Interregional workshop on uranium, coal and oil & gas

classification: Towards a better understanding of

energetic basins and application of UNFC-2009
16-19 August, 2016

The MRC Code

Mongolian Resource Classification for public reporting
and its interrelationship with UNFC-2009

OYUNGEREL BAYANJARGAL
Executive Director, The MPIGM
MRC Representative on CRIRSCO

17 August, 2016

THE MONGOLIAN PROFESSIONAL INSTITUTE OF GEOSCIENCES AND MINING

PRESENTATION AGENDA

1. Brief introduction for the MPIGM and MRC

Code
2. About CRIRSCO
3. CRIRSCO Template
4. Competent Person issues
5. Relationship between the MRC Code or
CRIRSCO Template and UNFC-2009

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THE MPIGM - INTRODUCTION

• The MPIGM - The Mongolian Professional

Institute of Geosciences and Mining was
founded on January 2014 as a National
Reporting Organization. This is a non-
government, self regulated, professional
organization.
• The MPIGM became 8th Member of CRIRSCO
on October 2014 during CRIRSCO Annual
Meeting in UB.
THE MONGOLIAN PROFESSIONAL INSTITUTE OF GEOSCIENCES AND MINING
MRC CODE - INTRODUCTION

THE MONGOLIAN CODE FOR THE PUBLIC

REPORTING OF EXPLORATION RESULTS, MINERAL
RESOURCES AND MINERAL RESERVES
(MRC Code)
• Internationally accepted CRIRSCO Template based
code
• Mongolian Government accepted in 2014 by the
order of the Ministry of Mining according to the
Mineral Law of Mongolia for public reporting of
Mineral Resources and Reserves.

THE MONGOLIAN PROFESSIONAL INSTITUTE OF GEOSCIENCES AND MINING

CRIRSCO - PRINCIPLE OBJECTIVE

COMMITTEE FOR MINERAL RESERVES INTERNATIONAL

REPORTING STANDARDS

To promote best practice in the international public

reporting of Mineral Exploration Results, Mineral
Resources and Mineral Reserves.
CRIRSCO is an international advisory body without legal
authority, relying on its constituent members to ensure
regulatory and disciplinary oversight at a national level.
It recognises the truly global nature of the minerals
industry and the agreed need for international consensus
on reporting standards.
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 CRIRSCO - MEMBERS

CRIRSCO Is Formed by Representatives of National Reporting Organizations (NROs)

CRIRSCO is sponsored by the International Council for Mining and Metals;

other support comes from mining companies and professional societies
THE MONGOLIAN PROFESSIONAL INSTITUTE OF GEOSCIENCES AND MINING
 CRIRSCO - MEMBERS

CRIRSCO Template

JORC Code SAMCodes NI 43-101 SME Guide PERC Code

CBRR KAZRC
CH 20 235 Code NAEN Code MRC Code CBRR Guide KAZRC

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 CRIRSCO - HISTORY

At the 15th Council of Mining and Metallurgical Institutions (CMMI) Congress at

Sun City, South Africa in 1994, the CMMI Mineral Definitions Working Group was
formed, made up of representatives from:
Australia [Australasian Institute of Mining and Metallurgy (AusIMM)];
Canada [Canadian Institute of Mining, Metallurgy and Petroleum (CIM)];
South Africa [South African Institute of Mining and Metallurgy (SAIMM)];
UK [Institution of Mining and Metallurgy (IMM)]; and
United States [Society for Mining, Metallurgy and Exploration (SME)].

The primary objective of the group was to develop a set of international standard
definitions for the reporting of mineral resources and mineral reserves.

