Importance of Independent Due Diligence in Mining IPMI Conference Presentation June 2013

International Precious Metals Institute
Annual Meeting – 25 June 2013 – Phoenix
The Importance of Independent,
Qualified, Technical Due Diligence in
Mining for Investors, Owners, & Managers
Tim Alch
V.P & Senior Minerals Business Analyst
Behre Dolbear & Company (USA), Inc.
+1.845.480.1434

BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Overview - What to Look For When
Evaluating Mining Projects
• Recent and current trends
• All resources are not golden
• Issues to examine and consider
• Prepare for the best and worst

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0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
$PerTonneNickel
$PerTonne(Copper,Lead,Zinc,Aluminum)
Nominal Industrial Metal Average Prices
1970 – 2012
Aluminum Copper Lead Zinc Nickel
Recent Years Have Been Good, Relative to
Price Cycles of the Past 40 Years
Data Source: USGS and LME
Capital
Destruction
Capital
Creation
Capital
Destruction
?

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Metals Demand Has Grown,
Sentiment Now Is Cautious
• Urbanization, industrialization continues in
China, SE Asia, India, parts of LatAm, MENA
driving industrial metals and energy demand
• Security & stability of supply are a concern in
China, Korea, Japan, Middle East, etc. and
select co.s e.g., fuel (coal, uranium), fertilizer
minerals, technology/critical metals, etc.
• Economic growth in China, EU, etc. is slower
• Metals prices and valuations are down
• Risk-off attitude is plaguing sector

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China‟s Population Continues to Urbanize

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Largest Mass Migration in History Sets
Theme for World‟s Rising Middle Class
• In the next 20 years, ~325 million people to move to urban areas in China
• China‟s middle class may to double to 600+ million by 2020
• A similar shift is occurring elsewhere around the world

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China Consumes About Half the
World‟s Metals, Energy, etc.
Source: UBS

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China‟s Share of Global Metals
Consumption May Level Off
Source: The Economist and UBS

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Cautious Now; Long Term Demand Positive
• Mining companies have reduced spending
• Investors and lenders are very cautious
• Cash is king, may be primed for M&A
• Many „Juniors‟ are short of capital
• Tough markets may go into 2014
• Longer term - supply may struggle to meet demand
• Sporadic price spikes in metals markets can occur
• Constraining new supply are: Declining ore grades;
Higher costs; Fewer large deposits; Larger „takes‟
by Governments; Changing political winds; etc.

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Gold <$1,300/oz Is Well Below Recent Highs,
Narrowing Margins - How Low Can It Go?
Source: BMO Research

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Since Sept 2011 Metals Equities Fell
Disappointed Investors Flock to S&P
Source: Cowen Securities
-
50%
100%
150%
Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13
GDXJ Coal Index Copper Index S&P 500
Source: Capital IQ. Data as of April 26, 2013.
Note: Coal Index represents Dow Jones U.S. Coal Index. Copper Index based on Cowen Securities Investment Banking coverage database.

BEHRE DOLBEAR
Cautious, Deliberate, Long Term View
Is Core to Cyclical Mining Business
• You can lose a fortune being optimistic about
the near term future – some have already
• As a legendary analyst said “Be careful
about looking to mountain tops as paths
through valley floors can be treacherous”
• Behre Dolbear focuses on geo-technical,
operating, business & financial issues that
impact exploration, development, operations
• We do not forecast metals prices

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When To Call Independent Experts
• It is best to get Qualified expert advice early on
whether you are an owner, investor, etc.
• All too often experts are called when:
The company is out of money
Lenders are out of patience
Despair has set in
• Caveat Emptor – Buyer Beware
• Profitable projects are few

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The Business Goal Is To Realize Value:
How? When?

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Finding A Gold Mine Is Costly and Risky
It All Starts With Exploration

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Exploration Is Core to Mining
What To Look For
Mining companies and management feel obliged
to find and develop new competitive, low cost
resources, i.e., their Life Blood – to replace
existing reserves – that are diminishing assets –
and to Stay Competitive
MANAGEMENT & INVESTORS BEWARE!
Once a Fido = Dog, Always a Phydeaux
= A Higher Class Dog is Still A Dog!

