Reporting Coal Exploration FriederichM

COAL EXPLORATION TECHNIQUES
COAL EXPLORATION TECHNIQUES

AND REPORTING
21st July 2009
July 2009 MGEI – IAGI SEMINAR, BANDUNG
MGEI IAGI SEMINAR BANDUNG
Mike Friederich
M. Aus. IMM
[email protected] 1
AGENDA
Introduction
Resource Reporting Codes – an Introduction
Exploration Stages
Exploration Stages
Exploration Reporting
p p g
Conclusion
Discussion
MGEI – IAGI SEMINAR, BANDUNG 2

EXPLORATION STAGES
INFERRED INDICATED MEASURED

JORC STAGE: EXPLORATION RESULTS
RESOURCE RESOURCE RESOURCE
INITIAL DRILL PRE-
STAGE RESEARCH RECONNAISSANCE FIELD MAPPING FEASIBILITY
DRILLING TESTING FEASIBILITY
Data collection; Reconnaissance Detailed Satellite Wide spaced Typically 2 to 4 Drilling typically Drilling typically
prepare GIS data mapping Imagery Interp drilling km spacing 1 km spacing 500m spacing
Quality, seam Estimate Initial
Study regional thickness, inferred geotechnical Geotechnical
TASKS
geological setting Outcrop Logging Field Mapping resource potential resources studies drilling
Reliable Bulk Sample;
p ; or
Preliminary Coal rank / quality topographic large diameter
depositional model assessment Scout Drilling maps core
Check Estimate Estimate
environmental Indicated Measured
issues / land status Resources Resources
I
Increasing
i confidence
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RESERVES Probable Proved

Three Principles of the Reporting Codes
The Codes like CRIRSCO and JORC for reporting coal
resources and q quality
y – and also for exploration
p p
planning.
g
These codes have 3 principles, which give investors more
certainty on the results:
•Transparency
- clear and unambiguous presentation of information.
• Materiality
M t i lit
- all the information reasonably required and expected
• Competence
p
- public reports based on work undertaken by Competent
Persons
4
Relationship – Exploration Results, Resources, Reserves

Coal Resources and Coal Reserves
A Coal Resource is that part of a deposit with reasonable prospects
for eventual economic extraction. The location, quantity, quality,
,q y, q y,
geological characteristics and continuity of a Coal Resource are
known, estimated or interpreted, from Points of Observation.
A Coal Reserve is the economically mineable part of a Measured or
Indicated Coal Resource.

Mineral Resource / Reserve Estimations & associated reports
Source Stephenson, 2005

Reports – Public or Internal?
PUBLIC REPORTS (for share market investors etc)
It is intended that the Public Reporting provides all the
information that investors and their professional advisors
would need, and reasonably expect to find, for the purpose of
making a reasoned and balanced judgement regarding the
E l
Exploration
ti Results,
R lt Mineral
Mi l Resources
R or Ore
O Reserves
R being
b i
reported. In some countries, Public Reports to the sharemarket
are regulated by a Reporting Code.
INTERNAL REPORTS
If the reporting is an internal report for Company management,
it has a similar purpose
purpose. Company management needs an
impartial review of the results; and what these results mean for
the resource potential. They also need to understand the work
program
p g and likelyy costs of future programs,
p g , and whether the
resource is likely to be economic.

AGENDA
Introduction
Exploration Stages
Exploration Stages
p p g
Conclusion
Discussion

Staged Coal Exploration
• Exploration proceeds in stages. There is a “decision point” between
each stage: results are evaluated and a decision made whether or
g
not to continue. For example early reconnaissance may show the
area is too folded, with very steep dips; or that the rank of the coal
is too low.
• The early stage is low cost, covering large areas
• If exploration results are good, the target area becomes more
focussed and more expensive exploration methods are used.
• Advanced coal exploration is costly, using drilling; but at this stage
the chances of success should be high, so risks are low.

