The basic resource equations (BRE and BR2RE)- a new approach to the definition and reconciliation of mineral resources and reserves at Anglo American Platinum Ltd

Definition of mineral resources and reserves forms the basis for effective mine planning and reliable public reporting of mineral assets. Historically, the mineral resource and reserves declaration process has been the domain of the geology and surveying disciplines, with the declaration of the reserves by the surveyor being based on the application of modifying factors to the declared resources available for mining. As part of an ongoing process to improve efficiency, reliability, and reproducibility of results, this approach has been revised and enhanced through the introduction of a revised process and reconciliation tools. The revised approach to reserve definition is based on the definition of scheduled resources, at an appropriate confidence estimate in the context of an approved business plan, over the anticipated life of the mineral asset being applied to define reserves. This planning and scheduling is developed, during the annual business planning process, by the mine planning department using tools such as CADSMine. The scheduled area together with the application of revised modifying factors is tabulated in the BME (basic mine equation) and reflects the mine production plan over time. Simplification of the modifying factors to dilution and losses underpins the simple yet robust approach to improved definition of reserves in this process and in the basic resource to reserve equation (BR2RE). Dilution intrinsically affects grade but not metal content, whereas the losses reflect both the efficiency of mining and planning and are reflected in metal losses, area losses, or both. Reconciliation of the derived 'resource converted to reserve' area (which is based on the business plan from CADSMine) versus the 'resource available for mining' (which is derived from Datamine) underpins the robustness and auditability of the reserves declaration. This R&R accounting and reconciliation approach is transparent and facilitates interrogation of the logic and rationale of long-term business planning and project strategy. These numbers are processed and reported in the logic of the basic resource equation (BRE), which also addresses aspects such as white areas (future and historic), tail management, and partial extraction (non-scheduled pillars, etc.) in compliance with SAMREC definitions. Areas that do not have the necessary confidence and data support to be declared as resources find their space as pre-resource (outside the domain of public reporting), outlini