Replies to post #3307 on Mining Company research board

[1manband]

can someone tell me the difference between indicated reserves vs. proven reserves

There is no such thing as "indicated reserves". That terminology is fraudulent. The correct terminology is an "indicated resource", which means exploration conducted to date indicates that such mineralization may be present, but it has not yet been defined or proven to be legally and economically feasible to extract. It is the lowest classification of a resource, and it cannot be assumed that any portion of such a resource will ever be feasible to mine, or that it even exists in such quantities and grade. The SEC severely limits the use of such terms and disclosure by US public companies. It can only be publicly disclosed in certain circumstances with the correct language and disclaimers - something most OTC companies do not do. It is grossly misused by many US companies, who tend to take some grab samples and extrapolate across wide areas and depths. That does not qualify as a "resource" by any permitted definition and such use is fraudulent.

The term "reserves" has a legal definition, and to use it when the legal requirements have not been met is fraudulent. Plenty of violators have been charged with that offense. To be a reserve, a full (bankable) feasibility study prepared by qualified and independent third-parties must be completed which proves not only that such mineralization exists in such grade and quantity, but that it is legally and economically feasible to extract at a profit. Such a feasibility study requires years and years of work and typically millions of dollars of expenditures on even the smallest of deposits. Something that most US OTC "mining companies" will never have.