RE: Red Mt.
Unfortunately Curtis....some poorly planned drill hole locations do not add up to ore reserves. They hardly amount to what an extraordinarily optimistic geologist or mining engineer would or could refer to as "resources" by the NI 43-101 definitions.
The following a la Wikipedia:
Mineral resources
Mineral resources are those economic mineral concentrations that haveundergone enough scrutiny to quantify their contained metal to acertain degree. None of these resources are ore, because theeconomics of the mineral deposit may not have been fully evaluated.
Indicated resources are simply economic mineral occurrencesthat have been sampled (from locations such as outcrops, trenches, pitsand drillholes)to a point where an estimate has been made, at a reasonable level ofconfidence, of their contained metal, grade, tonnage, shape, densities,physical characteristics[3].
Measured resources are indicated resources that have undergoneenough further sampling that a 'competent person' (defined by the normsof the relevant mining code; usually a geologist)has declared them to be an acceptable estimate, at a high degree ofconfidence, of the grade, tonnage, shape, densities, physicalcharacteristics and mineral content of the mineral occurrence.
Resources may also make up portions of a mineral deposit classifiedas a mineral reserve, but:
- Have not been sufficiently drilled out to qualify for Reserve status; or
- Have yet to meet all criteria for Reserve status [3]
Mineral reserves
Mineral reserves are resources known to be economically feasible forextraction. Reserves are either Probable Reserves or ProvenReserves. Generally the conversion of resources into reservesrequires the application of various modifying factors, including:
- mining and geological factors, such as knowledge of the geology of the deposit sufficient that it is predictable and verifiable; extraction and mine plans based on ore models; quantification of geotechnical risk—basically, managing the geological faults, joints, and ground fractures so the mine does not collapse; and consideration of technical risk—essentially, statistical and variography to ensure the ore is sampled properly:
- metallurgical factors, including scrutiny of assay data to ensure accuracy of the information supplied by the laboratory—required because ore reserves are bankable. Essentially, once a deposit is elevated to reserve status, it is an economic entity and an asset upon which loans and equity can be drawn—generally to pay for its extraction at (hopefully) a profit;
- economic factors;
- environmental factors;
- marketing factors;
- legal factors;
- governmental factors;and
- social factors [4].