Preliminary Evaluations Of Surface Mine Prospects

2.3-1. Introduction. The subject-"Preliminary Evaluation of Coal, Metallic and Industrial Mineral Deposits for Surface Mining'-seems at first glance to be definitive and not likely to be misinterpreted. Nevertheless, there are widely divergent opinions as to what is meant by "preliminary" and even as to what is meant by "evaluation." Some definition and qualification is necessary in order to provide a readily recognized basis for discussion. Evaluation evokes the idea of organizing extant data and judging its significance especially in the economic sense. It also may evoke the concept of the physical processes of acquiring the data that will characterize the deposit such as the geologic mapping, drilling, etc. Castle (5) considers that evaluation may embrace psychological aspects wherein human traits as, for example, over optimism might cause the evaluator to overlook obvious project weaknesses. In this chapter, evaluation is discussed primarily from the viewpoint of economically appraising a project from data available at a given point in time. The qualifying adjective "preliminary" is not easily defineable. In fact, some kind of evaluation proceeds, if not continuously, intermittently over the full span of exploration and early stages of development of a deposit. Bailly (1) comments: "Sometimes, before starting exploration in new areas or countries for a given commodity, we establish models to define what minimum combinations of re- coverable grade and tonnage are needed to give the minimum acceptable rate of return established by corporate policy. Then, before starting physical exploration in any target area we try and guesstimate optimistically what best 'geometry-grade-tonnage' can be expected. If these are acceptable in light of above minimum combinations, exploration is started as soon as funds are appropriated for the target area.''