MINE ECONOMICS

1. Refers to the statistical data that are collected, observed or recorded at regular intervals of time.
a. Interval cycle b. Time series
c. Time-data Record d. Business cycle
2. The difference between the total cost of producing the commodity and its selling price.
a. Profit spread b. Commodity index c. Sell index d. Commodity price index
3. Ratio that compares the price of commodity against a chosen standard or average price which is taken as 100%.
a. Nominal interest rate b. Profit spread
c. Effective interest rate d. Commodity price index
4. Shows the trends of business and economic conditions
a. Project trends b. Business cycle c. Time series d. Profit spread
5. The price at which the quantity demanded equals the quantity supplied.
a. Selling price b. Marginal price c. Equilibrium price d. Floor price
6. The total interest earned which is directly proportional to the amount borrowed, the interest rate and the number
of interest periods for which the amount loaned or principal is used.
a. Simple interest c. Nominal interest rate
b. Compound interest d. Effective interest rate
7. The interest charged for any interest period on the remaining amount of the principal plus any accumulated
interest charges at the beginning of the period.
a. Simple interest c. Compound interest
b. Nominal interest rate d. Effective interest rate
8. Refers to the interest rate quoted as an annual rate compounded at a certain number of periods other than one year.
a. Effective interest rate c. Simple interest
b. Nominal interest rate d. Compound interest
9. The ratio of the amount of the annual return to the total amount invested. (Interest Ratio)
a. Effective interest rate c. Nominal interest rate
b. Compound interest d. Simple interest
10. Refers to the compounding of the earned or accrued interest and principal at the end of each finite-length period.
a. Continuous compounding c. Non-discrete compounding
b. Simple compounding d. discrete compounding
11. Refers to the compounding of the accrued interest and principal continuously or at every moment of time.
a. Simple compounding c. Continuous compounding
b. Discrete compounding d. Non-discrete compounding
12. Series of uniform payments occurring or payable at the end of each period for n periods.
a. Annuity c. Sinking fund
b. Lease pay0ment d. Depletion
13. Refers to the annuity that is due or payable at the start of the interest period.
a. Sinking fund c. immediate annuity
b. Annuity due d. Deferred annuity
14. Refers to the annuity that is due or payable at the end of the interest period.
a. Annuity due c. Depletion
b. Deferred annuity d. immediate annuity
15. Refers to the annuity which first payment begins at some date later than the end of the first period.
a. Deferred annuity c. immediate annuity
b. Annuity due d. Depletion
16. Refers to the sum of money that would be invested today to be equivalent to a future sum or value that will
accrue over a certain period of time.
a. Future value c. sinking value
b. Capital investment d. Present value
17. Causes a given present value to accrue or accumulate to a given future amount or value.
a. Annuity c. Depreciation
b. Discount rate d. Depletion
18. To pay an amount by periodically charging off a portion of the amount usually by means of a sinking fund.
a. Amortize c. Deplete
 b. Depreciate d. annuity
19. As the loan is repaid, the total unpaid balance draws interest until the remaining balance is paid.
a. Diminishing annuity c. Deferred annuity
b. Interest rate d. immediate rate
20. Difference between total revenue and total cost.
a. Market value c. Profit
b. Variable cost d. Semi-variable cost
21. Refers to the available capital or funds necessary to sustain normal producing operations.
a. Capital investment c. direct capital
b. Working capital d. First Cost
22. Costs which remain relatively constant regardless of the level of activity.
a. Variable costs c. Total costs
b. Semi-variable cost d. indirect costs
23. Costs which varies in direct proportion to output or volume.
a. Semi-variable costs c. indirect costs
b. Variable costs d. Total costs
24. Costs which contain both fixed and direct costs.
a. Semi-variable costs c. Variable costs
b. Indirect costs d. Total costs
25. All product costs other than raw materials and direct labor.
a. Total costs c. Overhead costs
b. Variable costs d. Semi-variable costs
26. Sum of variable and fixed costs incurred in producing certain quantity or output.
a. Direct costs c. Overhead costs
b. Indirect costs d. Total costs
27. Product of the quantity or output sold at the set selling price.
a. Selling price c. Floor price
b. Total revenue d. Equilibrium price
28. A measurement in monetary terms, for the use of resources for some purpose.
a. Cost c. Interest
b. Annuity d. Payment
29. Expenditures for the purchase of plant and equipment
a. Operating Expenditures c. Intangible Expenditures
b. Working Expenditures d. Capital Expenditures
30. The capital expenditure required to start a project and carry it to an operational level.
a. Working Expenditure c. First Cost
b. Operational Expenditure d. Intangible Expenditures
31. Costs incurred in the various phases of the operations geared towards production.
a. Operating costs c. Capital costs
b. Maintenance costs d. Total costs
32. Ordinary costs required for the upkeep of property and restoration required when equipment are damaged but not
replaced.
a. Total costs c. Maintenance costs
b. Break-even point d. Operating costs
33. The level of volume of sales where marginal income equals the total fixed costs
a. Cut-off Sales c. In-direct sales
b. Break-even point d. direct sales
34. A report used to evaluate the performance of a project or a business by comparing its revenue and its related
expenses for a particular period.
a. Stock report c. Project report
b. Account Payable d. Income Statement
35. Refers to the total value of the products produced for a particular period.
a. Present value c. Revenue
b. Future value d. Profit value
36. Those directly derived from the operations of the business or project, like sales, commissions and fees earned for
service business.
 a. Operating Revenues c. direct revenue
b. Capital revenues d. In-direct revenue
37. Those derived form other sources aside from the main project like interests, dividends, rentals & royalties.
a. Operating revenues c. In-direct revenue
b. Non-operating revenues d. direct revenues
38. Refer to all expenditures incurred for a particular period in connection with the operation of the project or
business.
a. Costs c. Assets
b. Liabilities d. Expenses
39. Represents the excess revenue earned over the related expenses for a given period.
a. Net Income c. In-direct Revenue
b. Overhead d. Fixed Revenue
40. Economic resources owned by a business entity which are used in the generation of income or revenue out of the
operations.
a. Overhead c. Profit spread
b. Interest d. Assets
41. Assets that have definite physical forms, such as land.
a. Direct assets c. In-direct assets
b. Tangible assets d. Intangible assets
42. Assets that do not physically exists, such as legal claims or rights.
a. Intangible assets c. In-direct assets
b. Direct assets d. Tangle assets
43. Debts or obligations of a business.
a. Assets c. Liabilities
b. Overhead d. Deferred Annuity
44. Those that may be paid within one year or within the operating cycle, whichever is longer.
a. Payback period c. direct assets
b. Current Liabilities d. Intangible Expenditures
45. Liability arising from the purchase of goods or services on credit.
a. Note payable c. Stock payable
b. Overhead payable d. Account payable
46. A liability arising from loans where there is a formal written promise to pay a certain amount of money plus
interest at a definite future of time.
a. Account payable c. Stock payable
b. Note payable d. Overhead payable
47. Represents the amount invested in the business by its owners.
a. Capital stock c. Common stock
b. Preferred Stock d. immediate annuity
48. The basic capital stock which processes the basic rights of ownership which are the right to vote, etc.
a. Preferred Stock c. Common stock
b. Overhead amount d. immediate annuity
49. It is used to recover previous investment.
a. Rate of return c. Net Present Price
b. Non-cash cost d. Net future price
50. The method used to measure the profitability of an investment.
a. Benefit ratio c. Methodological Analysis
b. Cost Ratio d. Profitability analysis
 ECONOMICS OF MINING

