Mining

Mineral Reserve

The economically mineable portion of a measured or indicated mineral resource, classified as probable or proven.

Detailed Definition

A mineral reserve (also called ore reserve) is the economically mineable part of a measured and/or indicated mineral resource. It includes allowances for dilution and mining losses that occur during extraction.

Reserve classification categories

Probable Mineral Reserve: - Derived from indicated (and sometimes measured) resources - Economic viability demonstrated by preliminary feasibility study - Lower confidence than proven reserves - Mining and processing assumptions applied

Proven Mineral Reserve: - Derived from measured mineral resources only - Highest confidence level - Detailed feasibility study completed - All modifying factors considered and applied

Modifying factors considered: - Mining methods and recovery rates - Metallurgical processing and recovery - Economic factors (commodity prices, costs) - Marketing and sales considerations - Legal, environmental, and social factors - Governmental regulations and permits

Key distinction: While mineral resources represent all identified mineralization, mineral reserves represent only the portion that can be economically and legally extracted under current conditions.