Here we go, page 66, roughly one-third of the way down -
"GUIDE 7
Description of Property by Issuers Engaged or to be Engaged in
Significant Mining Operations
(a) Definitions. The following definitions apply to
registrants engaged or to be engaged in significant mining
operations:
(1) Reserve. That part of a mineral deposit which could be
economically and legally extracted or produced at the time of the
reserve determination. Note. Reserves are customarily stated in
terms of "ore" when dealing with metalliferous minerals; when
other materials such as coal, oil, shale, tar, sands, limestone,
etc. are involved, an appropriate term such as "recoverable coal"
may be substituted.
(2) Proven (Measured) Reserves. Reserves for which (a)
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 and (b) the sites
for inspection, sampling and measurement are spaced so closely
and the geologic character is so well defined that size, shape,
depth and mineral content of reserves are well-established.
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(3) Probable (Indicated) Reserves. Reserves for which
quantity and grade and/or quality are computed from information
similar to that used for proven (measure) reserves, but the sites
for inspection, sampling, and measurement are farther apart or
are otherwise less adequately spaced. The degree of assurance,
although lower than that for proven (measured) reserves, is high
enough to assume continuity between points of observation.
(4)(i) Exploration Stage - includes all issuers engaged in
the search for mineral deposits (reserves) which are not in
either the development or production stage.
(ii) Development Stage - includes all issuers engaged in the
preparation of an established commercially minable deposit
(reserves) for its extraction which are not in the production
stage.
(iii) Production Stage - includes all issuers engaged in the
exploitation of a mineral deposit (reserve).
Instruction to paragraph (a).
1. Mining companies in the exploration stage should not
refer to themselves as development stage companies in the
financial statements, even though such companies should comply
with FASB Statement No. 7, if applicable.
(b) Mining Operations Disclosure. Furnish the following
information as to each of the mines, plants and other significant
properties owned or operated, or presently intended to be owned
or operated, by the registrant:
(1) The location and means of access to the property;
(2) A brief description of the title, claim, lease or option
under which the registrant and its subsidiaries have or will have
the right to hold or operate the property, indicating any
conditions which the registrant must meet in order to obtain or
retain the property. If held by leases or options, the
expiration dates of such leases or options should be stated.
Appropriate maps may be used to portray the locations of
significant properties;
(3) A brief history of previous operations, including the
names of previous operators, insofar as known;
(4)(i) A brief description of the present condition of the
property, the work completed by the registrant on the property,
the registrant's proposed program of exploration and development,
and the current state of exploration and/or development of the
property. Mines should be identified as either open-pit or
underground. If the property is without known reserves and the
proposed program is exploratory in nature, a statement to that
effect shall be made;
(ii) The age, details as to modernization and physical
condition of the plant and equipment, including subsurface
improvements and equipment. Further, the total cost for each
property and its associated plant and equipment should be stated.
The source of power utilized with respect to each property should
also be disclosed.
(5) A brief description of the rock formations and
mineralization of existing or potential economic significance on
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the property, including the identity of the principal metallic or
other constituents insofar as known. If proven (measured) or
probable (indicated) reserves have been established, state (i)
the estimated tonnages and grades (or quality, where appropriate)
of such classes of reserves, and (ii) the name of the person
making the estimates and the nature of his relationship to the
registrant."
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There's more, i'm just not sure how much a single post will take.
Maybe it's the engineers' association that defines proven and probable reserves in terms of hole spacing ... i don't see any definition here for 'resources', which is logical, because it can mean anything to anybody, in my experience.
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