 RECOMMENDATIONS CONCERNING ESTIMATION AND REPORTING OF MINERAL RESOURCES AND MINERAL RESERVES
FORWORD
This document summarizes recommendations made by the "SEC Reserves Working Group / Resources and Reserves Committee" (the Working Group) of the Society for Mining, Metallurgy, and Exploration, Inc. (SME) concerning specific issues related to the public reporting of mineral resources and mineral reserves.
These recommendations, including the proposed 2005 SME Guide, were submitted to the Staff of the U.S. Securities and Exchange Commission (the SEC) on April 30, 2005 for its consideration. It is the Working Group's opinion that accepting these recommendations would result in significantly improved public reporting. However it is important to keep in mind that these are only recommendations. The SEC rules and regulations and related interpretations for mining companies engaged or to be engaged in mining operations currently differ from the recommendations made by the Working Group in its submission to the SEC.
Questions or comments concerning the Working Group and its recommendations can be addressed by mail or electronically to:
Electronically:
J.M. Rendu, Chairman, Resources and Reserves Committee
JMRendu@aol.com
Dick Graff, CPA, Co-chairman, Resources and Reserves Committee
Rgraff303@aol.com
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By mail:
Jean-Michel (J.M.) Rendu
Chairman, Resources and Reserves Committee
Society for Mining, Metallurgy, and Exploration, Inc.
8307 Shaffer Parkway
Littleton, Colorado 80127
U.S.A. |
INDEX
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1. Introduction and Executive Summary
1.1. Introduction
1.2. Executive Summary
2. Background
Background
3. Formation of the "SEC Reserves Working Group"
Table 1: Composition of SEC Reserves Working Group
4. Review Process
Table 2: Composition of Coal Review Group
5. Relationship between Reserve Reporting and Financial Reporting
Relationship between Reserve Reporting and Financial Reporting
6. Objectives and Governing Principles
6.1. Objectives
6.2. Governing Principles
6.3. Document Outline
7. Issue A: Commodity Pricing Guidelines
7.1. Issue
7.2. Current Requirements and Practices
7.3. Discussion
7.4. Working Group Recommendations
7.5. Additional Remarks Concerning Use of Standardized Prices
7.6. Text to be Included in the 2005 SME Guide
7.7. Supplemental Information: Price Cycles
8. Issue B: Publication of Mineral Resources
8.1. Issue
8.2. Current Requirements and Practices
8.3. Discussion
8.4. Working Group Recommendations
8.5. Justification of Recommendations
8.6. Text to be Included in the 2005 SME Guide
9. Issue C: Technical and Economic Study Requirements
9.1. Issue
9.2. Current Requirements and Practices
9.3. Discussion
9.4. Working Group Recommendations
9.5. Justification of Recommendations
9.6. Text to be Included in the 2005 SME Guide
10. Issue D: Permitting and Legal Requirements
10.1. Issue
10.2. Current Requirements and Practices
10.3. Discussion
10.4. Working Group Recommendations
10.5. Justification of Recommendations
10.6. Text to be Included in the 2005 SME Guide
11.1 Issue E: Competent Person
11.1. Issue
11.2. Current Requirements and Practices
11.3. Discussion
11.4. Working Group Recommendations
11.5. Text to be Included in the 2005 SME Guide
12. Coal, Industrial Minerals, Diamonds and Other Gemstones
12.1. Introductory Remarks
12.2. Reporting of Coal Resources and Coal Reserves
12.3. Reporting of Mineral Resources and Mineral Reserves for Industrial Minerals
12.4. Reporting of Mineral Resources and Mineral Reserves for Diamonds and Other Gemstones
APPENDIX 1: U.S. Securities and Exchange Commission, Division of Corporation Finance, Industry Guide 7
APPENDIX 2: The 1999 SME Guide: A Guide for Reporting Exploration Information, Mineral Resources, and Mineral Reserves
APPENDIX 3: The 2005 SME Guide for Reporting Exploration Results, Mineral Resources, and Mineral Reserves
Information contained in this work has been obtained by SME from sources believed to be reliable. However, neither SME nor its authors guarantee the accuracy or completeness of any information published here, and neither SME nor its authors shall be responsible for any errors, omissions, or damages arising out of the use of this information. This work is published with the understanding that SME and its authors are supplying information but are not attempting to render engineering or other professional services. If such services are requested, the assistance of an appropriate professional should be sought.
Any statements or views presented here are those of the authors and are not necessarily those of SME. The mention of trade names for commercial products does not imply the approval or endorsement of SME.
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