Competent Person Novice Competent Person Novice Competent Person? Interviews • JORC Code Experts • Resource Geologists Online Survey/ Questionnaire • Range of experience • Range of expertise • Range of commodities • Range of contexts • Build on Statistical Reasoning Research JORC Code Competent Persons Assessment • Based on Statistical Reasoning Research • Industry reality check • Rasch Analysis Compete Competent nt Persons Persons A Competent Person is … A mining industry professional who has a mature ability to reason across the JORC Code*, Competent Persons can provide a reasoned analysis of the risks in a project and is able to communicate the material risks (without exclusion) to their peers, management, the board of directors and investors (*including all respective items in Table 1) Interviews • JORC Code Experts • Resource Geologists Online Survey/ Questionnaire • Range of experience • Range of expertise • Range of commodities • Range of contexts • Build on Statistical Reasoning Research JORC Code Competent Persons Assessment • Based on Statistical Reasoning Research • Industry reality check • Rasch Analysis Compete Competent nt Persons Persons Scores scaled to Logits Person ability score Question difficulty score Question references – aligned with difficulty scores Item Difficulty > 1.0 0.3 to 1.0 -1.0 to 0.3 < -1.0 Reasoning Level High Order Mining Reasoning Description High order consideration of mining context and estimation purpose Mining Context Connection of process to Reasoning mining context Process Reasoning Foundation Reasoning Lower level linking of task to process The basics preparation knowledge in resource estimation Item Higher JORC Code Reasoning in line with experts’ expectations Difficulty > 1.0 0.3 to 1.0 -1.0 to Lower/emerging JORC Code Reasoning levels 0.3 < -1.0 Reasoning Level High Order Mining Reasoning Description High order consideration of mining context and estimation purpose Mining Context Connection of process to Reasoning mining context Process Reasoning Foundation Reasoning Lower level linking of task to process The basics preparation knowledge in resource estimation JORC Code Competence “Competence requires that the Public Report be based on work that is the responsibility of suitably qualified and experienced persons who are subject to an enforceable professional code of ethics.” • Minimum 5 years of relevant experience • Member of recognised professional body • Confident to defend an estimate among peers I am sufficiently competent to report under JORC Code Guidelines Experience in years … Minimum 5 years’ Mining Industry Minimum 5 years Estimation Statistic Experience Experience T-Value -1.25 -2.18 p-Value 0.218 0.008 Not Significantly Different Significantly Different Significance at Confidence Level 95% Minimum of 5 years’ Resource Estimation experience increases JORC Code Reasoning levels Mining Industry Experience ~ 10 years Level T-Value -2.70 P-Value 0.010* *p-value < 0.05 so is significantly different from zero Less than a minimum of 10 years’ mining industry experience Is associated with lower levels of JORC Code Reasoning levels Membership of Professional Institute Statistic Membership T-Value -1.21 p-Value 0.232 Significance at Confidence Level 95% Not Significantly Different Membership grade (Fellow or not) Statistic Fellow Member T-Value 1.81 p-Value 0.078 Significance at Confidence Level 95% Not Significantly Different Chartered Professional Status Statistic Chartered Professional T-Value 0.42 p-Value 0.676 Significance at Confidence Level 95% Not Significantly Different Self Assessment Level T-Value 5.42 P-Value 0.000* *p-value < 0.05 so is significantly different from zero Resource Geologists tend to over-estimate their own competency 1.Number of resource estimates generated 2.Number of commodities estimated 3.Number of reconciliation studies 4.Number of commodities for which reconciliation studies have been conducted 21 Basis for “15-2-5” Criteria Resource Geologists who have conducted fewer than 15 models have not yet developed sufficient requisite JORC Code reasoning levels. Resource Geologists who have generated estimates on across fewer than 2 commodities not yet developed sufficient requisite JORC Code reasoning levels. Resource Geologists who have conducted fewer than 5 reconciliations on their own estimates not yet developed sufficient requisite JORC Code reasoning levels. Combined Alternative Minimum Criteria “15-2-5” Criteria Combined Alternative Minimum “15-2-5” Criteria Level T-Value 3.66 P-Value 0.001* *p-value < 0.05 so is significantly different from zero Resource geologists who do not meet the minimum ‘15-2-5’ criteria, and who do not have at least 10 years’ mining industry experience and at least 5 years’ resource estimation experience, will not have developed sufficient JORC Code reasoning levels. Sustained practical application that includes learning from consequences of corrected errors over sufficient duration Mineral Resource Reporting: 15-2-5 criteria 10 years’ mining industry experience 5 years’ resource estimation experience Novice Competent Person Competent Person 15-2-5 Criteria NOT met Novice Experiences 15-2-5 Criteria met High JORC Code Reasoning JORC Code Reasoning developing JORC Code Reasoning Competent Person What is the difference in Competency Development? 15-2-5 Criteria NOT met Novice Experiences 15-2-5 Criteria met Scientific reasoning/thinking At least one semester maths/stats Competent Person High JORC Code Reasoning JORC Code Reasoning On site production experience (reconciliation) Stint duration sufficient to “learn from the consequences of corrected mistakes” Several geological styles/scenarios JORC Code Reasoning developing Peer group learning network High level of technical mentoring Courses timed with onsite supported application 15-2-5 Criteria NOT met Novice Experiences 15-2-5 Criteria met Competency Development Model The JORC System Four Vulnerabilities JORC system 1. Institute switching 2. Legal vulnerability 3. Confidentiality limits firepower 4. Turnaround time (volunteer structure) Four Vulnerabilities JORC system 1. Institute switching 2. Legal vulnerability Sanctioning Process 3. Confidentiality limits firepower 4. Turnaround time (volunteer structure) Key contributions to today’s workshop Professional Competency and Experience Sanction Process JORC Code Competency • Chartered Professional and RPGeo speak to professional competency • Does not imply JORC Code Competency • Duration measure is insufficient • Applied experience • Number of applications • Breadth and depth • “Reconciliation” experience • Relationship between “plan” - “action” – “consequence” • Sanctioning processes make JORC System vulnerable Thank you to: • Contributors (anonymous and known) to the research and their organisations who allowed them time to participate • JORC, AIG and AusIMM for their ongoing interest and engagement • Industry peers and friends for their encouragement • PhD supervisors • Dr Peter Lilly • Dr Llandis Barratt-Pugh