A mining feasibility study is an evaluation of a proposed

mining Mining is the extraction of valuable minerals or other geological materials from the Earth, usually from an ore body, lode, vein, seam, reef, or placer deposit. The exploitation of these deposits for raw material is based on the econom ...

project to determine whether the mineral resource can be mined economically. There are three types of feasibility study used in mining,

order of magnitude An order of magnitude is an approximation of the logarithm of a value relative to some contextually understood reference value, usually 10, interpreted as the base of the logarithm and the representative of values of magnitude one. Logarithmic di ...

, preliminary feasibility and detailed feasibility.

Order of magnitude

Order of magnitude feasibility studies (sometimes referred to as "scoping studies") are an initial financial appraisal of an inferred mineral resource. Depending on the size of the project, an order of magnitude study may be carried out by a single individual. It will involve a preliminary mine plan, and is the basis for determining whether to proceed with an exploration program, and more detailed engineering work. Order-of-magnitude studies are developed by copying plans and factoring known costs from existing projects completed elsewhere and are accurate to within 40–50%.

Preliminary feasibility

Preliminary feasibility studies or "pre-feasibility studies" are more detailed than order of magnitude studies. A preliminary feasibility study is used in

due diligence Due diligence is the investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract with another party or an act with a certain standard of care. It can be a ...

work, determining whether to proceed with a detailed feasibility study and as a " reality check" to determine areas within the project that require more attention. Preliminary feasibility studies are done by factoring known

unit cost The unit cost is the price incurred by a company A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective. Company members share a com ...

s and by estimating gross dimensions or quantities once conceptual or preliminary engineering and mine design has been completed. Preliminary feasibility studies are completed by a small group of multi-disciplined technical individuals and have an accuracy within 20-30%.

Detailed feasibility

Detailed feasibility studies are the most detailed and will determine definitively whether to proceed with the project. A detailed feasibility study will be the basis for capital appropriation, and will provide the budget figures for the project. Detailed feasibility studies require a significant amount of formal engineering work, are accurate to within 10-15% and can cost between ½-1½% of the total estimated project cost.

Footnotes

{{Reflist Mining engineering

Feasibility study A feasibility study is an assessment of the practicality of a project or system. A feasibility study aims to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats pr ...