1. The chance /probability of the elements /parts of a mass /body of being included in the sample cannot be
estimated /determined.
a. probability sampling c. random sampling
b. estimated sampling d. non-probability sampling
2. In this type of non-probability sampling, the various groups in the population are determined and the sample is
drawn /taken to have the same percentage /number or quantity in it.
a. accidental sampling c. quota sampling
b. incidental sampling d. purposive sampling
3. It refers to a large group of units /elements /parts comprising the total units /elements /parts under investigation
from which facts of interest are gathered. We can equate this term to a mass or body of rocks.
a. parameters c. sampling
b. population or universe d. distribution
4. It refers to the representative portion of a universe /population or a mineral mass /body. It can be an element or
portion /unit or an element.
a. sample c. parameters
b. population or universe d. statistics
5. Which is the most precise in choosing of sampling method?
a. depends upon the nature of the deposit
b. depends upon the nature of size of sample
c. depends upon the character of the mineral occurrence /deposit
d. based on the concept of the randomness
6. Which is different from the group?
a. dump samples /stockpile samples
b. placer samples
c. borehole /drill hole samples
d. bulk or grab samples
7. A type of drill hole sampling (specifically core drilling) where a reservoir called a Calyx collects the core and
sludge, which are collected as samples.
a. drive-pipe c. long hole drilling
b. churn d. none of the above
8. The act of enriching or improvising (that is, introducing or removing values from) the samples for test purposes
either intentionally or accidentally.
a. sample salting c. high-grading
b. upgrading d. test pitting
9. It refers to the degree of the relative importance or weight or influence that a sample exerts on or affects the true
value when combined with other samples.
a. central limit theorem c. sample weighting or sample influence
b. statistics d. area of influence
10. It measures the relative variations or deviation of values from the mean. This is also known as the coefficient of
uniformity.
a. sampling error c. mode
b. variation d. coefficient of variation
11. It refers to the error committed in the determination of the sample mean, relative to the true value of the ore
body.
a. sampling error c. sampling salting
b. relative error of the mean d. none of the above
12. It is the present worth of future earnings minus the present discounted expenditures necessary to bring the mine
into production.
a. purchase price c. future value
b. present value d. mine value
13. In a general sense it is a measurement of the use of resources for some purpose expressed in monetary terms.
a. capital c. investment
b. revenue d. cost
14. Those cost which remain relatively constant regardless of the level of activity.
a. overhead cost c. variable or direct cost
b. fixed or indirect d. semi-variable cost
15. Which is not a variable or direct cost?
a. royalties c. labor
b. raw materials d. depreciation
16. Which is not a direct cost?
a. labor c. maintenance
b. supplies d. supervision
17. Those cost which vary in direct proportion to the output or volume.
a. fixed cost c. variable of direct cost
b. indirect cost d. capital cost
18. _______ is a method of ore reserve estimation that involves the application of the mathematics of random
functions to the reconnaissance of mineral deposits.
a. kriging c. geostatistics
b. cost estimation d. mine evaluation
19. The consumption of exhaustible natural resources to produce products or services is termed as
a. depreciation c. consumption
b. depletion d. utilization
20. Which is not considered as Operating cost?
a. labor c. supplies and materials
b. power and fuel d. plant and equipment
21. Which is not considered as capital cost?
a. mine development c. acquisition of property
b. exploration d. maintenance cost
22. It refers to the amount or revenue left after deducting variable cost.
a. Gross margin c. marginal income ratio
b. marginal income or contribution d. none of the above
23. Difference between total revenue and direct cost
a. Gross margin c. marginal income ratio
b. marginal income or contribution d. none of the above
24. Difference between total revenue and total cost
a. total cost c. profit
b. revenue d. gross margin
25. Product of the quantity /volume or output sold at the set selling price
a. total revenue c. profit
b. total cost d. gross profit
26. The total revenue does not include _______ and _______.
a. Operating cost and fixed income
b. Fixed income and none operating income
c. Maintenance cost and operating cost
d. Gross income and Profit
27. The ways to increase profit is to
a. increase the selling price c. decrease selling price to increase sales
b. increase the volume to increase sales d. all of the above
28. Marginal income expressed as a percentage of revenue (sales)
a. marginal income c. gross margin
b. marginal income ratio d. none of the above
29. Which of the following variables that affect Profit
a. change in selling price or number of units
b. change in total fixed cost
c. change in variable cost
d. all of the above
30. An indicator used in measuring profitability of a mining project which involves the calculation of the interest
raters when use in discounting the stress of future each flows, makes the discounted each flows equals to present
value of the total project cost.
 a. discounted payback period c. net present value
b. accounting rate of return d. discounted cash flow rate
31. In sampling, the number or size of samples depends upon the nature of the deposit. In general, ______ deposits
require fewer samples compared to that of ________ deposits.
a. homogeneous, heterogeneous c. ore, mineral
b. heterogeneous, homogeneous d. mineral, ore
32. Which is not a non-probability sampling?
a. systematic sampling c. quota sampling
b. accidental or incidental sampling d. purposive sampling
33. Which is not a probability sampling?
a. simple random sampling c. systematic sampling
b. multi-stage sampling d. statistical sampling
34. The two types of dump /stockpile sampling are
a. stratified and random c. channeling and trenching
b. trenching and test pitting d. test pitting and grabbing
35. To be able to determine the consistency or grave of the entire mass, all of the whole mass should be taken and
subjected to appropriate test which will give as the “________” of its consistency.
a. sample value c. true consistency
b. true value d. approximate value
36. It refers to a range of value set about which the mean, at a certain degree of confidence, will lie with such range
of values
a. modified mean c. confidence interval or fiducial interval
b. variation d. median
37. It refers to the probability of certainty, i.e. the most common ________ are 95% and 99% which means that
there is only 5% and 1% respectively, room for error that the mean will not lie with within the confidence interval.
a. degree of confidence c. degree of certainty
b. fiducial interval d. confidence interval
38. It refers to the least mining width that a vein can be mined conveniently at the least and /or least dilution.
a. economic mining width c. maximum stoping width
b. economic stoping width d. minimum stoping width
39. If the exploration and development cost amount to Php 135,000,000.00, the mineable reserve is 22,000,000 MT
of copper ore assaying 2.05% Cu and 5 grams Au/MT. Annual production is 240,000 MT, a depletion charge for the
first 5 years of operation would be
a. PhP 1,400,000 c. PhP 1,876,000
b. PhP 1,539,924 d. PhP 2,001,260
40. Cost which contain both fixed and variable cost, the increase in cost as a result of changes in the volume /output
but not in direct proportion to the volume.
a. Semi-variable or mixed costs c. capital costs
b. overhead costs d. none of the above
41. Which is not a fixed or indirect cost?
a. rent c. property taxes
b. insurance d. royalties
42. All products cost other than raw materials and direct labor.
a. mixed cost c. overhead cost
b. indirect cost d. capital cost
43. A small-scale gold mine produces 15,000 MT of gold ore in 1993 averaging 6 grams Au /MT. It was able o sell
the entire production at a selling price of PhP 300.00/gr. of Au. If operating cost before taxes is PhP 175.00/gr. of
Au and the applicable taxes are:
Excise tax = 2% of gross sale,
Income tax = 35% of the first PhP 100,000.00 and 40% for the balance
The net income after tax posted in 1994 would be
a. PhP 5,431,000.00 c. PhP 7,431,000.00
b. PhP 6,431,000.00 d. PhP 8,431,000.00
44. A mine is projected to post a net cash flow as follows:
1995 - PhP 3,000,000
1996 - PhP 3,000,000
1997 - PhP 3,500,000
1998 - PhP 3,000,000
1999 - PhP 2,500,000
If the mine is capitalized at PhP 10,000,000 coming from a loan of the same amount and payable at 12% interest per
year its net present value shall be
a. PhP 800,000 c. PhP 850,000
b. PhP 900,000 d. PhP 950,000
45. The isopach method of ore reserve estimation relies mainly in
a. contour c. drill holes
b. specific gravity of ore d. statistical data
46. a. Triangle method b. Cross-section method c. General milling method d. Inverse distance
is a statistical method of reserve estimation.
47. The specific gravity of an ore is an expression of the ratio of the density of that ore to the
a. Density of water c. Grade of ore
b. Density of the primary metal in the ore d. Moisture content
48. The area of the cross-section of an ore body is determined using
a. pantograph c. planimeter
b. transit d. GPS instrument
49. Aside from the core and drill cuttings another form of sample obtained when doing sampling by drilling is the
a. sludge c. flush-out water
b. slurry d. drilling mud
50. Break even means
a. zero profit c. positive profit
b. negative profit d. none of the above

