How does a mineral inventory differ from an ore reserve?

In the context of a mineral deposit, the distinction between a mineral inventory and an ore reserve is primarily defined by economic viability.1

• Mineral Inventory: This represents the total quantity of a specific mineral present within a given deposit, regardless of whether it can be extracted profitably.1
• Ore Reserve: This refers specifically to the portion of the mineral inventory that can be mined and processed at a profit.1

The classification of material as an ore reserve is dynamic and depends on fluctuating factors such as the current market price of the mineral and the total costs associated with extraction and processing. If the selling price of a mineral increases or extraction costs decrease, a larger proportion of the mineral inventory may be reclassified as an ore reserve. Conversely, if prices drop or costs rise, material that was previously considered an ore reserve may no longer be profitable to mine, effectively reverting to the status of a mineral deposit that is not currently an ore.12