Reserve estimate, the
final results should always be referred to as an estimate, not a calculation

40 Public Reports of Mineral Reserves must not contain combined Proved and Probable
Mineral Reserves unless the relevant information for each of the categories is also
provided. Reports must not present mineral contents unless corresponding tonnages
and grades are given. Reporting using metal equivalents must be in accordance with
Clause 74.

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Guidance Mineral Reserves may incorporate diluting and contaminating material that is not
part of the original Mineral Resource. It is essential to bear in mind this
fundamental difference between Mineral Resources and Mineral Reserves.
Caution should be exercised if attempting to draw conclusions from a
comparison of the two.
Public Reporting of tonnages and grades outside the categories covered by the
Code is not permitted, although the information may be useful to a company in
its internal evaluations.

41 When revised Mineral Resource and Mineral Reserve statements are publicly reported,
they must be reconciled with previous statements. A detailed account of differences
between the figures is not essential, but sufficient comment must be made to enable
material variances to be understood by the reader.
42 In situations in which both Mineral Resources and Mineral Reserves are reported, the
Public Report must include a statement that clearly indicates whether the Mineral
Resources are inclusive of, or additional to, those Mineral Resources that have been
modified to produce Mineral Reserves.

Guidance In some situations, there are reasons for reporting Mineral Resources inclusive
of Mineral Reserves. In other situations, there are reasons for reporting Mineral
Resources additional to Mineral Reserves. It should be made clear which form
of reporting has been adopted. Appropriate forms of clarifying statements may
be:
‘The Measured and Indicated Mineral Resources are inclusive of those modified
to produce Mineral Reserves’ or ‘The Measured and Indicated Mineral
Resources are additional to Mineral Reserves’.
In the first example, if any Mineral Resources have not been modified to produce
Mineral Reserves for economic or other reasons, the relevant details of these
unmodified Mineral Resources should be included in the Public Report. This is
to help the reader judge the likelihood of the unmodified Measured and Indicated
Mineral Resources eventually being converted to Mineral Reserves.
For reasons stated in the first guideline of Clause 40 and in this paragraph, the
reported Mineral Reserve cannot be added to the reported Mineral Resource.
The resulting total is misleading and is capable of being misunderstood or, more
seriously, misused to give a false impression of a company’s prospects.

43 The above clauses apply equally to low-grade Mineralisation, often intended for
stockpiling and treatment towards the end of the life of the mine.
If some portion of stope-fill or stockpile, residue or low-grade stockpiles, remnants,
pillars and tailings is currently sub-economic, but there is a reasonable expectation that
it will become economic, then this material may be classified as a Mineral Resource. If
technical and economic studies have demonstrated that economic extraction could be
reasonably justified under realistically assumed conditions, then the material may be
classified as a Mineral Reserve.
If there are no reasonable prospects for the economic extraction of a particular portion
of the above-mentioned material, then this material cannot be classified as either

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Mineral Resources or Mineral Reserves. Mineralised remnants, shaft pillars and mining
pillars that are not potentially mineable must not be included in Mineral Resource and
Mineral Reserve statements.
For clarity of understanding, the tonnage and grade estimates of such material must be
itemised separately as Mineral Resources or Mineral Reserves in Public Reports,
although they may be aggregated in total Mineral Resources and total Mineral
Reserves.

TECHNICAL STUDIES
44 A mining project typically passes through exploration, Mineral Resource estimation and
design phases; each of which involves rapidly escalating levels of investment. Each
phase requires an increasing level of economic and technical assessment with
increasing levels of confidence for the project design, scheduling, costs and risks; to
justify progression of the project to the next investment level.

Guidance Table 2 provides guidance in terms of the level of Technical Studies.

The Code does not require that a full Feasibility Study has to be undertaken to
convert Mineral Resources to Mineral Reserves, but it does require that at least
a Pre-Feasibility Study or Life of Mine Plan will have been carried out to
determine that the mine plan/production profile is technically achievable and
economically viable, and that material Modifying Factors have been considered
to an appropriate level of confidence.
During early exploration, some level of economic analysis may be carried out by
a company on exploration data which might not include Mineral Resource
estimates to assess the potential for the project to proceed to the next phase of
exploration. These analyses are considered to be a part of the exploration
programme planning and are solely for internal company decision-making
purposes. They are not for public disclosure.

45 Definition A Scoping Study is an order of magnitude technical and economic study of

the potential viability of Mineral Resources that includes appropriate
assessments of realistically assumed Modifying Factors together with any
other relevant operational factors that are necessary to demonstrate at the
time of reporting that progress to a Pre-Feasibility Study can be
reasonably justified.

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Guidance The accuracy of a Scoping Study should be informed by Table 2 and

assumptions based on industry benchmarks, vendor productivity information and
the experience of the Competent Person.
If Inferred Mineral Resources are used the required disclosure as set out in
Clause 26 of the Code should be applied and the entity should include a
proximate cautionary statement with the same prominence, such as:
‘The Scoping Study referred to in this report is based on preliminary technical
and economic assessments. It is preliminary in nature and includes Inferred
Mineral Resources which are insufficient to provide certainty that the conclusions
of the Scoping Study will be realised.’
A Scoping Study may not include historical estimates, Exploration Results,
Exploration Targets or Mineralisation.
A Scoping Study should include appropriate assessments of realistically
assumed Modifying Factors together with any other relevant operational factors
that are necessary for the Competent Person to demonstrate, at the time of
reporting, whether or not the project is potentially viable and if it can be
reasonably justified to recommend proceeding to a Pre-Feasibility Study.
Although initial mining and metallurgical plans may have been developed during
a Scoping Study, the Scoping Study may not be used as the basis for the
estimation of Mineral Reserves.

46 Definition A Pre-Feasibility Study is a comprehensive study of a range of options for

the technical and economic viability of a mineral project that has advanced
to a stage where a preferred mining method, in the case of underground
mining, or the pit configuration, in the case of an open pit, is established
and an effective method of mineral processing is determined. It includes a
financial analysis based on reasonable assumptions on the Modifying
Factors and the evaluation of any other relevant factors which are
sufficient for a Competent Person, acting reasonably, to determine if all or
part of the Mineral Resource may be converted to a Mineral Reserve at the
time of reporting. A Pre-Feasibility Study is at a lower confidence level
than a Feasibility Study

Guidance The purpose of the Pre-Feasibility Study (PFS) is to provide information to justify
the decision to proceed to a Feasibility Study, to continue data collection and
assessment, or to abandon the project. It is the lowest acceptable level of study
for the conversion of Mineral Resources to Mineral Reserves.

The accuracy of the inputs to a PFS should be informed by Table 2 and derived
from vendor budget quotes for major items combined with current cost database,
benchmarking against similar projects with current or similar site labour costs,
scale of operations and productivities etc.

A PFS may include Measured and Indicated Mineral Resources, or a

combination of these. If Inferred Mineral Resources are used the required
disclosure as set out in Clause 26 of the Code should be applied. No part of an

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Inferred Mineral Resource may contribute to a Mineral Reserve.

Historical estimates, Exploration Results, Exploration Targets and Mineralisation
may not be included in a PFS.

47 Definition A Feasibility Study is a comprehensive technical and economic study of

the selected development option for a mineral project that includes
appropriately detailed assessments of applicable Modifying Factors
together with any other relevant operational factors and detailed financial
analysis that are necessary to demonstrate at the time of reporting that
extraction is reasonably justified (economically mineable). The results of
the study may reasonably serve as the basis for a final decision by a
proponent or financial institution to proceed with, or finance, the
development of the project. The confidence level of the study will be
higher than that of a Pre-Feasibility Study

Guidance The accuracy of the inputs for a Feasibility Study (FS) should be informed by
Table 2 and should be derived from multiple vendor quotes for major items
combined with a current cost database, current site labour costs, site specific
productivities, detailed materials cost to site, etc.

REPORTING OF COAL EXPLORATION

RESULTS, COAL RESOURCES AND COAL
RESERVES
48 This part of the Code addresses matters specific to the Public Reporting of Coal
Resources and Coal Reserves. Clauses 1 to 47 of this Code also apply to the Public
Reporting of Coal Resources and Coal Reserves, unless otherwise stated in this part of
the Code. However, the term ‘Coal’ must replace the terms ‘Mineral’ and ‘Ore’; ‘coal
deposit’ must replace ‘mineralisation’; ‘coal quality’ must replace ‘grade’; and ‘yield’ must
replace ‘mineral content’ throughout both the Code and the guidelines. For Coal
Reserves, all references to ‘metallurgical’ Modifying Factors must be replaced by ‘coal
processing’ Modifying Factors.
49 Addition to Clause 6.
‘The Systematic Evaluation of Coal Deposits, Coal Exploration Results, Inventory Coal,
Coal Resources and Coal Reserves’ (SANS 10320) provides the methodologies and
definitions of the relevant terms that must be considered when preparing reports on Coal
Resources and Coal Reserves.
50 Replacement of Figure 1 with Figure 2, which is Coal-specific
Public Reports of Coal Exploration Results, Coal Resources and Coal Reserves must
use only the terms set out in Figure 2. Any reference to ‘Figure 1’ in the Code must be
substituted by a reference to ‘Figure 2’.

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51 Amendment to Clause 25

Definition An ‘Inferred Coal Resource’ is that part of a Coal Resource for which
quantity and coal quality are estimated on the basis of limited geological
evidence and sampling. Geological evidence is sufficient to imply but not
verify geological and grade or quality continuity. An Inferred Coal
Resource has a lower level of confidence than that applying to an
Indicated Coal Resource and must not be converted to a Coal Reserve. It
is reasonably expected that the majority of Inferred Coal Resources could
be upgraded to Indicated Coal Resources with continued exploration

Although it would be reasonable to expect that the majority of Inferred Coal Resources
would upgrade to Indicated Coal Resources with continued exploration, due to the
uncertainty of Inferred Coal Resources it must not be assumed that such upgrading will
always occur.
52 Amendment to Clause 26

Definition An ‘Indicated Coal Resource’ is that part of a Coal Resource for which
quantity, grade or quality, densities, shape and physical characteristics are
estimated with sufficient confidence to allow the application of Modifying
Factors in sufficient detail to support mine planning and evaluation of the
economic viability of the deposit.
Geological evidence is derived from adequately detailed and reliable
exploration, sampling and testing and is sufficient to assume geological
and grade or quality continuity between points of observation.
An Indicated Coal Resource has a lower level of confidence than that
applying to a Measured Coal Resource and may only be converted to a
Probable Coal Reserve.