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Why Trained, Qualified Eyes Are Needed
• Best properties are low cost, in stable jurisdictions
& likely expansions/extensions of existing mines
• Top rate management always essential
• Understanding terms and markets critical
• „Resources‟ are concentrations or occurrences of
minerals in such form and quantity and of such
grade or quality that they have reasonable
prospects for economic extraction
• Terms, definitions, methods used to evaluate a
property can vary by user & jurisdiction BEWARE

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In the Best Case: Accepted Resource-Reserve
Classification Systems are Used
Australia JORC Code
Canada CIM 2000 / NI 43-101
Europe PERC
South Africa SAMREC Code
United States SME / SEC Industry Guide 7
Russia A, B, C, D, E
China Traditional and New (1999)

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In the Worst Case: Beware of Fraud
• If it sounds too good, it likely is
• Look for misleading statements
• Know who you are dealing with, etc.
• Evaluate circumstances relative to history
• There is no good substitute for an Independent,
Qualified Expert review – too many variables
and too long a period of time are involved
• Being diligent using Rules of Thumb, Common
Sense, etc. are not good enough

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Economic Worthiness of a Property
Is Impacted By Many, Many Variables
Study these and many other items with discerning, trained eye:
• Property Information and Stable Regulatory Environment
• Geology and Resources
• Mining
• Mineral Processing and Metallurgy
• Infrastructure
• Products, Markets and Sales
• Environmental and Permitting
• Financial Issues
• Development Costs and Schedule
• Political and Social Considerations
• Market
• Project Economics – Opex and Capex

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From Discovery To Start Up = ~17 Years

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Three Levels of Engineering Studies
Used to Define Economic Worthiness
Conceptual Study/Scoping Study
Pre-feasibility Study
Feasibility Study

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Engineering Studies – Scoping Study
• aka Conceptual Study, Preliminary Economic Analysis
• First engineering study to compile all elements of a
project into one evaluation and apply economic tests
• Its accuracy is based on first
principles, knowledge, and experience and is
generally +50% / -25%
• This is the least expensive engineering study and is
usually completed in 90 days or less

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Engineering Studies – Pre Feasibility Study
• aka PFS or Pre-Feasibility Study
• Accurate to +25% / -15%
• May take 6 to 18 months to complete
• Engineering evaluation applied to key elements, such as
• The caliber of the resource estimate
• The mine design
• The process design
• Mineralogical analysis
• Metallurgical testing
• Soil and rock engineering tests
• Smelting/refining and marketing
• Environmental work – the EIA is completed during the PFS
• Cash flow analysis, sensitivity analyses, and economic tests

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Engineering Studies – Feasibility Study
• Feasibility Study or Definitive Study
• The document upon which mine is approved by the
Board of the mining company developing the mine
• If financing is required, this is the document evaluated
by financial institutions in their decision-making process
• The Feasibility Study is also the document to which the
completed and commissioned mine plan is compared to
determine its commercial status

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Definition – Feasibility Study
“A comprehensive study of a mineral deposit in which
all geological, engineering, legal, operating,
economic, social, environmental and other relevant
factors are considered in sufficient detail that it
could reasonably serve as the basis for a final
decision by a financial institution to finance the
development of the deposit for mineral production.”
- Canadian National Instrument 43-101

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© 2011 Behre Dolbear Group Inc. All Rights Reserved
Major Risk Categories To Look For
• Project
 As defined by engineering studies (or lack thereof)
• Company
 Its experience at building and operating mines in the
same commodity
• Country
 Reference Behre Dolbear‟s Country Risk Survey
• Financial Institution
 Experience in mining, the region, the country, and the
commodity in question

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Ten Types of Project Risk:
Some Issues to Look For
• Geological
• Mining
• Metallurgical/processing
• Environmental and social issues
• Human resource issues
• Market
• Operating and capital costs
• Company
• Country
• Financial Institution

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1. Geological
• Geological Risk
Reserves
Reserves
Reserves

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2. Mining
• Mining Risks
Surface versus underground
Drilling/blasting
Rock hardness
Dilution
Mine plan
Cut-off grade

