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EM BOARD EXAM

MINING ENGINERING II

01 MINE EVALUATION

1) The ultimate objective of mine evaluation is to determine :


a) Volume and grade of reserves
b) Profitability of the mine
c) Mine life
d) Capital requirements
2) Which method of evaluating a mining venture does not consider the
time value of money?
a) Accounting Rate of Return
b) Net Present Value
c) Internal Rate of Return
d) Discounted Cash flow
3) In evaluating an extensively drilled mining property for which a
feasibility study has been completed, what key area should the
professional mining engineer focus on?
a) Status of mineral rights
b) Geology of the deposit
c) Validity of sampling and accuracy of assay results
d) Status of surface rights acquisition
4) When the mine owner is primarily concerned with recovering
investments as quickly as possible, what would be the best means of
quickly evaluating various mining projects?
a) Internal Rate of Return
b) Net Present Value
c) Payback
d) Discounted Cash Flow
5) What is the common dirty trick used to artificially raise the value of
samples?
a) High grading
b) Salting
c) Stock speculation
d) Mismanagement
6) Why is it often necessary to do tunneling even after a deposit has
already been explored by drilling?
a) To obtain bulk samples for metallurgical testing
b) To confirm drilling results
c) To increase confidence in reserve estimates
d) All of these
7) What is the net present value of a mine?
a) The difference between the total investments and future net cash
flows discounted over time
b) The sum of all future cash flows
c) The difference between gross income and operating costs
d) None of these

8) In the initial evaluation of a mining property, what do you call the


process of reviewing all existing data and information?
a) Pre-feasibility study
b) Due diligence
c) Feasibility study
d) None of these
9) In evaluating a mining project, a Monte Carlo technique is often used
to:
a) Analyze the risks
b) Forecast future prices
c) Estimate the costs
d) None of these
10) Why is a copper orebody very close to the surface usually
excluded from the computation of the ore reserves, or at best
discounted, before it is added to the rest of the reserves?
a) Because it is usually oxidized
b) Because of supergene enrichment
c) Because it can not be mined
d) All of these
11) Even after an orebody has been mined for several years, the
reserves may increase because of:
a) A positive results of additional exploration
b) Increase in metal prices
c) New technology
d) All of these
12) When the owner of a mine being evaluated is only interested in
maximizing his wealth, what measure of profitability will you use?
a) Net Present Value
b) Internal Rate of Return
c) Payback
d) All of these
13) For purposes of evaluating a mining property, what is the most
relevant information?
a) Geological potential
b) Resource potential
c) Mineable reserve
d) None of these
14) When the mine owner is primarily interested in the return on his
capital, what measure of profitability will you use?
a) Net present value
b) Internal rate of return
c) Payback
d) None of these

15) In drilling for evaluation purposes, a large hole diameter is usually


preferred because:
a) It leads to higher core recovery
b) Its cost is lower
c) It is faster
d) None of these
16) In evaluating a property already studied by another engineer,
what should your analysis focus on?
a) His recommendations
b) His conclusions
c) His methodology
d) His assumptions
17) What is a deposit that can be extracted at a profit called?
a) Mineral deposit
b) Ore deposit
c) Mineral resource
d) None of these
18) Which of these disciplines is useful in the exploration of a mining
property?
a) Geochemistry
b) Geology
c) Geophysics
d) All of these
19) The fundamental exploration principle called successive
elimination of risks means:
a) Doing the least cost operations first
b) Doing the least cost operations last
c) Doing the most expensive operation first
d) All of these
20) What would you do first in evaluating a virgin mining property?
a) Diamond drilling
b) Geological mapping
c) Exploratory tunneling
d) All of these
21) How does oxidation of a copper deposit affect copper recovery?
a) Increases
b) Decreases
c) Does nothing
d) All of these
22) Which of these do you find only in very arid regions?
a) Salt domes
b) Limestone
c) Coal
d) All of these
23) Which of the following is more likely to be found in the ultra-mafic
environment?
a) Chromite
b) Hematite
c) Chalcopyrite
d) None of these
24) What process generally results in the occurrence of high grade
zone immediately beneath the oxidized portion of a copper deposit?
a) Supergene enrichment
b) Salting
c) High grading
d) All of these
25) In a copper mining project where you expect to use flotation in
the in the concentrator, where will you expect maximum recovery?
a) The oxidized zone
b) The complex zone where copper is associated with zinc and lead
c) The copper sulfide zone
d) None of these
26) In which of the following geological rock formation will you rule
out of the presence of a coal seam?
a) Shale
b) Sandstone
c) Limestone
d) Diorite
27) To explore a horizontally lying deposit, how will you best position
your holes?
a) Inclined at steep angle
b) Inclined at a shallow angle
c) Vertical
d) None of these
28) When comparing mining projects worldwide, the multi-nationals
consider:
a) Regulatory framework
b) Consistency of government policies
c) Political stability
d) All of these
29) Big companies involved globally often hire well known political
analysts as consultants to evaluate country risks. What do they focus
on?
a) Overall political stability
b) Geology
c) World metal prices
d) None of these
30) In a diamond drilling operation to evaluate a mineral deposit, the
most important benefit from maximizing core recovery is:
a) Cost reduction
b) Better penetration rate
c) Less sludge to handle
d) Maximum information
31) In estimating the present value of a mining project, one discounts
future cash flows because:
a) It is an established practice
b) It is a proven formula
c) Cash in the future is worth less than cash today
d) None of these

