Philippine Mineral Reporting Code for Reporting of Exploration

Results, Mineral Resources and Mineral Reserves

The PMRC
2020 Edition

Prepared by the PMRC Committee composed of the Philippine Society

of Mining Engineers, Geological Society of thePhilippines, Society of
Metallurgical Engineers of the Philippines, The Philippine Stock
Exchange, Inc., Chamber of Mines of the Philippines, Philippine Mining
and Exploration Association,and the Philippines-Australia Business
Council, and supported by the Mines and Geosciences Bureau

TEXT COLOR LEGEND OF THIS DRAFT:

Black – PMRC 2007
Blue – JORC 2012
Red – CRIRSCO International Reporting Template 2019
Purple – JORC 2012 & CRIRSCO 2019
Brown - Changes suggested by CRIRSCO Working Group
Green – PMRCC (current)

1
PMRC 2020 Edition
CONTENTS
Foreword
I. Introduction
II. Scope
III. Competence andResponsibility
IV. Reporting Terminology
V. Reporting General
VI. Reporting of Exploration Targets
VII. Reporting of Exploration Results
VIII. Reporting of MineralResources
IX. Reporting of MineralReserves
X. Technical Studies
XI. Reporting of Metal Equivalents
XII. Reporting of In Situ or in Ground Valuations
XIII. Commodity Pricing and Marketing
XIV. Permitting and Legal Requirements
XV. Sustainability Consideration
XVI. Transitory Provisions
Table1-Checklist of Assessment and ReportingCriteria
Table 2 - Guideline for Technical Studies
Appendix 1 - Standard Definitions
Appendix 2-Generic Terms andEquivalents
Appendix 3-List of Acronyms
Appendix 4 - Compliance Statements
Appendix 5 - Accredited Competent Person’s Consent Form
Appendix 6 -Reporting of Mineralized Fill, Remnants, Pillars, Low Grade
Mineralization, Stockpiles, Dumps, andTailings
Appendix 7 -Reporting of Coal Exploration Results, CoalResources,
andCoalReserves
Appendix 8 -Reporting of Exploration Results, Mineral Resources, and Mineral
Reserves for Industrial Minerals, Cement Feed Materials and Construction Raw
Materials
Appendix 9 - Reporting of Exploration Results, Mineral Resources, and Mineral
Reserves for Dimension Stone, Ornamental, and Decorative Stone

2
PMRC 2020 Edition
 1 Foreword
2
3 1. The Philippine Mineral Reporting Code (PMRC), or the “Code” sets out minimum
4 standards, recommendations, and guidelines for Public Reporting in the
5 Philippines of Exploration Results, Mineral Resources, and Mineral Reserves.
6 The Code was formulated with the intent of setting minimum standards for public
7 reporting that are compatible with global standards.
8
9 ThePMRC 2020 Editionis an upgrade of the PMRC2007 Edition and modelled
10 substantially after the International Reporting Template (2019)of the Committee
11 for Mineral Reserves International Reporting Standards(CRIRSCO)and the
12 Australasian Code for Reporting of Exploration Results, Mineral Resources, and
13 Ore Reserves (JORC Code) 2012 of the Australasian Joint Ore Reserves
14 Committee (JORC). In adopting the CRIRSCO Template 2019‟s sixteen (16)
15 Standard Definitions (Appendix 1), the PMRC 2020Editionis compatible with the
16 international reporting codes of the CRIRSCO‟s members which are National
17 Reporting Organizations (NROs) such as the Australasia (JORC), Canada
18 (CIM), Chile (National Committee), Europe (PERC), South Africa (SAMCODES),
19 and USA (SME).
20
21 The PMRC2020Editionis an initiative of the Philippine Mineral Reporting Code
22 Committee (PMRCC) established on November 22, 2018 by the Professional
23 Regulation Commission‟s (PRC) Accredited Integrated Professional
24 Organizations (AIPOs) of the minerals industry which are the Philippine Society
25 of Mining Engineers (PSEM), the Geological Society of the Philippines(GSP),
26 and the Society of Metallurgical Engineers of the Philippines (SMEP) together
27 with minerals industry-related organizations and bodies such asThe Philippine
28 Stock Exchange, Inc. (PSE), theChamber of Mines of the Philippines (COMP),
29 thePhilippine Mining and Exploration Association (PMEA), and the Philippines-
30 Australia Business Council (PABC). The formulation of the technical provisions
31 of the Code was undertaken by PSEM, GSP,andSMEP.The formulation of the
32 Code was also supported by the Mines and Geosciences Bureau (MGB) of the
33 Department of Environment and Natural Resources (DENR).
34
35
36 I. Introduction
37
38 2. In thisPMRC 2020 Edition, important terms and their definitions are provided as
39 numbered clausesin bold typeface. The definitions are a core element of the
40 Code. Other mandatory elements of the Code, in normal typeface and as
41 numbered clauses, are similarly identified, both in the Code and its
42 Appendices.The guidelines and further interpretation of the definitions and
43 mandatory clauses are placed after the respective Code Clausesin italic typeface
44 and clearly identified.Guidelines are not part of the Code, but are intended to
45 provide assistance and guidance to readers and should be considered
46 persuasive when interpreting the Code. Indented italics are also used
47 intheAppendices and Tables to make it clear that they are also part of the
48 guidelines.
49
50 3. The PMRC has been adopted by the PSEM, GSP and SMEP and is therefore
51 binding on members of these professional organizations. It is endorsed by the
52 Securities and Exchange Commission (SEC), MGB, COMP, PMEA, and PABC
53 as a standard that promotes ethical conduct in public reporting in the minerals
54 industry. The Code has also been adopted by and included in the listing and
55 disclosure rules of the PSEsince 2008, and as part of the regulatory and
3
 56 reportorial requirementsof MGB since 2010.
57
58 Under the PSE‟s listing rules, a Public Report must be prepared in accordance
59 with the Code if it includes a statement on Exploration Results, Mineral
60 Resources or Mineral Reserves. The incorporation of the Code imposes certain
61 specific requirements on mining or exploration companies reporting to the PSE.
62 There remain a number of other issues outside the PMRC associated with Public
63 Reports that are addressed specifically within the listing rules.
64
65 As such, it is strongly recommended that users of the Code familiarize
66 themselves with the listing rules of the PSE and the regulatory and reportorial
67 requirements of the MGB that relate to thePublic Reporting of Exploration
68 Results, Mineral Resources and Mineral Reserves.
69
70
71 II. Scope
72
73 4. The PMRC 2020Edition applies to all solid mineral raw materials for which Public
74 Reporting of Exploration Results, Mineral Resources, and Mineral Reserves is
75 required by any relevant regulatory authority.
76
77 A Mineral is any substance, extracted for value, occurring naturally in or
78 on the Earth, in or under water or in tailings, residues or stockpiles, having
79 been formed by or subjected to a geological process but excludes water,
80 oil and gas.
81
82 The definition of Mineral is broad, and therefore the Code is applicable to a
83 diverse range of commodities for which Public Reporting of Exploration Results,
84 Mineral Resources, and Mineral Reserves is required by a relevant regulatory
85 authority, including but not limited to:
86
87  metalliferous minerals,
88  mineralized fill, remnants, pillars, low grade mineralization, stockpiles,
89 dumps, and tailings (remnant materials) (Appendix 6),
90  coal(Appendix 7),
91  industrial minerals,cement feed materials, and construction raw
92 materials(Appendix 8),
93  dimension stone, ornamental and decorative stone(Appendix 9),and
94  other mineral raw materials.
95
96 5. The principles governing the operation and application of the PMRC are
97 Transparency, Materiality, andCompetence
98
99  Transparencyrequires that the reader of a Public Report is provided with
100 sufficient information, the presentation of which is clear and unambiguous, to
101 understand the report and is notmisledby this information or by omission of
102 material information that is known to the Accredited Competent
103 Person(ACP).
104
105  Materialityrequires that a Public Report contains all the relevant information
106 which investors and their professional advisers would reasonably require,
107 and reasonably expect to find in the report, for the purpose of making a
108 reasoned and balanced judgmentregarding the Exploration Results, Mineral
109 Resources or Mineral Reserves beingreported.Where relevant information is
110 not supplied, an explanation must be provided to justify its exclusion.
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111
112
113  Competencerequires that the Public Report be based on work that is the
114 responsibility of suitably qualified and experienced persons who are subject
115 to an enforceable professional code ofethics(the ACP).
116
117 Transparency and Materiality are guiding principles of the Code, and the ACP
118 must provide explanatory commentary on the material assumptions underlying
119 the declaration of Exploration Results, Mineral Resources or MineralReserves.
120
121 In particular, the ACP must consider that the benchmark of Materiality is that
122 which includes all aspects relating to the Exploration Results, Mineral Resources
123 or Mineral Reserves that investors or their advisers would reasonably expect to
124 see explicit comment on from the ACP. The ACP must not remain silent on any
125 material aspect for which the presence or absence of comment could affect the
126 public perception or value of the mineral occurrence.
127
128 6. Table 1 provides, in a summary form, a list of the criteria which must be
129 considered by the ACPwhen preparing a Public Report on Exploration Results,
130 Mineral Resources or MineralReserves.
131
132 In the context of complying with the principles of the Code, comments relating to
133 the items in the relevant sections of Table 1 should be provided on an „if not, why
134 not‟ basis within the ACP‟s documentation. Additionally, comment related to the
135 relevant sections of Table 1 must be complied on an „if not, why not‟ basis within
136 Public Reporting for significant projects when reporting Exploration Results,
137 Mineral Resource or Mineral Reserves for the first time. Table 1 also applies to
138 instances where these items have materially changed from when these were last
139 publicly reported. Reporting on an „if not, why not‟ basis ensures that it is clear to
140 an investor whether items have been considered and deemed of low
141 consequence or are not yet addressed or resolved.
142
143 For the purpose of the PMRC, the phrase „if not, why not‟ means that each item
144 in the relevant section of Table 1 of the Code must be discussed and if it is not
145 discussed, then the ACP must explain why it has been omitted from the
146 documentation.
147
148 7. Public Reportsare reportsprepared for the purpose of informing investors
149 or potential investors and their advisers on Exploration Results, Mineral
150 Resources or Mineral Reserves. These include but are not limited to annual
151 and quarterly company reports, media releases, information memoranda,
152 technical papers, website postings, and public presentations.
153
154 These Public Reports may be submittedto the PSE or other regulatory
155 authorities as required by law.
156
157 The Code is a required minimum standard for Public Reporting. PMRC also
158 recommends its adoption as a minimum standard for other reporting.
159 Companies are encouraged to provide information in their Public Reports
160 that is as comprehensive as possible.
161
162 The Code applies to other publicly-released company information in the form
163 of postings on company web sites and briefings for shareholders,
164 stockbrokers, and investment analysts. The Code also applies to the
165 following reports if they have been prepared for the purposes described in
166 Clause 7: including but not limited to: environmental statements,information
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167 memoranda,expert reports, and technical papers referring to Exploration
168 Results, Mineral Resources or MineralReserves.
169
170 For companies issuing annual reports, or other periodicsummary reports, all
171 material information relating to Exploration Results, Mineral Resources,and
172 MineralReserves should be included.
173
174 In cases where summary information is presented, the Public Reportmust clearly
175 state that the information is a summary, and a reference must be provided,
176 giving the source and location of the Code-compliant Public Reports or Public
177 Reporting on which the summary isbased.
178
179 The Public Report must include sufficient context and cautionary language to
180 allow a reasonable investor to understand the nature, importance, and limitations
181 of the data, interpretations, and conclusions summarized in the report.
182
183 It is recognized that companies can be required to issue reports in more than
184 one regulatory jurisdiction, with compliance standards that may differ from
185 this Code. It is recommended that such reports include a statement alerting
186 the reader to this situation. Where members of PSEM, GSP, and SMEP are
187 required to report in other jurisdictions, they are obliged to comply with the
188 requirements of those jurisdictions.
189
190 Reference in the Code to ‟documentation‟ includes internal company
191 documents prepared as a basis for, or to support, a Public Report.
192
193 It is recognized that situations may arise where documentation prepared
194 byan ACP for internal company or similar non-public purposes does not
195 comply with the PMRC. In such situations, it is recommended that the
196 documentation includes a prominent statement to this effect. This will make it
197 less likely that non-complying documentation will be used to compile Public
198 Reports, since Clause 9 requires Public Reports to fairly reflect Exploration
199 Results, Mineral Resource, and/or MineralReserve estimates, and supporting
200 documentation, prepared by an ACP.
201
202 While every effort has been made within the Code and Guidelines (including
203 Table 1)to cover most situations likely to be encountered in Public Reporting,
204 there may be occasions when doubt exists as to the appropriate form of
205 disclosure. On such occasions, users of the Code and those compiling
206 reports to comply with the Code should be guided by its intent, which is to
207 provide a minimum standard for Public Reporting, and to ensure that such
208 reporting contains all information which investors and their professional
209 advisers would reasonably require, and reasonably expect to find in the
210 report, for the purpose of arriving at a reasoned and balanced judgment
211 regarding the Exploration Results, Mineral Resources or Mineral Reserves
212 being reported.
213
214 Estimation of Mineral Resources and Mineral Reserves is inherently subject
215 to some level of uncertainty and inaccuracy. Considerable skill and
216 experience may be needed to interpret pieces of information, such as
217 geological maps and analytical results based on samples that commonly only
218 represent a small part of a mineral deposit. The uncertainty in the estimates
219 should be discussed in the documentation and, where material, in Public
220 Reports, and reflected in the appropriate choice of Mineral Resource and
221 Mineral Reserve categories.
222
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223 A Public Report should be adequately supported by legible text, figures,
224 tables, sections, and maps to demonstrate competence by conveying
225 material information in a transparent manner. Figures of any type should
226 contain appropriate explanatory information in the form of titles and/or
227 captions, and legends.
228
229 The PMRC is a Code for Public Reporting, not a Code that regulates the
230 manner in which an ACP estimates Mineral Resources or Mineral Reserves.
231 The term „PMRC compliant‟ therefore refers to the manner of reporting not to
232 the estimates. Use of the words „PMRC compliant‟ should be interpreted to
233 mean: „Reported in accordance with PMRC and estimated (or based on
234 documentation prepared) by an ACP as defined by PMRC.
235
236 8. PMRC recognizes that further review of the Code and Guidelines will be required
237 from time to time.
238
239
240 III. Competence andResponsibility
241
242 9. A Public Report concerning a company‟s Exploration Results, Mineral Resources
243 or Mineral Reserves is the responsibility of the company acting through its Board
244 of Directors. Any such report must be based on, and fairly reflect the information
245 and supporting documentation prepared by or under the direction of and signed
246 by an ACPor ACPs. A company issuing a Public Report shall disclose the
247 name(s) of the ACP(s), state whether the ACP is a full-time employee of the
248 company, and, if not, name the ACP‟s employer. The report shall be issued with
249 the prior written consent of the ACP as to the form and context in which
250 itappears.
251
252 Any potential for a conflict of interest by the ACP or a related party must be
253 disclosed in accordance with the Transparency principle. Any other relationship
254 of the ACP with the company making the report must also be disclosed in the
255 Public Report. The report must be issued with the prior written consent of the
256 ACP as to the form and context in which it appears.
257
258 Where a company is re-issuing information previously issued with the written
259 consent of the ACP, it must state the original report name, the name(s) of the
260 ACP(s) responsible for the original report, and state the date, reference, andthe
261 location of the original public report for public access. In these circumstances,
262 the company is not required to obtain the ACP‟s prior written consent as to the
263 form and context in which the information appears, provided:
264
265  The company confirms in the subsequent public presentation that it is not
266 aware of any new information or data that materially affects the information
267 included in the relevant market announcement. In the case of estimates of
268 Mineral Resources or Mineral Reserves, the company confirms that all
269 material assumptions and technical parameters underpinning the estimates
270 in the relevant market announcement continue to apply and have not
271 materially changed.
272
273  The company confirms that the form and context in which the ACP‟s findings
274 are presented have not been materially modified. Note that for the
275 subsequent public presentation, it is the responsibility of the company acting
276 through its Board of Directors to ensure the form and context have not been
277 materially altered.

