AVB 0.00% 16.5¢ avanco resources limited

Scoping Studies

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    To avoid confusion about scoping studies and their merit for use in valuating potential assets heres some substantiated information about them and other studies etc from a professional consultancy firm.

    Scoping studies

    A scoping study may be carried out very early in the exploration phase, as a basis for acquiring exploration areas or making a commitment for exploration funding. At this stage the investment risk may be relatively small but it is obviously undesirable to expend further funds on something that has no chance of being economic.
    The major risk is that a viable mining project is relinquished due to an inadequate assessment. As there is a very low probability of an exploration project proceeding to become a mine it is evident that this risk is quite a serious one at the scoping study stage. For this reason it is essential that experienced people are involved in the scoping study. Estimation accuracy may be 30 to 35%. It is acceptable for scoping studies to be based on very limited information or speculative assumptions in the absence of hard data. The study is directed at the potential of the property rather than a conservative view based on limited information.
    http://amcconsultants.com/experience/feasibility-studies-for-mining-projects/
    Here is AVB's scoping study on the Centro Gold project.  Here is a small but important statement from within the study, on the first page and being the first paragraph under the header :  ASX Chapter 5 Compliance and Scoping Study Cautionary statement.
    The information and production target presented herein is BASED on a scoping study.  A scoping study is a LOW-LEVEL technical and economic assessment and is INSUFFICIENT for the estimation of an ore reserve, assurance of economic development AND for the findings of this report to be REALISED.
    https://www.asx.com.au/asxpdf/20180410/pdf/43t2vtcz199rj0.pdf
    DYOR people



 
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