Indicated resource is the tonnes that have been identified by drilling as being there. Turning these into reserve tonnes requires the financial evaluation of "if these tonnes can be economicaly mined". Eg. Having an indicated resource of 100kt at 5 g/t at 2km underground looks good as a resource but probably wont make reserve status as it may be uneconomic to mine.
Last Change for Cheapies - about to close gap?, page-20
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