Gap Analysis: The process of examining the current understanding of a mining project in order to develop the next phase to identify, prioritise, and bridge the gaps.
Gap analysis or ‘issue analysis’ is an important tool to ensure stages of technical study during the development of a mining project are independently reviewed and reported to an acceptable standard; potentially saving time, money and future challenges caused by inadequate findings or reporting.
These analyses are used to identify missing information – the gap – between the current information database, and the expected end-result.
For example, an exploration company may undertake its own technical studies, which it considers to be of a suitable standard and accepted as a Feasibility Study (in accordance with the JORC Code reporting guidelines) to support financing and advance its project. A gap analysis further provides an independent assessment to outline the scope of additional work potentially required to bring the technical study documentation to an acceptable standard.
The process begins with a desktop review of relevant technical information provided by the company. The reviewers use their experience to benchmark the studies undertaken by the company and identify any missing and/or sub-standard information.
Typically, the review process includes a number of specialists with technical expertise across different areas, including but not limited to:
- Mineral Resources and Ore Reserves
- Mining, including geotechnical and hydrogeology
- Metallurgical processing
- Tailings and waste storage facilities
- Environmental
- Infrastructure
- Logistics
- Financial modelling.
Specialty areas specific to individual commodities may be included in the review where required.
The time and cost to undertake a gap analysis depends on the status of information or reporting, and the end-purpose. A review of pre-feasibility study documentation, in order to carry-out a feasibility study, could potentially take anywhere between a week and 6-weeks. The time required would depend on the study stage, as well as the amount of information available, and the format of the information.
A key learning is that a better understanding of the work completed and the standard it has been completed to, will result in an improved, efficient, and cost-effective final document. In addition, where there is the need for further work, the gap analysis can be used to better define the scope of work required.
