Experts Discuss Reserves Reporting at SME Meeting

Mining is a risky business. The cost of exploring for new mineral deposits is high and the success rate of finding one worthy of development is relatively low. And once a deposit is identified, there is no guarantee that it will become a mine. Mining companies have to spend a lot of time and money on due diligence, prefeasibility and feasibility studies, and sustainable development and environmental issues before deciding whether the deposit will become a profitable mine. And then there are the millions of dollars spent in developing the deposit and building a mine. No wonder the mining industry has trouble attracting investment capital. Companies take a large risk in developing reserves and investors take a similar risk in investing in them. So mining companies must be as accurate as possible in determining mineralization that makes it to reserve status. After all, reserves are a company’s most important asset and one of the critical factors analysts and funding sources look at when determining if a mine or mining company is worth the risk.