Prefeasibility Studies and the Problems in their Auditing

There is considerable variability in the level of detail incorporated in prefeasibility studies relating to mining developments. Hence, when undertaking a review or audit, it is critical to attempt to ascertain at an early juncture precisely who has compiled the various facets of the study, for what purpose it was intended and the terms of reference given to the authors. Likewise, when commissioned to undertake an audit it is preferable to have proper terms of reference and to be aware of the purpose to which the audit will be put.These factors will influence the degree of detail an auditor would expect to find in the study and consequently, the degree of effort/time required for the audit process. In most instances audits do not imply recalculation of the entire study or modifying it in anyway, but involve an overall assessment of the methodology used, combined with spot checking of detail. One of the most difficult aspects is to determine a realistic order of accuracy for the overall study when the accuracy of the individual components may differ markedly.