Confidence Interval Estimation For Minable Reserves

The uncertainty associated with a reserve estimate has generally been expressed as a subjective ranking rather than a quantitative expression of either reliability or uncertainty. These rankings of estimate reliability have taken a very nonquantitative bent as well. For example, the U.S. Securities and Exchange Commission definition of proven reserves is given as: 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. (U.S. SEC, Form S-18, Item 17A)