Feasibility and Resource/Reserve Reports

Whether a mining project is worth investing in is established through a reliable resource/reserve study and a comprehensive feasibility report. We look at the difference between a resource and a reserve, the scope of feasibility studies, and the reporting process.

For a mining project to be assessed correctly in technical and economic terms, the potential of the deposit must be established with reliable data and evaluated alongside operating conditions. Resource/reserve studies and feasibility reports bring together the core elements of a project — from geological data to production planning, and from mine design to economic analysis — providing a comprehensive basis for investment and operating decisions.

Resource and Reserve Studies

Resource and reserve assessments are built on drilling data, geological observations, sample analyses, topographic data and other technical studies. Evaluating this data establishes the geometry of the deposit, the continuity of mineralization, the grade distribution and the tonnage.

Work carried out on three-dimensional geological and block models allows mineral resources to be classified appropriately. For a resource to be reported as a reserve, the Modifying Factors — the applicable mining method, economic conditions, metallurgical characteristics, grade, dilution and production losses — must be taken into account.

Feasibility Studies

Feasibility studies aim to establish whether the identified resource and reserve can be produced technically and evaluated economically.

Within this scope, the following are assessed as a whole:

The geological, resource and reserve model of the deposit
The appropriate mining method and production capacity
Open pit or underground mine design
The production schedule and mine life
Ore preparation and beneficiation methods
Capital (CAPEX) and operating (OPEX) costs
Project revenues and economic indicators
Infrastructure, energy, water and logistics requirements
Environmental, social and legal requirements

These studies set out the technical feasibility, economic potential, investment requirements and possible risks of the project, providing a comprehensive assessment to support investment decisions.

Reporting and Technical Assessment

In resource and reserve reporting, the reliability of the data used, the suitability of the methods applied and the transparency of the assumptions made are of great importance. During the reporting process, data from different disciplines — geology, mining engineering, ore preparation, metallurgy and economics — is evaluated together.

As a YTK, we combine geological modeling, resource and reserve estimation, mine design, production planning and economic analysis to prepare feasibility and resource/reserve reports that can form the basis of investment and operating decisions for mining projects.

Frequently Asked Questions

Are a feasibility report and a reserve report the same thing?

No. A reserve report determines how much mineable ore exists on a site, whereas a feasibility report analyses whether that reserve will be economically profitable. The two complement each other.

Who can sign a UMREK report?

Resource and reserve reports compliant with the UMREK code can only be prepared and signed by Competent Persons recognized by UMREK.

Why do investors and banks require a feasibility report?

Before committing funds to a project, investors and financial institutions require an independent feasibility report supported by indicators such as cash flow, NPV and IRR. This report is the primary evidence of a project's bankability.