ECONOMICS OF MINING

1. It is used to evaluate the performance of a project or a business y comparing its revenue and its related expenses
for a particular period.
a. Income statement c. Balance sheet
b. Net income d. Expenses
2. The total value of the product produced for a particular period.
a. Net income c. Revenue
b. Income statement d. Expenses
3. The expenditures incurred for particular period in connection with the option of a project.
a. Assets c. Revenue
b. Net income d. Expenses
4. The excess revenue earned over the related expenses for a given period.
a. Net income c. Balance sheets
b. Assets d. Income statement
5. The financial position of a business entry of a particular date by summarizing the assets, liabilities, & owner’s.
a. Cash flow statement c. Stockholders equation
b. Balance sheet d. Assets
6. The debt or obligation of a business, claims or creditors against assets.
a. Liabilities c. common stocks
b. Assets d. Fixed costs
7. The financial report which shows the sources of cash receipts and purpose of cash payments during particular
period.
a. Assets c. Cash flow statement
b. Gross margin d. Profit
8. The sum of valuable and fixed cost incurred in producing certain quantity.
a. Profit c. Excise Tax
b. Income tax d. Total cost
9. The charge before the mineral product is extracted & sold.
a. Total cost c. income tax
 b. Excise tax d. Value added tax
10. It is the prediction that involves the explanation of the events which will occur at some future time.
a. Forecast c. Assets
b. Forecasting d. Trend
11. It is the process of arriving at predictions or the process of predicting future value based from the study of
analyses of past value or data.
a. Forecast c. Trending
b. Forecasting d. Assets
12. The statistical data that are collected, observed, or recorded at regular intervals of time.
a. Assets c. Time series
b. Forecasts d. time analysis
13. It refers to the fluctuations which repeat more or less regular intervals but last for more than one year.
a. Linear cycle c. Periodic movements
b. Business cycle d. cyclical fluctuations
14. It consists of finding the equation of the least-square line that fits the curve/graph of the time series.
a. Linear trends c. Trend line
b. Curvilinear trends d. Exponential trends
15. The economic resources owned by business entry to generate income or revenue.
a. liabilities c. expenses
b. Assets d. Net income
16. The fund available to a business or the net amount of liquid resources available to a business.
a. Working capital c. stocks
b. Sources d. Assets
17. The primary asset of a mine.
a. ore c. equipment
b. labor d. capital
18. These mine assets are considered to e valuable when they are able to produce and process to a
marketable/salable form.
a. development c. plant and equipment
b. working capital d. power
19. In the amount of money or cash needed to finance or take care of all expenses for the purchase of supplies and
materials, payment for labor and other running or operating expenses need to keep the mine operating daily.
a. working capital c. interest
b. capital invested d. none of the above
20. A prediction that involves the explanation of events which will occur at some future time.
a. secular trend c. forecast
b. time series d. none of the above
21. The process at arriving at prediction or the process of predicting future values based from the study or analysis
of past values/data.
a. forecasting c. time series
b. cyclical fluctuation d. secular trend
22. An intrinsic method of forecasting by study time series statistical data.
a. Secular trend c. forecasting
b. time series analysis d. cyclical fluctuation
23. Represents the smooth or regular underlying or the general long-run behavior or movement of a series over a
fairly long period of time. It depicts the gradual growth or decay of a combination of both of a particular time series
observed over a long period of time. It is the result of a long-run change and is considered as the standard or the
norm around which other movement fluctuate.
a. Trend or secular trend or long term trend
b. Cycle or cyclical fluctuation/variations
c. Season or seasonal movements/variation
d. Irregular fluctuations/variation or random
24. Refers to the movements/fluctuation/variation which repeat themselves at a more or less regular interval, a
periodic movement which has a period of one year, movements in a time series which recur year after year in the
same month of the year with the more or less the same intensity.
a. Trend or secular trend or long term period
 b. Cycle or cyclical fluctuation/variations
c. Season or seasonal movements/variation
d. Irregular fluctuations/variation or random
25. Refer to the unexplained variation not covered by any of the other components and generally considered as
accidental or random in nature; they are totally unpredictable.
a. Trend or secular trend or long term trend
b. Cycle or cyclical fluctuation/variations
c. Season or seasonal movements/variation
d. Irregular fluctuations/variation or random
26. Refers to fluctuations which repeats in a more or less regular intervals, but lasts for more than one year. The
duration of the cycle does not usually recur at regular period of time.
a. Trend or secular trend or long term trend
