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24-MMP-A4 Mine Valuation and Mineral Resource Estimation: May 2017

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

  1. Question 1 Underground vs. Open Pit – the Mine/No-Mine Decision Process
  2. Question 2 The Semi-Variogram – Components and Sketch
  3. Question 3 The Ordinary Kriging Matrix
  4. Question 4 Low-Grade Porphyry Copper – Typical Feasibility-Study Parameters
  5. Question 5 The McKelvey Diagram – Resource/Reserve Classification
  6. Question 6 Commodity Prices, May 2017
  7. Question 7 Nested Spherical Variogram – Numeric Evaluation
  8. Question 8 Variogram Terminology – Anisotropy Parameters
  9. Question 9 Kriging Methods – Ordinary, Simple and Indicator
  10. Question 10 Power-Law Mining Cost Models – Commentary
  11. Question 11 Component and Total Mining Costs at 50,000 t/day
  12. Question 12 4.2: NPV of a 4-Year Cash Flow and Investment Justification
  13. Question 13 Maximum-NPV Cut-off Grade and Material Categories 1–3
  14. Question 14 Ownership of Natural Resources and Canadian Ore Deposit Models
  15. Question 15 Smelter Contract Terms for Copper, Zinc and Molybdenum
  16. Question 16 A Typical Copper Smelter Contract – Charges, Refining, Lead Effect, Precious Metals
  17. Question 17 Concentrate Transportation – Eastern Canada vs. Pacific Rim
  18. Question 18 Net Smelter Return – Simplified Copper-Only Model

Start with Question 1 →

EGBC National Exam — Mining and Mineral Processing Engineering, 09-MMP-A4 Mine Valuation and Mineral Resource Estimation, 2017-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 five optional Questions 2–6 (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, smelter/refining contract terms, net smelter return, transportation logistics); SME Mining Engineering Handbook, 3rd ed. (cost-estimating relationships, mineral exploration/evaluation stages, ore reserve classification); Evans, An Introduction to Ore Geology and Guilbert & Park, The Geology of Ore Deposits (ore deposit models); CIM Best Practice Guidelines and NI 43-101 (Canadian Securities Administrators).