Fresh Thinking by Snowden Optiro

This is the first podcast from Matt Mullins, our Head of Advisory for Europe, Middle East, Africa and Asia. In this podcast Matt talks about his experience with creating value through increasing productivity. Matt's vast knowledge, experience and the skills that he's gained in his 40+ years in the mining industry, offer us invaluable information.

This episode at a glance:

1:52 What are some of the big changes that you've witnessed over the past 40 years in the mining industry?

6:00 Capital efficiency ratio – how do you use it and measure it?

7:39 Was the decline in capital efficiency ratio recognised at the time?

8:33 What are some warning signs for us to watch out for?

9:53 How did you intervene?

13:00 What are some of the key learnings?

For more information:

Eliyah Goldratt's book, The Theory of Constraints

Contact: [email protected]

Link to a short bio about Matt: https://snowdenoptiro.com/team/matt-mullins/

Snowden Optiro - Mining Advisory Consulting, Software and Training: https://snowdenoptiro.com/

Snowden Optiro Training courses: https://snowdenoptiro.com/training/

This is the 2nd podcast in a 2-part series that covers Categorical and Multiple Indicator Kriging, which is an increasingly popular mineral resource estimation technique. In this podcast, Optiro's Geology Director, Ian Glacken discusses the use and abuse of these techniques in mineral resource estimation, with our podcast host Justine Tracey.

This episode at a glance:

1:00 Let's recap the concept of an indicator 1.58 What are the circumstances where MIK is required? 5.56 What are the key issues to be aware of? 9.54 Why is MIK abused as an estimation technique? 13.17 Where can we get more information?

For more information:

• Rossi, ME, and Deutsch, CV (2014). Mineral Resource Estimation. Springer.
• A practitioners' implementation of indicator kriging. Authors: I M Glacken and P C J Blackney. Contact Ian Glacken for a copy: [email protected]

This is the first podcast in a 2-part series that covers Categorical and Multiple Indicator Kriging, which is an increasingly popular mineral resource estimation technique. In this podcast, Optiro's Geology Director, Ian Glacken addresses the use and abuse of these techniques in mineral resource estimation.

This episode at a glance:

1:00 What are these two podcasts about?

1:36 What exactly is an indicator?

2:33 What is categorical kriging and where would I apply it?

4:32 Could you use it in a more simple application? (Sub domaining out your low-grade zones within a domain)

5:27 Have you seen categorical kriging used inappropriately?

7:11 Can you explain how categorical estimation works?

9:44 What are the key issues when using a categorical estimation?

11:21 Is the approach ever overused or abused?

For more information:

• Rossi, ME, and Deutsch, CV (2014). Mineral Resource Estimation. Springer.
• A practitioners' implementation of indicator kriging. Authors: I M Glacken and P C J Blackney. Contact Ian Glacken for a copy: [email protected]

The JORC code does many things, but it doesn't prescribe how to consistently classify resources. Optiro's Director of Geology Ian Glacken explains some of the techniques available to ensure consistency in this fifth part of the mini-series on the JORC code.

In this episode:

1:22 When the JORC code is described as being principles-based, what does that mean? 3:16 So contrasting to other codes around the world, the JORC code is a good one, right? 4:33 Why can the JORC code be an issue for large companies? 5:39 What are some of the techniques for getting a more objective classification? 6:30 Is there a standard for objective resource classification? (90/15 rule) 11:16 Where can you get more information on this?

For more information:

• H M Parker and C E Dohm, 2014. Evolution of Mineral Resource Classification from 1980 to 2014 and Current Best Practice. Finex 2014 Julius Wernher Lecture
• JORC Code
• Contact Ian Glacken - Optiro Director of Geology: [email protected]

There are plenty of ways to get it wrong and having to retract your ASX market release is best avoided. Optiro's Director of Geology Ian Glacken explains how to stay compliant to the rules in this fourth part in the mini-series on the JORC code.

In this episode:

1:16 What's the general approach for resource and reserve market releases? 4:20 How does our process in Australia compare to the codes in other markets? 5:43 What sort of errors we do see with releases of exploration results? 9:01 What about the errors we see with the release of resource information? 10:27 There are many issues related to studies for ore reserve declarations, right? 12:55 What about the market comparisons companies make with their peers? 16:17 Where can you find out more about this?

