Resource Classification - Keeping the End in Sight

Current classification of resources is entirely a subjective task. The various international reporting codes (such as the JORC Code) provide Competent Persons and practitioners with little specific guidance on the standard of work and levels of uncertainty required to classify resources into Measured, Indicated and Inferred. Furthermore, little guidance is given in the conversion of Resources to Reserves and the potential impacts on classification of uncertainties in the modifying factors. Working back from the intended use of the resource estimates, and in understanding the tolerance for uncertainty by the end user of such estimates, insights into the objective and requirements of classification can be determined. Following this approach a comprehensive set of (quantitative where possible) guidelines have been determined that will ensure resources meet the desired objective of each classification, and are consistent and comparable. The guidelines look at what is required for each step in the resource estimation process in order to ensure the final resource estimate meets the desired level of confidence. This approach provides a transparent, comprehensive, justifiable and largely objective method of classification. The implication of introducing such a guideline or approach is to highlight areas of a resource estimation that do not meet the requirements (ie drive the uncertainty beyond the objective) and then focus in on the risks that may flow on from that particular uncertainty, to mitigate or attempt to control those risks.