Orebody modelling, mine, planning, reserve evaluation and the regulatory environment

In all major financial markets mining companies are required to publicly report Mineral Reserves and, in most circumstances, Mineral Resources. The objective is to give investors reliable information that can be used to make sound decisions with clear understanding of the risk inherent to investing in the mining sector of the financial market. Regulators have developed rules aimed at ensuring that the information being reported is accurate and relevant. The codes and guidelines that must be followed to model deposits, develop mine plans and demonstrate economic feasibility are nearly, but not exactly, identical in all major financial markets. Generally accepted definitions and guidelines are reviewed. Mining companies must put in place processes which ensure that resources and reserves are estimated and reported as required by regulators and as expected by investors. The role of the Competent Person is analysed. Sources of errors are investigated, with recommendations on how to minimise such errors or mitigate their effect. The importance of specialists other than the Competent Persons is discussed. A manager of resources and reserves, should be nominated, whose primary responsibility is to establish, maintain and assess the effectiveness of an adequate internal control. structure and procedures for resource and reserve estimation and reporting.