Standard: Proven and Probable Mineral Reserves and
Measured, Indicated and Inferred Mineral Resources have been estimated
in accordance with the definitions of these terms adopted by the
Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) in
November 2005 and incorporated in National Instrument 43-101,
“Standards of Disclosure for Mineral Projects” (“NI 43-101”), by
Canadian securities regulatory authorities. Estimates of coal reserves
and resources have been prepared and classified using guidance from the
Geological Survey of Canada Paper 88-21. Classification terminology for
coal conforms to CIM definitions incorporated into NI 43-101. Mineral
Resources are reported separately from and do not include that portion
of the Mineral Resources that is classified as Mineral Reserves. That
portion of Mineral Resource which is not classified as Mineral Reserve
does not have demonstrated economic value.
Definitions: The CIM Definition standards on Mineral Resources and Mineral Reserves provide as follows:
A Mineral Resource is
a concentration or occurrence of diamonds, natural solid inorganic
material, or natural solid fossilized organic material including base
and precious metals, coal, and industrial minerals in or on the earth’s
crust in such form and quantity and of such a grade or quality that it
has reasonable prospects for economic extraction. The location,
quantity, grade, geological characteristics and continuity of a Mineral
Resource are known, estimated or interpreted from specific geological
evidence and knowledge.
An Inferred Mineral Resource is
that part of a Mineral Resource for which quantity and grade or quality
can be estimated on the basis of geological evidence and limited
sampling and reasonably assumed, but not verified, geological and grade
continuity. The estimate is based on limited information and sampling
gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes.
An Indicated Mineral Resource is
that part of a Mineral Resource for which quantity, grade or quality,
densities, shape and physical characteristics can be estimated with a
level of confidence sufficient to allow the appropriate application of
technical and economic parameters, to support mine planning and
evaluation of the economic viability of the deposit. The estimate is
based on detailed and reliable exploration and testing information
gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes that are spaced
closely enough for geological and grade continuity to be reasonably
assumed.
A Measured Mineral Resource is
that part of a Mineral Resource for which quantity, grade or quality,
densities, shape, and physical characteristics are so well established
that they can be estimated with confidence sufficient to allow the
appropriate application of technical and economic parameters, to
support production planning and evaluation of the economic viability of
the deposit. The estimate is based on detailed and reliable
exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes that are spaced closely enough to confirm both
geological and grade continuity.
A Mineral Reserve is
the economically mineable part of a Measured or Indicated Mineral
Resource demonstrated by at least a Preliminary Feasibility Study. This
Study must include adequate information on mining, processing,
metallurgical, economic and other relevant factors that demonstrate, at
the time of reporting, that economic extraction can be justified. A
Mineral Reserve includes diluting materials and allowances for losses
that may occur when the material is mined.
A Probable Mineral Reserve is
the economically mineable part of an Indicated and, in some
circumstances, a Measured Mineral Resource demonstrated by at least a
Preliminary Feasibility Study. This Study must include adequate
information on mining, processing, metallurgical, economic, and other
relevant factors that demonstrate, at the time of reporting, that
economic extraction can be justified.
A Proven Mineral Reserve is
the economically mineable part of a Measured Mineral Resource
demonstrated by at least a Preliminary Feasibility Study. This Study
must include adequate information on mining, processing, metallurgical,
economic, and other relevant factors that demonstrate, at the time of
reporting, that economic extraction is justified.