b. Cycle or cyclical fluctuation/variations
c. Season or seasonal movements/variation
d. Irregular fluctuations/variation or random
27. Method or tools of forecasting that consist of finding the equation of the line (least-square line that fits the
curve/graph of the time series.
a. straight line c. moving average
b. least-square method d. methods of moment
28. Method or tools of forecasting that is an artificial series used to describe the overall behavior of a time series
when the trend cannot be ascertained whether linear, non-linear or part of a cycle or a mathematical equation is not
required.
a. straight line c. moving average
b. least-square method d. method of moments
29. Is a list of prices and of the corresponding quantities that consumers are willing and able to buy at each price per
unit time?
a. demand c. price
b. supply d. quantity
30. Is a list of price and the quantities that a supplier or group of suppliers (firms) and would be willing and be able
to offer for sale at each in the list per period of time.
a. demand c. price quantity
b. supply d. price quality
31. What are the factors that influences demand
a. 1, 2, 3, & 4 c. 2, 7, 3, & 8
b. 5, 6, 7, & 8 d. 1, 5, 6, & 4
32. What are the factors that influences supply
a. 1, 2, 3, & 4 c. 2, 3, 7, & 8
b. 5, 6, 7, & 8 d. 1, 5, 6, & 4
33. Which statement is true regarding change in demand?
a. When price falls (rises), other things remaining the same, quantity demanded rises (falls).
b. When price rises (falls), other things remaining the same, quantity demanded rises (falls).
c. When price falls (rises), other things remaining the same, quantity demanded falls (rises).
d. None of the above.
34. Which statement is true regarding changes in supply?
a. When price rises (falls), other things remaining the same, the quantity supplied rises (falls).
b. When price falls (rises), other things remaining the same, quantity supplied rises (falls).
c. When price rises (falls), other things remaining the same, the quantity supply falls (rises).
d. None of the above.
35. Is the price at which the quantity demanded equals the quantity supplied, that is, the price that clears the market
where both excess demand and supply are zero?
a. ceiling price c. equilibrium price
b. floor price d. surplus
36. When price is above the equilibrium price, the quantity supplied exceeds the quantity demanded resulting to:
a. shortage c. exact quantity
b. surplus d. equilibrium price
37. If the price is below equilibrium, quantity demanded exceeds quantity supplied resulting to:
 a. shortage c. exact quantity
b. surplus d. ceiling equilibrium
38. Which demand increases, supply remaining constant, both price and quality __________.
a. Remaining constant c. decrease
b. increase d. all of the above
39. When supply _______ (______), demand remaining constant, both prices falls (rises), and quality rises (falls).
a. increase (increase) c. decrease (increase)
b. increase (decrease) d. decrease (decrease)
40. When both supply and demand both increase (decrease), quantity increases (decreases); but price can be
_________, depending upon the relative magnitude of the shifts.
a. increase c. increase or decrease
b. decrease d. will remain constant
41. Is the minimum price set on a good commodity?
a. floor price c. equilibrium price
b. ceiling price d. surplus
42. Is the maximum price set on a good commodity?
a. surplus c. equilibrium price
b. floor price d. ceiling price
43. Money paid for the use of borrowed money (capital) or money gained from the use of learned money or capital.
a. discount c. income tax
b. revenue d. interest
44. Ratio of the amount gained from an investment to the amount invested for a specific period.
a. interest rate c. depletion rate
b. discounted cash flow d. time value of money
45. Find the amount which will accrue at the end of 7 years if $ 1250 is invested now at 8%, compounded annually?
a. $ 2142.28 c. $ 2871.64
b. $ 729.36 d. $ 1950.51
46. If $ 6500 will be needed in 5 years, how much should be invested now at an interest ratio of 7.5%, compounded
annually?
a. $ 4062.5 c. $ 4532.63
b. $ 4527.63 d. $ 4067.5
47. If payment of $725 is made at the end of the year for 12 years to an account which pays interest at the rate of
9%, what will be the terminal amount?
a. $ 14,602.02 c. 14,622.02
b. $ 24,470.18 d. $ 24,480.18
48. With interest at 6%, how much must be deposited at the end of each year to yield a final amount of $ 2,825 in 7
years?
a. $ 1878.79 c. $ 1900.79
b. $ 336.58 d. $ 340.58
49. An investment will yield % 610 at the end of each years for 15 years. If interest is 10%, what is the maximum
purchase price (i.e. present value) for this investment?
a. $ 4639.71 c. $ 5369.17
b. $ 3093.14 d. $ 2738.14
50. If an investment opportunity is offered now for % 3500, how much must it yield at the end of every year for 6
years to justify the investment if interest is 12%?
a. $ 851. 67 c. $ 5369.17
b. $ 890.71 d. $ 840.41
51. An investment opportunity is available which will yield $ 1000 per year for the next 3 years and $ 600 per year
for the following 2 years. If interest is 12% and the investment has no terminal salvage value, what is the present
value of the investment?
a. $ 3123.60 c. $ 3245.65
b. $ 4091.88 d. $ 3455
 MINE ECONOMICS

