EM2-1 Flashcards by Gregorio Mahinay III

Which of the following should be present in the Executive Summary of a Feasibility Study?
a. brief historical background
b. brief geology of the deposit
c. introductory information
d. essential conclusions and introduction

d. essential conclusions and introduction

How well did you know this?

Not at all

Perfectly

It refers to the resources of economic value owned by business entities which are used in generating income from operations.
a. overhead
b. management
c. interest
d. assets

d. assets

How well did you know this?

Not at all

Perfectly

The value of real estate owned by a mining company is reflected in the annual_______.
a. Cash flow statement
b. Profit and loss statement
c. Statement of Assets and Liabilities
d. All of these

c. Statement of Assets and Liabilities

How well did you know this?

Not at all

Perfectly

It is a grade at which the mineral extracted result into maximum profit.
a. Brea-even cut-off grade
b. Assay Value
c. Optimum cut-off grade
d. All of these

c. Optimum cut-off grade

How well did you know this?

Not at all

Perfectly

An exhaustive evaluation of a mining project shows among others the following: reserves of 100 million tons mineable by open pit at a stripping ratio of 1:1; copper grade of 1%; 100 million dollars of capital investment needed; and a net present value of minus ten million dollars. What will you recommend?
a. acquire the mine
b. reject the property
c. do further studies
d. none of the above

b. reject the property

How well did you know this?

Not at all

Perfectly

When mining luzonite and enargite, Lepanto’s copper concentrate had to be roasted to remove the:
a. Sulfur oxides
b. Sulfur
c. Mercury
d. Arsenic

d. Arsenic

How well did you know this?

Not at all

Perfectly

A project with a very high debt-to-equity ratio is one that is:
a. highly liquid
b. highly profitable
c. highly leveraged
d. none of these

c. highly leveraged

How well did you know this?

Not at all

Perfectly

Which of the following can only be found in highly arid regions?
a. Salt domes
b. Limestone
c. Coal
d. All of these

a. Salt domes

How well did you know this?

Not at all

Perfectly

A hardwood timber is used as post to support and average load of 20,000 lbs., 5 feet high. If the timber has a compressive stress of 900 psi, what would be the ideal size of timber post most economical for the purpose?
a. 8 x 6 inches
b. 8 x 10 inches
c. 4 x 6 inches
d. 6 x 6 inches

c. 4 x 6 inches

How well did you know this?

Not at all

Perfectly

Philex Mining purchased belt for its cablebelt haulage system at its Padcal Mine in Benguet. Each belt is wound on separate coils for easy handling and transport. If each set of coil is wound on a wooden core 61.0 cm in diameter and the final coil diameter is 3.0 meters, what is the total length of the conveyor belts purchased by Philex?
a. 1016 meters
b. 1116 meters
c. 1216 meters
d. 1316 meters

a. 1016 meters

How well did you know this?

Not at all

Perfectly

How will you best position your holes to explore a deposit that lies horizontally?
a. Inclined at steep angle
b. Inclined at shallow angle
c. Horizontal
d. Vertical

d. Vertical

How well did you know this?

Not at all

Perfectly

A 4-D optimization software in mine planning produces which the following?
a. mineable reserve
b. stripping ratio
c. economic analyses (DCF-ROI, payback period, etc)
d. All of the above

d. All of the above

How well did you know this?

Not at all

Perfectly

Which of the following study is required before a final investment decision is made?
a. Conceptual feasibility study
b. Detailed feasibility study
c. Preliminary feasibility study
d. Scoping study

b. Detailed feasibility study

How well did you know this?

Not at all

Perfectly

A foreign company wishes to explore a new mining project, which of the following political risks must be taken into consideration?
a. Insufficiency of data
b. Marketability of product
c. Selling price of product
d. Threat of nationalism

d. Threat of nationalism

How well did you know this?

Not at all

Perfectly

Mine design can be done by hand or by using a Computer Aided Design (CAD) system. Which of the following describes the reason why this software is extensively used in the industry?
a. It is a popular choice in the industry
b. It facilitates the designing process
c. It automatically corrects wrong data
d. It can substitute management decisions

b. It facilitates the designing process

How well did you know this?

