AusIMM Bulletin (2024) Can you dig it? Modifying Factors and multi-factor risk

The CRIRSCO (Committee for Mineral Reserves International Reporting Standards) Global Standard Guidelines state that ‘the effect of any Modifying Factor on the likely viability of a project and on the estimation and classification of the Mineral Reserves must be fully explained’ (2019). The 2012 JORC Code (Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves) has corresponding requirements.

With a review of the JORC Code underway, and a draft for public review and comment due soon, it is a good time to reflect on the emerging centrality of Modifying Factors in evaluation. While the JORC Code primarily relates to Mineral Resources and Reserves, it necessarily overlaps with mineral project design and evaluation. The principle of ‘fully explained’ disclosure that is embedded in the JORC Code complements regulation and compliance to ensure public, regulator and investor acceptability. This leads directly to project viability. To be truly effective, stakeholders need to have confidence in both the claimed procedural and professional competence of project analysts and teams.

More than ever, AusIMM has an important role to play in confirming the Area of Practice competence of professionals claiming that status.