Resources, Reserves & Exploitation Flashcards
Define reserve
The amount of material that we can extract that is economically viable (exploit at a profit)
Explain the difference between a resource and a reserve
A resource is all the material in earth surface that can be extracted where as a reserve is all the material in earths surface that can be exploited that is economically viable
Define stock
Stock includes all the material that exists in the lithosphere. It includes material extracted at a profit, extracted at a loss and material that may never be extracted
Define resource
ALL the material in earths surface that can be extracted economically
How might a reserve increase
- Developed new technology that can be
quicker, cheaper and more efficient - Market value increases due to high
demand - Cost of labour, energy & equipment
decreases which means being able to
extract more expensive stuff as more
money is available
How might a reserve decrease
- Increased energy and labour costs
- Demand decreases = value decreases
What are the three categories of reserves
- Inferred reserve
- Probable reserve
- Proven reserve
Explain what an inferred reserve is
Presence of a mineral can be predicted from knowledge of geological structures present but not enough is known to estimate the amount
Explain what a probable reserve is
Sufficient amount of info about the reserve is known so that further exploration can be justified. An estimation of the reserve is still made
Explain what a proven reserve is
Sufficient exploration has been carried out to accurately estimate the amount of the mineral that can be economically extracted
What does Lasky’s principle state
States as purity of a mineral decreases the amount of mineral decreases exponentially
Define cut-off-ore grade (COOG)
The lowest ore purity that can be mined economically, using existing technology
Why might the cut off ore grade (COOG) change over time
- Improved extraction technology means
COOG decreases - Higher energy costs means COOG
increases - Lower market value means COOG
increases - higher market value means COOG
decreases
