Reserves, Resources And Pie-In-The-Sky ? Introduction

Each and every mining operation from a simple sand-and-gravel pit to the largest integrated mine-mill-concentrator-smelter-refining complex has, as its foundation, a quantity of extractable natural resource the reserves. Without reserves, there is no mine, and any concentrating or extracting plant, no matter how sophisticated, is simply so much scrap metal. And, of course, without resources there are no reserves. It is remarkable, therefore, especially in this age of careful planning, high quality engineering, and state-of-the-art financial analysis, that such a fundamental and vital item is so little understood and the subject- of so much confusion. Time and time again it has been the experience of the author, when called in to a mining operation that has run into trouble in reaching projected production targets, to find that the designed-for tons were not reaching the concentrator/extraction plant, and/or the grade of such tonnage was substantially below the forecast and design grade of the plant. The mill blames the mine for delivering below standard tons and/or grade and the mining engineer blames the geologist for overly-optimistic assessment or incorrect interpretation of the deposit. The geologist blames the mining and metallurgy division for wrongly interpreting his data and conclusions, or simply fouling-up a fine orebody.