Scenario Based Project Evaluation

QG have developed an integrated risk-based mining project evaluation tool to rapidly assess the potential value and risk of a wide range of business strategies. Ideally suited for Strategic Planning, SBPE combines the richness of probablistic resource characteristisation with multiple mining and economic strategies to evaluatethe production and cash flow outcomes for new or existing projects.

Conventional project evaluation models do not take into account both spatial variability and temporal scales and therefore many business critical constraints are not identified. This can lead to poor design decisions that require massive and ineffectve capital modifications after commissioning. QG’s approach breaks this paradigm and allows a realistic evaluation of business performance taking into account mission critical constraints. A conventional approach based on average mining block grades and average monthly throughput rates may fail to hit production or commercial constraints. The SBPE approach reduces the scale granularity of the evaluation revealing the underlying variability that the mining and ore treatment processes must deal with. Hitting constraints on a daily basis means capacity loss that cannot be recovered.

Scenario Based Project Evaluation can also provide insight into the deliverability of any business plan or budget. Business leaders can use this approach to quantify the likelihood of achieving or exceeding a given plan or failing to achieve planned targets. The likelihood of success of one plan can be compared to another allowing planners and managers to clearly outline the associated resource and reserve risk.