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By J D. van Wees

Preliminary project evaluation is relevant to the evaluation process of the decision makers (or executives) prior to making the critical business choices. Important to the assessment is an integrated sensitivity, scenario and risk analysis at every stage of a mining project. This should include the evaluation of different options taking into account uncertainties. Construction of interactive financial computer models where each element is functionally integrated into a fully integrated life-cycle allows rapid and automatic study of the sensitivity of each element through changes in the value of an input. The scenario analysis is the effect of changing more than one input at a time, organised through scenarios in a decision tree. Risk analysis is an integrated analysis of the effect of all uncertainties of the parameters, using Monte Carlo simulation. Key to the asset decisions process is that the decision maker is provided with the essential integrated decision information. We have clustered this information into several scenario groups. Within each group, two levels of uncertain information are distinguished: discrete scenarios critical for the decisions; and remaining uncertainty within the scenario (risk analysis) which can be modelled by continuous probability density functions (pdfÆs). For an asset, the relevant scenarios in each group and the associated continuous pdfÆs need to be defined. When the scenario groups and associated pdfÆs have been defined for the asset, the decision process can be started by structuring the different scenario groups in a Scenario Tree. A Scenario Tree contains decision and end nodes. Each end node corresponds to a completely defined mine project or asset model. The calculations for each end node result in a set of stochastic realisations for the reserves, production forecast, cash flow, and profitability indicators (NPV, IRR, DPR). Thus, a deterministic and fully probabilistic multi-commodity analysis tool is provided to investigate the sensitivity and robustness of decisions.

Jan 1, 2003

By Dr. O’Neil Thomas J., Donald W. Gentry

"We can easily represent things as we wish them to be..” -Aesop INTRODUCTION The first eight chapters of this book have primarily addressed the concepts and fundamentals associated with project valuation, particularly as they apply to mining-related projects. Specific emphasis was placed on the engineering and economic parameters and estimates necessary for quantifying line items in pro forma income statements and the subsequent calculation of net annual cash flows. Given these estimates of relative benefits, costs, and annual cash flows for a project, it then becomes necessary to convert these estimates into measures of relative desirability or attractiveness. The criteria and techniques typically utilized to determine project acceptability or desirability are, then, the topics of discussion in this chapter. Before proceeding it may be advantageous to put the problem of project evaluation into proper perspective by reiterating some of the fundamental concepts developed in Chapter 1. The basic premise set forth in this book is that the objective of the firm should be to maximize its value to its owners (stockholders' wealth). This value or wealth is represented by the market price of the firm's common stock; consequently, the primary objective of the firm can be restated as one of maximizing the value (price) of the firm's common stock in the marketplace over the long term. This price, in effect, is an indicator or index of the market's perception of the company's progress and a reflection of the investment, financing, and dividend decisions made by corporate management. These three major decisions are inter- related and jointly impact the market price of the firm's stock. Therefore, if the objective of maximizing the value of the firm to its stockholders is to be achieved, an optimal combination of the three decisions will be necessary. It is important to emphasize that maximizing stockholder wealth is not the same as profit maximization or even the maximization of earnings per share. Corporate managers making decisions based on the objectives of maximizing profits and/or earnings per share must recognize that these objectives do not consider: (I) the timing or duration of expected returns, (2) the business and financial risks of the promised earnings, or (3) the dividend policy of the firm. Obviously all of these factors are of concern to the company's stockholders and will have an effect on the market value or price of the firm's common stock. Maximizing market price per share, or wealth maximization, is therefore the appropriate corporate objective and

Jan 1, 1984

The general principles of technical due diligence best practice that are involved in assessing a mineral property in the early stages of its development are described and a bibliography of relevant papers is attached. The issues specific to the evaluation of gold deposits are highlighted. The Australasian Institute of Mining and Metallurgy's (The AusIMM) initiatives in this area, dealing with the proper public reporting of Reserve/Resource information (JORC Code) and property assessment/valuation (VALMIN Code), will be used as a framework against which the illegal tampering with drilling samples to artificially boost their gold content (salting) from the Busang gold deposit (Kalimantan, Indonesia), owned by Bre-X Minerals Limited (Calgary, Canada), will be reviewed. While the Busang saga was based upon fraud, through salting the samples, the general lessons to learn from such a scam are worth documenting. In Australia, most of those working in the mineral industry belong to long established professional institutes and consultant associations (eg The AusIMM or Mineral Industry Consultants Association [MICA]) that require their members to work within their technical limits and to comply with best practice guidelines, or risk being judged and found wanting by their peers in the context of strong Ethics Codes. There is also a strong interface between such representative professional bodies and the corporate and financial market regulators (ASC/ASX), which closes the monitoring loop. Canada has only now seen the wisdom of having this type of early warning system in place. Fraud and deliberate deception will be always possible, but deception on the enormous scale that occurred at Busang is most unlikely with proper surveillance systems in place and the use of accredited technical professionals. There should have been more hard data available about so big and rich a deposit owned by a C$6Bn company.