RESEARCH STAGE

INITIAL DRILL PRE-
TASKS
p ; or
I
Increasing
i confidence
fid

Research – GIS Model
• Base map of digital regional geology (1:250,000)
• Petroleum exploration wells
• Location of coal outcrops
• Location of previous coal boreholes if any; with drilling results
• Topographic data; digital terrain model if available
p g p g
• Remote sensing imagery
• Regional geophysics
• Infrastructure (roads; ports)
Infrastructure (roads; ports)
• National parks or nature reserves;
• Coal Tenements (KP, Coal COW)
Coal Location Digital
Data Geology
GIS
GIS
Coal
tenements Regional
DATASET
and Structure
• Look for trends of coal quality or
thickness
• Look for errors in regional mapping
• Look for areas that are open (not
held by other companies) for the
held by other companies) for the
wrong reasons; eg because there
has been an error in the regional
mapping
mapping.
• There will then be a list of questions
to be solved by field work
GIS model of part of the Sydney Basin
Source: SRK website

• Look for trends of coal
quality or thickness
• g
Look for errors in regional
mapping
• Look for areas that are open
(not held by other
companies) for the wrong
companies) for the wrong
reasons; eg because there
has been an error in the
regional mapping.
• There will then be a list of
There will then be a list of
questions to be solved by
field work
From a company website

EXPLORATION STAGES

INITIAL DRILL PRE-
TASKS
p ; or
I
Increasing
i confidence
fid

Reconnaissance and Mapping Stages
Reconnaissance level work is done to
confirm the regional geology; to locate
and sample known coal outcrops to
determine the coal rank and some
aspects of the quality; in some cases
coal thickness may be assessed. The
dips can be measured, so for example if
the area is too strongly folded, that can
be determined immediately, y without
going into a more detailed program.

REMOTE SENSING before the mapping
Remote sensing interpretation
is done by specialised
consultants
Results are used to guide the

location and focus of field
mapping
The interpretation
p will usually
y
give more focussed detail in the
areas of interest, than the
regional geological maps.

Field Mapping
In Indonesia, with heavy rainfall and the typical coal measure
topography, reconnaissance & field mapping will provide a lot of
detail on the local geology
geology, and coal outcrops may be located &
sampled. In drier areas, outcrop may be limited to occasional road
cuttings. In these situations, regional oil & gas drilling, or
stratigraphic boreholes, may be initial regional sources of data
Indonesia Bowen Basin, Australia Magallanes Basin, Chile

Sampling
Systematic channel sampling is done
on good outcrops
The channel should be cut back into

fresh coal
“Ply by ply” sampling

Detailed Field Mapping
• Detailed mapping is done over the main target area; eg at 1:10,000
or 1:5000
• This mapping may use a remote sensing interpretation as a guide.
This mapping may use a remote sensing interpretation as a guide
• Locations determined using GPS.
• Coal outcrops should be recorded in detail. Attempts should be
made to follow coal along strike if possible to check continuity
made to follow coal along strike if possible to check continuity.
• Measure coal thickness; strike; dip; take samples
• Record coal lithotypes; partings;
• Mapping gives an initial estimate of seam thickness; seam
Mapping gives an initial estimate of seam thickness; seam
correlation; and a preliminary estimate of the coal quality. However
coking properties may be unreliable. Calorific value may be too low
and moisture too high. Vitrinite reflectance is reliable.
• There may be recognisable marker beds such as limestone; basalt;
or even the top of basement, that will be useful in assessing the
overall correlation.
• GEOLOGICAL REPORT with all results and maps.
GEOLOGICAL REPORT ith ll lt d

Test Pits

Rank Changes across a basin
Rank changes like this typically show us where
the centre of the basin was. The area in the
east was more deeply buried.
east was more deeply buried.
Data on rank changes can be acquired at an
early stage during exploration and can be an
indicator of where the best coal will be.
Outcrop samples can be acquired for vitrinite
reflectance testing, which will indicate the
approximate coal rank
Bowen Basin rank changes

Trenching
In some areas trenching may

be done, where the topography
and depth of weathering are
suitable.

End of the Mapping Phase – Scout Drilling
The mapping phase often ends with a scout
drilling program. The rig is typically light weight
gp g g yp y g g
and portable, as access is difficult at this stage,
and the drilling is typically shallow drilling near
outcrops.
Several widely spaced boreholes are drilled. They
will:
‐ Confirm the coal quality
‐ Confirm seam thickness and the dip
C fi thi k d th di
‐ Provide good information on drilling conditions
and costs, to help plan the next phase, drilling.

