Assessing value made easier

摘要

A leading resources sector consultancy has come up with a probability-based approach to risk assessment for exploration which emphasises uncertainties and probability rather than absolute values. The methodology has already been successfully used for a range of activities in Australia, including field program reviews, assessing geological risk factors as well as evaluating mineral targets. Integrated science and engineering specialists SRK Consulting believes a key part of developing ore deposits is to assign probabilities of success" at each stage of the exploration process. According to senior consultant Deborah Lord, adopting this approach gave mineral explorers the chance to calculate the expected value of an individual prospect as it passed through the different phases of exploration (reconnaissance work, drill testing, resource definition and feasibility).