AMC is focused on mining smarter. And this focus is available in most regions and commodities from our world-renowned experts. Combining this experience with the latest modelling and planning techniques enables optimization of the highest quality and reporting to the international standards covered by CRIRSCO (such as the JORC Code, NI43-101, SAMREC and PERC).
AMC and Pre-Feasibility Studies
Progressing a resource project from a mineral resource estimate to a successful new mining operation is a complex, costly and time-consuming activity. Whether greenfields or brownfields, careful assessment of many factors across multiple professional disciplines, and a structured approach to the studies, has been proven to be the most cost-effective method of developing projects.
This assessment generally follows the following progression as more data becomes available:
- Concept study - to provide an opportunity to identify the technical and economic potential of an early-stage resource and to justify approval of funding for more detailed studies. In the Canadian context this may include a Preliminary Economic Assessment.
- Pre-Feasibility study - to collect sufficient information allowing an experienced consultant to assess many opportunities to select one that mitigates all material risks and best satisfies the objectives of the project owner using a variety of metrics. Using data and benchmarks, verified from many existing operations, we can quickly assess the confidence level of our planning work for use as input to the PFS, allowing selection of the favoured operation.
- Feasibility Study – to prepare the technical and economic basis for one chosen option at sufficient level of confidence for preliminary regulatory assessment and financial approval to proceed to detailed design and construction. A Feasibility Study for one option is generally far more costly than multiple options considered at the Pre-Feasibility Study level.
The mining industry experts at AMC regularly conduct studies at all levels. Though our great passion and skill is to assess resources at the Pre-Feasibility
Study stage to ensure the surface, underground or combined operations are based on a design that is tailored to the needs of the project owner. We evaluate the mineral resources, undertake the geotechnical assessment, study the mining methods, design the preliminary mining related infrastructure, and estimate the mining costs and schedule with appropriate accuracy, always keeping smart mining solutions at the forefront of our thinking.
With more than 300 Pre-Feasibility Study projects in our portfolio, we have a wealth of experience in many mining methods, commodities and geographical conditions needed for collecting reliable data and creating a strong Basis of Design for the favoured option. This Basis of Design provides the key input to allow competitive tendering for the Feasibility Study and ultimately construction of the project.
Why your Pre-Feasibility study matters
- Collection of detailed information on exploration, geotechnical, hydrological, metallurgical, environmental and social factors may require commitment to a major exploration program (it is possible to commit $30M or more for ongoing exploration and development). For example, where reserves cannot be proven by surface drilling, a decline may be developed for exploration, sample collection and analysis at an early stage of the project.
- A Pre-Feasibility Study is an important step in evaluating a project. It can be used as the basis for an initial Ore Reserve estimate under many reporting codes (such as the JORC Code) and subsequent attraction of buyers, joint venture partners or financiers, and helps identify potential capital at risk. This step in the life of a mine may, full or in part, be completed for potential purchasers as part of the due diligence process.
- The Pre-Feasibility Study probably provides the best opportunity to influence the ultimate outcomes and returns of a project. Confidence in the Pre-Feasibility Study outcomes will allow commitment of the cost and time involved in a Feasibility Study with low risk of needing to repeat this costly step as more data becomes available. And the Pre-Feasibility level of analysis and subsequent conclusions allow a decision on whether to proceed to a Feasibility Study.
The main features of the Pre-Feasibility Study are:
- Material risks to the project identified and mitigating steps proposed to allow more detailed data collection and assessment during the Feasibility Study stage.
- The right Basis of Design identified before detailed design and cost estimation.
- Trade-off studies completed to select preferred options from a range of alternatives.
- Preliminary studies completed with resource, geotechnical, hydrology, geometallurgical, mining, processing, environmental, social, and infrastructure requirements in mind.
- Bench scale metallurgical tests and preliminary process design completed.
Once a Pre-Feasibility Study is completed, our clients are generally ready to publicly report the results of studies to date and proceed to the more costly Feasibility Study with a better understanding of expected costs, potential mining industry solutions and the unearthed value of their new project.
Call us to discuss your study with the experts.