The Proposed 2016 SAMREC Code

"The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (the SAMREC Code or the Code) sets out minimum standards, recommendations and guidelines for public reporting of exploration results, mineral resources and mineral reserves in South Africa. The Code is being rewritten and updated, with work on-going since 2013. The revision is being undertaken to ensure the Code remains relevant, incorporates developments within the international mining industry and keeps abreast of technology. Some of the changes and their reasons are discussed. INTRODUCTION The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (the SAMREC Code or the Code) sets out minimum standards, recommendations and guidelines for public reporting of Exploration Results, Mineral Resources and Mineral Rreserves in South Africa. The Code is being rewritten and updated, with work on-going since 2013. The proposed 2016 update is not significantly different from previous versions of the Code. The revision is being undertaken to ensure the Code remains relevant, incorporates developments within the international mining industry and keeps abreast of technology. The Code sets out minimum standards, recommendations and guidelines for public reporting. However, reporting may be unclear, ambiguous, selective, obscure, distorted or unintelligible. Part of the purpose of the update is to provide better guidelines to Competent Persons (CPs) to ensure that the material information is being reported and that reporting is transparent in accordance with the guidelines of the Code. The information provided should, as required by the Code, be adequate to inform the “reader/investor or potential investor to make a reasonable and balanced assessment of the significance of the information”. The Committee for Mineral Reserves International Reporting Standards (CRIRSCO) highlights the importance of the reporting Codes, as provided from a quote from their website (www.crirsco.com): The mining industry is a vital contributor to national and global economies. It is a truly international business that depends on the trust and confidence of investors and other stakeholders for its financial and operational well-being. Unlike many other industries, it is based on depleting mineral assets, the knowledge of which is important prior to the commencement of extraction. It is therefore essential that the industry communicates the risks associated with investment effectively and transparently in order to earn the level of trust necessary to underpin its activities."