The following piece is repeated from an AMC Consultants newsletter. I make bold to post it here as, in my opinion, it establishes a standard of care that should constitute standard practice. The original is by Pat Stephenson, Principal Geologist at AMC.

When AMC receives a mineral resource model, a series of checks are undertaken, depending on the use to which the model will be put. This is done for quality control purposes and to avoid incurring costs on the client’s behalf for work based on an incomplete or incorrect model.

The starting point in every case is a copy of the resource model, the drill hole database from which the model was derived and a written report detailing the resource estimate. AMC then loads and evaluates the model, checking that the evaluation provided matches the tonnes and grade reported by the client. AMC will do enough work to ensure that it understands how the model was created and the purpose for which it was created. It is essential that the model can be discussed with the geologist who prepared it.

When AMC is required to accept Competent Person responsibility for work based on the resource model, such as when preparing a publicly reported ore reserve estimate, additional work is required. AMC will then review the model and its documentation to a level sufficient to satisfy the requirements of the JORC code with respect to Competent Person responsibility. Any issues that would prevent the AMC consultant from signing off as a Competent Person are immediately referred to the client.

In other cases, such as mine design work where AMC will not be taking Competent Person responsibility. AMC will review the model and its documentation to a level sufficient to be confident that the work can proceed and will not be fatally flawed because of problems with the model. Again, any concerns are referred to the client.

If the client has specifically instructed AMC not to review the resource model then this will be stated in the scope of work and will also be stated in a disclaimer in AMC's report. This situation is not desirable as it often leads to high costs for wasted mine planning effort, which the client incurs before errors in the model are discovered. Of course in this situation an AMC consultant could not be Competent Person for an ore reserve estimate derived from the resource model.

Clause 8 of the JORC Code requires the client to obtain AMC’s written consent to the form and context of any inclusion of AMC's work in a public report. There is now a Competent Person consent form available from the ASX at http://www.asx.com.au/.