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278
279 The relaxation of the requirement to obtain the ACP‟s prior written consent does
280 not apply to the requirements for annual reporting of Mineral Resources and
281 Mineral Reserves contained in Clause 17.
282
283 All such public disclosures should be specifically reviewed by the company to
284 ensure that the form and context in which the ACP‟s findings are presented
285 have not been materially modified, and to ensure that the previously issued
286 Exploration Results, Mineral Resources or Mineral Reserves remain valid in
287 the light of any more recently-acquired data.
288
289 Examples of appropriate forms of compliance statements are provided in
290 Appendix 4.
291
292 In order to assist ACP(s)and companies to comply with these requirements,
293 an ACP‟s Consent has been devised that incorporates the requirements of the
294 Code. The ACP‟s Consent Form is provided in Appendix 5.
295
296 The completion of a consent form, whether in the format provided or in an
297 equivalent form, is recommended as good practice and provides readily
298 available evidence that the required prior consent has been obtained.
299
300 The ACP‟s Consent Form(s), or other evidence of the ACP‟s priorwritten
301 consent, should be retained by the company and the ACP to ensure that the
302 written consent can be promptly provided, ifrequired.
303
304 10. Documentation detailing Exploration Results, Mineral Resource, and Mineral
305 Reserve estimates, on which a Public Report on Exploration Results, Mineral
306 Resources, and Mineral Reserves is based, must be prepared by, or under the
307 direction of, and signed by an ACPor ACPs. The documentation must provide a
308 fair representation of the Exploration Results, Mineral Resources or Mineral
309 Reserves beingreported.
310
311 11. An ‘AccreditedCompetent Person’ (ACP)is a minerals industry professional
312 who is a Member or Fellow of PSEM, GSP and/or SMEP, duly accredited as
313 an ACP by the professional organization in which he/she belongs, or of a
314 ‘Recognized Professional Organization’ (RPO),as included in a list
315 promulgated by PSEM, GSP, and SMEP through the PMRCC, as the need
316 arises, subject to professional laws implemented by the PRC. These
317 professional organizationshave enforceable disciplinary processes
318 including the powers to suspend or expel a member.
319
320 AnACPmust have a minimum of five years relevant experience in the style
321 of mineralization or type of deposit under consideration and to the activity
322 which that person isundertaking.
323
324 If the ACP is preparing a report on Exploration Results, the relevant
325 experience must be in exploration. If the ACP is estimating, or supervising
326 the estimation of Mineral Resources, the relevant experience must be in
327 the estimation, assessment and evaluation of Mineral Resources. If the
328 ACP is estimating, or supervising the estimation of Mineral Reserves, the
329 relevant experience must be in the estimation, assessment, evaluation and
330 economic extraction of MineralReserves.
331
332 The key qualifier in the definition of an ACP is the word `relevant'.
333 Determination of what constitutes relevant experience can be a difficult area
8
334 and common sense has to be exercised. For example, in estimating Mineral
335 Resources for vein gold mineralization, experience in a high-nugget, vein-
336 type mineralization such as tin, uranium, etc. will probably be relevant
337 whereas experience in (say) massive base metal deposits may not be. As a
338 second example, to qualify as an ACP in the estimation of Mineral Reserves
339 for alluvial gold deposits, considerable (probably at least five years)
340 experience in the evaluation and economic extraction of this type of
341 mineralization would be needed. This is due to the characteristics of gold in
342 alluvial systems, the particle sizing of the host sediment, and the low grades
343 involved. Experience with placer deposits containing minerals other than gold
344 may not necessarily provide appropriate relevantexperience.
345
346 The key word „relevant‟ also means that it is not always necessary for a
347 person to have five years experience in each and every type of deposit in
348 order to act as an ACP if that person has relevant experience in other deposit
349 types. For example, a person with (say) 20 years experience in estimating
350 Mineral Resources for a variety of metalliferous hard-rock deposit types may
351 not require five years specific experience in (say) porphyry copper deposits
352 in order to act as anACP. Relevant experience in the other deposit types
353 could count towards the required experience in relation to porphyry copper
354 deposits.
355
356 In addition to experience in the style of mineralization, anACP taking
357 responsibility for the compilation of Exploration Results and/or Mineral
358 Resource estimates should have sufficient experience in the sampling and
359 analytical techniques relevant to the deposit under consideration to be aware
360 of problems which could affect the reliability of data. Some appreciation of
361 extraction and processing techniques applicable to that deposit type may
362 also be important.
363
364 12. The ACP(s) must provide explanatory comment on the material assumptions
365 underlying the declaration of Exploration Results, Mineral Resources or Mineral
366 Reserves. In particular, the ACP(s), when considering Materiality as defined in
367 Clause 5, must include explicit comments on all aspects that an investor or
368 theiradvisers would reasonably expect to be provided. This would include, but
369 not belimited to, any aspect that would influence the public perception or value of
370 the subject matter. The ACP(s) must be satisfied that:
371
372  their work has not been unduly influenced by the organization, company or
373 person commissioning the report or a report that may become a Public
374 Report,
375  all assumptions are documented, and
376  adequate disclosure is made of all material aspects that an informed reader
377 may require to make a reasonable and balanced judgment thereof.
378
379 As a general guide, persons being called upon to act as ACPs should be
380 clearly satisfied in their minds that they could face their peers and
381 demonstrate competence in the commodity, type of deposit, and situation
382 under consideration. If doubt exists, the person should either seek opinions
383 from appropriately experienced colleagues or should decline to act as
384 anACP.
385
386 Estimation of Mineral Resources may be a team effort (for example, involving
387 one person or team collecting the data and another person or team preparing
388 the estimate). Estimation of Mineral Reserves is very commonly a team effort
389 involving several technical disciplines. It is recommended that, where there is
9
390 clear division of responsibility within a team, each ACP and his or her
391 contribution should be identified, and responsibility accepted for that
392 particular contribution. If only one ACP signs the Mineral Resource or Mineral
393 Reserve documentation, that person is responsible and accountable for the
394 whole of the documentation under the Code. It is important in this situation
395 that the ACP accepting overall responsibility for a Mineral Resource or
396 Mineral Reserve estimate and supporting documentation prepared in whole
397 or in part by others, is satisfied that the work of the other contributors
398 isacceptable.
399
400 Complaints made with respect to the professional work of anACP will be
401 dealt with under the disciplinary procedures of the AIPO or RPO to which the
402 ACP belongs, and if necessary, elevated to the Professional Regulation
403 Commission(PRC).
404
405 When a PSE-listed company with overseas interests wishes to report
406 overseas Exploration Results, Mineral Resource or Mineral Reserve
407 estimates prepared by a person who is not a member of PSEM, GSP, SMEP,
408 or a RPO, it is necessary for the company to nominate anACP(s) to take
409 responsibility for the Exploration Results, Mineral Resource or Mineral
410 Reserve estimate. The ACP(s) undertaking this activity should appreciate
411 that they are accepting full responsibility for the estimate and supporting
412 documentation under the PSE listing rulesand should not treat the procedure
413 merely as a „rubber-stamping‟exercise.
414
415
416 IV. ReportingTerminology
417
418 13. Public Reports dealing with Exploration Results, Mineral Resources or
419 MineralReserves must only use the terms set out in Figure1.
420
421 Figure 1 sets out the framework for classifying tonnage (or volume) and
422 grade (or quality) estimates to reflect different levels of geological confidence
423 and different degrees of technical and economic evaluation. Mineral
424 Resources can be estimated mainly by a geologist on the basis of
425 geoscientific information with some input from other disciplines. Mineral
426 Reserves, which are a modified sub-set of the Indicated and Measured
427 Mineral Resources (shown within the dashed outline in Figure 1), require
428 consideration of the Modifying Factors affecting extraction, and should in
429 most instances be estimated with input from a range of disciplines.
430
431 14. „Modifying Factors’ are considerations used to convert Mineral Resources
432 to Mineral Reserves. Theseinclude, but are not restricted to,mining,
433 processing,metallurgical, infrastructure,economic, marketing, legal,
434 environmental, social, and governmental factors.
435
436 Measured Mineral Resources may convert to either Proved Mineral Reserves
437 or Probable Mineral Reserves. The ACP may convert Measured Mineral
438 Resources to Probable Mineral Reserves because of uncertainties
439 associated with some or all of the Modifying Factors which are taken into
440 account in the conversion from Mineral Resources to MineralReserves. This
441 relationship is shown by the broken arrow in Figure 1. Although the trend of
442 the broken arrow includes a vertical component, it does not, in this instance,
443 imply a reduction in the level of geological knowledge or confidence. In such
444 a situation these Modifying Factors should be fullyexplained.
445

10
446 Refer also to the guidelines to Clause 33.
447
448
449
450
451
452
453
454
455
456 Figure 1. General relationship between Exploration Results, MineralResources and
457 Mineral Reserves

458
459
460 V. Reporting General
461
462 15. Public Reports concerning a company‟s Exploration Results, Mineral Resources
463 or Mineral Reserves should include a description of the style and nature of
464 themineralization.
465
466 16. A company must disclose any relevant information that could materially influence
467 the economic value of thoseExploration Results, Mineral Resources or Mineral
468 Reserves to the company. A company must promptly report any material
469 changes in its Mineral Resources or MineralReserves.
470
471 17. Companies must review and publicly report on their Mineral Resources and
472 Mineral Reserves annually.The annual review date must be nominated by the
473 company in its Public Reports of Mineral Resources and Mineral Reserves and
474 the effective date of each Mineral Resource and Mineral Reserve statement
475 must be shown. The company must discuss any material changes to previously
476 reported Mineral Resources and Mineral Reserves at the time of publishing
477 updated Mineral Resources and Mineral Reserves.
11
478
479 18. Throughout the Code, if appropriate, „quality‟ may be substituted for „grade‟ and
480 „volume‟ may be substituted for „tonnage‟. (Appendix 2 –Generic Terms
481 andEquivalents).
482
483
484
485
486
487 VI. Reporting of Exploration Targets
488
489 19. An Exploration Target is a statement or estimate of the exploration
490 potential of a mineral deposit in a defined geological setting where the
491 statement or estimate, quoted as a range of tonnage and a range of grade
492 (or quality) relates to mineralization for which there has been insufficient
493 exploration to estimate a Mineral Resource.
494
495 It is recognized that it is a common practice for a company to comment on and
496 discuss its exploration strategy in terms of target size and type. Any such
497 information relating to an Exploration Target must be expressed so that it cannot
498 be misrepresented or misconstrued as an estimate of a Mineral Resource or
499 Mineral Reserve. The terms Mineral Resource or Mineral Reserve must not be
500 used in this context. In any statement referring to potential quantity and grade of
501 the target, these must both be expressed as ranges and must include:
502
503  a detailed explanation of the basis for the statement, including specific
504 discussion of the geological setting and the exploration strategy, exploration
505 activity already completed and the presence of or lack of the following
506 attributes:
507
508 o mineralized outcrops and assays,
509 o surface geochemical and physical sampling results,
510 o surface and subsurface geophysical survey results, and
511 o drill holes, test pits and underground workings.
512
513  a clarification statement within the same paragraph as the first reference of
514 the Exploration Target in the Public Report, stating that the potential quantity
515 and grade is conceptual in nature, that there has been insufficient exploration
516 to estimate a Mineral Resource and that it is uncertain if further exploration
517 will result in the estimation of a Mineral Resource.
518
519 Given the level of uncertainty surrounding the supporting data, an Exploration
520 Target tonnage and grade must not be reported as a „headline statement‟ in a
521 Public Report.
522
523 If a Public Report includes an Exploration Target, the proposed exploration
524 activities designed to test the validity of the Exploration Target must be detailed
525 and the timeframe within which those activities are expected to be completed
526 must be specified.
527
528 If an Exploration Target is shown pictorially (for instance as cross section or
529 maps) or with a graph, it must be accompanied by text that meets the
530 requirements above.
531
12
532 A Public Report that includes an Exploration Target must be accompanied by an
533 ACP‟s statement taking responsibility for the form and context in which the
534 Exploration Target appears.
535
536 All disclosures of an Exploration Target must clarify whether the target is based
537 on actual Exploration Results or on proposed exploration programs. Where the
538 Exploration Target statement includes information relating to ranges of tonnages
539 and grades,these must be represented as approximations. The explanatory text
540 must include a description of the process used to determine the grade and
541 tonnage ranges used to describe the Exploration Target.
542
543 For an Exploration Target based on Exploration Results, a summary of the
544 relevant exploration data available and the nature of the results should also
545 be stated, including a disclosure of the current drill hole or sampling spacing
546 and relevant plans or sections. In any subsequent upgraded or modified
547 statements on the Exploration Targets, the ACP should discuss any material
548 changes to potential scale or quality arising from completed exploration
549 activities.
550
551
552 VII. Reporting of ExplorationResults
553
554 20. Exploration Results include dataandinformation generated by
555 mineralexploration programs that may be of use to investors,but which
556 donot form part of a declaration of Mineral Resources or MineralReserves.
557
558 The reporting of such information is common in the early stages of exploration
559 when the quantity of data available is generally not sufficient to allow any
560 reasonable estimates of Mineral Resources.
561
562 If a company reports Exploration Results in relation to mineralization not
563 classified as a Mineral Resource or a Mineral Reserve, then estimates of
564 tonnages and average grade must not be assigned to the mineralization unless
565 the situation is covered by Clause 19, and then only in strict accordance with the
566 requirements of thatClause.
567
568 Examples of Exploration Results include results of outcrop sampling, assays
569 of drill hole intercepts, geochemical results and geophysical survey results.
570
571 21. Public Reports of Exploration Results must contain sufficient information to allow
572 a considered and balanced judgment of their significance. Reports must include
573 relevant information such as exploration context, type, and method of sampling,
574 sampling intervals and methods, relevant sample locations, distribution,
575 dimensions, and relative location of all relevant assay data, methods of
576 analysis,data aggregation methods, land tenure status plus information on any of
577 the other criteria listed in Table 1 that are material to anassessment.
578
579 Public Reports of Exploration Results must not be presented so as to
580 unreasonably imply that potentially economic mineralization has been
581 discovered.If true widths of mineralization are not reported, an appropriate
582 qualification must be included in the Public Report.
583
584 Where assay and analytical results are reported, they must be reported using
585 one of the following methods, selected as the most appropriate by the ACP:
586
587  either by listing all results, along with sample intervals (or size, in the case of
13
588 bulk samples),or
589
590  by reporting weighted average grades of mineralized zones, indicating
591 clearly how the grades werecalculated.
592
593 Clear diagrams and maps designed to represent the geological context must be
594 included in the report. These must include, but not be limited to, a plan view of
595 drill hole collar locations and appropriate sectional views.
596
597 Reporting of selected information such as isolated assays, isolated drill holes,
598 assays of panned concentrates or supergene enriched soils or surface samples,
599 without placing them in proper context, is unacceptable.
600
601 While it is not necessary to report all assays or drill holes, it is a requirement
602 that sufficient information about the omitted data is provided so that a
603 considered and balanced judgment can be made by the reader of the report.
604 Where reports of Exploration Results do not include all drill holes or all
605 intersections of drill holes, the ACP must provide an explanation of why this
606 information is not considered relevant or why it has not been provided.
607
608 As required under Clause 6, the ACP must not „remain silent‟ on any issue for
609 which the presence or absence of comment could impact the public
610 perception or value of the mineral occurrence. For significant projects, the
611 reporting of all criteria in Sections 1 and 2 of Table 1 on an „if not, why not‟
612 basis is required, preferably as an appendix to the Public Report.
613
614 Additional disclosure is particularly important where inadequate or uncertain
615 data affect the reliability of, or confidence in, a statement of Exploration
616 Results; for example, poor sample recovery, poor repeatability of assay or
617 laboratory results, etc.
618
619
620 VIII. Reporting of MineralResources
621
622 22. A ‘Mineral Resource’ is a concentration or occurrence of solidmaterial of
623 economic interest in or on the Earth’s crust in such form, grade (or
624 quality), and quantity that there are reasonable prospects for eventual
625 economic extraction. The location, quantity, grade(or quality), continuity,
626 and other geological characteristics of a Mineral Resource are known,
627 estimated or interpreted from specific geological evidence,
628 includingsampling. Mineral Resources are subdivided, in order of
629 increasing geological confidence, into Inferred, Indicated, and
630 Measuredcategories.
631
632 All reports of Mineral Resources must satisfy the requirement that there are
633 reasonable prospects for eventual economic extraction (i.e., more likely than
634 not), regardless of the classification of the Mineral Resource.
635
636 Portions of a deposit that do not have reasonable prospects for eventual
637 economic extraction must not be included in a Mineral Resource. The basis for
638 the reasonable prospects assumption is always a material matter, and must be
639 explicitly disclosed and discussed by the ACP in the Public Report using the
640 criteria listed in Table 1 for guidance. The reasonable prospects disclosure must
641 also include a discussion of the technical and economic support for the cut-off