32) Which of the following operations are useful in the evaluation of a


new mining property?
a) Geological mapping
b) Geochemical survey
c) Geophysical survey
d) All of these
33) Which of these statements about the general properties of coal is
correct?
a) The higher the coal rank, the higher the heating value
b) The higher the coal rank, the lower the inherent moisture content
c) The higher the coal rank , the higher the fixed carbon content
d) All of these
34) Which of the following increases the heating value of coal?
a) Volatile combustible
b) Fixed carbon
c) Low ash content
d) All of these
35) Which of the fallowing gases in a mine can be used to generate
electricity?
a) Carbon dioxide
b) Carbon monoxide
c) Methane
d) All of these
36) Which of the following is not a measure of a mine’s financial
viability?
a) Gross income
b) Internal rate of return
c) Net present value
d) Payback
37) You have been tasked to evaluate an old mine using a modern
mine valuation software? How ill you handle old data?
a) Discard all of them as they can not be used in a computer
b) Digitize relevant and useful data so they can be utilized
c) Do a separate manual evaluation using old data
d) Do all of these
38) An exhaustive evaluation of a mining project shows among others
the following: reserves of 100 million tons minable by open pit at a
stripping ratio of 1:1; copper grade of 1%; 100 million dollars of
capital investment needed; and a net present value of minus ten
million dollars. What will you recommend?
a) Acquire the mine because of the large because of the large reserves
and good grade
b) Do further studies
c) Reject the property
d) None of these
39) What is the most fundamental principle in sampling an orebody?
a) To take as many samples as possible
b) To make sure that the high grade portions are sampled
c) To take the sample as quickly as possible
d) To make sure that the samples are as representative of the orebody
as possible

40) Evaluating a copper deposit through drill holes in a grid pattern


would be mot applicable in a :
a) Vein type irregular deposit
b) Contact metasomatic deposit
c) Porphyry type deposit
d) All of these
41) Which of these deposits requires relatively close drill hole
spacing?
a) An irregular vein type deposit
b) A highly faulted deposit
c) A coal deposit with pinch-and-swell characteristics
d) All of these
42) Which of the following is not a measure of a mining company’s
financial performance?
a) Profit and loss statement
b) Balance sheet
c) Manpower complement
d) All of these
43) Why is drilling done only after conducting other operations such
as geological mapping, geochemical surveying and geophysical
surveying?
a) Drilling takes much longer time
b) It is the traditional approach
c) Drilling is much more expensive than the others
d) None of these
44) Which of the following is a geochemical method of exploration?
a) Seismic survey
b) Magnetic survey
c) Gravity survey
d) Soil sampling
45) Which of the following is a primary raw material in the
manufacture of cement?
a) Basalt
b) Granite
c) Limestone
d) Diorite
46) Which of the following is a primary raw material in the
manufacture of bricks?
a) Basalt
b) Gabbro
c) Clay
d) Adobe
47) Which of the following is a geophysical method of exploration?
a) Seismic survey
b) Gravity survey
c) Magnetic survey
d) All of these
48) Mine valuation is done primarily to:
a) Boost a company’s share value in the market
b) Make good press release
c) Please the investors
d) None of these