Jan 1, 1997

By R Knight

"In project evaluation there are two matters of keen interest to non-executive directors: the process by which an investment recommendation is reached, as well as the investment itself, as presented. It is sometimes mistakenly believed that Boards of directors are interested only in the result. That is not so. The process by which project evaluations are derived and socialised with the Board is as important as the result, sometimes more so.Setting aside the gloomy predictions of the doomsayers and looking through short-term volatility in supply and demand, the overall availability of mineral resources more often than not exceeds demand. There are in reality more development projects in prospect at any one time than are needed to meet the market. Only the fittest will prosper, although some others may survive.Optimism springs eternal in the mining industry and every project promoter, executive or entrepreneur has a convincing project development case. Some will create value for shareholders, but the historical evidence suggests that many will fail to meet the expectations set in their evaluation.Boards of directors make the final decision to invest, or not, in a new mine. Knowledge is power, and on that basis the balance of power favours management. Management has the facts (or in some cases, what passes for fact) and the passion to invest. The non-executives have the power of approval – yes or no – but before making a decision directors must demonstrate due diligence, the essential precursor to project approval.Management has a vital part to play in facilitating that due diligence process and in encouraging the independent thought processes of the Board. A closed approach by management fosters a negative, risk-averse attitude on the part of the Board. One that encourages an understanding of the rigour of the project evaluation process and the robustness of the result will allow directors to understand better the implications of their decision.CITATION:Knight, R, 2016. Project evaluation – a non-executive director’s perspective, in Proceedings Project Evaluation 2016, pp 11–19 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By D. M. Slavich

"In today's operating and investment climate, project evaluation is both more important and more difficult. It is more important because economic and financial analyses of a proposed project provide a basis for judgment of a project's commercial viability by equity participants, lenders and, in some cases, other participants such as off takers and governments. It is more difficult because these analyses must, of necessity, be based on estimates, projections and evaluations which must be made in a period remarkable for its economic and political uncertainty.Project evaluation starts with the analysis of the engineering, commercial and financial information available. Beginning with the preliminary design and capital cost estimates, alternative financing plans can be developed outlining possible sources of funds, terms and security arrangements. Pro-forma financial statements can also be developed, including sources and uses of funds, cash flow schedules, income statements and balance sheets. With these results, various profitability measures can be determined.Subsequently, in an effort to deal with uncertainty, these results can be tested by measuring the impact on project viability and profitability of changes in project and external variables such as product process, mining and processing rates, operating and financing costs, currency exchange rates and other factors.The results are a number of financial projections reflecting different assumptions for key project parameters. The projections can be used to structure the project to achieve the maximum financial performance. Projects, the financial viability and profitability of which can be demonstrated under varying market conditions, will be the most competitive in capital markets."

Jan 1, 1982

By John A. Wells, Leticia Conca, Kenneth G. Thomas

"Since about 2002 there has been significant capital cost escalation, not inflation, in the mining industry causing turmoil for successful project completion. Project capital costs have more than doubled and some cases tripled in this time period. This has rendered many projects to be economically challenged and in some cases not viable. In addition higher than expected operating costs have further adversely affected project metrics such as NPV and IRR. Capital cost increases for projects have been widely reported globally. This current paper reviews three items. Firstly, why such capital increases and the various components that make up capital estimates. Secondly, it looks at reasons why preliminary estimates, for example at scoping and pre-feasibility level, have been lower than the ultimate constructed costs. Such increases and differences in estimates have caused major problems for mine builders and have led to a general nervousness on the part of those providing project finance. Thirdly, what discipline is needed in project execution in an attempt to mitigate such capital increases. The paper will hopefully give a better understanding of the various issues and factors involved for those in the mining industry.INTRODUCTION The years 2012 and 2013 were a turbulent time for the mining industry. The European economic crisis, politics, metal price volatility and a wave of changes of CEO´s in some of the major mining companies all contributed to a challenging couple of years. Two issues stood out. First, the huge increases reported in the capital costs of projects, where increases of 100% - 300% were not uncommon and in some cases exceeded that during the first decade of the 21st century. Second, company write downs related to takeovers during the boom and the stabilization/correction in commodity prices. These have led to great uncertainty, made it difficult (or impossible) to raise project financing costs, contributed to the changes at CEO level and placed many projects either on hold or cancelled altogether. It is commonplace now to read of companies talking of reduced capital expenditure and making a complete review of their projects and operations to contain costs."