14
642 gradeassumptions applied.
643
644 When untested practices are applied in the determination of reasonable
645 prospects, the use of the proposed practices for reporting of the Mineral
646 Resource must be justified by the ACPinthePublicReport.
647
648 Geological evidence and knowledge required for the estimation of Mineral
649 Resources must include sampling data of a type, and at spacings, appropriate to
650 the geological, chemical, physical, and mineralogical complexity of the mineral
651 occurrence, for all classifications of Inferred, Indicated, and Measured Mineral
652 Resources. A Mineral Resource cannot be estimated in the absence of sampling
653 information.
654
655 Clause 22 including its guidelines takes precedence over those for the Inferred,
656 Indicated, and Measured categories, in that estimates must first satisfy the
657 criteria required for definition as a Mineral Resource before consideration is
658 given to the criteria applicable to each category of MineralResource.
659
660 The term „Mineral Resource‟ covers mineralization, including dumps and
661 tailings, which has been identified and estimated through exploration and
662 sampling and within which Mineral Reserves may be defined by the
663 consideration and application of the Modifying Factors.
664
665 The term „reasonable prospects for eventual economic extraction‟ implies a
666 judgment (albeit preliminary) by the ACPin respect to all matters likely to
667 influence the prospect of economic extraction, including the approximate
668 mining parameters. In other words, a Mineral Resource is not an inventory of
669 all mineralization drilled or sampled, regardless of cut-off grade, likely mining
670 dimensions, location or continuity. It is a realistic inventory of mineralization
671 which, under assumed and justifiable technical, economic,and development
672 conditions, might, in whole or in part, become economically extractable.
673
674 Where considered appropriate by the ACP, Mineral Resource estimates may
675 include material below the selected cut-off grade to ensure that the Mineral
676 Resources comprise bodies of mineralization of adequate size and continuity
677 to properly consider the most appropriate approach to mining.
678 Documentation of Mineral Resource estimates should clearly identify any
679 diluting material included, and Public Reports should include commentary on
680 the matter if consideredmaterial.
681
682 Any material assumptions made in determining the „reasonable prospects for
683 eventual economic extraction‟ should be clearly stated, discussed and
684 justified in the Public Report.
685
686 Interpretation of the word „eventual‟ in this context may vary depending on
687 the commodity or mineral involved. For example, for some coal, iron ore,
688 bauxite, and other bulk minerals or commodities, it may be reasonable to
689 envisage „eventual economic extraction‟ as covering time periods in excess
690 of 50 years. However, for the majority of smaller deposits, application of the
691 concept would normally be restricted to perhaps 10 to 15 years, and
692 frequently to much shorter periods of time.In all cases, the considered time
693 frame should be disclosed and discussed by the ACP.
694
695 Any adjustment made to the data for the purpose of making the Mineral
696 Resource estimate, for example by cutting or factoring grades, should be
697 clearly stated and described in the Public Report.
698
15
699 Certain reports (e.g.,coal inventoryreports, exploration reports to
700 government, and other similar reports not intended primarily for providing
701 information for investment purposes) may require full disclosure of all
702 mineralization, including some material that does not have reasonable
703 prospects for eventual economic extraction. Such estimates of mineralization
704 would not qualify as Mineral Resources or Mineral Reserves in terms of the
705 PMRC (refer also to the guidelines to Clause 7 andAppendix 7).
706
707
708 23. An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which
709 quantity andgrade (or quality)areestimatedon the basis of limited
710 geological evidence and sampling. Geological evidence is sufficient to
711 imply but not verify geological and grade (or quality) continuity. It is based
712 on exploration, sampling, and testinginformation gathered through
713 appropriate techniques from locations such as outcrops, trenches, pits,
714 workings, and drill holes.
715
716 An Inferred Mineral Resource has a lower level of confidence than that
717 applying to an Indicated Mineral Resourceand must not be converted to a
718 Mineral Reserve. It is reasonably expected that the majority of Inferred
719 Mineral Resources could be upgraded to Indicated Mineral Resources with
720 continued exploration.
721
722 Where the Mineral Resource being reported is predominantly an Inferred Mineral
723 Resource, sufficient supporting information must be provided to enable the
724 reader to evaluate and assess the risk associated with the reported Mineral
725 Resource.
726
727 In circumstances where the estimation of the Inferred Mineral Resource is
728 presented on the basis of extrapolation beyond the nominal sampling and taking
729 into account the style of mineralization, the report must contain sufficient
730 information to inform the reader of:
731
732  the maximum distance that the resource is extrapolated beyond the sampling
733 points,
734  the proportion of the resource that is based on extrapolated data,
735  the basis on which the resource is extrapolated to these limits, and
736  a diagrammatic representation of the Inferred Mineral Resourceshowing
737 clearly the extrapolated part of the estimated resource.
738
739 The Inferred category is intended to cover situations where a mineral
740 concentration or occurrence has been identified and limited measurements
741 and sampling completed, but where the data quantity and quality are
742 insufficient to allow the geological and grade continuity to be confidently
743 interpreted. While it would be reasonable to expect that the majority of
744 Inferred Mineral Resources would upgrade to Indicated MineralResources
745 with continued exploration, due to the uncertainty of Inferred Mineral
746 Resources, it should not be assumed that such upgrading will alwaysoccur.
747
748 Confidence in the estimate of Inferred Mineral Resources is usually not
749 sufficient to allow the results of the application of technical and economic
750 parameters to be used for detailed planningin Pre-Feasibility (Clause 43) or
751 Feasibility (Clause 44) Studies. For this reason, there is no direct link from an
752 Inferred Mineral Resource to any category of Mineral Reserves (see Figure
753 1).
754
16
755 Caution should be exercised if Inferred Mineral Resources are used to
756 support technical and economic studiessuch as Scoping Studies (Clause 42).
757
758 24. An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for
759 which quantity, grade (or quality), densities, shape,andphysical
760 characteristics are estimated with sufficient confidenceto allow the
761 application of Modifying Factors in sufficient detail to support mine
762 planning and evaluation of the economic viability of the deposit.
763
764 Geological evidence is derived from adequately detailedand
765 reliableexploration, sampling, and testing information gathered through
766 appropriate techniques from locations such as outcrops, trenches, pits,
767 workings, and drill holes, and is sufficient to assume geological
768 andgrade(or quality) continuity between points of observation.
769
770 An Indicated Mineral Resource has a lower level of confidence than that
771 applying to a Measured Mineral Resourceand may only be converted to a
772 Probable Mineral Reserve.
773
774 Mineralization may be classified as an Indicated Mineral Resource when the
775 nature, quality, amount, and distribution of data are such as to allow
776 confident interpretation of the geological framework and to assume continuity
777 ofmineralization.
778
779 Confidence in the estimate is sufficient to allow the application of Modifying
780 Factors inTechnical Studiesas defined in Clauses 41 to 44.
781
782 25. A ‘Measured Mineral Resource’ is that part of a Mineral Resource for which
783 quantity, grade (or quality), densities, shape,and physical characteristics
784 are estimated with confidencesufficient to allow the application of
785 Modifying Factors to support detailed mine planning and final evaluation of
786 the economic viability of the deposit.
787
788 Geological evidence is derived from detailed and reliable exploration,
789 sampling and testing information gathered through appropriate techniques
790 from locations such as outcrops, trenches, pits, workings, and drill
791 holesand is sufficientto confirm geological and gradeor
792 (quality)continuitybetween points of observation.
793
794 A Measured Mineral Resource has a higher level of confidence than that
795 applying to an Indicated Mineral Resource. It may be converted to a Proved
796 Mineral Reserve or under certain circumstances to a Probable Mineral
797 Reserve.
798
799 A Measured Mineral Resource requires an understanding of the geology,
800 mineralogy, mineability, and amenability to processing of the mineral deposit.
801
802 Mineralization may be classified as a Measured Mineral Resource when the
803 nature, quality, amount, and distribution of data are such as to leave no
804 reasonable doubt, in the opinion of the ACP determining the Mineral
805 Resource, that the tonnage and grade of the mineralization can be estimated
806 to within close limits, and that any variation from the estimate would be
807 unlikely to significantly affect potential economic viability.
808
809 This category requires a high level of confidence in, and understanding of,
810 the geology and thecontrols of the mineral deposit.
17
811
812 Confidence in the estimate is sufficient to allow the application of Modifying
813 Factors in Technical Studiesas defined in Clauses 41 to 44with a high level
814 of confidence.
815
816 26. The choice of the appropriate category of Mineral Resource depends upon the
817 quantity, distribution, and quality of data available and the level of confidence
818 that attaches to those data. The appropriate Mineral Resource category must be
819 determined by anACP.
820
821 Mineral Resource classification is a matter for skilled judgment and an
822 ACPshould take into account those items in Table 1 which relate to
823 confidence in Mineral Resource estimation.
824
825 In deciding between Indicated Mineral Resources and Measured Mineral
826 Resources, ACP(s) may find it useful to consider, in addition to the phrases
827 in the two definitions relating to geological and grade continuity in Clauses 24
828 and 25, the phrase in the guideline to the definition for Measured Mineral
829 Resources: „.... any variation from the estimate would be unlikely to
830 significantly affect potential economic viability‟.
831
832 In deciding between Inferred Mineral Resources and Indicated Mineral
833 Resources, an ACP may wish to take into account, in addition to the phrases
834 in the two definitions in Clauses 23 and 24 relating to geological and grade
835 continuity, that part of the definition for Indicated Mineral Resources:
836 „Confidence sufficient to allow the application of Modifying Factorsto support
837 mine planning and evaluation of the economic viabilityof the deposit‟, which
838 contrasts with the guideline in the definition for Inferred Mineral Resources:
839 „Confidence in the estimate of Inferred Mineral Resources is not sufficient to
840 allow the results of the application of technical and economic parameters to
841 be used for detailed planning in Pre-Feasibility (Clause43) or Feasibility
842 (Clause 44) Studies.‟ and „Caution should be exercised if Inferred Mineral
843 Resources are used to support technical and economic studies such as
844 Scoping Studies (refer to Clause 42)‟.
845
846 The ACP should take into consideration issues regarding the style of
847 mineralization and cut-off grade when assessing geological and grade
848 continuityfor the purposes of classifying the Mineral Resource.
849
850 Cut-off grades chosen for the estimation should be realistic in relation to the
851 style of mineralizationand the anticipated mining and processing
852 development options.
853
854 27. Mineral Resource estimates are not precise calculations, being dependent on
855 the interpretation of limited information on the location, shape and continuity of
856 the occurrence and on the available sampling results. Reporting of tonnage and
857 grade estimates should reflect the relative uncertainty of the estimate by
858 rounding off to appropriately significant figures and,
859 inthecaseofInferredMineralResources,byqualificationwithtermssuchas„approxima
860 tely‟and to emphasize the imprecise nature of a Mineral Resource, the final
861 result should always be referred to as an estimate not a calculation.
862
863 In most situations, rounding to the second significant figure should be
864 sufficient. For example, 10,863,000 tonnes at 8.23 per cent should be stated
865 as 11 million tonnes at 8.2 per cent. There will be occasions, however, where
866 rounding to the first significant figure may be necessary in order to convey
867 properly the uncertainties in estimation. This would usually be the case with
18
868 Inferred Mineral Resources.
869
870 ACPs are encouraged, where appropriate, to discuss the relative accuracy
871 and confidence of the Mineral Resource estimateswith consideration of at
872 least sampling, analytical, and estimation errors. The statement should
873 specify whether it relates to global or local estimates, and, if local, state the
874 relevant tonnage. Where a statement on the relative accuracy and
875 confidence is not possible, a qualitative discussion of the uncertainties
876 should be providedin its place(refer to Table 1).
877
878 28. Public Reports of Mineral Resources must specify one or more of the categories
879 of „Inferred‟, „Indicated‟, and „Measured‟. Indicated and Measured Mineral
880 Resource categories must not be reported in a combined form unless details for
881 the individual categories are also provided. Inferred Mineral Resource cannot be
882 reported in a combined form with the Indicated and/or Measured Mineral
883 Resource categories since the former category cannot be converted to Mineral
884 Reserve while the other two categories are convertible. Similarly, Indicated and
885 Measured Mineral Resources must not be reported in terms of contained metal
886 or mineral content unless corresponding tonnages and grades are also
887 presented. Inferred Mineral Resource is not allowed to be reported in terms of
888 contained metals or mineral content with Indicated and/or Measured Mineral
889 Resources. Mineral Resources must not be aggregated with MineralReserves.
890
891 Public Reporting of tonnages and grades outside the categories covered by the
892 Code is not permitted unless the situation is covered by Clause 19, and then
893 only in strict accordance with the requirements of that Clause.
894
895 Estimates of tonnage and grade outside of the categories covered by the
896 Code may be useful for a company in its internal calculations and evaluation
897 processes, but their inclusion in Public Reports is not permitted.
898
899 29. In a Public Report of a Mineral Resource for a project material to the company,
900 when reporting for the first time, or when those estimates have materially
901 changed from when these were last reported, a brief summary of the information
902 in relevant sections of Table 1 must be provided. Alternatively,if a particular
903 criterion is not relevant or material, a disclosure that it is not relevant or material
904 and a brief explanation of why this is the case must be provided.
905
906 For a significant projectmaterial to the company, when Mineral Resource
907 estimates are first Publicly Reported or when a material change occurs(including
908 classification changes), there is an increased need for transparent discussion of
909 the basis for the new Mineral Resource estimate in order that investors are
910 appropriately informed of the basis for the changes. As noted in Clauses 5 and
911 6, the benchmark of Materiality is that which an investor or their advisers would
912 reasonably expect to see explicit comment on from the ACP, thus the reporting
913 of all relevant criteria in Table 1 on an „if not, why not‟ basis is required.
914
915 The Code specifies reporting against relevant sections of Table 1 in this
916 Clause. This may be satisfied by reporting against Section 4on the
917 presumption that matters related to Section 3 will already have been included
918 in a still current Public Report and this Report can be referenced. If this is not
919 the case, then these sections are also relevant and should be included in the
920 Public Report.
921
922 The technical summary based against Table 1 criteria should be presented
923 as an appendix to the Public Report.
19
924
925 Where there are as yet unresolved issues potentially impacting the reliability
926 of, or confidence in, a statement of Mineral Resources (for example, poor
927 sample recovery, poor repeatability of assay or laboratory results, limited
928 information on bulk densities, etc.), those issues should also be reported.
929
930 If there is doubt about what should be reported, it is better to err on the side
931 of providing too much information rather than too little.
932
933 Uncertainties in any of the criteria listed in Table 1 that could lead to under-
934 or over-statement of Mineral Resourceestimates should be disclosed.
935
936 Mineral Resource estimates are sometimes reported after adjustment from
937 reconciliation with production data. Such adjustments should be clearly
938 stated in a Public Report of Mineral Resources and the nature of the
939 adjustment or modification described.
940
941 30. The words „ore‟ and „reserves‟ must not be used in describing Mineral Resource
942 estimates as the terms imply technical feasibility and economic viability and are
943 only appropriate when all relevant Modifying Factors have been considered.
944 Reports and statements should continue to refer to the appropriate category or
945 categories of Mineral Resources until technical feasibility and economic viability
946 have been established.
947
948
949 IX. Reporting of MineralReserves
950
951 31. A ‘Mineral Reserve’ is the economically mineable part of a Measured
952 and/or Indicated Mineral Resource. It includes diluting materials and
953 allowances for losses, which may occur when the material is minedor
954 extracted and is defined by studies at Pre-Feasibility or Feasibility level as
955 appropriate that include application of Modifying Factors. Such studies
956 demonstrate that, at the time of reporting,extraction could reasonably be
957 justified.
958
959 The reference point at which Reserves are defined, usually the point where
960 the ore is delivered to the processing plant, must be stated. It is important
961 that, in all situations where the reference point is different, such as a
962 saleable product, a clarifying statement is included to ensure that the
963 reader is fully informed as to what is being reported.
964
965 The key underlying assumptions and outcomes of the Pre-Feasibility or
966 Feasibility Study must be disclosed at the time of reporting of a new or materially
967 changed Mineral Reserve.
968
969 Pre-Feasibility and Feasibility Studies are defined in Clauses 43 and 44 below.
970
971 Mineral Reserves are sub-divided in order of increasing confidence into Probable
972 Mineral Reserves and Proved Mineral Reserves.
973
974 In reporting MineralReserves, information on all Modifying Factors must be
975 included in Public Reports.Consideration of the confidence level of the Modifying
976 Factors is important in conversion of Mineral Resources to Mineral Reserves.
977
978 MineralReserves are those portions of Mineral Resources which, after the
979 application of the Modifying Factors, result in an estimated tonnage and
20
 980 grade which, in the opinion of the ACP making the estimates, can be the
981 basis of a technically and economically viable project, after taking account of
982 material relevant Modifying Factors. Deriving a Mineral Reserve without a
983 mine design or mine plan through a process of factoring of the Mineral
984 Resource is unacceptable.
985
986 Mineral Reserves are reported as inclusive of marginally economic material
987 and diluting material delivered for treatment or dispatched from the mine
988 without treatment.The term 'economically mineable‟ implies that extraction of
989 the MineralReserve has been demonstrated to be viable under reasonable
990 financial assumptions. This will vary with the type of deposit, the level of
991 study that has been carried out and the financial criteria of the individual
992 company. For this reason, there can be no fixed definition for the term
993 „economicallymineable‟.However, it is expected that the company will attempt
994 to achieve an acceptable return on capital invested, and that returns to
995 investors in the project will be competitive with alternative investments of
996 comparable risk.
997
998 In order to achieve the required level of confidence in the Modifying Factors,
999 appropriate Pre-Feasibility or Feasibility level studies will have been carried
1000 out prior to determination of the Mineral Reserves. The studies will have
1001 determined a mine plan and a production schedule that is technically
1002 achievable and economically viable and from which the Mineral Reserves
1003 can be derived.
1004
1005 The term „MineralReserve‟ need not necessarily signify that extraction
1006 facilities are in place or operative, or that all necessary approvals or sales
1007 contracts have been received. It does signify that there are reasonable
1008 expectations of such approvals or contractswill eventuate within the
1009 anticipated time frame required by the mine plans. There must be reasonable
1010 grounds to expect that all necessary Government approvals will be received.
1011 The ACP should report any material unresolved matter that is dependent on
1012 a third party on which extraction is contingent.
1013
1014 If there is doubt about what should be reported, it is better to err on the side
1015 of providing too much information rather than too little.
1016
1017 Any adjustment made to the data for the purpose of making the
1018 MineralReserve estimate, for example by cutting or factoring grades, should
1019 be clearly stated and described in the PublicReport.
1020
1021 32. A ‘Probable MineralReserve’ is the economically mineable part of an
1022 Indicated, and in some circumstances, a Measured Mineral Resource. The
1023 confidence in the Modifying Factors applying to a Probable Mineral
1024 Reserve is lower than that applying to a Proved Mineral Reserve.
1025
1026 A Probable Mineral Reserve has a lower level of confidence than a Proved
1027 Mineral Reserve but is of sufficient quality to serve as the basis for a decision on
1028 the development of the deposit.
1029
1030 33. A ‘Proved Mineral Reserve’ is the economically mineable part of a
1031 Measured Mineral Resource.A Proved Mineral Reserve implies a high
1032 degree of confidence in the Modifying Factors.
1033
1034 A Proved Mineral Reserve represents the highest confidence category of reserve
1035 estimate.
1036
21
1037 ACPs should be aware of the consequences of declaring material of the
1038 highest confidence category before convincing themselves that all of the
1039 relevant resource parameters and Modifying Factors have been established
1040 at a similarly high level of confidence.
1041
1042 The style of mineralization or other factors could mean that Proved
1043 MineralReserves are not achievable in some deposits.
1044
1045 34. The choice of the appropriate category of Mineral Reserve is determined
1046 primarily by the relevant level of confidence in the Mineral Resource and after
1047 considering any uncertainties in the Modifying Factors. Allocation of the
1048 appropriate category must be made by anACP.
1049
1050 The Code provides for a direct two-way relationship between Indicated
1051 Mineral Resources and Probable Mineral Reserves and between Measured
1052 Mineral Resources and Proved Mineral Reserves. In other words, the level of
1053 geological confidence for Probable Mineral Reserves is similar to that
1054 required for the determination of Indicated Mineral Resources, and the level
1055 of geological confidence for Proved Mineral Reserves is similar to that
1056 required for the determination of Measured Mineral Resources.
1057
1058 The Code also provides for a two-way relationship between Measured
1059 Mineral Resources and Probable Mineral Reserves. This is to cover a
1060 situation where uncertainties associated with any of the Modifying Factors
1061 considered when converting Mineral Resources to MineralReserves may
1062 result in there being a lower degree of confidence in the Mineral Reserves
1063 than in the corresponding Mineral Resources. Such a conversion would not
1064 imply a reduction in the level of geological knowledge orconfidence.
1065
1066 A Probable Mineral Reserve derived from a Measured Mineral Resource may
1067 be converted to a Proved Mineral Reserve if the uncertainties in the
1068 Modifying Factors are removed. No amount of confidence in the Modifying
1069 Factors for conversion of a Mineral Resource to a Mineral Reserve can
1070 override the upper level of confidence that exists in the Mineral Resource.
1071 Under no circumstances can an Indicated Mineral Resource be converted
1072 directly to a Proved Mineral Reserve (see Figure1).
1073
1074 Application of the category of Proved Mineral Reserve implies the highest
1075 degree of geological, technical, and economic confidence in the estimateat
1076 the level of production increments used to support mine planning and
1077 production scheduling, with consequent expectations in the minds of the
1078 readers of the report. These expectations should be borne in mind when
1079 categorizing a Mineral Resource as Measured.
1080
1081 Refer also to the guidelines in Clause 26 regarding classification of Mineral
1082 Resources.
1083
1084 35. Mineral Reserve estimates are not precise calculations. Reporting of tonnage
1085 and grade estimates should reflect the relative uncertainty of the estimate by
1086 rounding off to appropriately significant figures. Refer also to Clause27.
1087
1088 To emphasize the imprecise nature of a Mineral Reserve, the final result
1089 should always be referred to as an estimate, not a calculation.
1090
1091 ACPsshould, where appropriate, discuss the relative accuracy and/or
1092 confidence of the Mineral Reserve estimateswith consideration of both

