Geology Learning

The evaluation of mineral exploration properties in general fall into two broad categories, whose mineral resources are defined and others. The valuation technique used is different in each case and in all cases, depending on level of knowledge about the continuity of quality and geology. An evaluation is therefore robust and quantitative increase of data quality and quantity.

should consider There are many reasons for the exploration and mining companies to evaluate their projects. Perhaps for mergers, acquisitions, sales or simply the design of an internal classification. are in periods of “depression” of exploration, there are good opportunities for the exploration companies will be funded, the portfolio of exploration to build at lower costs.

During this process it is important that an independent view of what is fair and reasonable value for assessing a project and to obtain its maximum potential value. Just in time to cut spending on exploration, it is often useful for companies to review their existing projects and produce a comparative assessment of these. This process contributes to major decisions on projects should be retained, eliminated, “moth balled” etc and the projects that can be done probably the best return for the exploration expenditure.

With many years experience in the valuation of assets, exploration SRK Exploration Services Ltd (SRKES) has a robust technology for this development involves several steps. First, a technical review of each project is completed. This includes a review of the geology of the project and the target model of exploration activities and historical and projected.

Once this was done, we try to create a set of minimum values, maximum and technology into a variety of data and interpretation techniques. During this process many of the following into account;

o Costs for the study of history – In this technique, all the money will be spent adds up to a rental space, get a cost of exploration to date. These costs can be little success or, in some cases had been unwise, it is necessary to apply a discount factor for the current market value will reflect perceived geological data.

o status of the project for evaluation purposes SRKES consider the progress of the exploration property five levels, core, projects for the intermediate and advanced, definition of resource projects and projects include full feasibility study. The chances for a successful achievement of the maximum possible value more than the property is progressing with positive results.

o The appraisal company fit the setting “society” and the relative ability to carry out exploration in a country attempts Environment / factor for the attractiveness of a particular project on a particular company and thus value.

O-risk country risk country “where the risks are quantified in the conduct of exploration in a particular country.

o The maximum Philosophically, the maximum peak “potential” value of a property to exploration-related mineralization intended target, but it is essential to create a realistic view of the geological potential. SRKES approach here, the maximum possible value of the property on the basis of currently available geological data and our understanding of the geological model is to establish.

o The minimum value is, under normal circumstances, to establish minimum requirements for an exploration property values usually do the easiest part of a review. When a property is purchased, the purchase price is the minimum value for the goods concerned by the buyer. historical exploration expenditure is also used to support this process.

All the above assumed that the person is ready, and enlightened body. Each transaction reflects the needs of the buyer and the seller. This unique needs and do not reflect the industry as a whole. On the basis of knowledge and information about the status of mining properties in question, several valuation methods combined to provide a diffusion of technical standards.