The Mineral Resource and Ore Reserves of a mining company are key assets of the business.
The Ore Reserve and Mineral Resource estimates in this report were prepared by Competent Persons in accordance with the requirements of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 edition (the JORC Code). The exception was the Jabal Sayid mine, where the estimates were prepared by Qualified Persons in accordance with the CIM 2014 Definition Standards for Mineral Resources and Mineral Reserves. There are no material differences between CIM 2014 and the JORC Code 2012.
The JORC Code represents current global industry best practice for the reporting Ore Reserves and Mineral Resources.
The reporting of Ore Reserve and Mineral Resource estimates by Ma’aden complies with the principles of transparency, materiality and competence in the JORC Code for the estimation, classification, reporting, review and presentation of this report.
The Mineral Resources and Ore Reserves terminology used in this report follows the definitions in the JORC Code. Additional terms are defined in the Glossary of this section of the annual report.
The Mineral Resources and Ore Reserves estimates are reported for the projects at an effective date of 31 December 2020 after depletion for mine production and adjustments for changes in commodity process, technical factors and economic factors. Summary data for year end 2019 and 2018 are shown for comparison. Metric units are used throughout this report except for use of troy ounces following common industry practice.
Mineral Resources are reported inclusive of the Mineral Resources within the Ore Reserves. All estimates are reported on a dry tonnes basis.
Mineral Resource and Ore Reserve estimates are reported by commodity, project, development stage and licence. All estimates are reported as the total for each project. Ma’aden’s ownership interest is listed for each project.
Ma’aden’s Mineral Resource and Ore Reserve estimates for phosphate, bauxite, kaolin, magnesite, gold and copper are reported at 31 December 2020, 2019 and 2018.
Differences in Mineral Resources and Ore Reserves for gold, phosphate and metallurgical bauxite from 31 December 2019 to 31 December 2020 are presented as a waterfall chart quantifying and classifying the changes.
Ma’aden implemented a system of internal and external reviews to provide assurance that Ore Reserve and Mineral Resource estimates are reported in accordance with the JORC Code and global mining industry practice
The principles governing the application of the JORC Code are transparency, materiality and competence. Transparency requires that the reader of a report is provided with sufficient information, in a clear and unambiguous form. Materiality requires public reporting of all relevant information, which investors would reasonably require in the reporting of Mineral Resources or Ore Reserves. Competence requires that the public report of Mineral Resources and Ore Reserves is prepared and certified by suitably qualified and experienced persons, ‘Competent Persons’. Mineral Resources and Ore Reserves reported according to the JORC Code must accurately reflect the information and supporting documentation prepared by a Competent Person.
The reported Ore Reserves and Mineral Resources estimated were prepared by or under the supervision of Competent Persons as defined in the JORC Code
All Competent Persons are required to have a minimum of five years relevant experience in the type of mineralisation and in the estimation which they are doing. Each must be a member of a recognised professional body whose members are bound by an enforceable professional code of ethics. Most estimates were prepared by independent Competent Persons, who are not employees of Ma’aden. The estimates which were prepared by Competent Persons who were Ma’aden employees were reviewed and countersigned by independent, external Competent Persons to confirm that the estimates comply with the requirements of the JORC Code. All Competent Persons consented to the inclusion of the estimates in this report of in the form and context in which it appears. The names of the Competent Persons, their membership of a Recognised Professional Organisation and their employer are listed in the relevant section of this report.
Ma’aden has formally appointed a Resources and Reserves Committee, which is comprised of experienced and qualified Competent Persons from within Ma’aden. The Committee is responsible for reviewing all annual Ore Reserve and Mineral Resource estimates to provide assurance that Ore Reserve and Mineral Resource were estimated and reported in accordance with JORC Code. The Committee’s membership, authorities and accountabilities are mandated in a policy and procedures document signed by the Chief Executive Officer. The Committee reports to the Chief Executive Officer. The Ma’aden Board approved the publication of the Mineral Resource and Ore Reserve estimates in this report.