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3. Metallurgical Processing
• Metallurgical/Processing Risk
Recovery method
Adequacy of testing
Representativeness of samples
Contractor/mill constructor

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Deeper Dive: Issues To Examine
• How much? What is head grade %
• What is the valuable mineral?
• What is the particle size of the mineral relative
to all of the other minerals in the ore?
• What are the relative specific gravities of the
valuable minerals and gangue?
• What is the overall competence or hardness of
the rock containing the ore?
• Magnetism, radioactivity, electrostatic response
• Color, reflectivity and UV response, chemistry

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Where Is the Metal?
How Hard Will it be to Separate?
po, pyrrhotite; py, pyrite; cpy, chalcopyrite)
Au – Gold; BI – Bismuth

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Steps to Process Minerals
• Size Reduction: crushing and grinding
• Sizing: screening
• Classification: by gravity and size
• Separation or Concentration: use any one or a
combination of mineral processing steps
available to produce a concentrate
• Dewatering of Tailings or Concentrates: via
settling, filtration, and drying, for example

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Typical Gold Processing Circuit

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Mills Are Large and Costly

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5. Human Resources
• Human Resource Issues
Management
Organization
Union contracts
Pension liabilities
Social issues/local peoples
MIS/IT systems

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6. Market
• Market Risks
Who will buy product/marketability
Smelter availability
How many smelters?
Contract (Good for both parties)
Hedging/forward sales

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7. Operating & Capital Costs
• Operating and Capital Costs
Operating Costs
− Dramatic recent increases due to higher fuel
costs, higher wages, higher supply costs, and
delays in deliveries of supplies
Capital Costs
− Increases in steel and equipment costs have
affected all proposed operations and expansions
of existing operations
− “Blowouts” are now frequent

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8. Company Risk
• Financial strength
• Mining experience
• Management experience

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9. Country Risk
• Political stability
• Tax regime
• Attitude toward mining
• Nationalization/privatization history
• Foreign exchange controls/currency stability

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10. Financial Institution
• Experience in country
• Presence in country
• Experience in industry
• Financing capability

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Four Issues Impacting
Project Success Today
• Social Issues/Social License to Operate
• Costs Control
• Higher Government Take/Resource Nationalism
• Access to Capital

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1. Social Issues/Social License to Operate
• Social, Economic, Regulatory issues are a
leading cause of project delay & cost increases
• Striving to be compliant with regulations and
NGO agitation, etc. are contributing to higher
project costs and delays
• Gaining confidence for Social License to
operate is essential

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2. Costs Control Needed
• Capex rising through cycle
• Capex lags rise in metal prices
• Number of blow ups increasing
• Long investment horizons
• Project development
• Reserve expansion
Per Unit of Annual Production (US$)
Gold $1,250 to $2,500 per oz of annual production
Copper $3.50 to $4.50 per lb of annual production
Capital Costs

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Building Mines – Capital Costs
• Capital costs are primarily dependent on
 Location, political situation, skilled labor availability
 Depth of ore zone and mining horizons
 Shaft or adit/ramp access
 Plant size
− Shaft size and hoisting capacity
− Equipment fleet size and material handling capacity
− Processing plant capacity to match mining rate
 Mining method
− Level of mechanization and automation
− Productivity per man shift

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Different Geology; Different Economics
• Of the world‟s gold production the bulk is from
sulphide ore rather than oxide ore
• The project, operating economics are different
• Representative indicative measures:
Sulphide Ore: Capex low grade $300 to
$700+ million; minimum 2 to 5m oz
Oxide Ore: Capex is scalable with Opex =1/5
of Sulphide; minimum scale can be small

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What Can Go Wrong: Issues To Look For
Mine Operating Cost Estimation
• Fuel and electricity costs under estimated
• VAT/sales tax, not included and import duties neglected
• Improper cycle times & haulage distances used
• Mining sequence and methods
• Ground control under estimated
• Inadequate pre-stripping
• Poor haul road design
• Pit slopes
• Dilution
• Poor waste dump design
• Etc.