Problems:

1. Given the following:

Mining Cost - P 50.00/MT

Milling Cost - P 200.00/MT
Marketing Cost - $ 5.00/oz
Administration Cost – P 50.00/MT
Stripping Cost – P 25.00/MT
Excise Tax – 2% of revenue (net of marketing)
Gold Price - $350.00/oz
Recovery – 85%
Stripping Ratio – 1:6
Forex – P 30.00/ $

1.1 How many gm Au/MT (grade to breakeven)?

a. 1.62 gm Au/MT c. 1.28 gm Au/MT
b. 2.01 gm Au/MT d. 1.89 gm Au/MT
1.2 How mant oz.MT?
a. 0.30 oz./MT c. 0.23 oz./MT
b. 0.05 oz./MT d. 0.10 oz./MT
1.3 If the Mine Call Factor is 15%, what should be the grade in gm Au/MT that you will mine?
a. 2.12 gm Au/MT c. 1.83 gm Au/MT
b. 1.6 gm Au/MT d. 1.91 gm Au/MT
1.4 If the Mill grade is 3 gm Au/MT, what is the grade of the ROM assay?
a. 3.21 gm Au/MT c. 3.53 gm Au/MT
b. 3.15 gm Au/MT d. 3.65 gm Au/MT

2. The corporate income tax of a gold mine is 35% and the local government unit receives 40% share and the
barangay receives 10% of LGU share. The generated profit of the mine is P 12, 387, 673.09 and the excise
tax is set at P1, 079, 340.27.

2.1 How many percent will the Barangay receives from the corporate income tax?
a.2% c. 1.25%
b.1.4% d. 1.88%
2.2 Amount the Barangay receives from the corporate income tax?
a. P 57, 654.00 c. P 60, 699.00
b. P 59, 774.89 d. P 64, 539.11
2.3 Amount Government will receive.
a. P 5,415, 026 c. P 5,335, 011.21
b. P 4, 945, 600. 26 d. P 4, 623, 977.00
3. All openings in a portion of a panel in a room and pillar mine are 20 ft. in width and the mining height is regular.
Rooms are driven on 60 ft. centers and crosscuts on 80 ft. centers. What is the percentage recovery if no rubbing of
pillar is done?
a.48% c. 53%
b.50% d. 62%
4. What is the cut-off grade (in percent) for an iron deposit, given the following?
Iron ore price - $ 82. 67/ Tonne, 100% Fe
Total Production cost - $ 24.61/ Tonne
Recovery – 95%
$ 1.00 – p 40.00
a.25% c. 28%
b.35% d. 31%
5. Calculate the annual production rate of a Room & Pillar mine under the following conditions:
 Working place dimension – 1.8 m. x 5.4 m.
Number of working places – 14
Work time – 7 hours/ shift, 2 shifts/ day
250 days/ year
Advances per shift – 12 @ 3.6 m. per advance
Tonnage factor – 0.75 cu. m. / Tonne
a. 279,936 MT/ yr. c. 295, 451 MT? yr.
b. 245, 633 MT/ yr. d. 283, 344 MT/ yr.
6. In one of the many gold producing mines in the Baguio District, there was encountered during exploration a thin
almost vertical quartz vein (1.2 ft. thick). Sampling on the vein revealed an average grade of 22.5 gm. Au/ Tonne.
The country rock is totally barren. Slope width is 2 ft. at this width, what is the percentage of dilution?
a.38% c. 43%
b.40% d. 36%

