Wellsite JORC Training TEC Part1

Well Site Training -
JORC Code Requirements
TELEN ECO COAL

November 2007
Presentation Content
• There are 3 topics included in this

presentation:
1. Reliable Data
2. Value of the Geologist
3. The JORC Code

1st Topic
• Reliable Data
Reliable Data
• JORC Code requires Resource estimation to be
based on RELIABLE data.
• Borehole data must be RELIABLE:

– Accurate borehole collar survey
– Detail geologist log description
– Photography of all core
– Downhole geophysical logs
– Careful sampling of coal cores
First Rule
A geologist must be on the well-site at ALL TIMES whilst

the rig is drilling.
– The geologist must record all information about the

drilling progress that may be of significance.
– For example, if there is loss water circulation in the
borehole, this may be related to a structural zone that
may impact on the mine.
– Once the borehole is complete, this information is lost
unless the geologist is on the well-site to record it.
Valuable Information
• All information about the drilling progress is

valuable.
• Need to record:
– Change of drilling bits (indicates strength of
strata)
– All problems with the drilling of the borehole
(loss circulation, rods stuck, gassy smell,etc)
– Unusual rates of penetration of drilling
– Problems with wireline logging of the borehole
– Condition of core (broken, fractured, etc).
Borehole Survey
• Well Site may have been surveyed prior to

drilling
• Well Site MUST be surveyed on completion of
borehole
• If using handheld GPS, take 3 readings
• If using theodolite, ensure survey traverse is
CLOSED and adjusted accordingly.
Geologist Log
• There are 2 types of samples – core and chips.
Geological Information
• Basic information from 1m CHIP samples
– Interval
– Rocktype e.g. sandstone, mudstone, coal
– Colour
– Weathered or fresh rock (top section of hole)
– Grainsize (if possible)
• Detail information from CORE sample
– Core must remain in core barrel ‘splits’ for logging to
ensure minimal disturbance
– Interval of cores
– Accurate Core Recovery measurement
Geologist Log
Non Coal
– Interval
– Rock type
– Colour
– Grain size
– Roundness
– Sorting
– Sedimentary structure
– Fossil and mineral (especially pyrite)
– Grade of weathering (if any)
Coal
- Refer to Australian Standard below
BRIGHTNESS COAL DESCRIPTION
90 to 100% Bright Coal (Vitrinite)
70 to 90% Bright with minor dull bands
50 to 70% Bright and dull
30 to 50% Dull with numerous bright bands
10 to 30% Dull with minot bright bands
0 to 10% Dull Coal (Inertinite)

Core Logging
• Geotechnical Information
– state of core (solid, broken)
– Rock strength, RQD
– Fractures – per metre, open/closed, mineralisation,
angle.
– Point load strength tests (if available)
Core Photography
• Preferably in core barrel ‘splits’

• Otherwise, in core tray prior to sealing core
• Must use label showing:
– 1 metre rule
– Borehole name
– Depth of start and end of core run
– Date (optional)
Core Handling
• Time to complete core measurement, geologist

logging and core photography should be less
than 30 minutes
• Coal core MUST be wrapped in plastic wrap at
completion of above steps, and before
transferring core from splits to core tray.
• This ensures minimal moisture loss in order to
determine In-Situ (Total) Moisture of coal
• Solid non-coal core in lengths of 40 – 45cm
should be wrapped in plastic wrap for
subsequent geotechnical testing.
Geophysical Logs
• Every borehole MUST be logged with Caliper,

Gamma and Density logs
• If not logged, borehole data is deemed to be
NOT reliable and therefore cannot be included
for JORC Resource estimation.
• Core recovery must be determined before
drilling rig is removed from well site
• Neutron and Resistivity logs are useful for
porosity and weathering.
• Sonic log is valuable in determining rock
strength
Core Recovery
• JORC requires 95% recovery of coal seam

• This ensures coal analyses are truly accurate
and therefore reliable
• For thick coal seams (greater than 5m), a
recovery of 90% would be considered
acceptable as reliable data.
Sampling
• Samples should include the plastic wrap around

the core to ensure all moisture is captured for
testing Total Moisture
• Plastic wrap should never be removed from
core – if it is cut open to view the core, it should
be re-sealed with sticky tape.
• Sample bags must be sealed to retain moisture.
• Sample tags should include Sample number,
Borehole name, seam name, sample depth,
sample bag number (e.g. 2 of 3)
2nd Topic
• The Value of the Geologist