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53
EXPLORATION
RESULTS

COAL COAL
RESOURCES RESERVES

INFERRED

Increasing INDICATED PROBABLE

level of
geoscientific ROM and Saleable
knowledge
and MEASURED PROVED
confidence
ROM and Saleable

Reported as Mineable Reported as

in situ estimates ROM and Saleable
estimates

Consideration of mining, metallurgical, processing,

infrastructural, economic, marketing, legal,
environmental, social and governmental factors (the
Modifying Factors)

Figure 2: Relationship between Coal Resources and Coal Reserves

54 Amendment to Clause 27

Definition A ‘Measured Coal Resource’ is that part of a Coal Resource for which
quantity, grade or quality, densities, shape, and physical characteristics
are estimated with confidence sufficient to allow the application of
Modifying Factors to support detailed mine planning and final evaluation
of the economic viability of the deposit.
Geological evidence is derived from detailed and reliable exploration,
sampling and testing and is sufficient to confirm geological and grade or
quality continuity between points of observation.
A Measured Coal Resource has a higher level of confidence than that
applying to either an Indicated Coal Resource or an Inferred Coal
Resource. It may be converted to a Proved Coal Reserve or to a Probable
Mineral Reserve.

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55 Addition to Clause 24

Definition A ‘Mineable Tonnes In Situ Coal Resource’ is the tonnage and coal quality,
at a specified moisture content, contained in the coal seam or section of
the seams, which is proposed to be mined at the theoretical mining height,
adjusted by the geological loss factors and de-rating for previous mining
activities, with respect to a specific mining method and after the relevant
minimum and maximum mineable thickness cut-offs and relevant coal
quality cut-off parameters have been applied.

Mineable Tonnes In Situ (MTIS) Coal Resources are subdivided in order of increasing
geoscientific knowledge and confidence into Inferred, Indicated or Measured categories.
The MTIS Coal Resource must be reported.

56 Definition A ‘Run of Mine’ (ROM) Coal Reserve is the tonnage and coal quality, at a
specified moisture content, contained in the coal seam or section of the
coal seam, at the practical mining height, which is expected to be
recovered after all geological losses, mining losses, dilution,
contamination and moisture correction factors have been applied.

ROM Coal Reserves is defined by studies at Pre-Feasibility or Feasibility level as

appropriate that include application of Modifying Factors, and such studies and
assessments must demonstrate that at the time of reporting extraction and marketing of
the saleable products derived from the ROM Coal Reserves could reasonably be
justified.
The ROM Coal Reserve must be reported separately for surface mining operations and
for underground mining operations. The ROM Coal Reserve is subdivided in order of
increasing confidence into Probable ROM Coal Reserve and Proved ROM Coal Reserve
categories.
For each category of ROM Coal Reserve, the confidence levels in the Modifying Factors
must be disclosed.
The ROM Coal Reserve must be reported.

57 Definition A ‘Saleable Coal Reserve’ is the tonnage and coal quality derived from the
ROM Coal Reserve that will be available for sale, either as a raw ROM coal
product at a specified moisture content or after beneficiation of the ROM
Coal Reserve by coal processing operations has produced coal products
at specified qualities, size ranges and moisture contents.

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Saleable Coal Reserves are defined by studies at Pre-Feasibility or Feasibility level, as

appropriate, that include application of Modifying Factors, and such studies and
assessment must demonstrate that at the time of reporting, the extraction and marketing
of the saleable products is commercially justified. The predicted practical yield and basis
of the predicted yield to achieve the Saleable Coal Reserve must be stated.
The Saleable Coal Reserve must be subdivided into the relevant coal product types.
The Saleable Reserve is subdivided in order of increasing confidence into Probable
Saleable Coal Reserve and Proved Saleable Coal Reserve categories.
For each category of Saleable Coal Reserve, the confidence levels in the Modifying
Factors must be disclosed.
The Saleable Coal Reserve must be reported.

58 The coal quality must be reported for all Coal Resource and Coal Reserve categories.
The basis of reporting of the coal quality parameters must be reported.
The quality of the coal must be expressed according to parameters relevant to specific
applications of coal products e.g. steam coal, types of metallurgical coal, etc.

59 Addition to Clause 43:

Low grade coal stockpiles anticipated from a future mining and coal processing
operation in a defined Life of Mine Plan may be reported as a Coal Resource if there are
reasonable prospects of eventual economic extraction.

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REPORTING OF DIAMOND EXPLORATION

RESULTS, DIAMOND RESOURCES AND
DIAMOND RESERVES
(also applies to other GEMSTONES, as applicable)
60 This part of the Code addresses matters specific to the Public Reporting of Diamond
Exploration Results, Diamond Resources and Diamond Reserves. Clauses 1 to 47 of
this Code also apply to the Public Reporting of Diamond Exploration Results,
Diamond Resources and Diamond Reserves, unless otherwise stated in this part of
the Code. The term ‘Diamond’ must replace the term ‘Mineral’ and ‘grade and
average diamond value’ must replace ‘grade and mineral content’ wherever
applicable. In this part of the Code. References to diamonds can equally be applied
to other gemstones, unless otherwise stated.
The following (Clauses 60 to 72) are amendments to the Code to be applied in the
case of diamond (and other gemstone) projects. Where Clauses 1 to 47 have not
been specifically amended, the original Clauses are still applicable, simply
substituting ’Diamond’ (or other gemstone) for ’Mineral’ where appropriate.
Figure 1 must be replaced with Figure 3, which is diamond-specific
Public Reports of Diamond Resources and Diamond Reserves must use only the
terms set out in Figure 3. Any reference to ‘Figure 1’ in the Code must be substituted
by a reference to ‘Figure 3’.
The SAMREC Guideline Document for the Reporting of Diamond Exploration
Results, Diamond Resources and Diamond Reserves (and other Gemstones, where
Relevant) (’SAMREC Diamond Guidelines’), as updated from time to time, provides
the methodologies and definitions of the relevant terms that shall be considered when
preparing reports on Diamond Resources and Diamond Reserves.
Supplementary guidelines are available in the ‘Guidelines for the Reporting of
Diamond Exploration Results’ issued by the Diamond Exploration Best Practices
Committee established by the Canadian Institute of Mining, Metallurgy and
Petroleum. This, and other industry guidelines on the estimation and reporting of
Diamond Resources and Reserves, may be useful but will not, under any
circumstances, override the provisions and intentions of the SAMREC Code and the
SAMREC Diamond Guidelines.
61 A Diamond Resource estimate shall identify separate geological domains where
applicable. For each geological domain, a size frequency distribution, grade and
diamond value estimate must be established, and a bottom size cut-off shall be
stated. Reports of diamonds recovered from sampling programmes must describe
the nature of the sample, how the sample was taken, and the method used to recover
diamonds from the sample. The mass of diamonds recovered may only be omitted
from the report when the diamonds are considered to be too small to be of

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commercial significance.
A Diamond Resource or Diamond Reserve shall not be stated without an estimate of
the average diamond value/revenue, which shall be based on a complete run-of-
mine, or representative bulk-sample, parcel of diamonds that has been recovered
from the project property.
The average diamond grade and value shall not be reported without specifying the
anticipated Bottom Cut-off Screen Size.
Mineral chemistry does not provide direct grade or diamond value information and
shall not be used to infer these parameters for Diamond Resource estimation
purposes.
62 Any valuation of a parcel of diamonds shall be based on a sales document or a report
from a demonstrably reputable and qualified expert whose qualifications, credentials,
affiliations and independence/non-independence must be presented.
63 Where the valuation is used in the estimation of Diamond Resources or Diamond
Reserves, the valuation shall be based on a parcel representative of the size and
assortment of the diamond populations in the deposit. The Competent Person shall
explain the rationale behind the parcel size that has been used in the estimation of
value for the Diamond Resource or Diamond Reserve and the level of confidence in
the estimate.
64 The minimum representative size of the valuation parcel depends on the
characteristic stone distribution and quality of stones in the deposit. For all valuations
(irrespective of Diamond Resource classification), associated diamond size frequency
distributions shall be provided, along with a discussion of the relevant applicable
parcel size.
65 Amendment to Clauses 20 to 22
For diamond exploration programmes, Exploration Targets, Mineralisation, Diamond
Resources and Reserves, the term ‘quality’ must not be used as a substitute for
‘grade.’ The use of ‘grade’ and ‘value’ helps avoid confusion with diamond quality,
which is one aspect of the diamond assortment.
66 Amendment to Clause 21

Definition A ‘Diamond Exploration Target’ is a statement, or estimate, of the

exploration potential of a diamond deposit in a defined geological setting.

Guidance For example, this may refer to a kimberlite target, a particular river or stretch of
river, a stratigraphically defined sedimentary unit or sequence, or an area of
marine deposits, which is considered to have diamond potential.

‘Diamond Mineralisation’, as used in the Code, is defined as a concentration (or

occurrence) of diamonds of possible economic interest, in or on the Earth’s crust, for
which quantity and quality cannot be estimated with sufficient confidence to be
defined as a Diamond Resource.

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Portions of a Diamond Exploration Target or Diamond Mineralisation that do not have

demonstrated reasonable prospects for eventual economic extraction must not be
included in a Diamond Resource.
67 Amendment to Clause 24

Definition A ‘Diamond Resource’ is a concentration or occurrence of diamonds of

economic interest in or on the Earth’s crust in such form, quantity
(volume/tonnage), grade and value that there are reasonable prospects for
eventual economic extraction. The location, quantity, grade, value,
continuity and other geological characteristics of a Diamond Resource are
known, or estimated from specific geological evidence, sampling and
knowledge interpreted from an appropriately constrained and portrayed
geological model. Diamond Resources are subdivided, and must be so
reported, in order of increasing confidence in respect of geoscientific
evidence into Inferred, Indicated or Measured categories.

Any Diamond Mineralisation that does not have demonstrated reasonable prospects
for eventual economic extraction may not be included in a Diamond Resource.
68 Amendment to Clause 25

Definition An ‘Inferred Diamond Resource’ is that part of a Diamond Resource for

which quantity, grade and average diamond value are estimated on the
basis of limited geological evidence and sampling. Geological evidence is
sufficient to imply, but not verify, geological and grade continuity.
An Inferred Diamond Resource has a lower level of confidence than that
applying to an Indicated Diamond Resource and must not be converted to
a Diamond Reserve. It is reasonably expected that the majority of Inferred
Diamond Resources could be upgraded to Indicated Diamond Resources
with continued exploration.

The diamond parcel may be too small to be a reasonable representation of the

diamond assortment.
69 Amendment to Clause 26

Definition An ‘Indicated Diamond Resource’ is that part of a Diamond Resource for

which quantity, grade, and average diamond value, density, shape and
physical characteristics of the deposit are estimated with sufficient
confidence to allow the application of Modifying Factors in sufficient
detail to support mine planning and evaluation of the economic viability of
the deposit.
Geological evidence is derived from adequately detailed and reliable
exploration, sampling and testing and is sufficient to assume geological
and grade continuity between points of observation.
An Indicated Diamond Resource has a lower level of confidence than that
applying to a Measured Diamond Resource and may only be converted to
a Probable Diamond Reserve.

