Essential terms and definitions for understanding junior gold mining, exploration, NI 43-101 standards, TSXV listings, and mining investment fundamentals.
57 terms covering reporting standards, geology, finance, regulatory requirements, and mining operations.
An individual or entity that meets specific income or net worth requirements allowing them to participate in private placement financings. In Canada, accredited investors can invest in flow-through shares and private placements offered by junior mining companies.
A comprehensive measure of the total cost to produce an ounce of gold, including mining, processing, administrative costs, sustaining capital, and exploration. AISC is the industry standard metric for comparing mining company costs.
Chemical and mineralogical changes in rocks caused by hydrothermal fluids or weathering. Certain types of alteration are associated with specific deposit types and serve as exploration indicators for mineralization.
The chemical analysis of rock, soil, or drill core samples to determine the concentration of valuable minerals or metals. Assay results are critical for resource estimation and are typically reported in parts per million (ppm) or grams per tonne (g/t) for precious metals.
Exploration conducted near existing mines or known mineral deposits to find additional resources or extensions. Brownfield exploration has lower geological risk than greenfield work because the geological setting is already understood.
The product of ore processing that contains a high percentage of valuable minerals. Concentrates are typically shipped to smelters for final metal extraction and are the main revenue source for many mining operations.
The minimum grade of mineralization that can be economically mined and processed. Material below the cut-off grade is considered waste, while material above it is classified as ore. Cut-off grades depend on mining costs, processing costs, metal prices, and metallurgical recovery rates.
The phase between exploration and production where a company conducts detailed engineering, obtains permits, arranges financing, and constructs mine infrastructure. Development-stage projects have defined resources and are advancing toward production.
The unintentional mining of waste rock along with ore, which lowers the average grade of material sent to the mill. Dilution is a normal part of mining and must be accounted for in mine planning and resource estimation.
A mineral deposit where the valuable minerals are scattered throughout the host rock rather than concentrated in veins. Many large, low-grade gold deposits are disseminated deposits suitable for open-pit mining and heap leaching.
Cylindrical rock samples extracted from the ground using diamond drilling. Core samples provide continuous geological information and are split for assaying to determine mineral content and grade.
A systematic exploration program using diamond or reverse circulation drilling to obtain subsurface samples for geological and geochemical analysis. Drill programs are essential for resource definition, exploration targeting, and upgrading resource classifications.
The phase of a mining project focused on discovering and defining mineral deposits through geological mapping, sampling, and drilling. Most junior mining companies are in the exploration stage and have not yet achieved production.
An estimate of the potential quantity and grade of mineralization in a target area, based on limited geological information. Exploration targets are not mineral resources and should be treated with appropriate caution.
A comprehensive technical and economic study of a mineral project used to demonstrate whether the project is economically viable and technically feasible. Feasibility studies are required before a project can proceed to development and must be prepared by qualified persons under NI 43-101 standards.
A Canadian tax incentive that allows mining exploration companies to transfer tax deductions for exploration expenses to investors. Flow-through financing is a common method for junior miners to raise capital for exploration programs.
The systematic collection and analysis of soil, rock, or water samples to detect anomalous concentrations of target elements. Geochemical surveys help identify areas of mineralization for follow-up drilling.
The use of physical measurements (magnetic, electromagnetic, gravity, or seismic) to detect subsurface geological features and potential mineral deposits. Geophysical surveys are cost-effective exploration tools for identifying drill targets.
A metric that converts the value of other metals (silver, copper, etc.) into equivalent gold ounces based on relative metal prices and recovery rates. Gold equivalent allows comparison of multi-metal deposits on a single metric basis.
The concentration of a valuable mineral within ore, typically expressed in grams per tonne (g/t) for precious metals like gold and silver. Higher grades indicate richer ore deposits and generally better economics. For example, 5 g/t gold means 5 grams of gold per tonne of ore.
Exploration activities conducted in areas with no previous mining or exploration history. Greenfield projects carry higher geological risk but offer potential for major new discoveries. Contrasts with brownfield exploration near existing mines or known deposits.
An industrial mining process used to extract precious metals from ore by placing crushed ore in large heaps and percolating a chemical solution through it to dissolve the valuable minerals. This method is economical for processing lower-grade ore deposits and is commonly used in gold mining operations.
A mineral resource for which quantity, grade, densities, shape, and physical characteristics are estimated with sufficient confidence to allow the appropriate application of technical and economic parameters. Indicated resources have a higher level of confidence than inferred resources but lower than measured resources.
A mineral resource for which quantity and grade are estimated based on limited geological evidence and sampling. Inferred resources have the lowest level of geological confidence and should not be converted to mineral reserves. Further exploration is required to upgrade to indicated or measured categories.
The length of mineralization encountered in a drill hole, typically reported with grade information. For example, '10 meters at 5 g/t gold' means the drill hole encountered 10 meters of material grading 5 grams of gold per tonne.
The discount rate at which the net present value of a project equals zero. IRR represents the expected annual return on investment and is used to compare mining projects. Higher IRR indicates better project economics.
An exploration or development-stage mining company focused on discovering and developing new mineral deposits. Junior miners typically have market capitalizations under $500 million, limited production or revenue, and rely on equity financing for exploration programs. They carry higher risk but offer significant upside potential.
A mineral resource for which quantity, grade, densities, shape, and physical characteristics are estimated with confidence sufficient for the appropriate application of technical and economic parameters to support production planning. This is the highest level of geological confidence in resource estimation.