The Report
MAPS are prepared showing all the exploration results – outcrops, strikes, dips, coal
sample points; coal thickness; etc, and any revised interpretations on the regional
geology A database is needed in GIS format A logical scale should be used The map
geology. A database is needed, in GIS format. A logical scale should be used. The map
should include the KP boundaries.
A REPORT is prepared. A checklist should be used, to ensure all points are covered. A
suitable check list is provided later in this report It starts with previous work and
suitable check list is provided later in this report. It starts with previous work and
regional geology, and ends with the recommendations and work program for the next
phase.
Management needs to be aware of the most likely size and quality of the resource
Management needs to be aware of the most likely size and quality of the resource
target or the Base Case. However a potential range should also be provided – a Worst
Case and Best Case, for the potential tonnes of coal and for the coal quality. Things like
distance to a barge port are also important.
Exploration results including coal thickness, dips and quality, should be presented in
tables. All data and ranges should be provided – not just the good results, this will be a
biased report.
Management also needs to be aware of the likely Work Program and Budget for the
next phase, so that an informed “YES/NO” decision can be made at this point.
EXPLORATION STAGES

INITIAL DRILL PRE-
TASKS
p ; or
I
Increasing
i confidence
fid

Drilling Phase
• Plan the program. It should continue to be staged, with initial wide‐
spaced drilling; followed by a YES/NO decision point; Surveying and
t
topographic mapping; for large scale surface mining, reliable
hi i f l l f i i li bl
topographic maps are needed for estimates of overburden
volumes.
• Drilling, on a grid or traverse pattern.
• Good core recovery in coal is very important.
• Determine coal thickness and depth; core the coal seam, which will
Determine coal thickness and depth; core the coal seam which will
be sampled for analysis.
• Downhole geophysical logging of all boreholes
• Determine the location of the coal subcrop by oxidation line drilling
• GEOLOGICAL REPORT with all results and maps.

Core Recovery
• Good core recovery is essential for reliable quality data
• Use downhole geophysical logs to determine the
location & amount of core loss.
• The Australian Guidelines to the JORC Code advise
normally > 95% core recovery
• It starts with the selection of the drilling contractor; and
with the drilling contract itself.
• Consistent high core recovery can be difficult in higher
rank coals, which can be more friable.
• Consider moving to PQ core if recovery is poor with HQ
/ HMLC. This size may be needed anyway for the volume
and size needed for float / sink testing of higher ash
coals.
coa s
• Triple tube core barrel for better undisturbed core
MGEI – IAGI SEMINAR, BANDUNG
Core Logging
• Lithologies are logged; standardise between geologists;
• Logging is best done using a check list, and transferring results to a
spreadsheet for computer database storage.
• Record at least:
– Coal brightness;
– Any non‐coal
Any non coal partings within a coal seam; (colour; composition; hardness;)
partings within a coal seam; (colour; composition; hardness;)
– Lithologies of roof and floor; again with color, composition, dip, etc)
– Hardness and other geotechnical properties;
– Dip; appearance of dip plane discontinuities
– Presence and orientation of structures; cleat (in coal); joints;
Presence and orientation of structures; cleat (in coal); joints;
– Presence of later mineralisation eg pyrite; carbonates
• Results are typically shown graphically in a log, at 1:100 scale
(borehole) and 1:25 scale (coal seam).
• This log can be printed out directly from a number of computer
programs; it is also done directly in the field to help planning &
interpretation of the next boreholes, and to make instant
correlations of coal seams.

Core Drilling Large Diameter Core
• At the stage of Feasibility or Pre‐
feasibility, there is a need to take
y,
bulk samples for coke testing
(coking coal) or combustion
testing (thermal coal).
g( )
• In some situations these samples
are easiest taken by excavators.
However in other situations they
However in other situations, they
are best taken by drilling many
large diameter core samples.
• Special core barrels will be
l b l ll b
needed.

Core Photography
• Core should be photographed while in the core box or in split tubes
before sampling. This gives a permanent record of the appearance of
the coal and partings, and of fractures , cleats and dip planes, and will
be used by the Mining Engineer and geotechnical specialists during
the assessment of the resource.
Sampling ‐ Precautions
Coal should be sampled as soon as possible after logging the coal.
For low rank coals,

coals great care must be taken to avoid the coal drying at all
before it gets to the laboratory. The coal must be stored in double sealed
plastic as soon as possible, and kept out of direct sunlight. If the coal is
allowed to dry, the as-received
as received moisture will be too low; and the as-
as
received heating values will be too high. This can result in major errors
when estimating quality and therefore the likely sales price of the coal.
Coking coals can lose some coking properties quickly (especially fluidity).
Again coal with likely coking properties should be sampled as soon as
possible, and if there is a delay in transport to a laboratory for analysis,
should be stored on site in a freezer.
The Report on the drilling program should mention precautions taken to