49) The pernicious practice of salting is most common in a :


a) Coal mine
b) Limestone quarry
c) Salt mine
d) Gold mine
50) Which of these comes first in evaluating an existing mine?
a) Pre-feasibility study
b) Feasibility study
c) Due diligence
d) Financial closure
51) Which of these zones in a copper deposit is likely to have much
higher grade than the rest?
a) Oxidized zone
b) Zone of supergene enrichment
c) Leached zone
d) None of these
52) The results of an Induced Polarization (IP) survey in a pyritic
copper deposit need to be validated by other surveys primarily
because:
a) IP surveys are unreliable
b) Pyrite and chalcopyrite have similar responses in an IP survey
c) Geochemical surveys are more reliable than geophysical surveys
d) All of these
53) Which of the following deposits can be sufficiently drilled with
holes spaced one kilometer apart or even more?
a) An irregular vein type gold deposit extending about five kilometers
along the strike
b) A deep-seated contact metasomatic deposit
c) A coal deposit of uniform thickness with hardly any faulting or
folding
d) None of these
54) Which of these measures the overall value of a mining project to
society and not just to the company?
a) Financial internal rate of return
b) Economic internal rate of return
c) Payback
d) None of these
55) Which of the following information is least relevant in the
evaluation of a mine?
a) General geology
b) Capital and operating cost
c) Minable reserves
d) Metal prices
56) To explore a gold vein dipping about 45 degrees, how will you
best position your holes?
a) Vertical holes
b) Inclined holes dipping about 45 degrees crossing the vein
c) Horizontal holes
d) None of these

57) Which of the following mining operations has become unprofitable


due to competition from cheap by-products from the refining of sour
crude oil?
a) Elemental sulfur
b) Salt
c) Phosphate
d) All of these
58) To explore a deposit consisting of several parallel vertically
dipping veins, which of the following would be most effective?
a) Several vertical holes in grid pattern
b) An adit crossing all the veins perpendicularly
c) An adit crossing, but almost parallel to, the veins
d) All of these
59) Which of the following can not be effectively explored by several
vertical holes in grid pattern?
a) An undisturbed horizontal coal seam
b) A large flat lying iron deposit
c) A large nickel laterite deposit
d) A contact metasomatic deposit
60) To quickly compare various mining projects according to how fast
the investments can be recovered, what measure of profitability
would you use?
a) Internal rate of return
b) Net present value
c) Payback
d) None of these
61) Which of the following does not enhance the global
competitiveness of a deposit?
a) Attractive government incentives
b) Large tonnage and high grade
c) Unstable government policies
d) None of these
62) The diamond used as a cutting medium in diamond drilling is
called:
a) Industrial diamond
b) Precious stone
c) Synthetic diamond
d) None of these
63) Diamond drilling is done in an exploration project primarily to:
a) Obtain water for the camp
b) Bore holes on the ground to extract gases
c) Obtain sub-surface information
d) None of these
64) Which of these is a multi-national corporation?
a) World Bank
b) Asian Development Bank
c) BHP Minerals
d) All of these
65) Which of these is a multilateral lending institution?
a) PNB
b) UCPB
c) BPI
d) World Bank

66) In mine valuation, which of these is relevant?


a) Price of the metal
b) Grade and tonnage of the deposit
c) Capital and operating costs
d) All of these
67) One optimizes the information from diamond drilling by:
a) Getting a high core recovery
b) Ensuring accurate analysis of the core samples
c) Drilling in the appropriate locations
d) All of these
68) Non-core drilling is often resorted to in the evaluation of fairly
homogeneous mineral deposits to:
a) Reduce costs
b) Facilitate the drilling program
c) Drill more holes
d) All of these
69) What exploration method measures the velocity of sound waves
through sub-surface material?
a) Seismic survey
b) Magnetic survey
c) Gravity survey
d) None of these
70) What gas in a coal mine constitutes a safety hazard but can be
converted into an asset when used to fuel a power plant?
a) Carbon dioxide
b) Carbon monoxide
c) Hydrogen sulfide
d) Methane
71) Which of the following is a pre-production cost that is usually
deferred for later recovery?
a) Exploratory tunneling
b) Overburden stripping
c) Driving of drain tunnel
d) All of these
72) Which of the following is a variable cost in a mining operation?
a) Security
b) Medical
c) Safety administration
d) Milling
73) Which of the following findings would make you conclude that a
mine is not financially viable?
a) When the internal rate of return is 30%
b) When the payback period is three years
c) When the net present value is negative
d) None of these
74) What do you call that stage when the financial requirements for a
project have been firmed?
a) Financial closure
b) Spud date
c) Inauguration date
d) None of these