The initiative assumed greater urgency in March 1997 with the well publicised
Bre-X scandal, and in October 1997 there was a major breakthrough when the
five participants met in Denver, Colorado and reached provisional agreement (the
Denver Accord) for the definitions of the two major categories, Mineral
Resources and Mineral Reserves, and their respective sub-categories Measured,
Indicated and Inferred Mineral Resources, and Proved and Probable Mineral
Reserves.
THE MONGOLIAN PROFESSIONAL INSTITUTE OF GEOSCIENCES AND MINING
CRIRSCO – HISTORY WITH UNESE
At Geneva in October 1999, agreement was reached between CMMI
representatives and the UNECE Task Force for the adoption of the CMMI
standard reporting definitions for mineral resources and reserves, with minor
modifications, into the UNFC for those categories that were common to both
systems.
On the final CMMI Congress in Cairns, Australia in May 2002, the group was
reformed as the Combined Reserves International Reporting Standards
Committee, or CRIRSCO. This was later changed to the Committee for Mineral
Reserves International Reporting Standards.
CRIRSCO re-engaged with the UNECE during the period 2006-2009, worked with
the Society of Petroleum Engineers (SPE) as petroleum industry representatives
to map the CRIRSCO Template (first published in 2006) to the Petroleum
Resource Management System, participated in a UNECE Task Force set up to
map the Template and PRMS to the UNFC and a further Task Force to
recommend revisions to the UNFC. This work culminated in the release of a
new, and much simplified, version of the UNFC in December 2009.
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CRIRSCO – ANNUAL MEETING

• 2007 London
• 2008 Santiago
• 2009 Beijing
• 2010 Moscow
• 2011 London
• 2012 London
• 2013 Bogota
• 2014 Ulaanbaatar
• 2015 Brasilia

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CRIRSCO – THE TEMPLATE

INTERNATIONAL
REPORTING
TEMPLATE
for the public reporting of

EXPLORATION RESULTS, MINERAL RESOURCES

AND MINERAL RESERVES

NOVEMBER 2013
THE MONGOLIAN PROFESSIONAL INSTITUTE OF GEOSCIENCES AND MINING
CRIRSCO – THE TEMPLATE PURPOSE

• Advisory only
• National Standards/Codes take precedence
• Model for development of new codes
• First edition 2006
• Updated 2013
• Revision commenced Nov 2015

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THE TEMPLATE - COMMON DEFINITIONS

THE MONGOLIAN PROFESSIONAL INSTITUTE OF GEOSCIENCES AND MINING

NATIONAL REPORTING ORGANIZATIONS (NROS)

Updates and new Codes

• JORC 2012
• PERC 2013
• MRC 2014
• SME Guide 2014
• CBRR Guide 2015
• SAMREC 2016
• KAZRC 2016

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CRIRSCO MEMBER COMPARISON

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ACCEPTANCE OF NATIONAL REPORTING CODES
AND STANDARDS BY CAPITAL MARKETS

• Australia: JORC, NI43-101/CIM, PERC, SAMREC

• Canada: NI43-101/CIM, Chilean Code, IG7, JORC, PERC,
SAMREC, NAEN
• Chile: Chilean Code
• European Stock Exchanges: All CRIRSCO codes
• Hong Kong: JORC, NI43-101/CIM, PERC
• Johannesburg: SAMREC
• New York: IG7
• Singapore: NI43-101, JORC, PERC

