Abstract
Critical Review of Mineral Resource Classification Techniques in the Gold Mining Industry
Highlights
Purpose of the StudyCapital-intensive investment decisions are made in the mining industry with respect to confidence levels displayed in the mineral resources and reserves
This paper focuses on the review of 45 NI 34-101 technical reports of gold deposits which were obtained from System for Electronic Document Analysis and Retrieval (SEDAR) website plus one major gold mining company’s publicly available general classification guidelines
After evaluating the different reports, it was realized that the mineral industry players use different procedures to categorize blocks into different classes, confirming irregular methodology used in the classification of mineral resources
Summary
Purpose of the StudyCapital-intensive investment decisions are made in the mining industry with respect to confidence levels displayed in the mineral resources and reserves. The quality and quantity of materials estimated to be mined from a deposit have economic implications on the production schedule. The various industry mineral resource reporting standard codes provide guidelines to be followed in generating classification reports, different mining companies use various procedures because each Competent Person (CP) or Qualified Person (QP) uses different assumptions, since none of the codes provides consistent assumptions to be adopted for reporting purposes. This has created classification categorization inconsistencies, leading to the disclosure of mineral resource reports with different accuracies in the industry. Mineral re-source classification is a key requirement for public reporting of economic assessment and investor confidence in a mineral project
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