75) What is the main risk in borrowing US dollars for a Philippine


mining project where the product is sold only to the domestic
market?
a) Expropriation
b) Nationalization
c) Inflation
d) Currency depreciation
76) Computer programming essentially means:
a) Installing a computer
b) Writing and running a computer software
c) Marketing computers
d) All of these
77) What is the word or image in a document in the Web that a web
browser selects to take him to other destinations called?
a) Site
b) Link
c) Browser
d) None of these
78) In computer lingo, what do you call the list of e-mail addresses
with single e-mail address set up that forwards all messages sent to
it to every address on the list?
a) Website
b) Service provider
c) Network
d) Mailing list
79) What is an ISP in computer lingo?
a) International Security Program
b) Internal Security Preparedness
c) Internet Service Provider
d) None of these
80) In computer lingo, what is a URL?
a) An e-mail address
b) A web address
c) A special software program
d) None of these
81) What do you call people who can steal information stored in
computers?
a) Spies
b) Espionage agents
c) Hackers
d) None of these
82) Which of the following is not a good investment if the value of an
investment were measured solely on the basis of resale value?
a) Land
b) Mercedes Benz car
c) Computers
d) A high profitable gold mine
83) Which of the following provides permanent storage for computer
data?
a) Hard disc
b) Floppy disk
c) CD-ROM
d) All of these

84) In which of the following is the internet useful?


a) Research
b) Education
c) Marketing
d) All of these
85) The code of Ethics for Mining Engineers is meant to tell you
a) What is legal/illegal
b) What is smart/stupid
c) What is sinful / not sinful
d) What is right/wrong
86) Responsible mining is meant to:
a) Totally eliminate all adverse environmental effects of mining
b) Substantially minimize the adverse environmental effects of mining
c) Prevent greenhouse gas emissions
d) None of these
87) Which of the following is unethical for a mining engineer?
a) Salting a sample
b) “doctoring” assay results
c) bloating ore reserve figures
d) all of these
88) If you were asked to revive the Marcopper operations as the
Resident Manager, what would be your immediate top priority?
a) Ensuring that the mining equipment are in good running condition
b) Providing cheap electricity to all towns in Marinduque
c) Ensuring that the tailings disposal system is properly designed and
operated
d) None of these
89) Why do mines help each other during mine disasters?
a) This is required by the government
b) Nobody else helps them
c) The top managers are friends
d) It is the right thing to do
90) A mining engineer’s valuation report on a mining property must
be as accurate as possible:
a) To avoid criticism from peers
b) To avoid censure from superiors
c) To get a promotion
d) Because it is the right thing to do
91) A mining engineer must quit his job if his employer is engaged in
activities detrimental to public interests, such us bloating ore
reserves to push the stock market upwards:
a) So that he can also buy stocks
b) To avoid being involved in controversy
c) For public relations purposes
d) Because it is the right thing to do

