....a preliminary feasibility study (PFS) is an economic analysis of the viability of a mining project...
A PFS will also take into account other key factors that could impact a project such as community issues, geographic obstacles, permit challenges and more. In addition, it will usually include a range of options for the technical and economic aspects of a project and are used to justify continued exploration, to complete the required project permitting, or to attract a joint-venture partner.
If a completed pre-feasibility study turns out to be positive, the company will usually advance the project to the next stage: a feasibility study.
A Feasibility Study is "a comprehensive study of a mineral deposit in which all geological, engineering, legal, operating, economic, social, environmental and other relevant factors are considered in sufficient detail that it could reasonably serve as the basis for a final decision by a financial institution to finance the development of the deposit for mineral production.”
So, when we talk about feasibility, we don’t mean practical feasibility (“Can silver be mined here?”) but economic feasibility (“Can silver be mined here at a profit?”) – because if nobody can make a buck doing it, it just not going to happen.
The feasibility study is only a step along the path to production. In addition to the FS, licensing and permitting approval will also need to be attained in order to advance a project to the production stage.
In the end, the decision whether or not to continue with a project comes down to the judgment of the project leaders.
And judgement from project financiers/partners to cough up funds. The project is not yet fully funded and still has obstacles. Plenty of expected time line changes are all but guaranteed on the rocky path to expected production.
Plenty of time for whining, as in the interim, less money for dining and wining unless one is in management.
AAU Price at posting:
0.4¢ Sentiment: Sell Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
The project is not yet fully funded and still has obstacles. Plenty of expected time line changes are all but guaranteed on the rocky path to expected production.
(20min delay)