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.
(a) NSV is the net value of a tonne of CONCENTRATE after deducting treatment charge, refining charge and penalties from the gross payable-metal value at the reference metal price — a metallurgical/plant-gate figure, in USD per tonne of concentrate. (b) NSR converts NSV onto a per-tonne-of-ORE basis by dividing by the concentration factor (tonnes ore per tonne concentrate, set by head grade, recovery and concentrate grade), giving USD per tonne of ORE. The mining engineer uses NSR directly for cut-off grade determination, block/stope economic evaluation and mine-planning/scheduling decisions (all naturally expressed per tonne of ore, matching mining and milling cost units), while NSV is the figure the metallurgical/marketing side uses to evaluate concentrate quality and negotiate smelter terms.
