The
transition from exploration to feasibility is a stage in the development of
mineral resource projects that is frequently not handled well. The transition
marks a point in the project development process where resource evaluation
priorities change significantly from the discovery of mineralisation and the
rapid assessment of the potential tenor of the mineralised system, to the
detailed assessment of the deposit.

Information used in the
exploration process tends to be of a qualitative or theoretical nature
initially, but gradually becomes more quantitative in character as geological
knowledge relating to individual prospects grows.

The
transition from discovery and rapid exploration of a new deposit occurs at a
relatively early stage in project development, coinciding with the first attempt
to prepare a resource estimate for the deposit. Fundamental assumptions
regarding both structural and grade continuity and uncertainty inherent in
existing information need to be made so that they themselves may be addressed
during the collection of additional data.

The
effective commencement of feasibility studies involve the introduction of new
accountabilities either as a result of appointment of a project manager, and
through needing to be able to quantify:
the quality of data
being collected for resource evaluation purposes;

confidence associated
with resource estimates; and

the need to develop an
audit trail for the project, required to make the resource evaluation
decision-making process as transparent as possible.

Quality assurance is a
concept to which exploration geologists have frequently had little exposure.
Being able to demonstrate the quality of data used in feasibility studies is,
however, a crucial component of the overall risk management and reduction.

Development of a
transparent audit trail for data assists in demonstrating the quality of data
which is frequently perceived to translate directly to confidence inherent in
resource estimates.

Establishing procedures
for geological data collection and management also provides a more reliable
framework for making decisions that impact on project execution, again resulting
in improved confidence in resource estimates and associated geoscientific
data.

Regular, independent
technical audits, in principle similar to audits conducted for the ongoing
certification of standards compliant quality assurance systems, are a major,
positive factor in effective project management and execution.

Information used in
project evaluation, feasibility and development must be based on facts. Facts
are effectively observations that are ideally made systematically, recorded in a
systematic manner, and by being collected effectively are not subject to
change.

Effectively managing
the transition from exploration to resource evaluation, feasibility and project
development involves recognising the nature of changes in the nature, detail and
scope of geoscientific data required at each stage of project development. In
doing so it is essential to:

recognise when the
change occurs (as early as preparation of the initial resource estimate for a
project);

accept that the change
may not be gradual; and,

ensure that the project
evaluation team is adequately resourced.

These objectives
require recognition of the value of previous experience and the need to instill
a true team approach amongst both staff and contractors associated with the
project. Regular formal and informal communications between staff, contractors
and other stakeholders in the project are an essential tool in ensuring
personnel are aware of factors affecting their role in the
project.