Reserve Estimation In The Real World: A Large Company Perspective

Mining has traditionally been seen as a relatively risky business. Exploration is expensive and the failure rate is high, while start-up costs commonly run to many hundreds of million dollars. To justify the risk and expense, the returns from successful projects must also be high. Accurate estimation of mineral resources and reserves is fundamental to the processes of optimising returns and managing risk in mining developments. Systematic development from initial exploration through a series of development stages enables expenditure and risk to be balanced. As a consequence, large scale modern mine are more akin to manufacturing businesses. This paper examines the life history of a mineral reserve estimate from the perspective of a large mining company against a background of modern estimation and reporting requirements. It will also touch on what constitutes, in the author's opinion, `best' practice in reserve estimation, and how this concept can be spread more widely. [Abstract to be re-written and reduced to 100 words]