Some novel features and implications of a general risk-analysis model for new mining ventures

The scope and salient features of a general risk-analysis model for the main types of new mining ventures are covered in brief outline. The following special features and their effects on the investment criteria are discussed: - various criteria for viability, - the maximum shortfall of funds, - correlations between the grades of up to five ore constituents and between the corresponding product prices. differential inflation and escalation rates for costs and prices, - the estimation, if relevant, of a pay limit based either on the major product only, or on the two major products jointly, - the likely recovery grades of all the products to be obtained when the ore-body is mined to any such pay limit. - an option to take account of the effect on the pay limit of any negative taxation on marginal ore, - investment analyses in current and real terms for individual groups of investors subscribing for equity and any loan capital on differential terms.