Mining Company research board

[gnolfinvestor]

i am not an expert in mining ... nor do i claim to be ... but the term indicated reserve (actually it was called "probable (indicated) reserve" - but i knew what probable means) is used by the sec in their industry guideline 7:

(1) Reserve. That part of a mineral deposit which could be economically and legally extracted
or produced at the time of the reserve determination.
Note: Reserves are customarily stated in terms of ore when dealing with metalliferous
minerals; when other materials such as coal, oil shale, tar, sands, limestone, etc. are involved, an
appropriate term such as recoverable coal may be substituted.
(2) Proven (Measured) Reserves. 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.
(3) Probable (Indicated) Reserves. Reserves for which quantity and grade and/or quality are
computed from information similar to that used for proven (measured) reserves, but the sites for
inspection, sampling, and measurement are farther apart or are otherwise less adequately spaced.
The degree of assurance, although lower than that for proven (measured) reserves, is high enough
to assume continuity between points of observation.

from http://web.cim.org/standards/documents/Block474_Doc32.pdf