Ann: Trading Halt, page-89

Hi Salpetite

In the Jorc code, 'mineability' can be loosely translated to 'modifying factors'. More on this below.

A resource is quite simply that - evidence that there is a potentially economic concentration of resource in the ground. A 'competent person' is qualified to declare this. There are three classifications of resource, and the only determining factor between them is geological confidence, which again, is pretty much determined by the competent person based on their recocognised experience/expertise (well... really the only qualification for a competent person is to have a minimum 5 years experience in a similar mineral system). However, the majority of the considerations for classification in most mineral systems is related to drill hole/sample spacing. At this stage, the competent person is relying heavily on their experience with similar deposits, using them as analogues.

A resource can be converted to a reserve by producing evidence of 'minability', aka, 'modifying factors'. This evidence is produced through various studies. These studies (eg feasibility studies) work out the modifying factors relevant to mineability - mine plan, economics, environmental considerations, heritage considerations, ect. It is through these studies the company can demonstrate if the resource is able to be extracted and delivered to the market legally and ata profit. If they can demonstrate this, it then can be reported as a reserve in JORC standards. Notably, only indicated and measured resources qualify to be converted to reserves.





https://www.jorc.org/docs/JORC_code_2012.pdf