Value of the Geologist
• Every mining company is valued based on
minerals in the ground – No minerals, $0
• Geologists estimate the value of the minerals in
the ground
• Therefore, geologist is the most valuable
person in any mining company
• Get it wrong, we can bankrupt a mining
company and all the employees will have no
income, and many families will suffer
• For example, a $200million project is at risk if
the geologist interprets the wrong information
about the coal quality
Value of the Geologist
• Data is the basis of geologist’s Resource
estimation
• If quality of data is good, estimate is reliable
• Data is the basis of determining the value of a
mining company
• Therefore, data is very valuable and is the
responsibility of every geologist
• Therefore, geologist is very valuable.
• Should communicate with the upper
management to ensure they appreciate the risk
value of a Resource estimate.
3rd Topic
• JORC Code
JORC Code
• The JORC Code is a tool to help the geologist to

communicate the risk involved in a mining
project to financial decision makers who do not
understand geology
• If the Resource estimate is based on poor or
inadequate data, the risk is high
• Abundant and reliable data will produce a low
risk (more accurate) Resource result
• Investors understand risk.
JORC Code – Background
THE 2004 AUSTRALASIAN CODE FOR

REPORTING
EXPLORATION RESULTS,
MINERAL RESOURCES AND
ORE RESERVES
What JORC Code Does
• Sets minimum standards for public reporting of Exploration
Results, Resources and Reserves
• Provides a code (and guidelines) for classification of

tonnage/grade estimates according to geological
confidence and technical/economic considerations
• Describes the qualifications and types of experience

required to be a Competent Person
• Provides a summary list of main criteria to be considered

when preparing reports on exploration results, Resources
and Reserves
What JORC Code Does Not Do
• Regulate the procedures used by Competent

Persons to estimate and classify Resources and
Reserves (methodology)
• Regulate companies’ internal classification or

reporting systems
The Principles Governing JORC Reports
• 'Transparency' requires that the reader of a Public Report is

provided with sufficient information, the presentation of which
is clear and unambiguous, to understand the report and is not
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 the report, for the purpose of making a reasoned and
balanced judgement regarding the mineralisation being
reported.
• 'Competence' requires that the Public Report is based on work

which is the responsibility of a suitably qualified and
experienced person who is subject to an enforceable
professional code of ethics.
JORC Classification
The Benefits of JORC Reporting
• Provides an internationally recognized standard
for potential investors and financial institutions
to readily evaluate a mining company’s worth in
terms of its Resources and Reserves.
• Provides a clear understanding to the

company’s management of the level of
CONFIDENCE of their internal estimation of
Resources and Reserves and therefore an
understanding of the level of FINANCIAL RISK
involved in the project.
JORC Drilling Program
• MUST BE PLANNED CAREFULLY

– EXPENSIVE AND CRUCIAL
• REQUIRED TO DELINEATE (For Coal)

– NUMBER OF POTENTIAL SEAMS
– THICKNESS OF EACH SEAM
– INTERBURDEN VARIATIONS BETWEEN SEAMS
– CHANGES IN SEAM DIP
– COAL QUALITY IN MORE DETAIL
Strategy for JORC Reporting
• FREQUENCY OF REPORTING – EVERY 2 YEARS
– CONSIDER DRILLING PROGRESS
– TOO MUCH DATA – TO BIG A TASK
• 1ST REPORT – USING SRK AND TRAINING STAFF
• 2ND REPORT – USING STAFF AND SRK ASSISTING
• 3RD REPORT – USING STAFF AND SRK AUDITING

THANK YOU

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Well Site Training -

JORC Code Requirements

TELEN ECO COAL

• There are 3 topics included in this

2. Value of the Geologist

3. The JORC Code

• Borehole data must be RELIABLE:

A geologist must be on the well-site at ALL TIMES whilst

– The geologist must record all information about the

• All information about the drilling progress is

• Well Site may have been surveyed prior to

90 to 100% Bright Coal (Vitrinite)

70 to 90% Bright with minor dull bands

50 to 70% Bright and dull

30 to 50% Dull with numerous bright bands

10 to 30% Dull with minot bright bands

0 to 10% Dull Coal (Inertinite)

• Preferably in core barrel ‘splits’

• Time to complete core measurement, geologist

• Every borehole MUST be logged with Caliper,

• JORC requires 95% recovery of coal seam

• Samples should include the plastic wrap around

• The Value of the Geologist

• The JORC Code is a tool to help the geologist to

THE 2004 AUSTRALASIAN CODE FOR

• Provides a code (and guidelines) for classification of

• Describes the qualifications and types of experience

• Provides a summary list of main criteria to be considered

• Regulate the procedures used by Competent

• Regulate companies’ internal classification or

• 'Transparency' requires that the reader of a Public Report is

• 'Materiality' requires that a Public Report contains all the

• 'Competence' requires that the Public Report is based on work

• Provides a clear understanding to the

• MUST BE PLANNED CAREFULLY

• REQUIRED TO DELINEATE (For Coal)

• 1ST REPORT – USING SRK AND TRAINING STAFF

• 2ND REPORT – USING STAFF AND SRK ASSISTING

• 3RD REPORT – USING STAFF AND SRK AUDITING

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