Mineral resource + engineering, economic and legal feasibility = ore reserve

Several reviews of mineral project performance in the past 35 years indicate a pattern of occasional, but recurrent, mining project failures due to shortcomings in geological information and estimation, mineral processing and metallurgical testing, feasibility study objectives and requirements, and project start-up methods. A commitment to quality assurance and continuous improvement methods and to obtaining “ENOUGH DATA, OF APPROPRIATE QUALITY” is essential. Recent international and Canadian proposals for mineral resource and ore reserve definitions have taken a nonprescriptive stance that will undermine the formulation of requirements, guidelines and industry standards for efficient deposit delineation and estimation, and for the determination of project feasibility. To help reduce problems, every feasibility study supporting a mine development and production decision should be based on objectives and methods adequate to reach completion targets similar to the bankers’, as a good business target for a profitable project. In a resource/reserve system, the use of reserve should be restricted to a project that meets required technical, economic and legal feasibility requirements for successful project implementation, and the definitions of these categories should provide explicit limits. Current shortcomings will limit the ability of the Qualified Person to provide “adequate professional practice,” fulfill his/her professional responsibilities to his employer or client and provide adequate information to the investing public. We must take advantage of present opportunities for Setting New Standards for the new Millennium.