As emerging trends continue to transform the global landscape of mining, more companies are exploring ways to improve efficiency. Which begs the question: How do you unlock value to fuel performance? It starts with credible studies.

A Preliminary Economic Assessment (PEA) study is a crucial part of the mining and exploration process, providing an economic analysis of the potential viability of a project’s mineral resources. It is an important step in determining the viability of a proposed project and identifies the likelihood and impact of risks.

To ensure the accuracy and integrity of scientific and technical information, publicly-listed mining and mineral exploration companies are required to follow specific guidelines for the disclosure of exploration results, mineral resources and mineral reserves.

Guiding a project through defensible project characterization and the subsequent public disclosures to achieve its optimal value is complex and challenging, particularly as it relates to a Preliminary Economic Assessment (PEA).

What companies commonly get wrong in their disclosure:

• Representing the results of the PEA study as something more than what securities regulators consider to be reasonable  
• Failing to have a reasonable basis for the content of a conceptual study: supporting testwork, project definition, capital and operating costs, project timelines, identification of risks to project development
• Misaligning the PEA study with its stated use