Classification of Mineral
Resources and Reserves
• The difference between a resource and reserve basically boils down
one thing: a feasibility study.
• Not included in the classification, but often mentioned is a mineral
occurrence. Usually an occurrence is synonymous with a prospect or
a “showing”. The term itself does not have any real economic
meaning, although the mineral occurrence is generally a mineral of
economic interest. An occurrence is often mentioned in a report
because of the prospect of finding a larger amount of the mineral in
close proximity to the occurrence. It would suggest further
exploration in the area.
• The reporting standards implemented by CRIRSCO require that report
estimates be carried out by a “Competent Person”, also referred to as
a “Qualified Person”. This person must be an accredited professional
with at least five years experience in the activity, commodity and
situation being reported on. This is generally a geologist or engineer
with significant experience in mineral exploration, mineral project
assessment or mine development.
• Mineral Resources
• A Resource is a concentration of a minerals that has a reasonable prospect
of economic extraction. Its location, grade, quantity and continuity are
reasonably known from specific geological knowledge and evidence.
Essentially, a prospect is not a Resource until enough work has been done
to demonstrate a good understanding of the mineral occurrence, and the
quantity and quality show the potential make it an economic play. Within
the Resource category there are a few more specific sub-categories.
• An “Inferred Resource” is one that is based on limited sampling and is
based on reasonably assumed, but limited information. Samples might
include those from outcrops, trenches, pits or drill holes. Previous
geological maps may allow for reasonable assumptions about the size and
scope of the resource.
• An “Indicated Resource” is a Resource whose quantity, grade
(quality), shape, size and continuity can be more confidently
reported. Larger and more closely spaced samples have more reliably
established the characteristics of the resource to the point where
preliminary economic viability and resource extraction calculations
can be made.
• A “Measured Resource” represents the highest level of geologic
knowledge and confidence in a Resource. The Resource
characteristics are well established through detailed and reliable
exploration work. Economic and technical factors can be more
confidently applied. Mine and production planning can give more
detailed estimates of economic viability.
• Mineral Reserves
• The difference between a resource and reserve boils down one
thing: a feasibility study. At the very least a preliminary, or “pre-feasibility”
study must be completed which takes into account the “Modifying” non-
geological factors. These include technical factors include mining,
processing, metallurgy. They also include mine planning, economic
planning, environmental and community related factors. (See our article
on mining project location)
• A Reserve is Probable when economic extraction CAN BE justified.
• A Reserve is Proven when economic extraction IS justified. This distinction
is generally based on the geologic knowledge and as with Resources many
projects include a hybrid classification (eg. “Proven and Probable”).
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