Auditing Resources and Reserves at Newmont Australia

Risk management for resources and reserves includes examining the fundamental processes of data collection, interpretation, modelling and estimation. Newmont Australia has developed a procedures manual to assist mine sites to build Resource block models, estimate Ore Reserves, validate the outcome and report the results. An audit scheme has been developed to compliment the procedures manual by assessing the degree of site compliance with recommended practice. A score of between one and five stars is awarded to each site depending on its performance in the audit. Audits are undertaken by a team of three Newmont personnel over a three to five day period at each site. Scores are ultimately compared between sites and reviewed annually. The objective of the program is to encourage continuous improvement in the modelling, estimation, validation and reporting practices used at sites and in advanced projects. The scheme provides a method of risk management for the companyÆs biggest asset û its Ore Reserves. Newmont Mining Corporation is preparing to use the audit scheme internationally in part to conform with recent legislation requiring US companies to demonstrate that management systems and procedures are in place to monitor and verify the companyÆs assets.