The mining industry’s track record of feasibility studies is not good, with an aggregated study (Bullock, 2011) finding that on average mining projects overrun capital estimates by 15% or more, more than half the time. A weighted average overrun across all projects was 26%.
The purpose of a feasibility study is to evaluate the technical, commercial and economic basis of a mining project and determine whether the opportunity makes good business sense.
Our approach is to collaborate with and always act in the best interests of our client. Sometimes when asked “Is the project feasible?”, the best answer is “No.” A negative result from a study is going to be much cheaper in the long run than developing a project which then goes on to fail. The challenge is to identify those prospects that are viable and ask the right questions to identify and bring to fruition the optimal value for our clients.
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