Feasibility

A comprehensive design and costing study of the selected option for the development of a mineral project in which appropriate assessments have been made of realistically assumed geographical, mining, metallurgical, economic, marketing, legal, environmental, social governmental, engineering, operational and all other modifying factors, which are considered in sufficient detail to demonstrate at the time of reporting that extraction is reasonably justified (economically mineable) and the factors reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The overall confidence of the study should be stated.

Basis of Estimate (Accuracy 10-15%)

This Class of estimate, sometimes called a feasibility estimate, represents a realistic assessment of a project’s capital development cost. This type of estimate requires that sufficient pilot metallurgical test work is completed in order to optimize the process flow diagrams and material balance. For an underground mine, sufficient mine planning should have been completed in order to identify optimum surface and underground layouts and shaft configurations. Similar appropriate planning should be done for open pit configurations. General arrangement drawings would be prepared and all major equipment sized. Key equipment specification would be prepared and key enquiries would be issued to several suppliers who could supply costs on a budget basis. The compilation of the estimate would depend on a mixture of techniques, including approximate quantity take-offs, factoring techniques and unit costs.