The objective of a Preliminary Feasibility Study is to formally present an analysis of the predicted technical, economic and financial viability of a project and to estimate costs to a precision of plus or minus thirty per cent.

If the client is satisfied that the preliminary feasibility study provides an optimistic scenario, then more accurate design criteria are established to update the report to a feasibility study with cost estimates developed to an accuracy range of fifteen to twenty five percent.

When the Feasibility Study passes the client's internal corporate project investment criteria, a Definitive Project Study is produced which predicts capital and operating costs to an accuracy range of ten to fifteen per cent.

The final step is the preparation of a Bankable Document which requires the actual facilities and equipment accurately specified, some detailed design completed and cost estimates established from competitive vendor quotations. The project costs established for the Bankable Document are used for Project Management Budget Control and have an accuracy of plus or minus ten percent.

Preliminary Feasibility Study

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• Development of the mine over its proposed life in qualitative and quantitative terms
• Investigation of the required process covering conception, configuration and sizing
• Investigation of the required infrastructure and support facilities
• Investigation into the anticipated interaction with government and environmental protection agencies
• Review and evaluation of data provided by the client
• Procurement of documentation from third parties, eg. relevant government publications and maps
• Preparation of statements on technical aspects of the following project areas for formal review by the client:
  • Mine process plant
  • Infrastructure
  • Support facilities
  • Logistics
  • Environmental impact

• Evaluation and review of available geological and hydrological reports
• Recommendation as to mine development including phasing of development, envisaged ROM grade, capital equipment and manning levels required
• Recommendations for the process plant in the following format:
  • Flow diagram
  • Material and water balances
  • Equipment list (major items) together with budget quotations
  • General arrangement plan and elections of process plant to scale 1:100
• Infrastructure requirements including ancillary buildings, roads, drainage, tailings disposal
• General arrangement drawings of infrastructure layout
• Support facilities, eg. supply of water in various qualities, electricity, accommodation requirements
• Electrical system (single line diagram)
• Logistics of supply materials, equipment and manpower to site which includes an investigation of transport modes
• Identification of strategic decisions required, eg. early ordering of long delivery items, early starts to opening of negotiations for right-of-way dispensation etc.
• Estimate of capital and operating costs including a preliminary discounted cash flow analysis (if requested by the client - all costs to include transport and commissioning costs, fees and all management costs except for client's own costs)
• Preliminary programme for carrying-out the project

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Definitive Study

• Formally receive from the client, comments on the Feasibility Study Report together with directives relative to the manner and preparation of the Definitive Study Report
• Receive from the client requirements for the presentation of financial data
• Review and evaluate all existing data and concepts contained in the Feasibility Study and obtain client approval for any additional data or concept changes that should be incorporated into the new project plan
• Optimise the basic concepts contained in the Feasibility Study, particularly with regard to production level, manpower requirements, equipment selection and sizing, plant layout, facilities and infrastructure
• Finalise the process flow sheets material balances and control philosophy
• Review laboratory facilities
• Evaluate and review mine, process plant and services operations

• Design criteria
• Equipment lists
• Process description
• General arrangements and outline drawings
• Capital and operating cost estimates
• Project schedule
• Specifications
• Recommendation for implementation

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Bankable Document

• Describe site-location climatic conditions, land forms hydrology
• Prepare water management plan in particular consider site release of waters, run-off, extraction permits, plant usage

• Define environmental constraints
• Provide environmental impact assessments and reports
• Describe environmental safe guards

• Provide geological study and delineate extent of ore bodies
• Define extent and type of ore reserves

• Provide detailed mining plan including production rates, grade control, equipment, budgets and schedules

• Describe process, include design, criteria, flowsheets, material balances, process instrumentation and controls, equipment lists and facilities
• Provide general arrangement drawings, architectural and structural elections, mechanical layouts, piping and electrical outlines

• Determine communications, power and water requirements and intended method of supplying the project
• Review accommodation requirements and proposals
• Investigate all transportation requirements including staff transportation during operations
• Define need for rail lines, airstrips, permanent and temporary access roads etc
• Provide tailings treatment philosophy including requirements for dams, liners, overflows reclamation and pipe lines
• Advise on warehousing, maintenance facilities, administration, first aid, security, laboratory facilities and staff amenities

• Report on contractual arrangements for the construction process and provide control documentation
• Provide analysis of construction process, ie. construction packages, procurement, construction schedules, site procedures, QA/QC and contracts management
• Identify long lead and critical path items and provide expediting schedules
• Provide anticipated manning levels
• Define safety and industrial relations policies and dispute handling procedures
• Supply basic specification and contractual documentation

• Prepare operations philosophy
• Provide manning levels for all areas including administrative, mining, maintenance and laboratories
• Indicate requirements for personnel training
• Identify all permits required from statutory authorities

• Prepare capital cost and operating budgets for the overall project to a + 10 % accuracy
• Provide economic evaluations, anticipated cash flows and sales forecasts
• Identify risk areas and levels of confidence

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