Jan 1, 2014

By J Borthwick, M Yusi, M Douge

Feasibility studies form a vital and significant component of the project delivery cycle. They are at the heart of the valuation process. This paper focuses on variables which can affect a project and how these are assessed as part of the decision-making process through feasibility studies. Test work and site selection needs; the degree of engineering required to meet the study requirements and the quality of owner project information are discussed. Also, local factors including permitting needs, social, environmental and government relations are considered. Engineering and site factors are crucial in the estimating process. The interaction of detailed engineering, engineering assumptions and estimating methodologies are therefore examined. The ownerÆs perspective is considered along with risk analysis, which is fundamental in project feasibility study activities. The impact of this is also discussed.

Jan 1, 2009

By Kyle Wightman

INTRODUCTION CRA Limited is the largest mining group in Australia by value of sales and the second largest company in Australia in terms of share market capitalisation. In the past 25 years, CRA, its predecessors and affiliates have been involved in a number of mining and further processing developments in Australia and elsewhere. Many of these have been financed using project financing techniques. These include Comalco's development of the Weipa bauxite deposits in Northern Queensland in the late 1950's, the Hamersley iron ore developments in the Pilbara region of Western Australia in the mid 1960's, the Queensland Alumina Limited alumina refinery in Gladstone, Queensland, at about the same time, and the Bougainville copper project in 1969/70. In the past three years CRA has again utilised project financing techniques to fund its Tarong steaming coal project in Queensland, the Blair Athol steaming coal project also in that State and CRA's interest in the Argyle diamond project in the Kimberley region of Western Austrlia. PROJECT FINANCE DEFINED Nevitt Definition Nevitt's is the most frequently quoted definition - "A financing of a particular economic unit in which a lender is satisfied to look initially to the cash flows and earnings of the economic unit as the source of funds from which a loan will be repaid and to the assets of the economic unit as collateral for the loan." Risk and Balance Sheet Treatment It is important to focus in more detail on two aspects of project financing, risk and balance sheet treatment. The assessment of the various elements of risk in a project and the sharing of that risk between sponsors and lenders is the most critical feature. At one end of the spectrum is full absorption of risk by the sponsor(s). This can be described as "on risk" or "on credit" or "full recourse" to the sponsor(s) and is effectively a corporate financing. At the other end of the spectrum the lenders absorb the whole risk in a non-recourse financing which is "off risk" or "off credit" for the sponsor. The other aspect is the sponsor's balance sheet treatment. If the balance sheet of the economic unit undertaking the project and the financing need not be consolidated into the balance sheet of the sponsor (because ownership does not exceed 50%) then the financing may be described as off-¬balance sheet. If consolidation is required then the financing is described as on-balance sheet. Most project financings involve some recourse to the sponsor, i.e. they are limited recourse. Very few are non-recourse or off credit to the sponsor. Limited recourse financings may be on-balance sheet although many may also be off-balance sheet insofar as consolidation is concerned. However, sponsor support may very well be a contingent liability to the sponsor and require disclosure by way of note to the balance sheet should consolidation not be required. CORPORATE FINANCE CONTRASTED A financing which is on credit or full recourse to the sponsor, whether it is directly borrowed or guaranteed by that sponsor, is a corporate financing. Lenders will tend to base their credit assessment on a historical assessment of the sponsor's activities and its financial results rather than an assessment of the project or a detailed assessment of the future activities and prospects of the sponsor. PROJECT FINANCE - A BORROWER'S PERCEPTION Although CRA could choose to arrange all finance on a corporate basis (except perhaps for the very largest projects or acquisitions), project financing techniques provide a number of specific advantages which CRA has noted and which should be carefully considered by a project sponsor. Advantages

Jan 1, 1985

I have been asked to speak today on the topic of Project Finance in the Mining Industry. Through this presentation, I hope to give you a broad outline of the concept of project finance. The first half of the presentation covers the principles involved in project finance and the second half moves to aspects more specific to the mining industry. I have worked for 3 years at Rothschild Australia. Rothschild provide finance for projects in the mining industry, world wide. We finance both large and small projects, with facilities varying from $2m to $100m.

