Let’s Define Our Terms in Mineral Valuation

Sooner or later, we all get involved in the economic study and valuation of a mineral deposit. To communicate clearly the necessary information, we must scrupulously use various terms with specific meaning. All these terms-such as ore, exploration, development, production, reserves, proven ore, probable ore, possible reserves, resources, as well as similar terms applying to coal-are continually on the lips of anyone who reports on the economic aspects of a mineral deposit at the exploration, development, and production stages. The meaning of these terms is even more important in feasibility studies to determine whether a deposit should be put into production. Finally, careless use of these terms in reports published for public financing may, and sometimes does, lead to prosecution of the writer for misleading information.