Mining PEA
As stated in a previous article (“PEA’s – Not All PEA’s Are Created Equal“) different PEA’s will consist of different levels of detail.  This is driven by the amount of technical data available and used in the study.    The same issue applies to a single PEA whereby different chapters of the same study can be based on different degrees of data quality.
I have seen PEA’s where some of the chapters were fairly high level based on limited data, while other parts of the same study went into great depth and detail. This may not be necessary nor wise.

Think about the level of detail justifiable

If the resource is largely inferred ore, then the mine production plan will have an inherent degree of uncertainty in  it.  So there is not a lot of justification for other engineers (for example) to prepare detailed tailings designs  associated with that mine plan.
Similarly there is little value in developing a very detailed operating cost model or cashflow model for a study that has many underlying key uncertainties.  Such technical exercises may be a waste of time and money, adding to the study duration, increasing engineering costs, and giving the unintended impression that the study is more accurate than it really is.
Different levels of detail in the same study can crop up when diverse teams are each working independently on their own aspect of the study.   Some teams may feel they are working with highly accurate data (e.g. production tonnage) when in reality the data they were provided is somewhat speculative.
The bottom line is that it is important for the Study Manager and project Owner to ensure the entire technical team is on the same page and understands the type of information they are working with.   The technical detail in the final study should be consistent throughout.
Experienced reviewers will recognize the key data gaps in the study and hence view the entire study in that light regardless of how detailed the other sections of the report appear to be.
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3 thoughts on “8. PEA’s – Is it Worth Agonizing Over Details

  1. hardrockminer

    Good thoughts. I would add (as someone who reads a lot of technical reports) that it’s useful to understand why the owner prepared the report. Some owners just want to flog their property and don’t want to do any more work than they have to. Another factor in my understanding is which consulting group wrote the report. There are good consultants and not so good ones.

  2. John Darwin Amag

    I have read all of your articles and I want to thank you for sharing all of your knowledge. it is essential for me as a Young Mining engineer in my first year of Work. God Bless and Looking forward to more updates on this site.

  3. Ken Kuchling Post author

    Thanks for the feedback. I always like to hear from readers, positive or negative.

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