Principles Of SAMREC Code

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SAMREC is a short term for South African Mineral Resource Committee, and was established in the year 1998. This committee or working group drew up guidelines and recommendations for South African Code for Mineral Resources and Mineral Reserves, which in short is termed “SAMREC Code”. SAMREC Code is applicable to all minerals or economic deposits.

Transparency, competence and materiality are the three main principles dictating the operation of the SAMREC Code. The lector of the Public Report is expected to be provided with enough information to understand the report; hence the principle of “transparency”. Competence is the principle which expects the Public Report to be professional, meaning the person compiling the report must be qualified, experienced and enforced to professional code of ethics. Lastly, the principle of materiality expects the Public Report to contain all the necessary information which may be required by the investors and their professional advisers. The main aim for the principle of materiality is for making fair or realistic judgment regarding the mineralization being reported (SAMCODE; 2007).

HOW SAMREC CODE IMPLEMENTED TO ENSURE RELIABLE REPORTING ON COMMODITIES DATA

There are certain items that should be taken into consideration as a guide when evaluating a report in order to achieve commodities data reporting that is more reliable. However, exploration professionals still remain in need to make difficult decisions such as deciding as to whether the materials are regarded as Mineral Resource or a Mineral Reserve. All documentations of Exploration Results, Mineral Resources, and Mineral Reserves must be prepared by a ‘Competent Person’. “A Competent Person is a person who is a member of any South African...

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...hat are expected to occur when the material is mined. All adjustments in Mineral Reserve estimates must be fully described in the report. A Probable Mineral Reserve is estimated with a lower level of confidence whereas a Proved Mineral Reserve is estimated with a high level of confidence. Probable and Proved Mineral Reserves must not be combined in Public Reports unless relevant diagrams are provided for each group.
CONCLUSIONS

Up to so far, SAMREC has done a really good job in ensuring reliable Reporting of Commodities data. The most amazing thing about this working group is that it recognizes the importance of reviewing the codes from time to time, which then makes it more reliable. However, it is of utmost importance for those who prepare the reports to take into consideration the fundamental differences between the types of reporting they make to avoid errors.

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