The JORC Code and Guidelines

The JORC Code

The Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore
Reserves (JORC Code, 2004 edition) was
incorporated in the Listing Rules of the Australian
Stock Exchange AS!" and #ew $ealand Stock
Exchange #$!" on %rida&, '( )ece*+er ,--.,
replacing the '/// edition0 Co*pliance is
*andator& on all co*panies listed +& the AS!
and #$!0
The 1ORC Code provides *ini*u* standards for
pu+lic reporting to ensure that investors and their
advisers have all the infor*ation the& would
reasona+l& re2uire for for*ing a relia+le opinion
on the results and esti*ates +eing reported0
The JORC Code Explained
What is new in the JORC Code?
This presentation was prepared in February, 2006, and
first presented at the Perth Stock Exchange as part of an
education program run by the S! for its staff and
executi"es of companies #isted on the Exchange$ %t
focuses on the differences between the &''' (ode and
the 200) (ode, and a company*s ob#igations in reporting
its +eser"es, +esources and exp#oration resu#ts to the
pub#ic$ To down#oad a Powerpoint copy of the
presentation, which gi"es an o"er"iew of the ob,ecti"es
of the (ode and its de"e#opment and imp#ementation
o"er the years$
2004 JORC Code Whats It Mean
to You?
-n the &.th /anuary, the (hairman of /-+(, Peter
Stoker, ga"e a presentation to a ,oint %0 and us%11
meeting in Perth entit#ed 2200) /-+( (ode 3 4hat*s it
mean to you56
4e ha"e recei"ed independent feedback stating that this
was a "ery informati"e presentation with a se## out
audience$ %t is anticipated that Peter wi## gi"e a further
presentation mid /une to coincide with the /-+(
meeting in Perth$ To down#oad a Powerpoint copy of the
presentation, which gi"es an o"er"iew on the differences
between the &''' (ode and the 200) (ode,
%nternationa# 7e"e#opments and +eporting practices,
Changes incorporated in the 2004
JORC Code
paper summarising the principa# changes incorporated
in the re"ised 200) "ersion of the /-+( (ode and the
reasoning behind them, has been prepared by the
former Secretary 8(urrent (hairman9 of /-+(, Peter
Stoker, and is a"ai#ab#e at the #ink be#ow$
The two most significant changes in the (ode are:
the re;uirement for a (ompetent Person to be
responsib#e for the documentation re#ating to the
reporting of Exp#oration +esu#ts, and
the extension of the appro"ed professiona# bodies
to which a (ompetent Person may be#ong, to
inc#ude *+ecognised "erseas Professiona#
-rganisations*$
Secretariat:
Post: JORC, PO Box 660, CARLTON SOUTH, Victoria, 3053,
Australia
Phone: +6 3 !66" 366
Fax: +6 3 !66" 366"
Email: secretary@jorcor!