ens re that the anal
ensure analysis
sis is reliable
reliable, incl
including
ding the treatment of samples
and precautions taken to ensure against coal drying.
Ply sampling
• Coal properties tend to follow laterally
Ply
along strike. Geological roof
1
• Th
There will typically be significant
ill t i ll b i ifi t
quality differences within the seam. 2 Mining Bench Roof
• After the initial drilling phase, the
3
project geologist will typically correlate
project geologist will typically correlate
Mining Bencch
and name the seams; and will decide a 4 Non‐coal Parting
typical ply naming system also. 5
Parting
• Later sampling will then follow these
plies. 6
Mining Bench Floor
• This depends on accurate correlation 6
of the plies. 7
g
Geological Floor
• If plies are thick then sub‐ply samples
f
can also be taken; but these should Mudstone
also follow stratigraphic boundaries so
that they are consistent.
that they are consistent. Hypothetical vertical section through a seam showing
the sub-division into separate plies, which are sampled
separately; and the Mining Bench

Reconciliation with downhole geophysical logs
• The coal sample intervals must be reconciled with the downhole
geophysical logs. Before doing this, we must be sure that the
geophysical depths are correct and that there is no systematic
depth error.
• The geologists log is adjusted so that the roof, floor and internal
g g g j ,
stone bands, match the geophysical log anomalies.
• The amount of core recovery is then determined; and the location
of the core loss can be decided
of the core loss can be decided.
• Core recovery should be estimated as soon as possible. Most
drilling contracts require a re‐drill if the core recovery is less than
95% within the major coal seams.
h h l

Database
• Data must be entered into a reliable database.
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• As the project advances and becomes larger, with more data, it will
be necessary to assign responsibilities for database management
eg the right to enter data; the right to make changes.
• As noted, original data is kept. This includes original paper data
As noted original data is kept This includes original paper data
entry sheets, as these can be used to check for data entry errors
later. Original survey data and surveyors notes must also be
retained and may be needed for an audit of the survey
retained, and may be needed for an audit of the survey.
• Database validation will be needed

Geological Modelling
• Geological modelling is done within a computerised modelling
system such as the Stratmodel system within the Minescape
software (Mincom).
• The software allows the user to define the seam names and seam
relationships (eg
p ( g splitting); minimum parting thickness; location
p g); p g ;
and orientation of faults; depth of weathering.
• The model can then be used as input to a mineable reserve and
quality estimation
quality estimation.

AGENDA
Introduction
Exploration Stages
Exploration Stages
p p g
Conclusion
Discussion

Reporting
After each stage of a staged Exploration Program, a Report is needed.
The Exploration
Th E l ti M Managementt will
ill require
i reporting
ti tto understand
d t d th the
results and recommendations / budgets for the next step. In some cases
the Geologists report will become part of a larger Feasibility Study or an
economic scoping study
study, so Company management can make informed
decisions and to inform potential sources of finance for the project.
If the company is listed on a Share Market

Market, investors need to be fully
informed of exploration results. In some countries, the sharemarket
regulators require that resource reporting follows the standards set by a
Mineral Code egg JORC.
Some companies require that internal reporting for company

management also follows the same standards. This gives a solid
framework for reporting.

Reporting
The report content will depend on the stage.
All will
ill share
h th
the ffollowing
ll i as a minimum:
i i
All results will be in tables, either as a backup database or in an Appendix

to the report
report.
The report will have a Location Map and a clear definition of the title (eg
KP or PKB2B boundaries) and other Land Status eg Kabupaten
boundaries; National Parks etc.
Geological
g results will be shown clearly
y in maps
p at appropriate
pp p scales and
in cross sections.
The report will end with recommendations for the next stage; if the
recommendation is to continue, then there will be a Work Program; and a
budget; and a target in terms of the planned Resource Classification and
the potential resource and quality that may be proved by the program. 39
Reporting – Early Stage
If the report is for early
stage results, before
th d
the declaration
l ti off a
Resource, then the
following is a suitable
Check List to consider
consider.
40
Tenement Data
From a company
website
41
Geology – explain the coal stratigraphy
From a company website 42

