MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT | SOCIALIST REPUBLIC OF VIETNAM |
No. 60/2017/TT-BTNMT | Hanoi, December 08, 2017 |
CIRCULAR
CODIFICATION OF RESERVE AND SOLID MINERAL RESOURCES
Pursuant to the Law on Minerals dated November 17, 2010;
Pursuant to Decree No.158/2016/ND-CP dated November 29, 2016 of the Government on elaborating to Law on Minerals;
Pursuant to Decree No. 36/2017/ND-CP dated April 04, 2017 of the Government on functions, tasks, powers, and organizational structure of Ministry of Natural Resources and Environment;
At request of Chief Officer of the Council for Evaluation of National Reserves, General Director of Department of Geology and Minerals of Vietnam, and Director of Department of Legal Affairs;
Minister of Natural Resources and Environment promulgates Circular on codification of reserve and solid mineral resources.
Article 1. Scope
This Circular prescribes codification of reserve and solid mineral resources in base geological survey of minerals and mineral-related activities.
Article 2. Regulated entities
This Circular applies to mineral authorities; organizations and individuals conducting base geological survey of minerals and mineral-related activities.
Article 3. Term interpretation
In this Circular, terms below are construed as follows:
1. “solid mineral resources” mean a collection of useful solid minerals that are located in or on the surface of the Earth, come in shape, quantity, and quality satisfactory to minimum requirements for immediate or future extraction or use of these mineral in part or in whole. Solid mineral resources include proved solid mineral resources and probable solid mineral resources.
2. “proved solid mineral resources” mean solid mineral resources that have been evaluated, surveyed, located, and identified in terms of distribution, form, quantity, quality, and typical geological properties with level of confidence ranging from certainty to estimation.
3. “probable solid mineral resources” mean solid mineral resources that are probable in the base geological survey of minerals on the basis of prerequisites and favorable geological conditions that allow the formation of minerals or suggested from structures that discover minerals with level of geological confidence ranging from to hypothesis to speculation.
4. “solid mineral resource reserve” means a part of the proved solid mineral resources that have been surveyed, expected to be extracted and processed to produce with economic effectiveness in practical conditions at the time of calculating the reserve.
Article 4. Requirements for calculation of reserve and solid mineral resources
1. Reserve and solid mineral resources shall be calculated separately for different types of minerals depending on presence of minerals without taking into account loss that occurs during extracting and processing. For mines that produce multiple minerals, calculate reserve and resources of primary minerals, secondary minerals and reserve, resources of primary useful components and secondary useful components.
2. Reserve and solid mineral resource shall be calculated in weight or volume depending on use demands.
3. Quality of solid mineral resources shall be identified for solid mineral resources in natural state without taking into account the reduction caused by the processing; depending on use purposes and processing technology and taking into account the ability to recover and utilize useful components.
Article 5. Criteria for classifying reserve and solid mineral resources
1. Codification of reserve and solid mineral resources shall be performed by combining 3 criteria (economic effectiveness, technical and technological feasibility, geological confidence), to be specific:
a) Economic effectiveness shall be separated into 3 categories: with economic viability (assigned to number 1), with potential economic viability (assigned to number 2), and undetermined economic viability (assigned to number 3);
b) Technical and technological feasibility shall be separated into 3 categories: feasibility assessment (assigned to number 1), pre-feasibility assessment (assigned to number 2), and overall assessment (assigned to number 3);
c) Level of geological confidence is separated into 4 categories: assured (assigned to number 1), reasonably assured (assigned to number 2), estimated (assigned to number 3), and prospective (assigned to number 4). Prospective level (number 4) is divided into 2 sub-categories: hypothesis (4a) and speculation (4b).
2. The code of reserve and solid mineral resource shall be determined and arranged based on the digits in order of economic viability, technical and technological feasibility, and geological confidence under Clause 1 of this Article.
Article 6. Level of reserve and level of solid mineral resources
1. There are 3 levels of mineral reserve:
a) Reserve level 111;
b) Reserve level 121;
c) Reserve level 122.
