Reserve Modelling – Feasibility Study of Mining Projects & Economic and Risk Evaluation of Mining Projects
Block courses at the Institute of Applied Geosciences, Karlsruhe Institute of Technology (equivalent to 5 ECTS)
These courses are sponsored by the German Geological Society. Participants who are members of the DGGV or become one during this course can apply for a subsidy from the DGGV upon presentation of the certificate of participation.
Reserve Modelling – Feasibility Study of Mining Projects
26.02.24 – 27.02.24
Dr. Klaus Steinmüller: Economic Geologist – Mineral Economist (retired). With BGR, he developed a toolkit for the economic evaluation of mineral resource projects and delivered courses on it in several Mining Authorities in Africa and Asia.
Scope: The purpose of this course is to provide students with a series of materials, which facilitates the assessment of the economics of a mineral resource project in an early development stage.
Content: The course consists of the following three modules:
Part 1: From Exploration to a Mine
- Project phases after the discovery of a mineral resource project:
- Modifying factors which determine the development of a mine
- Necessary steps and studies to verify, whether the projects may be developed to a viable mine
- Movie on the development phases and life of a mine
Part 2: Mineral Resources and Mineral Reserves
- Definition and distinction between mineral resources und mineral reserves
- Mineral resources und mineral reserves related to the development stages of a mineral resource project
- Exercise on the cut-off grade to establish mineral reserves
- Exercise on the determination of the ore grade
- Exercise on the determination of mineral resources
Part 3: Evaluation of the Economic Viability of Mineral Resource Projects
- Parameter and criteria for the economic evaluation of a mineral resource project: Ore value, Life of Mine (LOM), operating costs (Opex), investment amount (Capex), payback period, operation margin, Net Present Value (NPV), Internal Rate of Return (IRR)
- Exercises on the estimation of LOM, Opex, Capex, Payback Period, NPV and IRR
- Exercise on the economic estimation of the viability of mining and milling a mineral resource – Operating Margin
- Exercise on the economic estimation of the viability of the investment for building and operating a mine and a processing plant – NPV, Cash Flow
- Peer comparison of several mineral resource projects
The training exercises are based on mineral deposit models and real-world mineral resource projects.
Pre-requisites: Knowledge of ore deposit geology is expected. Some knowledge of mineral exploration and development of mining projects is helpful.
Datum26. Februar 2024 - 27. Februar 2024