Aggregate Reserves Planning & Value

After determining minable acreage, tons are calculated by multiplying minable acreage by average thickness and by a volume-tonnage conversion factor. Converting from tons in the ground to tons sold across the scale takes fines and internally used and wasted stone into consideration, resulting in minimum losses of about 10% for limestone and 15% for sand and gravel. A high degree of certainty about thickness, lateral continuity and geologic character defines proven reserves. Assuming continuity of these characteristics defines probable reserves. By using tpa estimations and annual tonnage requirements, the life of a deposit can be quantified. The decision can then be made regarding the necessity of securing more acreage. Some landowners choose to multiply aggregate price, operating income, or a royalty rate by tons to arrive at a value for their reserves. In doing so they probably overstate the value of their land.