Jan 1, 1990

By J F. Penrose

To obtain cost-efficient financing by way of securing an optimal credit rating, the operating and market risks of a single-asset mining project should be accommodated in the financial structure. Weak financing structures can cause projects to fail, as evidenced by the Murrin Murrin and Bulong examples; these can be compared to the investment-grade structure of Straits (Nifty), which managed operational, market, and financing risks well. Most mining projects are capital-intensive, and have heavy dependency on debt financing. A weak financial structure may result in the early failure of an otherwise sound and economically viable project. Appropriate management of technology, construction, and management risks generally will get a project built; of the project failures that occur, most are caused by a liquidity crisis as the project goes through ramp-up (the transition period between completion of construction and full operation). A projectÆs viability can be enhanced through sound hedging practices, while poor hedging can increase the likelihood of financial default.

Jan 1, 2003

By C. Richard Tinsley

INTRODUCTION Project financing has been defined by various authors in this book. It is founded on reliance upon the project's own future cash flows and secondarily on the collateral value of the asset base developed. It is chiefly provided by the banking community who, after an assessment of the risks involved (See Chapter 9) analyse the company's presentation (See Chapter 10) in order to structure a financing package often at a leverage of up to 80% debt. This paper describes the various support and structuring techniques used to delimit and abate the risk components perceived from the banks' experience on project development especially for the period before cash flow is generated (pre completion). ADVANTAGES The advantages of project financing extend beyond the offloading of risks to banks. Among the advantages are the following: 1. Longer loan maturity than conventional, unsecured financing; 2. Loan disbursement and repayment tailored to specific mine; 3. Ability of a joint venture without a "track record" to raise financing; 4. Obtain financing where further direct borrowing (corporate credit) limited by existing indentures; 5. Possibility of arranging finance off-balance sheets; 6. Leverage return on equity; 7. Obtain tax savings with certain project financing structures; and 8. Obtain flexible loan repayment conditions. It can also be said that from the point of view of the company, project financing has certain disadvantages which can be summarised as follows: 1. Perceived higher cost (risk premium) compared with straight corporate credit; 2. More documentation; and 3. Need to negotiate risk-sharing aspects. The main attraction of project financing is the ability to pass certain risks on to the lenders within a flexibly funded transaction. (For a more detailed description of the specific risks see the author's paper at the beginning of Chapter 9. The same risk system is followed here.) The typical project financing has corporate support prior to completion and will usually carefully control the resultant cashflow after completion to ensure the bank does not unnecessarily assume further risks of an equity nature. WITHIN THE COMPANY'S CONTROL Operating Risk This is broken into three interrelated segments for ease of description. Technical Component: This must be specifically addressed if new technology or unproven adaptations are to be used. The banks will have scrutinized the sampling and bulk testing work, perhaps grilling the geological, mineral processing, metallurgical, and mining engineering staff or consultants directly. A number of supports are available such as: TECHNOLOGY GUARANTEE: Either the company itself or the process developer will guarantee that the technology will work for a period of, say, six months to two years after startup. If not, then financial penalties will apply although these are rarely sufficient to repay the loan. Many process developers are weak financially and may have little substance to back such a guarantee.

