Mine Life Cycle – How Accurate are the Resources Reported in Each Project Phase

A typical mining project goes through different phases which are collectively referred to as the mine life cycle. In the following table1 you see a detailed description of the mine life cycle. First, an exploration program is initiated to gather information about the potential presence of a mineable orebody. Exploration information is defined according to … Read more

Metal Value per Tonne – How You Can Determine the Mineral Value per Tonne

The metal value gives you an idea about the potential profitability of a mineral project. By calculating the metal value and then deducting the (estimated) mining costs you get an insight into the viability of bringing this mineral project into production – at current metal prices. An indication of the current mineral value of the … Read more

Break Even Analysis – How to Calculate the Cut Off Grade

Break Even Analysis - How to Calculate the Cut Off Grade

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. To find out how I come up … Read more

Mining Costs – CAPEX vs. OPEX

Mining Costs - CAPEX vs. OPEX

Depending on the location of the project and the type and quantity of the minerals contained within the deposit, the mining costs can vary a lot between different mining projects. In general, underground mining is more expensive than open pit mining as with open pit mining the minerals are found near the surface at a … Read more

Metal Recovery Rate – How to Interpreted the Mineral Recovery Percentage

Metal Recovery Rate - How to Interpreted the Mineral Recovery Percentage

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

Drilling Program – Step Out Drilling vs. Infill Drilling

Drilling Program - Step Out Drilling vs. Infill Drilling

Soil sampling and geophysics1 is applied by the mining company’s geologist in order to detect the presence and position of an ore body (i.e. an anomaly). When an anomaly is found, the mining company will initiate a drilling program in order to test the extent of the mineralization. The drilling program is followed by an … Read more