JORC " #ts $istory% its Sponsors
and current committee
&'C(GRO)*+ TO JORC
#$ Australia i$ t%& lat& !60s t%&r& 'as co$si(&ra)l& co$c&r$ a)out
u$acc&*ta)l& r&*orti$+ *ractic&s associat&( 'it% t%& so,call&(
Pos&i(o$ $ic-&l )oo. a$( )ust i$ /&st&r$ Australia0 R&s*o$(i$+ to
t%& r&sulti$+ c%all&$+& a$( o**ortu$it1 to s&l2,r&+ulat&, t%&
Australia$ 3i$i$+ #$(ustr1 Cou$cil, $o' t%& 3i$&rals Cou$cil o2
Australia 43CA5, &sta)lis%&( a co..itt&& to &xa.i$& t%& issu&0 #t
'as *ro.*tl1 6oi$&( )1 T%& Australasia$ #$stitut& o2 3i$i$+ a$(
3&tallur+1 4 T%& Aus#335, r&sulti$+ i$ t%& 2or.atio$ o2 t%&
Australasia$ Joi$t Or& R&s&r7&s Co..itt&& 4JORC50 T%& Australia$
#$stitut& o2 8&osci&$tists 4A#85 )&ca.& JORC9s t%ir( *ar&$t )o(1 i$
!!"0 Ot%&r or+a$isatio$s r&*r&s&$t&( o$ JORC ar& t%& Australia$
Stoc- :xc%a$+& 4AS;5 a$( t%& S&curiti&s #$stitut& o2 Australia
4S#A50 JORC 'as &sta)lis%&( as a *&r.a$&$t co..itt&&, a$( %as
)&&$ i$ co$ti$uous &xist&$c& si$c& !<0
B&t'&&$ !<" a$( !=!, a $u.)&r o2 r&*orts '&r& issu&( )1 JORC
'%ic% .a(& r&co..&$(atio$s o$ *u)lic r&*orti$+ a$( Or& R&s&r7&
classi2icatio$ a$( '%ic% +ra(uall1 (&7&lo*&( t%& *ri$ci*l&s $o'
i$cor*orat&( i$ t%& JORC Co(&0 T%& r&co..&$(atio$s %a( t%&
status o2 +ui(&li$&s o$l1, )ut '&r& o7&r ti.& +ra(uall1 a(o*t&( )1
.ost Australasia$ .i$i$+ a$( &x*loratio$ co.*a$i&s0 T%& cor&
co$c&*t o$ '%ic% t%& Co(& is )uilt, t%& Co.*&t&$t P&rso$, 'as
i$tro(uc&( i$ JORC9s 2irst *u)licatio$ i$ !<"0
#$ >&)ruar1 !=!, JORC r&l&as&( t%& 2irst 7&rsio$ o2 t%& JORC
Co(&0 A*art 2ro. u*(ati$+ a$( i.*ro7i$+ o$ *r&7ious (ocu.&$ts
a$( 2or.all1 i$tro(uci$+ i$to Australasia t%& co$c&*t o2 3i$&ral
R&sourc&s as t%& *r&,cursor to Or& R&s&r7&s, t%& !=! *u)licatio$
(i22&r&( 2ro. t%os& *r&c&(i$+ i$ t'o critical 'a1s0 #t 'as
i..&(iat&l1 i$cor*orat&( i$to Australia$ Stoc- :xc%a$+& 4AS;5
listi$+ rul&s, t%&r&)1 )&co.i$+ )i$(i$+ o$ co.*a$i&s list&( o$ t%&
AS; a$( it 'as also i..&(iat&l1 a(o*t&( )1 T%& Aus#33 as a$
#$stitut& Co(&, a$( t%&r&2or& )&ca.& )i$(i$+ o$ .&.)&rs o2 T%&
Aus#330 T%rou+% t%&s& *roc&ss&s, it )&ca.& .a$(ator1 2or )ot%
i$(i7i(uals a$( co.*a$i&s to co$2or. 'it% t%& Co(& a$( t%is %as
)&&$ t%& (o.i$a$t 2actor u$(&r*i$$i$+ its succ&ss0 #t 'as a(o*t&(
as a$ A#8 Co(& i$ !!" a$(, i$ t%& sa.& 1&ar, 'as i$cor*orat&(
i$to N&' ?&ala$( Stoc- :xc%a$+& 4N?;5 listi$+ rul&s0