92) A coal underlain by a one-meter thick continuous horizontal coal


seam is open for concession applications. What is the minimum
number of coal blocks one has to apply for to supply the 25-year
requirements of a 300 megawatt power plant which requires 1
million tons of run-of-mine coal a year assuming a specific gravity of
1.25 for the coal as mined one block consisting of 1000 hectares and
a mining recovery of 100%
a) 2 blocks
b) 20 blocks
c) 200 blocks
d) 30 blocks
93) A company owns 10 blocks (1000 hectares per block) of coal
concession underlain by a 2-meter coal seam with a specific gravity
of 1.25 of export quality. The coal deposit can be mined by room-
and-pillar at 50% extraction but the coal has to be washed. The
buyers want to sign a long term coal supply contract for 5 million
tons of washed coal a year for 20 years. What is the minimum
recovery that has to be achieved at the washing plant?
a) 70%
b) 80%
c) 90%
d) 85%
94) Semirara Coal Corporation supplies coal to NPC plants on the basis
of import parity (delivered price plus tariff) on an equivalent BTU
basis. If NPC can buy imported coal of 10000 BTU per pound at 20 US
dollars per ton delivered and pays a tariff of 10% on the FOB price of
15 US dollars per ton, how much will SCC have to produce and deliver
its 8000 BTU per pound coal to break-even, assuming an exchange
rate of 40 pesos to one US dollar?
a) 688 pesos per ton
b) 704 pesos per ton
c) 640 pesos per ton
d) 800 pesos per ton
95) You manage a small high grade (3%) copper operations at a
capacity of 100 short tons per day at 300 days per year. Your mill
recovery is 90% and your selling price is US $ 1.00 per pound of
copper net of smelter charges. If your fixed costs total 30 million
pesos per year what should you average annual variable cost per ton
to be in order to break even, assuming 40 pesos per dollar?
a) 2160 pesos per ton
b) 1160 pesos per ton
c) 2000 pesos per ton
d) 1000 pesos per ton
96) A copper deposit has been extensively explored by driving tunnels
at levels 1300, 1200, 1100, and 1000, the level nomenclature
representing the elevation of the tunnel in meters above sea level. At
each level, the mineralized area and average copper grade has been
delineated and established as follows: L-1300- 200000 square
meters 1%; L-1200 – 100000 square meters- 0.7%; L- 1100-100000
square meters – 0.7%; and L-1000- 50000 square meters -0.6%. The
outcrop is at elevation 1400 and you decide to exclude the oxidized
portion of the deposit which extends down to 75 meters from the
outcrop. What is the average grade of the unoxidized copper ore
body?
a) O.8% ?
b) 0.75% ?
c) 0.7%
d) 0.6%
e) 1.0%
97) What is the true thickness of a old vein dipping 60 0 which was
intercepted by a vertical hole from depth 100 meters to 110 meters?
a) 3meters
b) 4meters
c) 5 meters
d) 6 meters
98) A gold vein dipping 450 has an apparent thickness of 2 meters
measured horizontally at the outcrop. You want to dig a vertical test
pit 10 meters away from the outcrop measured along the dip and at
the same elevation as the outcrop in order to get fresh samples from
the top to the bottom of the deposit. Assuming uniform thickness and
dip of the deposit, what is the minimum depth of the pit you have to
dig?
a) 10 meters
b) 11.4 meters
c) 12 meters
d) 20 meters
99) A truck working in an working in an open pit mine for 480 hours
during the month was under repair for 60 hours and on standby for
180 hours. What was the effective utilization of the struck?
a) 89%
b) 92%
c) 67%
d) 73%
100) In a truck and shovel operation, for times for a truck to position
itself at the shovel and be loaded are 0.5 minutes and 3 minutes
respectively. It then takes the truck 10 minutes to haul the ore,
dump it at the course ore bin and return to the shovel. How many
trucks do you need to keep the shovel busy with a little waiting time
for the trucks?
a) 4 trucks
b) 3 trucks
c) 5 trucks
d) 6 trucks
101) The heating value of a certain coal deposit with moisture content
of 20% is 8000 BTU per pound on an as received basis. What is the
heating value of said coal on a moisture-free basis?
a) 6100
b) 9600
c) 10000
d) none of the above
102) A copper mining operation produces 10000 dry short tons per day
of 1.0% copper grade which it sends to a concentrator, which in turn
produces 30% copper concentrate at a recovery of 90%.What is the
concentration ratio?
a) 37.5 to 1
b) 33.3 to 1
c) 27.5 to 1
d) 27.0 to 1