SURVEYING

1. The line of reference passing the observer and the north-south directions.
a. meridian b. azimuth c. bearing d. true meridian
2. It is called true meridian if the poles used are:
a. north poles b. south poles c. geographic poles d. N-S poles
3. If the poles used were magnetic, it is called:
a. azimuth b. true meridian c. magnetic meridian d. bearing
4. The angle which a line makes with either the north or south end of the meridian or reference line
a. bearing b. azimuth c. true bearing d. true meridian
5. It is called true bearing if the meridian used is
a. north poles b. south poles c. magnetic d. true
6. It is a magnetic bearing if the meridian used is
a. geographic poles b. north c. south d. magnetic
7. The angle which a certain line makes end of a meridian, measured clockwise
a. bearing b. meridian c. true meridian d. azimuth
8. The azimuth of 300 is in what quadrant? a. I b. II c. III d. IV
9. An azimuth of 0 degree is the same as:
a. due south b. due north c. due east d. due west
10. If the direction of an opening is in west direction, then its azimuth is
a. 450 b. 900 c. 1800 d. 3600
11. The reference line used in an opening in order to maintain its slope is
a. gradient line b. center line c. transit d. strike line
12. The point where the curve leaves the first tangent
a. point of curvature b. point of tangency c. vertex d. middle ordinate
13. The point where the curve joins the second tangent
a. vertex b. coordinates c. point of tangency d. tangent distance
14. The point of the intersection of the two tangents
a. vertex b. radius c. Point of tangency d. tangent distance
15. The angle of deflection between the tangents
a. intersection angle b. bearing c. vertex d. azimuth
16. In order to maintain the right direction/center of an opening in underground, it is necessary to put a
a. gradient line b. center line c. tangent distance d. vertex
17. The least number of persons needed in order to perform survey in an area
a. 5 b. 3 c. 2 d. 1
18. The reference point and direction in getting azimuth is
a. south-counterclockwise b. north-clockwise c. south-clockwise d. north-counterclockwise
19. Which of the following gives wrong information?
a. N30W/III quadrant b. due north/ 900 c. N45E/2250 d. S45E/3150
20. A transit gives a bearing reading of S89W, its azimuth is
a. 1780 b. 450 c. 2670 d. 890

Problems

1. Compute the area by a double meridian distance by a quarry bounded at the northeast and southeast by a river if
the boundary lines are as follows:
Line Bearing Distance
1-2 N25E 300.00 M
2-3 S65E 500.00 M
3-4 S20E 141.42 M
4-5 S25W 200.00 M
5-1 N65W 600.00 M
a. 174.99707 sq. m. c. 1749.9707 sq. m.
b. 17499.707 sq. m. d. 174997.07 sq. m.
2. Coordinate of corner 2 are north 1000, east 1000, and coordinates of M are north 406.72, east 2458.57, after
running the traverse 1, 2, 3, 4 & 5.
2.1 What is the distance of corner 2 to M?
a. 1474.61 c. 1574.61
b. 1674.61 d. 1774.61
2.2 Find the bearing of corner 2 to M.
a. N670 86’ W c. N670 86’ E
0
b. N22 8’ E d. N220 8’W
2.3 Find the azimuth.
a. 2910 43’ c. 2010 34’
b. 111 34’
0
d. 670 86’
3. The coordinates and elevation of station 261 and 250 are N 6870 and E 8430, 5822.00 ft. respectively. The
bearing of sta. 260-261 is N820 15’ E while sta. 249-250 is S750 45’ W. Find the following:
3.1 Distance of sta. 261 & sta. 250.
a. 2491.12 c. 349.12
b. 1249.12 d. 549.12
3.2 Bearing of sta. 261 & 250.
a. N640 3’ W c. S640 3’ W
0
b. N29 57’E d. N290 57’ W
3.3 The grade of connection of sta. 261 & 250.
a.48% c. 4.8%
b.0.48% d. 0.048%

COMPUTER APPLICATIONS

1. Which is not a Mining Software?

a. Gemcom for Windows c.Datamine
b. PC – Mine d. Microsoft Excel
2. Brain center of a computer
a. CPU c. keyboard
b. monitor d. printer
3. Advantages offered by computerization.
a. speed c. 2D & 3D view
b. accuracy d. all of the above
4. Gemcom for Windows is not capable of
a. Pit Designing c. Solid Generation
b. Kriging d. Pit Slicing
5. Example of software.
a. MMX c. Hard disk
b. Quattro Pro d. Pentium 200
6. Example of a hardware.
a. Wordstar c. Hard disk
b. Lotus d. Excel
7. The Surveying Software.
a. Datamine c. Gemcom
b. LisCad d. Lomega
8. Whittle 3-D produces a
a. Crude Pit Design c. Pit Design with ramps
b. Smoothened Pit Design d. Pit Design with Mill Plant
9. Computer-aided mine design is now a reality. This is made possible by
a. Microsoft c. Mine application software
b. IBM d. Laptop
10. A computer does the thinking for a Mining Engineer
a. True
b. False

