re: Ann: Maiden Inferred Resource for Aries P... Another thing to remember: this resource is all inferred. This is the lowest level of minerals estimation; it indicates that there's reasonable signs of the minerals being there at the given levels, but there is room for error in the estimates. The next level up is indicated, which comes from somewhat tighter drill hole spacing, then measured (tighter still) - the tighter spacing means there's less room for error in the calculations.
Because there's less drilling required to get an inferred resource, I'd expect a mining startup to go down that path, then do some infill drilling to upgrade the resource to indicated and measured if the results warrant it (rather than spending a lot of money to go straight to measured, which could result in some rather red faces if there's nothing there.)
From there, it's normal to do a feasibility study (including checking factors that might impact on a mine, metallurgical work to figure out how to extract the minerals into a marketable form, and so forth), to convert the indicated and measured resources into bankable reserves. Reserves are the point at which the company can use the minerals as collateral for loans and suchlike. (Peak isn't at that stage yet, but the company is moving in that direction.)
Disclosure and disclaimer: I don't hold shares in RMR, but do hold shares in PEK. I was pointed here by another poster in the PEK forum. All of the above is my understanding of the process at a relatively high level, and could be inaccurate - please feel free to correct me where I'm wrong.
Add to My Watchlist
What is My Watchlist?