During this phase, and the following “deposit appraisal” phase, increasingly detailed surveys and studies are carried out to identify the location, quantity, grade, geological characteristics and continuity of the mineral resource. Resources and Reserves: The relationships between the five groups of mineral asset reporting. While there are general guidelines for setting operating reserve goals, they should always by accompanied by “it depends.” Most standards are based on a formula to have enough unrestricted cash to cover operating expenses for a number of months. Each type of reserve needs the same kind of planning and policy as described for operating reserves. Bold, bracketed text should be customized to meet your needs. Occasionally, a nonprofit will receive a grant or contribution to create or add to an operating reserve fund. In the example policies included here, some areas require customization. Usually, though, reserves are built up over time by generating an unrestricted surplus and intentionally designating a portion of the excess cash as a reserve fund. We have included some options to assist you. Since operating reserves are most valuable if they are reliable, an important factor in using reserves is also having a realistic plan to replenish them. Never adopt a policy without a thorough review and consideration of the risks, operations, and structure of the organization. Resource frontier : These are the resources found at the boundaries of two communities of different location. Reserves are also different from restricted funds. Organizations that have contracts or fees with regular and reliable payments don’t need as much in reserves as organizations that rely on periodic grants, fundraising events or campaigns, or seasonal activities. Be sure to review these parts carefully to create the right policy for your organization. Should you have questions about the use of MinesQC.com platform or if you wish to share your point of view, please contact-us. This Study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. The terminology used to define mineral assets is divided into 2 major groups: Resources and Reserves. The intent of the operating reserve policy is to describe and document the purpose, goals, and mechanics for maintaining and using operating reserve funds. The most common trigger for use of operating reserves is on the income side, such as when a previously reliable source is reduced or withdrawn. The most common trigger for use of operating reserves is on the income side, such as when a previously reliable source is reduced or withdrawn. Without a policy and procedure, reserve funds tend to be gradually spent down over time and then are not available the next time the funds are really needed. This example requires more discussion and customization for the nonprofit’s particular situation and plans. Reserves, on the other hand, are “unrestricted” funds that can be used in any way that the nonprofit’s management and board chooses. Propel Nonprofits strengthens the community by investing capital and expertise in nonprofits. Keep in mind that generic target amounts for reserves don’t take some important variables into account, such as the stability of the nonprofit’s cash receipts. These sample nonprofit operating reserve policies are provided to get you started, but keep in mind that no example will be an exact fit for your organization. A Mineral Reserve is the economically mineable part of a Measured or Indicated Mineral Resource demonstrated by at least a Preliminary Feasibility Study. River basin region, mineral resource region, vegetation region are examples. Vous pouvez modifier vos choix à tout moment dans vos paramètres de vie privée. Every nonprofit needs to have sufficient cash flow coming in from various income sources and going out to pay expenses and other obligations when they are due. In the absence of an adopted policy, staff and board members may have different assumptions that may or not be accurate or productive. Reserves can allow an organization to weather serious bumps in the road by buying time to implement new strategies. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at Pre-Feasibility or Feasibility level as appropriate that include application of Modifying Factors. An operating reserve is an unrestricted fund balance set aside to stabilize a nonprofit’s finances by providing a cushion against unexpected events, losses of income, and large unbudgeted expenses. Operating reserves should not be used to cover a long-term or permanent income shortfall. Sometimes this means that restricted funds sit idle in the bank for a while and the nonprofit cannot use those funds for some other purpose. At the high end, reserves should not exceed the amount of two years’ budget. A resource is that amount of a geologic commodity that exists in both discovered and undiscovered deposits—by definition, then, a “best guess.”Reserves are that subgroup of a resource that have been discovered, have a known size, and can be extracted at a profit. Reserves are there to help the organization operate programs and services, not to create an untouchable bank balance to admire. Mineral Resources. The first is for operating reserves only and will be useful for nonprofits with a single cash reserve that is primarily used for occasional unexpected shortfalls. These examples are a starting point intended to help you address the essential questions and decisions. There are other kinds of reserve funds that can be established to build up cash balances for specific purposes such as building repair and replacement reserves, program reserves to support program continuation if income is uncertain, and opportunity reserves to allow the nonprofit to provide seed funding for a new idea or innovation.

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