The percentage of valuable metal that can be extracted from ore during processing. For example, 90% gold recovery means that 90% of the gold in the ore can be recovered through milling and processing, with 10% lost to tailings.
A facility where ore is crushed, ground, and processed to extract valuable minerals. Gold mills typically use gravity concentration, flotation, or cyanide leaching to recover gold from ore.
The estimated number of years a mine can operate based on proven and probable reserves and planned production rates. Longer mine lives generally indicate more valuable projects and better access to financing.
The economically mineable portion of a measured or indicated mineral resource, demonstrated by at least a preliminary feasibility study. Mineral reserves include consideration of mining, metallurgical, economic, marketing, legal, and environmental factors.
A concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such form, quality, and quantity that there are reasonable prospects for eventual economic extraction. Resources are classified as measured, indicated, or inferred.
The present value of future cash flows from a mining project, discounted at an appropriate rate to account for the time value of money. NPV is a key metric for evaluating project economics, with higher NPV indicating better investment returns.
A royalty calculated as a percentage of the gross revenue from metal sales, minus refining and transport costs. NSR royalties are common in mining agreements and are paid to property owners or previous owners.
Canadian National Instrument 43-101 is a regulatory standard for public disclosure of scientific and technical information concerning mineral projects. It requires independent qualified persons to prepare technical reports and resource estimates, ensuring transparency and accuracy in mining investment information.
A surface mining method where ore is extracted from an open excavation. Open-pit mining is suitable for deposits near the surface and is generally less expensive than underground mining but creates larger environmental footprints.
A continuous, well-defined mass of material containing a sufficient concentration of valuable minerals to be economically mined. The size, grade, and geometry of the orebody determine the mining method and project economics.
The standard unit of measurement for precious metals, equal to 31.1035 grams. Gold, silver, platinum, and palladium are typically quoted and traded in troy ounces. Not to be confused with the avoirdupois ounce (28.35 grams) used for everyday items.
The length of time required for a mining project to recover its initial capital investment from operating cash flows. Shorter payback periods indicate lower financial risk and are favored by investors and lenders.
An initial economic analysis of a mineral project that includes estimates of capital and operating costs, metal prices, and project economics. PEAs are less detailed than feasibility studies and carry higher uncertainty, but help determine if a project warrants further study.
Also known as a pre-feasibility study, this is a comprehensive study of a mineral project's viability that includes detailed engineering, cost estimates, and economic analysis. A PFS has greater confidence than a PEA but less than a full feasibility study.
A capital raising method where securities are sold directly to a small number of investors rather than through a public offering. Junior mining companies frequently use private placements to fund exploration and development activities.
The economically mineable portion of an indicated and, in some cases, a measured mineral resource. Probable reserves have a lower level of confidence than proven reserves but are still suitable for mine planning purposes.
The operational phase where a mine is extracting ore, processing it, and selling metal concentrate or refined metal. Production-stage companies generate revenue and cash flow from mining operations.
The economically mineable portion of a measured mineral resource, representing the highest level of confidence in reserve estimation. Proven reserves are suitable for detailed mine planning and financing decisions.
Under NI 43-101, a qualified person is an engineer or geoscientist with at least five years of relevant experience in mineral exploration, mine development, or operations. QPs are responsible for preparing and approving technical reports and resource estimates.
The percentage of valuable metal recovered from ore during processing, after accounting for losses in milling, concentration, and smelting. Higher recovery rates improve project economics.
A payment made to the owner of mineral rights based on production or revenue from mining operations. Royalties are typically calculated as a percentage of gross revenue (NSR) or net profit and represent a ongoing financial obligation.
The horizontal distance along which a mineralized zone extends. Greater strike lengths indicate larger potential deposits and are important factors in resource estimation and mine planning.
The ratio of waste rock that must be removed to extract one tonne of ore in open-pit mining. Lower stripping ratios indicate better economics. For example, a 3:1 stripping ratio means 3 tonnes of waste must be removed for every tonne of ore mined.
The waste material left over after ore has been processed to extract valuable minerals. Tailings are typically stored in engineered facilities called tailings dams and must be managed to prevent environmental impacts.
The actual thickness of a mineralized zone measured perpendicular to its orientation. Drill holes rarely intersect mineralization at perfect right angles, so true width calculations are necessary to estimate tonnage accurately.
The TSX Venture Exchange is Canada's premier public venture capital marketplace for emerging companies. It is the primary listing exchange for junior mining companies in Canada, providing access to capital for exploration and development projects. Many junior gold mining companies are listed on TSXV.
Mining method used to extract ore from deposits located deep beneath the surface. Underground mining is more expensive than open-pit but is necessary for deposits that are too deep or have too much overburden for surface mining.
A sheet-like body of mineralized rock that fills a fracture or fault in the host rock. Gold veins are important exploration targets and have historically been significant sources of high-grade gold production.
A security that gives the holder the right to purchase shares at a specified price (strike price) within a certain time period. Warrants are often issued as part of private placement financings in junior mining companies.
Explore junior gold mining companies with detailed technical reports and resource estimates.
View All Companies →Learn about private placements, accredited investor requirements, and mining investment fundamentals.
Explore Financial Hub →Browse exploration properties, mining projects, and mineral claims available for partnership or sale.
View Properties →