Ann: Investor Presentation, page-6

Hey Soarer.

I couldnt find figures of average costs of a scoping study. (You could look through old quarterlys for other companies I suppose)
Anyway I am invested in a company right now (APC potash). They are raising capital to complete a DFS and have estimated around 4-5 mìll to complete the job.

A DFS is a considerably more accurate and time intensive study than the scoping study that we will be completing, and this will be less expensive than even a pre feasibility study.

Apparently a Scoping study is typically accurate to 30-35%. A DFS needs to be accurate to around + or -10%. So more work is required, and a good DFS can be used as a big part of a BFS or bankable feasibilty study.

Another way to look at this is that our DFS at Owendale is worth perhaps 1/3 rd of our EV.

Im going to pull a number out and guess at 1.2mill. Because there should be plenty of competion for our dollars. How many mining coys are doing feasiblity studies right now? Spend it wisely C.Nolan, haggle hard.

More info on scoping studies below.
Scoping studies

A scoping study may be carried out very early in the exploration phase, as a basis for acquiring exploration areas or making a commitment for exploration funding. At this stage the investment risk may be relatively small but it is obviously undesirable to expend further funds on something that has no chance of being economic.
The major risk is that a viable mining project is relinquished due to an inadequate assessment. As there is a very low probability of an exploration project proceeding to become a mine it is evident that this risk is quite a serious one at the scoping study stage. For this reason it is essential that experienced people are involved in the scoping study. Estimation accuracy may be 30 to 35%. It is acceptable for scoping studies to be based on very limited information or speculative assumptions in the absence of hard data. The study is directed at the potential of the property rather than a conservative view based on limited information.