In order to evaluate gold mining projects, the economist needs complete and exhaustive examination of key aspects such as entailing extensive sampling, gold assays, and metallurgical tests. This task is very expensive and requires time. An unfavorable report usually means to the shareholders absolute loss of the technical team fee and expenses. It becomes then the initial duty of the latter to determine at once, by the general conditions surrounding the property, how far the expenditure for exhaustive examination is warranted. There is usually named a money valuation for the property, and thus a peg is afforded upon which to hang conclusions. Very often collateral factors, with a preliminary sampling, or indeed no sampling at all, will determine the whole business.
In fact, it is becoming very common to send younger engineers to report as to whether exhaustive examination by more expensive men is justified. In the course of such preliminary inspection, the gold deposit may prove to be too small to insure adequate yield on the price, even assuming continuity in depth and represented value. They may be so difficult to mine as to make costs prohibitive, or they may show strong signs of petering out. The ore may present visible metallurgical difficulties which make it unprofitable in any event. A gold ore may contain oxide copper minerals or arsenic, so as to exclude cyanidation, where this process is the only hope of sufficiently moderate costs. A silver-gold ore may be an amorphous compound with pyrite, and successful concentration without great penalties may be precluded. A gold-copper ore may carry a great excess of oxidation and be at the same time difficult to treat by flotation.
The gold mine may be so small or so isolated that the cost of equipment will never be justified. Some of these conditions may be determined, assuming a given value for the gold ore, and may warrant the rejection of the mine at the price set. It is a disagreeable thing to have a disappointed evaluator as head because he did not make an exhaustive examination. Although it is generally desirable to do some sampling to give assurance to both purchaser and vendor of conscientiousness, a little courage of conviction, when this is rightly and adequately grounded, usually brings its own reward. Supposing, however, that conditions are right and that the mine is worth the price, subject to confirmation of values, the determination of these cannot be undertaken unless time and money are available for the work. As was said, a sampling campaign is expensive, and takes time, and no engineer has the moral right to undertake an examination unless both facilities are afforded.
The time required to properly sample a mine is obviously a question of its size, and the character of its ore is an impart part of the work. A geologist and one principal assistant can conduct two sampling parties. In hard rock it may be impossible to take more than five samples a day for each party. But, in average ore, ten samples for each is reasonable work. As the number of samples is dependent upon the footage of openings on the deposit, a rough approximation can be made in advance, and a general idea obtained as to the time required. This period must be insisted upon and carefully studied.