Mining

When a preliminary feasibility study for a mineral project is not yet complete, but you want to estimate the mineral deposit value, you can use the back-of-the-envelope calculation described in this article. Before calculating the potential mineral deposit value, gather specific data about the ore body and individual drill results. This data can be found … Read more

For conducting a mining project’s break even analysis, you first need to know about the operational expenses (OPEX). When the OPEX is known, you can calculate the mineral’s cut off grade, which is the break even grade, below which it is not economically viable to mine the ore. When the cost price per tonne (OPEX) … Read more

The cost of mining projects can vary greatly depending on the location, type, and quantity of minerals in the deposit. Generally, underground mining is more expensive than open-pit mining, as open-pit mining involves extracting minerals near the surface with a maximum depth of around 200-400 meters. A mining company’s feasibility study, which can often be … Read more

The metal recovery rate, also known as the mineral recovery percentage, indicates the percentage of valuable metals that are expected to be available for sale after the refining process. You can find the metal recovery rate in a mining company’s National Instrument 43-101 or a similar applicable international reporting standard. Example: When you read a … Read more

When reading a company’s press release announcing the mineral resources or reserves of a polymetallic deposit, it’s common to see them reported in metal equivalents of the primary metal. This involves multiplying the secondary mineral(s) by their current prices, and then dividing the result by the current price of the primary mineral in the deposit … Read more

Drilling results for base metals are typically reported in percentage per tonne (%), while precious metals are reported in grams per tonne (g/t). As an investor, it’s crucial to understand if a drill result indicates low-, medium-, or high-grade mineralization, as this can provide insight into the potential financial outcomes of the deposit. After analyzing … Read more

Soil sampling and geophysics are employed by a mining company’s geologist to detect the presence and position of an ore body (i.e., an anomaly). When an anomaly is found, the mining company initiates a drilling program to test the extent of the mineralization. The drilling program is followed by an assessment to determine if the … Read more

Depending on the geological structure of the Earth’s crust, mining companies can choose between different drill types. I have summarized the most common drilling rigs in the following table: Drill Methods Drilling Rig Maximum Depth Costs Auger Drilling Roughly up to 25 meters Lowest Percussion Rotary Air Blast Drilling (RAB) Roughly up to 150 meters … Read more