Exceptions are granted on special application to listing

authorities, particularly for secondary listings
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 MRC CODE - CONTEXT
FOREWORD – Өмнөх үг 1
INTRODUCTION - Танилцуулга 2
PRINCIPLES AND SCOPE – Зарчим ба Хамрах хүрээ 3-7
COMPETENCE AND RESPONSIBILITY – Ур чадвар ба Хариуцлага 8 - 11
REPORTING TERMINOLOGY – Тайланд хэрэглэгдэх үг хэллэг 12
REPORTING GENERAL – Тайлан гаргах талаар 13 - 16
REPORTING OF EXPLORATION RESULTS – Хайгуулын үр дүнг тайлагнах 17 - 20
REPORTING OF MINERAL RESOURCES – Ашигт малтмалын баялгийг тайлагнах 21 - 29
REPORTING OF MINERAL RESERVES – Ашигт малтмалын ордын нөөцийг тайлагнах 30 - 36
TECHNICAL STUDIES – Мэргэжлийн судалгаанууд 37 - 40
REPORTING OF MINERALISED FILL, PILLARS, LOW GRADE MINERALISATION, STOCKPILES, DUMPS AND TAILINGS – 41
Эрдэсжсэн овоолго, бага агуулгатай хүдрийн овоолго, хүдрийн овоолго, хаягдлын овоолго ба хаягдал материал
REPORTING OF COAL EXPLORATION RESULTS, RESOURCES AND RESERVES – Нүүрсний хайгуулын үр дүн, нөөц, 42 - 44
баялгийг тайлагнах
REPORTING OF DIAMOND AND OTHER GEMSTONE EXPLORATION RESULTS, MINERAL RESOURCES AND MINERAL 45 - 48
RESERVES – Очир алмаз болон бусад үнэт чулуулгийн хайгуулын үр дүн, нөөц, баялгийг тайлагнах
REPORTING OF INDUSTRIAL MINERALS EXPLORATION RESULTS, MINERAL RESOURCES AND MINERAL RESERVES – 49 - 50
Барилгын материалын хайгуулын үр дүн, нөөц, баялгийг тайлагнах
REPORTING OF UNCONVENTIONAL ENERGY RESOURCES – Уламжлалт бус эрчим хүчний нөөцийг тайлагнах 51
REPORTING OF METAL EQUIVALENTS – Металлын эквивалентыг тайлагнах 52

THE MONGOLIAN PROFESSIONAL INSTITUTE OF GEOSCIENCES AND MINING

 COMPETENT PERSON

11. A Competent Person is a minerals industry professional who is a

Member or Fellow with the Registered Professional certification of
the Mongolian Professional Institute of Geosciences and Mining or
a Recognised Professional Organisation. These organisations have
enforceable disciplinary processes including the powers to suspend
or expel a member.
A Competent Person must have a minimum of five years’ relevant
experience in the style of mineralisation or type of deposit under
consideration and in the activity which that person is undertaking.

THE MONGOLIAN PROFESSIONAL INSTITUTE OF GEOSCIENCES AND MINING

COMPETENT PERSON

(11) If the Competent Person is preparing a report on Exploration

Results, the relevant experience must be in exploration. If the
Competent Person is estimating, or supervising the estimation of
Mineral Resources, the relevant experience must be in the
estimation, assessment and evaluation of Mineral Resources. If
the Competent Person is estimating, or supervising the estimation
of Mineral Reserves, the relevant experience must be in the
estimation, assessment, evaluation and economic extraction of
Mineral Reserves.
…

THE MONGOLIAN PROFESSIONAL INSTITUTE OF GEOSCIENCES AND MINING

WHAT IS A COMPETENT PERSONS REPORT?

• The CRIRSCO family of “codes” define public reports to

include all disclosures from press releases and website
postings, to technical reports, which may be of various
sizes.
• The reports should name a Competent Person who takes
responsibility for the disclosure.
• Securities regulators can have specific requirements for
disclosure in a “Technical Report” which is prepared by
Qualified Persons (e.g. Canada) or Competent Persons
elsewhere.
• Most large mining companies have Competent Persons
Reports to support their annual declarations of Mineral
Resources and Mineral Reserves. These reports sometimes
take the format of strategic business plans.

THE MONGOLIAN PROFESSIONAL INSTITUTE OF GEOSCIENCES AND MINING

GENERAL PRINCIPLES (DRAWN FROM THE
CRIRSCO TEMPLATE)

• Transparency requires that the reader of a public report is

provided with sufficient information, the presentation of
which is clear and unambiguous, so as to understand the
report and not to be misled.
• Materiality requires that a public report contains all the
relevant information which investors and their professional
advisers would reasonably require, and reasonably expect to
find in a public report, for the purpose of making a reasoned
and balanced judgment regarding the Exploration Results,
Mineral Resources or Mineral Reserves being reported.
• Competence requires that the public report be based on
work that is the responsibility of suitably qualified and
experienced Competent Persons who are subject to an
enforceable professional code of ethics and rules of conduct.

