Salient Issues In The Reporting Of Mineral Resources And Mineral Reserves In The Vein And Reef Mining

Mineral resource evaluation and estimation process is not an exact science; however it depends on the knowledge and experience of the competent person and his ability to apply his mind, make reasonable assumptions, interpretations and exercise sound judgment in the mineral resource estimation process. The mineral resource evaluation results in a mineral resource statement are disclosed to investors. The minerals industry is presently undergoing rapid changes in legislation governing the public reporting of mineral assets. It has gone through different phases of development with respect to the reporting of mineral resources and mineral reserves (mineral assets). In the past no reporting was done and currently mineral assets are reported as a supplementary section that briefly describes the mineral asset termed ?the mineral reserve and mineral resource statement?. The current industry trend appears to be going towards recognition and disclosure of the mineral assets on to the balance sheet. This paper explores the salient issues behind the mineral resources and mineral reserve statement of vein and reef deposits published in the public domain. It also highlights the potential misleading consequences of these issues and which filter through to the valuation of these particular mineral assets. The creation of reporting standards in the minerals industry has made significant inroads in standardizing and consolidating the interpretation and understanding of the different classification categories in the industry in an effort to promote common interpretation towards these salient issues.