KAT Exploration Inc (KATX)

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Resource evaluation


http://en.wikipedia.org/wiki/Mineral_exploration


Main article: mineral resource classification

Resource evaluation is undertaken to quantify the grade and tonnage of a mineral occurrence. This is achieved primarily by drilling to sample the prospective horizon, lode or strata where the minerals of interest occur.

The ultimate aim is to generate a density of drilling sufficient to satisfy the economic and statutory standards of an ore resource. Depending on the financial situation and size of the deposit and the structure of the company, the level of detail required to generate this resource and stage at which extraction can commence varies; for small partnerships and private non-corporate enterprises a very low level of detail is required whereas for corporations which require debt equity (loans) to build capital intensive extraction infrastructure, the rigor necessary in resource estimation is far greater. For large cash rich companies working on small ore bodies, they may work only to a level necessary to satisfy their internal risk assessments before extraction commences.

Resource estimation may require pattern drilling on a set grid, and in the case of sulfide minerals, will usually require some form of geophysics such as down-hole probing of drillholes, to geophysically delineate ore body continuity within the ground.

The aim of resource evaluation is to expand the known size of the deposit and mineralisation. A scoping study is often carried out on the ore deposit during this stage to determine if there may be enough ore at a sufficient grade to warrant extraction; if there is not further resource evaluation drilling may be necessary. In other cases, several smaller individually uneconomic deposits may be socialised into a 'mining camp' and extracted in tandem. Further exploration and testing of anomalies may be required to find or define these other satellite deposits.