A Framework for Presenting and Benchmarking Resource Projects

Investors and other stakeholders assessing the risk, opportunity and relative value associated with a resource project need to appreciate the project in its correct context. Errors, omissions, biased reporting or conflicting information in project reporting may lead to a misinterpretation of technical and financial results, resulting in biased estimates or assumptions on project value.

This paper provides a simple ‘Resource Project Framework’ for presenting a project’s status that may be readily benchmarked against other similar projects and to illustrate the stages required to advance the project outcomes to higher levels of certainty. The framework draws on definitions and guidelines readily available in various resource industry reporting codes and public company reporting requirements.

The framework assesses three key areas for placing a resource project in its correct relative context, namely:

1. the project development stage

2. the confidence in the Exploration Results, Mineral Resources and/or Ore Reserves

3. the level of accuracy, precision and confidence in the technical and economic studies supporting the reported results or options for the project.

The application of the Resource Project Framework is illustrated using two project examples, one from publicly reported company project releases and the other for two development projects.