ABSTRACT
This chapter aims to define a practical "exploration economics" that addresses the subject and its connection with project development economics. The discovery model described by Paul Bailly and others seems to put the work of the economist, geostatistician, exploration manager, and other gamblers into the right perspective. In practice, a series of regions, areas, and targets are ranked by experienced explorationists according to the probability that they contain an economically exploitable orebody. The tonnage, grade, and geometry of the expected mineral discovery must be consistent with realistic geologic appraisals, on the one hand, and with economic requirements on the other. The industrialized economies of the world will continuehealthy, with recessions but not paralysis, through government or other actions. In Australia, all investments will come under stricter governmental regulations. New laws will set new ground rules. The government will ease back on restrictions as exploration activity drops appreciably.
