on October 10, 2007 at 8:05 am | Reply Dave Evans

Another timely article by Jack. Mining should remember that the term “bankable feasibility study”was invented by lawyers who also invent the familiar limitations statements that we see on the bottom of many of today’s press releases about risk and uncertainty in mining exploration, development and production. Something doesn’t compute here.

A BFS, at best, is an expert opinion about a cost estimate, a development schedule and the execution plan for a new or expansion project. And all you know about estimates is that they are wrong and things will change. At worst, it is a factored guess.

Viewers of bankable feasibility studies should ask two questions: One, Bankable by whom? Two, Feasible under what strategic plan, developmental conditions, risks, opportunities and what does the expected outcome really look like?

Use of the term will likely continue as it messages a tidiness and a completion of task. Nothing could be further from the truth.

Dave Evans
Senior Partner
CSC Project Management Services