103) A mine produced 30000 tons in one month consisting of 25


working days. During that period, there were 800 underground
workers, four hundred whom average of 2 hours of overtime each
working day. In addition, there were 100 service support personnel
who had average 4 hours each working day and 50 supervisors, none
of whom worked overtime. Assuming there were no absences, what
was the mine’s overall productivity in tons per man-shift (a shift
constituting of 8 hours).
a) 1.12
b) 1.26
c) 0.83
d) 1.09
104) A shovel work 500 hours a month, was under repair for 100 hours,
and on stand-by for 50 hours. What was the shovel’s physical
availability?
a) 84.6%
b) 83.3%
c) 90.9%
d) 76.9%
105) How many long tons are there in short ton?
a) 1.12
b) 1.10
c) 0.89
d) 0.91
106) What is the copper equivalent (in percent) of a gold content of
0.01 ounce per ton, assuming a gold price of $400 per ounce, gold
recovery of 95%, copper price of$1.00 per pound, and copper
recovery of 90%?
a) 0.21%
b) 2.1%
c) 21%
d) 0.021%
107) An open pit coal mine has an overall stripping ratio of 10 cubic
meters to 1 ton of coal. If the owner decides to contract out both the
waste stripping and coal mining at a price per cubic meter of
material, What should be the minimum contract price for the mine to
break-even, assuming a selling price of coal of 1000 pesos to ox-
mine and a coal specific gravity of 1.25.
a) 92.59 per cubic meter
b) 92.00 per cubic meter
c) 91.59 per cubic meter
d) 91.00 per cubic meter
108) Wind turbines are now increasingly being used for power
generation, with the generating capacity directly proportional to the
cube of the wind speed. By what percentage will the capacity
increase with a 10% increase in wind speed?
a) 1000%
b) 30%
c) 33%
d) 3%
109) What is the book value of a fixed asset, originally purchased at 10
million pesos, being depreciated on straight-line basis at 20% per
annum at the end of the 3rd year?
a) 2 million pesos
b) 4 million pesos
c) 6 million pesos
d) 8 million pesos
110) A mining company was able to get the BOI to allow an
acceleration of he rate of depreciation of his fie assets y 100%. How
long will it take the company to fully depreciate an equipment on a
straight line basis , if the normal life of the equipment is 10 years?
a) 20 years
b) 5 years
c) 15 years
d) 2 years
111) Your mine breaks even at a copper grade of 0.5% at a price of
$1.00 per pound. You have now reached the lower grade portion of
the deposit with a grade of 0.4%, which you can still recover at 90%,
but contains gold assaying 0.01 ounce per ton. Assuming you can get
of $300 per ounce in the concentrate, what should be your minimum
gold recovery for the mine to break even?
a) 60%
b) 50%
c) 55%
d) 67%
112) On a particular day, your shovel in the open pit operated for 15
hours, was on stand-by for 5 hours and was under repair for 4 hours.
What was the effective utilization of the equipment?
a) 62.5%
b) 83.3%
c) 61.5%
d) 82.3%
113) What is the apparent thickness of a ten meter stick vertical gold
vein hit by a child hole inclined at 60 degrees from horizontal?
a) 5 meters
b) 15 meters
c) 17.32 meters
d) 20 meters
114) A copper mine delivers 18000 dry short ton of ore with a grade of
1% to the concentrator, which in turn mills and processes it at a
concentration ratio of 30 to 1 producing concentrate at a grade of
25%. What is the mill recovery?
a) 80%
b) 83.3%
c) 90%
d) 85%
115) 2 kilometer diversion tunnel is driven at a grade of +1%. If the
water inlet is located at elevation 2000 meters, what is the elevation
of the outlet?
a) 1980 meters
b) 2020 meters
c) 1990 meters
d) 2010 meters
116) A dragline runs for 10 hours, is under repair for another 10 hours,
and is on stand-by for 4 hours. What is the mechanical availability?
a) 50%
b) 41.7%
c) 16.7%
d) none of these
117) A railroad needs to be built from a mine located t elevation 2000
meters to a mill site at 1500 meters elevation. What is the minimum
length of the railroad I the allowable grade is 1%?
a) 100 kilometers
b) 200 kilometers
c) 500 kilometers
d) none of these
118) A copper gold deposit contains 0.4% Cu and 0.02 oz/ton. An
assuming the prices of copper an gold are $1.00/lb and$300/oz,
respectively, what is the total grade of the deposit in terms of copper
equivalent?
a) 0.67%
b) 0.57%
c) 0.77%
d) 0.64%
119) Using the straight-line method of depreciation, what will be the
residual value of a 1 million dollar bulldozer being depreciated at
16% per annum at the end of 5 years?
a) 0
b) 100000 dollars
c) 300000 dollars
d) none of these
120) Assuming that a 1000 megawatt power plant needs 10000 dry
short tons (DST) of coal with a heating value of 10000BTU/lb on dry
basis and your mine can only produce 5000 DST of coal at a heating
value of 8000 on dry basis, how much imported coal will you have to
blend with your own coal if imported coal has a heating value of
12000 BTU/lb on dry basis?
a) 4000 DST
b) 5000 DST
c) 6000 DST
d) 3000 DST
121) You are the manager of a company contracted to do pre-stripping
of a large copper deposit minable by open pit with total minable
reserves of 15 million tons and an overall stripping ratio of 2 to 1,
which the mine owner wants to reduce to 1 to 1 during operations. At
what average daily rate will you have to prestrip the mine if you are
given only six months and you have 25working days per month?
a) 30000 tons per day
b) 60000 tons per day
c) 100000 tons per day
d) 120000 tons per day
122) An underground mine has developed an incentive bonus scheme
which provides for a 50% bonus for development advance beyond
the standard of 3 meters per day. What is the total compensation
due a crew that made an advance of 105 meters during a 25 working
day month assuming there were no holidays and no night work?
a) 11250 pesos
b) 7500 pesos
c) 12000 pesos
d) none of these
123) What is the net annual foreign exchange savings for the country
by using production from a local coal mine producing 3000 tone per
day, assuming 25 dollars per barrel of imported oil and the cost of
producing the coal is 500 pesos per ton, of which 20 percent is in US
dollars to pay for foreign loans and the exchange rate is 50 pesos to
one US which 20 percent is in US dollars to pay for foreign loans and
the exchange rate is 50 pesos to one US dollar?
a) 75 million dollars
b) 73.2 million dollars
c) 66 million dollars
d) one of these
124) Assuming you are operating a second hand 10 megawatt power
plant at the mine for 300 days a year and are able to save 2 pesos
per kilowatt-hour by not buying from the grid, how long will it take
you to fully recover your investments, if you bought the plant at 288
million pesos?
a) One year
b) Two years
c) Three years
d) None of these
125) What is the elevation at the inlet of a two kilometer water diver
ion tunnel which was driving at a plus 1% grade the first 1000
meters and later driven at plus 16% percent grade? The outlet of the
tunnel from which tunnel driving started is at elevation 1000 meters.
a) 985 meters
b) 850 meters
c) 1150 meters
d) 1015 meters
126) At what grade should you drive a 2 kilometer water diversion
tunnel from the inlet end to meet at 500 meters from the inlet
another crew driving from a outlet at a grade of plus 1%? The outer
end is at elevation 1000 meters, while the inlet end is at elevation
1020 meters.
a) Minus 2%
b) Minus 1.5%
c) Minus 3.0%
d) None of these
127) You are the owner of a coal mine with a contract to supply 900
thousand tons of clean coal per year to a power plant. How much coal
do you have per day if your washing plant that produces clean coal
has a recovery of only 60% and your mine can operate only 300 days
a year?
a) 1800 tons per day
b) 3000 tons per day
c) 4000 tons per day
d) none of these
128) A cast-west trending gold vein dipping 45% to the north was
penetrated by a north-south drill hole inclined at minus 45% to the
south with a thickness of 2 meters. What is the true thickness?
a) 1.44 meters
b) 4 meters
c) 2 meters
d) none of these

