24-MMP-A4 Mine Valuation and Mineral Resource Estimation · December 2014
Nivaar worked solution (AI-drafted; not reviewed by a licensed engineer)
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).
Question text not reproduced: the examination questions are © Engineers and Geoscientists BC. Open the official past paper (linked at the top of this page) to read the question, then follow the worked solution below.
The exam sitting is December 2014, a period of unusually sharp commodity movement: base metals were range-bound near their year lows while crude oil was in the middle of a historic price collapse (WTI fell from roughly US$105/bbl in June 2014 to under US$55/bbl by mid-December 2014 on OPEC's decision not to cut output into an oversupplied market). The exact "day before the exam" is not stated, so the table below reports representative December 2014 LME/NYMEX settlement levels, all comfortably within the 15% tolerance the question allows for any specific trading day that month.
| Commodity | Price | Exchange / benchmark |
|---|---|---|
| Copper | US$2.90/lb (≈ US$6,390/tonne) | LME cash settlement |
| Gold | US$1,200/oz troy | LME/LBMA PM fix |
| WTI Crude Oil | US$57/bbl | NYMEX WTI front-month |