Not at all

Perfectly

What gas naturally occurring in coal mines is now being tap for power generation?
a. Carbon monoxide
b. Methane
c. Carbon dioxide
d. None of these

b. Methane

How well did you know this?

Not at all

Perfectly

What does breakeven mean?
a. negative profit
b. positive profit
c. zero profit
d. windfall profit

c. zero profit

How well did you know this?

Not at all

Perfectly

It is the simple, or average, rate of return if the project.
a. Accounting rate of return
b. Discounted cash flow rate of return
c. Return on assets
d. Internal rate of return

a. Accounting rate of return

How well did you know this?

Not at all

Perfectly

It is the main acceptable rate of return that vary from company to company.
a. Hurdle rate
b. Internal rate of return
c. Cash flow
d. Net present value

a. Hurdle rate

How well did you know this?

Not at all

Perfectly

Which of the following is not a variable cost?
a. raw material
b. royalty
c. fuel
d. depreciation

d. depreciation

How well did you know this?

Not at all

Perfectly

The results of an Induced Polarization (IP) survey in a pyritic copper deposit need to be validated by other surveys primarily because:
a. geophysical surveys are not as reliable as geochemical surveys
b. IP surveys are unreliable
c. pyrite and chalcopyrite have similar responses in an IP survey
d. all of these

c. pyrite and chalcopyrite have similar responses in an IP survey

How well did you know this?

Not at all

Perfectly

The 1987 Philippine constitution makes it possible for fully-owned foreign companies to participate in the Philippine mining industry through a:
a. Mineral Production and Sharing Agreement
b. Financial or Technical Assistance Agreement
c. Service Contract
d. Mineral Agreement

b. Financial or Technical Assistance Agreement

How well did you know this?

Not at all

Perfectly

What was the main reason behind the legislation of the IPRA law?
a. Economically support NGOs that promote indigenous people
b. Provide jobs for indigenous people
c. Prevent mining in ancestral lands
d. Promote the rights of indigenous people

d. Promote the rights of indigenous people

How well did you know this?

Not at all

Perfectly

It refers to the actual number of years that an asset is kept and maintained.
a. Depletion
b. Service life
c. Economic life
d. Obsolescence

b. Service life

How well did you know this?

Not at all

Perfectly

Which of the following is the most effective scheme to make methane in a coal mine an asset? a. When it is left underground b. When it is extracted and used in power plants c. When it is extracted and released into the atmosphere before mining is done, thus preventing gas explosions d. When it is flared ad converted into carbon dioxide

b. When it is extracted and used in power plants

What is the maximum area of a quarry permit? a. 20 hectares b. 81 hectares c. 5 hectares d. 4 hectares

c. 5 hectares

It emits the least amount of greenhouse gas when used in a power plant. a. Oil b. Natural Gas c. coal d. Uranium

d. Uranium

It refers to the present worth of future earnings less the present value of expenditures needed to bring a mine in operation: a. Mine valuation b. Present value c. Positive profit d. Purchase price

c. Positive profit

It is commonly found in an ultramafic environment. a. Chromite b. Chalcopyrite c. Hematite d. All of these

a. Chromite

Why should you quit your job if your employer is engaged in activities detrimental to public interests, such us bloating ore reserves to push the stock market upwards? a. To avoid involvement in controversy b. To ensure solid public relations c. Because it is the right thing to do d. To avoid criticism from peers

c. Because it is the right thing to do

Which of the following is a web browser? a. Opera b. Safari c. Microsoft Edge d. all of the above

d. all of the above

Which sector of the mining industry will be most adversely affected by a strict implementation of the Kyoto Protocol? a. base metals b. precious metals c. coal d. industrial minerals

c. coal

Which of the following is an incentive that enables mining companies to reduce their tax liabilities? a. Accounting depreciation b. Accumulated depreciation c. Accelerated depreciation d. None of these

c. Accelerated depreciation

It refers to the ratio of earnings from an investment and the amount invested for a specified period. a. equity ratio b. interest ratio c. quick ratio d. current ratio

b. interest ratio

The angle which a certain line makes with the meridian, measured clockwise is called? a. Meridian b. True meridian c. Bearing d. Azimuth

d. Azimuth

Which of the following is not an operating system? a. iPhone X b. Windows 10 c. MacOS Big Sur d. Linux

a. iPhone X

It is a n instrument used to calculate the area of a cross-section of an ore body or areas bounded by topographic contours. a. Planimeter b. Transit c. Pantograph d. GPS instrument

a. Planimeter

It is a government tax paid by operators upon the extraction of mineral products. a. excise tax b. income tax c. value added tax d. mine waste and tailings tax e. tax credits

a. excise tax

What is the area covered by one (1) meridional block used in designating exact geographical locations of mineral claims to avoid overlapping? a. 51 has. b. 81 has. c. 71 has. d. 91 has.

b. 81 has.

