DEFINING AN ECONOMIC TARGET Exploration usually begins with the corporate goal of finding a minimum tonnage and grade of a selected mineral. Sometimes this is expressed more simply as a minimum quantity of contained metal without any indication of the desired grade or implied profitability._x000D_
Such a goal is useful in the selection of exploration areas and the planning of initial drilling programs. However, it should be reviewed as soon as significant mineralisation has been identified. To make rational decisions about exploration expenditure, the potential return from a deposit must be estimated from the outset and re-esti- mated frequently._x000D_
The potential return will depend on: 1. The proportion of mineral which can be economically recovered from the deposit by mining (the mining recovery)._x000D_
2. The quantity of valuable constituent that can be recovered after dilution with waste rock during mining and losses due to incomplete metallurgical recovery._x000D_
3. Expectations of price and markets._x000D_
4. Capital and operating costs applying to the selected mining and processing methods, and to transportation and marketing. Increasingly, environmental costs and constraints must also be considered.