Lecture by: DR.

EUNUSE AKON

Classification Scheme of Mineral Deposits

Classification Scheme of Mineral Deposits
Classification Scheme of Mineral Deposits
Classification Scheme of Mineral Deposits
Classification Scheme of Mineral Deposits
Classification Scheme of Mineral Deposits
Classification Scheme of Mineral Deposits
• There are several classification schemes worldwide, however the Canadian
CIM classification, the Australasian Joint Ore Reserves Committee Code
(JORC Code), the South African Code for the Reporting of Mineral Resources
and Mineral Reserves (SAMREC), United Nations Framework Classification
(UNFC) are the general standards
• The JORC Code has been adopted by The Australasian Institute of Mining and
Metallurgy (The AusIMM) and the Australian Institute of Geoscientists (AIG)
and is binding on members of those organisations.
• The Code has also been adopted by and included in the listing rules of the
Australian Securities Exchange (ASX) and the New Zealand Stock Exchange
(NZX).
• A Public Report must be prepared in accordance with the Code if it includes a
statement on Exploration Results, Mineral Resources or Ore Reserves. The
principles governing the operation and application of the JORC Code are
Transparency, Materiality and Competence.
Classification Scheme of Mineral Deposits
• The words ‘JORC compliant’ should be interpreted to mean: ‘Reported in accordance
with the JORC Code and estimated (or based on documentation prepared) by a
Competent Person as defined by the JORC Code’.
• The Code is applicable to all solid minerals, including diamonds, other gemstones,
industrial minerals and coal, for which Public Reporting of Exploration Results,
Mineral Resources and Ore Reserves is required by the Australian Securities
Exchange and the New Zealand Stock Exchange.
• Public Reports are reports prepared for the purpose of informing investors or
potential investors and their advisers on Exploration Results, Mineral Resources or
Ore Reserves. They include, but are not limited to, annual and quarterly company
reports, press releases, information memoranda, technical papers, website
postings and public presentations.
• Public Reports are required to fairly reflect Exploration Results, Mineral Resource
and/or Ore Reserve estimates, and supporting documentation, prepared by a
Competent Person.
• CIM (Canadian Institute of Mining, Metallurgy and Petroleum)
Reporting of Exploration Information, Mineral Resources and
Mineral Reserves.
• Exploration Information/Exploration Results
• Exploration information means geological, geophysical, geochemical, sampling,
drilling, trenching, analytical testing, assaying, mineralogical, metallurgical and
other similar information concerning a particular property that is derived from
activities undertaken to locate, investigate, define or delineate a mineral prospect
or mineral deposit.
• Exploration Results include data and information generated by mineral
exploration programmes that might be of use to investors but which do not form
part of a declaration of Mineral Resources or Ore Reserves.
• Examples of Exploration Results include results of outcrop sampling, assays of drill
hole intersections, geochemical results and geophysical survey results. Listing all
results, along with sample intervals (or size, in the case of bulk samples), or by
reporting weighted average grades of mineralised zones, indicating clearly how the
grades were calculated.
• Reporting of selected information such as isolated assays, isolated drill holes, assays
of panned concentrates or supergene enriched soils or surface samples, without
placing them in perspective is unacceptable.
Mineral Resource Vs Mineral Reserve
• Mineral Resource and Mineral Reserve have been classified into various
categories. The category to which a resource or reserve estimate is assigned
depends on the level of confidence in the geological information available on
the mineral deposit; the quality and quantity of data available on the deposit;
the level of detail of the technical and economic information which has been
generated about the deposit, and the interpretation of the data and
information.
• Mineral reserves are those parts of mineral resources which result in an
estimated quantity and grade (quality) which is the basis of an economically
viable project after taking all relevant factors into account. Thus, the main
difference between a mineral resource and a mineral reserve is that a mineral
resource is based on geological interpretation and a mineral reserve is
analysed further taking the mining operation into account.

• The relationship between the mineral resource and mineral reserve

categories are displayed in the following figure:
Mineral Resources vs. Mineral Reserves
Mineral Resource Vs Mineral Reserve

