FEBRUARY 18, 2020 SECTION MEETING:
A direct, Project-Based Comparison of Commonly used Pre-Feasibility-Level Cost Estimating Methods
Join us for a presentation from Scott Stebbins, PE, President of Adventurine Mine Cost Engineering, Inc.
Aventurine Engineering, Inc., was asked to evaluate and compare the reliability,
pertinence, and utility of the different methods commonly used to estimate
pre-feasibility-level costs. We examined five different approaches upon which
evaluators typically rely to estimate mineral development project capital and
operating costs at a pre-feasibility level. In addition to a ground-up approach, we
also used Glacier Resource Innovation Group’s Evaluate, the U.S. Bureau of Mines
Cost Estimating System (CES), an agglomerated, parametric approach centered
around CIM’s Special Volume 47 CapCosts, and InfoMine USA’s Sherpa. Costs
for a single mineral development and exploitation project were estimated
using each method. In addition to tabulating and comparing the estimated costs,
all other information produced by each method is presented to provide insight
into the utility of the overall results. As a consequence, much of the discussion in
this presentation revolves around the overall suite of information provided by each
cost-estimating system and the degree to which this information enhances the
overall project evaluation process.
About the speaker: Mr. Stebbins is a licensed mining engineer who has spent the majority of his 35-year career estimating the costs of proposed mining and mineral processing projects, and then evaluating their economic potential. In addition to authoring the chapter on Underground Mine Cost Estimating and co-authoring the chapter on Surface Mine Cost Estimating in the latest edition of the Society of Mining Engineer’s Mining Engineering Handbook, Mr. Stebbins in the course of his career has developed a series of software products used by both industry and regulatory agencies to estimate the costs of various forms of mining, mineral processing, and reclamation. He has been (and currently is) under contract with CostMine USA, Inc. to develop a method of estimating the costs of mineral development project infrastructure needs.