I'm not clinging on you can see my disclosure below my posts and...

I'm not clinging on you can see my disclosure below my posts and who said I didn't take on the advice

You're right, there is a crucial difference between resources and reserves, especially when it comes to minerals and natural resources.

Here's a breakdown:

Resources:

Definition: A concentration of minerals or materials of economic interest in or on the Earth's crust that has been identified and measured with reasonable certainty.

Characteristics:Not all resources are economically viable for extraction at the present time.The quantity and quality of the resource may be uncertain.Further exploration and development may be needed to convert a resource into a reserve.

Examples: Potential oil deposits identified through seismic surveys, undiscovered mineral deposits based on geological knowledge.

Reserves:

Definition: A portion of a mineral resource that has been demonstrated to be economically and legally extractable under current socio-economic and operating conditions.

Characteristics: Proven economically viable for extraction based on detailed studies and analysis.Quantity and quality of the resource are well-defined with high geological confidence.Legal and regulatory approvals for extraction are in place or attainable.Examples: Proven oil reserves with established drilling data and production plans, coal reserves with defined seams and extraction methods.

Valuation:

Resources:Valued based on potential future profitability, considering factors like estimated quantity, extraction costs, market price, and technological advancements.Value is inherently speculative and prone to change as more information becomes available.Often reported using risk categories like Inferred, Indicated, and Measured, reflecting the level of geological confidence.

Reserves:Valued based on their present net worth, considering the estimated cost of extraction and processing compared to the expected market value of the extracted material.Offers a more reliable estimate of economic viability for investors and financial institutions.Reported using classifications like Probable and Proven, based on the level of economic and technical feasibility.

In summary:Resources represent the potential for future extraction, while reserves represent the confirmed ability to extract profitably under current conditions.Resource valuation is speculative and based on potential, while reserve valuation is based on present economic feasibility.I hope this clarifies the difference and helps you understand how resources and reserves are valued.