If you've identified a potential mining opportunity, then you need to evaluate the site before you set up an operation. You have to check if the site is a viable investment that will give you the returns that you need to cover your costs and put you into profit.

After a scoping analysis, you might feel ready to move on to a more in-depth feasibility study. However, at this stage, it's worth commissioning a prefeasibility study first.

What is a prefeasibility study, and why should you have one?

What Is a Prefeasibility Study?

A prefeasibility study shares some features with a feasibility study. Both of these surveys assess the viability of mining an identified site.

However, a prefeasibility study works slightly differently. It does an analysis of the site and your plans that give you information to help you decide whether and how to proceed.

For example, your mining engineering consultancy will look at the site to see if it worth your investment. Sometimes, the answer is clear. The study might tell you that the site is a viable investment. Or, it tells you that it isn't. In some cases, it opens up new lines of operation that you could look at as an alternative to your original plans.

This kind of study also looks at the best business scenarios. If you have different options and models that you might use on the site at this point, then the survey assesses their viability and shows you the best option.

Plus, this study often incorporates external factors such as your ability to get development permission and permits. If you are likely to encounter problems with local stakeholders, then this could also become apparent at this stage.

Why Have a Prefeasibility Study?

A prefeasibility study is an important step in the mining planning process. As well as helping you evaluate the viability of the project, it could also prevent you from making costly mistakes.

For example, if you go straight to a feasibility study, then you will have to spend more money. You might need to buy research equipment and to commission in-depth surveys, tests and studies. So, you'll commit financial and time resources to the project. You'll lose money and waste time if the feasibility study then shows you that the project isn't likely to work.

If you have a prefeasibility study, then you know that your plans are basically sound. You'll have had time to change anything that won't work and to improve your plans. You can have some confidence that you can start to map out future parts of the project.

To find out more about prefeasibility studies and their benefits, contact mining engineering professionals.