======Measured Resource======
A Measured Resource is the highest-confidence category of a [[Mineral Resource]]. Think of it as the most well-understood and accurately mapped portion of a mineral deposit before a company has confirmed it's profitable to mine. To earn this classification, geologists and engineers must have conducted extensive, detailed exploration, sampling, and testing. This work is so thorough—often involving drilling holes very close to one another—that the size, shape, grade (the concentration of the valuable mineral), and tonnage of the deposit are known with a very high degree of certainty. This confidence allows a "qualified person" under regulatory codes like Canada's [[NI 43-101]] or Australia's [[JORC Code]] to create a precise 3D model of the orebody. Essentially, a Measured Resource is as close as you can get to knowing exactly what's in the ground without having actually dug it all up.
===== The Resource Pyramid: Where Does Measured Fit In? =====
Imagine a pyramid representing all the potential minerals a company might have. The wider the base, the less certain you are about what's really there. As you move up the pyramid, the area narrows, but your confidence grows. Measured Resources sit at the very peak of this resource pyramid.
  * **[[Inferred Resource]] (The Base):** This is the lowest level of confidence. It’s a preliminary estimate based on limited geological evidence and sampling. Think of it as a highly educated guess—there's potential, but it's very speculative.
  * **[[Indicated Resource]] (The Middle):** A significant step up in confidence. It's based on more drilling and sampling, spaced out enough to give a reasonable idea of the deposit's characteristics. Investors can have more faith in these numbers, but there are still gaps in the knowledge.
  * **Measured Resource (The Peak):** The gold standard of resource classification. The drilling and sampling are so dense and detailed that the geological risk is very low. You know what you have with a high degree of confidence.
===== Why Does This Matter to a Value Investor? =====
For a value investor, certainty is king. The entire game is about buying assets for less than their [[intrinsic value]]. In mining, a company's primary asset is the rock in the ground, and a Measured Resource provides the most reliable information for valuing that asset.
A company with a large proportion of its assets classified as Measured Resources is inherently //less risky// than one built on speculative Inferred Resources. The high confidence reduces the chance of a catastrophic write-down, where it turns out the expected ore simply isn't there or the grade is much lower than hoped. When you're building a [[DCF (Discounted Cash Flow)]] model for a miner, the cash flow projections are far more dependable when they are based on a Measured Resource. It provides a solid, defensible foundation for your valuation, minimizing speculation and allowing you to invest with a greater [[margin of safety]].
===== A Word of Caution: Resource vs. Reserve =====
This is one of the most critical distinctions in mining investment, and getting it wrong can be costly. A **resource** is an estimate of the mineral in the ground. A **reserve** is the portion of that resource that is //economically profitable// to mine.
Think of it this way: a Measured Resource is like knowing with high certainty that there are one million ounces of gold in a deposit. A [[Mineral Reserve]] is knowing you can extract that gold at a cost of $1,000 per ounce when the price of gold is $1,800, making it a profitable venture. All reserves must first be resources, but not all resources will become reserves.
==== The Conversion Path ====
To convert a resource into a reserve, a company must conduct a [[feasibility study]]. This exhaustive report analyzes all the "modifying factors" that determine profitability. These include:
  * Mining and processing costs
  * Legal and environmental permits
  * Metal prices and marketing
  * Governmental taxes and royalties
  * Social and community acceptance
Only after a Measured or Indicated Resource has passed this rigorous economic test can it be upgraded. A Measured Resource that is proven to be economically viable becomes a [[Proven Mineral Reserve]], the highest-confidence asset a mining company can have on its books. An Indicated Resource becomes a [[Probable Mineral Reserve]].
==== The Bottom Line for Investors ====
When you see a company touting its massive "resource," always ask the next question: how much of that is a //reserve//? A Measured Resource is fantastic because it's the most likely candidate to be converted into a high-quality Proven Reserve. It dramatically de-risks the geological side of the equation, which is the first and most important step toward creating a profitable mine.