8ui(&li$&s to t%& JORC Co(& '&r& *u)lis%&( i$ !!0 a$( t%&
co.)i$&( Co(& a$( 8ui(&li$&s '&r& r&7is&( i$ !!", !!3, !!6
a$( !!!, a$( a 2urt%&r r&7is&( 7&rsio$ 'as r&l&as&( o$ <
@&c&.)&r "00A0
T%& JORC Co(& is $o' '&ll acc&*t&( i$ Australasia, a$( i$ r&c&$t
1&ars it %as )&&$ us&( )ot% as a$ i$t&r$al r&*orti$+ sta$(ar( )1 a
$u.)&r o2 .a6or i$t&r$atio$al .i$i$+ co.*a$i&s, a$( as a
t&.*lat& 2or cou$tri&s i$ t%& *roc&ss o2 (&7&lo*i$+ or r&7isi$+ t%&ir
o'$ r&*orti$+ (ocu.&$ts, i$clu(i$+ t%& U$it&( Stat&s o2 A.&rica,
Ca$a(a, Sout% A2rica, a$( t%& U$it&( Bi$+(o.C:uro*&, C%il& a$(
P&ru0
T%& *ur*os& o2 t%& JORC Co(& is to *ro7i(& a .i$i.u. sta$(ar(
2or r&*orti$+ o2 &x*loratio$ r&sults, 3i$&ral R&sourc&s a$( Or&
R&s&r7&s i$ Australasia, a$( to &$sur& t%at *u)lic r&*orts o$ t%&s&
.att&rs co$tai$ all t%& i$2or.atio$ '%ic% i$7&stors a$( t%&ir
a(7is&rs 'oul( r&aso$a)l1 r&Duir& 2or t%& *ur*os& o2 .a-i$+ a
)ala$c&( 6u(+&.&$t r&+ar(i$+ t%& r&sults a$( &sti.at&s )&i$+
r&*ort&(0 #t ac%i&7&s t%is )1 E,
F &sta)lis%i$+ a$( *r&scri)i$+ t%& .i$i.u. sta$(ar(s 2or *u)lic
r&*orti$+ o2 :x*loratio$ R&sults, 3i$&ral R&sourc&s a$( Or&
R&s&r7&s i$ AustralasiaG
F s&tti$+ out a s1st&. 2or t%& classi2icatio$ o2 to$$a+& 4or 7olu.&5
a$( +ra(& 4or Dualit15 &sti.at&s as &it%&r 3i$&ral R&sourc&s or Or&
R&s&r7&s a$( 2or t%& su)(i7isio$ o2 &ac% i$to cat&+ori&s '%ic%
r&2l&ct (i22&r&$t l&7&ls o2 c&rtai$t1 or co$2i(&$c&G
F s*&ci21i$+ t%& Duali2icatio$s a$( &x*&ri&$c& r&Duir&( 2or a
Co.*&t&$t P&rso$G
F s&tti$+ out t%& r&s*o$si)iliti&s o2 t%& Co.*&t&$t P&rso$ a$(
co.*a$i&s9 Boar(s o2 @ir&ctors 'it% r&+ar( to r&*orti$+ o2
:x*loratio$ R&sults, 3i$&ral R&sourc&s a$( Or& R&s&r7&s, a$(
F *ro7i(i$+ a su..ar1 list 4Ta)l& , Ass&ss.&$t Crit&ria5 o2 t%&
.ai$ crit&ria '%ic% Co.*&t&$t P&rso$4s5 a$( ot%&rs s%oul(
co$si(&r i$ t%& cours& o2 *r&*ari$+ r&*orts o$ :x*loratio$ R&sults,
3i$&ral R&sourc&s a$( Or& R&s&r7&s0
T%& JORC Co(& (o&s $ot r&+ulat& t%& *roc&(ur&s us&( )1
Co.*&t&$t P&rso$s to &sti.at& a$( classi21 3i$&ral R&sourc&s a$(
Or& R&s&r7&s, $or (o&s it r&+ulat& co.*a$i&s9 i$t&r$al classi2icatio$
a$(Cor r&*orti$+ s1st&.s0
T%& *ri$ci*l&s o2 t%& JORC Co(& ar& su..aris&( i$ Claus& A o2 t%&
!!! Co(& as Tra$s*ar&$c1, 3at&rialit1 a$( Co.*&t&$c&0
Tra$s*ar&$c1 r&Duir&s t%at a *u)lic r&*ort co$tai$s su22ici&$t
i$2or.atio$, t%& *r&s&$tatio$ o2 '%ic% is cl&ar a$( u$a.)i+uous, so