22
1093 underlying estimation and Modifying Factor uncertainties. The statement
1094 should specify whether it relates to global(whole of reserve)or local estimates
1095 (a subset of the reserve for which the accuracy and/or confidence might differ
1096 from the whole of the reserve), and, if local, state the relevant tonnage or
1097 volume. Where a statement of the relative accuracy and/orconfidence is not
1098 possible, a qualitative discussion of the uncertainties should be provided in
1099 its place (refer to Table1, Table 2, and to Clauses 24 and 25).
1100
1101 36. Public Reports of MineralReserves must specify one or the other or both of the
1102 categories of „Proved‟ and „Probable.‟ Categories must not be reported in a
1103 combined form unless detailsforeachofthecategoriesarealsoprovided.
1104
1105 MineralReservesmust not bepresented in terms of containedmetal or mineral
1106 content unless corresponding tonnage and grade figures are also
1107 presented.Mineral Reserves should not be aggregated with Mineral Resources.
1108
1109 Public Reporting of tonnage and grade outside the categories covered by the
1110 Code is not permitted unless the situation is covered by Clause 19, and then
1111 only in strict accordance with the requirements of that Clause.
1112
1113 Estimates of tonnage and grade outside of the categories covered by the
1114 Code may be useful for a company in its internal calculations and evaluation
1115 processes, but their inclusion in Public Reports could cause confusion, thus,
1116 is not permitted.
1117
1118 Mineral Reserves may incorporate material (dilution) which is not part of the
1119 original Mineral Resource. It is essential that this fundamental difference
1120 between Mineral Resources and Mineral Reserves is considered and caution
1121 exercised if attempting to draw conclusions from a comparison of the two.
1122
1123 When revised MineralReserve and Mineral Resource statements are publicly
1124 reported, theCompany must discuss any material changes from the previous
1125 estimate, and supply sufficient comment to enable the basis for significant
1126 changes to be understood by the reader.
1127
1128 37. In a Public Report of a Mineral Reserve for a project material to the company,
1129 when reportingfor the first time, or when those estimates have materially
1130 changed from when they were last reported, a brief summary of the information
1131 in relevant sections of Table 1 must be provided.Alternatively, if a particular
1132 criterion is not relevant or material, a disclosure that it is not relevant or material
1133 and a brief explanation of why this is the case must be provided.
1134
1135 For a significant project, when Mineral Reserve estimates are first publicly
1136 reported or when a material change occurs (including classification change),
1137 there is an increased need for transparent discussion of the basis for the new
1138 Mineral Reserve estimate in orderthat investors are appropriately informed of the
1139 basis for the changes. As noted in Clauses 5 and 6, the benchmark of Materiality
1140 is that which an investor or their advisers would reasonably expect to see explicit
1141 comment on from the ACP, thus the reporting of all criteria in Table 1 on an „if
1142 not, why not‟ basis is required.
1143
1144 The Code specifies reporting against relevant sections of Table 1 in this
1145 Clause. This may be satisfied by reporting against Section 6 on
1146 thepresumption that matters related to Sections 3, 4 and 5 will already have
1147 been included in a still current Public Report and this Report can be
1148 referenced. If this is not the case, then other sections are also relevant and
23
1149 should be included in the Public Report.
1150
1151 The technical summary based against Table 1 criteria should be presented
1152 as an appendix to the Public Report.
1153
1154 Where there are yet unresolved issues potentially impacting the reliability of,
1155 or confidence in a statement of Mineral Reserves (for example, limited
1156 geotechnical information, complex orebody metallurgy, uncertainty in the
1157 permitting process, etc.), those unresolved issues should also be reported.
1158
1159 If there is doubt about what should be reported, it is better to err on the side
1160 of providing too much information rather than too little.
1161 Uncertainties in any of the criteria listed in Table 1 that could lead to under-
1162 or over- statement of Mineral Reserves should be disclosed.
1163
1164 Mineral Reserve estimates are sometimes reported after adjustment from
1165 reconciliation with production data. Such adjustments should be clearly
1166 stated in a Public Report of Mineral Reserves and the nature of the
1167 adjustment or modification described.
1168
1169 38. In situations where estimates for both Mineral Resources and Mineral Reserves
1170 are reported, a statement must be included in the report which clearly indicates
1171 whether the Mineral Resources are inclusive of, or additional to, the
1172 MineralReserves.
1173
1174 Mineral Reserve estimates must not be aggregated with Mineral Resource
1175 estimates to report a single combined figure.
1176
1177 In some situations, there are reasons for reporting Mineral Resources
1178 inclusive of MineralReserves, and in other situations for reporting Mineral
1179 Resources additional to Mineral Reserves. It must be made clear which form
1180 of reporting has been adopted. Appropriate forms of clarifying statements
1181 may be:
1182
1183  „The Measured and Indicated Mineral Resources are inclusive of those
1184 Mineral Resources modified to produce the Mineral Reserves.‟ Or
1185
1186  The Measured and Indicated Mineral Resources are additional to the
1187 Mineral Reserves.‟
1188
1189 In the former case, if any Measured and Indicated Mineral Resources have
1190 not been modified to produce Mineral Reserves for economic or other
1191 reasons, the relevant details of these unmodified Mineral Resources should
1192 be included in the report. This is to assist the reader of the report in making a
1193 judgment on the likelihood of the unmodified Measured and Indicated Mineral
1194 Resources eventually being converted to MineralReserves.
1195
1196 Inferred Mineral Resources are by definition always additional to Mineral
1197 Reservesexcept where included as dilution in the Mineral Reserves.
1198
1199 For reasons stated in the guidelines to Clause 36 and in this paragraph, the
1200 reported Mineral Reserve figures must not be aggregated with the reported
1201 Mineral Resource figures. The resulting total is misleading and is capable of
1202 being misunderstood or of being misused to give a false impression of a
1203 company‟s prospects.
1204
24
1205 39. If re-evaluation indicates that the Mineral Reserves are no longer viable, the
1206 Mineral Reserves must be reclassified as Mineral Resources or removed from
1207 Mineral Resource/Mineral Reserve statements.
1208
1209 It is not intended that re-classification from Mineral Reserves to Mineral
1210 Resources or vice versa should be applied as a result of changes expected
1211 to be of a short term or temporary nature, or where company management
1212 has made a deliberate decision to operate on a non-economic basis.
1213 Examples of such situations might be commodity price fluctuations expected
1214 to be of short duration, mine emergency of a non-permanent nature,
1215 transport strike,etc.
1216
1217 40. It is accepted that a proportion of Inferred Mineral Resources may be inside the
1218 bounds of the mine design and the Life-of-Mine Plan (LoMP). Inferred Mineral
1219 Resources should not be considered in the assessment of economic viability,
1220 rendering its presence inside the mine design and the LoMP as purely incidental
1221 and without influence on the declaration of Mineral Reserves.
1222
1223 A mine design and a LoMP must be economically viable without inclusion of
1224 Inferred Mineral Resources in the estimation of Mineral Reserves.
1225
1226
1227 X. Technical Studies
1228
1229 41. Public Reports may include, but not belimited to, information included in or
1230 supported by:
1231
1232  Scoping Study
1233  Pre-Feasibility Study
1234  Feasibility Study
1235
1236 Scoping Study has been included because of the common usage of the term
1237 in Public Reports. However, attention is drawn to the requirement for a Pre-
1238 Feasibility Study ora Feasibility Study to have been completed for the Public
1239 Reporting of a Mineral Reserve in Clause 31. A Mineral Reserve must not be
1240 reported based on the completion of a Scoping Study.
1241
1242 The guidelines and the checklist on the requirements for a Scoping, Pre-
1243 Feasibility and a Feasibility Study are included in Table 2and Section 5 in
1244 Table 1, respectively.
1245
1246 42. A Scoping Study is an order-of-magnitude technical and economic
1247 study of the potential viability of Mineral Resources that includes
1248 appropriate assessments of realistically assumed Modifying Factors
1249 together with any other relevant operational factors that are necessary
1250 to demonstrate at the time of reporting that progress to a Pre-Feasibility
1251 Study can be reasonably justified.
1252
1253 A Scoping Study must not be used as the basis for estimation of Mineral
1254 Reserves.
1255
1256 If the outcome of a Scoping Study is partially supported by Inferred Mineral
1257 Resources and/or an Exploration Target, the Public Report must state both
1258 the proportion and relative sequencing of the Inferred Mineral Resources
1259 and/or Exploration Target within the Scoping Study.

25
1260
1261 For a Scoping Study, the company must include a cautionary statement in
1262 the same paragraph as, or immediately following, the disclosure of the
1263 Scoping Study.
1264
1265 An example cautionary statement follows:
1266
1267 'The Scoping Study referred to in this report is based on low-level
1268 technical and economic assessments, and is insufficient to support
1269 estimation of Mineral Reserves or to provide assurance of an economic
1270 development case at this stage, or to provide certainty that the
1271 conclusions of the Scoping Study will be realized;‟
1272
1273 In discussing „reasonable prospects for eventual economic extraction‟ in
1274 Clause 22, the Code requires an assessment (albeit preliminary) in
1275 respect of all matters likely to influence the prospect of economic
1276 extraction including the approximate Modifying Factors by the ACP. While
1277 a Scoping Study may provide the basis for that assessment, the Code
1278 does not require a Scoping Study to have been completed to report a
1279 Mineral Resource.
1280
1281 Scoping Studies are commonly the first economic evaluation of a project
1282 undertaken and may be based on a combination of directly gathered
1283 project data together with assumptions borrowed from similar deposits or
1284 operations to the case envisage. They are also commonly used internally
1285 by companies for comparative and planning purposes. Reporting the
1286 general results of a Scoping Study needs to be undertaken with care to
1287 ensure there is no implication that Mineral Reserves have been
1288 established or that economic development is assured. In this regard, it
1289 may be appropriate to indicate the Mineral Resource inputs to the
1290 Scoping Study and the processes applied, but it is not appropriate to
1291 report the diluted tonnage and grade as if they were Mineral Reserves.
1292
1293 While initial mining and processing cases may have been developed
1294 during a Scoping Study, it must not be used to allow a Mineral Reserve to
1295 be developed.
1296
1297 43. A Pre-Feasibility Study is a comprehensive study of a range of options
1298 for the technical and economic viability of a mineral project that has
1299 advanced to a stage where a preferred mining method, in the case of
1300 underground mining, or the pit configuration, in the case of an open pit,
1301 is established and an effective method of mineral processing is
1302 determined. It includes a financial analysis based on reasonable
1303 assumptions on the Modifying Factors and the evaluation of any other
1304 relevant factors which are sufficient for an ACP, acting reasonably, to
1305 determine if all or part of the Mineral Resource may be converted to a
1306 Mineral Reserve at the time of reporting. A Pre-Feasibility Study has a
1307 lower confidence level than a Feasibility Study.
1308
1309 As required in Clause 31, formal assessment of all Modifying Factors is
1310 required in order to determine how much available Measured and
1311 Indicated Mineral Resources can be converted to Mineral Reserves.
1312
1313 A Pre-Feasibility Studywill consider the application and description of all
1314 Modifying Factors (as outlined in Table 1, Section 6) to demonstrate
1315 economic viability and to support a Mineral Reserve in a Public Report.
26
1316 The Pre-Feasibility Study will identify the preferred mining, processing,
1317 and infrastructure requirements and capacities, but will not yet have
1318 finalized these matters. Detailed assessments of environmental and
1319 socio-economic impacts and requirements will also be well advanced.
1320 The Pre-Feasibility Study will highlight areas that require further
1321 refinement during the Feasibility Study stage.
1322
1323 44. A Feasibility Study is a comprehensive technical and economic study of
1324 the selected development option for a mineral project that includes
1325 appropriately detailed assessment of applicable Modifying Factors
1326 together with any other relevant operational factors and detailed
1327 financial analysis that are necessary to demonstrate at the time of
1328 reporting that extraction is reasonably justified (economically
1329 mineable). The results of the study may reasonably serve as the basis
1330 for a final decision by a proponent or financial institution to proceed
1331 with, or finance, the development of the project. The confidence level of
1332 the study will be higher than that of a Pre-Feasibility Study.
1333
1334 The Code does not require that a Feasibility Study has been undertaken to
1335 convert Mineral Resources to Mineral Reserves, but it does require that at
1336 least a Pre-Feasibility Study will have been carried out that will have
1337 determined a mine plan that is technically achievable and economically
1338 viable, and that material Modifying Factors have been considered.
1339
1340 Terms such as „Bankable Feasibility Study‟ and “Definitive Feasibility
1341 Study” are noted as being equivalent to a Feasibility Study as defined in
1342 this Clause.
1343
1344 A Feasibility Study has a higher level of confidence than a Pre-Feasibility
1345 Study and would normally contain mining, infrastructure and process
1346 designs completed with sufficient rigor to serve as the basis for an
1347 investment or to support project financing. Social,environmental, and
1348 governmental approvals, permits and agreements will be in place, or will
1349 be approaching finalization within the expected development timeframe.
1350 The Feasibility Study will contain the application and description of all
1351 Modifying Factors (as outlined in Table 1, Section 6) in a more detailed
1352 form than in the Pre-Feasibility Study,and may address implementation
1353 issues such as detailed mining schedules, construction ramp-up, and
1354 project execution plans.
1355
1356
1357 XI. Reporting of Metal Equivalents
1358
1359 45. The reporting of Exploration Results, Mineral Resources or Mineral Reserves
1360 for polymetallic deposits in terms of metal equivalents (a single equivalent
1361 grade of one major metal) must show details of all material factors
1362 contributing to the net value derived from each constituent.
1363
1364 The following minimum information must accompany any Public Report that
1365 includes reference to metal equivalents, in order to conform to the principles
1366 of Transparency, Materialityaa and Competence, as set out in Clause 5:
1367
1368  individual grades for all metals included in the metal equivalent
1369 calculation,
1370  assumed commodity prices for all metals. The prices used for calculating

27
1371 the metal equivalent should be stated and the basis on which these have
1372 been chosen should be explainedHowever, where the actual prices used
1373 are commercially sensitive, sufficient information must be disclosed,
1374 perhaps in narrative rather than numerical form, for investors to
1375 understand the methodology used to determine these prices,
1376  assumed metallurgical recoveries for all metals and discussion of the
1377 basis on which the assumed recoveries are derived (metallurgical test
1378 work, detailed mineralogy, similar deposits, etc.),
1379  A clear statement that it is the ACP‟s opinion that all the elements
1380 included in the metal equivalents calculation have a reasonable potential
1381 to be recovered and sold, and
1382  the calculation formula used.
1383
1384 In most circumstances, the metal chosen for reporting on an equivalent basis
1385 should be the one thatcontributes most to the metal equivalent calculation. If
1386 this is not the case, a clear explanation of the logic of choosing another metal
1387 must be included in the report.
1388
1389 Estimates of metallurgicalrecoveries for each metal must be used to calculate
1390 meaningful metal equivalents.
1391
1392 Reporting on the basis of metal equivalents is not appropriate if metallurgical
1393 recovery information is not available or cannot be estimated with reasonable
1394 confidence.
1395
1396 For many projects at the Exploration Results stage, metallurgical recovery
1397 information may not be available or cannot be estimated with reasonable
1398 confidence. In such cases, reporting of metal equivalents may be
1399 misleading.
1400
1401
1402 XII. Reporting of In Situ or In Ground Valuations
1403
1404 46. The publication of in situ or „in ground‟ financial valuations breaches the
1405 principles of the Code (as set out in Clause 5) as the use of these terms is
1406 not transparent and lacks material information. It is also contrary to the intent
1407 of Clause 30 of the Code. Such in situ or in ground financial valuations must
1408 not be reported by companies in relation to Exploration Results, Mineral
1409 Resources or deposit size.
1410
1411 The use of such financial valuations has little or no relationship to
1412 economic viability, value or potential returns to investors.
1413
1414 These financial valuations can imply economic viability without the
1415 apparent consideration of the application of the Modifying Factors (Clause
1416 14 and Clauses31 to 40), in particular, the mining, processing,
1417 metallurgical, infrastructure, economic, marketing, legal, environmental,
1418 social, and governmental factors.
1419
1420 In determining project viability, it is necessary to include all reasonable
1421 Modifying Factors (Clauses 31 to 40) to determine the economic value
1422 that can be extracted from the mineralization.
1423
1424 Many deposits with large in ground values are never developed because
1425 they have a negative Net Present Value when all reasonable Modifying

28
1426 Factors are considered.
1427
1428 By reporting such financial valuations as a component of Exploration
1429 Results or when evaluating deposits that commonly include large portions
1430 of Inferred Mineral Resources, companies are not necessarily
1431 representing the economic value that can be extracted from the
1432 mineralization,
1433
1434
1435 XIII. Commodity Pricing and Marketing
1436
1437 47. Commodity prices and sales volume expectations used for the determination
1438 of Mineral Resources and Mineral Reserves must be based on forward-
1439 looking reasonableestimates reflecting the company‟s short- and long-term
1440 expectations as supported by available evidence, which may include
1441 consensus forecasts, three-year trailing averages, sales contracts, or other
1442 price analyses (see Clauses 50 and 51below for cases where public
1443 disclosure is not appropriate).
1444
1445 The basis for the selected prices and sales volumes should be supported
1446 by appropriate documentation.
1447
1448 The ACP should ascertain that these prices and volumes are consistent
1449 with sales agreements and marketing determinations or forecasts.
1450
1451 Under certain circumstances, it may be appropriate to use different prices
1452 for estimating Mineral Resources and Mineral Reserves.
1453
1454 For current mining operations, the price and volume profile used for
1455 Mineral Resources and Mineral Reserves estimation may reflect current
1456 market conditions for short-term forecasts, while trending with time
1457 upward or downward toward the long-term price and volume estimates
1458 based on the company‟s expectations.
1459
1460 For Mineral Reserves that are expected to be produced beyond the
1461 validity of short-term forecasts, the company should use long-term price
1462 and volume expectations.
1463
1464 For Mineral Reserves for which production would extend beyond the
1465 quantities specified in existing contracts, reasonable and supportable
1466 assumptions should be made to determine the likelihood of contract
1467 renewal and prices applicable for the estimation and reporting of these
1468 Mineral Resources and Mineral Reserves.
1469
1470 48. To demonstrate the economic feasibility of a Mineral Reserve, the estimated
1471 prices, combined with Modifying Factors, must be applied to only Measured
1472 and Indicated Mineral Resources.
1473
1474 Mineral Reserves are the economically mineable part of a Measured or
1475 Indicated Mineral Resource; hence, appropriate assessments should
1476 demonstrate at the time of reporting that extraction is reasonably justified.
1477 This requires that assumptions are made concerning the price of the
1478 commodity or product that will be sold when the mine is in production.
1479
1480 Mineral Reserves are estimated and published to supply information

