44 2005 NORILSK NICKEL • ANNUAL REPORT •NORILSK NICKEL • ANNUAL REPORT •200545Resource and reserve definitions in accordancewith the JORC CodeTo interpret the classification of the mineral resource and orereserve classification meaningfully, it is a prerequisite that thefollowing mineral resources and ore reserves definitions are fullyunderstood:• A "Mineral Resource" is a concentration or occurrenceof material of intrinsic economic interest in or on the earth'scrust in such form and quantity that there are reasonableprospects for its eventual economic extraction. The location,quantity, grade, geological characteristics and continuityof a Mineral Resource are known, estimated or interpretedfrom specific geological evidence and knowledge.Mineral Resources are subdivided, in order of increasinggeological confidence into Inferred, Indicated and Measuredcategories.• An "Inferred Mineral Resource" is that part of a MineralResource for which tonnage, grade and mineral contentcan be estimated with a low level of confidence. It isinferred from geological evidence and has an assumed, butnot verified, geological and/or grade continuity. It is basedon information gathered through appropriate techniquesfrom locations such as outcrops, trenches, pits, workings anddrill holes which is limited or of uncertain quality and reliability.• An "Indicated Mineral Resource" is that part of a MineralResource for which tonnage, densities, shape, physicalcharacteristics, grade and mineral content can be estimatedwith a reasonable level of confidence. It is based onexploration, sampling and testing information gatheredthrough appropriate techniques from locations such asoutcrops, trenches, pits, workings and drill holes. Thelocations are too widely or inappropriately spaced to confirmgeological and/or grade continuity but are spaced closelyenough for continuity to be assumed.• A "Probable Ore Reserve" is the economically mineablepart of an Indicated, and in some circumstances, aMeasured Mineral Resource. It includes diluting materials andallowances for losses, which may occur when the materialis mined. Appropriate assessments, which may include feasibilitystudies, have been carried out, and include considerationof and modification by realistically assumed mining,metallurgical, economic, marketing, legal, environmental,social and governmental factors. These assessmentsdemonstrate at the time of reporting that extractioncould reasonably be justified.• A "Proved Ore Reserve" is the economically mineablepart of a Measured Mineral Resource. It includes dilutingmaterials and allowances for losses, which may occurwhen the material is mined. Appropriate assessments, whichmay include feasibility studies, have been carried out andinclude consideration of and modification by realisticallyassumed mining, metallurgical, economic, marketing, legal,environmental, social and governmental factors. Theseassessments demonstrate at the time of reporting thatextraction could reasonably be justified.Mineral resources and ore reserves ofStillwater Mining CompanyMineral resources and ore reserves of Stillwater MiningCompany are disclosed as at 31 December 2005 in accordancewith Industry Guide No.7 approved by the Securities andExchange Commission (SEC).Mineral resources and ore reserves of Stillwater MiningCompany are located in the J-M Reef deposit in the BeartoothMountain Range in the center and the south of Montana.As at 31 December 2005, proved and probable reserves ofStillwater Mining Company amounted to approximately 42 milliontonnes with a metal grade of 0.57 ounces per tonne.Palladium and platinum reserves amounted to 24.1 millionounces, with the ratio of palladium to platinum of 3.5:1.Mineral resources and ore reserves ofthe J-M Reef deposit as of 31 December 2005('000 tonnes, '000 ounces or as noted)Volume Average grade Quantity('000 (oz /tonne) ('000 ounces)tonnes)Stillwater mineProved reserves 2,458 0.68 1,664Probable reserves 15,638 0.63 9,812Total proved and probable reserves 18,096 0.63 11,476East Boulder mineProved reserves 1,665 0.47 788Probable reserves 22,190 0.53 11,818Total proved and probable reserves 23,855 0.53 12,606Total reserves ofStillwater Mining CompanyProved reserves 4,123 0.59 2,452Probable reserves 37,828 0.57 21,630Total proved and probable reserves 41,951 0.57 24,082MMC NORILSK NICKEL NOT INCLUDINGGOLD MINING ASSETS (POLUS)8• A "Measured Mineral Resource" is that part of a MineralResource for which tonnage, densities, shape, physical characteristics,grade and mineral content can be estimatedwith a high level of confidence. It is based on detailedand reliable exploration, sampling and testing informationgathered through appropriate techniques from locationssuch as outcrops, trenches, pits, workings and drill holes.The locations are spaced closely enough to confirm geologicaland/or grade continuity.