t%at a r&a(&r is a)l& to u$(&rsta$( t%& r&*ort a$( is $ot .isl&(0
3at&rialit1 r&Duir&s t%at a *u)lic r&*ort co$tai$s all t%& r&l&7a$t
i$2or.atio$ '%ic% a r&a(&r coul( r&aso$a)l1 )& &x*&ct&( to $&&( i$
or(&r to .a-& a )ala$c&( 6u(+&.&$t a)out t%& .att&rs )&i$+
r&*ort&(0 Co.*&t&$c& r&Duir&s t%at t%& *u)lic r&*ort is )as&( o$
'or- '%ic% is t%& r&s*o$si)ilit1 o2 a suita)l1 Duali2i&( a$(
&x*&ri&$c&( *&rso$ '%o is su)6&ct to a$ &$2orc&a)l& *ro2&ssio$al
co(& o2 &t%ics, t%at is, t%at *u)lic r&*orts ar& )as&( o$ 'or-
u$(&rta-&$ or su*&r7is&( )1 a Co.*&t&$t P&rso$0
R&aso$s 2or t%& succ&ss o2 t%& JORC Co(& i$ Australasia i$clu(& E,
F t%& r&+ulator1 )ac-i$+G
F t%& i$t&$tio$al a7oi(a$c& o2 o7&rl1 *r&scri*ti7& (&2i$itio$s a$(
o*&ratio$al r&Duir&.&$tsG
F i$(ustr19s a)ilit1 a$( 'illi$+$&ss to (isci*li$& Co.*&t&$t P&rso$sG
F t%& ori+i$s o2 t%& Co(&G
F t%& $atur& a$( co.*ositio$ o2 t%& Joi$t Or& R&s&r7&s co..itt&&,
a$(
F JORC9s co..it.&$t to co..u$icatio$ a$( to o$,+oi$+ r&7isio$ o2
t%& Co(&0
JORC Committee " ,--.
/E/&ER Representin!
3ar- A(a.s
Deputy Chairman, JORC
T%& Australasia$ #$st0 o2 3i$i$+
H 3&tallur+1
Ro)&rt B&%&ts 3i$&rals Cou$cil o2 Australia
Alic& Clar-
Second Deputy Chairman,
JORC
T%& Australasia$ #$st0 o2 3i$i$+
H 3&tallur+1
Jo%$ @o' T%& Australasia$ #$st0 o2 3i$i$+
H 3&tallur+1
8&rr1 >a%&1 Australia$ #$stitut& o2
8&osci&$tists 4A#85
P&t&r >orr&stal 3i$&rals Cou$cil o2 Australia
3ax >o'l&s T%& Australia$ Stoc- :xc%a$+&
#a$ 8o((ar( 4co,o*t&(5 T%& Australasia$ #$st0 o2 3i$i$+
H 3&tallur+1
Ti. 8ol(s.it% 4co,o*t&(5
Accounting Professions Liaison
T%& Australasia$ #$st0 o2 3i$i$+
H 3&tallur+1
St&7& Hu$t Australia$ #$stitut& o2
8&osci&$tists 4A#85
@o$ Lar-i$
Ex-officio - CEO, The AusIMM
T%& Australasia$ #$st0 o2 3i$i$+
H 3&tallur+1
C%ris Ro)&rts Australia$ #$stitut& o2
8&osci&$tists 4A#85
@a7i( R1$$& 3i$&rals Cou$cil o2 Australia
43CA5
Bill S%a' 4co,o*t&(5
South American Liaison
Australia$ #$stitut& o2
8&osci&$tists 4A#85
/arr&$ Stau(& S&curiti&s #$stitut& o2 Australia
P&t&r Sto-&r
Chairman, JORC
T%& Australasia$ #$st0 o2 3i$i$+
H 3&tallur+1
8a7i$ I&at&s 3i$&rals Cou$cil o2 Australia
Return to the main pa!e
Secretariat:
Post: JORC, PO Box 660, CARLTON SOUTH, Victoria, 3053, Australia
Phone: +6 3 !66" 366
Fax: +6 3 !66" 366"
Email: secretary@jorcor!