Jan 1, 1985

By D Macdougall, J Otto

The financing of large mining projects in developing countries is often achieved, at least in part, by limited-recourse financing methods. Financing agreements are affected by the basic accord that is struck between the host government and the sponsors of the project. It is concluded that governments and project sponsors should take into account the requirements of lenders when structuring such mineral development agreements to maximise the potential for attracting project financing. Lenders are likely to be most interested in aspects such as fiscal arrangements, calculation of taxable income and general accounting rules, royalties, transferability of payments/dividends overseas, corporate structure and control, staged development, financing, loan support and state guarantees/approvals, political risk, provisions for default, product marketing, settlement of disputes and environmental issues

Aug 1, 1994

By Wi11iam I. Rau

In the recent past, there have been numerous projections of the capital requirements for additional mine and processing capacities required to meet projected non-Communist World demand for minerals during the next 15 years. A consensus judgment would place this currently at $14 billion per year, with the largest expenditures required for increases in aluminum and copper production. Until the early 1960's, internally-generated funds were used to finance nearly all of the large mining companies' capital requirements. Since that time, however, the enormous rise in capital costs per ton of capacity, accompanied by a relative stagnation in the financial condition of many of the major mining companies, have caused the industry to begin to rely on external sources for financing expansion, most notably, project financing from commercial banks and institutional lenders. Seven years ago, it was estimated that, in the five-year period 1972-1976,75% of the total capital requirements of $10 billion per year would come from internally-generated funds, with the balance to be provided by external sources. l There is little doubt that, in the coming decade, the percentage provided by external sources will increase. There should be little difficulty in attracting the necessary investment within the U.S., particularly in view of the expected continuation of companies in diverse industries seeking mineral investment opportunities. The more serious question lies in the availability of internal and external sources of funds for the expansion of mine and smelting capacity in the developing countries. Recently, R. F. Mikesell projected an average annual investment of $4.7 billion (in 1977 prices) over the 1977-1990 period would be required from foreign sources to expand metal producing capacity in developing countries. Mikesell concluded that external financing of mining projects in the developing world has averaged less than $1 billion per year over the past five years, thereby requiring more than a quadru1ling of this financing over the next decade.

Jan 1, 1978

By William I. Rau

This presentation will examine the role commercial banks will be expected to assume in financing international minerals projects, including a discussion of various financing techniques such as project loans, production loans, and production payments. A discussion of the necessity for completion guarantees, finalized sales contracts, reserve evaluations, management contracts, and marketing undertakings in conjunction with financing availability are also included.

Jan 1, 1981

Offshore petroleum development involves massive capital expenditure and financing demands, with the main participants being large international oil companies and State owned enterprises. Types of project oriented financing include take-or-pay contracts, throughput agreements, and production payment financing. The main project finance credit aspects are revenues, investment budgets and cost over- runs, reservoir, political and other risks and special problems such as weather and corrosion in the North Sea. A variety of documents is required and a mix of equity, export credit and Euro-market financing will typically be included in the financing.

Jan 1, 1983

By B. Morris

This presentation will describe the process by which the Quebrada Blanca (QB) copper project in northern Chile was financed. It will also show how a relatively junior mining company addressed the problems created by its inability to provide its share of the equity funding and the guarantees required by the project lenders. QB is located in the semi-arid Andean highlands of northern Chile, 170 kilometres southeast of the port of Iquique and 30 kilometres west of the border with Bolivia, at an altitude of about 4,300 metres (14,000 feet). Figure 1 depicts the project's location. The QB orebody is a secondarily enriched porphyry copper deposit containing reserves of 85 million metric tons grading 1.3 percent copper. Underlying the enriched zone is a significant primary ore zone containing several hundred million metric tons grading about 0.5 percent copper. In the late seventies and early eighties Falconbridge and its affiliates spent $20-30 million dollars exploring the deposit and conducting feasibility studies. For a variety of reasons they decided not to develop the property which was returned to its owners, Empresa Nacional de Mineria (ENAMI), which is a Chilean state mining corporation. In 1988 ENAMI announced its intention to privatize the property through a public bidding procedure.

Jan 1, 1993

The classic description of Project Finance as "the reliance by lenders on the cashflow of a project, supported by the assets of the project with no recourse to the project sponsor's corporate balance sheet" has, like most other terms in the finance industry, evolved through recent usage. The area now under most scrutiny is the sharing of risks between parties either most able to take them or prepared to accept payment for them. Creativity in, and flexibility of financing structures have enabled project lending to continue under a dramatically different economic outlook. The diminishing competitiveness of the Australian producers in a global market place of uncertain commodity prices has discouraged the advancement of many large scale resource projects. The majority of new project financings has been designed to assist the relatively small company promote and develop its first projects. New trends- are emerging in four areas: sources of capital; borrowing structure; financing instruments (securitisation); and risk underpinning. As project financing becomes more widely used, the range of interested financiers grows. New initiatives contribute to its development and evolution with a view to increase effectiveness to the sponsor of any new venture.

