NivaarExam PrepOfficial exam papers ↗

24-MMP-A4 Mine Valuation and Mineral Resource Estimation: December 2014

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

  1. Question 1 Commodity Prices
  2. Question 2 Grade Control – Porphyry vs. Vein Deposits
  3. Question 3 Spherical Variogram Model Sketch
  4. Question 4 Block Models – Porphyry vs. Vein Application
  5. Question 5 Mineral Resource vs. Mining Reserve
  6. Question 6 Smelter Contracts – Small vs. Large Producers
  7. Question 7 Mine Valuation Methods – NPV and Alternatives
  8. Question 8 Deposit Type Comparison
  9. Question 9 Grade Interpretation Complexity
  10. Question 10 Spherical Variogram – Mathematical Description & Nesting
  11. Question 11 Why Nested Spherical Models Are Used
  12. Question 12 Nested Spherical Model – Gamma Values
  13. Question 13 Variogram-Related Terms
  14. Question 14 General Form of the Ordinary Kriging Matrix
  15. Question 15 1: Pseudo Samples and Their Adequacy
  16. Question 16 2: Deriving Sample-Sample Co-Variogram Values
  17. Question 17 3: Deriving Sample-Block Co-Variogram Values
  18. Question 18 4: Full Kriging Matrix and Output Vector
  19. Question 19 5: Grade of the Block
  20. Question 20 6: Meaning of the Lagrange Multiplier
  21. Question 21 McKelvey Diagram
  22. Question 22 NI 43-101 Terminology
  23. Question 23 Smelter Contract Terms
  24. Question 24 NSV vs. NSR Definitions
  25. Question 25 6.5: NSV, NSR and Mine NSR Calculation
  26. Question 26 After-Tax Cash Flows and NPV
  27. Question 27 Capital Cost Allowance and Class 41

Start with Question 1 →

EGBC National Exam — Mining and Mineral Processing Engineering, 09-Mmp-A4 Mine Valuation and Mineral Resource Estimation, 2014-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, volume–variance relations); Hustrulid, Kuchta & Martin, Open Pit Mine Planning and Design (mine valuation, NPV and cut-off grade methodology, mineable reserves); Gentry & O'Neil, Mine Investment Analysis (Canadian mining taxation, smelter/refining contract terms, net smelter return); SME Mining Engineering Handbook, 3rd ed. (mineral exploration/evaluation stages, ore reserve classification); CIM Best Practice Guidelines and NI 43-101 (Canadian Securities Administrators).