An LHD machine worked 500 hours a month, was under repair for 100 hours, and on stand-by for 50 hours. What was the shovel’s physical availability? a. 83.3% b. 84.6% c. 76.9% d. 90.9%

b. 84.6%

The annual investments that a company make is known as _____. a. OPEX b. EBIT c. EBITDA d. CAPEX

d. CAPEX

If P6,500 will be needed after 5 years, how much should be invested now if the interest rate is 7.5% per annum compounded annually? a. P4,062.53 b. P4,527.63 c. P4,253.63 d. P4,657.83

b. P4,527.63

What is the minimum depth of a vertical shaft that has to be driven to reach a 45 degree dipping orebody which outcrops at elevation 1,400 meters, if the shaft collar is located about 100 meters from the outcrop (measured horizontally) but an elevation of 1,380 meters? a. 70 meters b. 80 meters c. 50 meters d. 60 meters

b. 80 meters

Formerly low grade non-commercial gold deposits have become viable in spite of lower gold prices mainly because of: a. additional government incentives b. technological advances c. increased global demand d. all of the above

d. all of the above

What is the cost of raising money by borrowing, or issuing bonds? a. Financial cost of capital b. Opportunity cost of capital c. Economic cost of capital d. Shadow cost of capital

a. Financial cost of capital

What is the study that should be submitted to support a loan application? a. pre-feasibility study b. bankable feasibility study c. technical feasibility study d. cost estimate

b. bankable feasibility study

All operating costs other than cost of raw materials and direct labor. a. Semivariable costs b. Total costsss c. Variable cost d. Overhead cost

d. Overhead cost

Which of the following describes the main reason behind the decline of the Philippine coal mining industry? a. It has not been able to compete against cheaper imported coal b. Government incentives are inadequate c. The market has declined d. None of these

a. It has not been able to compete against cheaper imported coal

Which of the following is the most widely used mine planning software applied in pit optimization? a. Gemcom b. Datamine c. Whittle 3D or 4D d. Lerch Grossman (standard)

c. Whittle 3D or 4D

You manage a small high grade (3%) copper operations at a capacity of 100 short tons per day at 300 days per year. Your mill recovery is 90% and your selling price is US $ 1.00 per pound of copper net of smelter charges. If your fixed costs total 30 million pesos per year what should you average annual variable cost per ton to be in order to break even, assuming 40 pesos per dollar? a. 2160 pesos per ton b. 1160 pesos per ton c. 2000 pesos per ton d. 1000 pesos per ton

b. 1160 pesos per ton

In the valuation of a mine, which of the following information is the least relevant? a. capital and operating cost b. general geology c. metal prices d. mineable reserves

b. general geology

Which of the following coal ranks has the highest moisture content? a. Anthracite b. Lignite c. Sub-bituminous d. Bituminus

b. Lignite

Heritage Holdings Ltd. Declared stock options for all its mining engineers during its stockholders meeting in 1995 at a price half the par value of Ρ 10.00 per share. The mine Superintendent purchased 1,000 shares of stock at said price option. Three (3) years later, he sold all his shares of tock at Ρ 15.00 per share. How much profit (before tax) did he realize? a. P 5,000.00 b. P 10,000.00 c. P 15,000.00 d. P 20,000.00

b. P 10,000.00

Which of the following accurately describes non-cash cost? a. Depreciation b. Administrative c. Taxes and Royalties d. Marketingss

a. Depreciation

Which method of evaluating a mining venture does NOT consider the time value of money? a. accounting rate of return b. discounted cash flow c. internal rate of return d. net present value