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The sampling and/or testing locations may be too widely or inappropriately spaced to
confirm geological and grade continuity but are spaced closely enough for continuity to be
assumed, and sufficient diamonds must have been recovered to allow a reasonable
estimate of average diamond value (c.f. Clause 65).
70 Amendment to Clause 27

Definition A ‘Measured Diamond Resource’ is that part of a Diamond

Resource for which quantity, grade and average diamond value,
density, shape, and physical characteristics of the deposit are
estimated with sufficient confidence to allow the application of
Modifying Factors to support detailed mine planning and final
evaluation of the economic viability of the deposit.
Geological evidence is derived from detailed and reliable
exploration, sampling and testing and is sufficient to confirm
geological and grade continuity between points of observation.
A Measured Diamond Resource has a higher level of confidence than that
applying to either an Indicated Diamond Resource or an Inferred Diamond
Resource. It may be converted to a Proved Diamond Reserve or to a
Probable Diamond Reserve.

The sampling and/or testing locations are spaced closely enough to confirm
geological and grade continuity and sufficient diamonds have been recovered to
allow a confident estimate of average diamond value.
71 Amendment to Clause 36

Definition A ‘Probable Diamond Reserve’ is the economically mineable part of an

Indicated, and in some circumstances, a Measured Diamond Resource.
The confidence in the Modifying Factors applying to a Probable Diamond
Reserve is lower than that applying to a Proved Diamond Reserve

There must be a high degree of confidence in the diamond revenue model if a

Probable Diamond Reserve is declared.
72 Amendment to Clause 37

Definition A ‘Proved Diamond Reserve’ is the economically mineable part of a

Measured Diamond Resource. A Proved Diamond Reserve implies a high
degree of confidence in the Modifying Factors

There must be high degree of confidence in the diamond revenue model if a Measured
Diamond Reserve is declared.

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EXPLORATION
RESULTS

DIAMOND DIAMOND
RESOURCES RESERVES

INFERRED

Increasing
level of INDICATED PROBABLE
geoscientific
knowledge
and MEASURED PROVED
confidence

Reported as in situ
Reported mineable
mineralisation
production estimates
estimates

Consideration of mining, metallurgical, processing,

infrastructural, economic, marketing, legal,
environmental, social and governmental factors (the
Modifying Factors)

Figure 3: Relationship between Diamond Resources and Diamond Reserves

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REPORTING OF EXPLORATION RESULTS,

MINERAL RESOURCES AND MINERAL
RESERVES FOR INDUSTRIAL MINERALS
73 Industrial minerals are covered by the SAMREC Code if they meet the criteria set out in
Clauses 5 and 6 of the Code. For the purpose of the SAMREC Code, industrial
minerals can be considered to cover commodities such as kaolin, phosphate,
limestone, talc, etc.
For minerals that are defined by a specification, the Mineral Resource or Mineral
Reserve estimation must be reported in terms of the mineral or minerals on which the
project is to be based and must include the specification of those minerals.

Guidance When reporting information and estimates for industrial minerals, the key
principles and purpose of the SAMREC Code apply and should be borne in
mind. Assays may not always be relevant, and other quality criteria may be
more applicable. If criteria such as deleterious minerals or physical properties
are of more relevance than the composition of the bulk mineral itself, then they
should be reported accordingly.
The factors underpinning the estimation of Mineral Resources and Mineral
Reserves for industrial minerals are the same as those for other
commodities/deposit types covered by the SAMREC Code. It may be
necessary, prior to the reporting of a Mineral Resource or Mineral Reserve, to
take particular account of certain key characteristics or qualities such as likely
product specifications, proximity to markets and general product marketability.
For some industrial minerals, it is common practice to report the saleable
product rather than the ‘as-mined’ product, which is traditionally regarded as the
Mineral Reserve. If the saleable product is reported, it should be in conjunction
with, not instead of, reporting of the Mineral Reserve. However, it is recognised
that commercial sensitivities may not always permit this style of reporting. It is
important that, in all situations where the saleable product is reported, a
clarifying statement is included to ensure that the reader is fully informed as to
what is being reported.
Some industrial mineral deposits may be capable of yielding products suitable
for more than one application and/or specification. If considered material by the
Competent Person, such multiple products should be quantified either separately
or as a percentage of the deposit.

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REPORTING OF METAL EQUIVALENTS

74 The reporting of Exploration Results, Mineral Resources or Mineral Reserves for
polymetallic deposits in terms of metal equivalents (a single equivalent grade of one
major metal) must show details of all material factors contributing to the net value
derived from each constituent.
The following minimum information must accompany any Public Report that includes
reference to metal equivalents, in order to conform to the principles of Transparency,
Materiality and Competence, as set out in Clause 4:
• Individual grades for all metals included in the metal equivalent calculation;
• Commodity prices adjusted for smelter/refinery terms for all metals (Public
Reports should include the actual assumed prices. It is not sufficient to refer to
a spot price without disclosing the price used in calculating the metal equivalent.
However, where the actual prices used are commercially sensitive, the
Competent Person must disclose sufficient information, perhaps in narrative
rather than numerical form, for investors to understand the methodology it has
used to determine these prices);
• Metallurgical recoveries for all metals and discussion of the basis on which the
assumed recoveries are derived (smelter/refinery recoveries, metallurgical test
work, detailed mineralogy, similar deposits, etc.);
• A clear statement that it is the Competent Person’s opinion that all the elements
included in the metal equivalents calculation have a reasonable potential to be
recovered and sold; and
• The calculation formula used.

In most circumstances, the metal chosen for reporting on an equivalent basis should be
the one that contributes most to the metal equivalent calculation. If this is not the case,
a clear explanation of the logic of choosing another metal must be included in the
Public Report.
Estimates of metallurgical recoveries for each metal must be used to calculate
meaningful metal equivalents.
Reporting on the basis of metal equivalents is not appropriate if metallurgical recovery
information is not available or cannot be estimated with reasonable confidence.

Guidance For many projects at the Exploration Results stage, metallurgical recovery
information may not be available or able to be estimated with reasonable
confidence. In such cases reporting of metal equivalents may be misleading and
metal equivalents shall not be reported.

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SAMREC TABLE 1

PRELUDE

Table 1 is applicable to all declarations in terms of the guidelines of the SAMREC

Code
Table 1 is a high-level checklist of reporting and assessment criteria to be used as a
reference by those preparing reports on Exploration Results, Mineral Resources and
Mineral Reserves.
In the context of complying with the principles of the Code, comment on the relevant
sections of Table 1 must be provided on an ‘if not, why not’ basis within the Competent
Person’s Report and must be provided where required according to the specific
requirements of Clauses 6, 31 and 34. This is to ensure that it is clear to the reader
whether items have been considered and deemed to be of low consequence or have
yet to be addressed or resolved.
Transparency, competency and materiality are overriding principles that determine what
information should be publicly reported. The Competent Person must provide sufficient
comment on all matters that might materially affect a reader’s understanding or
interpretation of the results or estimates being reported.
The order and grouping of criteria in Table 1 reflect the normal systematic approach to
exploration and evaluation. The table should be approached from left to right. In other
words, criteria in the first column, Exploration Results, should be considered to apply
also when reporting Mineral Resources and Mineral Reserves. Similarly, additional
criteria in the Mineral Resources column apply also to Mineral Reserves reporting.
Please note the inclusion of the ESG requirements in this updated version
Identify the units of measure, currency and relevant exchange rates

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SAMREC TABLE 1

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Section 1: Project Outline

Brief description of the scope of project (i.e. whether in preliminary sampling, advanced exploration, scoping, pre-
feasibility, or feasibility phase, Life of Mine plan for an ongoing mining operation or closure).
(i)
• Provide a high-level analysis of the ESG context within which the project is located and give an appropriate
analysis of the material aspects and impacts that may need consideration.
Describe (noting any conditions that may affect possible prospecting/mining activities) topography, elevation,
drainage, fauna and flora, the means and ease of access to the property, the proximity of the property to a
Property population centre, and the nature of transport, the climate, known associated climatic risks and the length of the
1.1
Description (ii) operating season and to the extent relevant to the mineral project, the sufficiency of surface rights for mining
operations including the availability and sources of power, water, mining personnel, potential tailings storage
areas, potential waste disposal areas, heap leach pad areas, and potential processing plant sites.
• Describe the location of any sensitive areas within the project area.
Specify the details of the personal inspection on the property by each CP (and any technical specialists) or, if
(iii)
applicable, the reason why a personal inspection has not been completed.
(i) Description of location and map (country, province, and closest town/city, coordinate systems and ranges, etc.).
Country Profile: describe information pertaining to the project host country that is pertinent to the project,
(ii) including relevant applicable legislation, environmental and social context etc. Assess, at a high level, relevant
technical, environmental, social, economic, political and other key risks.
Provide a general topocadastral Provide a topocadastral map in Provide a detailed topocadastral
1.2 Location
map sufficient detail to support the map. Confirm that applicable aerial
Include the locality of sensitive assessment of eventual economics. surveys have been checked with
(iii) receptors within the prospecting State the known associated climatic ground controls and surveys,
right area. risks. particularly in areas of rugged
All surface water features to be Include the locality of sensitive terrain, dense vegetation or high
included on maps. receptors within the prospecting altitude.
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SAMREC TABLE 1

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Section 1: Project Outline

right area and at least the zone of Include the locality of sensitive
influence of the site. receptors within the prospecting
All surface water features to be right area and at least the zone of
included on maps. influence of the site.
All surface water features to be
included on maps.
Discuss details of relevant adjacent properties. If adjacent or nearby properties have an important bearing on
the report, then their location and common mineralized structures should be included on the maps. Reference all
Adjacent
1.3 (i) information used from other sources.
Properties
• Describe the location of any sensitive areas around the project area including within the zone of influence of
the site
State historical background to the project and adjacent areas concerned, including known results of previous
(i) exploration and mining activities (type, amount, quantity and development work), previous ownership and
changes thereto.
Present details of previous successes or failures with reasons why the project may now be considered potentially
(ii)
economic.
Discuss known or existing historical Mineral Resource estimates and
1.4 History (iii) performance statistics on actual production for past and current
operations.
Discuss known or existing
historical Mineral Reserve
(iv) estimates and performance
statistics on actual production for
past and current operations.
1.5 Legal Confirm the legal tenure to the satisfaction of the Competent Person, including a description of the following:
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Section 1: Project Outline

Aspects Discuss the nature of the issuer’s rights (e.g. prospecting and/or mining) and the right to use the surface of the
and (i)
properties to which these rights relate. Disclose the date of expiry and other relevant details.
Permitting
Present the principal terms and conditions of all existing agreements, and details of those still to be obtained,
(such as, but not limited to, concessions, partnerships, joint ventures, access rights, leases, historical and
(ii)
cultural sites, wilderness or national park and environmental settings, royalties, consents, permission, permits or
authorisations).
Present the security of the tenure held at the time of reporting or that is reasonably expected to be granted in the
(iii) future along with any known impediments to obtaining the right to operate in the area. State details of
applications that have been made.
Provide a statement of any legal proceedings for example; land claims, that may have an influence on the rights
to prospect or mine for minerals, or an appropriate negative statement.
• Provide a description of any recognised claims received during the reporting period.
• Provide a description of any penalties, fines and damages which are due and payable by the target in
response to an order of court, decision by a mediator or a decision by an arbitrator whether or not subject to
an appeal process.
• Provide a description of any pending administrative enforcement action such as, but not limited to directives
(iv)
or compliance notices instituted against the project target, including a notice received by the project target of
an authority’s intention to issue a directive or compliance notice, by any authority concerned with the
regulation of ESG issues whether or not such pre-compliance notice or compliance notice has been
suspended pending corrective action.
• Provide a description of any known future financial liabilities that arise by virtue of recognised claims,
penalties, fines, damages and administrative enforcement action that will become due and payable in future
including the due date for payment.
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Section 1: Project Outline

Provide a statement relating to governmental/statutory requirements and permits as may be required have been
applied for, approved or can be reasonably be expected to be obtained.
• Outline the applicable ESG legal compliance requirements and any mandatory and/or voluntary standards or
(v) guidelines to which the project subscribes.
• Identify the ESG permits, authorisations and licences that have been issued to the project target as well as
those permits, authorisations and licences that that have been identified as required but not yet applied for or
issued.
1.6 Royalties (i) Describe the royalties that are payable in respect of each property.
Describe any liabilities, including rehabilitation guarantees that are pertinent to the project. Provide a description
of the rehabilitation liability, including, but not limited to, legislative requirements, assumptions and limitations.
• Describe the projects current closure, social obligations, rehabilitation activities, closure liability and
1.7 Liabilities (i) compliance costs.
• Provide a description of mechanisms in place to address unplanned closure.
• Describe the bonding obligations in place to ensure that these liabilities can be funded on a qualitative and
quantitative basis.
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Section 2: Geological Setting, Deposit, Mineralisation

(i) Describe the regional geology.

