Reserve Reporting
INTRODUCTION
In March 2006 The London Stock Exchange issued detailed guidelines to companies listed on AIM in the mining and oil & gas sectors in order to assist them when reporting to the market any update regarding mineral reserves and resources.
This page details the classifications used by ATH Resources when reporting on reserves to the market.
DETAILS
Mineral reserves and resources are divided in to one of five categories, as noted below, in rising order of importance:
| “inferred resource” |
that portion of a coal resource for which quantity and quality can only be estimated with a lower degree of certainty than for an indicated resource. It is inferred from geological evidence and from assumed (but not verified) geological continuity |
| “indicated resource” |
that portion of a coal resource for which quantity and quality can only be estimated with a lower degree of certainty than for a measured mineral resource because the sites used for inspection, sampling and measurement are too widely or inappropriately spaced to enable the material or its continuity to be defined or its grade throughout to be established |
| “measured resource” |
that portion of a coal resource for which tonnage or volume can be calculated from outcrops, pits, trenches, drill-holes or mine workings, supported where appropriate by other exploration techniques. The sites for inspection, sampling and measurements must be so spaced that the geological character, continuity, grades and nature of the material are so well defined that the physical character, size, shape, quality and mineral content will be established with a high degree of certainty |
| “probable reserves” |
those measured and/or indicated resources which are not yet “proven” but of which detailed technical and economic studies have demonstrated that extraction can be justified at the time of the determination and under specified economic conditions |
| “proven reserves” |
those measured resources of which detailed technical and economic studies have demonstrated that extraction can be justified at the time of the determination and under specified economic conditions |
These terms being defined by The Institute of Materials, Minerals and Mining, the leading international professional body for the advancement of materials, minerals and mining.
Mineral reserves are assessed internally by Peter Morgan, Development Director for the opencast business, assisted by other relevant staff. Peter has worked in the mineral industry for some 27 years and for the 17 years, prior to joined ATH Resources in January 2006, at Wardell Armstrong, an international mining engineering and environmental consultancy. As Technical Director he was responsible for management of the largest private sector mineral portfolio in the UK and has extensive experience in all aspects of mineral development. Peter is a Chartered Mineral Surveyor and Chartered Mining Engineer who is a fellow of the Royal Institution of Chartered Surveyors (FRICS) and a fellow of The Institute of Materials, Minerals and Mining (FIMMM) and accordingly is considered by ATH Resources to be a suitably qualified person to undertake this assessment.
ATH Resources, when reporting mineral reserves to the market, only reports in respect of proven and probable reserves as it is these reserves that the company believes underpins the current mining business.
Typically a proven reserve is taken as being one for which the proposed site has been fully drilled and assessed for coal volume and quality and the site has all necessary permissions and consents in place to enable work on site to commence. A probable reserve is one for which the site has been fully drilled and typically is awaiting the submission or granting of planning permission or other permits.
Coal volumes are stated after taking account of mining losses and are known as recoverable or run of mine tonnages.
Projects for future sites are constantly being identified, evaluated, assessed, drilled and designed. It is felt that as these projects may come and go for reasons of economic viability or for other reason it would be misleading to the market to include mineral resources in our reserve updates.
As at 30 March 2008 the Group had the following reserves:
| Site |
Proven |
Probable |
Total |
| |
Tonnes |
Tonnes |
Tonnes |
| |
000 |
000 |
000 |
| |
|
|
|
| Skares Road |
169 |
625 |
794 |
| Laigh Glenmuir |
227 |
|
227 |
| Grievehill |
1,016 |
|
1,016 |
| Glenmuckloch |
2,222 |
700 |
2,922 |
| Muir Dean |
2,275 |
|
2,275 |
| Rigg |
|
600 |
600 |
| Total Surface Mining |
5,909 |
1,925 |
7,834 |
| |
|
|
|
| Grimethorpe |
110 |
|
110 |
| Langton |
|
475 |
475 |
| Total Regeneration |
110 |
475 |
585 |
| |
|
|
|
| Group reserves |
6,019 |
2400 |
8,419 |
The total reserves may have been updated by subsequent announcements and users should check the relevant pages of the website.
Page last up-dated: 9 June 2008
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