• An "Ore Reserve" is the economically mineable part of aMeasured or Indicated Mineral Resource. It includes dilutingmaterials and allowances for losses, which may occurwhen the material is mined. Appropriate assessments, whichmay include feasibility studies, have been carried out, andinclude consideration of and modification by realisticallyassumed mining, metallurgical, economic, marketing, legal,environmental, social and governmental factors. Theseassessments demonstrate at the time of reporting thatextraction could reasonably be justified. Ore Reserves are subdividedin order of increasing confidence into Probable OreReserves and Proved Ore Reserves.Definitions of mineral resources and ore reservesin accordance with Industry Guide No. 7 approvedby the Securities and Exchange Commission (SEC)• "Reserves" are defined as that part of a mineral depositthat could be economically and legally extracted or producedat the time of the reserve determination.• "Proven reserves" are defined as reserves for which(a) quantity is computed from dimensions revealed in outcrops,trenches, workings or drill holes, grade and/or qualityare computed from the results of detailed sampling; and(b) the sites for inspection, sampling and measurement arespaced so closely and the geologic character is so welldefined that size, shape, depth and mineral content ofreserves are well-established.• "Probable reserves" are defined as reserves for whichquantity and grade and/or quality are computed from informationsimilar to that used for proven (measured) reserves,but the sites for inspection, sampling and measurementare farther apart or are otherwise less adequately spaced.The degree of assurance, although lower than that forproven (measured) reserves, is high enough to assume continuitybetween points of observation.More detailed information on mineral resources and orereserves of Stillwater Mining Company is disclosed in the 2005Annual Report of Stillwater Mining Company.
46NORILSK NICKEL • ANNUAL REPORT •200547••• Review of operating performance8.5Mining and metallurgical streamThe mining and metallurgical stream includes mining assets,enrichment capacities and metallurgical plants of the TaimyrPeninsula and Kola Peninsula. The Group's mining and metallurgicalcapacities in the USA are comprised of the assets ofStillwater Mining Company.Mining assets of the GroupDeposit and mine Type of mine Types of ore extracted (1)Taimyr PeninsulaOktyabrsky depositNickel and copper sulfidesOktyabrsky mine Underground Rich, cuprous and disseminatedTaimyrsky mine Underground RichTalnakh depositNickel and copper sulfidesTalnakh Mining DepartmentKomsomolsky mine (2) Underground Cuprous and disseminatedMayak mine Underground DisseminatedSkalisty mine Underground RichMMC NORILSK NICKEL NOT INCLUDINGGOLD MINING ASSETS (POLUS)8Norilsk-1 depositNickel and copper sulfidesMedvezhy Ruchey mine Open pit DisseminatedZapolyarny mine Underground DisseminatedKola PeninsulaZhdanovskoe depositNickel and copper sulfidesTsentralny mine Open pit DisseminatedSeverny Gluboky mine (3) Underground DisseminatedZapolyarnoe depositNickel and copper sulfidesSeverny mine Underground DisseminatedKotselvaara and Semiletka depositsNickel and copper sulfidesKaula-Kotselvaara mine Underground DisseminatedStillwater Mining Company (USA)J-M Reef depositStillwater mine Underground Platinum group metals sulfideEast Boulder mine Underground Platinum group metals sulfideNotes:(1) Rich ores have a higher content of base and precious metals. Cuprous ores have a higher copper to nickel ratio. Disseminated ores have a lower content ofall metals.(2) Komsomolsky mine mines the Talnakh deposit and the western portion of Oktyabrsky deposit.(3) During 2005, Severny-Gluboky mine was merged with Severny mine.
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