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Recent Examples of Capital Costs Rising
Above Plan (US$ Billions)
Project Original Current
Pueblo Viejo 2.5 3.5
Galore Creek 2 5+
Cerro Casale 2 6
Pascua Lama 3 8+

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3. Increased Government Take
• Changing measures and Government „takes‟ at
local, state, and federal levels are today‟s reality
• A global concern – Raises Project Uncertainty
• In normal mining cycles, a project will fail if
Government take exceeds 50%
• Mining companies take all the risk

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4. Access to Capital
• Currently, equity and debt difficult to obtain
• New sources of funding need to be found
• Private Equity, State Owned Enterprises, etc.
may play a larger role

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Recent Capital Markets Trends
• Metals markets in 2012 & 1H13 are turbulent - at best
• A long term perspective is needed in mining business
• Banks, investors and operators are now risk adverse
• Management, stakeholders, employees, partners &
customers need to be realistic about options
• This uncertainty may continue well into 2014
• Alternative and strategic investors, private equity, SWFs
and SOEs may opportunistically step in

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More Consolidation in Mining is Likely
• Valuations are less expensive than greenfield investment
• Consolidation to form Super and Larger Majors is likely
• SOEs, SWFs e.g. Japan, Korea, India likely to continue to
acquire strategic metals and energy fuel resources, etc.
• Strategic M&A may buoy mining assets and share prices

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Of the Top Ten Commodities by Global
Projects in 2011: Gold Was #1
• Investors, lenders, & speculators were attracted to precious metals
• What will 2013/4 look like?
Source: Intierra

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In 2011 China M&A Focused on Gold
Source: Ernst and Young

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In 2012 Global Gold M&A Was High Again
21.4
17.9
14.2
13.4
7.3
5.3
4.0 3.9 3.6
2.3
10.6
0
5
10
15
20
25
$Billions
2012 M&A Activity by Target Commodity
Source: Ernst and Young

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Recent China Acquisition Trend By Region –
USA & Canada = Small Share
By Value 1st Half 2012

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Prepare for the Best and Worst –
Check and Double Check
• Mining has a favorable long term outlook
• Have skilled, business savvy managers
• Always best to be in first cost quartile
• Understand and prepare for cycles
• Be aware of jurisdictional risks
• Always do due diligence
• Consider all unknowns
THANK YOU

BEHRE DOLBEAR
The Behre Dolbear Group
• Behre Dolbear has 12 offices in 8 countries and completed 210+
jobs in 55+ countries in each of the last 5 years using our global
network of 125+ professionals in all major mining markets
• We perform studies and advise a wide range of entities in the
mining, banking, investment, financial, legal and accounting
sectors, and government agencies around the world
• Our evaluations span technical, operating, financial issues and
valuations of base, precious and ferrous
metals, coal, uranium, fertilizer & industrial
minerals, gemstones, construction materials
Tim Alch
V.P. & Senior Minerals Business Analyst
Behre Dolbear & Company (USA), Inc.
100 Park Avenue, New York City 10017
+1.845.480.1434 Tim.Alch@dolbear.com

BEHRE DOLBEAR
The Behre Dolbear Group

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Appendix
Characteristics of 3 levels of engineering studies –
Not exhaustive, rather indicative checklists that
require trained, qualified experts‟ review:
Conceptual/Scoping Study
Pre-feasibility Study
Feasibility Study

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Characteristics of Scoping, Pre-Feasibility,
and Feasibility Studies – A1
Potential Areas of Investigation
for Proposed Mining Projects
PROPERTY INFORMATION
Location, topography and climate
Land ownership and royalties
Property history
Current status
GEOLOGY AND RESOURCES
Geological description
Mineralogy
Drilling, sampling and assaying
Evaluation techniques
Mineral resource estimate
MINING
Ore reserve estimate
Mining method and plans
Mining equipment
Material handing
Material handling equipment
Historical and forecast production
Consumables
Mining capital estimates
Mining operating cost estimates
PROCESSING
Ore sampling and testwork
Processing method
Other required processes
Process equipment
Historical and forecast production
Consumables
Processing capital estimates
Processing operating cost estimates
INFRASTRUCTURE
Industrial infrastructure facilities
Social infrastructure facilities
Utilities, power, water
Infrastructure capital estimates
Infrastructure operating cost estimates
MANAGEMENT AND LABOR
 Management organization requirements
 Labor requirements
PRODUCTS, MARKETS AND SALES
 Products
 Markets
 Prices
 Sales
ENVIRONMENTAL AND PERMITTING
 Permit list
 Environmental impact
 Compliance costs
 Compliance cost timing
 Reclamation expenses
FINANCIAL ISSUES
 Taxes
 Royalties
 Fees
 Licenses
DEVELOPMENT COSTS AND SCHEDULE
 Development cost estimate
 Development schedule
 Development methodology
POLITICAL & SOCIAL CONSIDERATIONS
 Economic benefits and costs
 Government considerations
 Other issues
PROJECT ECONOMICS
 Economic parameters
 Discount rate determination
 Cash flows
 Investor returns
 Debt analysis
 Sensitivities