• General relationship between Exploration Results, Mineral Resources and Ore

Reserves.
• ( JORC Code, 2012 Edition )
Mineral Resource
A ‘Mineral Resource’ is a concentration or occurrence of solid material of economic
interest in or on the Earth’s crust in such form, grade (or quality), and quantity that there
are reasonable prospects for eventual economic extraction. The location, quantity, grade
(or quality), continuity and other geological characteristics of a Mineral Resource are
known, estimated or interpreted from specific geological evidence and knowledge,
including sampling. The economic viability is premature and intends to establish after
the advance stages of exploration. Mineral Resources are sub-divided, in order of
increasing geological confidence, into Inferred, Indicated and Measured categories.
The term Mineral Resource covers mineralization and natural material of intrinsic economic
interest which has been identified and estimated through exploration and sampling and within
which Mineral Reserves may subsequently be defined by the consideration and application of
technical, economic, legal, environmental, socio-economic and governmental factors. The phrase
„reasonable prospects for economic extraction implies a judgement by the Qualified Person in
respect of the technical and economic factors likely to influence the prospect of economic
extraction. It is a realistic inventory of mineralisation which, under assumed and justifiable
technical, economic and development conditions, might, in whole or in part, become
economically extractable. Portions of a deposit that do not have reasonable prospects for
eventual economic extraction must not be included in a Mineral Resource.
Inferred Mineral Resource
• An ’Inferred Mineral Resource’ is that part of a Mineral Resource for which
quantity and grade (or quality) are estimated on the basis of geological
evidence and limited sampling and reasonably assumed, but not verified,
geological and grade continuity. The estimate is based on limited
information and sampling gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes.
• An Inferred Mineral Resource has a lower level of confidence than that
applying to an Indicated Mineral Resource and must not be converted to
an Ore Reserve. It is reasonably expected that the majority of Inferred
Mineral Resources could be upgraded to Indicated Mineral Resources with
continued exploration.
• Inferred mineral resources must be excluded from estimates forming the basis
of feasibility or other economic studies. There is no direct link from an Inferred
Mineral Resource to any category of Ore Reserves ( Figure)
Indicated Mineral Resource
• An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which
quantity, grade (or quality), densities, shape and physical characteristics are
estimated with sufficient confidence to allow the application of Modifying
Factors in sufficient detail to support mine planning and evaluation of the
economic viability of the deposit. The estimate is based on detailed and
reliable exploration and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and
drill holes that are spaced closely enough for geological and grade
continuity to be reasonably assumed. An Indicated Mineral Resource has a
lower level of confidence than that applying to a Measured Mineral
Resource and may only be converted to a Probable Ore Reserve.
• An Indicated Mineral Resource estimate is of sufficient quality to support a
Preliminary Feasibility Study which can serve as the basis for major
development decisions.
Measured Mineral Resource
• A ‘Measured Mineral Resource’ is that part of a Mineral Resource for which quantity, grade
(or quality), densities, shape, and physical characteristics are estimated with confidence
sufficient to allow the application of Modifying Factors to support detailed mine planning
and final evaluation of the economic viability of the deposit. Geological evidence is derived
from detailed and reliable exploration, sampling and testing gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and drill holes, and is
sufficient to confirm geological and grade (or quality) continuity between points of
observation where data and samples are gathered. A Measured Mineral Resource has a
higher level of confidence than that applying to either an Indicated Mineral Resource or an
Inferred Mineral Resource. It may be converted to a Proved Ore Reserve or under certain
circumstances to a Probable Ore Reserve.
• Mineralization or other natural material of economic interest may be classified as a Measured Mineral
Resource when the nature, quality, quantity and distribution of data are such that the tonnage and grade
of the mineralization can be estimated to within close limits and that variation from the estimate would
not significantly affect potential economic viability. This category requires a high level of confidence in, and
understanding of, the geology and controls of the mineral deposit.
• Depending upon the level of confidence in the various Modifying Factors it may be converted to a Proved
Ore Reserve (high confidence in Modifying Factors), Probable Ore Reserve (some uncertainty in Modifying
Factors). or may not be converted at all (low or no confidence in some of the Modifying Factors.
 Mineral Reserve/Ore Reserve
The mineral reserve or precisely ore reserve is that well defined part of the deposit at
specific cutoff after completion of detailed exploration. The reserve is estimated with
a high level of confidence based on detail and reliable information. The sample
locations are spaced closely enough to confirm geological and/or grade continuity.
This reserve must be techno-economically viable. The geological characteristics must
be so well established to support production planning. The deposit can be mined and
marketed at a profit. The metallurgical tests show optimum recovery. A pre-
feasibility/scoping study or feasibility report is prepared to make an investment
decision. It includes mine planning, financial analysis including losses associated with
mine dilution and metallurgical processing.
(Cut-Off grade is the lowest grade required in order for a mineral or metal to be
economically mined (or processed). Material found to be above this grade is
considered to be ore, while material below this grade is considered to be waste. If
the concentration of ore is higher than the cut-off grade, then
mining can commence and be profitable.)
 Mineral Reserve/Ore Reserve
• Mineral Reserves are sub-divided in order of increasing confidence into
Probable Mineral Reserves and Proven Mineral Reserves. A Probable Mineral
Reserve has a lower level of confidence than a Proven Mineral Reserve.
• A Mineral Reserve is the economically mineable part of a Measured or
Indicated Mineral Resource demonstrated by at least a Preliminary
Feasibility Study. This Study must include adequate information on mining,
processing, metallurgical, economic and other relevant factors that
