The Treasures of Sierra Cobre

There will be two class sessions devoted to this computer simulation exercise.  We will meet in a different classroom for these sessions, and we will not meet in our regular classroom on these dates!

Note Bene:

January 20, 2017  Cramer Hall 1

January 27, 2017  Cramer Hall 1

The Sierra Cobre activity uses a web site developed by Stephen Reynolds, Arizona State U.

http://reynolds.asu.edu/sierra_cobre/index.htm

I suggest that you form a four-person exploration team, preferably one with a mix of students with diverse training/non-training in geology. These computer sessions will allow you to meet with your group. You may wish to work on the web site activity on your own time and use your group time to develop your exploration strategy.

In your small four person corporation you may work as an independent company with the expectation that any discovery puts wealth into your organization, but at the same time you take all of the risk. Or, you may consider entering into a joint venture with another group to increase the resources you can put into the exploration program and spread out your risk. In a joint venture the question you need to ask is at what stage is it appropriate to enter into an agreement and what is the value of the information your corporation brings to the table and how will this be compensated by your potential partner. There are many options you can take.

To turn in: All materials that you turn in are individually authored.

1.     A review of your understanding of the geology of the Sierra Cobre site including maps, cross sections, etc. This is a geologic report.

2.     A list of materials your group purchased from the web site with your $200,000 virtual dollars and a brief discussion why you selected these particular materials. What geological-exploration hypothesis were you testing? Also indicate materials you purchased by joint venture agreements with other exploration groups.

3.     The results of your investigation. What did you find?  How were your hypotheses modified in light of incremental data?  Describe the type of ore deposit you discovered (disseminated, skarn (altered limestone); or weathering enrichment blanket; or?). What ore grade did you find?

4.     An economic evaluation addressing the question "Is there an economic copper deposit present at Sierra Cobre?" If so, where is it?

5.     Your recommendations on what should be done next. This may include a recommendation to abandon the property, seek a joint venture partner, keep the property and continue to explore, go to the bank and borrow money for development…

The reports are due on February 10, 2017.

revised 18 Jan 17