The basic principles of mineral valuation were
recognised and propounded at the beginning of this
century and have remained virtually unchanged since
then. Valuation is seen as a two part process
commencing with a technical examination of the mineral
property followed by a manipulation of the results of
the technical examination in order to determine the
monetary value of the project. A thorough and competent technical examination
was seen then and remains now as the essential but not
sufficient foundation for reliable valuation. All authors
stressed the need to maintain the integrity of the data
base and to ensure adequate coverage of all relevant
aspects. The monetary valuation process through most
of the first half of this century was mainly based on the
Hoskold two rate method, derived from the formulae
for valuing annuities but modified to provide explicitly
for recovery of capital. Though the basic principles of valuation have not
changed significantly, the means of implementing the
components of the technical examination, the styles of
deposits being evaluated and the mechanisms of
monetary valuation have changed dramatically. Despite
all the technological improvements, however, mineral valuations are still as apt to vary from realised
performance as at any time in the past. As well, mineral
property valuations are now being extended to cover all
assets of potential value, including valuation of
exploration tenements with or without identified
resources. Valuation of exploration tenements will
continue to be one of the most difficult and contentious of valuation tasks.