Can you get a copy of the logs? Costs for transporting, treating, and refining metals and concentrates are usually considered part of the revenue calculation. The feasibility study is only a step along the design path.

Mining Takeovers – Should Governments Be (Heavily) Involved? These can include: 7.

Is the disposal area adequately sized?

Approvals impact the timing of a project.

Junior Mining – Are People Still Investing? Royalties can create substantial liabilities, and should be well understood. It is necessary to match a particular mining method or methods to an ore reserve to ensure that the deposit will be mined effectively.

1. initial fill or first charge of reagents and consumables (in the process circuits) initial inventories and spares (in the warehouse).

Very insightful at a time where we are considering M&A’s to execute the strategy. Is inflation included in the cost estimate? What is the mining recovery? Higher Metal Prices – Should We Lower the Cut-Off Grade?

The pre-feasibility study is a critical step for project development as it represents the minimum prerequisite for conversion of a geologic resource into a reportable reserve.

5. Are they tax deductible?

Getting resources out of the ground requires a lot of money, and investors won’t risk their capital on projects without a reasonable prospect of success.

By now all processing parameters have been through detailed and accurate metallurgical test-work has occurred. How are they calculated?

Preference? 10.

Problems often happen at the interface between two disciplines. At this stage the investment risk may be relatively small but it is obviously undesirable to expend further funds on something that has no chance of being economic.

At this stage the investment risk may be relatively small but it is obviously undesirable to expend further funds on something that has no chance of being economic. Allow adequate time in your schedule, and funds in your budget, for translation both into English for your use and back into the host language for the owner.

2. In this paper, the terminology set out in the Guidelines For The Australasian Code For Reporting OJ Identified Mineral Resources And are Reserves (September, 1992) is used (Table 1).

They account for most of the owner's investment and they determine the amount to be borrowed from the banks. It is not unusual, especially in operating mines, for the ore reserve estimate and the mining plan to be out of agreement because they are not always updated with the same frequency. 1. Whether the project design has been optimised in the feasibility study will depend on the time and budget allowed. Does any topographic, cultural, social or structural feature interfere with the development of the ore reserve? 5. These can include: 8. To provide a justification for proceeding to a final Feasibility Study. 5. Thanks for the insight on due diligence, and would appreciate it very much if you could kindly share an excel copy of your dd check list? 6.

This just means that the study achieves a quality and standard that would be acceptable for submission to bankers. Form I Attached 11-30 Questionnaire for mining projects Attached 8 -10 Pre-feasibility report Attached 31-81 Environment Management Plan Attached 63 -78 3.

3. Obtain a complete organization chart, from the first level of operator to the highest executive, including the owners of the corporate entity.

Resource Estimates – Are Independent Audits A Good Idea?

At what discount rate? Concentrate Smelter Contracts - If a mineral project produces a concentrate, then it sells the concentrate, not just the individual metals in it. Open Pit: stripping, benching, roads, waste dumps, Underground: shafts, ramps, drifts, sublevels, ore/waste passes, raises, ventilation. What is the currency of the operating labour? How were unusual results treated? Are there management and personnel characteristics that contribute to the success of the operation?

These can include: 13.

Mid-year or end-of-year convention? 12.

What is the exchange rate?

There are varying degrees of detail required at the different stages of evaluation in a project, from the "quick and dirty" overview, to the pre-feasibility study, to a full detailed feasibility study, to a due diligence review. None of the content on Star Investing is intended to constitute financial product advice. Of course they have to be reasonable but they are less strict than later stages because all a scoping study determines is whether or not further studies should go ahead. What is the final product of the process? At this stage the miner wants to see how the material it’s dug up so far respond to processes such as floatation, gravity concentration or leaching. One way of determining this is through feasibility studies. 6. For example, where ore reserves cannot be proven by surface drilling underground development may be required for exploration at an early stage of the project.

Is there any government support? Oxidized surface material is often mined in the early years of an open pit operation and it may differ considerably from the underlying portion of the ore body. Can you get a copy? Many good projects have failed because of difficulties among the owners.

Does the metallurgical testing and design accommodate this? What is the exchange rate?

Does the "owner" have an option on the property? 7.

Do the selling prices include inflation? 3. Category/ Sub category & Schedule B/B2 & 1(a) 2. PEA’s – Is it Worth Agonizing Over Details, Multi-Company Engineering Studies Can Work Well…or Not. Obtain a copy of the operating cost estimate.

The bankable feasibility study. I enjoyed your article also, and concur that each project requires tailoring to achieve the desired objectives and commonly the process is in more than 1 stage with a higher level review to begin before a more indepth review subject to passing the high level review.

4.

Normally, the feasibility study will take place in parallel with the baseline investigations of the EIA, and will be guided by its results on an ongoing basis.

1. What is the recovery? Are there known relationships between tonnage, grade, recovery, etc., which can be built into the calculations?

AusIMM is the home for all professionals in the resources sector. Some items are included in the capital cost estimate that should be itemized separately, because they will depend on other activities or assumptions. Mining schedules tend to measure time in months or years, beginning with the first mining activity, usually pre-stripping for open pit mines, or collaring the shaft for underground mines. 5. The significant distinction is between Identified Mineral Resources (or Mineral Resources) and Ore Reserves, and the subcategories within these two which reflect the level of confidence in the estimate.

I will appreciate it if you can please share your excel DD checklist