SRK AU is seeing an uptick in requests from junior explorers to provide an exploration target for Australian Stock Exchange (ASX) releases to the market that follow the guidelines of the JORC Code (2012).
Historically, there has been minimal reporting of exploration targets to the market. Potential investors are more technically informed than they were 9 years ago when the JORC Code (2012) was updated, and as such, clients require an increased level of technical content and transparency in their supporting documentation to allow for a better understanding of the reported exploration target in 2021.
When reporting exploration targets, it is important to display the depth of geological and technical understanding. Additional detail should be included, such as constructing informed wireframes of the potential mineralisation, showing the differing geology of the footwall and hanging wall, any regional or local structures/faults/offsets and qualitative descriptions of the mineralisation style and local structure. For a refined approach, a basic geological/resource model should be completed. Any surface mapping or geophysical data should be shown and described.
While no specific confidence level is required to be reported, reasonable ranges of grade and tonnage based on sound geological assumptions are required. Determination of grade range can be informed from quoted percentiles of available data. In determination of the tonnage ranges, the density ranges and density types should also be described. Any mineralogy that may inform recovery should be stated.
It should be noted that an exploration target for release on the ASX also requires:
• a Competent Person’s statement
• a cautionary statement that the potential quantity and grade are conceptual in nature, that there has been insufficient exploration to estimate a mineral resource and that it is uncertain if further exploration will result in the estimation of a mineral resource
• a comment on proposed exploration
activities designed to test the validity of the target
• a comment on timeframe within which those activities are expected to be completed
• consideration that the mineralisation has prospects of being economically mined within a reasonable timeframe
• that tonnage or grade must not be reported as a ‘headline statement’
• that exploration results (if new) have been appropriately reported with an
accompanying JORC Code Table 1
This refined approach to reporting exploration targets will better inform the investor and result in improved confidence for clients.
