Mining Exploration Business Valuation Simulations with Global VMS Deposits Database

Bell, Peter (2025): Mining Exploration Business Valuation Simulations with Global VMS Deposits Database.

Abstract

This paper presents an example of simulating financial economics for a mining exploration project based on stylized assumptions and real global data. The data comprise all the volcanogenic massive sulphide deposits of the world, according to a 2009 public report from the United States Geological Survey, which contains a database of grade and tonnage models for such deposits. The grade and tonnage parameters help estimate the gross metal value of the deposits, according to some simplifying assumptions. The paper further makes assumptions about the costs and benefits of finding each deposit in the global database. Then it calculates the distributions of economic returns for different approaches to the mining exploration business.

• Item Type: MPRA Paper
• Commentary on: Bell, Peter N (2015): Mineral exploration as a game of chance.
• Language: English
• Keywords: Engineering Economics, Mining, Royalties, Finance
• Subjects: C - Mathematical and Quantitative Methods > C0 - General; G - Financial Economics > G0 - General; L - Industrial Organization > L7 - Industry Studies: Primary Products and Construction; L - Industrial Organization > L7 - Industry Studies: Primary Products and Construction > L72 - Mining, Extraction, and Refining: Other Nonrenewable Resources

References

Bell, Peter N, 2015. "Mineral exploration as a game of chance," MPRA Paper 62159, University Library of Munich, Germany.

Mosier, D.L., Berger, V.I., and Singer, D.A., 2009, Volcanogenic massive sulfide deposits of the world; database and grade and tonnage models: U.S. Geological Survey Open-File Report 2009-1034 [https://pubs.usgs.gov/of/2009/1034/].