Issue link: http://resourceworld.uberflip.com/i/638235
26 www.resourceworld.com f e b r u a r y / m a r c h 2 0 1 6 T he phased-approach to mine devel- opment is a proven business model which de-risks stakeholder invest- ments before committing significant capital to a mining project. Stakeholders include shareholders, investors, local communities, government institutions, company employ- ees and management. The strategy is to explore and build a mine in phases in the least amount of time with upfront invest- ment dollars with subsequent investment based on continued success. Success means responsible de-risking of the project and demonstrated economic viability which warrants further investment. This is not a new approach, but one that needs to be resurrected as spending exces- sive capital on high-risk mining projects needs checks and balances, like any other industry, in order to convince investors to participate by minimizing their invest- ment risk. A recent review of specific articles from 1890 to 1920 concerning mine construc- tion and production for a silver district in Mexico outlines a phased-approach case history. A company was seeking invest- ment for mine and mill construction but was unable to secure sufficient funds to go into production. They decided on a phased-approach. This meant limited underground mining and hand sorting of high-grade silver and gold ore with direct shipment to a smelter. Profits from this small production were reinvested into the mine and production growth over a number of years enabled the construction of infrastructure, a mill and mine expansion. After several years of expansion, the company commenced issuing dividends to its shareholders, dis- tributing the wealth to all stakeholders. The district went on to produce over 150 million ounces of silver and gold equiva- lent, most of which would have not been possible without this phased-approach. A recent case history for a successful phased-approach to development is the Santa Elena Mine in Sonora, Mexico under the direction of SilverCrest Mines Inc. I was the Chief Operating Officer, President Phased-approach to mine development a proven business model for risk reduction by N. Eric Fier, CPG, P.Eng., President & CEO of SilverCrest Metals Inc.