(ii) Describe the project geology including deposit type, geological setting and style of mineralisation.
Discuss the geological model or concepts being applied in the investigation and on the basis of which the
(iii)
exploration program is planned. Describe the inferences made from this model.
Geological Discuss data density, distribution and reliability and whether the quality and quantity of information are
Setting, (iv)
2.1 sufficient to support statements, made or inferred, concerning the Exploration Target or Mineralisation.
Deposit,
Discuss the significant minerals present in the deposit, their frequency, size and other characteristics. Includes
Mineralisation
(v) minor and gangue minerals where these will have an effect on the processing steps. Indicate the variability of
each important mineral within the deposit.
Describe the significant mineralised zones encountered on the property, including a summary of the
(vi) surrounding rock types, relevant geological controls, and the length, width, depth, and continuity of the
mineralisation, together with a description of the type, character, and distribution of the mineralisation
(vii) Confirm that reliable geological models and / or maps and cross sections that support interpretations exist.
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Section 3: Exploration and Drilling, Sampling Techniques and Data

Describe the data acquisition or exploration techniques and the nature, level of detail, and confidence in the
geological data used (i.e. geological observations, remote sensing results, stratigraphy, lithology, structure,
alteration, mineralisation, hydrology, geophysical, geochemical, petrography, mineralogy, geochronology,
(i)
bulk density, potential deleterious or contaminating substances, geotechnical and rock characteristics,
moisture content, bulk samples etc.). Confirm that data sets include all relevant metadata, such as unique
sample number, sample mass, collection date, spatial location etc.
Identify and comment on the primary data elements (observation and measurements) used for the project and
describe the management and verification of these data or the database. This should describe the following
(ii) relevant processes: acquisition (capture or transfer), validation, integration, control, storage, retrieval and
backup processes. It is assumed that data are stored digitally but hand-printed tables with well-organized data
and information may also constitute a database.
Acknowledge and appraise data from other parties and reference all data and information used from other
(iii)
sources.
3.1 Exploration Clearly distinguish between data / information from the property under discussion and that derived from
(iv)
surrounding properties
(v) Describe the survey methods, techniques and expected accuracies of data. Specify the grid system used.

Discuss whether the data spacing and distribution is sufficient to establish the degree of geological and grade
(vi)
continuity appropriate for the estimation procedure(s) and classifications applied.
Present representative models and / or maps and cross sections or other two- or three-dimensional
(vii) illustrations of results, showing location of samples, accurate drill-hole collar positions, down-hole surveys,
exploration pits, underground workings, relevant geological data, etc
Report the relationships between mineralisation widths and intercept lengths. The geometry of the
mineralisation with respect to the drill hole angle is particularly important. If it is not known and only the down-
(viii)
hole lengths are reported, confirm it with a clear statement to this effect (e.g. ‘down-hole length, true width not
known’).
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SAMREC TABLE 1

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Section 3: Exploration and Drilling, Sampling Techniques and Data

Present the type of drilling undertaken (e.g. core, reverse circulation, open-hole hammer, rotary air blast,
(i) auger, Banka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-
sampling bit or other type, whether core is oriented and if so, by what method, etc).
Describe whether core and chip samples have been geologically and geotechnically logged to a level of detail
(ii) to support appropriate Mineral Resource estimation, technical studies, mining studies and metallurgical
Drilling studies.
3.2
Techniques Describe whether logging is qualitative or quantitative in nature; indicate if core photography. (or costean,
(iii)
channel, etc) was undertaken
(iv) Present the total length and percentage of the relevant intersections logged.

(v) Results of any downhole surveys of the drill hole to be discussed.

Describe the nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry
standard measurement tools appropriate to the minerals under investigation, such as down hole gamma
(i)
sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad
meaning of sampling.
Describe the sampling processes, including sub-sampling stages to maximize representivity of samples. This
Sample
(ii) should include whether sample sizes are appropriate to the grain size of the material being sampled. Indicate
method,
whether sample compositing has been applied.
3.3 collection,
capture and Appropriately describe each data set (e.g. geology, grade, density, quality, diamond breakage, geo-
(iii)
storage metallurgical characteristics etc.), sample type, sample-size selection and collection methods
Report the geometry of the mineralisation with respect to the drill-hole angle. State whether the orientation of
sampling achieves unbiased sampling of possible structures and the extent to which this is known,
(iv)
considering the deposit type. State if the intersection angle is not known and only the downhole lengths are
reported.
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Section 3: Exploration and Drilling, Sampling Techniques and Data

(v) Describe retention policy and storage of physical samples (e.g. core, sample reject, etc.)
Describe the method of recording and assessing core and chip sample recoveries and results assessed,
measures taken to maximise sample recovery and ensure representative nature of the samples and whether a
(vi)
relationship exists between sample recovery and grade and whether sample bias may have occurred due to
preferential loss/gain of fine/coarse material.
If a drill-core sample is taken, state whether it was split or sawn and whether quarter, half or full core was
(vii) submitted for analysis. If a non-core sample, state whether the sample was riffled, tube sampled, rotary split
etc. and whether it was sampled wet or dry.
Identify the laboratory(s) and state the accreditation status and Registration Number of the laboratory or
(i)
provide a statement that the laboratories are not accredited.
Sample Identify the analytical method. Discuss the nature, quality and appropriateness of the assaying and laboratory
3.4 Preparation (ii)
processes and procedures used and whether the technique is considered partial or total.
and Analysis
Describe the process and method used for sample preparation, sub-sampling and size reduction, and
(iii) likelihood of inadequate or non-representative samples (i.e. improper size reduction, contamination, screen
sizes, granulometry, mass balance, etc.)
Discuss the governance of the sampling campaign and process, to ensure quality and representivity of
samples and data, such as sample recovery, high grading, selective losses or contamination, core/hole
(i)
diameter, internal and external QA/QC, and any other factors that may have resulted in or identified sample
Sampling bias.
3.5
Governance (ii) Describe the measures taken to ensure sample security and the Chain of Custody.
Describe the validation procedures used to ensure the integrity of the data, e.g. transcription, input or other
(iii)
errors, between its initial collection and its future use for modelling (e.g. geology, grade, density, etc.)
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SAMREC TABLE 1

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Section 3: Exploration and Drilling, Sampling Techniques and Data

Describe the audit process and frequency (including dates of these audits) and disclose any material risks
(iv)
identified.
Demonstrate that adequate field sampling process verification techniques (QA/QC) have been applied, e.g.
Quality
the level of duplicates, blanks, reference material standards, process audits, analysis, etc. If indirect methods
3.6 Control/Quality (i)
of measurement were used (e.g. geophysical methods), these should be described, with attention given to the
Assurance
confidence of interpretation.
Describe the method of bulk density determination with reference to the frequency of measurements, the size,
(i)
nature and representativeness of the samples.
If target tonnage ranges are reported, state the preliminary estimates or basis of assumptions made for bulk
(ii)
density.
3.7 Bulk Density
(iii) Discuss the representivity of bulk density samples of the material for which a grade range is reported.
Discuss the adequacy of the methods of bulk density determination for bulk material with special reference to
(iv) accounting for void spaces (vugs, porosity etc.), moisture and differences between rock and alteration zones
within the deposit.
(i) Indicate the location of individual samples (including map).
Describe the size of samples, spacing/density of samples recovered and whether sample sizes and
Bulk-Sampling (ii)
distribution are appropriate to the grain size of the material being sampled.
3.8 and/or trial-
mining (iii) Describe the method of mining and treatment.
Indicate the degree to which the samples are representative of the various types and styles of mineralisation
(iv)
and the mineral deposit as a whole.
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Section 4: Estimation and Reporting of Exploration Results and Mineral Resources

Describe the geological model, construction technique and assumptions that forms the basis for the Exploration
Results or Mineral Resource estimate. Discuss the sufficiency of data density to assure continuity of
(i)
mineralisation and geology and provide an adequate basis for the estimation and classification procedures
applied.
Describe the nature, detail and reliability of geological information with which lithological, structural,
(ii)
mineralogical, alteration or other geological, geotechnical and geo-metallurgical characteristics were recorded.
Describe any obvious geological,
mining, metallurgical,
environmental, social,
infrastructural, legal and economic
Geological (iii)
factors that could have a significant
4.1 model and
effect on the prospects of any
interpretation
possible exploration target or
deposit.
Discuss all known geological data that could materially influence the
(iv)
estimated quantity and quality of the Mineral Resource.
Discuss whether consideration was given to alternative interpretations or
(v) models and their possible effect (or potential risk) if any, on the Mineral
Resource estimate.
Discuss geological discounts (e.g. magnitude, per reef, domain, etc.),
(vi) applied in the model, whether applied to mineralized and / or un-
mineralized material (e.g. potholes, faults, dykes, etc).
Estimation Describe in detail the estimation
4.2 and (i) techniques and assumptions used
modelling to determine the grade and
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SAMREC TABLE 1

Exploration Results Mineral Resources Mineral Reserves

Section 4: Estimation and Reporting of Exploration Results and Mineral Resources

techniques tonnage ranges.

