# Mining Investment Must Read: Resources vs Reserves, one can make money while the other may not
When looking at junior mining company stocks, the most common pitfall is not understanding two terms: **Mineral Resources (Resource) and Mineral Reserves (Reserve)**.
The simple and brutal difference is:
- **Mineral Resources** = What is underground (including possibilities)
- **Mineral Reserves** = What is underground that can make money (verified + economically feasible)
# # Resources are divided into three levels (confidence from low to high)
**Inferred Resources** — The least reliable
- In the
View OriginalWhen looking at junior mining company stocks, the most common pitfall is not understanding two terms: **Mineral Resources (Resource) and Mineral Reserves (Reserve)**.
The simple and brutal difference is:
- **Mineral Resources** = What is underground (including possibilities)
- **Mineral Reserves** = What is underground that can make money (verified + economically feasible)
# # Resources are divided into three levels (confidence from low to high)
**Inferred Resources** — The least reliable
- In the