A Mineral Reserve Statement is a formal technical and financial disclosure document, typically prepared and signed off by a Qualified Person or Competent Person, that reports the economically and legally mineable portion of a Measured or Indicated Mineral Resource after the application of modifying factors. These modifying factors include mining method, metallurgical recovery, infrastructure, economic assumptions such as commodity price and operating cost, marketing arrangements, legal tenure, environmental constraints, and social and governmental considerations. The statement classifies reserves into Proved Mineral Reserves, supported by a high level of geological confidence, and Probable Mineral Reserves, supported by a lower but still reasonable level of confidence. Reserve statements are governed by internationally recognized reporting codes such as the JORC Code in Australia, NI 43-101 in Canada, SAMREC in South Africa, and SK-1300 under the US Securities and Exchange Commission, all of which align under the CRIRSCO framework. These statements are essential for project financing, stock exchange listing requirements, bank feasibility studies, and investor decision-making, since they represent the only portion of a deposit that can legitimately be described as economically extractable under current technical and market conditions.
