Hey everyone just created an account to add a few things, great forum by the way.
Mopar and Cal raise good points,
Seismic acquisition is used by the oil industry in the exact same way. Siesmic and titan technology can only tell you so much data. You will never be able to tell exactly what is there, however you will be able to for instance know that gas filled porosity registers 40-50hz when entrained in a dolomitic limestone. This is how the quantec results are interpreted, using existing knowledge and a baseline (which may or may not be correct for the area). In order to confirm these results you will core an area to confirm interpretation. Once confirmed you change the degree of certainty of what you have from possible to probable and can better use the quantec results.
Probable can be changed into "reserves" with multiple drill holes and possibly logging. Once we tell people we have confirmed having a certain amount of reserves then we will get maximum value.
In my experience (in oil and gas, not gold)
Possible will be bought for 10% of interpretation
Probable will be bought for 50-60% of interpretation
Reserves for 90-100%
This means it is essential for us to prove the property.
I hope this is clear as mud and that I have been able to contribute something to the board that has taught me so much about stocks
this is IMHO
cheers