Discuss the nature and appropriateness of the estimation technique(s)

applied and key assumptions, including treatment of extreme grade
values (cutting or capping), compositing (including by length and/or
(ii)
density), domaining, sample spacing, estimation unit size (block size),
selective mining units, interpolation parameters and maximum distance of
extrapolation from data points.
Describe assumptions and justification of correlations made between
(iii)
variables.
Provide details of any relevant specialized computer program (software)
(iv) used, with the version number, together with the estimation parameters
used.
State the processes of checking and validation, the comparison of model
(v) information to sample data and use of reconciliation data, and whether
the Mineral Resource estimate takes account of such information.
Describe the assumptions made regarding the estimation of any co-
(vi)
products, by-products or deleterious elements.
Reasonable Disclose and discuss the geological parameters. These would include
prospects for (i) (but not be limited to) volume / tonnage, grade and value / quality
eventual estimates, cut-off grades, strip ratios, upper- and lower- screen sizes.
4.3
economic Disclose and discuss the engineering parameters. These would include
extraction (ii) mining method, dilution, processing, geotechnical, geohydraulic and
(“RPEEE”) metallurgical) parameters.
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Section 4: Estimation and Reporting of Exploration Results and Mineral Resources

Disclose and discuss the infrastructure, including, but not limited to,
(iii)
power, water, site-access.
Disclose and discuss the legal, governmental, permitting, statutory
parameters.
(iv) • Provide a high-level description of organisational structure, systems,
policies, procedures and management plans, and governance
procedures in place to manage ESG issues.
Disclose and discuss the environmental and social (or community)
parameters.
(v) • Provide a high-level analysis of the environmental and social context
within which the project is located and give an appropriate analysis of
the material aspects and impacts that may need consideration.
(vi) Disclose and discuss the marketing parameters.
Disclose and discuss the economic assumptions and parameters. These
factors will include, but not limited to, commodity prices, potential capital
(vii)
and operating costs, including costs to address material ESG risks
identified for the project target
Discuss any material risks
• Describe at an appropriate level, the risks associated with any
obvious ESG factors that could have a material modification to the
(viii)
planned resource estimation programme.
• Include issues that are likely to remain material despite the
implementation of proposed mitigation measures.
(ix) Discuss the parameters used to support the concept of "eventual"
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SAMREC TABLE 1

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Section 4: Estimation and Reporting of Exploration Results and Mineral Resources

Describe criteria and methods used
Classification as the basis for the classification of
4.4 (i)
Criteria the Mineral Resources into varying
confidence categories.
Discuss the reported low and high-grades and widths together with their spatial location to avoid misleading the
(i)
reporting of Exploration Results, Mineral Resources or Mineral Reserves.
Discuss whether the reported grades are regional averages or if they are selected individual samples taken
(ii)
from the property under discussion.
State assumptions regarding mining methods, infrastructure, metallurgy, environmental and social parameters.
(iii)
State and discuss where no such assumptions have been made.

State the specific quantities and grades / qualities which are being reported in ranges and/or widths, and
(iv)
explain the basis of the reporting
4.5 Reporting
Present the detail for example open
pit, underground, residue stockpile,
(v) remnants, tailings, and existing
pillars or other sources in the
Mineral Resource statement
Present a reconciliation with any
previous Mineral Resource
(vi) estimates. Where appropriate,
report and comment on any historic
trends (e.g. global bias).
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Section 4: Estimation and Reporting of Exploration Results and Mineral Resources

Present the defined reference point for the tonnages and grades reported
as Mineral Resources. State the reference point if the point is where the
run of mine material is delivered to the processing plant. It is important
(vii)
that, in all situations where the reference point is different, such as for a
saleable product, a clarifying statement is included to ensure that the
reader is fully informed as to what is being reported.
If the CP is relying on a report, opinion, or statement of another expert who is not a CP, disclose the date, title,
and author of the report, opinion, or statement, the qualifications of the other expert and why it is reasonable for
(viii)
the CP to rely on the other expert, any significant risks and any steps the CP took to verify the information
provided.
(ix) State the basis of equivalent metal formulae, if applied.
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Section 5: Technical Studies

State the level of study – whether
prefeasibility, feasibility or ongoing
Life of Mine. The Code requires
that a study to at least a Pre-
Feasibility level has been
undertaken to convert Mineral
State the level of study – whether
Resource to Mineral Reserve. Such
(i) scoping, prefeasibility, feasibility or
studies will have been carried out
ongoing Life of Mine
and will include a mine plan or
Technical Studies are not production schedule that is
5.1 Introduction
applicable to Exploration Results technically achievable and
economically viable, and that all
Modifying Factors have been
considered.
Provide a summary table of the
Modifying Factors used to convert
the Mineral Resource to Mineral
(ii)
Reserve for Pre-feasibility,
Feasibility or on-going life-of-mine
studies.
State assumptions regarding mining
methods parameters when
Technical Studies are not
5.2 Mining Design (i) estimating Mineral Resources or
applicable to Exploration Results
explain where no mining
assumptions have been made.
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Section 5: Technical Studies

State and justify all modifying
factors and assumptions made
regarding mining methods,
minimum mining dimensions (or pit
shell) and internal and, if applicable,
external) mining dilution and mining
losses used for the techno-
(ii) economic study and signed-off,
such as mining method, mine
design criteria, infrastructure,
capacities, production schedule,
mining efficiencies, grade control,
geotechnical and hydrological
considerations, closure plans, and
personnel requirements.
State what mineral resource models
(iii)
have been used in the study.
Explain the basis of (the adopted)
cut-off grade(s) or quality
(iv)
parameters applied. Include metal
equivalents if relevant
Description and justification of
(v)
mining method(s) to be used.
For open-pit mines, include a
(vi)
discussion of pit slopes, slope
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Section 5: Technical Studies

stability, and strip ratio.
For underground mines, discussion
of mining method, geotechnical
(vii) considerations, mine design
characteristics, and
ventilation/cooling requirements.
Discussion of mining rate,
equipment selected, grade control
methods, geotechnical and
(viii) hydrogeological considerations,
health and safety of the workforce,
staffing requirements, dilution, and
recovery.
State the optimisation methods
used in planning, list of constraints
(practicality, plant, access, exposed
(ix)
Mineral Reserves, stripped Mineral
Reserves, bottlenecks, draw
control).
Discuss the source of the sample
Metallurgical Technical Studies are not and the techniques to obtain the
5.3 (i)
and Test work applicable to Exploration Results sample, laboratory and metallurgical
testing techniques.
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Section 5: Technical Studies

Explain the basis for assumptions or
predictions regarding metallurgical
(ii) amenability and any preliminary
mineralogical test work already
carried out.
Discuss the possible processing
methods and any processing
factors that could have a material Describe and justify the processing
effect on the likelihood of eventual method(s) to be used, equipment,
(iii)
economic extraction. Discuss the plant capacity, efficiencies, and
appropriateness of the processing personnel requirements.
methods to the style of
mineralisation.
Discuss the nature, amount and
representativeness of metallurgical
test work undertaken and the
recovery factors used. A detailed
flow sheet / diagram and a mass
(iv)
balance should exist, especially for
multi-product operations from which
the saleable materials are priced for
different chemical and physical
characteristics.
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Section 5: Technical Studies

State what assumptions or
allowances have been made for
deleterious elements and the
existence of any bulk-sample or
(v)
pilot-scale test work and the degree
to which such samples are
representative of the ore body as a
whole.
State whether the metallurgical
(vi) process is well-tested technology or
novel in nature.
Comment regarding the current
state of infrastructure or the ease
(i)
with which the infrastructure can be
provided or accessed
Report in sufficient detail to
demonstrate that the necessary
facilities have been allowed for
Technical Studies are not
5.4 Infrastructure (which may include, but not be
applicable to Exploration Results
limited to, processing plant, tailings
(ii) dam, leaching facilities, waste
dumps, road, rail or port facilities,
water and power supply, offices,
housing, security, resource
sterilisation testing etc.). Provide
detailed maps showing locations of
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Section 5: Technical Studies

facilities.
Statement showing that all
(iii) necessary logistics have been
considered.
Confirm that the company holding the tenement has addressed the host
country environmental legal compliance requirements and any mandatory
and/or voluntary standards or guidelines to which it subscribes
• Provide a description of organisational structure, systems, policies,
(i) procedures and management plans, and governance procedures in
place to manage ESG issues.
• Give an appropriate level analysis of the material aspects and impacts
that may need consideration including how existing activities may
exacerbate or mitigate existing aspects and impacts.
Environmental Technical Studies are not
5.5 Identify the necessary permits that will be required and their status and
and Social applicable to Exploration Results
where not yet obtained, confirm that there is a reasonable basis to believe
that all permits required for the project will be obtained
• Outline the applicable ESG legal compliance requirements and any
mandatory and/or voluntary standards or guidelines to which the
(ii)
project subscribes.
• Identify the ESG permits, authorisations and licences that have been
issued to the project target as well as those permits, authorisations and
licences that that have been identified as required but not yet applied
for or issued.
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Section 5: Technical Studies

Identify and discuss any sensitive areas that may affect the project as well
as any other environmental factors including I&AP and/or studies that
could have a material effect on the likelihood of eventual economic
extraction. Discuss possible means of mitigation.
(iii) • Provide an appropriate level analysis of the environmental context
within which the project is located and give an appropriate analysis of
the material aspects and impacts that may need consideration. Include
issues that are likely to remain material despite the implementation of
proposed mitigation measures.
Identify any legislated social management programmes that may be
required and discuss the content and status of these.
(iv)
• Provide an appropriate analysis of the external social and political
context within which the project is located.
Outline and quantify the material socio-economic and cultural impacts that
need to be mitigated, and their mitigation measures and where appropriate
the associated costs.
(v) • Report on any social and political issues that may have a material effect
on the planned Resource/Reserve programme. Include issues that are
likely to remain material despite the implementation of proposed
mitigation measures.
Market Describe the valuable and
Studies and Technical Studies are not potentially valuable product(s)
5.6 (i)
Economic applicable to Exploration Results including suitability of products, co-
criteria products and by products to market.
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Section 5: Technical Studies

Describe product to be sold,
customer specifications, testing, and
acceptance requirements. Discuss
whether there exists a ready market
for the product and whether
(ii)
contracts for the sale of the product
are in place or expected to be
readily obtained. Present price and
volume forecasts and the basis for
the forecast.
State and describe all economic
criteria that have been used for the
study such as capital and operating
(iii)
costs, exchange rates, revenue /
price curves, royalties, cut-off
grades, reserve pay limits.
Summary description, source and
confidence of method used to
estimate the commodity price/value
profiles used for cut-off grade
(iv)
calculation, economic analysis and
project valuation, including
applicable taxes, inflation indices,
discount rate and exchange rates.
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Section 5: Technical Studies

Present the details of the point of
reference for the tonnages and
grades reported as Mineral
Reserves (e.g. material delivered to
the processing facility or saleable
(v) product(s)). It is important that, in
any situation where the reference
point is different, a clarifying
statement is included to ensure that
the reader is fully informed as to
what is being reported.
Justify assumptions made
concerning production cost
including transportation, treatment,
penalties, exchange rates,
(vi)
marketing and other costs. Provide
details of allowances that are made
for the content of deleterious
elements and the cost of penalties.
Provide details of allowances made
(vii) for royalties payable, both to
Government and private.
State type, extent and condition of
plant and equipment that is
(viii)
significant to the existing
operation(s).
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Section 5: Technical Studies

