To a bank that granted his request for a loan, the late American
humorist Robert Benchley responded, `I don't trust a bank that
would lend money to such a poor risk'. This quotation is unlikely to be the norm among mining
companies that secure project financing. However, a poor
appreciation of one of the key risks of a mining project, the
reserves, often results in disastrous financial consequences. This
conclusion is the subject of the discussion and analyses presented
in this paper.