1. Mining explorers reporting visual estimates of...

1. Mining explorers reporting visual estimates of mineralisation
ASX does not encourage the reporting of estimates of mineralisation based only on visual observations. ASX’s existing
guidance states that it would generally be inappropriate for an entity to comment about the grade or quality of
mineralisation in the absence of an assay. In many cases, information derived solely from a visual inspection of a core
sample before it has been assayed and analysed could give a misleading impression of the extent of mineralisation.
ASX Guidance Note 8- Example D provides further context for entities to review in determining whether disclosure is
required at the visual estimate stage.
If an entity forms the view that it must disclose an estimate of mineralisation based on visual observations only, the
announcement must meet all Listing Rule and JORC code requirements.
An announcement under Listing Rule 3.1 must be accurate, complete and not misleading. ASX expects an
announcement of visual mineralisation to contain the following information (which is consistent with the Best Practice
note published by the Australian Institute of Geoscientists (AIG) and ASX Guidance Note 8- Example D):
1. describe the nature of mineral occurrence (e.g. massive, disseminated, in veins, forming veins or bands
concordant or discordant with bedding or a penetrative foliation observable in the host rock);
2. identify the minerals observed;
3. estimate the abundances of any minerals observed (in the form of a table with an estimate of the abundances
at each interval of the applicable hole or sample); and
4. state the anticipated timing for the release of assay results in respect of the visual estimates.
This is applicable to any visual estimate of mineralisation, including any photographs alluding to mineralisation which
are contained in an announcement. ASX also expects the announcement to contain a proximate cautionary statement
to any reported visual estimates:
‘Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where
concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no
information regarding impurities or deleterious physical properties relevant to valuations.’
ASX will not hesitate to take action if it considers that an announcement does not comply with the Listing Rules. The
action that ASX may take includes rejecting the announcement or requiring a retraction or correction. ASX may suspend
trading in the entity’s securities until appropriate corrective action is taken by the entity.