Evaluating Mining Ventures Via Feasibility Studies

In Part I of this article, published in the September issue of MINING ENGINEERING, Edward S. Frohling and Robert M. McGeorge of Mountain States Mineral Enterprises, Inc., reviewed the general overall financial aspects and methods of raising the necessary capital for developing the mine. In Part 2 of this two-article series, we will present several case histories to show how realistic feasibility studies are used for evaluating the choices and options entailed in mining ventures. Basically, after a potential ore body has been discovered, and the necessary funds obtained for the development of the deposit, the next major problem is one of ascertaining what specifically is to be produced, and the costs of production. The profit potential of the mining venture can then be accurately assessed by the mine owner, operator, or loan officer.