Economic Evaluations in Exploration

1. Front Matter

   Pages I-XIV

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2. Introduction

   Pages 1-1

3. Conversions

   Pages 3-19

4. First Estimates of Grade and Tonnages and Potential Grade and Tonnages

   Pages 21-39

5. Dealing with Data of Multi-Element Deposits

   Pages 41-54

6. Conversion of Geological Data into Mining Data for Ore Deposits

   Pages 55-60

7. Introduction to Economic Evaluations

   Pages 61-62

8. Metal Prices

   Pages 63-70

9. Calculation of the Net Smelter Return (NSR) of a Mine

   Pages 71-77

10. Production Lifetime

    Pages 79-85

11. Calculation of Cost Data

    Pages 87-111

12. Additional Economic Planning Methods

    Pages 113-121

13. Economic Evaluations

    Pages 123-169

14. Quantitative Valuation of Exploration Projects without Known Mineralization

    Pages 171-174

15. Comparison of Deposits

    Pages 175-184

16. Calculating Growth Rates

    Pages 185-189

17. Equity Calculations

    Pages 191-195

18. Back Matter

    Pages 197-250

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This textbook, now in its second English edition, is originally a translation of the G- man textbook “Rechnen für Lagerstättenkundler und Rohstoffwirtschaftler, Teil 1”, also translated into the Chinese and Russian languages. Compared to the previous English and German editions the chapters have been updated with new examples and in many cases amended. The textbook is intended for the economic geologist who deals with the evaluation of deposits at an early stage of development. Once an exploration project has reached the feasibility stage, the exact calculations that are necessary for a comprehensive te- nical and economic assessment will be performed by a team of geologists, mining engineers, metallurgists, and economists. In the early stages of exploration, however, any evaluator of deposits must be able to cover the whole spectrum himself. Since only order of magnitude parameters are available at this early stage, the c- culations can only yield order of magnitude results. Precise calculations would even be misleading, since the evaluation does not yet aim at accurate economic assessment but at making the right decision: should the investigation be abandoned or should it be continued at higher costs and with more detailed methods.

• Economic Geology
• Exploration Geology
• Mineral Deposits
• Resource Estimation
• Statistics
• mining
• mineral resources

From the reviews of the second edition:

"This textbook is designed for economic geologists who deal with the evaluation of deposits at an early stage of development. … the book contains a useful list of references and a number of appendices, including tables, graphs, mathematical formulae, and internet addresses. … is a handy reference for practitioners and a useful textbook for students." (Jean-Michel Rendu, Economic Geology, Vol. 103, 2008)

"The textbook is intended for the economic geologist who deals with the evaluation of deposits at an early stage of development. … It provides both the student and the geologist in the field with a complete set of rules and methods enabling them to perform a quick initial evaluation of the deposit without the support of specialists or computers … . The case histories, exercises, metal prices and terminology, especially concerning ‘reserves and resources’, have been fully updated in this second edition." (Glückauf, Vol. 145 (6), July, 2009)

• Hannover, Germany

  Friedrich-Wilhelm Wellmer

• Bundesanstalt für Geowissenschaften und Rohstoffe (BGR), Hannover, Germany

  Manfred Dalheimer, Markus Wagner

Friedrich-Wilhelm Wellmer worked for the German mining company Metallgesellschaft world wide and he was Director of Exploration for the Metallgesellschaft of Australia in Melbourne before joining the Federal German Geological Survey, the BGR in Hannover. From 1996 to 2005 he was Director of the BGR and also of the State Geological Survey of Lower Saxony. Wellmer taught raw materials policy and economic geology at the Technical University Berlin.

Manfred Dalheimer worked for the mining companies Centromin Perú and Metallgesellschaft before joining the BGR. From 1991 to 1997 he was head of Mining and Environment, and from 1997 to 2003 of Mineral Economics. Since 2003 he has been head of International Cooperation, America. Dalheimer is a mineralogist and holds a doctorate in economic geology.

Markus Wagner is a specialist in the assessment and evaluation of mineral resources. Since 2003 he has been head of Mineral Economics as well as Mining for the BGR. He has worked as an exploration geologist, project manager and consultant in many countries. Wagner is a geologist and industrial engineer and holds a doctorate in mineral economics.

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