Factors to be considered in reassessing the estimate of recoverable reserves each year include:
A) the past production rate compared to total estimated reserves.
B) the possibility that technological developments or discoveries may make the product obsolete or uneconomical at some future time.
C) changes in technology, market or economic conditions affecting either sales prices or production costs, with a consequent impact on cut-off grades.
D) the possibility that technological developments or discoveries may make the product obsolete or uneconomical at some future time and changes in technology, market or economic conditions affecting either sales prices or production costs, with a consequent impact on cut-off grades.

Question

Quizplus · Accepted Answer

Both options A and C are correct, but option D is the best choice as it includes both factors. It is important to consider the past production rate compared to total estimated reserves, as well as changes in technology, market, or economic conditions that could impact the product's value and production costs. The possibility of technological developments or discoveries making the product obsolete or uneconomical is also a relevant factor to reassess annually. Overall, it is important to regularly evaluate the recoverable reserves estimate to ensure it remains accurate and relevant.

Factors to Be Considered in Reassessing the Estimate of Recoverable