29
1481 concerning the value of the deposit and the risk which may be associated
1482 with its development.
1483
1484 Mineral Reserves are used by a company, in conjunction with Mineral
1485 Resources, for short-term, tactical, and strategic planning. They play a
1486 critical role in accounting, including impairment testing, fair value
1487 accounting, calculation of depreciation, depletion, and accumulated
1488 retirement obligation provision rates.
1489
1490 To supply information consistent with the company‟s plans and financial
1491 reporting, commodity prices used for the determination of Mineral
1492 Reserves should be based on forward-looking estimates reflecting the
1493 company‟s reasonable expectations as supported by all available
1494 evidence.
1495
1496 Most commodities, whether sold using publicly quoted prices (e.g., base
1497 metals and precious metals) or under long-term contract (e.g., coal and
1498 iron ore), experience long-term price cycles. Price expectations should
1499 reflect current prices as well as long-term trends. Overly optimistic or
1500 pessimistic price and volumes expectations could result in significant
1501 over- or underestimation of Mineral Reserves. It is the responsibility of the
1502 company and the ACP to determine whether the prices used for Mineral
1503 Reserve estimation are reasonable and supportable, given all available
1504 information.
1505
1506 During periods of low prices, a company may choose to temporarily
1507 curtail operations and conserve the mineral asset until prices recover.
1508 When such actions are taken, Public Reports should be updated to reflect
1509 the new information. In such circumstances, previously published Mineral
1510 Reserves may not have to be reclassified, provided that, in the opinion of
1511 the company and the ACP, higher future prices can be reasonably and
1512 supportably assumed, and it can reasonably be expected that operations
1513 will resume.
1514
1515 The documentation supporting the company‟s expectations should
1516 include comparison of prices with historical and current prices and
1517 forward curves, contracts and market considerations, currency exchange
1518 rates where applicable, third party sources, and supplemental
1519 information.
1520
1521 49. Disclosure in Public Reports of the commodity prices and sometimes also the
1522 costs (including other Modifying Factors) used for Mineral Reserves
1523 estimation is generally required.
1524
1525 50. In the absence of applicable securities or other laws to disclose prices, there
1526 may be cases, such as when a product is sold under long-term contract, the
1527 terms of which are confidential, where there are valid commercial reasons for
1528 non-disclosure of prices.
1529
1530 51. Similarly, where disclosure of the long-term price and/or cost assumptions
1531 used in the estimation would be detrimental to the company‟s business, such
1532 as when bidding for sales contracts or property acquisitions or negotiating
1533 agreements with third parties, non-disclosure may be justifiable.
1534
1535

30
1536 XIV. Permitting and Legal Requirements
1537
1538 52. For the declaration of Mineral Reserves, there must be no known material
1539 obstacles to mining, arising from the failure to obtain relevant permits.
1540
1541 53. There must be a reasonable expectation by the ACP, often through reliance
1542 on legal and permitting experts, that all permits, ancillary rights (including
1543 water or other property rights) and authorizations required for mining, and to
1544 the extent applicable, processing and marketing, can be obtained in a timely
1545 fashion, and maintained for ongoing operations.
1546
1547 54. The company must complete a review of all legal and permitting requirements
1548 and document the findings. Local environmental laws and processes must be
1549 taken into account.
1550
1551 55. To demonstrate reasonable expectation that all permits, ancillary rights, and
1552 authorizations can be obtained, the company must show understanding of the
1553 procedures to be followed to obtain such permits, ancillary rights, and
1554 authorizations. Demonstrating earlier success in obtaining the necessary
1555 permits can be used to document the likelihood of future success.
1556
1557 56. If permits are required, but there is no defined procedure to obtain such
1558 permits, reasonable expectation of success may be difficult to support.
1559 Information that materially increases or decreases the risk that the necessary
1560 legal rights or permits will be obtained must be disclosed.
1561
1562 57. It is recognized that the legal and permitting environment may change over
1563 time and that such changescould have an impact on Mineral Reserve
1564 estimation. If it is determined that obstacles havearisen or have
1565 beeneliminated, the Mineral Reserve estimates must be adjusted accordingly.
1566
1567 It is recognized that some permits cannot be obtained until after a Mineral
1568 Reserve has been declared. There might be sound business reasons why
1569 obtaining some permits should be postponed.
1570
1571 It is also recognized that waiting for all permits to be on hand could result
1572 in critical information not being released to the investors in a timely
1573 fashion, and therefore it is recommended that disclosure of material
1574 information occur prior to obtaining permits as appropriate.
1575
1576 Documentation should include a brief description of the title, claim, lease
1577 or option under which the company has the right to hold or operate the
1578 property, indicating any conditions that the company must meet to obtain
1579 or retain the property.
1580
1581 If held by leases or options, the expiry dates of such leases or options
1582 should be stated. If extension of leases or options will be needed to mine
1583 the Mineral Reserves, there should be reasonable expectation that such
1584 extension will be granted.
1585
1586 58. Royalty terms and clawback rights of former claim/land holders must be
1587 disclosed.
1588
1589 59. Information relating to the review of legal and permitting issues must be
1590 documented either in full or by reference. The information may remain
31
1591 confidential to the company. However, when required, it may be released to
1592 regulators or auditors on a confidential basis.
1593
1594
1595 XV. Sustainability Considerations
1596
1597 60. Public Reports should discuss environmental, social, and health and safety
1598 impacts that are expected during development, operation and after closure.
1599 These impacts will affect employees, contractors, neighboring communities,
1600 and customers.
1601
1602 Historical performance by the company should be used to engage all
1603 stakeholders and to plan for continued benefits for all parties concerned.
1604
1605 In the minerals industry, health and safety have traditionally received the
1606 most attention, with incident statistics reflecting these improvements.
1607
1608 Sustainability can refer to three principal themes: the ability of
1609 theenvironment to maintain itself with minimum impact to the local flora
1610 and fauna, the ability of the surrounding community to continue its
1611 traditional economic and cultural activities, and the ability of newly-
1612 created economic inputs to continue beyond the mine life.
1613
1614 Social issues and the social license to operate (SLO) are a measure of
1615 the communication transparency and level of trust with communities and
1616 society at large. Programs to create positive impacts on theenvironment,
1617 safety, and sustainability all contribute to winning the trust needed for the
1618 SLO.
1619
1620 The ACP should ensure the report discusses reasonably available
1621 information on environmental permitting and social or community factors
1622 related to the project.
1623
1624 The discussions should include, where relevant:
1625
1626  a summary of the results of any environmental studies and a
1627 discussion of any known environmental issues that could materially
1628 impact the company‟s ability to extract the Mineral Resources or
1629 Mineral Reserves,
1630  requirements and plans for waste and tailings disposal, site
1631 monitoring, and water management both during operations and post-
1632 mine closure,
1633  project permitting requirements, the status of any permit applications,
1634 and any known requirements to post-performance or reclamation
1635 bonds,
1636  a discussion of any potential social or community-related
1637 requirements and plans for the project and the status of any
1638 negotiations or agreements with local communities,
1639  a discussion of mine closure (remediation and reclamation)
1640 requirements and costs,
1641  special capital or operating requirements for handling hazardous
1642 minerals or reagents, as well as other health and industrial hygiene
1643 risks,
1644  any savings in energy usage or other reduction of consumption
1645 reflecting directly in the economic outcome of the project, and
32
1646  Mineral Reserve estimates should acknowledge the likely
1647 environmental and social impact of development and ensure that
1648 appropriate allowances are made for mitigation and remediation.
1649
1650
1651 XVI. Transitory Provisions
1652
1653 61. To provide for a smooth transition from the PMRC 2007Edition, the full
1654 implementation of the PMRC 2020Editiontakes effect two (2) years from the
1655 date that the SecuritiesandExchange Commission (SEC) approves this
1656 version of the Code.
1657
1658 62. Companies can opt to have their disclosures fully compliant with PMRC 2020
1659 Editioneven before the full implementation of the Code. However, the use of
1660 the standards set by both PMRC 2007 and PMRC 2020 editions in the
1661 samedisclosure is not allowed.

33
1662
1663 Table 1-Checklist of Assessment and Reporting Criteria
1664
1665 Table 1 is a checklist or reference for use bythose preparing Public Reports on
1666 Exploration Results, Mineral Resources, and Mineral Reserves.
1667
1668 In the contextof complying with the Principles of the Code, comment on the relevant
1669 sections of Table 1 should be provided on an „if not, why not‟ basis within the ACP‟s
1670 documentation and must be provided where required according to the specific
1671 requirements of Clauses 21, 29 and 37 for significant projects in the Public Report. This
1672 is to ensure that it is clear to the investor whether items have been considered and
1673 deemed of low consequence or have yet to be addressed or resolved.
1674
1675 As always, relevance and Materiality are overriding principles that determine what
1676 information should be publicly reported and the ACP must provide sufficient comment on
1677 all matters that might materially affect a reader‟s understanding or interpretation of the
1678 results or estimates being reported. This is particularly important where inadequate or
1679 uncertain data affect the reliability of, or confidence in, a statement of Exploration
1680 Results or an estimate of Mineral Resources or Mineral Reserves.
1681
1682 The order and grouping of criteria in Table 1 reflect the normal systematic approach to
1683 exploration and estimation of Mineral Resources and Mineral Reserves. The tableshould
1684 be approached from left to right, and from top to bottom. In other words, criteria in the
1685 first column, Exploration Results, should be considered to apply also when reporting
1686 Mineral Resources and Mineral Reserves. Similarly, additional criteria in the Mineral
1687 Resources column apply also to Mineral Reservesreporting.
1688
1689 When compiling a Public Report dealing with coal; industrialminerals, cement feed
1690 materials, and construction materials; and dimension stone, ornamental and decorative
1691 stone;there are specific matters that must be considered. Appendices 7 to 9 of the Code
1692 address these specific commodities. Sections 10-12 of Table 1 include also items that
1693 may be specific to those commodities and therefore have been placed within Appendices
1694 7 to 9 where relevant.
1695
1696
1697

34
 TABLE 1 – CHECK LIST OF ASSESSMENT AND REPORTING CRITERIA

Exploration Results Mineral Resources Mineral Reserves

Introduction

Introduction General (i) The scope of workor terms of reference.

(ii) The Accredited Competent Person‟s relationship to the issuer of the Public Report, if any.

(iii) A statement for whom the Public Report was prepared; whether it was intended as a full or partial evaluation or other purpose, work conducted, effective date of Public Report, and remaining work.

(iv) Sources of information and data contained in the Public Report or used in its preparation, with citations if applicable, and a list of references.

(v) A title page and a table of contents that includes figures and tables.

An Executive Summary, which briefly summarizes important information in the Public Report, including property description and ownership, geology and mineralization, the status of exploration, development and
operations, Mineral Resource and/orMineral Reserve estimates, and the AccreditedCompetent Person's conclusions and recommendations.
(vi)
If Inferred Mineral Resources are used, a summary valuation with and if practical without inclusion of such Inferred Mineral Resources. The Executive Summary of sufficient detail to allow the reader to understand
the essentials of the project.

A declaration from the AccreditedCompetent Person, stating whether „the declaration has been made in terms of the guidelines of the PMRC2020 Edition.
(vii)
If a reporting code other than the PMRC having jurisdiction has been used, an explanation of the differences.

Diagrams, maps, plans, sections, and illustrations, which are dated, legible, and prepared at an appropriate scale to distinguish important features. Maps including a legend, author or information source,
(viii) coordinate system and datum, a scale in bar or grid form, and an arrow indicating north.
Reference to a location or index map and more detailed maps showing all important features described in the text, including all relevant cadastral and other infrastructure features.

(ix) The units of measure, currency and relevant exchange rates

(x) The details of the personal inspection on the property by each AccreditedCompetent Person or, if applicable, the reason why a personal inspection has not been completed.

If the AccreditedCompetent Person is relying on a report, opinion or statement of another expert who is not an AccreditedCompetent Person, then a disclosure of the date, title, and author of the report, opinion, or
(xi) statement, the qualifications of the other expert, the reason for the AccreditedCompetent Person to rely on the other expert, any significant risks, and any steps the AccreditedCompetent Person took to verify the
information provided.

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 Exploration Results Mineral Resources Mineral Reserves

Section 1: Project Outline

1.1 Location (i) Description of location and map (country, province, and closest town/city, coordinate systems and ranges, etc.).

Country Profile, with a description of information relating to the project host country that is pertinent to the project, including relevant applicable legislation, environmental and social context etc. An assessment, at
(ii)
a high level, of relevant technical, environmental, social, economic, political, and other key risks.

Topo-cadastral map in sufficient detail to support the assessment Detailed topo-cadastral map, with applicable aerial surveys
(iii) A general topo-cadastral map. of eventual economics. checked with ground controls and surveys, particularly in areas
A statement of known associated climatic risks. of rugged terrain, dense vegetation or high altitude.

1.2 Property (i) Brief description of the scope of project (i.e., whether in preliminary sampling, advanced exploration, Scoping, Pre-Feasibility, or Feasibility Study, Life-of-Mine plan for an ongoing mining operation or closure).
Description
Description of topography, elevation, drainage and vegetation, the means and ease of access to the property, the proximity of the property to a population center, and the nature of transport, the climate, known
associated climatic and seismic risks and the length of the operating season and to the extent relevant to the mineral project, the sufficiency of surface rights for mining operations including the availability and
(ii)
sources of power, water, mining personnel, potential tailings storage areas, potential waste disposal areas, heap leach pad areas, and potential processing plant sites (noting any conditions that may affect
possible exploration/mining activities).

1.3 Adjacent Details of relevant adjacent properties. The inclusion on the maps of the location and common mineralized structures in adjacent or nearby properties having an important bearing on the Public Report. Reference
(i)
properties to all information used from other sources.

1.4 History Historical background to the project and adjacent areas concerned, including known results of previous exploration and mining activities (type, amount, quantity, and development work), previous ownership and
(i)
changes thereto.

(ii) Previous successes or failures referred to transparently with reasons why the project should now be considered potentially economic.

(iii) Known or existing historical Mineral Resource estimates and performance statistics from actual production for past and current operations.

Known or existing historical Mineral Reserve estimates and

(iv) performance statistics to actual production for past and current
operations.

1.5 Legal A statement from the Accredited Competent Person on the confirmation of the legal tenure, including a description of:
Aspects and
Permitting (i) The nature of the issuer‟s rights (e.g., and/or mining) and the right to use the surface of the properties to which these rights relate. The date of expiry and other relevant details.

The principal terms and conditions of all existing agreements, and details of those still to be obtained, (such as, but not limited to, concessions, partnerships, joint ventures, access rights, leases, historical and
(ii)
cultural sites, wilderness or national park and environmental settings, royalties, consents, permission, permits or authorizations).

The security of the tenure held at the time of reporting or that is reasonably expected to be granted in the future along with any known impediments to obtaining the right to operate in the area.
(iii)
Details of applications that have been made. See Clause31for declaration of a Mineral Reserve.

(iv) A statement of any legal proceedings, for example: land claims that may have an influence on the rights to prospect or mine for minerals, or an appropriate negative statement.

A statement relating to governmental/statutory requirements and permits as may be required, have been applied for, approved or can be reasonably be expected to be obtained.
(v)
A review of risks that permits will not be received as expected and impact of delays to the project

1.6 Royalties (i) The royalties or streaming agreements that are payable in respect of each property.

1.7 Liabilities Any liabilities, including rehabilitation guarantees that are pertinent to the project.
(i)
A description of the rehabilitation liability, including, but not limited to, legislative requirements, assumptions and limitations.

36
 Exploration Results Mineral Resources Mineral Reserves

Section 2: Geological Setting, Deposit, Mineralization

2.1 Geological (i) The regional geology.

Setting,
Deposit, (ii) The project geology including deposit type, geological setting, and style of mineralization.
Mineralization
The geological model or concepts being applied in the investigation and on the basis of which the exploration program is planned, along with a description of the inferences and assumptions made from this
(iii)
model.

(iv) Data density, distribution and reliability and whether the quality and quantity of information are sufficient to support statements, made or inferred, concerning the deposit.

Significant minerals present in the deposit, their frequency, size and other characteristics, including a discussion of minor and gangue minerals where these will have an effect on the processing steps and the
(v)
variability of each important mineral within the deposit.

Significant mineralized zones encountered on the property, including a summary of the surrounding rock types, relevant geological controls, and the length, width, depth, and continuity of the mineralization,
(vi)
together with a description of the type, character, and distribution of the mineralization

(vii) The existence of reliable geological models and / or maps and cross sections that support interpretations.

37
 Exploration Results Mineral Resources Mineral Reserves

Section 3: Exploration and Drilling, Sampling Techniques and Data

3.1 Exploration Data acquisition or exploration techniques and the nature, level of detail, and confidence in the geological data used (i.e., geological observations, remote sensing results, stratigraphy, lithology, structure,
alteration, mineralization, hydrology, geophysical, geochemical, petrography, mineralogy, geochronology, bulk density, potential deleterious or contaminating substances, geotechnical and rock characteristics,
(i)
moisture content, bulk samples etc.).
Data sets with all relevant metadata, such as unique sample number, sample mass, collection date, spatial location etc.

The primary data elements (observation and measurements) used for the project and a description of the management and verification of these data or the database.
(ii) Description of the following relevant processes: acquisition (capture or transfer), validation, integration, control, storage, retrieval and backup processes.
If data are not stored digitally, presentation of hand-printed tables with well-organized data and information.

