Mineral resources and mineral reserves are crucial data points in a mining company’s operations. In mining and exploration, the terms “Mineral Resource” and “Mineral Reserve” can be confusing—and are often used incorrectly or even interchangeably. Mineral resources and reserves have a number of differentiating factors which are important to understand for reporting purposes, feasibility studies, financing, operational strategy, and more.
WHAT IS A MINERAL RESOURCE?
A mineral resource is a concentration of mineral deposits of economic interest within the earth’s crust. To count as a mineral resource, these minerals must be in a form, grade, and quantity that is of economic interest for extraction.
Mineral resources are discovered during the exploration phase of a mineral project. Multiple geophysical tests are typically performed to identify imperative details about the mineral deposit, including the location, quantity, grade, geological characteristics, location, depth, feasibility, and more. This information will be used to determine the feasibility and economic benefit of mining the resource, thus helping to determine if the mineral can be considered a mineral reserve.
WHAT IS A MINERAL RESERVE?
The definition of a mineral reserve is the portion of a mineral resource that can be realistically and economically mined. A mineral reserve must be proven by a detailed evaluation program, usually involving drilling and geophysical testing, to prove that a deposit is of sufficient quantity and quality to be defined as a viable, economically mineable reserve.
A mineral reserve will typically include allowances for losses that may occur during the extraction process as defined by pre-feasibility or feasibility studies. To attain the distinction of being a “reserve,” this resource must also be fully evaluated and deemed commercially viable to work.
Mineral reserves are typically defined as probable or proven reserves. Proven reserves are reserves where the spatial information of the reserve, including size, shape, and depth, as well as mineral content of the reserves are well-established. Probable reserves have some of the same qualities of a proven reserve, but may have sites for inspection, sampling, or measurement that are farther apart or otherwise less adequately spaced, which makes the data less reliable than for proven reserves.
WHAT IS THE DIFFERENCE BETWEEN A MINERAL RESOURCE AND MINERAL RESERVE?
The definition of a mineral reserve is stricter than that of a mineral resource. E.g., all mineral reserves are mineral resources, but not all mineral resources are a mineral reserve. Mineral reserves must be economically mineable based on location, quantity, grade, geological characteristics, feasibility, and more. Mineral resources, however, are a report of the minerals in the mining area but not necessarily yet proven to be economically mineable.
FINAL THOUGHTS
Mineral resources and mineral reserves are the backbone of a successful mining project. If your company requires expertise to produce data for resources and reserves or operational strategy to maximize your yields, contact the experts at Rangefront Mining Services today.
ABOUT THE AUTHOR
BRIAN GOSS
President, Rangefront Mining Services
Brian Goss brings over 20 years of experience in gold and mineral exploration. He is the founder and President of Rangefront, a premier geological services and mining consulting company that caters to a large spectrum of clients in the mining and minerals exploration industries. Brian is also a director of Lithium Corp. (OTCQB: LTUM), an exploration stage company specializing in energy storage minerals and from 2014 to 2017, he fulfilled the role of President and Director of Graphite Corp. (OTCQB: GRPH), an exploration stage that specialized in the development of graphite properties. Prior to founding Rangefront, Brian worked as a staff geologist for Centerra Gold on the REN project, as well as various exploration and development projects in the Western United States and Michigan. Brian Goss holds a Bachelor of Science Degree with a major in Geology from Wayne State University in Michigan.
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