From 1972 until 1989 when operations were suspended Bougainville Copper Limited (BCL, owned 53.58 per cent by Rio Tinto Limited) operated a large open pit mine and processing facility at Panguna on Bougainville Island, Papua New Guinea producing copper concentrate containing significant quantities of gold and silver.BCL has a stated vision of recommencing operations at Panguna. In 2008, Rio Tinto, on behalf of BCL, conducted a multi-disciplinary study to assess the technical and financial viability of redeveloping the Panguna operation. One of the key outputs of the study was a Joint Ore Reserves Committee (JORC) Code compliant mineral resource statement based on the existing block model and fundamental data, archived since mine closure._x000D_
Historical data (including the resource block model and drill hole data) was recovered from computer archives by a former Panguna mine employee familiar with the various obsolete data formats, thus maintaining an unbroken chain of custody of the data by Rio Tinto since operations were suspended. No additional data were collected as part of this study.The extensive data and documentation archive facilitated a sufficiently detailed evaluation of the fundamental data and model to support an updated resource statement. Table 1 of the JORC Code was used to guide the model validation process.Reconciliation of blasthole and metallurgical plant data with the reserve model, indicated that the copper and gold drill hole composite database was significantly biased towards underestimation in several key domains due to a combination of the following: mineralisation loss during core loss, core loss (minor), vertical drill holes failing to intersect sufficient subvertical mineralised fractures and veins, drill hole spacing too wide, and variable diamond drill hole core size._x000D_
The resource model evaluation was based on three material types (all previously mined at Panguna), that were defined based on cut-off grade and rock type parameters: direct feed ore - material for delivery directly to the plant, preconcentration and screening ore - subeconomic material beneficiated to produce fines of economic grade, and waste._x000D_
Three pit shells and designs were generated based on three separate sets of economic parameters. These economic parameters were also used to assign material types to the block model. The three resulting models were then evaluated against the corresponding pit shells.Classification of the resource was approached conservatively due to the inherent bias in the drill hole data. Consequently only Indicated and Inferred resources were tabulated.The study highlighted the importance of maintaining detailed documentation pertaining to resource estimates and operational history, particularly reconciliation, and the value that can be added by a simple, low-cost data compilation exercise._x000D_
FORMAL CITATION:Collier, P, Clark, G and Smith, R, 2011. Preparation of a JORC Code compliant resource statement based on an evaluation of historical data - a case study from the Panguna Deposit, Bougainville, Papua New Guinea, in Proceedings Eighth International Mining Geology Conference 2011, pp 409-426 (The Australasian Institute of Mining and Metallurgy: Melbourne).