my 2c, these being how i categorize the concepts generally: Indicated means, we now know we have this tangible asset based on how much we have drilled it, and the results to date, and because a reputable engineer is now saying they agree with us and are telling the world how big and rich the drilled target is. They have enough spaced drill data to make a qualified engineers assessment they will stand behind for construction and retrieval purposes. The scheat is there, at these levels, in these grades and quantities, etc..
(Note: Ivanhoe has gone a step farther and used an independent engineering firm from England, not an in house staff engineer(s) or even somebody from Africa. RF would always use a top international guy(s))
inferred is being that something might be there, and we think it possibly or even probably is there, but so far no reputable engineer will agree with us, (generally) because we have not drilled the alleged target enough, we need to put in more time and money and drilling, so we really cannot say at this point.
Eventually they firm the now indicated with more dense drilling and factor in certain price and mining cost assumptions, to try to give the market an estimate of its economic or dollar value. I suppose banks need this sort of data, but industry execs, potential partners and fund guys know how valuable it is, or will become, based upon an indicated threshold.
It is also really impossible with anything remotely approaching a Tier 1 status to get a real sense of value since they don't project economics longer than 20 years or thereabouts. Even 20 years imho is really pushing it. This means the true value of K and K or platreef will far exceed any number or rate of return type of figure. Sort of like, the asset has now defined metal in it, that given steady production status, might last for 50 years, who knows with additional drilling, but we can only assess and therefore value the first 15 to 20 years....something like this, because who really knows what this metal will be worth so far into the future. I personally always think to myself: a helluva lot more if the past thousand years is any barometer.....
you might figure it this way: funds and major mining companies don't really care about inferred, maybe with your money they do but not with their own. Anybody can say their work shows an inferred amount. Even here, it depends who the person is: a small mining outfit, strapped for money, says they have something inferred or indicated, and may have little market credibility, but with RF, everybody knows he is the gold standard.
Better yet, robert friedland is not the gold standard, he is the platinum, nickle, zinc, silver, palladium, copper and gold standard. He and his people are the greatest discoverers of valuables the world has ever known, except for Christopher Columbus.....