Reporting – Later Stage
43
Maps…….
Topography 44
Reporting Checklist
Sampling Techniques
‐ Type of sampling; techniques used to ensure
samples are representative
‐ Drilling type; details; core recovery; whether
ll d l h h
bias may have occurred
‐ L
Logging techniques and detail; photography
i t h i d d t il h t h
‐ Laboratory procedures; QC (quality Control)

Reporting Checklist (Continued)
Sampling Techniques (Cont’d)
‐ Borehole spacing; relevance to the Coal
Resource classification
‐ Topographic mapping; techniques; accuracy
h h
‐ Topographic survey of boreholes; accuracy;
projection system used;
j ti t d
‐ Results of any audits or reviews of sampling
techniques and data;
techniques and data;

Database Integrity
‐ Measures taken to ensure data has not been
corrupted
‐ Data validation procedures
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Geological Interpretation
‐ Confidence in or uncertainty about the
geological interpretation
‐ Type of data used; assumptions made
fd d d
‐ the impact of alternate assumptions on the
C l
Coal resource estimate (eg
ti t ( alternate
lt t
location of faults etc)
‐ The factors affecting continuity of coal seams
The factors affecting continuity of coal seams
and of coal quality

Estimation and modelling techniques
‐ The type and suitability of the techniques
used and key assumptions.
‐ The validation process; comparison of model
h ld f d l
data to borehole data

Moisture
‐ The method of determination of the moisture
The method of determination of the moisture
content
‐ the moisture basis
‐ if a low rank coal steps taken to ensure that the
if a low rank coal, steps taken to ensure that the
samples did not lose moisture before testing
Note: for low rank coals, I believe that analytical results should be reported on an as‐
received (total moisture) basis. Reporting at air dried basis will give a misleading view of
the quality. Investors are still not understanding the quality basis of some Indonesian coal
resources for this reason. Low rank coals can also lose moisture before they are tested if
th
they are not handled appropriately, and there must be discussion on the technique used to
t h dl d i t l d th t b di i th t h i dt
ensure that the total moisture (=as received moisture) is representative.
50
Resource Reporting
The Resources should be reported for individual seams or seam groups; and
should be divided and reported using key variables such as thickness, depth
range strip ratio and geological or technical considerations The key variables
range, strip ratio, and geological or technical considerations. The key variables
and assumptions for each deposit should be clearly stated in order to ensure
clarity and transparency of the report.
An example from a
Public Report on a
Company website

Relative Accuracy of Resource Estimate
‐ Where appropriate a statement of the relative
h i f h l i
accuracy and/or confidence in the Coal Resource
for example the use of geostats to determine the
for example the use of geostats to determine the
relative accuracy within stated confidence limits;
or alternatively, a qualitative discussion of the
f t th t
factors that could affect the accuracy. Consider
ld ff t th C id
providing a Range of resource size, from worst case
to best case, with a Base Case, which emphasises
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that this is an estimate not a calculation

Resource Checklist (Continued)
Classification
‐ The basis for the classification into resource
The basis for the classification into resource
categories;
‐ Discussion on how the classification considered
all relevant factors eg confidence in the estimate
all relevant factors eg confidence in the estimate
of the tonnes; confidence in continuity of the coal
seams; confidence in the depth of weathering
and topographic mapping; confidence in the
and topographic mapping; confidence in the
continuity of the coal quality

Audits or Reviews
‐ The results of any audits or reviews of the
Coal Resource

JORC Workshop
THANK YOU
THANK YOU

AGENDA
Introduction
Exploration Stages
Exploration Stages
p p g
Conclusion
Discussion

BACKUP

Precision
“I would rather be vaguely right than precisely wrong”
John Maynard Keynes –
Economist

Precision – why does it matter?
It is a scientific principle that precision in reporting should
correspond to the level of accuracy.
Any estimate of “what is the population of a country” would normally
be to the nearest one million. The estimate is approximate.
When asked when does the meeting start, we say “10 am” when
actually we know it may start 5 or 10 minutes later. If we really want
th
the meeting to start EXACTLY on time we will say “10 SHARP” which
ti t t t EXACTLY ti ill “10 SHARP” hi h
does imply to the nearest minute.
If the order of accuracy of a resource estimate is for example around
If th d f f ti t i f l d
10% or 20%, it can be misleading and inaccurate to report a very
precise resource number. Investors who make decisions based on the
report may believe that accuracy and precision are related.
report may believe that accuracy and precision are related.

