Financing and Evaluation of
Auriferous Projects

Our country is a producer of prime material by excellency. The mining industry is a main source of entry of foreign currencies since 1960 it represented over 40 percent.

For the financing of the diverse productive industries there is what is denominated as banking development and in the case of mining it was created by the State, the Mining Bank of Peru.

The banking developments use their own funds, negotiate external financing lines or do financial intermediation with national and international organisms.

The depreciation in prices in the mid 80’s caused a great amount of deterioration in a number of Peruvian mining companies, especially in those denominated as smaller mining and this brought along paralyzation in a lot of mines due to their high financial load and their mineral value that did not pay the cost of operation.

At the same time, the traditional foreign finance lines cut their payments to the financial intermediaries and finally the mining industry found itself without sources of funding.

Financing of new projects of investment suffered a halt and the credit lines for credit investment projects and for risk projects practically did not exist anymore.

We will also analyze the techniques of evaluation of mining projects placing emphasis on auriferous projects.

We will also look into the development of techniques of risk analysis and profitability by using micro informatics. We will also comment on some important auriferous projects that have taken place in the past. Keep in mind that the opinions expressed are at personal title. Therefore it will be necessary to verify the criteria used for the calculus of reserves, samplings, dilution, height of blocks, factors of security and other criteria of risk evaluation of reserves.

With the tenors obtained in the proof sampling, the statistic confrontation of results should be carried out and this should comprise of the comparison of variables applied as well as comparison of measures applied to a normal distribution table.

These comparison tests will allow you to confirm or modify the results of reserve calculus.

It is suggested that if the evaluator has knowledge of geo statistics to apply certain controls such as for example: calculus of variables of estimation or other geo statistic tools.

Then the actual mining operation needs to be analyzed, as well as the metallurgy of the mind, the recovery and the rhythm of production. You will need to calculate the mineral value, operation costs, financial statements, guarantees and the financial situation of the company, to then go onto an economic – financial situation and to the analysis of sensibility if it were possible.