a. accounting rate of return

What strategy was established by the government to make renewable energy appealing to investors in power generation? a. Wholesale electricity spot market d. Feed-in-tariff together with RPS, Green Energy option, Net-metering c. Bilateral contracts d. Build-operate-transfer

d. Feed-in-tariff together with RPS, Green Energy option, Net-metering

On which quadrant is a 30-degree azimuth located? a. first quadrant b. second quadrant c. third quadrant fourth quadrant

c. third quadrant

Which of the following rank of coal can be turn into smokeless and colorless briquette by a simple mechanical process? a. Anthracite b. Lignite c. Sub-bitumunus d. Bituminous

a. Anthracite

Which of the following are not advantages of computerization that a mining engineer can get? a. speed and convenience b. accuracy and reliability c. views in two and three dimensions d. None of the above

d. None of the above

It refers to the resources of economic value owned by business entities which are used in generating income from operations. a. Management b. Overhead c. Interest d. Assets

d. Assets

Which of the following geological rock formation will you rule out the presence of a coal seam? a. Shale b. Sandstone c. Limestone d. Diorite

d. Diorite

Which of he following coal properties is not shown in a proximate analysis? a. Ash content b. Ash analysis c. Moisture content d. Calorific Value

b. Ash analysis

What is the main document that needs to be submitted and approval prior to the issuance of an Environmental Compliance Certificate in an environmentally-critical area? a. Concession Application b. Project Description c. Environmental Impact Statement d. None of these

c. Environmental Impact Statement

When determining the total cash flow from operations during the year, depreciation is: a. Added to the net income b. Subtracted from net income c. Disregarded d. None of these

a. Added to the net income

Under PMRC guidelines, what would you classify the results just after the completion of closely spaced drilling in a porphyry copper deposit? a. mineral reserve b. indicated mineral resource c. inferred mineral resource d. proved mineral reserves

d. proved mineral reserves

Under the local Government Code, who approves small scale mining permits? a. MGB Regional Director b. Provincial Governor c. Municipal Mayor d. DENR Secretary e. President

c. Municipal Mayor

Which of the following aspects of a mining system should a mine superintendent prioritize to avoid explosion in a gassy coal mine? a. Drilling and blasting system b. Mining method c. Transportation system d. Mine ventilation system

d. Mine ventilation system

Which of the following is used primarily in the drilling business to prevent blow-outs because it is a heavy inert material? a. bentonite b. Fuller's earth c. Barite d. fluorspar

c. Barite

Which qualities should a Filipino mining engineer have to be globally competitive? a. computer literate b. proficient in English c. technically competent d. all of these

d. all of these

What do you call the survey instrument that uses a plane table installed on a tripod with a transit that directly plots actual distances and bearings of survey stations? a. theodolite b. direct reading Brunton compass c. global positioning system or GPS d. clinometer e. plane table and alidade

e. plane table and alidade

Which of the following is excluded in determining a company's EBITDA? (Earnings before income tax, depreciation and amortization) a. Amortization b. Income tax c. Depreciation d. All of these

d. All of these

Why are large hole diameters preferred in drilling for evaluation purposes? a. It is more rapid b. It leads to higher core recovery c. It is less costly d. None of these

b. It leads to higher core recovery

Which of the following is an input device? a. Printer b. Keyboard c. Monitor d. All of the above

b. Keyboard

It is a system that allows owners of private generators to operate their plants during power situation. a. BOT b. Feed-in-tariff c. Interruptible load program d. Portfolio standards

c. Interruptible load program

What was the main reason for the shutting down of the Benguet-Dizon Copper Mine? a. the mineable ore reserves mineable by open pit have already depleted b. concerns associated to labor rights c. lahar flows due to nearby volcano d. concerns associated to indigenous rights

a. the mineable ore reserves mineable by open pit have already depleted

Which of the following bet describes the net present value of a mine? a. The sum of all future net earnings b. The difference between net gross income and operating cost c. The difference between the total investments and future net cash flows discounted over time d. None of these

c. The difference between the total investments and future net cash flows discounted over time

