Mineral Resources Estimate

Mineral Resources Estimate - a

Resource Block Model

The block model is created using geostatistics and the geological data gathered through the drilling of the prospective ore zone. The block model is essentially a set of specifically sized "blocks" in the shape of the mineralized orebody. Although the blocks all have the same size, the characteristics of each block differ. The grade, density, rock type and confidence are all unique to each block within the entire block model. Once the block model has been developed and analyzed, it is used to determine the ore resources and reserves (with project economics considerations) of the mineralized orebody. Mineral resources and reserves can be further classified depending on their geological confidence.

A mineral resource can be explained as a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals in or on the Earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge.