csa global - unearth the basic foundations of resource ... · at the geology and resource...

UNEARTH THE BASIC FOUNDATIONS

OF RESOURCE EVALUATION

Patrick Maher

Manager - Eastern Australia & Pac-RIM

18th October 2018 Brisbane Resources Roundup www.csaglobal.com

Resource Project Evaluation

18th October 2018 Brisbane Resources Roundup www.csaglobal.com

Mineral Exploration & Mining Project Evaluation

Resource Project Evaluation

18th October 2018 Brisbane Resources Roundup www.csaglobal.com

18th October 2018 Brisbane Resources Roundup www.csaglobal.com

Resources & The Investors

Evaluation of Risks

Resource Project Evaluation

18th October 2018 Brisbane Resources Roundup www.csaglobal.com

Decreasing Risk

Exploration Study Phase Operations

Resource Project Evaluation

18th October 2018 Brisbane Resources Roundup www.csaglobal.com

Strengths

Weaknesses

OPPORTUNITIES

Threats or RISKS

Resource Project Evaluation

18th October 2018 Brisbane Resources Roundup www.csaglobal.com

Resource Project Evaluation

18th October 2018 Brisbane Resources Roundup www.csaglobal.com

Basic Foundations –

Geology and Mineral Resource Estimation

What underpins a project’s value?

18th October 2018 Brisbane Resources Roundup www.csaglobal.com

Source: Burgundy Mining Advisors, 2013

Foundations of Value

= Geology & Mineral

Resource Estimation

Wrong geology = rubbish resource

= fantasy NPV

With Mineral Resource estimates

focus on:

Volume / Grade / Density

Focus on Basic Foundations

18th October 2018 Brisbane Resources Roundup www.csaglobal.com

Public Reporting Codes (e.g. JORC) provide an excellent

starting point

• The Australasian Code for Reporting of Exploration Results,

Mineral Resources and Ore Reserves (‘the JORC Code’) is a

professional code of practice that sets minimum standards for

Public Reporting of minerals Exploration Results, Mineral

Resources and Ore Reserves.

• Table 1

• Table 1 provides a checklist or reference of criteria to be considered by

the Competent Person in developing their documentation and in

preparing the Public Report.

• This includes Geology and Mineral Resource estimation.

Where to look?

18th October 2018 Brisbane Resources Roundup www.csaglobal.com

Basic Steps in the Big Picture

• Essential basic steps in evaluating any resource project

(exploration or mining) focus on the quality of work done

at the geology and resource estimation stages.

• Generating an understanding of these two aspects of a

mineral resource project can lead to a solid understanding

of the projects worth and potential for success.

• A Mineral Resource estimate built upon solid geological

interpretation is the best foundation for any subsequent

Mining Study.

Resource Project Evaluation

www.csaglobal.com18th October 2018 Brisbane Resources Roundup

CSA Global is a leading mining, geological, technology and management consulting

company which provides high quality solutions to our clients in the global minerals

industry. Our staff include geologists, mining engineers, project managers, data

management professionals and technical personnel.

About CSA Global

www.csaglobal.com18th October 2018 Brisbane Resources Roundup

For more information

please contact:

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18th October 2018 Brisbane Resources Roundup www.csaglobal.com

Graham Jeffress

Manager – Corporate

graham.jeffress@csaglobal.com