Reserves, Resources and Pie-In-The-Sky

Reserves are the basic foundation of any mining enterprise, but a lack of understanding of the concept of resources and reserves is still a frequent cause of failure in mining ventures. A review of the development of the resource-reserve concept emphasizes the necessity for a common language, and the classification system as set out by the US Geological Survey and Bureau of Mines is advocated as the basis for this. Because of its strong economic connotation, the term reserves should be severely restricted in its use, and should encompass mining and processing factors. Modifications to the basic definition of reserves to accomplish this are proposed. Caution must be used in the quantification of undiscovered or hypothetical resources, particularly in juxtaposition with known resources data.