129) A large porphyry copper deposit has been explored extensively y


drilling at grid pattern with 80 drill holes penetrating 100 meters of
mineralized zone averaging 1.5% copper, and 10 holes of 90 meters
thickness averaging 0.6%. What is the average grade of the deposit?
a) 0.80%
b) 1.00%
c) 1.50%
d) none of these
130) A gold vein dipping 60 degrees (from horizontal) needs to be
drilled to measure the true thickness. What should be the inclination
(from vertical) of the drill hole?
a) 30 degrees
b) 45 degrees
c) 60 degrees
d) none of these
131) Some coal deposits, such as the lignite deposit Canayan, Isabela ,
lose moisture very rapidly after exposure to the atmosphere and are
called free draining coals. What is the final heating value of a free
draining coal that was originally 5000 BTU per pound immediately
after mining but has lost of its moisture content after exposure to the
atmosphere?
a) 2500 BTU per pound
b) 6667 BTU per pound
c) 10000 BTU per pound
d) none of these
132) What is the apparent thickness of a 1 meter thick gold vein
dipping 15% when encountered by a vertical hole?
a) 2 meters
b) 3 meters
c) 4 meters
d) none of these
133) In a mine with 2000 employees where 100 were on sick leave and
another 100 were on vacation leave for a particular month, there
were 18 lost time. Assuming the employees worked for 25 days (for
eight hours) and no one worked overtime, what was the accident
frequency rate per million man-hours?
a) 50
b) 45
c) 100
d) none of these
134) In order to determine the true thickness of a 30 degree dipping
gold vein, you decide to drill a hole about 100 meters away? At what
inclination will you drill the hole?
a) -45%
b) -30%
c) -20%
d) none of these
135) What is the true thickness of a vein of a very regular thickness
that is vertically dipping and measured on the outcrop to be two
meters?
a) Two meters
b) Three meters
c) One meter
d) None of these
136) You are driving a horizontal adit at the 1200 meter level to reach a
vertically dipping vein whose outcrop appears at 1300 meter
elevation. The slope between the portal and the outcrop is about 45
degrees. You are advancing at 5 meters per day? How long will it
take you to hit the vein?
a) 10 days
b) 20 days
c) 30 days
d) 40 days
137) How many tons of copper ore at a grade of 1% will you have to
deliver to the mill to produce 36 tons per day of concentrate with a
grade of 25% at a mill recovery of 90%?
a) 2000 tons per day
b) 1000 tons per day
c) 3000 tons per day
d) none of these
138) How many days per year will a local coal mine producing 10
thousand tons per day have to operate to supply a power plant
requiring 1 million tons a year, of which 70% is imported?
a) 100 days
b) 30 days
c) 200 days
d) none of these
139) An existing 100 meter deep vertical cylindrical shaft with a
diameter of of 22 meters needs to be lined with one meter thick
concrete. What is the approximate volume of concrete needed?
a) 6000 cubic meters
b) 5000 cubic meters
c) 4000 cubic meters
d) 7000 cubic meters
140) What is the minimum depth of a vertical shaft that has to be
driven to reach a 45 degree dipping orebody which outcrops at
elevation 1400 meters, if the shaft collar is located about 100 meters
from the outer crop (measured horizontally), but at an elevation of
1380 meters?
a) 60 meters
b) 50 meters
c) 40meters
d) none of these
141) A mine feasibility study is needed in order to establish:
a) Only the technical viability
b) Only the financial viability
c) Both technical and financial viability
d) None of these
142) The most important and basic information, which the mining
engineer must ensure is as accurate as possible for an accurate
feasibility study is:
a) Volume and grade of reserves
b) Forecast of future metal prices
c) Environmental and social impact
d) Geology of the deposit