Which of the following improves the marketability of a low-ranking coal? a. High Moisture b. Ultra low sulfur content c. Low heating value d. High hardgrove index

d. High hardgrove index

What type of coal is used primarily for its heating value? a. Metallurgical coal b. Steaming coal c. Coking coal d. None of these

b. Steaming coal

Which of the following can affect the feasibility of a metal mine? a. volume and grade of reserves b. capital and operating costs c. metal prices d. all of these

d. all of these

Large multinational companies often hire well known political analysts as consultants to evaluate country risks. What do they focus on? a. geology b. overall political stability c. world metal prices and demand d. none of these

b. overall political stability

Which of the following is a variable cost in a mining operation? a. Milling b. Security c. Medical d. Safety administration

a. Milling

What best measures the total value of a mine? a. Net present value b. Total reserves c. Total cash flows d. Total production

a. Net present value

What is the reference point in reading an azimuth? a. north-clockwise b. south-clockwise c. north-counterclockwise d. south-counterclockwise

b. south-clockwise

Which of the following is otherwise known as the toxic substances, hazardous and nuclear waste control act of 1990? a. RA 7979 b. RA 6969 c. RA 4274 d. PD 463

b. RA 6969

It refers to the continuous compounding of earned interests and principal at any given time. a. Continuous compounding b. Simple compounding c. Discrete compounding d. None of these

a. Continuous compounding

What is the highest rank of coal? a. Anthracite b. Lignite c. Bituminous d. Sub-bituminous

a. Anthracite

In FTAA, a foreign company's beneficial ownership of a mining operation is allowed up to ______. a. 40% b. 60% c. 100% d. None of these

c. 100%

In a feasibility study, the quantitative effects of varying factors such as metal prices, mine capacities, operating costs, capital costs, on the overall feasibility of the project are often shown. What is the process of determining such relationships called? a. environmental scan b. sensitivity analysis c. pre-feasibility study d. none of these

b. sensitivity analysis

What is an office-wide interconnection of computers is called? a. LAN b. WAN c. Global internet d. Gateway

a. LAN

What cost item must now be internalized and made part of the operating cost to reflect the company's commitment to sustainable development? a. environmental protection costs b. taxes c. government royalties d. depreciation

a. environmental protection costs

Which of the following is not a geophysical method of exploration? a. gravity survey b. magnetic survey c. seismic survey d. none of these

d. none of these

What type of analysis is used to evaluate a project that takes into consideration variables that affect investments but cannot be quantified? a. Sensitivity b. Financial c. Intangible d. Economic

c. Intangible

Who is ultimately responsible for the financial statement about a mine? a. Chief Executive Officer b. Chief Accountant c. Chief Financial Officer d. Board of Directors

b. Chief Accountant

Which of the following is the most important use of computer in a mine? a. Increases reserves b. Substitute for human judgement c. Facilitate repetitive work d. None of these

c. Facilitate repetitive work

Why is drilling done only after conducting other operations such as geological mapping, geochemical surveying and geophysical surveying? a. Drilling takes longer time to complete b. Drilling is much more costly than other methods c. Drilling is environmentally intrusive d. All of these

b. Drilling is much more costly than other methods

How much is the occupation fee for mineral reservations? a. P500.00 per ha b. P400.00 per ha c. P250.00 per ha d. P100.00 per ha

d. P100.00 per ha

You have been tasked to evaluate an old mine using a modern mine valuation software? How ill you handle old data? a. Discard all of them as they are no longer compatible with your device b. Do a separate manual evaluation using old data c. Digitize relevant and useful data so they can be utilized d. Do all of these

c. Digitize relevant and useful data so they can be utilized

What is the agency set up by government, civil society, and the private sector to promote transparency in reporting payments to government by mining companies? a. BIR b. EITI c. COA d. MICC

b. EITI

Which of the following process typically leads a high grade zone to appear underneath the copper deposit's oxidized portion? a. High grading b. Salting c. Super gene enrichment d. None of the above

c. Super gene enrichment

If you were asked to revive the Marcopper operations as the Resident Manager, what would be your immediate top priority? a. Ensure that the tailings disposal system is properly designed and maintained b. Provide cheap power to all the towns in Marinduque c. Ensure that the equipment are in good condition d. Ensure that the community does not protest against the operation

a. Ensure that the tailings disposal system is properly designed and maintained

EM2-1 Flashcards

(100 cards)