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Question 5
Outline the difference between indicated and inferred resources.
Step 1
Answer
Indicated resources refer to those resources where there is sufficient evidence to suggest that they can be extracted. This evidence may arise from empirical data, geological assessments, or exploratory drilling, which leads to a reasonable degree of certainty. However, while indicated resources are more certain than inferred resources, they still do not guarantee that extraction will occur. They represent a potential for extraction that is backed by confidence but requires further evaluation or exploration.
Step 2
Answer
Inferred resources, on the other hand, are those resources that are estimated to exist based on indirect geological evidence rather than direct measurements. This means that while there is a basis to believe these resources may be present, the level of confidence in their existence is much lower. Inferred resources often rely on general geological models and may lack sufficient data to support extraction plans. They require additional exploration to convert them into a more certain category, such as indicated or measured resources.
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