Estimating Relative Density for Tonnage Calculations
THE PROBLEM LABORATORY RD
The relative density of coal is of course The coal is crushed; removing all the voids &
used in the estimation of coal tonnes. cracks. Partial drying removes much of the
in situ moisture.
Density is related to the mass and the The results are then used to estimate the
volume of a material. Relative Density coal tonnes.
is compared to water (=1). The volume
and mass of a substance is determined The test is cheap; it is repeatable; and it is
by measuring it in air; then in water
water. precise However the coal samples are in a
precise.
very different condition from the in situ state.
However coal is porous with many Grinding and part air drying reduces both
volume and mass, but volume is reduced at
cracks, cleats etc; these contain water.
a greater rate
rate.
The problem then is to take the material
to be tested; then determine mass and The tests can be used as a starting point but
volume, while keeping the original pore only if the results are corrected; if they are
space and moisture content
content. not corrected,
corrected the RD (and coal tonnes) is
TOO HIGH typically by 2 to 5%
Source: Preston 2007
ADJUSTMENT METHODS RELEVANCE TO ESTIMATES
There are several methods for The errors obviously become more
estimating the In Situ relative density; significant for low rank coals and also for
these are described in more detail by high accuracy estimations; at the level of
Preston, 2005. inferred resources, for example, the
i
impact t off this
thi error iis minor
i compared
d tto
One of these is Apparent Relative the level of uncertainty in general
Density. This is a direct testing
method usingg lump p coal in water,, and
follows an Australian Standard, AS
1038.21.2.
This has problems; only lump coal

can be tested; and the coal is “air
dried” so some of the natural
moisture is removed. Also the coal
probably does not contain as many
voids and cracks as originally. Source: Preston 2007

PRESTON SANDERS METHOD
The Preston & Sanders method has now become the industry
y
benchmark in Australia.
This uses RD as the starting point.
Air dried moisture is determined.
In Situ moisture is then estimated by the geologist, using other moisture

test results eg
g as received; equilibrium
q moisture.
Relative density (in situ) = Rdad * (100 - Mad )
100 + Rdad * (ISM - Mad ) - ISM
Source: Preston 2007

Why were these codes developed?
Source: The JORC Code (presentation by Peter Stoker, 2006) 63

The Competent Person
Source: Stephenson, 2005

The Competent Person Definition


A Competent Person as defined under the JORC Code must be a
Member or Fellow of a recognised professional organisation
Member or Fellow of a recognised professional organisation (ROPO)
(ROPO)
with appropriate experience.
Clause 10 provides that:
A “Competent Person” must have a minimum of five years experience
which is relevant to the style of mineralisation and type of deposit
under consideration and to the type of activity which that person is
undertaking”.
The hurdle of required experience is in accordance with the third of
the three principles of the JORC Code, ie competence.
p p , p .

The Competent Person ‐ Experience
The JORC Code provides that
“If
If the Competent Person is preparing a report on Exploration
the Competent Person is preparing a report on Exploration
Results, the relevant experience must be in exploration. If the
Competent Person is estimating, or supervising the estimation of
Mineral Resources, the relevant experience must be in the
, p
estimation, assessment and evaluation of Mineral Resources. If the
Competent Person is estimating, or supervising, the estimation of
Ore Reserves, the relevant experience must be in the estimation,
assessment, evaluation and economic extraction of Ore Reserves”
Specifically, this means that a geologist with more than 5 years
experience in coal resource estimation MUST NOT be the Competent
Person for reserve estimation; in practice, that is an area for
f h f
experienced mining engineers with skills in mine planning and
economic evaluations.

The Competent Person – Resource & Reserve Reporting
In practice, at least two Competent Persons are needed
1. The competent Person who is responsible for the Resource
Statement (the Geologist)
2. The Competent Person who is responsible for the Reserve
Statement (the Mining Engineer).