2. There are 6 levels of proved solid mineral resources:
a) Resource level 211;
b) Resource level 221;
c) Resource level 222;
d) Resource level 331;
dd) Resource level 332;
e) Resource level 333.
3. There are 2 levels of probable solid mineral resources:
a) Resource level 334a;
b) Resource level 334b.
Article 7. Requirements for reserve and solid mineral resource levels
1. Reserve level 111
Reserve level 111 is identified within the area limited by prospecting structures and exploratory structures. Reserve level 111 must meet the following requirements:
a) Regarding geological assessment
Reserve level 111 refers to reserve that has been prospected and identified in terms of shape, size, dip, and ore body geological structure. Minerals with economic value, layers, lens, country rock, and the unqualified parts in the ore body are separated and located. Quality and technological properties of minerals have been identified. Structural hydrographic geology, geology conditions, and extraction conditions have been researched in details and sufficient for mine design and extraction.
Level of confidence of the reserve is guaranteed at least 80%.
b) Regarding technical and technological feasibility assessment
Mine investment and extraction projects have been developed to prove the rationality behind the use of selected technical - technological solutions for mineral extraction, segregation, and processing, exhaustive, extensive, and efficient use of mineral resources, environmental protection, and legitimacy. For mines that were and are being extracted, mine extraction reports are also required.
c) Regarding economic viability
Report on mine extraction result or reports on mine extraction investment projects prove the enterprise economic viability and national economic viability brought about by investment in extraction and processing of minerals of the mines at the time of making the assessment.
2. Reserve level 121
Reserve level 121 is identified within the area limited by exploratory structures. Reserve level 121 must meet the following requirements:
a) Regarding geological assessment
Geological assessment of reserve level 121 is similar to that of reserve level 111.
Level of confidence of the reserve is guaranteed at least 80%.
b) Regarding technical and technological feasibility assessment
Pre-feasibility reports for mine extraction investment projects or reports on sample technology research results have been produced to prove the rationality behind the use of selected technical and technological solutions for extracting and processing minerals, and extensive, exhausted, efficient use of mineral resources, environmental protection, and the need for further investment in feasibility of mine extraction projects.
c) Regarding economic viability
Pre-feasibility reports of mine extraction investment projects or comparison with mines that were and are being extracted under similar parameters proves the economic viability brought about by further investment in feasibility research for mine extraction projects at the time of making assessment.
3. Reserve level 122
Reserve level 122 is identified within the area limited by exploratory structures and extrapolated from geological, geophysics, and geochemical documents within certain limits. Reserve level 122 must meet the following requirements:
a) Regarding geological assessment
Geological prospecting results clarify basic characteristics regarding structure, quantity, dip, and shape of the ore body (lens, vein, vein system, etc.), identify, estimate basic configurations of the ore body such as: size, shape, dip, average density, and changes of density of the ore body; average quantity and size of layers, lens, country rock, and unqualified parts within ore body;
Basic characteristics regarding mineral quality, segregation, processing, and retrieval of mineral products have been clarified. Basic characteristics regarding hydrographic geology-structural geology conditions and other technical mine extraction conditions have been clarified. May excerpt data of similar mines that were and are being extracted to prove or verify potential industrial value of mineral mines.
Level of confidence of the reserve is guaranteed at least 50%.
b) Regarding technical and technological feasibility assessment
Requirements for technical and technological feasibility assessment of reserve level 122 are similar to those of reserve level 122. Since the geological confidence of reserve level 122 is lower than that of reserve level 121, risk levels of mineral extraction investment projects may be affected.
c) Regarding economic viability
Pre-feasibility reports of mine extraction investment projects identify economic viability brought about by further investment in prospecting and extracting mines at the time of making the assessment.
If both feasibility reports and pre-feasibility reports of mine extraction investment projects are not available, reserve levels 121 and 122 shall be identified based on the reserve calculation presented in reports on mineral prospecting results.
4. Resource levels 211, 221, and 331
Resource levels 211, 221, and 331 are identified within the area limited by exploratory works.
a) Regarding geological assessment
Geological assessment of resource levels 211, 221, and 331 are similar to that of reserve level 111.
