RE: 5%6 Oct 2021 12:40
From Chapter 6 of the Hard Rock Miner's Handbook.
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A feasibility study is an evaluation of a proposed project to determine whether and how it can be mined economically. Detailed Feasibility Studies extend the evaluation to determine the maximum profit or most secure profit to be obtained and provide a blue print for implementation. Three types of feasibility studies are described in the following paragraphs; however, the remainder of this chapter is mainly devoted to the preparation, execution, and appraisal of the Detailed Feasibility Study.
Order-of-Magnitude Feasibility Studies constitute an initial financial appraisal and are often carried out by a single individual. To be effective, this study should include an elementary mine plan. Order-of-Magnitude Studies may evaluate whether to initiate or proceed further with an exploration project that has an indicated mineral resource. When an underground entry (shaft or ramp) is required to complete an exploration program, this type of study is employed to determine the benefit to (and possible interference with) subsequent permanent entries. Order-of-Magnitude Studies are accurate to ± 40-50% and are usually obtained by copying mine layouts and factoring known costs and capacities of similar projects completed elsewhere.
Preliminary Feasibility or “Pre-feasibility” Studies are the second order and are useful in the following cases.
• Due diligence work
• Determining whether to proceed with a Detailed Feasibility Study
• A “reality check” on detailed estimates to pin point areas meriting further attention
Preliminary Studies are accurate to ± 25-30% and are typically obtained by factoring known unit costs and estimated gross
dimensions or quantities once conceptual or preliminary engineering has been completed. Preliminary Studies are usually
completed by a small group of multi-disciplined technical people.
Detailed Feasibility Studies are normally the highest order and most important because they are the litmus test for proceeding with a project. Typically, Detailed Studies are the basis for capital appropriation and provide the budget figures for the project. They may be completed with a financial accuracy of ±10% provided that a significant portion of the formal engineering is completed. In some cases, Detailed Studies are completed to an accuracy of ±15% with quantities derived from general arrangement drawings only. When the engineering is later sufficiently advanced, a second estimate is made to an accuracy of ±10% to provide confirmation and firm budget numbers.
The definitive feasibility study for a small, simple mining project may be completed in as little as 6-8 weeks. For
a medium-sized venture it may take 3-4 months, and a large mining project will take 6-9 months. A world-scale
mining project may require more than one y
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