24-MMP-A4 Mine Valuation and Mineral Resource Estimation · December 2018
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, 2018-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 1.1–1.8); 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, anisotropy); Hustrulid, Kuchta & Martin, Open Pit Mine Planning and Design (mine valuation, NPV/IRR and cut-off grade methodology); Gentry & O'Neil, Mine Investment Analysis (smelter/refining contract terms, net smelter return, taxation and risk); Guilbert & Park, The Geology of Ore Deposits, and Evans, Ore Geology and Industrial Minerals (VMS/SEDEX and porphyry deposit models); 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 eastern-Canada route requires a very long overland rail haul (order of 4000 km across the country) entirely by unit train, incurring a substantial per-tonne rail tariff that scales with distance and is exposed to domestic rail-capacity/service constraints. The Pacific-Rim route requires only a SHORT rail or truck haul (order of 1000 km) from central BC to a coastal port (Vancouver/Prince Rupert), followed by relatively CHEAP bulk ocean freight (ships have a much lower cost per tonne-km than rail) to smelters in Japan, China or Korea. For a central-BC deposit the total delivered logistics cost is typically LOWER via the Pacific route despite the extra port handling and ocean leg, because ocean freight's cost-per-tonne-km is a small fraction of rail's over the much longer eastern haul; this is also the historical pattern for BC porphyry producers, most of whom ship concentrate through west-coast ports to Asian smelters rather than east across the country. The final choice in practice also depends on the specific smelter contract terms (treatment/refining charges, payable percentages) offered by each destination, which can outweigh a modest logistics-cost difference.
