Introduction
Early-stage studies for mining projects often struggle to balance cost, speed, and clarity. For a Queensland gold project with a 32koz defined Mineral Resource, the client needed early direction on whether the asset was worth deeper investment—and they needed it quickly.
Challenge
After releasing the maiden MRE, the client was trying to answer some big questions:
- What’s the right development path for the asset?
- What plant size makes economic sense?
- How big does the resource need to be to meet internal financial metrics?
Traditional concept studies can cost $100k+ and still miss the early directional insights the client actually needed. The risk: spending heavily on detailed engineering without knowing whether the asset had the right fundamentals.
Approach
We saw an opportunity to streamline the process. Instead of a slow, fixed-scope conceptual study, MEC used R2R, our in-house value-driver modelling tool.
Here’s what we did:
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Built the owner economic model in two days using MEC benchmarks, cost databases, and development timelines.
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Worked with the client in a three-hour workshop to test 25 different trade-off scenarios—plant size, cut-off grade, development strategy, resource expansion value, and more.
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Identified the combination that maximised cashflow and clarified the growth pathway for the resource.
The full directional study took five days, cost under $15k, and gave the client exactly the clarity they needed.
Outcome
The client now has:
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A clear plant production rate that maximises value.
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Defined resource growth targets to guide drilling spend.
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An agreed development strategy for moving into PFS.
They are now drilling with confidence and progressing approvals earlier than planned.
Next steps
The client is commencing baseline environmental assessments, initiating EA/PRCP concept design, and preparing to transition into PFS in the new year.
This approach is now part of MEC’s offering for early-stage studies—giving clients fast, low-cost clarity before they commit major capital.