Feasibility Study
A comprehensive engineering study evaluating the technical and economic viability of mining a mineral deposit.
Detailed Definition
A feasibility study is a comprehensive technical and economic analysis that evaluates whether a mineral deposit can be mined profitably. It is required before major investment decisions and for converting resources to reserves.
Study progression
Scoping Study (Conceptual): - Order-of-magnitude assessment - Accuracy: ±35-50% - Uses inferred resources - Identifies project potential
Pre-Feasibility Study (PFS): - Preliminary engineering and economics - Accuracy: ±25-35% - Uses indicated resources - Supports probable reserve declaration
Feasibility Study (FS/DFS): - Detailed engineering and financial analysis - Accuracy: ±10-15% - Uses measured resources primarily - Supports proven reserve declaration
Key components: - Geology and resource estimation - Mining method selection and design - Metallurgical testing and process design - Infrastructure requirements - Environmental and permitting analysis - Capital and operating cost estimates - Financial analysis and sensitivity testing - Risk assessment
Bankable Feasibility Studies (BFS) meet standards required for project financing and investment decisions.
Related Terms
Mineral Resource
A concentration of minerals with reasonable prospects for economic extraction, classified as inferred, indicated, or measured.
Mineral Reserve
The economically mineable portion of a measured or indicated mineral resource, classified as probable or proven.
Ore
Rock or material from which valuable minerals or metals can be profitably extracted.