G'day 9 Q's -For clarification -See below ASX mining reporting -Transition
to new "disclosure rules"- Regulations.
G'day -holders-plenty more to read in ASX regulations regarding
responsibilities associated with ASX reporting forecasted -PRODUCTION TARGETS & associated disclosure rules .
Hence "it seems obvious OGX had no choice but to remove any
reference to Production targets" in relevant amended recent ASX release.
This is in accordance with ASX listing & disclosure rules & regulations ,
some highlighted & relevant aspects I have highlighted below .
NOTE -I have not included all that is pertaining & relevant but enough to
clarify that OGX had no choice but to amend there statement & delete any
reference to Production forecasts.
This is completely different to OGX not thinking they will not reach
intended production targets-below is self explanatory & imo is better
that it was a regulatory issue & not in any way associated with OGX
watering down there own expectations .
This is expected as mineralisation is narrow veined high grade coarse gold that is
virtually impossible to effectively dill out in accordance with JORC 2012 regulations
that would give good representation & reassurance of the in ground Gold abundance
as it not only would be extremely expensive -the nature of the mineralisation dictates
that the narrow veins can be easily be missed-hence OGX has adopted a different
strategy that is more economic but less absolute thus the comment made.
The more we Mine the more we find- back to basics plant & references to similar
situations like Norseman have been quoted by OGX- Geos as being possible outcomes because of similarities -still to early to confirm but looking good thus far.
Nothing New to be concerned about -the company has been upfront with the nature of mineralisation & I recommend any recent holders that are unaware or have become somewhat alarmed to go back & read ASX releases there are many references regarding the nature of mineralisation as its clear there is nothing new over & above that which we already new.
gltah-imo
salt
See Below why production Targets were removed-vetted fro ASX-Release.
ASX mining reporting -Transition to new "disclosure rules"
Regulations.
Production Targets
Note: While ASX Listing Rule Chapter 5 and the JORC Code 2012 did not come
into operation until 1 December 2013, the requirement in the Corporations Act and the Australian Securities and Investments Commission Act that a Production Target or forecast financial information derived from a Production Target must be based on reasonable grounds has been in force for some time.
Some of the following answers to frequently asked questions may therefore be relevant to Production Targets and forecast financial information derived from Production Targets that pre-date the transition date for the new disclosure rules in ASX Listing Rule Chapter 5 and the JORC Code 2012.
22. What types of Production Targets and forecast financial information derived from a Production Target will be subject to the new reporting requirements in Chapter 5 that came into effect on 1 December 2013?
The term “Production Target” is defined in Listing Rule 19.12 to mean a projection or forecast of the amount of minerals to be extracted from a particular mining tenement or tenements for a period that extends past the current year and the forthcoming year.
24. What are reasonable grounds for a Production Target or forecast
financial information derived from a Production Target?
It is the responsibility of the entity publishing a Production Target or
forecast financial information derived from a Production Target to
ensure that it has reasonable grounds for it.
Listing Rules 5.15 to 5.19 address the circumstances and disclosure obligations
for reporting Production Targets and forecast financial information,
depending on whether they are based on Ore Reserves, Mineral Resources, Exploration Targets and Qualifying Foreign Estimates.
These Listing Rules:
require, among other things, the disclosure of all material assumptions on which the Production Target is based, and a statement that the estimated Ore Reserves and/or Mineral Resources underpinning the Production Target have been prepared by a Competent Person or Persons in accordance with the requirements the JORC Code 2012;
prohibit the disclosure of a Production Target that is based solely on an Exploration Target or solely or partly on Historical Estimates or Foreign Estimates (other than Qualifying Foreign Estimates) of mineralisation; and
if a proportion of a Production Target is based partly on an exploration target or solely on Inferred Mineral Resources, require that the entity include a statement of the factors that lead it to believe that it has a reasonable basis for reporting a Production Target in that context.
Even where disclosure of a Production Target or forecast financial information derived from a Production Target is made in accordance with these Listing Rules, for the reasons outlined in the answer to question 2 above, it must still be based on reasonable grounds existing as at the date of the disclosure or else it will be taken to be misleading under the Corporations Act.
Reasonable grounds extend not only to the mineralisation underpinning the Production Target or forecast financial information but also to any assumptions regarding the 'Modifying Factors' in Table 1 of the JORC Code.
What constitutes 'reasonable grounds' for a Production Target or forecast financial information derived from a Production Target must be judged according to the facts and circumstances of each case and the requirements of the
Corporations Act.
The following general observations may, however, be helpful:
Probable or Proved Ore Reserves (properly declared) will generally provide a reasonable basis for a Production Target or forecast financial information derived from a Production Target, given the level of geological knowledge and confidence and the consideration of the Modifying Factors they involve.
Indicated or Measured Mineral Resources (properly declared) may provide a reasonable basis for a Production Target or forecast financial information derived from a Production Target provided the entity has given sufficient consideration to the Modifying Factors in order to have reasonable grounds and it clearly outlines the material assumptions it has made in this regard.
Where an entity has Ore Reserves or Indicated or Measured Mineral Resources, it may have reasonable grounds for including some level of Inferred Mineral Resources or an Exploration Target in a Production Target or forecast financial information derived from a Production Target, subject to the following caveat in section 8.5 of ASX Guidance Note 31:
“Where a mining entity is reporting a production target that is based on a portion of inferred mineral resources and/or an exploration target in addition to ore reserves and/or measured and indicated mineral resources, the reporting entity must be satisfied that the respective proportions of inferred mineral resources and the exploration target are not the determining factors in project viability.
In addition, the inferred mineral resources and exploration target should not feature as a significant proportion early in the mine plan.”
The proportion of Inferred Mineral Resources and Exploration Targets that may be added to the end of a mine plan depends on the maturity of the project.
For example, a greater proportion may be justified for a producing mine with a history of converting Exploration Targets and Mineral Resources into Ore Reserves, than an exploration entity that has Indicated Mineral Resources as the highest confidence Mineral Resource.
A Production Target or forecast financial information derived from a Production Target may only be based on an Inferred Mineral Resource alone if the entity complies with Listing Rule 5.16.6 and section 8.7 of ASX Guidance Note 31.
The general observations above assume, of course, that the relevant Ore Reserve, Mineral Resource or Exploration Target is a genuine one that would withstand scrutiny by a Competent Person’s peers (see clause 11 of the JORC Code).
OGX Price at posting:
9.7¢ Sentiment: Buy Disclosure: Held
