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24-MMP-A4 Mine Valuation and Mineral Resource Estimation: December 2013

Nivaar worked solution (AI-drafted; not reviewed by a licensed engineer)

  1. Question 1 Taylor's Rule for Mine Life
  2. Question 2 Effects of Improper Inflation Handling on Mine Valuation
  3. Question 3 Building and Interpreting a Semi-Variogram
  4. Question 4 Financing Methods for a New Mine — Equity, Loan, Contract, Joint Venture, Lease
  5. Question 5 Compositing Diamond-Drill-Hole Assay Data
  6. Question 6 Cost of Capital — Geographic Location and Political Stability
  7. Question 7 Modifying the Net Smelter Return to Value Broken Rock
  8. Question 8 Financial Statements, Capital Costs and Cost of Capital
  9. Question 9 Spherical Variogram — Model Terms, Point Calculation and Anisotropy
  10. Question 10 Power-Law Mine Operating Cost Model — Cost per Day and per Tonne
  11. Question 11 Ordinary, Simple and Indicator Kriging
  12. Question 12 After-Tax Cash Flow and NPV of a Non-Core Asset Purchase
  13. Question 13 Net Smelter Return for Four Metals

Start with Question 1 →

EGBC National Exam — Mining and Mineral Processing Engineering, 09-Mmp-A4 Mine Valuation and Mineral Resource Estimation, 2013-Dec. 3 hours duration; one handwritten 8.5×11 in reference sheet permitted (not an open-book exam); only approved Sharp or Casio calculators allowed. Question 1 is compulsory (40 marks, parts 1.1–1.7); candidates then select FOUR of the six optional Questions 2–7 (15 marks each) to complete the paper.

Reference texts: Isaaks & Srivastava, An Introduction to Applied Geostatistics (variogram modelling, kriging estimators, compositing and support); Hustrulid, Kuchta & Martin, Open Pit Mine Planning and Design (NPV/cut-off grade methodology, cost estimating, financing structures); Torries, Evaluating Mineral Projects: Applications and Misconceptions (SME) (mine valuation, cost of capital, inflation treatment); Gentry & O'Neil, Mine Investment Analysis (net smelter return, smelter/refining contract terms); SME Mining Engineering Handbook, 3rd ed. (mineral economics, capital and operating cost estimating).