Mineral Property Evaluation
Mineral Property Evaluation MINE 306
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This 3 page Class Notes was uploaded by Joannie Pacocha on Saturday September 12, 2015. The Class Notes belongs to MINE 306 at West Virginia University taught by Staff in Fall. Since its upload, it has received 18 views. For similar materials see /class/202724/mine-306-west-virginia-university in Engineering Chemical at West Virginia University.
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Date Created: 09/12/15
Description of Property by Issuers Engaged or to Be Engaged in Signi cant Mining Operations SEC Guide 7 httpwwwsecH divisions u n forms industry 39 39J 7 a De nitions The following de nitions apply to registrants engaged or to be engaged in signi cant mining operations 1 Reserve That part of a mineral deposit which could be economically and legally extracted or produced at the time of the reserve determination V Note Reserves are customarily stated in terms of quotorequot when dealing with metalliferous minerals when other materials such as coal oil shale tar sands limestone etc are involved an appropriate term such as quotrecoverable coalquot may be substituted Proven Measured Reserves Reserves for which a quantity is computed from dimensions revealed in outcrops trenches workings or drill holes grade andor quality are computed from the results of detailed sampling and b the sites for inspection sampling and measurement are spaced so closely and the geologic character is so well de ned that size shape depth and mineral content of reserves are wellestablished 2 V Probable Indicated Reserves Reserves for which quantity and grade andor quality are computed form information similar to that used for proven measure reserves but the sites for inspection sampling and measurement are farther apart or are otherwise less adequately spaced The degree of assurance although lower than that for proven measured reserves is high enough to assume continuity between points of observation 3 V i Exploration State 7 includes all issuers engaged in the search for mineral deposits reserves which are not in either the development or production stage 4 V ii Development Stage 7 includes all issuers engaged in the preparation of an established commercially minable deposit reserves for its extraction which are not in the production stage iii Production Stage 7 includes all issuers engaged in the exploitation of a mineral deposit reserve Instruction to paragraph a Mining companies in the exploration stage should not refer to 39 39 as 39 39 r stage 39 in the nancial statements even though such companies should comply with FASB Statement No 7 if applicable b Mining Operation Disclosure Furnish the following information as to each of the mines plants and other signi cant properties owned or operated or presently intended to be owned or operated by the registrant l The location and means of access to the property 2 A brief description of the tile claim lease or option under which the registrant and its subsidiaries have or will have the right to hold or operate the property indicating any conditions which the registrant must meet in order to obtain or retain the property If held by leases or options the expiration dates of such leases or options should be stated Appropriate maps may be used to portray the locations of signi cant properties 3 A brief history of previous operations including the names of previous operators insofar as known 4 i A brief description of the present condition of the property the work completed by the registrant on the property the registrant39s proposed program of exploration and development and the current state of exploration andor development of the property Mines should be identi ed as either openpit or underground If the property is without known reserves and the proposed program is exploratory in nature a statement to that effect shall be made ii The age details as to modernization and physical condition of the plant and equipment including subsurface improvements and equipment Further the total cost for each property and its associated plant and equipment should be stated The source of power utilized with respect to each property should also be disclosed 5 V A brief description of the rock formations and mineralization of existing or potential economic significance on the property including the identity of the principal metallic or other constituents insofar as known If proven measured or probable indicated reserves have been established state i the estimated tonnages and grades or quality where appropriate of such classes of reserves and ii the name of the person making the estimates and the nature of his relationship to the registrant Instructions to paragraph b539 It should be stated whether the reserve estimate is of inplace material or of recoverable material Any inplace estimate should be quali ed to show the anticipated losses resulting from mining methods and bene ciation or preparation 2 The summation of proven measured and probable indicated ore reserves is acceptable if the difference in degree of assurance between the two classes of reserves cannot be readily de ned 3 Estimates other than proved measured or probable indicated reserves and any estimated values of such reserves shall not be disclosed unless such information is required to be disclosed by foreign or state law provided however that where such estimates previously have been provided to a person or any of its af liates that is offering to acquire merge or consolidate with the registrant or otherwise to acquire the registrant s securities such estimates may be included 6 V If technical terms relating to geology mining or related matters whose de nition cannot readily be found in conventional dictionaries as opposed to technical dictionaries or glossaries are used an appropriate glossary should be included in this report 7 V Detailed geographic maps and reports feasibility studies and other highly technical data should not be included in the report but should be to the degree appropriate and necessary for the Commission39s understanding of the registrant39s presentation of business and property matters furnished as supplemental information c Supplemental Information 1 If an estimate of proven measured or probable indicated reserves is set forth in the report furnish i maps drawn to scale showing any mine workings and the outlines of the reserve blocks involved together with the pertinent sampleassay thereon ii all pertinent drill data and related maps iii the calculations whereby the basic sampleassay or drill data were translated into the estimates made the grade and tonnage of reserves in each block and in the complete reserve estimate Instructions to paragraph c139 Maps and drawings submitted to the staff should include a A legend or explanation showing by means of pattern or symbol every pattern or symbol used on the map or drawing the use of the symbols used by the US Geological Survey is encouraged b A graphical bar scale should be included additional representations of scale such as quotone inch equals one milequot may be utilized provided the original scale of the map has not been altered c A north arrow on the maps d An indeX map showing where the property is situated in relationship to the state or province etc in which it was located 6 A title of the map or drawing and the date on which it was drawn 1 In the even interpretive data is submitted in conjunction with any map the identity of the geologist or engineer that prepared such data and g Any drawing should be simple enough or of suf ciently large scale to clearly show all features on the drawing 2 Furnish a complete copy of every material engineering geological or metallurgical report concerning the registrant39s property including governmental reports which are known and available to the registrant Every such report should include the name of its author and the date of its preparation if known to the registrant Instruction to paragraph c2Any of the aboverequired reports as to which the staff has access need not be submitted In this regard issuers should consult with the staff prior to ling the report Any reports not submitted should be identi ed in a list furnished to the staff This list should also identify any known governmental reports concerning the registrant s property 3 Furnish copies of all documents such as title documents operating permits and easements needed to support representations made in the report httpwww sec govdivisionscorp nformsindustry htm Last update 05212001
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