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(continued)
CATEGORY
CONCEPTUAL
STUDY/SCOPING STUDY
PRE-FEASIBILITY STUDY FEASIBILITY STUDY
INTRODUCTION
Location, Topography, and Climate
Site location map
Ownership and Royalties
Claims list
Claims map
Current Status and History
Historical chronology
Information on past production, if any
•Yes
•No
No
No
No
•Yes
•No
Yes
No
No
•Yes
•Yes
Yes
Yes
Yes
GEOLOGY AND RESOURCES
Geological Description
Geological map
Geological cross-sections
Drilling, Sampling, and Assaying
Parameters
Drill hole location map
Sampling/assaying flow diagram and assessment
Assay check assessment and graph
Mineral Resource Estimate
Resource methodology determination and approach
Geologic model limits
Lithology/tonnage factors/code
Cumulative frequency of samples verses grade
Variograms
Resource Estimate
Yes
No
Yes
Yes
No
No
Yes
Yes
No
No
No
Industry Standards (NI 43-
101, JORC, etc.)
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
101, JORC, etc.)
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
101, JORC, etc.)

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(continued)
CATEGORY
CONCEPTUAL
STUDY/SCOPING STUDY
PRE-FEASIBILITY
STUDY
FEASIBILITY STUDY
MINING
Ore Reserve Estimate
Reserve and resource calculation parameters
Cutoff grade equations
Reserve and resource estimate
Mining Method and Plans
Mining parameters
Hydrology/geotechnical parameters
Mining equipment list
Consumables list
Material handling systems
Material handling equipment
Personnel list
Surface mining
Final pit and dump outlines
Incremental pit and dump outlines
Underground mining
General mine development
Mining approach (stoping, cut and fill, etc.)
Production Schedule
Historical production, if any
Annual ore and waste tonnage and grade
Mining Capital and Operating Cost Estimates
Mining operating cost estimates
Mining capital cost estimates
Assumed Values
No
Industry Standards
Yes, minimal engineering basis
No
No
No
No
No
No
No
Yes, simple outline
No
Yes, general outline
Yes, general approach
Yes
Yes, division of total
Yes, factored 45%
Yes, factored 45%
Test-Based Values
Yes
Industry Standards
Yes, some geotechnical data
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes, 30%
Yes, from engineering
manuals 30%
Test-Based Values
Yes
Industry Standards
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes, 15%
Yes, from vendor quotes and
take-offs 15%

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(continued)
CATEGORY
CONCEPTUAL
STUDY/SCOPING STUDY
PROCESSING
Ore Sampling and Test Work
Test work data
Processing Methods and Plans
Processing methods
Processing parameters
Equipment list
Consumables list
Personnel list
Material balance
Flow diagram
Site plan
General arrangement drawings
Production Schedule
Historical production, if any
Annual production tonnage and grade
Off-site Processing Cost Estimates
Concentration charges
Smelting and refining charges
Other charges
Material handling and transport
Insurance and sales charges
Processing Capital and Operating Cost Estimates
Processing operating cost estimates
Processing capital cost estimates
No, assumed values
Yes, general approach
Yes, minimal engineering
No
No
No
No
No
Yes, simple block diagram
No
No
Yes
Yes, division of total
No
No
No
No
Yes, factored 45%
Yes, factored 45%
No, preliminary data
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes, preliminary estimate
No
Yes, 30%
manuals 30%
No, preliminary data
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes, quote
Yes, quote
Yes, quote
Yes, quote
Yes, quote
Yes, 15%
Yes, from vendor quotes and
take-offs 15%

