What are Probable Reserves?

Probable reserves are those mineral reserves for which quantity and grade are computed from information similar to what is used for proven reserves; however, the sites for inspection, sampling, and measurement are less adequately spaced. The resulting degree of assurance is sufficiently high to assume continuity between points of observation.

A publicly held company must disclose the estimated tonnages and grades of its proven and probable reserves. Reporting the probability of recovery for reserves makes it easier for investors to estimate the present value of a mining company’s assets, and therefore the price they are willing to pay for its shares.