(iii) Acknowledgement and appraisal of data from other parties, and reference to all data and information used from other sources.

(iv) Distinction between data / information from the property under discussion and that derived from surrounding properties.

(v) The methods for collar and down-hole survey, techniques and expected accuracies of data as well as the grid system used.

(vi) Discussion on the sufficiency of the data spacing and distribution to establish the degree of geological and grade continuity appropriate for the estimation procedure(s) and classifications applied.

Presentation of representative models and / or maps and cross sections or other two or three-dimensional illustrations of results showing location of samples, accurate drill hole collar positions, down-hole
(vii)
surveys, exploration pits, underground workings, relevant geological data, etc.

The geometry of the mineralization with respect to the drill hole angle because of the importance of the relationships between mineralization widths and intercept lengths.
(viii)
Justification if only down-hole lengths are reported.

3.2 Drilling Type of drilling undertaken (e.g., core, reverse circulation, open-hole hammer, rotary air blast, auger, Banka, sonic, etc.) and details (e.g., core diameter, triple or standard tube, depth of diamond tails, face-
(i)
Techniques sampling bit or other type, whether core is oriented and if so, by what method, etc.).

(ii) The geological and geotechnical logging of core and chip samples relative to the level of detail required to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

(iii) The nature of logging (qualitative or quantitative) and the use of core photography (or costean, channel, etc.).

(iv) The total length and percentage of the relevant intersections logged.

(v) Results of any downhole surveys of the drill hole.

38
 Exploration Results Mineral Resources Mineral Reserves

Section 3: Exploration and Drilling, Sampling Techniques and Data (continued)

3.3 Sample A description of the nature and quality of sampling (e.g., cut channels, random chips, or specific specialized industry standard measurement tools appropriate to the minerals under investigation, such as down-
(i)
method, hole gamma sondes, or handheld or fixed-position XRF instruments, etc.), without these examples limiting the broad meaning of sampling.
collection,
capture and A description of the sampling processes, including sub-sampling stages to maximize representativity of samples, whether sample sizes are appropriate to the grain size of the material being sampled and any
(ii)
sample compositing.
storage
(iii) A description of each data set (e.g., geology, grade, density, quality, geo-metallurgical characteristics etc.), sample type, sample-size selection and collection methods.

The nature of the geometry of the mineralization with respect to the drill hole angle (if known).
The orientation of sampling to achieve unbiased sampling of possible structures, considering the deposit type.
(iv)
The intersection angle.
The down-hole lengths if the intersection angle is not known.

(v) A description of retention policy and storage of physical samples (e.g., core, sample reject, etc.)

A description of the method of recording and assessing core and chip sample recoveries and the results assessed, measures taken to maximize sample recovery and ensure representative nature of the samples,
(vi)
whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

The cutting of a drillcore sample, e.g. whether it was split or sawn and whether quarter, half or full core was submitted for analysis.
Non-core sampling, e.g., whether the sample was riffled, tube sampled, rotary split etc.; whether it was sampled wet or dry; the impact of water table or flow rates on recovery and introduction of sampling biases
(vii)
or contamination from above.
The impact of variable hole diameters, e.g. by the use of a caliper tool.

3.4 Sample The identity of the laboratory(s) and its accreditation status.
(i)
Preparation The steps taken by the Accredited Competent Person to ensure the results from a non-accredited laboratory are of an acceptable quality.
and Analysis
(ii) The analytical method, its nature, the quality and appropriateness of the assaying and laboratory processes and procedures used, and whether the technique is considered partial or total.

A description of the process and method used for sample preparation, sub-sampling and size reduction, and the likelihood of inadequate or non-representative samples (i.e., improper size reduction,
(iii)
contamination, screen sizes, granulometry, mass balance, etc.).

3.5 Sampling The governance of the sampling campaign and process, to ensure quality and representativity of samples and data, such as sample recovery, high grading, selective losses or contamination, core/hole diameter,
(i)
Governance internal and external QA/QC, and any other factors that may have resulted in or identified sample bias.

(ii) The measures taken to ensure sample security and the Chain of Custody.

(iii) The validation procedures used to ensure the integrity of the data, e.g., transcription, input or other errors, between its initial collection and its future use for modelling (e.g., geology, grade, bulkdensity, etc.).

(iv) The audit process and frequency (including dates of these audits) and disclose any material risks identified.

3.6 Quality The verification techniques (QA/QC) for field sampling process, e.g., the level of duplicates, blanks, reference material standards, process audits, analysis, etc.
Control/ Indirect methods of measurement (e.g., geophysical methods), with attention given to the confidence of interpretation.
(i)
Quality Reference to measures taken to ensure sample representativity and the appropriate calibration of any measurement tools or systems used.
Assurance QA/QC procedures used to check databases augmented with „new‟ data have not disturbed previous versions containing „old‟ data.

3.7 Bulk Density (i) The method of bulk density determination with reference to the frequency of measurements, the size, nature,and representativeness of the samples.

(ii) Preliminary estimates or basis of assumptions made for bulk density.

(iii) The representativity of bulk density samples.

(iv) The measurement of bulk density for bulk material using methods that adequately account for void spaces (vugs, porosity etc.), moisture, and differences between rock and alteration zones within the deposit.

39
 Exploration Results Mineral Resources Mineral Reserves

Section 3: Exploration and Drilling, Sampling Techniques and Data (continued)

3.8 Bulk (i) The location of individual samples (including map).

Sampling
and/or trial- (ii) The size of samples, spacing/density of samples recovered, and whether sample sizes and distribution are appropriate to the grain size of the material being sampled.
mining
(iii) The method of mining and treatment.

(iv) The degree to which the samples are representative of the various types and styles of mineralization and the mineral deposit as a whole.

40
 Exploration Results Mineral Resources Mineral Reserves

Section 4: Estimation and Reporting of Exploration Results and Mineral Resources

4.1 Geological (i) The nature, detail, and reliability of geological information with which lithological, structural, mineralogical, alteration or other geological, geotechnical, and geo-metallurgical characteristics were recorded.
model and
interpretation The geological model, construction technique,and assumptions that forms the basis for the Exploration Results or Mineral Resource estimate.
(ii)
The sufficiency of data density to assure continuity of mineralization and geology, and provision of an adequate basis for the estimation and classification procedures applied.

Any obvious geological, mining, metallurgical, processing,

environmental, social, infrastructural, legal, and economic factors
(iii)
that could have a significant effect on the prospects of any
possible Exploration Target or deposit.

(iv) Geological data that could materially influence the estimated quantity and quality of the Mineral Resource.

Consideration given to alternative interpretations or models and their possible effect (or potential risk), if any, on the Mineral Resource
(v)
estimate.

Geological discounts (e.g., magnitude, per reef, domain, etc.), applied in the model, whether applied to mineralized and / or unmineralized
(vi)
material (e.g., potholes, faults, dykes, etc.).

4.2 Estimation A detailed description of the estimation techniques and

and modeling (i) assumptions used to determine the grade and tonnage ranges for
techniques Exploration Targets.

The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values
(ii) (cutting or capping), compositing (including by length and/or density), domaining, sample spacing, estimation unit size (block size),
selective mining units, interpolation parameters, and maximum distance of extrapolation from data points.

(iii) Assumptions and justification of correlations made between variables.

(iv) Any relevant specialized computer program (software) used (with the version number) together with the parameters used.

The processes of checking and validation, the comparison of model information to sample data and use of reconciliation data, and whether
(v)
the Mineral Resource estimate takes account of such information.

(vi) The assumptions made regarding the estimation of any co-products, by-products or deleterious elements.

41
 Exploration Results Mineral Resources Mineral Reserves

Section 4: Estimation and Reporting of Exploration Results and Mineral Resources (continued)

4.3 Reasonable The geological parameters, including (but not be limited to) volume / tonnage, grade and value / quality estimates, cut-off grades, strip
(i)
prospects for ratios, upper- and lower- screen sizes.
eventual
economic The engineering parameters, including mining method, processing, geotechnical, hydrogeological and metallurgical parameters, including
extraction (ii) assumptions made to mitigate the effect of deleterious elements.
Dilution and mining recovery factors that might be applicable to convert in-situ Mineral Resources to Mineral Reserves.

(iii) The infrastructure including, but not limited to, power, water, and siteaccess.

(iv) The legal, governmental, permitting, andstatutory parameters.

(v) The environmental and social (or community) parameters.

(vi) The marketing parameters.

The economic assumptions and parameters, including, but not limited to, commodity prices, sales volumes, and potential capital and
(vii)
operating costs.

(viii) Material risks.

(ix) The parameters used to support the concept of „eventual‟ in the case of Mineral Resources.

4.4 Classification
(i) The criteria and methods used as the basis for the classification of the Mineral Resources into varying confidence categories.
Criteria

4.5 Discussion of Where appropriate, a statement of the relative accuracy and confidence level in the Mineral Resource or Mineral Reserve estimate using
relative an approach or procedure deemed appropriate by the Accredited Competent Person. For example, the application of statistical or
accuracy/ geostatistical procedures to quantify the relative accuracy of the Mineral Resource or Mineral Reserve within stated confidence limits, or, if
confidence such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence
of the estimate. The statement should specify whether it relates to global or local estimates, and, if local, state the relative tonnages, which
should be relevant to technical and economic evaluation. Documentation shall include assumptions made and the procedures used. These
statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

4.6 Reporting (i) Specific grades / qualities and widths.

The reporting of low- and high-grades and widths, together with

(ii) their spatial location to avoid misleading reporting of Exploration
Results.

A statement on whether grades are regional averages or if they

(iii) are selected individual samples taken from the property under
discussion.

The detail of open pit, underground, residue stockpile, remnants, tailings, and existing pillars or other sources in a Mineral Resource
(iv)
statement

A comparison with the previous Mineral Resource estimates, with an explanation of the reason for material changes.
(v)
A comment on any historic trends (e.g., global bias).

(vi) The basis for the estimate and if not 100%, the attributable percentage relevant to the entity commissioning the Public Report.

(vii) The basis of equivalent metal formulae.

42
 Exploration Results Mineral Resources Mineral Reserves

Section 5: Technical Studies

5.1 Introduction The level of study – Scoping, Pre-Feasibility, Feasibility or ongoing The level of study – Pre-Feasibility, Feasibility or ongoing Life-of-
(i)
Life-of-Mine Plan. MinePlan.
Not applicable to Exploration Results or Exploration Targets
A summary table of the Modifying Factors used to convert the
(ii)
Mineral Resource to Mineral Reserve.

5.2 Mining Assumptions regarding mining methods and parameters when

(i)
Design estimating Mineral Resources.

All Modifying Factors and assumptions made regarding mining

methods, minimum mining dimensions (or pit shell) and internal
and, if applicable, external planned and unplanned mining dilution
and mining losses used for the techno-economic study and
(ii)
signed-off, such as mining method, mine design criteria,
infrastructure, capacities, production schedule, mining efficiencies,
grade control, geotechnical and hydrological considerations,
closure plans, and personnel requirements.

(iii) Mineral Resource models used in the study.

The basis of (the adopted) cut-off grade(s) or quality parameters

(iv) The basis of the cut-off grade(s).
applied, including metal equivalents if relevant.
Not applicable to Exploration Results or Exploration Targets
(v) The mining method(s) to be used.

For open cut mines, a discussion of pit slopes, slope stability, and
(vi)
strip ratio.

For underground mines, a discussion of mining method,

(vii) geotechnical considerations, mine design characteristics, and
ventilation/cooling requirements.

Discussion of mining rate, equipment selected, grade control

methods, geotechnical and hydrogeological considerations, health
(viii)
and safety of the workforce, staffing requirements, dilution, and
recovery.

Optimization methods and software used in planning, including a

(ix)
discussion of the constraints.

43
 Exploration Results Mineral Resources Mineral Reserves

Section 5: Technical Studies(continued)

5.3 Metallurgical The source of the samples, the representativity of the potential
Testworks (i) feed and the techniques used to obtain the samples, laboratory
and metallurgical testing techniques.

The basis for assumptions or predictions regarding metallurgical

(ii) amenability and any preliminary mineralogical test work should
already be carried out.

The possible processing methods and any processing factors that

could have a material effect on the likelihood of eventual economic
The processing method(s), equipment, plant capacity, efficiencies,
(iii) extraction.
and personnel requirements.
The appropriateness of the processing methods to the style of
mineralization.
Not applicable to Exploration Results or Exploration Targets
The nature, amount and representativeness of metallurgical test
works undertaken and the recovery factors used.
(iv) A detailed flow sheet / diagram and a mass balance, especially for
multi-product operations from which the saleable materials are
priced for different chemical and physical characteristics.

Assumptions or allowances made for deleterious elements and

the existence of any bulk-sample or pilot-scale test work and the
(v)
degree to which such samples are representative of the ore body
as a whole.

Disclosure of whether metallurgical process is well-tested

(vi) technology or novel in nature and if novel, justification of its use in
Mineral Reserve estimation.

5.4 Infrastructure Comment regarding the current state of infrastructure or the ease
(i) with which the infrastructure can be provided or accessed and its
effect on reasonable prospects for eventual economic extraction

Demonstration that the necessary facilities have been allowed for

(which may include, but not be limited to, processing plant, tailings
Not applicable to Exploration Results or Exploration Targets dam, leaching facilities, waste dumps, road, pipeline, rail or port
(ii)
facilities, water and power supply, offices, housing, security,
resource sterilization testing, etc.). Provision of detailed maps
showing locations of facilities.

Statement showing that all necessary logistics have been

(iii)
considered.

44
 Exploration Results Mineral Resources Mineral Reserves

Section 5: Technical Studies (continued)

5.5 Environmental Confirmation that the company holding the tenement has addressed the host country environmental legal compliance requirements and
(i)
and social any mandatory and/or voluntary standards or guidelines to which the company subscribes.

Identification of the necessary permits that will be required and their status, and where not yet obtained, and confirmation that there is a
(ii)
reasonable basis to believe that all permits required for the project will be obtainedin a timely manner.

Not applicable to Exploration Results or Exploration Targets Any sensitive areas that may affect the project as well as any other environmental factors including Interested and Affected Party (I&AP)
(iii) and/or studies that could have a material effect on the likelihood of eventual economic extraction.
Possible means of mitigation.

(iv) Legislated social management programs that may be required and content and status of these.

(v) Material socio-economic and cultural impacts that need to be managed, and where appropriate the associated costs.

5.6 Market Valuable and potentially valuable product(s) including suitability of

(i)
Studies and products, co-products and by products to market.
Economic
criteria Product to be sold, customer specifications, testing, and
acceptance requirements.
Existence of a ready market for the product and whether contracts
(ii)
for the sale of the product are in place or expected to be readily
obtained.
Price and volume forecasts and the basis for the forecast.

Economic criteria used for the study, such as capital and

(iii) operating costs, exchange rates, revenue / price curves, royalties,
and streaming agreements, cut-off grades, reserve pay limits.

Summary description, source and confidence of method used to

Technical and economic factors likely to influence the prospect of estimate the commodity price/value profiles used for cut-off grade
Not applicable to Exploration Results or Exploration Targets
(iv) economic extraction. Refer to Clause22. calculation, economic analysis and project valuation, including
applicable taxes, inflation indices, discount rate and exchange
rates.

Assumptions made concerning production cost including

transportation, treatment, penalties, exchange rates, marketing,
(v)
and other costs. Allowances should be made for the content of
deleterious elements and the cost of penalties.

Allowances made for royalties and streaming agreements

(vi)
payable, both to Government and private entities.

Ownership, type, extent, and condition of plant and equipment

(vii)
that is significant to the existing operation(s).

(viii) Environmental, social, and labor costs.

5.7 Risk Analysis An assessment of technical, environmental, social, economic, political,and other key risks to the project.
(i) Not applicable to Exploration Results or Exploration Targets
Actions that will be taken to mitigate and/or manage the identified risks.

45
 Exploration Results Mineral Resources Mineral Reserves

Section 5: Technical Studies (continued)

5.8 Economic The basis on which reasonable prospects for eventual economic
The inclusion of any Inferred Mineral Resources in the Pre-
Analysis extraction has been determined.
(i) Feasibility and Feasibility Studies economic analysis.
Any material assumptions made in determining the „reasonable
The sensitivity to the inclusion of any Inferred MineralResources.
prospects for eventual economic extraction‟.

An economic analysis for the project that includes after tax Cash
Flow forecast on an annual basis using Mineral Reserves or
Mineral Resources OR an annual production schedule for the life
(ii)
of the project, which has been used at the relevant level Pre-
Not applicable to Exploration Results or Exploration Targets
Feasibility or Feasibility Study.
Accounting for royalties and streaming agreements.

A discussion of net present value (NPV), internal rate of return

(iii)
(IRR) and payback period of capital.

Sensitivity or other analysis using variants in commodity price,

(iv) grade, capital and operating costs, or other significant parameters,
as appropriate and discuss the impact of the results.

46
 Exploration Results Mineral Resources Mineral Reserves

Section 6: Estimation and Reporting of Mineral Reserves

6.1 Estimation (i) A description of the Mineral Resource estimate used as a basis for the conversion to a Mineral Reserve.
and modeling
techniques A comparison between the two possibilities, the one with inclusion
of Inferred Mineral Resources and the one without inclusion, in
(ii) such a way so as not to mislead the investors.
The quantum of the Inferred Mineral Resources included and the
sensitivity of the inclusion to the study.

A Mineral Reserve Statement in sufficient detail indicating if the

mining is open pit or underground plus the source and type of
(iii)
mineralization, domain or ore body, surface dumps, stockpiles and
all other sources.

Reconciliation of historic reliability and reconciliation of the

performance parameters, assumptions and modifying factors.
(Iv) A comparison with the previous Reserve quantity and qualities, if
available.
Where appropriate, any historic trends (e.g., global bias).

6.2 Classification Criteria and methods used as the basis for the classification of the
Criteria Mineral Reserves into varying confidence categories, which should
(i)
be based on the Mineral Resource category, and include
consideration of the confidence in all the Modifying Factors.

6.3 Reporting The proportion of Probable Mineral Reserves, which have been
(i) derived from Measured Mineral Resources (if any), including the
reason(s) therefore.

The inclusion in a Mineral Reserve statement of the detail of open

(ii) pit, underground, residue stockpile, remnants, tailings, and
existing pillars or other sources

A comparison with the previous Mineral Reserve estimates.