For more information:

• JORC Code
• Contact Ian Glacken - Optiro Director of Geology: [email protected]

Podcasts in the time of COVID-19. The name isn't a mistake: Optiro's Director of Geology Ian Glacken is talking about Table 1 of the JORC code, why it is there, misconceptions about it and how it can protect investors.

In this episode:

0:57 Table 1 and the ASX listing rules - what are your obligations? 1:45 What are the rules regarding Table 1 and when does it need to get completed? 2:27 "If not, why not?" - what does this mean? 3:50 If I have generated a mineral resource estimate, do I need to fill out Section 2 of Table 1? 5:50 What's the relationship between Table 1 and the ASX listing rules? 8:39 What do you think the regulators want to see? 10:51 This is complicated. Does anyone actually look at Table 1? 12:35 Where should we look for more information on Table 1?

For more information:

• JORC Code
• JORC Table 1: Just answer the question! (2016) Sterk, R. RSC Consulting Ltd
• Contact Ian Glacken - Optiro Director of Geology: [email protected]

Reporting your resource using metal equivalents is acceptable practice, if you follow the rules. In this episode, the second in a mini-series about misinterpretation of the JORC code, Optiro's Director of Geology Ian Glacken explains where miners are getting it wrong and potentially misreporting the value of their commodities.

In this episode:

0:58 What happens if a competent person misinterprets or misreports something to the market? 2:18 What is a metal equivalent and why are we talking about it in this context? 6:00 Metal equivalents aren't necessarily a bad thing though right? Why should companies do it? 7:08 What is an NSR (Net Smelter Return) equivalent? 8:40 What are the rules for metal equivalents in the JORC code? 11:12 Why do we see abuses of the rules and then subsequent retractions in the market? 14:34 What should investors look out for in market releases? 16:08 Where can listeners get more information?

For more information:

• The Use and Abuse of Metal Equivalents (2019) Rose, S and Fahey, G. Mining Geology 2019 conference.
• Contact Ian Glacken - Optiro Director of Geology: [email protected]

Recent research undertaken by Optiro's Director of Geology, Ian Glacken, shows there are a number of reports on resources being made to the market that are based on tenuous assumptions. This episode is part of a mini series on misinterpretations of the JORC code.

In this episode:

1:03 Is RPEEE hopeless? 2:08 What does 'reasonable' mean, actually? 2:51 What about 'eventual' and 'economic'? 4:16 Are we effectively defining ore reserves at the resource stage now? 6:03 What's causing you to be less optimistic about RPEEE now? 9:27 We can see people sidestepping the rules - why are we seeing people get away with it? 11:29 We're looking for a level playing field. What can we do to bring resource reporting in line with the code? 13:51 How can people get a hold of your paper that was presented at the conference?

For more information:

• The Highly Vexed Issue of Reasonable Prospects of Eventual Economic Extraction (RPEEE) - Narrowing the Range of Practice (2019), Glacken, Ian. Mining Geology 2019 conference.
• Contact Ian Glacken - Optiro Director of Geology: [email protected]

Now that you've built up your resource model from the data it's time to submit it to the Bernard Schneider test. Optiro's Principal Geologist Mark Drabble explains some of the checks you need to perform to ensure your modelling is correct.

In this episode:

0:49 What are some of the key issues you've seen in resource models? 6:05 How can we avoid coming out with "bollocks" in our models? 9:09 If you want to keep your models accurate, what are some of the techniques you can use? 13:50 What should we do with our validated models, now that we have them?

For more information:

• Contact Mark Drabble - Optiro Principal Geologist: [email protected]

Interpreting data can be a daunting task and 'good luck' probably isn't enough to get you through! So Optiro's Principal Geologist Mark Drabble shares tips on how to get to the right answers in your resource models.

In this episode:

0:45 Five years before you could use a computer to model 2:11 Are graduate geologists spending much time in the field learning how to collect data? 4:06 How should you get started in resource modelling? 6:45 What do I need to understand about the JORC code and materiality? 8:35 How can people check the database they are working with for errors? 13:15 What does visualisation mean? 16:53 We haven't even started digitising, what are the things you need to do here? 22:04 Draw your concept - use a pencil! 24:12 Ok you've got shapes now - is this a model?

For more information:

• Contact Mark Drabble - Optiro Principal Geologist: [email protected]