Feasibility Study

The most rigorous economic study stage, sufficient to support a production decision and project financing.

Definition

A comprehensive technical and economic study of a mineral project used to demonstrate whether the project is economically viable and technically feasible. Feasibility studies are required before a project can proceed to development and must be prepared by qualified persons under NI 43-101 standards.

Why it matters

A feasibility study converts indicated and measured resources into reserves and is what banks lend against. Reaching it is the point at which a junior stops being an exploration story and becomes a construction financing problem.

In practice

Expect detailed capital and operating costs, metallurgical test work, permitting status and a defined mine plan. Compare its assumptions against the PEA that preceded it — the delta tells you how well the project held up under scrutiny.

See also

  • Preliminary Economic Assessment (PEA) An initial economic analysis of a mineral project that includes estimates of capital and operating costs, meta
  • Mineral Reserve The economically mineable portion of a measured or indicated mineral resource, demonstrated by at least a prel
  • Capital Expenditure (CapEx) The upfront costs required to build a mine, including equipment, infrastructure, and construction. CapEx is di
  • Net Present Value (NPV) The present value of future cash flows from a mining project, discounted at a specified rate (typically 5% for

More resource reporting terms