demonstrate, at the time of reporting, that economic extraction can be
justified. A Mineral Reserve includes diluting materials and allowances for
losses that may occur when the material is mined.
• Mineral Reserves are sub-divided in order of increasing confidence into
Probable Mineral Reserves and Proven Mineral Reserves. A Probable Mineral
Reserve has a lower level of confidence than a Proven Mineral Reserve.
 Mineral Reserve/Ore Reserve
The mineral reserve or precisely ore reserve is that well defined part of the
deposit at specific cutoff after completion of detailed exploration. The reserve
is estimated with a high level of confidence based on detail and reliable
information. The sample locations are spaced closely enough to confirm
geological and/or grade continuity. This reserve must be techno-economically
viable. The geological characteristics must be so well established to support
production planning. The deposit can be mined and marketed at a profit. The
metallurgical tests show optimum recovery. A pre-feasibility/scoping study or
feasibility report is prepared to make an investment decision. It includes mine
planning, financial analysis including losses associated with mine dilution and
metallurgical processing.
(Cut-Off grade is the lowest grade required in order for a mineral or metal to
be economically mined (or processed). Material found to be above
this grade is considered to be ore, while material below this grade is
considered to be waste.)
Probable Mineral Reserve
• The economically mineable part of an Indicated and, in some circumstances, a Measured
Mineral Resource demonstrated by at least a Preliminary Feasibility Study.
• The confidence in the Modifying Factors (mining, processing, metallurgical, economic, and
other relevant factors) applying to a Probable Ore Reserve is lower than that applying to a
proven mineral reserve/ Proved Ore Reserve; but is of sufficient quality to serve as the basis
for a decision on the development of the deposit.
• Proven Mineral Reserve/ Proved Ore Reserve
• The economically mineable part of a Measured Mineral Resource demonstrated by at least
a Preliminary Feasibility Study. This Study must include adequate information on mining,
processing, metallurgical, economic, and other relevant factors that demonstrate, at the
time of reporting, that economic extraction is justified.
• It represents the highest confidence category of reserve estimate and implies a high degree of
confidence in geological and grade continuity, and the consideration of the Modifying Factors.
• The term should be restricted to that part of the deposit where production planning
is taking place and for which any variation in the estimate would not significantly
affect potential economic viability.
Relationship between Mineral Resources and Ore Reserves
• The Code provides for a direct two-way relationship between Indicated Mineral Resources
and Probable Ore Reserves and between Measured Mineral Resources and Proved Ore
Reserves. In other words, the level of geological confidence for Probable Ore Reserves is
similar to that required for the determination of Indicated Mineral Resources, and the
level of geological confidence for Proved Ore Reserves is similar to that required for the
determination of Measured Mineral Resources.
• The Code also provides for a two-way relationship between Measured Mineral Resources
and Probable Ore Reserves. A Probable Ore Reserve derived from a Measured Mineral
Resource may be converted to a Proved Ore Reserve if the uncertainties in the Modifying
Factors are removed.
• Under no circumstances can an Indicated Mineral Resource be converted directly to a
Proved Ore Reserve (Figure).
• Application of the category of Proved Ore Reserve implies the highest degree of
geological, technical and economic confidence in the estimate at the level of production
increments used to support mine planning and production scheduling, with consequent
expectations in the minds of the readers of the report. These expectations should be
considered when categorising a Mineral Resource as Measured.
 TECHNICAL STUDIES
Preliminary Feasibility Study (Pre-Feasibility Study)
• A comprehensive study of the viability of a mineral project that has advanced to a
stage where the mining method has been established (underground or open pit) and
an effective method of mineral processing has been determined, and includes a
financial analysis based on reasonable assumptions of technical, engineering, legal,
operating, economic, social, and environmental factors and the evaluation of other
relevant factors which are sufficient for a Qualified Person to determine if all or part
of the Mineral Resource may be classified as a Mineral Reserve.
• A Pre-Feasibility Study is at a lower confidence level than a Feasibility Study.
• The Pre-Feasibility Study will identify the preferred mining, processing, and
infrastructure requirements and capacities, but will not yet have finalised these
matters. Detailed assessments of environmental and socio-economic impacts and
requirements will also be well advanced. The Pre-Feasibility Study will highlight areas
that require further refinement within the final study stage.
• In order to convert a mineral resource into a mineral reserve, a preliminary
feasibility study (Pre-Feasibility Study) has to be completed.
 Feasibility Study
• A Feasibility Study is a comprehensive technical and economic study of the selected
development option for a mineral project that includes appropriately detailed assessments
of realistically assumed mining, processing, metallurgical, economic, marketing, legal,
environmental, social and governmental considerations together with any other relevant
operational factors and detailed financial analysis, that are necessary to demonstrate at the
time of reporting that extraction is reasonably justified (economically mineable). The results
of the study may reasonably serve as the basis for a final decision by a proponent or
financial institution to proceed with, or finance, the development of the project.
• A Feasibility Study is of a higher level of confidence than a Pre-Feasibility Study and would
normally contain mining, infrastructure and process designs completed with sufficient rigour to
serve as the basis for an investment decision or to support project financing. Social,
environmental and governmental approvals, permits and agreements will be in place, or will
be approaching finalisation within the expected development timeframe. The Feasibility Study
will contain the application and description of all Modifying factors (mining, processing,
metallurgical, economic, marketing, legal, environmental, infrastructure, revenue, social
etc.) in a more detailed form than in the Pre-Feasibility Study, and may address
implementation issues such as detailed mining schedules, construction ramp up, and project
execution plans.
 Qualified Person/ Competent Person