Provide details of all environmental,
social and labour costs considered
• Consideration should include the
(ix) cost of any technical studies
necessary to determine such
environmental, social, and
labour costs
Report an assessment of technical, environmental, social, economic,
political and other key risks to the project. Describe actions that will be
taken to mitigate and/or manage the identified risks.
• Provide a description of the existence of a risk assessment process
Technical Studies are not
5.7 Risk Analysis (i) which has been undertaken to identify material ESG issues.
applicable to Exploration Results
• Describe programmes in place to continuously update and monitor
identified material ESG issues.
• Describe how the risk assessment process is integrated with the
overall risk management framework.
At the relevant level (Scoping Study, Pre-feasibility, Feasibility or on-going
(i)
Life-of Mine), provide an economic analysis for the project that includes:
Economic Technical Studies are not
5.8 Cash Flow forecast on an annual basis using Mineral Reserves or an
Analysis (ii) applicable to Exploration Results
annual production schedule for the life of the project
A discussion of net present value (NPV), internal rate of return (IRR) and
(iii)
payback period of capital
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Section 5: Technical Studies

Sensitivity or other analysis using variants in commodity price, grade,
(iv) capital and operating costs, or other significant parameters, as appropriate
and discuss the impact of the results.
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Exploration Results Mineral Resources Mineral Reserves

Section 6: Estimation and Reporting of Mineral Reserves

Describe the Mineral Resource estimate used as a basis for the
(i)
conversion to a Mineral Reserve.
Report the Mineral Reserve Statement with sufficient detail indicating if
the mining is open pit or underground plus the source and type of
(ii)
mineralisation, domain or ore body, surface dumps, stockpiles and all
other sources.
Estimation Provide a reconciliation reporting
and historic reliability of the
6.1
modelling performance parameters,
techniques assumptions and modifying factors
including a comparison with the
(iii)
previous Reserve quantity and
qualities, if available. Where
appropriate, report and comment
on any historic trends (e.g. global
bias)
Describe and justify criteria and
methods used as the basis for the
classification of the Mineral
Classification Reserves into varying confidence
6.2 (i)
Criteria categories, based on the Mineral
Resource category, and including
consideration of the confidence in
all the modifying factors.
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Section 6: Estimation and Reporting of Mineral Reserves

Discuss the proportion of Probable
Mineral Reserves, which have
(i) been derived from Measured
Mineral Resources (if any),
including the reason(s) therefore.
Present details of for example
open pit, underground, residue
stockpile, remnants, tailings, and
(ii)
existing pillars or other sources in
respect of the Mineral Reserve
statement
Present the details of the defined
6.3 Reporting reference point for the Mineral
Reserves. State whether the
reference point is the point where
the run of mine material is
delivered to the processing plant. It
is important that, in all situations
(iii) where the reference point is
different, such as for a saleable
product, a clarifying statement is
included to ensure that the reader
is fully informed as to what is being
reported. State clearly whether the
tonnages and grades reported for
Mineral Reserves are in respect of
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Section 6: Estimation and Reporting of Mineral Reserves

material delivered to the plant or
after recovery.
Present a reconciliation with the
previous Mineral Reserve
(iv) estimates. Where appropriate,
report and comment on any
historic trends (e.g. global bias).
Only Measured and Indicated
Mineral Resources can be
(v)
considered for inclusion in the
Mineral Reserve.
State whether the Mineral
(vi) Resources are inclusive or
exclusive of Mineral Reserves.

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Section 7: Audits and Reviews

State type of review/audit (e.g. independent, external), area (e.g. laboratory, drilling, data, environmental
(i)
Audits and compliance etc), date and name of the reviewer(s) together with their recognized professional qualifications.
7.1
Reviews Disclose the conclusions of relevant audits or reviews. Note where significant deficiencies and remedial actions
(ii)
are required.
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Section 7: Audits and Reviews

• Provide a description of legal compliance audits undertaken during the period including a summary of
material findings and management plans to address these findings. Focus on issues that are likely to remain
significant despite the implementation of proven and economically viable mitigation measures.
• Describe, assess and prioritise the risks associated with any obvious environmental factors that could have a
material modification to the planned exploration/mining programme.
• Describe and assess the risks associated with any obvious internal social factors and/or specific contextual
details that could have a material effect on the planned exploration/mining programme.
• Describe and assess the risks associated with any obvious governance factors and/or specific contextual
details that could have a material effect on the planned exploration/mining programme.
• Provide a description of ESG management system conformance audits undertaken during the reporting
period including a summary of material findings and management plans to address these findings.
Section 8: Other Relevant Information

8.1 (i) Discuss all other relevant and material information not discussed elsewhere.

Section 9: Qualification of Competent Person(s) and other key technical staff. Date and Signature Page
State the full name, registration number and name of the professional body or RPO, for all the Competent
(i) Person(s) and Technical Specialists. State the relevant experience of the Competent Person(s), Technical
Specialists and other key technical staff who prepared and are responsible for the Public Report.
9.1 (ii) State the Competent Person’s relationship to the issuer of the report.

Provide the Certificate of the Competent Person (Appendix 2), including the date of sign-off and the effective
(iii)
date, in the Public Report.
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Section 10: Reporting of for Coal Resources and Reserves

Confirm that the reports on coal deposits take cognisance of sections 54-74 of the Code and Sections 1 - 9 of
Specific (i)
Table 1.
10.1 Reporting for
Coal Confirm that the Coal Exploration Results, Coal Inventory, Coal Resources and Coal Reserves are reported
(ii)
using the South African National Standard 10320 as the guideline
Geological (i) Describe the project geology including coal deposit type, geological setting and coal seams / zones present.
Setting,
10.2
Deposit, Identify and discuss the structural complexity, physical continuity, coal rank, qualitative and quantitative
(ii)
Mineralisation properties of the significant coal seams or zones on the property.
Drilling Report core recoveries and method of calculation. Confirm that core recoveries in cored boreholes are in
(i)
Techniques excess of 95% by length within the coal seam intersection.
Relative Describe the apparent relative density or true relative density of the coal seam(s) determined on coal samples
Density to from borehole cores using recognized standard laboratory methods or commonly used procedures. State the
(ii)
replace Bulk moisture basis on which the relative density determination is based and the moisture basis on which the final
10.3
Density density value is reported (in situ or air-dried basis).
Bulk- Describe the purpose or aim of the bulk sampling programme, the size of samples, spacing/density of samples
Sampling recovered. Describe the applicability of bulk sampling or large diameter core samples towards providing
(iii)
and/or trial- representative samples for tests. Compare and comment on results obtained from bulk sampling versus
mining exploration sampling.
Reasonable
and realistic
Confirm that an appropriate coal quality is reported for all Coal Resource categories. Present and discuss the
prospects for
10.4 (i) type of analysis (e.g. raw coal, washed coal at a specific cut-point density) and the basis of reporting of the coal
eventual
quality parameters (e.g. air-dried basis, dry basis, etc.).
economic
extraction
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Exploration Results Mineral Resources Mineral Reserves

Section 10: Reporting of for Coal Resources and Reserves

A Coal Resource only includes the
coal seam(s) above the minimum
thickness cut-off and the coal
(i)
quality cut-off(s). Present and
Coal discuss the MTIS Coal Resource
10.5 Resource tonnage and quality.
Reporting
State the reporting basis for the
Coal Resource statement with
(ii)
particular reference to moisture
and relative density.
State the reporting basis for the
Coal Reserve statement with
(i)
particular reference to moisture
and relative density.
Confirm that the Coal Reserves are
reported as ROM tonnages and
Coal Reserve
10.6 coal quality, and also as Saleable
Reporting
product/s tonnages and coal
(ii) quality. Present and discuss the
reporting basis for the Coal
Reserve statement with particular
reference to moisture content and
relative density.
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Section 11: Reporting of Diamonds and Gemstones

This section highlights criteria that are applicable to diamond deposits and to other gemstone deposits. Reports of diamond and other
gemstone properties must also take cognisance of sections 59-71 of the Code, Sections 1 - 9 of Table 1 and the Guidance notes in the
SAMCODE Companion Volume. The information required in this section (Section 11) should be included with the relevant sections and
should not comprise a separate chapter.
Geological
Setting, For diamond placer occurrences, describe the overburden and gravel thicknesses, as well as bedrock
11.1 (i)
Deposit, topography
Mineralisation
Describe the type of sample (outcrop, boulder, drill-core, RC drill cuttings, gravel, stream sediment or soil) and
(i) purpose (for example: RC drilling to identify gravel thickness, large diameter drilling to establish stones per
unit of volume, bulk-sample, etc.)
(ii) Discuss sample size, distribution and representivity

(iii) Identify the type of sample facility, treatment rate and accreditation
Sampling of (iv) Discuss sample size reduction, bottom and top screen sizes and any re-crush
11.2 Diamond
Projects (v) Discuss the sample processes (e.g. DMS, grease, X-Ray, Hand-sorting, etc.)

(vi) Discuss process efficiency, tailings auditing and granulometry

Identify the laboratory used, type of process for microdiamonds and accreditation. Reports of microdiamond
(vii) recoveries should describe the extraction process, crushing methodology and the stone counts per unit
weight, as a minimum.
State whether the reports of kimberlitic indicator minerals ("KIM’s") or diamond indicator minerals ("DIM's")
(viii)
have been prepared by a suitably qualified laboratory which must be identified.
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Section 11: Reporting of Diamonds and Gemstones

Supply details of the sampling parameters for reports dealing with recoveries of diamonds or KIM's, including,
(ix) but not limited to type of sample (stream sediment, soil, bulk, rock, etc.) as well as sample size, sample
frequency, representivity and screen parameters are required.
Discuss the relevant major and trace element chemistry of any kimberlitic indicator minerals recovered.
(x) Reference relevant peer-reviewed published research articles when reporting the interpretation of mineral
chemistry data for diamond exploration projects.
Provide details of the form, shape, colour and size of the diamonds recovered and, where relevant, comments
(xi)
regarding the nature of the source of the diamonds.
Provide a table of relevant results, including (but not limited to) volume of sample, number of individual
(i) diamonds, total number of carats, sample grade, diamond value (it is not possible to evaluate diamond
assortment from microdiamonds).
Bulk- (ii) Discuss micro- and macro- diamond sample results per geological domain.
Sampling Discuss stone-size and -number distribution (Size-frequency distribution). Include the suitability of the sample
11.3 (iii)
and/or trial- size to the stage of the project and its relevance for both SFD and valuation (assortment) purposes.
mining (iv) State the top and bottom sieve cut-off sizes.
(v) Discuss diamond breakage, where relevant
Define the unit of grade measure used in the document (e.g. carat per units of mass, area or volume). Where
(vi)
carats per unit of mass is used, include a discussion of mass to tonnage conversion.
Estimation Describe in detail any estimation techniques (including geostatistical estimation, where relevant) used to
11.4 (i)
and determine the volume/tonnage, grade and value data, including their applicability to the deposit type.
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Section 11: Reporting of Diamonds and Gemstones

Modelling Express applicable volumes,
State all Diamond Reserve
Techniques grades and values in ranges (with State all Diamond Resource
estimates so as to convey the
appropriate clarifiers to denote lack estimates so as to convey the order
(ii) order of accuracy of the estimates
of reliability of data). The use of of accuracy by rounding off to
by rounding off to appropriately
"ranges" in this context has no appropriately significant figures.
significant figures.
statistical connotation
Discuss volume/tonnage, grade
and value information per identified Discuss volume/tonnage, grade and value information per identified
(iii)
domain (where possible, even if in domain
a very preliminary form)
If grades are reported then state
clearly whether these are regional
averages, based on microdiamond
assessment, KIM analyses, or if
they are selected individual
samples taken from the property
under discussion. The occurrence State that the grades for the State that the grades for Diamond
of individual diamonds or Diamond Resources are estimated Reserves have been estimated
(iv)
microdiamonds in surficial deposits from sampling data derived from from bulk-sampling and/or trial-
or from inadequate samples (too the property itself mining
small to be statistically valid) from
a primary or secondary rock
source would not typically qualify
as an exploration target. This may
not be true for marine deposits, in
which case further explanation and
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Section 11: Reporting of Diamonds and Gemstones

discussion would be necessary.

