Evaluation of Exploration Projects

It is difficult to evaluate exploration properties in a manner that is transparent, repeatable and easily re-calculated to cater for different geological interpretations, but the risk-based assessment methodology, the Geological Risk Method, developed and described by Lord et al (2001) attempts to satisfy all these criteria. This paper examines a case study example based on valuations of exploration projects conducted by SRK Consulting using this methodology, and describes some of the advantages and limitations of the method.