(iii)
Any historic trends (e.g., global bias).

The inclusion or exclusion of Mineral Resources in Mineral

(iv)
Reserves.

47
 Exploration Results Mineral Resources Mineral Reserves

Section 7: Audits and Reviews

7.1 Audits and Type of review/audit (e.g., independent, external), area (e.g., laboratory, drilling, data, environmental compliance etc.), date and name of the reviewer(s) together with their recognized professional
Reviews (i) qualifications.
The level of review/audit (desk-top, on-site comparison with standard procedures, or endorsement where auditor/reviewer has checked the work to the extent they stand behind it as if it were their own work).

The level and conclusions of relevant audits or reviews.

(ii)
Significant deficiencies and remedial actions required.

Exploration Results Mineral Resources Mineral Reserves

Section 8: Other Relevant information

8.1 Other
relevant (i) Other relevant and material information not discussed elsewhere.
information

Exploration Results Mineral Resources Mineral Reserves

Section 9: Accredited Competent Person

9.1 Qualification of
The full name of the Accredited Competent Person, profession, address, their PRC and Accredited Competent Person registration numbers and the name of the professional organization (AIPO or RPO),
AccreditedCompetent
(i) of which the Accredited Competent Person(s) is member.
Person(s) and key The relevant experience of the AccreditedCompetent Person(s) and other key technical staff who prepared and who are responsible for the Public Report.
technical staff

Relationship to the
(ii) The Accredited Competent Person‟s relationship to the issuer of the Public Report, if any.
issuer

(iii) The inclusion of the AccreditedCompetent Person‟s Consent Form(see Appendices4&5). Such Consent Form should include the date of sign-off and the effective date of the Public Report.

48
Table 2 - Guideline for Technical Studies

This guideline for Technical Studies is provided as a guide to the compilation of the various
studies relating to Mineral Resources and Mineral Reserves. It is designed to be read in
conjunction with Table 1.

Scoping Studies, Pre-Feasibility Studies, Feasibility Studies (and on-going Life-of-MinePlan

(LoMP) studies) analyze and assess the same geological, engineering, and economic factors
with increasing detail and precision. Therefore, the same criteria may be used as a
framework for reporting the results of all three studies.

If considered appropriate, the ACP may use the Association for the Advancement of Cost
Engineers (AACE) International Guide 47R-11 for the Mining and Mineral Processing
Industries (as amended) or other internationallyrecognized and accepted guidelines.

49
 TABLE 2 – GUIDELINE FOR TECHNICAL STUDIES

Item Scoping Study Pre-Feasibility Study Feasibility Study

Mineral Resource categories Mostly Inferred Mostly Indicated Measured and Indicated

MineralReserve categories None Mostly Probable Proved and Probable

Mining method and geotechnical

Conceptual Preliminary Options Detailed and Optimized
constraints

Mine design None or high-level conceptual Preliminary mine plan and schedule Detailed mine plan and schedule

Scheduling Annual approximation 3-monthly to annual Monthly for much of payback period

Mineral Processing/ Preliminary Options– bench/pilot scale Detailed and Optimized– optimization,
Metallurgical testwork– exploratory tests
Extractive Metallurgy tests testworks / pilot scale tests

Permitting - (water, power, mining, Authorities engaged, and applications

Required permitting listed Preliminary applications submitted
prospecting,andenvironmental) submitted

Contracts/agreements in place with local

Formal communication structures and
Social license to operate Initial contact with local communities communities and municipalities (local
engagement models in place
government)

Risk tolerance High Medium Low

50
 Item Scoping Study Pre-Feasibility Study Feasibility Study

Basis of Capital Estimate

Civil/structural, architectural,
piping/HVAC, electrical, instrumentation, Estimated from historic factors or
Detailed from engineering at 20% to 50%
construction labor, construction labor Order-of-magnitude based on historic data percentages and vendor quotes based on
complete, estimated material take-off
productivity, material volumes/amounts, or factoring. Engineering < 5% complete. material volumes. Engineering at 5-25%
quantities, and multiple vendor quotations
material/equipment, pricing,and complete.
infrastructure

Included in unit cost or as a percentage of Percentage of direct cost by area for Written quotes from contractor and
Contractors
total cost contractors; historic for subcontractors subcontractors

Engineering, procurement, and Key parameters, Percentage of detailed

Percentage of estimated construction cost Detailed estimate
construction management (EPCM) construction cost

Budgeted quotes on key parameters and

Factored, benchmark, database or historic
Owner’s costs estimates from experience, factored from Detailed estimate
estimate
similar project

Estimate prepared from detailed zero-

Environmental compliance / Closure Estimate from experience, factored from
Factored from historic estimate based budget for design engineering and
Cost similar project
specific permit requirements

Escalation Not considered Based on entity‟s current budget percentage Based on cost area with risk

Accuracy Range (Order of magnitude) ± 25-50% ± 15-25% ± 10-15%

Contingency Range (Allowance for items

10% - 15% (actual to be determined based
not specified in scope that will be ± 30% 15-30%
on risk analysis)
needed)

51
 Item Scoping Study Pre-Feasibility Study Feasibility Study

Basis of Operating Costs

Estimated from historic factors or

Order-of-magnitude based on historic data
Operating Costs percentages and vendor quotes based on Detailed estimate
or factoring.
material volumes.

Operating quantities General Specific estimates with some factoring Detailed estimates

Estimates for labor, power, and Letter quotes from

Unit costs Based on historic data for factoring
consumables, some factoring vendors; minimal factoring

Accuracy Range ± 25-50% 15% - 25% 10% - 15%

Contingency Range (Allowance for

+ 10% (actual to be determined based on
items not specified in scope that will be + 25% + 15%
risk analysis)
needed)

52
Appendix 1 – Standard Definitions

Mineral Clause 4 Page 4

Public Reports Clause 7 Page 5

Accredited Competent Person Clause 11 Page 8

Modifying Factors Clause 14 Page 10

Exploration Targets Clause 19 Page 12

Exploration Results Clause 20 Page 13

Mineral Resource Clause 22 Page 14

Inferred Mineral Resource Clause 23 Page 16

Indicated Mineral Resource Clause 24 Page 16

Measured Mineral Resource Clause 25 Page 17

Mineral Reserve Clause 31 Page 20

Probable Mineral Reserve Clause 32 Page 21

Proved Mineral Reserve Clause 33 Page 21

Scoping Study Clause 42 Page 25

Pre-Feasibility Study Clause 43 Page 26

Feasibility Study Clause 44 Page 26

53
Appendix 2 - Generic Terms and Equivalents
Throughout the Code, certain words are used in a general sense when a more specific
meaning might be attached to them by particular commodity groups within the industry. In
order to avoid unnecessary duplication, a non-exclusive list of generic terms is tabulated
below together with other terms that may be regarded as synonymous for the purposes of
this document.

Synonyms or
Generic Term Intended generalised meaning
similar terms

Competent Person
(Australasia)Qualified
Accredited Refer to the Code Clause 11 for the definition of
Person (Canada)
Competent Person an Accredited Competent Person.
Qualified Competent
Person (Chile)
The ACP in general makes value judgments when
Assumption Value judgments making assumptions regarding information not
fully supported by test work
A financial or other benefit that is given but is later
Clawback rights
taken back under defined circumstances.
The lowest grade, or quality, of mineralized
material that qualifies as economically mineable
Product and available in a given deposit. May be defined
Cut-off grade
specifications on the basis of economic evaluation, or on
physical or chemical attributes that define an
acceptable product.
Any physical or chemical measurement of the
Quality, Assay, characteristics of the material of interest in
Grade
Analysis (Value) samples or product. The units of measurement
should be stated when figures are reported.
A design and financial/economic study of an
existing operation in which appropriate
assessments have been made of existing
geological, mining, metallurgical, economic,
marketing, legal, environmental, social,
Life-of-MinePlan
governmental, engineering, operational, and all
(LoMP)
other Modifying Factors, which are considered in
sufficient detail (to Pre-Feasibility level) to
demonstrate that continued extraction is
reasonably justified. Refer to Table 2 for
guidance.
Physical and/or chemical separation of
Processing, constituents of interest from a larger mass of
Beneficiation, material. Methods employed to prepare a final
Metallurgy Concentration, marketable product from material as mined.
Leaching, Smelting Examples include screening, flotation, magnetic
and Refining separation, leaching, washing, roasting, gravity
concentration, smelting and refining, etc.
Mineralization Type of deposit, Any single mineral or combination of minerals

54
 Synonyms or
Generic Term Intended generalised meaning
similar terms

orebody, style of occurring in a mass, or deposit, of economic

mineralization interest. The term is intended to cover all forms in
which mineralization might occur, whether by
class of deposit, mode of occurrence, genesis or
composition.
„Mineral‟ is preferred under the Code but „Ore‟ is
generally accepted. Other descriptors can be
Mineral Reserves Ore Reserves
used to clarify the meaning, e.g., coal reserves,
limestone reserves etc.
All activities related to extraction of metals,
minerals and gemstones from the earth whether
Mining Quarrying surface or underground, and by any method (e.g.,
quarries, open cast, open cut, solution mining,
dredging etc.).
Represents the highest confidence category of
Proved Proven
Mineral Reserve estimate.
The percentage of material of initial interest that
Recovery Yield is extracted during mining and/or processing. A
measure of mining or processing efficiency.
An expression of the amount of material of
interest irrespective of the units of measurement
Tonnage Quantity, Volume
(which should be stated when figures are
reported).

55
Appendix 3 – List of Acronyms

ACP Accredited Competent Person

AIPO Accredited Integrated Professional Organization
CIM Canadian Institute of Mining, Metallurgy and Petroleum
COMP Chamber of Mines of the Philippines
CRIRSCO Committee for Mineral Reserves International Reporting Standards
DENR Department of Environment and Natural Resources
GSP Geological Society of the Philippines
JORC Joint Ore Reserves Committee (Australia)
Australasian Code for Reporting of Exploration Results, Mineral
JORC Code Resources and Ore Reserves
MGB Mines and Geosciences Bureau
NPV Net Present Value
NRO National Reporting Organization
PABC Philippines-Australia Business Council
PERC Pan-European Reserves and Resources Reporting Committee
PMEA Philippine Mining and Exploration Association
PMRC Philippine Mineral Reporting Code
PMRCC Philippine Mineral Reporting Code Committee
PSE The Philippine Stock Exchange, Inc.
PSEM Philippine Society of Mining Engineers
RPO Recognized Professional Organization
SAMCODES South African Mineral Codes
SEC Securities and Exchange Commission
SME Society for Mining, Metallurgy & Exploration (USA)
SMEP Society of Metallurgical Engineers of the Philippines

56
Appendix 4 - Compliance Statements
Appropriate forms of compliance statements should be as follows:

For Public Reports of initial or materially changed reports of Exploration Results, Mineral
Resources or Mineral Reserves or company annual reports:

 If the required information is in the report:

„The information in this report that relates to Exploration Results, Mineral Resources or
Mineral Reserves is based on information compiled by [insert name of Accredited
Competent Person (ACP)], an Accredited Competent Person who is a Member (or
Fellow) of thePhilippine Society of Mining Engineers orthe Geological Society of the
Philippines orthe Society of Metallurgical Engineers of the Philippines or a „Recognized
Professional Organization‟ (RPO) included in a list promulgated from time to time by the
Philippine Society of Mining Engineers, the Geological Society of the Philippines and the
Society of Metallurgical Engineers of the Philippines through the Philippine Mineral
Reporting Code Committee (PMRCC) [select as appropriate and insert the name of the
AIPO or RPO of which the ACP is a member and the ACP‟s grade of membership].‟

 If the required information is included in an attached statement:

„The information in the report to which this statement is attached that relates to
Exploration Results, Mineral Resources or Mineral Reserves is based on information
compiled by [insert name of ACP], an Accredited Competent Person who is a Member (or
Fellow) of [insert name of the Philippine Society of Mining Engineers or, the Geological
Society of the Philippines orthe Society of Metallurgical Engineers of the Philippinesor a
„Recognized Professional Organization‟ (RPO) included in a list promulgated from time to
time by the Philippine Society of Mining Engineers, the Geological Society of the
Philippines and the Society of Metallurgical Engineers of the Philippines through the
Philippine Mineral Reporting Code Committee(PMRCC)[select as appropriate and insert
the name of the AIPO or RPO of which the ACP is a member and the ACP‟s grade of
membership].‟

 If the ACP is a full-time employee of the company:

„[Insert name of ACP] is a full-time employee of the company.‟

 If the ACP is not a full-time employee of the company:

„[Insert name of ACP] is employed by [insert name of ACP‟s employer].‟

 The full nature of the relationship between the ACP and the reporting company must be
declared together with the ACP‟s details. This declaration must outline and clarify any
issue that could be perceived by investors as a conflict of interest.

 For all reports:

[Insert name of ACP] has a minimum of five years relevant experience in the style of
mineralization or type of deposit under consideration and to the activity being undertaken
to qualify as an Accredited Competent Person as defined in the 2020 Edition of the
„Philippine Mineral Reporting Code for Reporting Exploration Results, Mineral Resources
and Mineral Reserves‟. [Insert name of ACP] consents to the inclusion in the report of the
matters based on his (or her) information in the form and context in which it appears.

57
For any subsequent Public Report based on a previously issued Public Report that refers to
those Exploration Results or estimates of Mineral Resources or Mineral Reserves:

Where an ACP has previously issued the priorwritten consent to the inclusion of their findings
in a report, a company re-issuing that information to the Public whether in the form of a
presentation or a subsequent announcement must state the report name, date and reference
the location of the original source of the Public Report for public access.

 „The information is extracted from the report entitled [name report] created on [date] and
is available to view on [website name]. The company confirms that it is not aware of any
new information or data that materially affect the information included in the original
market announcement and, in the case of estimates of Mineral Resources or Mineral
Reserves, that all material assumptions and technical parameters underpinning the
estimates in the relevant announcement continue to apply and have not materially
changed. The company confirms that the form and context in which the Accredited
Competent Person‟s findings are presented have not been materially modified from the
original market announcement.‟

Companies should be aware that this exemption does not apply to subsequent reporting of
information in the company annual report.

58
Appendix 5 – Accredited Competent Person’s Consent Form
Companies reporting Exploration Results, Mineral Resources or Mineral Reserves are reminded
that while a Public Report is the responsibility of the company acting through its Board of
Directors, Clause 9 of the Code requires that any such report „must be based on, and fairly
reflect the information and supporting documentation prepared by anAccredited Competent
Person (ACP) or Persons. Clause 9 also requires that the „report shall be issued with the prior
written consent of the ACP(s) as to the form and context in which it appears‟.

In order to assist ACP(s) and companies to comply with these requirements, and to emphasize
the need for companies to obtain the prior written consent of each ACP for their material to be
included in the form and context in which it appears in the Public Report, the PSE, together with
PMRCC, have developed anACP‟s Consent Form that incorporates the requirements of the
PMRC2020 Edition.

The completion of a consent form, whether in the format provided or in an equivalent form, is
recommended as good practice and provides readily available evidence that the required prior
written consent has been obtained.

Having the consent form witnessed by a peer AIPO-registered member is considered leading
practice and is optional but strongly encouraged.

The ACP‟s Consent Form(s), or other evidence of the ACP‟s written consent, should be retained
by the company and the ACP(s) to ensure that the written consent can be promptly provided if
requested.

59
[Letterhead of Accredited Competent Person or Accredited Competent Person‟s employer]

Accredited Competent Person’s Consent Form

Pursuant to the requirements of the PSE Listing Rules and Clause 9 of the PMRC 2020 Edition
(“Consent Statement”)

Report name

[Insert name or heading of Report to be publicly released)] („Report‟)]

[Insert name of company releasing the Report]

[Insert name of deposit to which the Report refers]

If there is insufficient space, complete the following sheet and sign it in the same manner as this
original sheet.

___________________________________

[Date of Report]

60
 Consent Statement
I/We,

[Insert full name(s)]

Confirm that I am the Accredited Competent Person for the Report and:

 That I am a [insert profession, i.e., Geologist, Mining Engineer and/or Metallurgical Engineer]
residing at [insert address].

 I have read and understood the requirements of the 2020 Edition of the Philippine Mineral
Reporting Code for Reporting of Exploration Results, Mineral Resources and Mineral
Reserves(PMRC 2020 Edition).

 I am an Accredited Competent Person as defined by the PMRC 2020 Edition, having a

minimum of five years relevant experience in the style of mineralization or type of deposit
described in the Report and to the activity for which for which I am accepting responsibility.

 I am a Member (or Fellow) of the Philippine Society of Mining Engineersor the Geological
Society of the Philippines or the Society of Metallurgical Engineers of the Philippinesor a
„Recognized Professional Organization‟ (RPO) included in a list promulgated from time to
time by the Philippine Society of Mining Engineers, Geological Society of the Philippines, and
the Society of Metallurgical Engineers of the Philippinesthrough the Philippines Mineral
Reporting Code Committee (PMRCC).

 [State relationship of the ACP to the reporting company, e.g.,consultant, whether

independent or not independent, employee or holder of a corporate position, holder of
shares, options and/or warrants, holder of tenement rights, has landlord-lessee relationship
of land and/or infrastructure which has a bearing on the disclosure].

 I have reviewed the Report to which this Consent Statement applies.

I have disclosed to the reporting company the full nature of the relationship between myself and
the company, including any issues that could be perceived by investors as a conflict of interest.

I verify that the Report is based on, and fairly and accurately reflect in the form and context in
which it appears, the information in my supporting documentation relating to Exploration Results,
Mineral Resources and/or Mineral Reserves [select as appropriate].

61
 Consent
I consent to the release of the Report and this Consent Statement by the Board of Directors of:

[Insert reporting company name]

[Signature]________________________ __________________________________
Accredited Competent Person Date

_________________________________
AIPO / RPO Name of ACP PRC Registration No. / Valid Until [Date]
_________________________________
ACP Registration No. / Valid Until [Date]
_________________________________
Professional Tax Receipt No./ Date

[Signature]________________________
Peer Witness‟ Name (*Optional)
_________________________________
AIPO / RPO of Peer Witness PRC Registration No. / Valid Until [Date]
_________________________________
ACP Registration No. / Valid Until [Date]
_________________________________
Professional Tax Receipt No. / Date

62
Appendix 6 - Reporting of Mineralized Fill, Pillars, Low Grade
Mineralization, Stockpiles, Dumps and Tailings

A6-1 The Code applies to the reporting of all potentially economic mineralized material. This
can include mineralized fill, remnants, pillars, low grade mineralization, stockpiles,
dumps, and tailings (remnant materials) where there are reasonable prospects for
eventual economic extraction in the case of Mineral Resources, and where extraction is
reasonably justifiable in the case of Mineral Reserves. Unless otherwise stated, Clauses
1 to 60 of the Code (including Figure 1)apply.

