Mining Studies · Stage 1
Scoping studies
An order-of-magnitude assessment — also called a preliminary economic assessment (PEA) — that tests whether a project concept is worth pursuing, screening mining options and indicating potential value before significant capital is committed.
Stage 1 · ±30–50% accuracy
The first economic look at a deposit
A scoping study — commonly called a preliminary economic assessment — is the first stage at which a Mineral Resource is tested against conceptual mining, processing and cost assumptions. It is built largely on factored estimates, benchmarks and engineering judgement rather than detailed design.
Its job is not to be precise; it is to be decisive. A good scoping study tells you quickly and cheaply whether a project has the potential to be economic, which options to carry forward, and where value and risk really sit.
Spend a little to learn a lot: a scoping study is the cheapest place to kill a bad idea — or to confirm one worth backing.
Scope
What a scoping study typically covers
Resource basis
Uses Inferred and higher Mineral Resources to frame the conceptual mining inventory.
Mining concept
Open pit or underground method selection and a conceptual mine layout.
Indicative schedule
A high-level production profile to size the operation and its cash flows.
Factored costs
Order-of-magnitude capital and operating costs from benchmarks and analogues.
Economic indicators
Preliminary NPV, IRR and payback to gauge potential viability.
Options & risks
The key value drivers, fatal flaws and the work needed at the next stage.
Outcome
What you get at the end
- A concise scoping study report documenting assumptions, methods and results
- Comparison of mining options carried through to a recommended concept
- Order-of-magnitude economics with the principal sensitivities identified
- A clear recommendation on whether to progress to a pre-feasibility study
- A scope of work and budget for the next stage of study
FAQ
Scoping studies, answered
What is the difference between a scoping study and a PFS?
A scoping study is an order-of-magnitude technical and economic assessment (typically plus or minus 30 to 50 per cent accuracy) built on factored estimates and a conceptual mine plan. A PFS develops engineered quantities (about minus 15 to plus 25 per cent), compares development options, addresses the JORC modifying factors and can support a maiden Ore Reserve. In short: a scoping study decides whether to keep spending; a PFS decides how.
What is included in a scoping study?
A typical Go Engineering scoping study covers a conceptual mine design and production schedule, factored capital and operating cost estimates, preliminary processing and metallurgical assumptions, an economic model with sensitivities, and a ranked risk register with the recommended work program for the next stage — the concept-level deliverables described in the AusIMM Study Processes Handbook.
Is a scoping study the same as a preliminary economic assessment?
In practice yes. Scoping study, preliminary economic assessment (PEA) and conceptual study all describe the first order-of-magnitude economic evaluation of a Mineral Resource. Under the JORC Code such results must be reported with a cautionary statement making the conceptual nature of the assessment clear.
Can a scoping study be used to declare an Ore Reserve?
No. The JORC Code 2012 requires at least a pre-feasibility study, with the modifying factors assessed, before Mineral Resources can be converted to Ore Reserves — and production targets based solely on Inferred Resources carry strict ASX reporting restrictions.
Sources: JORC Code 2012 (jorc.org) · AusIMM Study Processes Handbook — Monograph 35 (2024)
Next steps
Where to go from here
Is the concept worth pursuing?
Tell us the deposit and the decision you are working towards, and we will scope an order-of-magnitude assessment.