THE MONGOLIAN PROFESSIONAL INSTITUTE OF GEOSCIENCES AND MINING

RELATIONSHIP BETWEEN CRIRSCO AND UNFC

THE MONGOLIAN PROFESSIONAL INSTITUTE OF GEOSCIENCES AND MINING

RELATIONSHIP BETWEEN CRIRSCO AND UNFC

1. The UNFC 2009 references the CRIRSCO Template for

all solid mineral "Commodity Specific Specifications"
including Uranium and Thorium. It is not possible to
apply the UNFC to solid minerals without using the
CRIRSCO Template.

Backup:
UNFC 2009 page 17 paragraph 2 - "UNFC 2009 "Long-
standing agreements are in place for CRIRSCO and SPE to
provide the commodity-specific specifications for solid
minerals and petroleum. In accordance with those
agreements, they have provided commodity - specific
specifications via the CRIRSCO Template and PRMS
respectively."
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RELATIONSHIP BETWEEN CRIRSCO AND UNFC

2. R & R Information compiled in the NEA/IAEA system

cannot be transferred into the UNFC without using the
CRIRSCO Template.
Here is the backup:
Bridging Document (document 1), Paragraph 5 in the
introduction of the document states:
– "The mapping of NEA/IAEA results for individual deposits into
UNFC-2009 requires the application of “Production Terminology”
as defined in Section II.B of this Bridging Document, the
instructions set out in Section III of this Bridging Document, the
commodity-specific specifications compiled in the CRIRSCO
Template2, and the Generic Specifications for the application of
UNFC-2009 (ECE Energy Series No. 42 (ECE/ENERGY/94) “UNFC-
2009 incorporating Specifications for its Application”, Part II,
Section VI)".

THE MONGOLIAN PROFESSIONAL INSTITUTE OF GEOSCIENCES AND MINING

RELATIONSHIP BETWEEN CRIRSCO AND UNFC

2. R & R Information compiled in the NEA/IAEA system

cannot be transferred into the UNFC without using the
CRIRSCO Template.
(Cont.)
Guidelines (document 2) Section C. "Commodity-specific
specifications" clause 62 :
"Commodity-specific specifications for solid minerals are
provided through the CRIRSCO Template6 [4]. The relationship
between UNFC-2009 and the CRIRSCO Template is explained in
the “Bridging Document between the CRIRSCO Template and
UNFC-2009” (refer to Annex III (p. 31) of UNFC-2009). Along
with the Generic Specifications, these provide the foundation
and keystones for consistent application of UNFC-2009 for
solid minerals including uranium and thorium.

THE MONGOLIAN PROFESSIONAL INSTITUTE OF GEOSCIENCES AND MINING

RELATIONSHIP BETWEEN CRIRSCO AND UNFC

3. Mapping
Between
CRIRSCO/
UNFC /IAEA
A generalized
description of
the mapping
is outlined on
pages 38 to
43 of
Guidelines

THE MONGOLIAN PROFESSIONAL INSTITUTE OF GEOSCIENCES AND MINING

RELATIONSHIP BETWEEN CRIRSCO AND UNFC

4. What are the CRIRSCO Commodity Specific

Specifications?
This was a debate that raged for months. It was
finally resolved when section C, "Commodity-
Specific Specifications" on pages 22 to 31 of
Guidelines was approved. In short, the
"Commodity-Specific Specifications" is almost
the entire CRIRSCO Template.

THE MONGOLIAN PROFESSIONAL INSTITUTE OF GEOSCIENCES AND MINING

BRIDGING BETWEEN MRC CODE AND NATIONAL CODE

THE MONGOLIAN PROFESSIONAL INSTITUTE OF GEOSCIENCES AND MINING

 THANK YOU.

SOURCE: WWW. CRIRSCO.COM

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