The SAMREC Code 2105 — Some Thoughts and Concerns

"SynopsisThis paper is intended to document recent personal thoughts, opinions, and debate around the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (the SAMREC Code) (2009) and its current usage by Competent Persons. Admittedly, some debates are as old as the SAMREC Code itself and have been ‘parked’ as no consensus could be reached by members of the SAMREC Working Group.Some of the more critical issues currently under examination are the definition of Competent Person and the potential registration of Competent Persons, the current re-write of the Code, and the introduction of reporting of Exploration Results, Mineral Resources, and Mineral Reserves on an ‘If not – why not’ basis, noncompliance with the Code and discipline, the role of the Johannesburg Stock Exchange Readers Panel, and the valuation of mineral assets based on scoping studies.IntroductionThis paper is intended as a personal memoir of recent thoughts and debate around the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (the SAMREC Code) (2009) (‘the Code’). Admittedly, some debates, such as reporting of Mineral Reserves inclusive or exclusive of the Mineral Resource, are as old as the SAMREC Code itself and have been ‘parked’ as no consensus could be reached by members of the South African Mineral Resource Committee (SAMREC) Working Group. The author, who has been involved with the SAMREC Working Group since 2007, offers observations in his personal capacity as a professional mining engineer with the intent of getting practitioners to contemplate the influence of the Code on the mineral industry. Current practices in the compilation and reporting of Exploration Results, Mineral Resources, and Mineral Reserves are often deficient in adhering to the Code and a conscious effort must be made by the mining sector to improve the standard of public reporting, in particular Competent Person Reports (CPRs) and Public Reports issued by listed mineral exploration and mining companies."