Accurate and tightly defined reporting of a mining company's resources is vital to the financial and investment community, with various guidelines published to meet the requirements of different nations' stock exchanges, which has given rise to a host of acronyms plaguing the mining community - JORC, SAMREC, CIM, NI 43-101, etc. Now these are now to be joined by yet another - PERC (Pan European Reserves and Resources Reporting Committee) - the draft content of which was announced in a well attended meeting in London yesterday.
While all of these codes are designed to meet the needs of various national bodies, they are in fact very close to one another in their demands under the auspices of CRIRSCO (Committee for Mineral Reserves International Reporting Standards), but there can be subtle differences which can catch out the unwary dual or triple listed mining company as we pointed out on Mineweb a month or so ago see NI 43-101 - Some tricks and traps.
PERC is not a totally new code, as such, but would be an update of the existing IMM (Institution of Mining and Metallurgy) reporting code developed in 1991 and recognised by the AIM market in London, among others. The new draft code has been drawn up by the IMM's successor organisation IOM 3 (The Institute of Materials, Minerals and Mining), EFG (The European Federation of Geologists), IGI (The Institute of Geologists of Ireland) and the Geological Society of London.
What was launched in London was in effect a consultation draft with a view to producing a final code by the end of the year. To this end, those parties interested in reviewing the PERC draft, and perhaps comment on it are directed to the PERC website - www.percreserves.com. It is anticipated that the UK Listing Authority, the London Stock Exchange and AIM will adopt the new (or revised) code as an update to the currently recognised IMM code and that other European exchanges will follow suit.
Where does the PERC code differ from say JORC or NI 43-101 (which indeed show minor differences between themselves)? The new proposal specifically includes new and detailed provision for some sectors not adequately served by existing reporting standards - notably diamonds, gemstones, dimension stone, tailings and dumps and industrial minerals and aggregates. Also guidelines on the reporting of historical data have been included. Lacking so far seems to be the tight definition of the various types of feasibility study, which are included in NI 43-101 for example, but this was a point raised from the meeting floor and no doubt will be considered by the Committee.
The consultation stage for the new code is due to end on October 17th with full code release set for December 17th.