Geological Science and Engineering
Queen's UniversityEconomic Guidelines for Mineral Exploration
Professional Development Seminar
December 2 - 7, 2012
Department of Geological Sciences and Geological Engineering
Queen's University
Purpose of the Seminar
The seminar is intended for participants with responsibilities for mineral exploration. Project geologists, exploration managers, corporate planners, and government policy analysts will find it to be a useful opportunity to study, learn and utilize economic evaluation principles as applied to support exploration and acquisition decisions. The seminar will develop those evaluation skills which enable explorationists to translate geological knowledge and expertise into economic criteria. The purpose is to encourage successful exploration by providing economic support for exploration investment and planning decisions; improving communications within and among exploration groups and mining companies; assisting participants in asserting control over their exploration activities; and providing an improved basis for mineral policy assessments in government.
Seminar Content
The following topics will be included:
- Exploration Economics and Evaluationthe mineral supply process; mining company planning; evaluating costs, risks, and returns; the investment decision process; economic evaluation techniques.
- Concept of Cash Flowspecification of currency; end-of-year convention; taxation considerations; constant and current money values; real changes in future economic conditions.
- Cash Flow Criteriatotal profit; project size; operating margin; competitive cost position; payback period.
- Time Value of Moneycost of capital; economic justification of investment; time value relationships.
- Discounted Cash Flow Methodsclassification of alternatives; equivalent annual value; net present value; present value ratio; rate of return; comparative strengths and weaknesses; the problem of contradictory results.
- Mining Taxation Considerationseffect of taxation on individual cost and benefit elements; individual project and integrated company tax bases; mining taxation systems in Canada, and selected international jurisdictions.
- Sensitivity and Risk Analysis Techniquesanalyzing the possible effects of uncertain parameters; definition of strategic variables; answering 'what if' questions; traditional risk analysis methods; the probabilistic concept of risk; estimating probabilities; analytical risk analysis techniques; the monte carlo simulation technique; risk adjusted cost of capital.
- Evaluation of Exploration Projectsthe mineral conversion process; basic information requirements; technically feasible alternatives; estimation of ore reserves; estimation of revenue; net smelter return conditions; estimation of capital and operating costs; inflation and exchange rate considerations.
- Exploration Planning Issuesestablishing minimum acceptable exploration target conditions; examining the returns from exploration success; comparing the economics of finding and acquiring ore reserves; structuring exploration agreements.
- Exploration Economics and Strategiesrole of exploration in the mining company; international case study appraisals of exploration economics; historical trends in exploration expenditure, technological advances and changing exploration targets; assessing costs, risks, and returns for exploration environments of interests.
Seminar Schedule
The seminar begins Sunday afternoon and ends at noon on the following Friday.
|
Sunday |
2 pm |
Introduction |
|
6 pm |
Get Acquainted Hour |
|
|
Monday |
am |
Concept of Cash Flow |
|
pm |
Cash Flow Estimation |
|
|
evening |
Small-Group Work |
|
|
Tuesday |
am |
Time Value of Money |
|
pm |
Discounted Cash Flow |
|
|
evening |
Small Group Work |
|
|
Wednesday |
am |
Mining Taxation Considerations |
|
pm |
Sensitivity and Risk Analysis |
|
|
Thursday |
am |
Minimum Acceptable Targets |
|
pm |
Holistic Project Evaluation |
|
|
evening |
Small Group Work |
|
|
Friday |
am |
International Case Studies |
|
noon |
Adjournment |
Morning Sessions are 8:30am - 12:00pm
Afternoon Sessions are 1:30pm - 5:00pm
Evening Sessions are 7:00pm - 9:00pm
Seminar Structure
Lectures and discussions will focus on exploration, development and acquisition investment issues. Emphasis is placed on small group work interspersed with formal lectures and open discussions.
The seminar is designed to sequentially introduce relevant evaluation techniques culminating in full holistic evaluation of mineral investment opportunities by the end of the week. The sessions address a wide range of international case studies, drawing on the seminar leader's experience, particularly in Australia, Brazil, Canada, Chile, China and Peru.
