A Mining Project Evaluation Technique Incorporating The Response Of Mine Management To The Resolution Of Uncertainty ? Introduction

Mining project investment concerns the installation of mine capacity for the purpose of generating a stream of future economic benefits. In order to make this type of investment decision, the optimum specifications for the project must first be determined. Then, the economic justification of the investment tin be evaluated based on these specifications. Economic evaluation to guide mining project investment decisions is based on a proposed plan for mining the deposit over its operational life. If single point estimates are made of deposit characteristics and environmental parameters* as the basis for assessing a future stream of economic benefits associated with the investment, a future mining-plan can be optimally fitted to these estimates and, to the extent that such estimates are actually realized, this plan will retain optimality.