What is JORC Code

1. JORC code definition

The JORC Code is a tool to help geologists to convey the risks faced in mining projects to financial decision makers who do not understand geology. If resource estimates are based on weak or insufficient data then the risk is high. Reliable and large data will result in small risks and accurate resource calculations.

The Joint Ore Reserves Committee Code (JORC Code) is the Australian Code for Reporting of Exploration Result, Mineral Resources and Reserves that has been adopted by The Australian Institute of Mining and Metallurgy (The AusIMM) and The Australian Institute of Geoscientists (AIG)

 

2. What does the JORC code do?

A. Set minimum standards for reporting exploration, resource and backup results to the public.

b. Provide a code (and instructions) classing the approximate tonase according to geological beliefs and technical/economic considerations.

c. Describe the qualifications and types of experience required to become a competent person.

d. Provides a summary list of key criteria considered when providing exploration, resource and backup results reports.

 

3. What does the JORC code do?

a. Set the stages used by competent people to estimate and classify resources and reserves (methodologies).

b. Set up the system and or types of internal reporting of the company

 

4. Basics of JORC report settings

a. Transparent

The report must be provided with sufficient information, presented clearly, blatantly and not misleadingly in order for its readers to understand.

b. Materiality

The report contains all relevant information that can make investors and their professional advisers believe that the mine is worth mining.

c. Competency

The report is based on appropriate and qualified work and supported by professional people who have experience in their field (can perform tasks according to the code of conduct).

 

5. Advantages of using JORC-based reporting

a. Provide international standards that have been recognized so that potential investors and financial institutions can and are ready to assess the price of a mining company as well as the condition of its resources and reserves.

b. Provide a clear understanding so that the company's management understands the level of CONFIDENCE of its estimated resources and internal reserves so that they can understand the level of FINANCIAL RISK faced in their projects.

 

6. JORC Classification

Figure 1. JORC Classification

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