Participants should bring a calculator or a laptop computer. A comprehensive 400-page set of seminar notes and other seminar materials will be distributed at the beginning of the seminar.
Seminar enrolment will be limited to a maximum of 25 registrants.
Seminar Leader
The seminar will be led by Dr. Michael Doggett. He is President of HanOcci Mining Advisors Inc. based in Toronto and Vancouver where he consults to a wide range of mining and exploration companies. He currently sits as a Director of the Prospectors and Developers Association of Canada and as a Director of six public companies: Inter-Citic Minerals, Minco Gold, Murgor Resources,Pacific Link Mining, Riverside Resources, and VLM Ventures.
Dr. Doggett is an Adjunct (Group 1) Professor in the Department of Geological Sciences and Geological Engineering and in the Robert M .Buchan Department of Mining at Queen's University where he served as Director of the Mineral Exploration Master's Program from 1997 to 2007. He holds degrees in geology and mineral economics from Mt. Allison University and Queen's University. His areas of expertise relate to the economic analysis of mineral exploration and acquisition.
Dr. Doggett has taught professional development seminars in mineral project evaluation and exploration strategic planning to more than 1200 professionals in a dozen countries.
Seminar Location & Participant Accommodations
The seminar will be held at the Four Points Sheraton Hotel, Kingston, Ontario, Canada located at:
285 King Street East │ Kingston │ ON │CAN│ K7L 3B1 │ 613.544.4434 │ http://www.fourpointskingston.com/
The Four Points Sheraton is located one kilometre east of the University's main campus. This recently opened hotel is located in the centre of downtown Kingston and contains full conference facilities, on-site business centre, indoor pool, whirlpool, sauna, and exercise rooms. All guest rooms include voicemail, data port, and work desk.
Registration and Payment Information
Registration Fee: $4,200 + 13% HST = $4,746 (Canadian dollars)
The registration fee covers:
- accommodation from Sunday to Thursday night in private room at the Four Points Sheraton Hotel(Kingston)
- meals from lunch on Sunday to lunch on the following Friday
- seminar notes and other seminar materials
Registration and Payment Options :
- Please fill out the printable Registration Form below and send it, along with your cheque payable to Queen's University, to:
Department of Geological Sciences and Geological Engineering
Queen's University │Room 240 │ Bruce Wing │ Miller Hall
Kingston │ON │ CAN │ K7L 3N6
Attn: J.Hogan
- Fax registration form with completed credit card information to 613.533.6592 (Visa or MasterCard only)
- Email scanned registration form with completed credit card information to ksmith@geol.queensu.ca
Seminar Cancellation Policy
Registrants may cancel for full refund up to 30 days prior to the start of the seminar. Thereafter, cancellations are subject to a $300 service charge. Persons with confirmed registrations eight (8) days prior to the start of the seminar who do not attend will be charged a fee of $800. Substitutions may be made at any time.
Seminar Inquiries
For further information regarding the Economic Guidelines for Mineral Exploration Professional Development Seminar, please contact:
Jessica Hogan
Professional Development Seminar Coordinator
Department of Geological Sciences and Geological Engineering
Queen's University │Room 240 │ Bruce Wing │ Miller Hall
Kingston │ON │ CAN │ K7L 3N6
Tel: 613.533.3017 │ Fax: 613.533.6592
ksmith@geol.queensu.ca│
http://www.queensu.ca/geol/index.html
Getting Here
Queen's University is situated in the city of Kingston, Ontario on the north eastern shore of Lake Ontario halfway between Toronto and Montreal, and 150 kilometres north of Syracuse, New York. The city is easily accessible by road, rail and air.
Access by car from Montreal (290 km) and Toronto (260 km) is via Highway 401, and from Ottawa (160 km) via Highways 416 & 401.
Regularly scheduled bus and rail service is available from all three cities.
There is also limousine service from Montreal, Ottawa, Toronto and Syracuse.
Air Canada has several flights per day to Kingston from Pearson International Airport in Toronto.