• A “Qualified Person” means an individual who is an engineer or

geoscientist with at least five years of experience in mineral
exploration, mine development or operation or mineral project
assessment, or any combination of these; has experience relevant to
the subject matter of the mineral project and the technical report;
and is a member or licensee in good standing of a professional
association.
• Mineral Resource and Mineral Reserve estimates and resulting
Technical Reports must be prepared by or under the direction of, and
dated and signed by, a Qualified Person.
Resources of Coal
Coal resource and reserve classes based on the geological reliability (horizontal axis)
and economic viability (vertical axis) of resource estimates. This diagram, often
referred to as the McKelvey diagram after a former director of the USGS, represented
the state of the art for resource depiction at the time of its publication. SOURCE:
Wood et al. (1983).
Resources of Coal
Coal resource is a more general term that describes naturally occurring
deposits in such forms and amounts that economic extraction is
currently or potentially feasible (Wood et al., 1983). Coal reserve is a
more restrictive term describing the part of the coal resource that can
be mined economically, at the present time, given existing
environmental, legal, and technological constraints (Wood et al., 1983).
Coal reserve estimates are often considered the more important
parameter because they quantify the amount of recoverable coal.
However, coal resource estimates are also important because they are
the basis for reserve estimates, and in areas where the data required
for defining reserves are missing or inadequate, they provide an
indication of the amount of coal in the ground.
Resources of Coal
The current system was adopted in 1976 by the U.S. Geological Survey and the U.S.
Bureau of Mines (USDOI, 1976) and modified in USGS Circular 891 (Wood et al., 1983).
Circular 891 established a uniform foundation for coal resource and reserve
assessments by providing standard definitions, criteria, guidelines, and methods.
Circular 891 defined coal resource and reserve classes according to their degree of
geological reliability (horizontal axis) and economic feasibility (vertical axis), with
reliability categories based on the distance from data points e.g., a drill hole or
outcrop; (¼ mile for “measured,” ¾ mile for “indicated,” 3 miles for “inferred,” and >3
miles for “hypothetical” reserves). The speculative category applies where a geological
setting that is likely to contain coal has not yet been explored. As a result, a large
amount of coal in the “inferred” category is not in the Demonstrated Reserve Base
(DRB) and is not included in ERR calculations.
Demonstrated Reserve Base (DRB):
The DRB is a collective term for the sum of coal in both “measured” and “indicated” resource
categories.
The DRB represents that portion of the identified resources of coal from which reserves are
calculated.
Estimated Recoverable Reserves (ERR) is derived from the DRB by applying coal mine recovery
and accessibility factors to the DRB.
Resources of Coal
The 10 countries reporting the largest amount of proved recoverable
reserves in 2002. SOURCE: Data from WEC (2004).
Resources of Coal

The 10 countries that reported the largest quantity of proved

recoverable reserves have, in aggregate, 92 percent of the world’s
proved recoverable reserves. The top three countries—the United
States, the Russian Federation, and China—contain 57 percent of
proved recoverable reserves. China, which produced 40 percent more
coal in 2002 than the United States, reported proved recoverable
reserves that were only 46 percent those of the United States.
Coal quality is an important parameter that significantly affects the cost
of coal mining, beneficiation, transportation, utilization, and waste
disposal, as well as the coal’s sale value. Coal quality also has substantial
impacts on the environment and human health.
JORC Tables
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