Minimum level of geological confidence of resources is 80%.
b) Regarding feasibility assessment and economic viability
Resource level 211: means the resources whose extracted and processed minerals have been proven by feasibility study of mine extraction investment project to be not economically viable under technological, economic, environmental conditions and other conditions at the time of making the assessment. Meanwhile, future technological innovation, reduction of production costs, increase of mineral ingredient prices, and/or change to economic, environmental, legal conditions may yield economic viability;
Resource level 221: means the resources whose extracted and processed minerals have been proven by pre-feasibility study of mine extraction investment project to be not economically viable at the time of making the assessment Meanwhile, future scientific - technological advances, scarcity, increase of mineral product price, and/or change to socio-economic indicators may yield economic viability;
Resource level 331: means the resources that have been subject to general extraction research; it is unclear at the time of making the assessment whether the extraction and processing of minerals from these resources will yield economic viability or potential economic viability.
5. Resource levels 222 and 332
Resource levels 222 and 332 are identified within the area limited by exploratory structures and extrapolated from geological, geophysics, and geochemical documents within certain limits.
a) Regarding geological assessment
Geological assessment of prospected resources is similar to that of reserve level 122.
Minimum level of geological confidence of resources is 50%.
b) Regarding technical and technological feasibility and economic viability
Resource level 222: means the resources whose extracted and processed minerals have been proven by pre-feasibility study of mine extraction investment project to be not economically viable at the time of making the assessment but potentially economically viable in the future;
Resource level 332: means the resources that have been subject to general extraction research; it is unclear at the time of making the assessment whether the extraction and processing of minerals from these resources will yield economic viability or potential economic viability.
6. Resource level 333
Resource level 333 is identified within the area that has favorable geological properties for the creation of minerals based on geophysics, geochemical - mineral research results and single drilling, extraction works.
a) Regarding geological assessment
Resource level 333 means the resources that are preliminarily assessed and identified in terms of shale, dips, and distribution of ore body. Quality of minerals shall be determined based on sampling results in natural outcrops, geological structures or extrapolated from documents on adjacent segments with a more detail geological research.
Minimum geological confidence of the resources is 20%.
b) Regarding technical and technological feasibility and economic viability
Resource level 333: means the resources that have been subject to general extraction assessment; it is unclear at the time of making the assessment whether the extraction and processing of minerals from these resources will yield economic viability or potential economic viability.
7. Probable solid mineral resource
Probable solid mineral resources are hypothesized or speculated from prerequisites and favorable geological properties that facilitate the creation of minerals on the basis of basic geological investigation documents on mineral resources. Probable resources are identified within surface are of ore body, regions, fields from research on geophysics, geochemical - mineral, natural outcrops, and extraction structures. Quantity of probable resources is calculated using quantitative mineral estimation methods that utilize data of mineral mines with equivalent industrial value within the mining zones, mining regions, etc.
Depending on level of base geological survey regarding mineral resources, probable resources are divided into:
a) Resource level 334a: means the solid mineral resources that are primarily hypothesized based on 1/50.000 - 1/25.000 (or greater) ratio base geological survey regarding mineral resources that suggest prerequisites and favorable geological conditions for mineral generation. In addition, resource level 334a can also be hypothesized from comparison with mines that were and are being prospected, surveyed with similar geological properties or extrapolated from documents of adjacent mining area with a more detail geological assessment.
b) Resource level 334b: means the solid mineral resources that are speculated primarily during 1/200.000 - 1/50.000 ratio geological survey of the area or speculated from comparison with areas where minerals have been discovered.
Article 8. Codification of reserve and solid mineral resources in multi-mineral mines
For multi-mineral mines, minerals and useful components shall be placed in the same reserve level or resource level; secondary minerals and useful components shall be placed in the same level or lower depending on level of research, distribution, and recovery ability.
Article 9. Relationship between reserve and solid mineral resources
Reserve levels 111, 121, 122 and resource levels 211, 221, 222, 331, 332 are interchangeable in case of changes to economic factors, market, extraction techniques or technology, segregation, processing, environment, and regulations according to Appendix I attached hereto.
