The South African Code for the Reporting of Exploration Results

SAMREC Code Summary

The South African Code for the Reporting of Exploration Results in terms of Mineral Resources and Mineral Reserves was established and modelled in the year 1998 after the JORG which is the Australian Mineral Resource and Ore Reserves Code. The basic aim of the code is to set out the minimum standard recommendations and guidelines for every public reporting of an exploration project. The code was drawn up by the Working Group of the SSC Committee, with the help and support of the South African Institute of Mining and Metallurgy (SIAMM) and the Geological Society of South Africa (GSSA) (SAMREC, 2007).

The SAMREC Committee is comprised of various stakeholders such as the SACNASP which represents the SAIMM and the Johannesburg Stock Exchange (JSE). The main purpose of the SAMREC Code is to provide investors and their advisors the correct feasible information and satisfying regulatory requirement. This encourages companies to deliver information which is comprehensive, relevant, and material information which is necessary for a reasonable and well-balanced exploration results in their reports. (SAMVAL, 2008)

The code lays down a profound foundation for meticulous, unmistakable and ethical report of all styles by this it gives great serve which is not misleading regarding the mineralisation being reported and this also provides the competent persons the important code to subject to. SAMREC Code is based on three pillars which are the basic principles of an exploration report (prepared in terms to address circumstances uniquely to South Africa.) (SAMREC, 2007) (SAMVAL, 2008)

• Transparency, provides sufficient information and presentation which is clear and understandable and not to mislead.

• Materiality contai...

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...o the parties involved with the assignment;

• A statement that the Competent Valuator has (or has not) made a personal inspection of the property; and

• A record of the Competent Persons and experts who have contributed to the Valuation.

• Market Assessment

A comprehensive market assessment should be presented.

• Audits or Reviews

The results of any audits or reviews of the Mineral Asset Valuation should be presented, together with a commentary on the findings.

It is very important for every company or competent valuator to comply with the SAMREC Code. This provides a perfect platform for a successful exploration project.

Works Cited

SAMREC. (2007). The 2007 SAMREC for Reporting Of Exourcesploration Results, Minerals Res. South Africa: n/a.

SAMVAL. (2008). The SAMVAL CODE. South Africa: The South African Mineral Asset Valuation Working Group.