Professional Documents
Culture Documents
128June 2015
The evaluation of a mining project from point at which ore reserves can be publically As the level of engineering detail increases through
reported. Some of the other types of reports and each study stage, as measured by accuracy, the
exploration through development and stages have different meanings for different overall degree of uncertainties decreases.
production is a lengthy and companies, and a lot of the definitions are based on
Preliminary Economic Assessment (PEA) /
a companys incorporation (public vs. non-public), its
complicated process. size (major vs. junior) where the mining project is Scoping Study
based and what its historical reporting requirements The PEA, also commonly referred to as a scoping
Mine development commitment activities for a entailed (for example in the former Soviet Union vs. study is an early level study and the preliminary
potential project are initiated when a mineral China vs. in South America), etc. evaluation of the mining project. The principal
resource is identified and continue through to the
This paper and the enclosed table lists RPMs parameters for a conceptual study are mostly
start of construction. The technical feasibility and the
guidelines for the minimum suggested requirements assumed and/or factored. Accordingly, the level of
economic viability of each project are determined
for the three key levels of engineering studies, accuracy of capital costs is as low as 50%.
during the phases of mine development with more
regardless of jurisdiction, incorporation or Although the level of drilling and sampling with the
detailed engineering data required at each stage.
geographic location. We highlight the word required QA/QC, must be sufficient to define as a
There are at least four levels of engineering studies
minimum and recognize many studies exceed our minimum an inferred resource. Flow sheet
during development that are commonly
suggested guidelines. We also recognize different development, cost estimation and production
acknowledged by the mining industry:
companies and different engineering firms suggest scheduling are often based on limited data, test
1. Conceptual Study different minimums than does RPM. work, and engineering design. Metallurgical test
2. Preliminary Economic Assessment (PEA), or work is based on ore types and examines
Standards or codes have been developed in many mineralogical, comminution and separation
Scoping study
jurisdictions around the world to ensure factual and characteristics in order to establish the likely
3. Pre-feasibility (PFS) consistent reporting of mineral data is practiced. flowsheet and product recoveries. The results of a
4. Feasibility (FS) Most or all these codes have adopted similar PEA typically identify:
definitions for data collection, resource and reserve
Some other commonly used study names include: Probable mining and processing schemes
reporting, and the other aspects of evaluating
Definitive Feasibility Study (DFS) mineral deposits in advancing stages of evaluation. Technical parameters requiring additional
Bankable Feasibility Study (BFS) Two common codes used in the industry are the examination or test work
Front End Engineering Design (FEED) CIM reporting code and associated Canadian NI- General features and parameters of the
43101 and the Australian JORC code. Neither of proposed project
Stage Gates Studies
these two codes should be confused with an Magnitude of capital and operating cost
Front End Loading (FEL) Studies engineering study as they have been developed to estimates
Basic Engineering ensure that misleading, erroneous or fraudulent
Level of effort for project development
Detailed Engineering information relating to mineral properties is not
reported to investors on the stock exchanges they
A PEA is useful as a tool to determine if subsequent
oversee.
For this paper RungePincockMinarco (RPM) is exploration activities and engineering studies are
addressing only the PEA, PFS and FS types of Included in most standards are references to warranted. However, it is not valid for economic
reports that are used by companies to evaluate definitions of Preliminary Economic Assessment/ decision making nor is it sufficient for reserve
projects, meet regulatory requirements and seek Scoping studies, pre-feasibility studies, and reporting.
financing. These are key studies to the industry feasibility level studies, and the following
since reporting jurisdictions use them to define the descriptions are consistent with those definitions.
Pre-
Chapter 18 JORC or CIM or SAMREC PFS
Development
Advanced Devel-
SEC Industry Guide 7 FS
opment
AIM Rules Guidance Note 2009 Exploration JORC or CIM or SAMREC PFS
Underground Drilling Review of existing data Drilling if accessible Detailed drilling if accessible
Geophysical and
Preliminary; some
Samples geotechnical sampling; test All sampling programs complete
outcrop samples
pits
RungePincockMinarco is a consulting and engineering firm serving the international mineral resource industry. Your comments and
suggestions are always welcome. Contact RungePincockMinarco
165 S. Union Blvd., Suite. 950, Lakewood, Colorado 80228 TEL 303.986.6950 info@rpmglobal.com www.rpmglobal.com