description of the customer credits if estimated in resource  Demand, supply, and inventories for specifications, testing, and model or assumptions made if based the particular commodity; acceptance requirements. on metallurgical test work. consumption trends and factors likely to affect supply and demand in the future, resulting in commodity profiles.  Demonstration that the price assumptions are reasonable and supportable. Justification of assumptions made  concerning production cost and value of product at sale point. Transportation, marketing,  processing, and other costs or losses should be considered. Consideration of order of magnitude Detailed cash flow analysis for the life 2. Cash Flow Analysis Generally not applied.    capital cost, operating costs, and of the project, including a summary of revenue to indicate reasonable taxes, royalties, and government prospects of eventual economic levies. extraction. Sensitivity analysis and simulations of  risk related to grade, prices, capital costs, and operating costs, and any additional significant variables.  Discount rate, internal rate of return, payback period and metrics. See 2 of the SME Guide in See Table 2 of the SME Guide in 3. Study Accuracies Preliminary Studies often applied    reference to Scoping Studies that reference to Pre-Feasibility and to justify exploration targets. might be used to support a Mineral Feasibility Studies that are used to Resource statement. support a Mineral Reserve statement. J. Risk and Opportunity Analysis Sufficient risk assessment completed Project technical, social,   Generally not applied.  to confirm reasonable prospects of environmental, and economic risk in High-level risk and opportunities  eventual economic extraction. the form of a risk register describing reviewed. likelihood of occurrence and cost. Resource enhancement opportunities. 
description of the customer specifications, testing, and acceptance requirements. credits if estimated in resource model or assumptions made if based on metallurgical test work.  Demand, supply, and inventories for the particular commodity; consumption trends and factors likely to affect supply and demand in the future, resulting in commodity profiles.  Demonstration that the price assumptions are reasonable and supportable.  Justification of assumptions made concerning production cost and value of product at sale point.  Transportation, marketing, processing, and other costs or losses should be considered. 2. Cash Flow Analysis  Generally not applied.  Consideration of order of magnitude capital cost, operating costs, and revenue to indicate reasonable prospects of eventual economic extraction.  Detailed cash flow analysis for the life of the project, including a summary of taxes, royalties, and government levies.  Sensitivity analysis and simulations of risk related to grade, prices, capital costs, and operating costs, and any additional significant variables.  Discount rate, internal rate of return, payback period and metrics. 3. Study Accuracies  Preliminary Studies often applied to justify exploration targets.  See 2 of the SME Guide in reference to Scoping Studies that might be used to support a Mineral Resource statement.  See Table 2 of the SME Guide in reference to Pre-Feasibility and Feasibility Studies that are used to support a Mineral Reserve statement. J. Risk and Opportunity Analysis  Generally not applied.  High-level risk and opportunities reviewed.  Sufficient risk assessment completed to confirm reasonable prospects of eventual economic extraction.  Resource enhancement opportunities.  Project technical, social, environmental, and economic risk in the form of a risk register describing likelihood of occurrence and cost.
SME_Guide_20Aug2017.docx