Consent of the Competent Person
When a company issues a report containing material from the Competent
Person, the Company must obtain the consent of the Competent Person as
to the form and context in which the information appears This is required by
to the form and context in which the information appears. This is required by
Clause 8.
g p y p p
If a disclosing company issues a public report or disclosure document
without having obtained the written consent from the Competent Person,
and the report is potentially misleading and deceptive, the Company may be
sued by those who suffer economic loss. This can be used as a defence by
p
the Competent Person involved.
If a Competent Person is using information provided by a Company, he must
not accept that information blindly. He should mention that he has not
tested the information or cannot independently confirm its accuracy
tested the information or cannot independently confirm its accuracy.
Source: Livesley, 2008: Liability of Competent Persons for JORC reports

Consent of the Competent Person

How do I become a Competent Person?
The JORC Code states that the Competent Person must be a member of a
recognised Professional Association and have 5 years relevant experience. To
be the Competent Person for resource estimates this must be 5 years
be the Competent Person for resource estimates ‐ this must be 5 years
experience in estimating resources. For coal – this experience must be in
estimating coal resources.
One method is to join the Australian Institute of Mining & Metallurgy. The
application must be sponsored by two current members of the AusIMM who
can guarantee that they have known the applicant for a certain time period.
In the longer term, perhaps an Indonesian professional association will
become a recognised professional organisation under JORC. This
organisation needs approval by the AusIMM, and a key part of this approval
is confirming that the organisation in practice has a mechanism and history
is confirming that the organisation in practice has a mechanism and history
of ensuring professional conduct of its members and for disciplining
members who the organisation has confirmed, via an internal review
process, have been unethical. This is required by stakeholders. The AusIMM
annually requests documentation from the ROPO of any breaches of the
annually requests documentation from the ROPO of any breaches of the
JORC Code by its members.
How do I become a Competent Person?
Most companies have a strict process of internal approval of a
Competent Person for company resources and reserves This is
Competent Person for company resources and reserves. This is
understandable as the role involves company reputation issues. An
example of the internal approval process:
• Membership of the Aus IMM or a recognised
M b hi f th A IMM i d Professional
P f i l
Organisation;
• A certificate confirming that the person has attended a Company‐
approved course on the JORC Code
• The Candidate signing a document confirming that he or she has
the required qualifications under the JORC Code, and attaching a CV
q q , g
listing the relevant experience
• Approval by a senior executive of the company.

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COAL EXPLORATION TECHNIQUES

COAL EXPLORATION TECHNIQUES

MGEI – IAGI SEMINAR, BANDUNG 2

INFERRED INDICATED MEASURED

MGEI – IAGI SEMINAR, BANDUNG 3

MGEI – IAGI SEMINAR, BANDUNG 5

MGEI – IAGI SEMINAR, BANDUNG 6

Source Stephenson, 2005

MGEI – IAGI SEMINAR, BANDUNG 8

MGEI – IAGI SEMINAR, BANDUNG 9

MGEI – IAGI SEMINAR, BANDUNG 10

INFERRED INDICATED MEASURED

MGEI – IAGI SEMINAR, BANDUNG 11

MGEI – IAGI SEMINAR, BANDUNG 13

From a company website

MGEI – IAGI SEMINAR, BANDUNG 14

INFERRED INDICATED MEASURED

MGEI – IAGI SEMINAR, BANDUNG 15

MGEI – IAGI SEMINAR, BANDUNG 16

Results are used to guide the

MGEI – IAGI SEMINAR, BANDUNG 17

Indonesia Bowen Basin, Australia Magallanes Basin, Chile

The channel should be cut back into

“Ply by ply” sampling

MGEI – IAGI SEMINAR, BANDUNG 19

MGEI – IAGI SEMINAR, BANDUNG 20

MGEI – IAGI SEMINAR, BANDUNG 21

Bowen Basin rank changes

MGEI – IAGI SEMINAR, BANDUNG 22

In some areas trenching may

MGEI – IAGI SEMINAR, BANDUNG 23

MGEI – IAGI SEMINAR, BANDUNG 24

INFERRED INDICATED MEASURED

MGEI – IAGI SEMINAR, BANDUNG 26

MGEI – IAGI SEMINAR, BANDUNG 27

MGEI – IAGI SEMINAR, BANDUNG 29

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For low rank coals,

The Report on the drilling program should mention precautions taken to

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MGEI – IAGI SEMINAR, BANDUNG 34

MGEI – IAGI SEMINAR, BANDUNG 35

MGEI – IAGI SEMINAR, BANDUNG 36

MGEI – IAGI SEMINAR, BANDUNG 37

If the company is listed on a Share Market

Some companies require that internal reporting for company

MGEI – IAGI SEMINAR, BANDUNG 38

All results will be in tables, either as a backup database or in an Appendix

From a company website 42

MGEI – IAGI SEMINAR, BANDUNG 45

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MGEI – IAGI SEMINAR, BANDUNG 54

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