Page 64 - Introduction to investing in Gold

The Beginner's Guide to Investing in Gold
You also need to be aware of the different types of reserves and resources. This requires some detailed analysis, but if you’re new to the sector, I’d suggest you look for at least 400,000 ounces in the Measured and Indicated category from a single deposit. As you get more experienced, you might choose to look for smaller deposits.
Please note that often, the resources could be 1,000,000 ounces, but that could well be from several deposits. Until you become more familiar with the sector, I would be inclined to focus on the main deposit rather than the resource.
Having said that, you do need to understand what is meant by resource.
The hierarchy is broadly as follows:
The lowest level of geologic knowledge is an Inferred Resource.
When more work has been carried out, it might be reclassified as an Indicated Resource.
Then, potentially, it becomes a Measured Resource (this is often grouped together with an Indicated Resource and is then known as a Measured and Indicated Resource).
The next stage is to convert a Measured Resource into a Reserve. For example, a bank or other capital provider may want greater certainty that the resource is not only there but economical to mine at prevailing prices. Reserves are split into two categories: probable and proven. Naturally, you want as much as possible to be in the proven (higher) category, but a probable reserve is also useful.
If you want to learn more about this, here is an article with more information that may help: Classification of Mineral Resources and Reserves
Infrastructure
Here, infrastructure refers to roads, rail, power, and water. These should all be taken into consideration. Mines need to be accessible, and they often consume a lot of power and water. If a company finds a great deposit, they still have to find the money to construct the mine, transport the ore, and process it, so they need a decent infrastructure.
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