Explainer

Resource vs Reserve: What Speculators Need to Know

A mineral resource is an estimate of tonnes and grade in the ground. A mineral reserve is the portion of a resource that has been shown to be economically mineable. Resources are not reserves.

Key Facts

Resource categories (rising confidence): Inferred → Indicated → Measured. Reserve categories: Probable and Proven. Only indicated and measured resources can be converted into reserves. Inferred resources cannot be used for reserves. A PEA can include inferred; a feasibility study generally cannot.

What to check

1. Is the headline using “resource” or “reserve”? 2. What percentage of the resource is inferred? 3. Has any portion been converted to reserve? 4. What cut-off grade and metal price assumptions were used? 5. Is the technical report available on SEDAR+?

Common stretches

Large inferred resources presented as near-term ounces. PEA economics treated as bankable. Press releases that omit the resource category or fail to distinguish resource from reserve.

TL;DR

Resource is not reserve. Inferred is the lowest confidence category and cannot support a reserve. Always check the technical report, not just the headline.

Commodity Ape is information and commentary, not investment advice. Junior resource stocks are high risk and can lose most or all of their value. Do your own work.