Resource Economics and Mineral Exploration

Abstract

Global mineral economics and the strategies of mineral exploration -- including geological, geochemical and geophysical methods, but also non-geological factors such as organisational, political and environmental aspects. Changing external lecturers.

Objective

Practical understanding of the procedure of exploring a mineral prospect, based on geological analysis, exploration by drilling, resource calculation of tonnage and grade as a basis for economic evaluation for reporting to investors.

Content

This block course in will comprise 4 half-day lectures and a series of practical exercises from selection of a mineral property to discovery of mineral resources and their valuation. Teams are formed as Limited Partnership companies that have to select and bid for a mineral property offered during an auction. Each company has the same nominal budget. The highest bidder purchases the selected property, others need to purchase the remaining properties during an auction. Justification for selecting the property is justified in a report. The companies must interpret the geology of their mineral property to prepare a diamond drill program to discover and, eventually, delineate the mineral resources. This drill program is presented in a report prior to drilling. Drilling in the tri-dimensional matrix of the property is simulated using the software FOREUR, until budget lapse. The companies must select drill intervals for chemical analysis to document the extent and composition of the discovered mineralization. Portions of the mineral rights can be traded for capital between the companies. An estimate of the tonnage and grade of the discovered resource is prepared using geometric methods and GIS software (ex. Arc GIS). The ground value of the resource is estimated by a computation of the Net Smelter Return at current metal prices. The results of the exploration program are presented in a comprehensive report.

Resources