By A C Edwards; Australasian Institute of Mining and Metallurgy
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Extra info for Mineral resource and ore reserve estimation : the AusIMM guide to good practice
Contingency RESOURCES AND RESERVES There are many approaches to the inclusion of a contingency. The contingency may be a valid estimate of costs that will arise subsequent to the study or it may simply be a hedge against improper or incomplete estimates. Whether or not the contingency is a simple percentage or a detailed estimate, it must nevertheless be defendable and explainable. Resource estimate This should confirm the security of tenure in the project area including the tenement position, land ownership, compensation for surface rights, etc.
If management does not fully understand and have confidence in the estimate, then the project has a very shaky foundation. Journel, A G and Huijbregts, C J, 1978. Mining Geostatistics, 600 pp (Academic Press: London). Krige, D G, 1997. Block Kriging and the Fallacy of Endeavouring to Reduce or Eliminate Smoothing, Proceedings of the Regional APCOM, Moscow. Lane, K F, 1988. The Economic Definition of Ore, 149 pp (Mining Journal Books: London). Parker, H, 1998. Personal communication. Pitard, F F, 1993.
How will contract mining costs and equipment leasing costs affect cut-off grades? Will these be treated as operating costs or capital costs? Surface/underground interface By the time the feasibility study is launched it should be obvious whether the orebody will be mined by surface or underground methods. However, it is not uncommon for mineral structures to start near surface and continue to depth, raising the possibility that both surface and underground mining methods will ultimately be required.