Geologic Resources Vs. Ore Reserves

Ore reserves are often less than 30% of the geologic resource estimates initially prepared by exploration geologists. Differences of this magnitude can lead to serious problems in the early valuation of properties when the geologic resource estimates are interpreted to represent ore reserves but are later found to be misleading and gross overstatements of the actual ore tonnages. The geologist can avoid such difficulties by considering the implications of mining, metallurgical recovery and economics early in the project and by using appropriate qualifiers in the resource statement. Examples using typical deposit characteristics are used to demonstrate how the cutoff grade, stripping ratio, dilution, mining extraction and metallurgical recovery affect ore reserve estimations.