Have you ever wondered how a uranium company’s resource calculation can increase, sometimes even double I did and I began making inquiries about this. In February, during a meeting, it was a topic of discussion with William Boberg, Chief Executive of UR-Energy (TSX URE). I have also had talks with David Miller, President of Strathmore Minerals (TSX STM; Other OTC STHJF), and his senior geologist, Terrence Osier. The differences in resources reported by a company, in at least one of the examples found below – Strathmore Minerals’ Church Rock property, is because of the mining methods to be used. The grade-thickness applied to the resource may differ between conventional mining (underground, open pit) versus in-situ solution mining. That can increase the size of the estimated resource.

A Canadian listed mining company can not announce its uranium resource estimate unless it files a document called a National Instrument 43-101 (NI-43-101). You may read in some news releases These are historical estimates. The NI 43-101 came about after the 1997 Bre-X Minerals debacle. Possibly the worst mining scam in Canadian history, it was preceded and followed by other, lesser mining scams. Canadian regulators instituted measures to prevent a repeat performance. A National Instrument 43-101 means that an independent, qualified person has visited the property, reviewed the historical data, and reaches a conclusion on whether or not the property has merit. » Read more: Why Does a Company’s Uranium Resource Calculations Double