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24-MMP-A4 Mine Valuation and Mineral Resource Estimation: May 2016

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

  1. Question 1 Commodity Prices
  2. Question 2 Mine/No-Mine and Open Pit vs. Underground Decision Process
  3. Question 3 The Semi-Variogram – Components and Sketch
  4. Question 4 Low-Grade Porphyry Copper – Typical Development Parameters
  5. Question 5 Project Net Present Value
  6. Question 6 The Ordinary Kriging Matrix
  7. Question 7 Oil Sands Geology – Fort McMurray/Fort McKay Area
  8. Question 8 Depreciation, Depletion and Amortization
  9. Question 9 Federal/Provincial Taxation and Royalties on Oil Sands
  10. Question 10 After-Tax NPV, Present Value Ratio and DCF-ROR
  11. Question 11 Porphyry Deposit of the Canadian Cordillera
  12. Question 12 1: Two-Structure Nested Spherical Variogram Model
  13. Question 13 2: Pitfalls of One Variogram Across High- and Low-Grade Areas
  14. Question 14 Typical Copper Smelter Contract Elements
  15. Question 15 Concentrate Transportation – Eastern Canada vs. Pacific Rim
  16. Question 16 Why Molybdenum Contributes Almost as Much Revenue as Copper
  17. Question 17 4.7: Net Smelter Return – Simplified Copper-Only Model
  18. Question 18 Smelter Contracts for Copper, Zinc and Molybdenum
  19. Question 19 DCF Yield vs. Inflation – Equity and Leveraged Financing
  20. Question 20 Capital Cost Overruns – Causes and Recommendations
  21. Question 21 Five Approaches to Price Inflation/Deflation Forecasting
  22. Question 22 Currency Selection by Cost/Revenue Category
  23. Question 23 Accounting for Inflation Over Project Life
  24. Question 24 Depreciation, Depletion and Amortization (Revisited)
  25. Question 25 1: Epithermal Gold Deposit – Pacific Rim / Rocky Mountain Type
  26. Question 26 2: Why Simple Kriging Weights Need Not Sum to One
  27. Question 27 3: Ordinary vs. Simple Kriging for Gold Block Estimation
  28. Question 28 Indicator Kriging for Epithermal Gold
  29. Question 29 Ore Deposit Models – Geologic Setting, Minerals, Mining and Cost

Start with Question 1 →

EGBC National Exam — Mining and Mineral Processing Engineering, 09-Mmp-A4 Mine Valuation and Mineral Resource Estimation, 2016-May. 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 1.1–1.6); candidates then select THREE of the six optional Questions 2–7 (20 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, inflation and financing effects on DCF yield, smelter/refining contract terms, net smelter return); SME Mining Engineering Handbook, 3rd ed. (mineral exploration/evaluation stages, ore reserve classification, ore deposit models); CIM Best Practice Guidelines and NI 43-101 (Canadian Securities Administrators).