Article 10. Entry into force and responsibility for implementation
1. This Circular comes into force from January 26, 2018.
2. This Circular replaces Decision No. 06/2006/QD-BTNMT dated June 7, 2006 of Ministry of Natural Resources and Environment.
3. For minerals that are not regulated in terms of exploration and codification of reserve and resources, comply with this Circular; reference network of exploratory structures is provided under Appendix II attached hereto.
4. The Office of Council for Evaluation of National Reserves and Department of Geology and Minerals of Vietnam are responsible for guiding and inspecting implementation of this Circular.
5. Difficulties that arise during the implementation of this Circular should be reported to the Ministry for consideration./.
| PP. MINISTER |
APPENDIX I
RELATIONSHIP BETWEEN RESERVE AND SOLID MINERAL RESOURCES
(Attached to Circular No. 60/2017/TT-BTNMT dated December 8, 2017 of Ministry of Natural Resources and Environment)
Reserve level and resource level | Requirements for change | Reserve level and resource level |
Reserve levels 111 and 121 | Have been approved and acknowledged by competent authority; are considered by mine extraction investment projects to not yield economic viability or yield economic viability but are not allowed to be extracted due to national defense, environment, or legal issues | Resource levels 211 and 221 |
Reserve level 122 | Has been approved and acknowledged by competent authority; is considered by mine extraction investment projects to not yield economic viability or yield economic viability but are not allowed to be extracted due to national defense, environment, or legal issues | Resource level 222 |
Resource levels 221 and 331 | Have been acknowledged by competent authority; are considered by mine extraction investment projects to yield economic viability and are integrated for design and extraction | Reserve level 121 |
Resource levels 222 and 332 |
| Reserve level 122 |
APPENDIX II
REFERENCE NETWORK OF EXPLORATORY STRUCTURES OF SOLID MINERALS
(Attached to Circular No. 60/2017/TT-BTNMT dated December 8, 2017 of Ministry of Natural Resources and Environment)
No. | Types of minerals | Reserve level | Type of exploratory structures | Distance between exploratory structures (m)* | Distance between exploratory structures (m)* | Distance between exploratory structures (m)* | Distance between exploratory structures (m)* | Distance between exploratory structures (m)* | Distance between exploratory structures (m)* | Distance between exploratory structures (m)* | Distance between exploratory structures (m)* | |||||||
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| Type of mines | Type of mines | Type of mines | Type of mines | Type of mines | Type of mines | Type of mines | Type of mines | |||||||
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| I | I | II | II | III | III | IV | IV |
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| Strike line | Dip | Strike line | Dip | Strike line | Dip | Strike line | Dip |
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1 | Manganese |
| Trench, well | 100+ 10 |
| 50+10 |
| 40+10 |
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| 121 | Drill, furnace | 50+10 | 50+10 | 100+ 10 | 50+10 |
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| 122 |
| 100+ 10 | 50+10 | 200+ 10 | 50+10 | 75+ 10 | 30+10 |
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2 | Antimony, Molybdenum |
| Trench, well |
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| 50+10 |
| 30+10 |
| 20+10 |
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| 121 | Drill, furnace |
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| 50+10 | 30+10 |
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| 122 |
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| 100+10 | 50+ 10 | 50+10 | 30+10 | 20+10 | 20+10 |
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3 | Nickel |
| Trench, well |
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| 50+10 |
| 30+10 |
| 20+10 |
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| 121 | Drill |
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| 50+10 | 30+10 |
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| 122 |
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| 100+10 | 50+ 10 | 50+10 | 30+10 | 20+10 | 20+10 |
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4 | Tin, natural titanium |
| Trench, well |
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| 50+10 |
| 30+10 |
| 20+10 |
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| 121 | Drill, furnace |
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| 50+10 | 30+10 |
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| 122 |
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| 100+10 | 50+ 10 | 50+10 | 30+10 | 20+10 | 20+10 |
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5 | Silicon |
| Trench, well | 100+10 |