MINING LAWS

1. It is the water, sea bottom and subsurface from the shore or coastline reckoned from the mean low tide up to 200
nautical miles of the Exclusive Economic Zone
a. offshore c. onshore
b. mineral reservation d sea level
2. The land ward side of the mean low tide level including submerged lands in lakes, rivers, creeks.
a. onshore c. sea front
b. offshore d. mineral reservation
3. It is an area closed to mining application
a. military zone c. forest land
b. mineralized area d. lands covered by the expired mining permit
4. An area where mineral resources are found
a. vegetable area c. mineral land
b. tailings pond d. high mountain
5. An act stating the reduction age of all underground mine workers
a. R. A. 7076 c. R. A. 8558
b. R. A. 8998 d. P. D. 7942
6. An area bounded by one-half (1/2) minute of latitude and one-half (1/2) minute longitude, containing an area of
approximately eighty-one (81) hectares.
a. onshore c. meridional block
b. area d. contract area
7. It is an instrument issued by the Mines and Geosciences Bureau for the conduct of exploration with a term of two
years, renewable for like period but not to exceed six years
a. gratuitous permits c. FTTA
b. guano permit d. Exploration permit
8. An exploration permit within mineral reservation is approved and issued by
a. President of the Philippines
b. Director of Mines and Geosciences of the Philippines
c. DENR Secretary
d. Under Secretary
9. The issuance and approval of FTTA is the responsibility of the
a. DENR Secretary
b. Director of Mines and Geosciences Bureau
c. President of the Philippines
d. Panel of Arbitrators
10. Mineral Agreements are approved and issued by the
a. DENR Secretary
b. Director of Mines and Geosciences Bureau
 c. President of the Philippines
d. Panel of Arbitrators
11. Which of the following does not belong to the group?
a. Joint Venture c. Mineral Agreement
b. Co-production Agreement d. Exploration Permit
12. The mineral processing should be prepared by
a. Mining Engineer c. Geologist
b. Metallurgical Engineer d. Anyone of the above
13. It is a permit issued for the extraction, removal, and disposition of sand and gravel and other loose or
unconsolidated materials covering an area of not more than 5 hectares for a term of 5 years, renewable for like
periods up to 25 years.
a. industrial sand and gravel permit c. guano permit
b. quarry permit d. exclusive sand and gravel permit
14. It is a permit issued for the extraction, removal and disposition of sand and gravel and other loose or
unconsolidated materials covering an area of not more than 1 hectare for a non-renewable period of 60 days.
a. industrial sand and gravel permit c. guano permit
b. quarry permit d. exclusive sand and gravel permit
15. It is a permit issued for the extraction, removal and disposition of sand and gravel and other loose or
unconsolidated materials covering an area of not more than 5 hectares for a term of 1 year, renewable for like
periods.
a. industrial sand and gravel permit c. commercial sand and gravel permit
b. quarry permit d. exclusive sand and gravel permit
16. It is an instrument issued for the extraction, removal and disposition of sand and gravel and other loose or
unconsolidated materials for public infrastructure projects covering an area of not more than 2 hectares with a term
not to exceed 1 year.
a. government gratuitous permit c. government mining permit
b. government permit d. guano permit
17. Private gratuitous permit is only good for
a. 1 year c. two weeks
b. 60 days d. two years
18. It is an instrument issued for the extraction, removal, disposition and /or utilization of loose unconsolidated bat
/bird excrete and other organic fertilizer deposits in specific caves and /or confined sites for a term of 1 year within
an area of not more than 5 hectares.
a. guano permit c. gratuitous permit
b. quarry permit d. mineral processing permit
19. The quantity to be extracted in a gratuitous permit should not exceed in
a. 200 kg c. 500 kg
b. 2,000 kg d. 100 kg
20. It is an instrument issued for the processing of minerals with term of 5 years renewable for like periods up to 25
years
a. milling permit c. befeciation permit
b. mineral processing permit d. hauling permit
21. The minerals processing permit has a maximum term of
a. 5 yrs b. 10 yrs. c. 15 yrs d. 25 yrs.
22. It is an authority issued for the transport and /or shipment of minerals and /or mineral products.
a. hauling permit c. ore transport permit
b. shipment permit d. conveyance permit
23. The FTAA is applicable for
a. metallic minerals c. coal only
b. metallic and non-metallic d. non-metallic
24. It is the excise tax levied on gold and chromite
a. 2% c. 1%
b. 6% d. 3%
25. It is the occupation fee per hectare or a fraction thereof per year for mineral agreements and FTAA outside
mineral reservations.
a. PhP 30.00 c. PhP 50.00
 b. PhP 10.00 d. PhP 100.00
26. It is the act for “indigenous people”
a. R. A. 8371 c. R. A. 7942
b. R. A. 7076 d. R. A. 1251