Report all diamond values in US$/ct. If reference is made to local currencies, then provide the prevailing
(v)
exchange rate as well as the effective date of the exchange rate. Also supply the date of valuation.

Specify details of the type and size of individual samples (including top and bottom cut-off size, in millimetres,
(vi)
used in the recovery).

(vii) Discuss the representivity of the type, size, number and location of the samples

Discuss geostatistical estimation (where relevant) and interpolation techniques applied and their applicability
(viii)
to the deposit type
Specify the number and total weight (in carats) of diamonds recovered. The weight of diamonds recovered
may only be omitted from the report when the diamonds are less than 0.5mm in size (i.e. when the diamonds
(ix)
recovered are microdiamonds) or when the diamonds are below a specified commercial cut-off value, which
must be specified.
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Section 11: Reporting of Diamonds and Gemstones

Disclose the number of stones and the total number of carats used in
(x) the SFD, grade and value estimation and discuss the validity of this
data.
Note whether a strict lower cut-off has been applied or if the modelled
(xi) results include incidental diamonds below the lower cut-off? Discuss the
implications.
Present aspects of spatial structure analysis and grade and value
(xii)
distribution
Present aspects of micro and macro- diamond sample results per
(xiii)
domain
Present aspects of the effect on sample grade and value with change in
(xiv)
bottom cut off screen size.
Describe any adjustments made to size distribution for sample plant
(xv)
performance and performance on a commercial scale, where applicable.
Confirm that valuations have not been reported for samples of diamonds
processed using total liberation methods (which are commonly used for
(xvi)
processing kimberlite exploration samples and which are based on
microdiamonds).
Justify the use of microdiamonds to extrapolate diamond value at depth
(xvii) through the presentation of geological and size frequency distribution
models
State the name, qualifications, experience and independence of the
(xviii) recognised expert responsible for the classification and valuation of the
diamond parcel(s).
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Section 11: Reporting of Diamonds and Gemstones

For each diamond parcel valued, supply information relating to the
number of stones and the carats and size distribution using a standard
(xix) progression of sieve sizes or diamond mass ranges for each identified
geological domain. For marine or alluvial placers, the average price per
average stone size may be used instead of a size distribution
State that the valuation is on the run-of-mine diamond parcel (i.e. not
(xx)
partial parcel)
Define the unit of grade measure used in the resource/reserve
estimation (e.g. carat per units of mass, area or volume). Where carats
(xxi)
per unit of volume is used, include a discussion of mass to tonnage
conversion.
A Diamond Resource/Reserve must be described in terms of
volume/tonnage, grade and value. A Diamond Resource/Reserve must
not be reported in terms of contained diamond content unless
(i)
corresponding tonnages/volumes, grades and values are also reported.
The average diamond grade and value must not be reported without
Resource/ specifying the applicable bottom cut-off screen size.
Reserve Discuss issues surrounding stone frequency (stones per cubic metre,
11.5
Classification per tonne, or per square metre) and stone size (carats per stone)
Criteria (ii) relating to grade (carats per cubic metre, per tonne or per square
metre). Consider the elements of uncertainty in these estimates and
develop the Diamond Resource classification accordingly.
Present relevant aspects of stone size and number distribution, including
(iii) the applicability of the parcel size. Note that a Diamond
Resource/Reserve may not be declared without reference to an SFD.
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SAMREC TABLE 1

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Section 11: Reporting of Diamonds and Gemstones

Present aspects of global sample grade per geological domain and local
(iv)
block estimates in the case of Indicated Resources
State that the samples were sealed after excavation and discuss the chain of custody from source to reporting
(i)
of results
Discuss security standards in sampling plant and recovery sections of bulk-sampling/trial-mining programmes
(ii)
for macrodiamonds
Describe the type of facility, treatment rate, and accreditation (if any) of the sample plant. It is especially
important to discuss the bottom screen size, top screen size and recrush parameters, in addition to the
(iii)
concentration methodology (e.g. pan, DMS, Optical, etc.) and the recovery technique (e.g. grease, X-ray,
hand-sorting, etc.).
Discuss valuer location, escort, delivery, cleaning losses, reconciliation with recorded sample carats and
(iv)
Audits and number of stones;
11.6 State whether core samples were washed prior to treatment for microdiamonds and discuss the use of
Reviews (v)
diamond drill-bits
(vi) State whether any audit samples were treated at alternative facilities

(vii) Discuss QA/QC of sampling results, including the process efficiency, tailings auditing and granulometry

(viii) Discuss the recovery of tracer monitors used in sampling and treatment

(ix) Discuss geophysical (logged) density and particle density, where relevant

(x) Discuss cross-validation of sample weights, wet and dry, with hole volume and density, moisture factor
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Section 12: Reporting of Industrial Minerals

Confirm that the reports on Industrial Mineral deposits take cognisance of Sections 80 of the Code and Sections
(i)
1 - 9 of Table 1.
Describe the exploration or geologically specific specialised industry techniques appropriate to the minerals
(ii)
under investigation
Describe the nature and quality of sampling or specific specialised industry standard measurement tools
(iii)
appropriate to the minerals under investigation
Describe the appropriate saleable product qualities being reported. Describe the basis for reporting (physical or
Specific for (iv) chemical parameters, air-dried basis, dry basis, etc.). Reporting of deleterious chemical elements or physical
Reporting parameters is required.
12.1 State assumptions regarding in particular mining methods, infrastructure, metallurgy, environmental and social
of Industrial (v)
Minerals parameters. Explain where no mining related assumptions have been made.
(vi) Disclose and discuss the marketing parameters, customer specifications, testing, and acceptance requirements.
Discuss the nature, amount and representativeness of metallurgical studies completed which form the basis for
(vii)
the various saleable materials which may be priced for different chemical and physical characteristics.
Present the defined reference point of the reported tonnages and grades/qualities. Where the reference point is
the point is a saleable product, a clarifying statement is included to ensure that the reader is fully informed as to
(viii)
what is being reported. State whether the tonnages and grades/qualities of the material delivered to the plant or
after recovery.
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Section 13: Reporting using Metal Equivalents

(i) Confirm that reports on all deposits take cognisance of Sections 73 of the Code and Sections 1 - 9 of Table 1.
Discuss and describe the basis for the grade estimation for each metal
(ii)
relating to the metal equivalence
Specific for
Disclose all economic criteria that have been used for the calculation such
Metal
13.1 (iii) as exchange rates, revenue / price curves, royalties, cut-off grades, pay
Equivalents
limits.
Reporting
Discuss the basis for assumptions or predictions regarding metallurgical
(iv)
factors such as recovery used in the metal equivalents calculation.
(v) Show the calculation formula used.
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SAMREC TABLE 2
PRELUDE

This guideline to Technical Studies is provided as a guide to the compilation of the various studies relating to Mineral Resources and
Mineral Reserves. It is designed to be read in conjunction with Table 1 and the Code.
• Scoping Studies, Pre-Feasibility Studies, Feasibility Studies (and on-going life-of-mine studies) analyse and assess the same
geological, engineering, and economic factors with increasing detail and precision. Therefore, the same criteria may be used as
a framework for reporting the results of all three studies.
• The criteria for Pre-Feasibility Study are considered the minimum requirements for a Life of Mine Plan.
• Scoping Studies cannot convert Inferred Mineral Resources to Mineral Reserves
• Technical studies may not include Exploration Targets or Mineralisation

SAMREC TABLE 2
General Scoping Study Prefeasibility Study Feasibility Study
Resource categories Mostly Inferred Mostly Indicated Measured and Indicated
Reserve categories None Mostly Probable Proved and Probable
Mining method and geotechnical
Conceptual Preliminary Options Detailed and Optimized
constraints
Mine design Preliminary mine plan and Detailed mine plan and
None or high-level conceptual
schedule schedule
Scheduling Monthly for much of payback
Annual approximation Quarterly to annual
period
Mineral Processing Metallurgical test work Preliminary Options Detailed and Optimized
Permitting - (water, power,
Preliminary applications Authorities engaged and
mining, prospecting & Required permitting listed
submitted applications submitted
environmental)
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Contracts/agreements in place
Formal communication
Initial contact with local with local communities and
Social licence to operate structures and engagement
communities municipalities (local
models in place
government)
Risk tolerance High Medium Low

Capital Cost Category Scoping Study Prefeasibility Study Feasibility Study

Basis of Estimate to include the
following areas:
Civil/structural, architectural, Estimated from historic factors Detailed from engineering at
piping/HVAC, electrical, Order-of-magnitude, based on or percentages and vendor 20% to 50% complete,
instrumentation, construction historic data or factoring. quotes based on material estimated material take-off
labour, construction labour Engineering < 5% complete. volumes. Engineering at 5-20% quantities, and multiple vendor
productivity, material complete. quotations
volumes/amounts,
material/equipment, pricing,
infrastructure
Percentage of direct cost by
Included in unit cost or as a Written quotes from contractor
Contractors area for contractors; historic for
percentage of total cost and subcontractors
subcontractors
Engineering, procurement, and
Percentage of estimated Key parameters, Percentage of
construction management Detailed estimate
construction cost detailed construction cost
(EPCM)
FOB mine site, including taxes FOB mine site, including taxes FOB mine site, including taxes
Pricing
and duties and duties and duties
Budgeted quotes on key
Factored, benchmark, parameters and estimates from
Owner’s costs Detailed estimate
database or historic estimate experience, factored from
similar project
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Estimate prepared from

Environmental compliance / Estimate from experience, detailed zero-based budget for
Factored from historic estimate
Closure Cost factored from similar project design engineering and specific
permit requirements
Based on entity’s current
Escalation Not considered Based on cost area with risk
budget percentage
Accuracy Range (Order of
±25-50% ±15-25% ±10-15%
magnitude)
Contingency Range (Allowance 10% - 15% (actual to be
for items not specified in scope ±30% 15-30% determined based on risk
that will be needed) analysis)

