is a technical study of the potential economics of a mining project that includes the size of the resource, the grade of the material, the mineability of the material, the metallurgy and recovery methods of recovering the valuable minerals, and a comprehensive study of all of the attributes of the potential projects including risks and opportunities in the project. The pre-feasibility study is usually completed by an independent engineering group and makes a forecast of potential capital, operating, sustaining capital, and reclamation costs for the project. The pre-feasibility study also includes a projected cash flow from the project using recovery rates for the metal from the metallurgical test work concluded and assumptions on future metal prices, exchange rates and economic conditions.
The pre-feasibility study, conducted during the identification phase, ensures that all problems are identified and alternative solutions are appraised, and se-lects a preferred alternative on the basis of Quality Factors. The study provides the donor and partner government with sufficient information to justify acceptance, modification or rejection of the proposed project for further appraisal.