What is the difference between resource and reserve in geology?

The terms “resource” and “reserve” are often used in the mining and exploration industry by engineers or geologist to describe the potential and status of a mineral deposit. While they are related concepts, they have different meanings and implications.

Mineral Resource

A mineral resource is a concentration of minerals that have been identified and measured with reasonable certainty but have not yet been proven to be economically viable for extraction. Mineral resources include both measured and indicated resources, which are estimates based on geological information, as well as inferred resources, which are estimates based on fewer data and are considered less reliable.

Mineral Reserve

A mineral reserve is a portion of a mineral resource that has been demonstrated to be economically and legally extractable under current socio-economic and operating conditions. Mineral reserves are usually based on detailed exploration, engineering and economic feasibility studies, and are subject to more stringent requirements and criteria than mineral resources.

Resource and Reserve in summary

In summary, a mineral resource is a potential mineral deposit that has been identified and measured, on the other hand a mineral reserve is a subset of that resource that has been demonstrated to be economically and legally extractable. The distinction between the two is important for mining companies, investors, and regulators, as reserves are used to determine the feasibility and profitability of a mining project, while resources provide an indication of the potential for future development.