A6-2 Table 1, as part of the Code, should be considered persuasive when reporting on
mineralized fill, remnants, pillars, low grade mineralization, stockpiles, dumps, and
tailings.

A6-3 Any mineralized material as described in this Appendix can be considered to be similar
to in situ mineralization for the purposes of reporting Mineral Resources and Mineral
Reserves. Judgments about the mineability of such mineralized material should be
made by ACP(s) with relevant experience.

A6-4 If there are no reasonable prospects for the eventual economic extraction of all or part of
the mineralized material as described in this Appendix, then this material cannot be
classified as either Mineral Resources or Mineral Reserves. If some portion of the
mineralized material is currently sub-economic, but there is a reasonable expectation
that it will become economic, then this material may be classified as a Mineral
Resource. If technical and economic studies to a minimum of a Pre-Feasibility
Studyhave demonstrated that economic extraction could reasonably be justified under
realistically assumed conditions, then the material may be classified as a
MineralReserve.

The above Clauses apply equally to low grade in situ mineralization, sometimes
referred to as „mineralized waste‟ or „marginal grade material‟, and often intended
for stockpiling and treatment towards the end of mine life. For clarity of
understanding, it is recommended that tonnage and grade estimates of such
material be itemized separately in Public Reports, although they may be
aggregated with total Mineral Resource and Mineral Reserve estimates.

Stockpiles are defined to include both surface and underground stockpiles,

including broken ore in stopes, and can include ore currently in the ore storage
system. Mineralized material in the course of being processed (including leaching),
if reported, should be reportedseparately.

63
Appendix 7 - Reporting of Coal Exploration Results, CoalResources,
and CoalReserves

A7-1 The Clauses in this Appendix address matters that relate specifically to the Public
Reporting of Coal Exploration Results, CoalResources, and CoalReserves. Unless
otherwise stated, Clauses1 to 60 of thePMRC2020 Edition(including Figure 1) apply.
Table 1, as part of the Code, should be considered persuasive when reporting on Coal
Resources andReserves.

For purposes of Public Reporting, the requirements for coal are generally similar to
those for other commodities with the replacement of terms such as „mineral‟ by
„coal‟ and „grade‟ by „quality‟.

Other industry guidelines on the estimation and reporting of Coal Resources and
Reserves may be useful but will under no circumstances override the provisions
and intention of the Code for PublicRreporting.

Because of its impact on planning and land use, governments may require
estimates ofcoal inventory that are not constrained by short- to medium-term
economicconsiderations. The PMRC does not cover such estimates. Refer also to
the guidelines in Clauses 7 and 22.

A7-2 The terms „Mineral Resource(s)‟ and „Mineral Reserve(s)‟, and the subdivisions of these
as defined above, apply also to coal reporting, but if preferred by the reporting company,
the terms „Coal Resource(s)‟ and „Coal Reserve(s)‟ and the appropriate subdivisions
may be substituted.

A7-3 „Marketable Coal Reserves‟, representing beneficiated or otherwise enhanced coal

product where modifications due to mining, dilution and processing have been
considered, may be publicly reported in conjunction with, but not instead of, reports of
Coal Reserves. The basis of the predicted yield to achieve Marketable Coal Reserves
must bestated.

A7-4 Reference to all coal products and properties must not be made until specific properties
are demonstrated by analytical results for samples from the deposit.

64
TABLE 1 – SECTION 10 Exploration Results Mineral Resources Mineral Reserves

Section 10: Reporting for Coal Resources and Coal Reserves

10.1 Specific (i) Appendix 7of the Template provides additional criteria for reporting on coal deposits.
Reporting for
Coal (ii) Guidance is available in relevant national standards for Coal Exploration Results, Coal Resources, and Coal Reserves reporting.

10.2 Geological (i) The project geology including coal deposit type, geological setting, and coal seams / zones present.
Setting,
Deposit, (ii) The structural complexity, physical continuity, coal rank, qualitative and quantitative properties of the significant coal seams or zones on the property.
Mineralization

10.3 Drilling
(i) Core recoveries and method of calculation.Core recoveries in cored boreholes should be in excess of 95% by length within the coal seam intersection.
Techniques

10.4 Relative
Density to The apparent relative density or true relative density of the coal seam(s) determined on coal samples from borehole cores using recognized standard laboratory methods or commonly used procedures.The moisture
(i)
replace Bulk basis on which the relative density determination is based and the moisture basis on which the final density value is reported (in situ or air-dried basis), should be stated.
Density

10.5 Bulk-
Sampling The purpose or aim of the bulk sampling program, the size of samples, spacing/density of samples recovered. The applicability of bulk sampling or large diameter core samples to provide representative samples for
(i)
and/or trial- tests. Comparison of results obtained from bulk sampling versus exploration sampling.
mining

10.6 Reasonable
prospects for
eventual (i) The basis on which reasonable prospects for eventual economic extraction has been determined. Any material assumptions made in determining the „reasonable prospects for eventual economic extraction‟.
economic
extraction

10.7 Coal The appropriate coal quality for all Coal Resource and Reserve categories.The type of analysis (e.g., raw coal, washed coal at a specific
(i)
Resource and cut-point density) and the basis of reporting of the coal quality parameters (e.g., air-dried basis, dry basis, etc.).
Reserve
Reporting A Coal Resource only includes the coal seam(s) above the minimum The Reserves may be reported as ROM tonnages and coal quality,
(ii)
thickness cut-off and the coal quality cut-off(s). and also as Saleable product/s tonnages and coal quality.

(iii) The reporting basis with particular reference to moisture and relative density.

65
Appendix 8 - Reporting of Exploration Results, Mineral Resources, and
Mineral Reserves for Industrial Minerals, Cement Feed Materials, and
Construction Raw Materials

A8-1 Clauses in this Appendix address matters that relate to the Public Reporting of industrial
minerals, cement feed materials, and construction raw materials of all forms that are
generally sold on the basis of their product specifications and market acceptance.
Unless otherwise stated, Clauses 1 to 60 of the PMRC2020 Edition (including Figure 1)
apply. Table 1, as part of the Code, should be considered persuasive when reporting
Exploration Results, Mineral Resources, and Mineral Reserves for industrial minerals,
cement feed materials, and construction raw materials.

A8-2 When reporting information and estimates for industrial minerals, cement feed materials
and construction raw materials, all ofthe key principles and purpose of the Code apply.
Chemical analyses may not always be relevant, and other quality criteria and
performance characteristics may be more applicable and acceptable as the basis of the
reporting.

A8-3 Some industrial minerals, cement feed materials, and construction raw material deposits
may yield products suitable for more than one application and/or specification. If
considered material by the AccreditedCompetent Person (ACP), such multiple products
should be quantified either separately or as a percentage of the bulk deposit.

A8-4 Unless it is a specific aspect of their instructions to reflect the range of product mixes
and target markets for the deposit, the ACP should normally report the Mineral
Resources and Mineral Reserves within the framework of an existing mining plan or
established set of product and market assumptions and objectives.

A8-5 If there is potential for ancillary products, or mining or process waste, to be sold off -site
for subsidiary uses in addition to the planned sales of primary products (i.e., other uses
for non-saleable quarry production, such as secondary aggregate or engineering or
other fill) the ACP should reflect this in their report and comment on any significant
implication (e.g., reductions in the amount of non-saleable material that could otherwise
be used as a restoration material).

A8-6 The factors underpinning the estimation of Mineral Resources and Mineral Reserves for
industrial minerals, cement feed materials, and construction raw materialsare the same
as those for other deposit types covered by the Code. It may be necessary, prior to the
reporting of a Mineral Resource or Mineral Reserve, to take particular account of certain
key characteristics or qualities such as likely product specifications, proximity to
markets, and general product marketability.

A8-7 For industrial minerals, cement feed materials, and construction raw materials, it is
common practice to report the saleable(or useable)product rather than the „as mined‟
product as it is recognized that commercial sensitivities may not permit the publication of
Mineral Resources and Mineral Reserves in the latter format which is thepreferred style
of reportingwithin the Code. It is important that, in all situations where the saleable
product is reported, a clarifying statement is included to ensure that the reader is fully
informed as to what is being reported.

A8-8 Reports should make clear the “permitted” or “non-permitted” status of the Mineral
Resources and Mineral Reserves, and, in addition, Mineral Reserves should only be
quoted where the operator has legal control.

It should be noted that many of the Modifying Factors are more relevant to industrial
66
 minerals, cement feed materials,and construction raw materials than to metalliferous
minerals. Specifically, the legal control may be more important, as well as the
permitting status, due to the local nature of the planning process for non-strategic
and non-government owned minerals.

A8-9 Mineral Reserves and Mineral Resources of industrial minerals, cement feed
materials,andconstruction raw materials serving localized or regional markets may be
reported on an aggregated basis on an appropriately defined geographical basis to reflect
the particular economic constraints of the deposits being reported without divulging
commercially sensitiveinformation.

A8-10 In certain cases, commercial sensitivity may prevent the publication of detailed
information and data associated with Mineral Resources and Mineral Reserves of
industrial minerals, cement feed materials,and construction raw materials, and in such
cases, this should be clearly justified in the report (either prepared for an individual site or
on an aggregated basis).

67
TABLE 1 – SECTION 11 Exploration Results Mineral Resources Mineral Reserves

Section 11: Reporting of Industrial Minerals, Cement Feed Materials, and Construction Raw Materials

11.1 Specific (i) Appendix 8provides additional criteria for reporting on Industrial Mineral, Cement Feed Materials, and Construction Raw Materials deposits.
Reporting of
Industrial (ii) The exploration or geologically specific specialized industry techniques appropriate to the minerals under investigation.
Minerals,
Cement Feed (iii) The nature and quality of sampling or specific specialized industry standard measurement tools appropriate to the minerals under investigation.
Materials, and
(iv) Appropriate saleable product qualities.The basis for reporting (physical or chemical parameters, air-dried basis, dry basis, etc.). Deleterious chemical elements or physical parameters.
Construction
Raw Materials
(v) Assumptions regarding particular extraction methods, infrastructure, processing, environmental, and social parameters. Where no mining related assumptions have been made, this should be explained.

(vi) Marketing parameters, customer specifications, testing, and acceptance requirements.

The nature, amount and representativeness of metallurgical/processing studies completed which form the basis for the various saleable materials which may be priced for different chemical and physical
(vii)
characteristics.

(viii) Where the reference point is a saleable product, a clarifying statement is included to ensure that the reader is fully informed as to what is being reported.

68
Appendix 9 - Reporting of Exploration Results, Mineral Resources and
Mineral Reserves for Dimension Stone, Ornamental and Decorative
Stone

A9-1 Clauses in this Appendix addresses matters that relate to the Public Reporting of
dimension stone, ornamental and decorative stone of all forms that are generally sold on
the basis of their technical (geological/mining) product specifications, quality, and market
acceptance. Unless otherwise stated, Clauses 1 to 60of the PMRC 2020 Edition
(including Figure 1) apply. Table 1, as part of the Code, should be considered persuasive
when reporting Exploration Results, Mineral Resources, and Mineral Reserves for
dimension stone, ornamental and decorative stone.

„Dimension stone‟ is a technical/commercial term that includes all natural stones

that can be quarried in blocks of different dimensions and processed by cutting or
splitting, and that possess the technical and aesthetic properties required for their
use in the building and construction industries.

In both mining and fields of application, dimension stone is distinct from any other
material derived from natural rocks (such as inaggregates, cement materials,
crushed stone, etc.). While other materials are almost exclusively used for load-
bearing and filling functions and are largely utilized in public works, dimension stone
materials offer special qualitative features which mean they can be used for
different purposes and they can perform both structural and decorative architectural
functions.

In general, dimension stone can be quarried in regular and/or unshaped blocks by

using different mining methods (drilling and splitting, diamond wire and diamond
chain-saw cutting) and processed (cut, polished, and subjected to other surface
treatments) to produce semi-finished products (slabs) and finished products (tiles
and cut-to-size products).

A9-2 Chemical analyses may not always be relevant for material evaluation, at least during the
exploration-evaluation phases. When necessary, chemical analysis is used to verify the
presence of possible minerals and related alteration that could produce important quality
defects on finished products. Chemical/compositional analysis may also identify mineral
components and/or assemblages and is used to predict the future technical requirements
of the quarrying-processing equipment and related tools.

A9.3 Qualitative and aesthetic qualities (color, grain, texture, and their regularity in distribution)
and/or their structural performance characteristics (compression and flexural strength,
abrasive resistance, porosity, ability to be polished, radioactivity content, etc.) may be
more important for the market, and applicable and acceptable as the basis for reporting.

A9-4 Many dimension stone deposits may yield different products (different materials and/or
different market grades within the same material), suitable for the production of more than
one finished or semi-finished product, and for more than one final application and/or
specification. These often are sold in the market with different prices.

A9-5 If considered material by the AccreditedCompetent Person (ACP), estimates for such
multiple products should be included either separately or as percentages of the bulk of
the deposit.

A9-6 Unless it is a specific aspect of their instructions to reflect the range of product mixes and
target markets for the deposit, the ACP should normally report the Mineral Resources
and Mineral Reserves within the framework of an existing mining plan and/or Pre-
69
 Feasibility-Feasibility Study or established set of products and market assumptions and
objectives.

A9-7 If there is potential for ancillary products or by-products, or for quarrying or processing
waste to be re-utilized or to be sold off-site for subsidiary uses, in addition to the planned
sales of the primary products as described above (e.g., aggregate, sand and powder as
industrial mineral, building and paving stone, etc.), the ACP should reflect this in the
report and comment on any significant implications (e.g., reduction in the amount of non-
saleable material, minimization of waste and related lower waste management costs and
environmental impact).

The factors underpinning the estimation of Mineral Resources and Mineral

Reserves for dimension stones are often not the same as those for other deposit
types covered by the Code.

It may be necessary, prior to the reporting of Mineral Resources and Mineral

Reserves, to take particular account of certain particular key characteristics/features
of the target material specific to dimension stone.

These may include final product specifications, proximity to markets, type, structure,
and demand of the market (very different area by area) and, excluding some very
well-established materials, possible changes in market requirements, and general
product marketability.

They may also depend mainly on the market quality of the target material (color,
grain, texture, and their regularity in distribution). A correct professional evaluation
of the Market Quality, made by the ACP in different ways, is the key to evaluating
the final product marketability and is a key Modifying Factor in defining Mineral
Reserves for dimension stone.

The ACP should explain in detail in the report, the method utilized for the Market
Quality evaluation of the target dimension stones, and in cases of the market the
references cited, together with documents referenced or used. Sometimes,
otherwise non-saleable materials are sent off-site as mining waste or as other
material of potential economic value.

Care should be taken to ensure that such materials are not “double-counted” by
being included as Mineral Resources and Mineral Reserves at both the site of
production and at the site of reception where they are considered as useable
products (with or without further processing to make them marketable).

A9-7 In contrast to industrial minerals, cement feed materials, and construction raw materials
(Appendix 8), for which it is common practice to report the saleable (or useable) product
ratherthan the „as mined‟ product, dimension stone is usually reported in all its forms,
shapes and dimensions. There are also factors that drive the market and the success of a
dimension stone project.

A9-8 The Public Report may contain either the geological or commercial names of target
dimension stones. In any case, an explanation of these terms should be included in the
report.

A9-9 Other industry guidelines on the estimation and reporting of dimension stones may be
useful but will under no circumstances override the provisions and intention of the Code
for Public Reporting.

A9-10 Many of the Modifying Factors are more relevant and specific to dimension stones than to
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 metalliferous materials. In particular, the legal control of Mineral Resources and Mineral
Reserves may be very important, as well as the permitting or consenting status, due to
the local nature and often simple structure of the planning process for non-strategic and
non-government owned minerals.

Reports should make clear the „permitted „or „non-permitted‟ status of the Mineral
Resources, and in addition Mineral Reserves particularly should only be quoted
where the operator has legal control.

A9-11 Mineral Reserves and Mineral Resources of dimension stone deposits with the same
material and owned by the same company, potentiallyserving localized/domestic or
regional markets, may be reported on an aggregated basis on an appropriately defined
geographical basis to reflect the particular economic constraints of the deposits being
reported without divulging commercially sensitive information.

A9-12 In certain cases, commercial sensitivity may prevent the publication of detailed
information and data associated with Mineral Resources and MineralReserves of
dimension stone deposits, and in such cases, this should be clearly justified in the report
(either prepared for an individual site or on an aggregated basis ).

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TABLE 1 – SECTION 12 Exploration Results Mineral Resources Mineral Reserves

Section 12: Reporting of Dimension Stone, Ornamental and Decorative Stone

12.1 Specific (i) Appendix 9 provides additional criteria for reporting on dimension stone, ornamental and decorative stone.
Reporting of
Dimension (ii) The exploration or geologically specific specialized industry techniques appropriate to the stone under investigation.
Stone,
Ornamental (iii) The nature and quality of sampling or specific specialized industry standard measurement tools appropriate to the stone under investigation.
and
The appropriate saleable product qualities reported, including color, grain, texture, and their regularity in distribution. The basis for reporting (physical or chemical parameters, compression and flexural strength,
Decorative (iv)
abrasion resistance, porosity, polishability etc.) should be reported. Reporting of deleterious chemical elements, radioactivity or physical parameters is required.
Stone
(v) State assumptions regarding in particular extraction methods, infrastructure, processing, environmental, and social parameters. Where no mining related assumptions have been made, this should be explained.

(vi) Discuss and justify the marketing parameters, customer specifications, testing, and acceptance requirements.

(vii) Discuss the nature, amount and representativeness of processing studies completed which form the basis for the various saleable materials which may be priced for different chemical and physical characteristics.

(viii) Where the reference point is a saleable product, a clarifying statement is included to ensure that the reader is fully informed as to what is being reported.

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