Monday, September 8, 2008

New website recommendation: The Mercenary Geologist

The name of the new recommended site is "The Mercenary Geologist", and it is required reading for anyone invested or interested in mining, and particularly junior exploration miners.



Site owner Michael S. "Mickey" Fulp is a well-known and well respected face in the world of geology (and rather than wax lyrical here, you can check out his biography at his site: he's even got his resumé available to read there). The thing that makes this site a must read is that Fulp is offering up his deep experience to the non-geologist and is able to get across the sights, smells, pitfalls and opportunities available in the sector without lapsing into jargon and technical geo-speak. In my opinion, this is exactly the kind of knowledge empowerment that the industry needs and so full kudos to Fulp.



I've personally subscribed to his site in the last few days, and what's more it's totally free to join. I've also been in contact with Mickey Fulp, and to give you people a taster of what's on offer over there, he's given me permission to re-print the first section of a great article he published late last month concerning the often misunderstood differences between mineral resources, reserves, ores and suchlike. Have a read, and I hope it interests you enough to go over and sign up to his list. It really is free, and there's no better bargain than that. Enjoy. (By the way, I get zero kickback, commission or anything for recommending this site. The only thing happening here is sharing knowledge...I like what I've seen and I hope you benefit, too)



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Reserves and Resources: A Primer for the Lay Investor



A Monday Morning Musing from Mickey the Mercenary Geologist



Mickey@MercenaryGeologist.com



August 25, 2008



As a classically-trained economic geologist, I was introduced to the definition of Ore and Ore Deposit” during the first minute of my first course in graduate school at the University of New Mexico.

In the early afternoon of a late summer day in 1975, Dr. Wolfgang Elston walked into my Economic Geology 401 class, introduced himself, and asked us to open the chosen textbook, Ore Deposits by Park and MacDiarmid, second edition, to page one and read the following: “Ores are rocks and minerals that can be recovered at a profit.”



At a profit.



So now let’s expand the basic concept and definition to an “Ore Deposit: A mass of rock or mineral that can be developed, mined, processed, and delivered to the marketplace or technology at a profit.”



At a profit.



These two simple definitions have been the fundamental concept anchoring my continuing education and experience since I first set boot in the field as an explorer and prospector in the summer of 1976. The idea is so ingrained in my brain that I need reminding that the overwhelming majority of investors in the mining and exploration sector have absolutely no clue what an Ore Deposit actually is.



Another reminder of this serious lack of insight and understanding occurred a few weeks ago. In a public conversation, I heard meaningless statements such as: “(Unnamed company) has proven up a 1.5 million ounce resource”; “millions of ounces of gold have been taken out of the district and (unnamed company) is about ready to mine it again.”



What was that again? Resources…proven…about ready to mine??



Ai, Chihuahua! I was flabbergasted by these wildly promotional statements and will explain below.



CONTINUES HERE