Jan 1, 1987

By Grover R. Castle

INTRODUCTION "Project Financing" or "Project Loans" have become increasingly popular in recent years, and commercial banks are being asked to consider more and more of such financing. However, the analysis of this type of loan is quite different from the analysis of a loan to a financially sound corporation based on the company's balance sheet. For this reason Chemical Bank did a study of project loans in an attempt to be more sophisticated in our approach to them. As part of this study, we examined 29 project financings for which information was available. In this article I shall describe project loans and set forth the guidelines we developed, as an aid to credit officers who might have occasion to analyse this type of financing. DEFINITION OF "PROJECT FINANCING" OR "PROJECT LOAN" The terms "project financing" and "project loan" commonly describe the various methods that banks and institutional lenders use to finance the construction of new projects on a basis whereby payout is anticipated from the revenue stream generated by the project. A project financing often involves a loan to a new entity formed specifically to own the project. The analysis of a project loan proposal is quite different from the analysis of other term-loan proposals since it involves a credit decision based on the review of a projection or forecast rather than of historical earnings and/or it involves the reliance on contractual obligations of third parties. Lenders are asked to assume the added risks associated with project loans because: 1. Project financing may permit a company to obtain additional leverage. It is possible for companies to arrange financing on a project basis that could not be arranged as a direct borrowing. For example, a company may not be permitted to borrow more money directly, due to a limitation in a bond indenture. However, a project financing can sometimes be negotiated on a basis not prohibited by the indenture. 2. Often the sponsors of, or the stockholders in, the project are seeking an off-balance-sheet financing. For example, 11 of the 29 projects in our study were arranged on an off-balance-sheet basis and one showed on the balance sheet as a deferred income item. An off-balance-sheet financing, for the purpose of this article, is a financing which does not show as a direct liability on the balance sheet of the sponsors of or stockholders in a project. 3. Projects are often located in a foreign country. The financing is arranged so that the lenders assume the political risk on the loan because many companies rightly believe that this arrangement affords a degree of insulation from political risk not otherwise obtainable. 4. Many projects are jointly owned by several sponsors. This form of financing lends itself well to a situation where a new entity is formed to own a project and do the borrowing. Project loans can be used to finance a variety of activities including development of iron-ore deposits and associated pelletizing plants; development of coal reserves; construction of pipelines, alumina plants, fertilizer plants and refineries; etc. The specific areas of analysis can be quite different, depending upon the type of project being financed. It is important, therefore, to classify the proposal according to the type of project, and also by the nature of the financing - nonrecourse financing, financing covered by a guarantee of completion and financing supported by an undertaking lasting for the life of the financing. I will discuss each of these types in more detail later, but first, I should like to make some

Jan 1, 1985

By Juan C. Sotomayor Álvarez

The Huantajalla mine is seated on Uchucchacua 's Mixing District that is the fourth producer of Silver in the world. Huantajalla Mine is a new mine that nowadays is being explored and recently it has began to operate. The project for 4-A vein exploitation in Huantajalla Mine using Longhole drillings as a new method of mixing is developed by Planning Department of Uchucchacua Mine in coordination with Geology Department of this mine, started in June 2004. This project is funded by Company of Mines Buenaventura S.A.A In July 2002, Geology Department started the exploration on the area of Huantajalla Mine, discovering the 4-A vein. The reconnaissance and definition of the vein finished June 2003, finding 79,080 Ton of mineral of Silver with a grade of 40.0 Oz Ag/ton and a thickness of 1.85 meters (6 feet ). Using the longhole method on the vein exploitation will replace the cut and fill and shrinkage methods, and it will keep a dilution of 15%.

Oct 1, 2004

By Gregory A. Hahn

Explorationists and engineers rarely speak the same language. Explorationists are not cognizant of the information that engineers require to make the appropriate choices and decisions. Engineers can- not "translate"geo1ogic parlance and data into information relevant to proper decision making. This often creates a physical and intellectual "rift" between engineers and geologists that inhibits a smooth transition to development. A transition team leader who is grounded in both disciplines can best facilitate integration and communications between the explorationists, who understand the intrinsic attributes of a given deposit, and the engineers, who have to design for extraction and beneficiation of an orebody.

Jan 1, 2001