Lesson 2 - PMRC Flashcards
What was the Bre-X Mining Fraud of 1997?
Bre-X Minerals Ltd., a Canadian mining company, falsely claimed to have discovered a massive gold deposit in Busang, Indonesia. In 1997, it was revealed that gold samples had been fraudulently “salted” with external gold to inflate the deposit’s value.
How did the Bre-X scandal impact the global mining industry?
It exposed weak mineral resource reporting standards and highlighted the need for transparent, verifiable, and accountable practices to protect investors and maintain industry integrity.
What is the Philippine Mineral Reporting Code (PMRC)?
A mineral reporting framework modeled after international standards like Australia’s JORC Code and Canada’s NI 43-101, ensuring reliable, transparent, and competent mineral reporting.
What are the main objectives of the PMRC?
Standardize reporting of exploration results, mineral resources, and ore reserves.
Ensure public reports are based on reliable data verified by competent persons (CPs).
Promote transparency, materiality, and competence in mineral reporting.
When was the Philippine Mineral Reporting Code (PMRC) first adopted?
In July 2007, the Geological Society of the Philippines (GSP) adopted the PMRC 2007 Edition, also known as “the Code.”
What significant event occurred on November 22, 2018, regarding the PMRC?
The Philippine Mineral Reporting Code Committee (PMRCC) was established, forming the National Reporting Organization (NRO) to oversee mineral reporting in the country.
What is the primary purpose of the National Reporting Organization (NRO)?
To maintain and improve public reporting standards for Exploration Results, Mineral Resources, Ore Reserves, and metallurgical assessments related to mining in the Philippines through the PMRC 2007.
How does the NRO ensure global alignment?
The NRO ensures that the PMRC is aligned and substantially comparable with internationally recognized reporting standards, such as the International Reporting Template of CRIRSCO.
hat are the five mineral industry-related organizations (Associate Organizations) under the NRO?
Philippine Stock Exchange (PSE)
Chamber of Mines of the Philippines (COMP)
Philippine Mining and Exploration Association (PMEA)
Philippines-Australia Business Council (PABC)
Philippine Chamber of Coal Mines (PHILCOAL)
What significant resolution was passed on December 17, 2020, regarding mineral reporting in the Philippines?
The GSP Board of Trustees approved Board Resolution No. 2020-004, creating the Mineral Reporting Code Committee (MRCC) to fulfill GSP’s obligations to the PMRCC.
Who are authorized to prepare PMRC-compliant public reports on mineral resources?
ACP-Geologists, as authorized by GSP, can prepare PMRC-compliant reports for PSE, SEC, MGB, and possibly DOE in the future.
When did the SEC approve the PMRC 2020 Edition, and what was its impact?
In September 2021, the SEC approved PMRC 2020, replacing PMRC 2007 and instructing the Philippine Stock Exchange (PSE) to implement it immediately.
What is the Philippine Mineral Reporting Code (PMRC) also known as?
It is also called “the Code” and sets minimum standards, recommendations, and guidelines for Public Reporting of Exploration Results, Mineral Resources, and Mineral Reserves in the Philippines.
How does the PMRC compare to global standards?
CRIRSCO’s International Reporting Template (2019)
Australasian JORC Code (2012)
What is the scope of PMRC 2020?
It applies to all solid mineral raw materials for which Public Reporting of Exploration Results, Mineral Resources, and Mineral Reserves is required by any relevant regulatory authority.
What is the definition of a mineral according to PMRC 2020?
Any substance, extracted for value, occuring naturally in or on the Earth, or in tailings, residues or stockpiles, having been formed by or subjected to a geological process but excludes water, oil and gas.
What are examples of minerals covered under PMRC 2020?
Metalliferous minerals, mineralized fill, remnants, pillars, stockpiles, dumps, and tailings
Coal
Industrial minerals, cement feed materials, and construction raw materials
Dimension stone, ornamental and decorative stone
What are the three main categories of mineral reporting under the PMRC?
Exploration Results – Preliminary findings from exploration activities.
Mineral Resources – Mineral concentrations with reasonable prospects for extraction.
Ore Reserves – Economically mineable portions of a mineral resource.
What are Exploration Results, and do they indicate economic viability?
Exploration Results include sampling results, geophysical and geochemical surveys from mineral exploration.
They do not indicate economic viability but provide data for further study.
What are the three sub-classes of Mineral Resources?
Measured Mineral Resources – High confidence, detailed exploration data available.
Indicated Mineral Resources – Moderate confidence, sufficient for preliminary mine planning.
Inferred Mineral Resources – Low confidence, insufficient for economic evaluation.
What distinguishes Ore Reserves from Mineral Resources?
Ore Reserves are the economically mineable portions of Mineral Resources.
They consider technical, economic, legal, environmental, and social factors.
A feasibility study confirms their viability.
What are the two types of Ore Reserves?
Proven Ore Reserves – Highest confidence, derived from Measured Resources.
Probable Ore Reserves – Lower confidence than Proven Reserves, derived from Indicated Resources.
Who is a Qualified Person (QP), and what are their qualifications?
QP is a professional responsible for signing off on mineral reports.
Qualifications:
Minimum 5 years of relevant experience in the commodity and deposit type.
Must be a member of a recognized professional organization (e.g., GSP, PSEM, SMEP).
Accountable for ensuring the accuracy and reliability of reports.
What are the key requirements for public reporting under PMRC?
Reports must be signed by a Qualified Person (QP).
If necessary, a Competent Person’s Report (CPR) must accompany the submission.
Reports must be transparent, verifiable, and comply with regulatory standards.
How do Mineral Resources differ from Ore Reserves?
Mineral Resources: Potential deposits with economic interest, based on geological evidence; not all are economically viable (Inferred, Indicated, Measured).
Ore Reserves: Economically mineable part of Mineral Resources, confirmed by technical and economic studies (Probable, Proven).