Exploration licences confer the right to explore and evaluate only while mining licences give the right to mine and process the material within the licence. Mineral Resource and Ore Reserve estimates are reported within licence applications where Ma’aden has a reasonable expectation that the licence applications will be renewed or granted. However, the decision to grant or renew is at the discretion of the relevant government authority
The licence status of each mine is shown in the Mineral Resources and Ore Reserves tables.
Where a Mining Licence application was submitted to the relevant regulatory authorities by Ma’aden or a Ma’aden Affiliate company and the company has a reasonable expectation that the Mining Licence will be granted at a future date, then the relevant Mineral Resources and Ore Reserves are reported.
These Mineral Resource and Ore Reserve estimates are based on long term commodity price forecasts prepared annually by Ma’aden’s Business Units.
Commodity Prices for December 2020 Resources and Reserves
| Mineral Commodity | Mineral Resource | Ore Reserve |
|---|
| Gold | $1550/oz | $1300/oz |
| Silver | $20/oz | $17/oz |
| Copper | $7550/t | $6300/t |
| Zinc | $2650/t | $2200/t |
oz - troy ounce; t - metric tonne
Commodity prices for phosphate, metallurgical bauxite, kaolin and magnesite are not reported as these commodities are either processed within Ma’aden’s vertically integrated businesses or sold at multiple quality and chemical specifications.
There is an inherent degree of uncertainty in the estimation of Mineral Resources and Ore Reserves when compared with the material when it is ultimately mined and processed. This uncertainty is reflected in the Mineral Resource and Ore Reserve classifications of the JORC Code.
General relationship between Exploration Results, Mineral Resources and Ore Reserves (from the JORC Code 2012)
There is an inherent degree of uncertainty in the estimation of Mineral Resources and Ore Reserves when compared with the material when it is mined and processed. Extrapolation of operational performance from small-scale laboratory tests or pilot plants to full-scale production may not prove to be exact in practice and this may affect the Ore Reserves. Changes in assumptions for overburden removal, process plant recoveries and other operational factors may influence the tonnage and grade of an ore reserve and adversely affect the economic viability of a project. Volumes, grades and recoveries of Ore Reserves which are mined and processed may not be the same as currently anticipated.
According to the JORC Code, a Mineral Resource must have reasonable prospects for eventual economic extraction. An Ore Reserve must be economically mineable. The Competent Person must consider that there is a reasonable expectation that all or part of the Mineral Resources will eventually become Ore Reserves, but there is no guarantee that this will occur subject to technical and economic scoping, prefeasibility and feasibility studies and future economic conditions
The tonnage and grade of the Mineral Resources and Ore Reserves are reported according to the classification system in the JORC Code. The classification reflects the judgement of the Competent Person’s confidence in the estimate subject to the understanding of the geology, geological continuity, grade variability, and the quantity, distribution, quality and confidence in the geoscientific data and information used to produce the estimates.
Mineral Resources and Ore Reserves are subject to change from depletion from mining, additional drilling, improved understanding of the mineralised deposits, medium term variations in commodities prices, mine production costs, mineral processing costs and mining, infrastructure, legal, environmental, social and governmental factors. The changes to the previous annual estimates for gold, phosphate and metallurgical bauxite are shown in this report in table and graphical form. The Reserve Life stated in the Ore Reserves table is the scheduled extraction period in years in the Life of Mine Plan for the project.
The reported Ore Reserve tonnes and grades is the estimated metal or product as mined and at the point of delivery to the processing plant, which follows common international practice. The Ore Reserve table shows the mining and processing methods for each ore reserve, the forecast metallurgical recovery and the forecast recoverable metal or mineral product.
The Mineral Resources and Ore Reserves tonnage and grades are stated to one decimal place. The Mineral Resources and Ore Reserves estimates are more precise than shown in the tables in this report, and minor apparent discrepancies may result if the tabulated figures are summed.
