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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: E. Charters who wrote (5418)	1/26/2006 7:26:57 PM
From: Ed Ajootian	Read Replies (2) \| Respond to of 78412

EC, many thanks again, you have gone beyond the call of duty! Just to make sure I got this straight, in order to be called "reserves" they must meet the criteria of being a "measured resource", is that it? And if they don't meet that criteria then they are not "reserves", but only indicated or inferred resources, right? Assuming the above is correct, let me use the following example as my last question (I promise!). Let's say a company gets a 43-101 compliant study done, and it shows some "reserves", and also some "indicated resources". Let's say that the quantity of the "reserves" alone is not enough to make extracting the gold economic, but if you added the "reserves" plus, say, half of the "indicated resource", you would have an economic quantity of gold. Do you think the market would place much value on this kind of report or would it instead wait until such time that work was done to convert some of the "indicated resource" to "reserves"? In other words, do these stocks move more on the sizzle or the steak? Thanks again for all your help. BTW, if you ever want to learn anything about energy stock investing, by all means fire away!

To: E. Charters who wrote (5418)	1/27/2006 12:36:04 AM
From: hubris33	Read Replies (1) \| Respond to of 78412

Usually they sniff around at prospect of an open pit with 1 to 2 million ounces in a favourable regulatory environment where good metallurgy may be indicated. Further translation...open pit and cyanide capable rocks amenable to heap leaching. {I think significant sulfides mess up the cyanide chemistry.} Heap leaching is considerably less capital intensive and thus preferred, where environmental regs allow it, and that don't include Montana! H3

To: E. Charters who wrote (5418)	1/27/2006 12:51:58 AM
From: hubris33	Respond to of 78412

Mineral Resource Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories. An Inferred Mineral Resource has a lower level of confidence than that applied to an Indicated Mineral Resource. An Indicated Mineral Resource has a higher level of confidence than an Inferred Mineral Resource but has a lower level of confidence than a Measured Mineral Resource. Inferred Mineral Resource An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. Indicated Mineral Resource An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed. Measured Mineral Resource A ‘Measured Mineral Resource’ is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity. cim.org See especially, Page 7, Figure 1. tsx.com ccpg.ca H3