Definitions for mineral resources and reserves from U.S.

Department of the
Interior, U.S. Geological Survey, Mineral Commodity Summaries 2001
(Washington, D.C.: GPO, 2001), Appendix C.
Resource.A concentration of naturally occurring solid, liquid, or gaseous material in or
on the Earths crust in such form and amount that economic extraction of a commodity
from the concentration is currently or potentially feasible.
Original Resource.The amount of a resource before production.
Identified Resources.Resources whose location, grade, quality, and quantity are
known or estimated from specific geologic evidence. Identified resources include
economic, marginally economic, and sub-economic components. To reflect varying
degrees of geologic certainty, these economic divisions can be subdivided into measured,
indicated, and inferred. Demonstrated.A term for the sum of measured plus indicated.
Measured.Quantity is computed from dimensions revealed in outcrops,
trenches, workings, or drill holes; grade and/or quality are computed from
the results of detailed sampling. The sites for inspection, sampling, and
measurements are spaced so closely and the geologic character is so well
defined that size, shape, depth, and mineral content of the resource are
well established.
Indicated.Quantity and grade and/or quality are computed from
information similar to that used for measured resources, but the sites for
inspection, sampling, measurement are farther apart or are otherwise less
adequately spaced. The degree of assurance, although lower than that for
measured resources, is high enough to assume continuity between points
of observation.
Inferred.Estimates are based on an assumed continuity beyond
measured and/or indicated resources, for which there is geologic evidence.
Inferred resources may or may not be supported by samples or
measurements.
Reserve Base.That part of an identified resource that meets specified minimum
physical and chemical criteria related to current mining and production practices, including
those for grade, quality, thickness, and depth. The reserve base is the in-place
demonstrated (measured plus indicated) resource from which reserves are estimated. It
may encompass those parts of the resources that have a reasonable potential for becoming
economically available within planning horizons beyond those that assume proven
technology and current economics. The reserve base includes those resources that are
currently economic (reserves), marginally economic (marginal reserves), and some of those
that are currently subeconomic (subeconomic resources). The term geologic reserve has
been applied by others generally to the reserve-base category, but it also may include the
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inferred-reserve-base category; it is not a part of this classification system. Inferred
Reserve Base.The in-place part of an identified resource from which inferred reserves
are estimated. Quantitative estimates are based largely on knowledge of the geologic
character of a deposit and for which there may be no samples or measurements. The
estimates are based on an assumed continuity beyond the reserve base, for which there is
geologic evidence.
Reserves.That part of the reserve base which could be economically extracted or
produced at the time of determination. The term reserves need not signify that extraction
facilities are in place and operative. Reserves include only recoverable materials; thus,
terms such as extractable reserves and recoverable reserves are redundant and are not
a part of this classification system.
Marginal Reserves.That part of the reserve base which, at the time of
determination, borders on being economically producible. Its essential
characteristic is economic uncertainty. Included are resources that would
be producible, given postulated changes in economic or technological
factors. Economic.This term implies that profitable extraction or
production under defined investment assumptions has been established,
analytically demonstrated, or assumed with reasonable certainty.
Subeconomic Resources.The part of identified resources that does not
meet the economic criteria of reserves and marginal reserves.
Undiscovered Resources.Resources, the existence of which are only
postulated, comprising deposits that are separate from identified
resources. Undiscovered resources may be postulated in deposits of such
grade and physical location as to render them economic, marginally
economic, or subeconomic. To reflect varying degrees of geologic certainty,
undiscovered resources may be divided into two parts.
Hypothetical Resources.Undiscovered resources that are similar to
known mineral bodies and that may be reasonably expected to exist in the
same producing district or region under analogous geologic conditions. If
exploration confirms their existence and reveals enough information about
their quality, grade, and quantity, they will be reclassified as identified
resources. Speculative Resources.Undiscovered resources that may
occur either in known types of deposits in favorable geologic settings
where mineral discoveries have not been made, or in types of deposits as
yet unrecognized for their economic potential. If exploration confirms their
existence and reveals enough information about their quantity, grade, and
quality, they will be reclassified as identified resources.
Restricted Resources/Reserves.That part of any resource/reserve category that is
restricted from extraction by laws or regulations. For example, restricted reserves meet all
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the requirements of reserves except that they are restricted from extraction by laws or
regulations.
Other Occurrences.Materials that are too low grade or for other reasons are not
considered potentially economic, in the same sense as the defined resource, may be
recognized and their magnitude estimated, but they are not classified as resources. A
separate category, labeled other occurrences, is included in figures 1 and 2. In figure 1, the
boundary between subeconomic and other occurrences is limited by the concept of
current or potential feasibility of economic production, which is required by the definition
of a resource. The boundary is obviously uncertain, but limits may be specified in terms
of grade, quality, thickness, depth, percent extractable, or other economic-feasibility
variables.
Cumulative Production.The amount of past cumulative production is not, by
definition, a part of the resource. Nevertheless, a knowledge of what has been produced is
important to an understanding of current resources, in terms of both the amount of past
production and the amount of residual or remaining in-place resource. A separate space
for cumulative production is shown in figure 1 [in original; not shown here]. Residual
material left in the ground during current or future extraction should be recorded in the
resource category appropriate to its economic-recovery potential.