108: Processing the Risk: Metallurgy in Mining Due Diligence

In this episode of Fresh Thinking, Dr Tarrant Elkington Snowden Optiro's General Manager, speaks with Dr Leon Lorenzen about the critical role of metallurgical and processing due diligence in mining projects. They explore how process plants are evaluated, why throughput is often a hidden risk, and the challenges of forecasting performance in both operating and new mines. Whether you're reviewing an acquisition or building a new operation, this discussion provides valuable insight into identifying red flags and understanding the real-world complexity behind the numbers. This podcast at a glance: 00:20 – What due diligence really means in a processing context 01:30 – Using the process design baseline to evaluate plant performance 03:00 – Why high recoveries can be misleading without throughput context 04:50 – Common red flags: when ounces look good, but costs and feed rates don't 07:00 – The importance of test work and geological input in forecasting 09:30 – Case study: transition from open pit to underground and its impact on throughput 10:00 – Unique risks with new mines and the ramp-up phase 13:00 – Why expertise and independent evaluation are essential for sound investment decisions If you would like to contact Tarrant and Leon: [email protected] 🔔 Subscribe for more Fresh Thinking about the mining industry. This video podcast is also available as a free video podcast on Snowden Optiro's YouTube channel. Snowden Optiro is a resources consulting and advisory group that provides independent advice, consulting and training to mining and exploration companies, their advisors and investors. We help mine developers to advance their projects, mining companies to improve their operations and their professionals, and investors to de-risk their investments by the provision of quality advice, training and software in the field of Mineral Resources and Mineral/Ore Reserves. Find out more about Snowden Optiro: https://snowdenoptiro.com Professional Development Training: https://snowdenoptiro.com/professional-development/