An exploration strategy for prospecting with a case study on copper prospects at Ingladhal (India)

An approach to prospecting for minerals which quantifies the risk involved in exploration ventures is suggested in this paper. This approach is based on three factors viz., (a) the probability of the occurrence of an economic prospect (P1), (b) the probability of its actual discovery (P2) and (c) the probability that it is of sufficient economic value to compensate costs. An operational equation which takes into account the number of ventures, probability factors P1, P2, P3 and the estimated mining costs for a given region has been employed to assess the likely returns. Three case situations in respect of copper prospects at Ingladhal have been analysed and the probability and pay off ratios have been worked out in each of these situations. In respect of the actual case situation (situation 3), the profitability and the pay off ratios have been found to be approximately equal to 6.3 and 0.22 respectively. A comparison of this study with other similar earlier studies has also been made.