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depleted, only the known and measured reserves are being referred to. We have no idea how many new resources will become proven new reserves. CIM defines reserves and resources in the following way. RESOURCES An Inferred Resource (low level of confidence) 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. Indicated Resource (reasonable level of confidence) 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 DECEMBER 2012/JANUARY 2013 the deposit. Drill holes are spaced closely enough for geologic and grade continuity to be reasonably assumed. A Measured Resource (a high degree of confidence) 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. Drill holes are spaced closely enough to confirm both geologic and grade continuity. RESERVES A Reserve is the economically mineable part of a measured or indicated mineral resource that has undergone at least a preliminary feasibility study (PFS) demonstrating that the mineral can be economically extracted and describes mining and processing methods, metallurgy, economics, allowances and other relevant information. Mineral reserves are subdivided in order of increasing confidence into probable mineral reserves and proven mineral reserves. A Proven Reserve is the economically mineable part of a measured mineral resource demonstrated by at least a preliminary feasibility study. A Probable Reserve is the economically mineable part of an indicated, and in some circumstances, a measured mineral resource demonstrated by at least a preliminary feasibility study. With these definitions in mind, an investor can make informed decisions about investing in junior explorers looking for minerals and majors who may be adding to their mine life. n www.resourceworld.com 59