Estimated from historic factors

Order-of-magnitude based on or percentages and vendor
Basis Detailed estimate
historic data or factoring. quotes based on material
volumes.
Specific estimates with some
Operating quantities General Detailed estimates
factoring
Estimates for labour, power,
Based on historic data for Letter quotes from
Unit costs and consumables, some
factoring vendors; minimal factoring
factoring
Accuracy Range ±25-50% 15% - 25% 10% - 15%
Contingency Range (Allowance
+ 10% (actual to be determined
for items not specified in scope + 25% + 15%
based on risk analysis)
that will be needed)
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APPENDIX 1
RECOMMENDED TABLE OF CONTENTS FOR COMPETENT PERSON’S
REPORT (CPR)
This table of contents is given only as a guide to the compilation of CPRs. It is designed to
incorporate all of the requirements of Table 1. This Appendix should be read in conjunction
with Table 1 and the Code. It is recommended that a Public Report include a CPR or
reference to where the supporting documentation can be found e.g. a website.
General
The Terms of Reference or scope of work should be presented.
State for whom the report was prepared, whether it is intended as a full or partial evaluation
or for other purpose, what work was conducted, the effective date of the report, and what
work remains to be done.
List the sources of information and data contained in the report or used in its preparation,
with citations if applicable.
Transparency, competency and materiality are overriding principles that determine what
information should be publicly reported. The Competent Person (CP) must provide sufficient
comment on all matters that might materially affect a reader’s understanding or interpretation
of the results or estimates being reported.
Publicly reported information should be sufficient to enable a reader to make a reasonable
and balanced assessment of the significance of this information. It is, however, important to
report any matters that might materially affect a reader’s understanding or interpretation of
the results or estimates being reported. This is particularly important where inadequate or
uncertain data affect the reliability of, or confidence in, a statement of Exploration Results or
an estimate of Mineral Resources or Mineral Reserves.
In some cases, it will be appropriate for a Public Report to exclude some commercially
sensitive information. A decision to exclude commercially sensitive information would be a
decision for the entity issuing the Public Report. The decision must be disclosed, and
justification provided. In these cases, the report should provide summary information (for
example, the methodology used to determine the economic assumptions where the
numerical values of those assumptions are commercially sensitive) and context for the
purpose of informing investors or potential investors and their advisors.
The Public Report should include sufficient context and cautionary language to allow a
reader to understand the nature, importance, and limitations of the data, interpretations, and
conclusions.
The evaluation and reporting of mineral projects and forward-looking mine plans or
statements from ongoing operations are expressions of judgment, predicated on knowledge
and experience.
The CP must state that ’the declaration has been made in terms of the guidelines of the
SAMREC Code’.
Diagrams, maps, plans, sections and illustrations in Public Reports should be legible and
prepared at an appropriate scale to distinguish important features. Maps should be dated
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and include a legend, author or information source, coordinate system and datum, a scale in
bar or grid form, and an arrow indicating north. Include and reference a location or index
map and more detailed maps showing all important features described in the text, including
all relevant cadastral and other infrastructure features.
Title Page
Include a title page setting out the title of the CPR, the general location of the mineral
project, the name and professional designation of each CP, the effective date of the CPR
and the date of signature.
Executive Summary
Briefly summarise important information in the Public Report, including property description
and ownership, geology and mineralisation, the status of exploration, development and
operations, Mineral Resource and Mineral Reserve estimates, and the CP’s conclusions
and recommendations. If Inferred Mineral Resources are used, show the summary
valuation with and without inclusion of such Inferred Mineral Resources. The Executive
Summary should be sufficiently detailed so as to allow the reader to understand the
essentials of the project.
Table of Contents
Provide a table of contents listing the contents of the CPR, including figures and tables.

1 Introduction
• Terms of reference and scope of work
• Sources of information
• Units and currency
• Site inspection or Field involvement of CP
• Disclaimers and reliance on other experts or third-party information.

2 Project Outline
• Property description
• Property location
• Country profile
• Legal aspects and permitting
• Royalties and liabilities.

3 Accessibility, Physiography, Climate, Local

Resources and Infrastructure
• Topography, elevation, fauna and flora
• Climate
• Access
• Proximity to population centres
• General infrastructure.
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4 Project History
• Previous ownership
• Previous exploration and/or project/mine development (compliance or
noncompliance with the SAMREC Code or other international reporting code
should be presented)
• Previous Mineral Resource estimates (compliance or noncompliance with the
SAMREC Code or other international reporting code should be presented)
• Previous Mineral Reserve estimates (compliance or noncompliance with the
SAMREC Code or other international reporting code should be presented)
• Previous production.

5 Geological Setting, Mineralisation and

Deposit Types
• Geological setting
• Nature of, and controls on, mineralisation
• Geological models
• Nature of deposits on the property
• Deposit types and mineralisation.

6 Exploration Data/Information
• Remote sensing data and interpretations
• Geophysics
• Mapping
• Structural studies
• Drilling
• Sampling
• Database management
• QA/QC analysis
• Survey data verification, audits and reviews
• Metallurgical sampling and test work.

7 Mineral Resource Estimates

• Estimation and modelling techniques
• Mineral Resource classification criteria
• Reasonable prospects for eventual economic extraction
• Mineral Resource statement
• Mineral Resource reconciliation.
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8 Technical Studies (refer to Table 2)

• Geotechnical and geohydrology
• Mine design and schedule
• Metallurgical (processing/recovery)
• Project infrastructure
• Market studies and contracts
• Environmental studies
• Legal and permitting
• Taxation
• Social or community Impact
• Mine closure
• Risk assessment
• Capital and operating costs
• Economic criteria
• Economic analysis.

9 Mineral Reserve Estimates

• Estimation and modelling techniques
• Mineral Reserve classification criteria
• Mineral Reserve statement
• Mineral Reserve reconciliation.

10 Other Relevant Data and Information

• Adjacent properties
• Risk assessments.

11 Interpretation and Conclusions

Summarise the relevant results and interpretations of the information and analysis being
reported. Discuss any significant risks and uncertainties that could reasonably be
expected to affect the reliability or confidence in the Exploration Results, Mineral
Resource or Mineral Reserve estimates, or projected economic outcomes. Discuss any
reasonably foreseeable impacts of these risks and uncertainties to the project's potential
economic viability or continued viability. A CPR concerning exploration information
should include the conclusions of the CP.

12 Recommendations
Provide particulars of recommended work programmes and a breakdown of costs for
each phase. If successive phases of work are recommended, each phase should
culminate in a decision point. The recommendations should not apply to more than two
phases of work. The recommendations should state whether advancing to a subsequent
phase is contingent on positive results in the previous phase. In some specific cases,
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the CP may not be in a position to make meaningful recommendations for further work.
Generally, these situations will be limited to properties under development or in
production where material exploration activities and engineering studies have largely
concluded. In such cases, the CP should explain why they are not making further
recommendations.

13 References
Include a detailed list of all references cited in the CPR.

14 Appendices
• Supporting information
• Glossary of terms
• Abbreviations
• Compliance statement and certificate of competence
• Consent form (if relevant).

Date and Signature Page

The CPR should have a signature page (at either the beginning or end of the CPR). The
effective date of the CPR and date of signing should be on the signature page.
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APPENDIX 2
CERTIFICATE OF COMPETENT PERSON

This Certificate of Competent Person is given only as a guide to the CP. It is designed to
incorporate all of the requirements of the Code.

Certificate of Competent Person

As the author of the report entitled [report title], I hereby state:
1. My name is [Competent Person’s name] and [details – position in company, company
name, address].
2. [Profession and details of registration body].
3. [Qualifications]
4. [Relevant experience].
5. I am a ’Competent Person’ as defined in the SAMREC Code.
6. [Work undertaken or services rendered].
7. [Site inspection details].
8. [Details of aspects of this report for which the CP is responsible].
9. I am not aware of any material fact or material change with respect to the subject matter
of the Report that is not reflected in the Report, the omission of which would make the
Report misleading.
10. I declare that this Report appropriately reflects the Competent Person’s/author’s view.
11. I am independent/not independent of [name of issuer].
12. I have read the SAMREC Code (2016) and the Report has been prepared in accordance
with the guidelines of the SAMREC Code.
13. I do not have, nor do I expect to receive, a direct or indirect interest in the [project/mine
details] or [name of issuer] OR I am an [employee/shareholder/director or other
interested party] in respect of the issuer [name of issuer] or the project/mine.
14. At the effective date of the Report, to the best of my knowledge, information and belief,
the Report contains all scientific and technical information that is required to be disclosed
to make the Report not misleading.

Dated at [place] and [date].

[Signed]
[Name of CP]
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APPENDIX 3
COMPLIANCE STATEMENTS

These compliance statements are given only as a guide to the CP (delete bullet points which
do not apply). They are designed to incorporate all of the requirements of the Code.
For Public Reports of Exploration Targets, initial or materially changed reports of Exploration
Results, Mineral Resources or Mineral Reserves:
‘The information in this report that relates to Exploration Targets, Exploration Results,
Mineral Resources is based on information compiled by [insert name of Competent
Person]), a Competent Person who is registered with SACNASP, ECSA or SAGC, or
is a Member or Fellow of the SAIMM, the GSSA, IMSSA or a Recognised
Professional Organisation (RPO) included in a list of recognised organisations
promulgated by the SSC from time to time (select as appropriate and insert the name
of the professional organisation of which the Competent Person is a member and the
Competent Person’s grade of membership).
• If the Competent Person is a full-time employee of the company:
‘[name of Competent Person] is a full-time employee of the [name of
company].’
• If the Competent Person is not a full-time employee of the company:
‘[name of Competent Person] is employed by [name of Competent Person’s
employer].’
• The full nature of the relationship between the Competent Person and the
reporting Company should be declared together with the Competent Person’s
details. This declaration should outline and clarify any issue that could be
perceived by investors as a conflict of interest.
For all reports:
‘[name of Competent Person] has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity being
undertaken to qualify as a Competent Person as defined in the 2016 Edition of the
‘The South African Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves’. [name of Competent Person] consents to the inclusion in the report
of the matters based on his (or her) information in the form and context in which it
appears.’
For any subsequent Public Report based on a previously issued Public Report that refers to
those Exploration Results or estimates of Mineral Resources or Mineral Reserves:
Where a Competent Person has previously issued the written consent to the
inclusion of their findings in a report, a company re-issuing that information to the
Public whether in the form of a presentation or a subsequent announcement shall,
state the report name, date and reference the location of the original source Public
Report for public access.
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• ‘The information is extracted from the report entitled [report title] created on
[date] and is available to view on [website name]. The company confirms that it
is not aware of any new information or data that materially affects the
information included in the original market announcement and, in the case of
estimates of Mineral Resources or Mineral Reserves, that all material
assumptions and technical parameters underpinning the estimates in the
relevant market announcement continue to apply and have not materially
changed. The company confirms that the form and context in which the
Competent Person’s findings are presented have not been materially modified
from the original market announcement.’