JUNIOR MINERS

Understanding Pre-Feasibility Studies (PFS) In Alaska Gold Claim For Sale

If you are paying attention to the news of the precious metals sector, you might have heard about the terms preliminary economic assessment or PEA and the pre-feasibility study. Both these studies are important phases in the lifecycle of the gold mine, and investors take notice when the junior mining or Exploration Company releases the PFS and PEA results. But, when you plan to put up the Alaska gold claim for sale, what do you know about the preliminary economic assessment? How is it different from the pre-feasibility study?

Knowing about the preliminary economic assessment can result in helping retail investors determine the potential of the exploration company to move into production. Whenever the junior mining company moves into the production stage, it translates to significant gains for the ones who were the early investors.

What Is A Preliminary Economic Assessment (PEA)?

The study that examines the economic viability of the mineral resources of the projects is known as the preliminary economic assessment. Preliminary economic assessments are the initial ones in the series of investigations before the feasibility and pre-feasibility studies. The PEAs would use varied factors to assess the potential of the mineral resource projects in terms of generating better profits. These are the studies that are greatly involved taking several months to years to finish to round this up.

Engineers and geologists should conduct varied technical studies on the economic viability deposits before the junior mining company moves into the development phase. As already mentioned, the PEA is one of the initial phases in the gold mine's lifecycle followed by the feasibility and pre-feasibility studies.

The preliminary economic assessments, feasibility studies, and pre-feasibility studies will all assess and investigate the geological, engineering, and economic aspects of the mineral resources, however, with dramatically varied levels of details, accuracies, and confidence. A PEA often is the initial stage of the economic study with the lowest level of accuracy. It is often defined by the national instrument, which is a study other than the feasibility or the pre-feasibility, including the economic examination of the potential viability of the mineral resources.

At times, they are referred to as the scoping studies with PEAs, mainly consisting of the technical report by a qualified person. The person should have relevant experience allowing them to produce a technical report including the metallurgical testing data on the basis of the inferred mineral resource. The resource estimates are on the basis of the limited information and sampling of the mineralization.

The PEAs typically include the base-case information on the capital expenses to bring the project into production, being part of the exploration process for both the open-pit and underground mining. These estimates include the operations management after the project moves onto the development process with the amount of gold and other minerals it produces, along with the cost of the operation.

What Is A Pre-Feasibility Study (PFS)?

The junior mining company proceeds to the pre-feasibility and feasibility studies after the completion of the successful PEA. These are the studies that are in-depth using the same geological, economic, and engineering factors.

The pre-feasibility studies are the preliminary exams of the potential mining project. They offer the company stakeholders the minimal information needed for the approval of the project or select between the potential investments.

The pre-feasibility studies offer a complete overview of the logistics, critical issues, capital requirements, and related information deemed as a necessity to the process of making a decision for the mining project. They indicate the average grade for the gold and other resources and the potential number of ounces that any mining company extracts over a specific time. A PFS helps in gathering the right information before investing millions of dollars in resources as the mining projects need substantial time and funding, including the legal and regulatory expenses or buying the research equipment.

Bottom Line:

Alaska gold claim for sale with the PFS phase evolves into a series of iterative assessments, which are updated gradually and modified as the engineering and exploration design continues. It undergoes evaluation, and if there are positive results, then the mining company moves on to the feasibility study.