| 100+10 |
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| 121 | Drill | 100+10 | 75+10 | 75+ 10 | 50+ 10 |
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| 122 |
| 150+ 10 | 100+ 10 | 100+10 | 70+10 | 75+ 10 | 50+ 10 |
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6 | Igneous rocks | 121 | Drill | 100+ 25 | 100+ 25 | 50+ 25 | 50+ 25 |
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| 122 |
| 200+ 25 | 100+ 25 | 100+ 25 | 100+ 25 | 50+ 25 | 50+ 25 |
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7 | Sedimentary metamorphic Magnesite |
| Trench, well | 100+ 10 |
| 50+10 |
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| 121 | Drill | 100+ 10 | 50+10 | 50+10 | 50+10 |
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| 122 |
| 200+ 10 | 100+10 | 100+ 10 | 50+10 | 50+10 | 50+10 |
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8 | Rocks for construction | 121 | Drill | 100+ 10 | 100+ 10 | 50+10 | 50+10 |
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| 122 |
| 200+ 10 | 200+ 10 | 100+ 10 | 100+ 10 | 50±10 | 50±10 |
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9 | Pyrophyllite | 121 | Drill | 100+ 10 | 50+10 | 50+10 | 50+10 |
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| 122 |
| 200+ 10 | 100+10 | 100+ 10 | 50+10 | 50+10 | 50+10 |
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10 | Precious stones | 122 | Drill |
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| 25+10 | 10+10 | 10+10 | 10 |
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11 | Semi precious stones and decorative rocks |
| Outcrop, trench | 50+ 25 |
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| 121 | Drill | 50+ 25 | 25+ 25 | 100+25 | 25+ 25 |
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| 122 |
| 100+ 25 | 50+25 | 100+25 | 50+25 | 100+25 | 20+10 |
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12 | Tiling rocks |
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| - Intrusive rocks | 121 | Drill | 100+ 10 | 100+ 10 | 100+ 10 | 50+10 |
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| 122 |
| 200+ 10 | 200+ 10 | 100+ 10 | 100+ 10 | 100+ 10 | 50+10 |
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| - Extrusive rocks | 122 | Measuring station |
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| 50+10 | 50+10 |
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13 | Kaolinite |
| Trench, well | 100 |
| 50+10 |
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| 50±10 |
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| 121 | Drill | 50+10 | 50+10 | 100+10 | 50+10 |
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| 122 |
| 100+10 | 100+10 | 200+20 | 50+10 | 50+10 | 50+10 |
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14 | Pozzolan | 121 | Drill | 50+10 | 50+10 | 100+10 | 50+10 |
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| 122 |
| 100+10 | 50+10 | 200+10 | 50+10 | 50+10 | 50+10 |
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15 | Uranium |
| Trench, well |
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| 25+10 |
| 25 |
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| 121 | Drill |
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| 25+10 | 25+10 |
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| 122 |
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| 50+10 | 50+10 | 50+10 | 25+10 |
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16 | Rare earths |
| Trench, well |
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| 50+10 |
| 25+10 |
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| 121 | Drill |
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| 50+10 | 25+10 |
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| 122 |
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| 100+10 | 25+10 | 50+10 | 25+10 |
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17 | Other metal minerals |
| Trench, well | 50±20 |
| 50±20 |
| 50±20 |
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| 121 | Drill, furnace | 100+10 | 50+10 | 50+10 | 50+10 |
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| 122 |
| 150+10 | 50+10 | 100+10 | 50+10 | 50+10 | 25+10 | 20+10 | 20+10 |
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18 | Other non-metal minerals | 121 | Drill | 50+10 | 50+10 | 100+10 | 100+10 |
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| 122 |
| 100+10 | 100+10 | 200+10 | 100+10 | 50+10 | 50+10 |
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* Note: The reference network of exploratory works is not mandatory in any case. It is recommended that geological structural characteristics of the mine; shape, size, dip of ore body; terrain characteristics, pattern and level of changes to density and quality be thoroughly analyzed to choose the most reasonable network of exploratory structures for the target(s) of exploration.
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