ustra!ian Coa! Reporting "uide!ines
"Australian Guidelines for Estimating and Reporting of
Inventory Coal, Coal Resources and Coal Reserves" (April, 2003)
have been prepared by the Coalfelds Geology Council of N! and the
"ueensland #ining Council, for use in con$unction %ith the &'(C Code
and is no% available on this site in the )echnical *ibrary+
Competent Persons
Internationa! Reciprocit# o$ Co%petent
&ersons
The ustra#ian Securities Exchange 8<S!<9 introduced in 200=, a
procedure for identifying <+ecognised -"erseas Professiona#
-rganisations< 8<+-P-<9 as accredited organisations to which
(ompetent Persons must be#ong for the purpose of preparing
reports on Exp#oration +esu#ts, 1inera# +esources and -re
+eser"es for submission to the S!, if they are not members of the
recognised ustra#ian professiona# bodies, us%11 or %0$ The
fo##owing are the o"erseas professiona# organisations that are now
recognised by the S! for this purpose:
%nstitute of 1ateria#s, 1inera#s and 1ining
0eo#ogica# Society of >ondon
%nstitute of 0eo#ogists of %re#and
European 0eo#ogist 8Eur0eo#9 members of the European
Federation of 0eo#ogists
&

1ining and 1eta##urgica# Society of merica
merican %nstitute of Professiona# 0eo#ogists
S1E +egistered 1ember of the Society of 1ining,
1eta##urgy and Exp#oration, %nc$
2

Engineering (ounci# of South frica
South frican (ounci# for ?atura# Scientific Professions
0eo#ogica# Society of South frica
South frican %nstitute of 1ining and 1eta##urgy
South frican (ounci# for Professiona# and Technica#
Sur"eyors
Professiona# Engineers -ntario
ssociation of Professiona# Engineers and 0eoscientists of
@ritish (o#umbia
ssociation of Professiona# Engineers and 0eoscientists of
1anitoba
ssociation of Professiona# 0eoscientists of -ntario
ssociation of Professiona# Engineers and 0eoscientists of
?ewfound#and
ssociation of Professiona# Engineers, 0eo#ogists and
0eophysicists of #berta
ssociation of Professiona# 0eoscientists of ?o"a Scotia
ssociation of Professiona# Engineers and 0eoscientists of
?ew @runswick
ssociation of Professiona# Engineers, 0eo#ogists and
0eophysicists of the ?orthwest Territories
-rdre des 0eo#ogues du Auebec
-rdre des %ngBnieurs du Auebec
ssociation of Professiona# Engineers and 0eoscientists of
Saskatchewan
&
?ote that it is on#y members entit#ed to the professiona# tit#e
Eur0eo# be#onging to member associations of the EF0 that are
recognised as fu#fi##ing the re;uirements for recognition as members
of a +-P-, not members of the EF0 genera##y$
2
?ote that it is on#y the S1E +egistered 1ember c#ass of members
that are recognised as fu#fi##ing the re;uirements for recognition as a
+-P-, not members of the S1E genera##y$
*on"Compliance
The Ro!e o$ the JORC co%%ittee
/-+( is not a po#icing body and cannot dea# with
comp#aints of a##eged non3comp#iance$ Such comp#aints
shou#d be raised with the appropriate regu#atory body$
7etai#s of how to raise a comp#aint are gi"en be#ow at
the end of this section$
4hi#st its responsibi#ities inc#ude the pro"ision of genera#
ad"ice to interested parties on app#ication and
interpretation of the /-+( (ode, it cannot pro"ide, and
has not pro"ided, specific ad"ice to companies on their
proposed pub#ic reports$
The fo##owing rather #ight hearted #etter in response to an
artic#e in the %nternet magaCine <1iningnews$net<,
i##ustrates we## the ro#e of the (ommittee of /-+(, in
respect to po#icing comp#iance$
"JORC IS NOT A POLICEMAN"
)ear )r&+lower,
As Chair*an of 1ORC, 3 would like to thank &ou for
again +ringing the 1ORC Code to the attention of