MINING LAWS

1. States that all minerals belong to the state.

a. Regalia doctrine c. Hernandez doctrine
b. Rizalian doctrine d. Proletarian doctrine
2. All submerged lands in the exclusive economic zone of the Philippines are declared.
a. Marine Reservations c. Off-shore Reservations
b. Mineral Reservations d. Aquatic Reservations
3. The primary government agency responsible for the conservation, management, development and proper use of
country’s mineral resources.
a. Mines and Geosciences Bureau c. Dept. of Mineral Resources
b. DENR d. Bureau of Mines
4. All proposed Mineral Agreement shall be filled in
a. the region where the areas are located
b. MGB central office
c. DENR central office
d. District office of the MGB
5. The example of a Mineral Agreement is the
a. FTAA c. Dept. of Environmental and Natural Resources
b. Co-Production Agreement d. Quarry Permit
6. A proposed Mineral Agreement is approved by the
a. MGB Director c. DENR secretary
c. MGB Regional Director d. President
7. A Mineral Agreement shall have a term of ________renewable for another term.
a. 5 years c. 25 years
b. 20 years d. 50 years
8. The New Milling Act, R. A. No. 7942, states that small scale mining shall continue to be governed by ________,
and other pertinent laws.
a. R. A. No. 7160 c. R. A. No. 7076
b. R. A. No. 6076 d. R. A. No. 1899
9. Any qualified person may apply for a Quarry Permit to the
a. DENR Secretary c. Provincial Governor
b. MGB Director d. Provincial/City Mining Regulatory Board
10. A Quarry permit is granted by the
a. MGB Director c. Provincial Governor
b. DENR Secretary d. Provincial/City Mining Regulatory Board
11. To extract sand and gravel, quarry or loose unconsolidated materials in pursuit of its projects, any
government entity may be granted a
a. Gratuitous permit c. Sand and Gravel permit
b. Quarry permit d. Commercial permit
12. No person shall engage in the processing of minerals without first securing a
a. milling permit c. minerals processing permit
b. mineral agreement d. ore dressing permit
13. No person under ________year of age shall be employed in any phase of mining operations.
a. 16 c. 20
b. 18 d. 21
14. Except during exploration, mining operations are required to be covered by Environmental Clearance
Certificates (ECC) based largely on
a. an initial environmental examination
b. project description
c. environmental impact system
d. environmental impact assessment
15. Hearing and deciding on case involving mining disputes shall be the responsibility of the
a. panel of arbitrators c. Legal Division of MGB
b. Regional Trial Court d. Supreme Court
16. The total government shares in a Mineral Production Sharing Agreement (MPSA) on mineral products
should be the
a. income tax c. excise tax
b. royalty d. ad valorem tax
17. An allocating occupation fees collected from mining contractors, _________goes to the province while
the balance goes to the municipality concerned.
a. 30% c. 50%
b. 40% d. 20%
18. Of the investment guarantees provided in the New Mining Act, ________is not included.
a. Repatriation of Investments c. Freedom from Expropriation
b. Remittance of Earnings d. Full tax operation
19. The New Mining Act was passed by the _________ Congress in 1995.
a. Eight c. Tenth
b. Ninth d. Eleventh
20. The mining law that immediately preceded the New Mining Act was
a. Executive Order No. 279 c. Presidential Decree No. 463
b. A. No. 7076 d. A. No. 7160
21. Referred to as the Mining Engineering Law of the Philippines.
a. R. A. No. 4274 c. R. A. No. 7160
b. R. A. No. 7942 d. P. D. No. 463
22. At least one registered mining engineer and one registered foreman are required for an entire operation
employing persons directly engaged in mining and/or quarrying.
a. 25-50 c. 101-150
b. 51-100 d. 151-200
23. One of the following persons is not a member of the Provincial Mining Regulatory Board.
a. small scale mining representative
b. big scale mining representative
c. Provincial representative
d. Mines and Geosciences Bureau Director
24. The People’s Small Scale Mining Protection Fund shall be of the national government share _______due the
Government.
a. 10% c. 15%
b. 12% d. 20%
25. Under the Local Government Code, small scale mining shall be within the regulatory
a. DENR Secretary c. MGB Director
b. Provincial Governor d. Municipal Mayor
26. Under the “People’s Small Scale Mining Act of 1991”, the extent of a small scale mining area that may be
awarded to the qualified applicant shall not exceed.
a. 5 has. c. 20 has.
b. 81 has. d. 10 has.
27. One form of the mineral agreement between the Government and Contractor wherein the Government shall
provide inputs to the mining operations other than the mineral resources is the
a. Co-production Agreement c. Mineral Production Sharing Agreement
b. Joint Venture Agreement d. Mining Lease Contract
28. A Financial or Technical Assistance agreement is negotiated by the DENR and approved by the
a. Congress of the Philippines c. President
b. DENR Secretary d. MGB Director
29. Assessment that explicitly takes into account the uncertainty of the physical, chemical and biological phenomena
associated with a project or activity.
a. EIS c. ERA
b. ECC d. EIA
30. Time needed to process and evaluate an EIS as project in environmentally critical areas
a. month to 1 year c. year to 6 years
b. weeks to 6 months d. less than 3 months
31. Type of project in which the EIS is reviewed y the DENR offices.
a. environmentally critical areas c. kalakalan 20 projects
b. environmentally critical projects d. none of the above
32. The project has minimal capitalization (less than P500, 000) and employment (less than 20 persons), and
discharges minimal waste.
a. environmentally critical areas c. kalakalan 20 projects
b. environmentally critical projects d. none of the above
33. Document issued by the Secretary of the DENR or his duly authorized representative certifying that the
proposed will not bring about an unacceptable environmental impact.
a. EIS c. ECC
b. EIA d. ERA
34. Systematic study of the relationship between a proposed project and its environmental including the human
health, biophysical/ecological, geophysical and socio-economic impacts of a project construction. Operation and
decommissioning
a. ECC c. EIS
b. EIA d. All of the Above
35. Responsible for reviewing the EIS with an eye toward issuing an ECC.
a. LGU c. DENR Regional Offices
b. EMB d. All of the above
36. Types of projects in the EIS system
a. kalakalan 20 projects c. environmental critical projects
b. environmental critical areas d. all of the above
37. Type of project in which the EIS is reviewed by the EMB.
a. kalakalan 20 projects c. environmental critical projects
b. environmental critical areas d. all of the above
38. Time needed to process and evaluate an EIS as environmentally critical projects.
a. months to 1 year c. week to 6 months
b. to 6 years d. < 3 months