Accuracy Of Feasibility Study Evaluations Would Improve Accountability

Believe it or not, mine evaluation and feasibility studies are as old as the industry itself. In the first recorded writing on mining by Agricola (1556), he gave several clues as what to look for in evaluating a mine, to determine if it was economically feasible. Below is the guidance from Agricola, with my interpretation of what he would include today. Now a miner, before he begins to mine the orebodies must consider seven things, namely: ? The situation (the geography/topography). ? The conditions (the geologic/mineralogic and mining conditions). ? The water (availability, hydrology and ownership). ? The roads (plus the railroads, power lines, all other infrastructure). ? The climate (the weather-rainfall/environment). ? The right of ownership (the land and legal entitlement). ? The neighbors (the social environmental concerns of the area). It is amazing how much of his guidance has not changed in 455 years. Yet Agricola gives no guidance on determining the correct cost, or determining the correct commodity pricing. But he does give a few words of caution on the related ethics involved on buying mineral properties: ?A prudent owner, before he buys shares, ought to go to the mine and carefully examine the nature of the vein, for it is very important that he should be on his guard lest fraudulent sellers of shares should deceive him.? Three hundred years later (1866), to further amplify this point, in the most famous thing that Mark Twain never said, as an introduction to a lecturer to an audience of gold-miners at Red Dog, CA, the famed author/humorist allegedly described a mine as ?a hole in the ground owned by a liar? (Farrar & Rinehart, 1935). So, one might conclude that between these two dates, the mining industry did little to improve its reputation. Unfortunately, since Mark Twain allegedly made those remarks, we have not done near enough to gain accountability for the mineral industry.