The Anatomy of a Mine - Mining and the Environment: From Ore to Metal - page 182

FIGURE 4.8
The Various Levels of Efforts and Accuracy in Developing a Mining
Opportunity

50%

Scoping

40%

The evaluation of a mineral deposit from exploration through development
and production is a lengthy and complicated process, elaborated during
each phase of mine development, with increasing level of confi dence and
accuracy at each stage.

Preliminary
Feasibility

30%

Bankable
Feasibility

20%

Engineering
Procurement
Construction

10%

Operation

0
Year

0 1 2 3 4 5 6

% Completion of Engineering
% Capital Expenditures

15%
1-2%

50% 90% 100%

100% 10% 50%

IDENTIFY SELECT DEFINE EXECUTE OPERATE

studies if, how, and when the deposit should and can be mined. There are two levels of engi-
neering studies during development that are commonly acknowledged by the mining indus-
try ( Figure 4.8 ): conceptual and feasibility, the latter further subdivided into pre-feasibility and
bankable feasibility (Pincock et al . 2005 from which the following discussion borrows).
Figure 4.8 illustrates the sequential activities and related studies in evaluating and
developing a mining opportunity:
●

Identify - determining the potential value of the opportunity through exploration;

●

Select - selecting the preferred opportunity realization concept based on conceptual
studies;

●

Dei ne - i nalizing scope, cost, schedule, and i nancing based on feasibility studies;

●

Execute - producing an operating asset using EPC contractors (engineering, procure-
ment, and construction); and

●

Operate - producing return to shareholders through ore extraction.

A brief discussion of each step follows.

Evaluation of the Exploration Programme - Differentiating
Resources from Reserves

Should we? The evaluation of an exploration programme is a continuing process applied
to every step in the exploration programme. At each stage the exploration manager has to
decide whether to continue exploration or abandon the site. If exploration is terminated
too early, an ore body may be missed. On the other hand, continued exploration where no
ore body is to be found wastes time and money.
As elaborated above, exploration is a progressive process. Initial exploration drilling and
testing at selected locations shows the presence and extent of ore-grade mineralization.
Dei ning the mineral deposit is then achieved with more and more closely spaced holes.

Exploration is a progressive
process.