Reconciliation of the ore reserve has been an integral part of mine planning since Bougainville Copper Ltd. commenced mining operations at Panguna in 1972. Confidence in the ore reserve is considered essential, both for long term planning of the deposit, and for fair and accurate reporting of the mining resource to shareholders. Recoverable, proven reserves are published annually. Although the ore reserve quoted is based only on diamond drill hole (DDH) information on a 122 metre by 122 metre grid, predictions are regularly reviewed against production. Concentrator results are taken to be the best estimate of grade and tonnage. Surveyed mined perimeters and average blasthole grades are reconciled at the end of each month against the concentrator figures. Predictions of the in-pit reserve are made using an orebody model. DDH and blasthole (BH) sample grades are used to make predictions for both long and short term planning. This paper describes how reconciliations are used to validate ore reserves at Panguna. Development of the orebody model is described, and some of the difficulties encountered in doing reconciliations are addressed.