the *ining pu+lic0 3t is i*portant that all who
prepare and *ake use of Mineral Resource and
Ore Reserve reports in Australia are aware of the
1ORC Code and relevant stock exchange listing
rules, and &our articles often reach an audience
that 1ORC, in its educational role, is less a+le to
contact0
4ith respect, however, 3 *ust correct &our
state*ents to the e5ect that 1ORC has 2ueried
Terra 6old Mining regarding so*e of its pu+lic
state*ents0 3 can assure &ou and &our readers
that 1ORC has not 2ueried Terra 6old Mining or
an& other co*pan&, for that *atter"0
To clarif& our role, 1ORC a volunteer co**ittee of
The Australasian 3nstitute of Mining and
Metallurg&, the Minerals Council of Australia and
the Australian 3nstitute of 6eoscientists" prepares
and *aintains the 1ORC Code, and works with
professional, industr& and regulator& +odies to
provide educational services with respect to the
Code0 1ORC is not a policing +od& and does not
2uer& co*panies regarding their pu+lic reports0
3n the case of Terra 6old Mining, 3 understand that
it was the AS! that 2ueried the co*pan&0
Thank &ou again for &our ver& interesting articles0
One of &our previous pieces on the 1ORC Code
ended with7 8The code, and these are the 9nal
words fro* )r&+lower, is there for a purpose0 3t
creates a level pla&ing 9eld0 :eople who ignore it
are not pla&ing +& the rules 00000080 4e couldn;t
have said it +etter0
Regards
:at Stephenson
Chair*an < 1ORC
Co%p!iance Issue
Reporting 'non(JORC co%p!iant'
Resources and Reser)es
The ustra#ian Securities Exchange >td 8S!9 has
expressed concern at recent instances of apparent non3
comp#iance with the /-+( code$ The description of a
resource or reser"e estimate as a <non3/-+( comp#iant<
resource or reser"e estimate is not acceptab#e to S!$
4hi#st it acknow#edges that there may be occasions
when a company be#ie"es it needs to pro"ide a <non3
/-+( comp#iant< estimate under the (orporations ct
andDor (ontinuous 7isc#osure re;uirements of the S!
>isting ru#es, this is on#y acceptab#e with the prior
appro"a# of the S!$
"uidance $or those wishing to
report an a!!eged instance o$
non(co%p!iance with the JORC
Code*
/-+( is not a po#icing body and has no authority to
monitor comp#iance with the /-+( (ode$ +esponsibi#ity
for monitoring comp#iance and for taking action, if
re;uired, rests with the ustra#ian Securities Exchange
8<S!<9, which has incorporated the /-+( (ode into its
#isting ru#es, and with The ustra#asian %nstitute of 1ining
and 1eta##urgy 8<The us%11<9 and ustra#ian %nstitute
of 0eoscientists 8<%0<9, which both re;uire comp#iance
with the /-+( (ode by their members$ The procedure
to be fo##owed when reporting an a##eged instance of
non3comp#iance with the (ode is summarised as fo##ows:
1. If the alleged non-compliance involves an incorrect
claim of membership of The AusIMM or AIG by a
Competent erson! or reporting company" the
AusIMM or AIG should be notified together #ith the
A$%.
&. If the alleged non-compliance involves a claim of
inappropriate professional or ethical conduct by the
Competent erson" The AusIMM or AIG should be
notified.
'. If the alleged non-compliance involves the reporting
company and does not involve a Competent erson"
the A$% should be notified.
In the case of companies listed on the Australian e(changes"
the matter may be brought to the attention of the A$%" by
logging on to
www.asx.com.au/supervision/compain!s/compan".#!m.
The A$% complaint form may be do#nloaded from
www.asx.com.au/inves!or/p$%/AS&'Compain!'(orm.r!%