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(continued)
CATEGORY
CONCEPTUAL
STUDY/SCOPING STUDY
INFRASTRUCTURE
Industrial Infrastructure Facilities
Facilities list
Power and water parameters
Full site plan
Social Infrastructure Facilities
Facilities list
Housing
Schools
Hospitals
Other
Infrastructure Capital and Operating Cost Estimates
Consumables list
Personnel list
Infrastructure operating cost estimates
Infrastructure capital cost estimates
Yes, with minimum detail
Yes, preliminary
No
Yes, with minimum detail
No
No
No
No
No
No
Yes, factored 45%
Yes, factored 45%
Yes
Yes
Yes
Yes
Yes, preliminary
Yes, preliminary
Yes, preliminary
Yes, preliminary
Yes
Yes
Yes, 30%
manuals 30%
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes, 15%
Yes, from vendor quotes &
take-offs 15%
MANAGEMENT, LABOR & ADMINISTRATION
Personnel
Personnel lists
Training requirements
Personnel Capital & Operating Cost Estimates
Consumables list
Personnel operating cost estimates
Personnel capital cost
No
No
No
Yes, factored 45%
Yes, factored 45%
Yes
Yes
No
Yes, 30%
Yes, 30%
Yes
Yes
•Yes
Yes, 15%
Yes, 15%

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(continued)
CATEGORY
CONCEPTUAL
STUDY/SCOPING STUDY
MARKETS, PRODUCTS AND SALES
Markets, Products and Sales
Products
Volume
Prices
Sales organization
Sales Related Capital and Operating Cost Estimates
Personnel list
Consumables list
Sales related operating cost estimates
Sales related capital cost estimates
Yes, preliminary
Yes, preliminary
Yes, preliminary
No
No
No
Yes, factored 45%
Yes, factored 45%
Yes
Yes
Yes
Yes, preliminary
Yes
No
Yes, 30%
Yes, 30%
Yes
Yes
Yes
Yes, preliminary
Yes
No
Yes, 15%
•Yes, 15%
ENVIRONMENTAL AND PERMITTING
Environmental
Permit list
Environmental Impacts
Environmental Compliance Cost Estimates
Personnel list
Environmental related operating cost estimates
Environmental related capital cost estimates
No
Yes, preliminary
No
Yes, factored 45%
Yes, factored 45%
Yes
Yes
Yes
Yes, 30%
Yes, 30%
Yes
Yes
Yes
Yes, 15%
Yes, 15%

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(continued)
CATEGORY
CONCEPTUAL
STUDY/SCOPING STUDY
DEVELOPMENT SCHEDULE AND COSTS
Development Schedule
Development methodology
Development schedule
Development Costs
Personnel list
Development related operating cost estimates
Development related capital cost estimates
•Yes, preliminary
Yes, preliminary
No
No
No
•Yes
Yes
Yes
Yes, 30%
Yes, 30%
•Yes
Yes
Yes
Yes, 15%
Yes, from vendor quotes &
take-offs 15%
PROJECT ECONOMICS
Financial Issues
Taxes
Royalties
Fees
Licenses
Economic Issues
Economic parameters
Discount rate determination
Cash flows
Investor returns
Debt analysis
1.Sensitivities
Yes, preliminary
Yes, preliminary
Yes, preliminary
Yes, preliminary
Yes, preliminary
Yes, preliminary
Yes, preliminary
Yes, preliminary
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes, preliminary
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes

BEHRE DOLBEAR
(continued)
CATEGORY
CONCEPTUAL
STUDY/SCOPING STUDY
SUMMARY AND RECOMMENDATIONS
Operational Parameters
Title and ownership
Geology
Ore reserves
Mining and processing rates
Development period and mine life
Metal/mineral recoveries
Sales
Operating cost estimates
Capital cost estimates
Financial Parameters
Cash Flows
NPV, IRR, and ROI
Mostly assumed and factored
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Some engineering basis
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Some engineering basis
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes

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