primer... "reserves," "estimates," "measured," "indicated," when an updated NI 43-101 is release...
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When a gold mining company publishes terms like "reserves," "estimates," "measured," "indicated," and drilling results, it's providing key information about its gold mining operations and potential. These terms are part of a standardized reporting system used in the mining industry, often governed by regulations in the country where the company is listed, like the Toronto Stock Exchange (TSX) in Canada. Here's a breakdown of what these terms mean and how they relate to each other:
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Reserves: This is the amount of gold that is economically viable to extract under current market conditions and using current mining technology. Reserves are subdivided into "Proven Reserves" (highly certain) and "Probable Reserves" (less certain but still economically viable).
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Estimates: This term often refers to the estimated amount of gold in the ground, including reserves and resources. It's a broader term that incorporates both demonstrated (measured and indicated) and inferred quantities of gold.
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Measured and Indicated: These are categories of resources, which are concentrations of minerals in the ground that have the potential to be economically mined. "Measured" resources have a high degree of confidence in their quantity and quality, while "indicated" resources are less certain but still likely to be economically viable.
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Drilling Results: These are the findings from exploration drilling, which is done to discover and define the extent and grade (quality) of mineral deposits. Positive drilling results can increase the estimated amount of gold in the ground, potentially leading to an increase in measured and indicated resources or even reserves.
The process of updating these numbers involves several steps:
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Exploration and Drilling: The company conducts exploration activities, including drilling, to discover and define mineral deposits.
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Data Analysis: The data from drilling and other exploration activities are analyzed to estimate the quantity and quality of the gold.
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Resource and Reserve Calculation: Based on this analysis, the company calculates its resources and reserves, adhering to industry standards and regulations (like NI 43-101 in Canada).
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External Audit and Compliance: Often, an independent external audit is conducted to ensure the accuracy and compliance of these calculations with relevant regulations.
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Reporting: The company then updates its public filings and reports with these new numbers, providing investors and regulators with the latest information about its gold mining potential.
It's important for investors to understand that these numbers can change over time due to new exploration data, changes in market conditions, and advancements in mining technology. Therefore, they are not fixed and can have a significant impact on the company's valuation and future prospects.
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