Indicated vs. Probable

Attribute	Indicated	Probable
Definition	Pointing to a specific condition or diagnosis	Likely to happen or be true
Certainty	Less certain than "diagnosed"	More certain than "possible"
Evidence	Some evidence supporting the condition or diagnosis	Stronger evidence supporting the condition or diagnosis

Definition

Indicated resources and probable resources are two categories used in the mining industry to estimate the amount of mineral reserves that can be economically extracted from a deposit. Indicated resources are those for which quantity, grade, and mineral content can be estimated with a reasonable level of confidence. Probable resources, on the other hand, are those for which quantity and grade can be estimated with less certainty than indicated resources.

Confidence Level

One of the key differences between indicated and probable resources is the level of confidence in the estimates. Indicated resources have a higher level of confidence compared to probable resources. This is because indicated resources are based on more extensive sampling and drilling, which allows for a more accurate estimation of the quantity and grade of the mineral deposit. Probable resources, on the other hand, are based on less data and are therefore considered to be less certain.

Investment Decision

When it comes to making investment decisions, indicated resources are generally more attractive to investors than probable resources. This is because indicated resources are considered to be more reliable and have a higher likelihood of being economically viable. Investors are more likely to invest in a project with indicated resources as they have a higher level of confidence in the estimated reserves. Probable resources, on the other hand, are seen as more speculative and carry a higher level of risk.

Regulatory Approval

Regulatory bodies also take into account the difference between indicated and probable resources when evaluating mining projects. In many jurisdictions, indicated resources are given more weight when assessing the economic viability of a project. This is because indicated resources are considered to be more reliable and have a higher likelihood of being extracted profitably. Probable resources, on the other hand, may be subject to stricter scrutiny and may require additional studies to confirm their economic viability.

Cost of Extraction

The cost of extracting minerals from a deposit can vary depending on the category of resources. Indicated resources are generally easier and cheaper to extract compared to probable resources. This is because indicated resources are based on more accurate estimates of quantity and grade, which allows for more efficient planning and extraction methods. Probable resources, on the other hand, may require additional exploration and development work to confirm their economic viability, which can increase the overall cost of extraction.

Market Perception

Market perception also plays a role in how indicated and probable resources are viewed by stakeholders. Indicated resources are often seen as a sign of a more advanced and de-risked project, which can attract more interest from investors and potential partners. Probable resources, on the other hand, may be viewed as a higher-risk proposition and may require additional due diligence before attracting investment. The market tends to value projects with indicated resources more highly due to their higher level of confidence and reliability.

Conclusion

In conclusion, indicated and probable resources are two important categories used in the mining industry to estimate the amount of mineral reserves in a deposit. Indicated resources have a higher level of confidence and are considered to be more reliable compared to probable resources. Investors, regulatory bodies, and other stakeholders often place more value on projects with indicated resources due to their higher likelihood of being economically viable. While probable resources have their place in the industry, indicated resources are generally preferred for their higher level of certainty and lower risk.