6. Techniques Applied to the Financial Evaluation of Exploration-Type Agreements - Overview

In this chapter, a review is made of the various stages of an exploration program, mineral rights acquisition methods and the partners involved in an agreement, the after- tax cash flow approach using present value discounting principles, the establishment of computerized financial models for assistance during the negotiating stages for a mineral property, and the various evaluation techniques and their specific applications during different phases of an exploration program. A set of examples is shown encompassing the initial target-seeking stages to the ultimate feasibility study stage.