143) The feasibility of a metal mine is affected by:


a) volume and grade of reserves
b) capital and operating costs
c) metal prices
d) all of these
144) A sustained global decline in demand for metals generally leads
to:
a) Increase in metal prices
b) Decline in metal prices
c) No effect on metal prices
d) All of these
145) A deposit that can be mined at a profit is called:
a) Ore deposit
b) Mineral deposit
c) Vein deposit
d) Disseminated deposit
146) Modern mining companies are now committed a sustainable
development. What cost item must now be internalized and made
part of the operating cost to reflect this particular commitment?
a) Depreciation
b) Government royalties
c) Taxes
d) Cost environmental protection
147) Which of these is a non-cash cost?
a) Depreciation
b) Administrative
c) Taxes and royalties
d) Marketing
148) The feasibility of an open pit metal mine is dependent on:
a) stripping
b) grade
c) metal prices
d) all of these
149) Which of the following need not be included in a mine feasibility
study?
a) Reserves and grade
b) Mining method/milling process
c) Surface infrastructure
d) Detailed geology
150) Some top mining executives are so busy that they only read the
Executive Summary of a Feasibility Study. What should be contained
in the Executive Summary as minimum?
a) Brief introduction
b) Essential conclusions and introduction
c) Brief historical background
d) Brief geology of deposit
151) In a feasibility study, the quantitative effects of varying factors
such as metal prices, mine capacities, operating costs, on the overall
feasibility of the project are often shown. What is the process of
determining such relationships called?
a) Pre-feasibility study
b) Sensitivity analysis
c) Environmental scan
d) None of these
152) What do you call the returns that go back to the stockholders from
the net profit in a mining operation, which can be in cash or stock?
a) Capital
b) Cash flow
c) dividends
d) amortization
153) Which of the following price of imported equipment include duties
and taxes?
a) FOB price
b) C&F price
c) CIF price
d) None of these
154) Why is there a need to conduct feasibility studies?
a) To guide investors and top management
b) To comply with requirements of lenders
c) To comply with requirements o regulatory agencies
d) All of the above
155) What is that study hat can be submitted to support a loan
application?
a) Pre-feasibility study
b) Technical feasibility study
c) cost estimate
d) bankable feasibility study
156) Formerly low grade non-commercial gold deposits have become
viable in spite of lower gold prices mainly because of:
a) Technological advances
b) Additional government incentives
c) Increased global demand
d) All of these
157) A project with a very high debt-to-equity ratio is one that is:
a) Highly profitable
b) Highly leverage
c) highly liquid
d) none of these
158) Which of the following has a negative impact on the viability of a
mining project?
a) Low production costs
b) Short construction period
c) Product has well-developed market
d) None of these
159) If the feasibility study show that the proposed investments is
equal to the present value of future act net cash flows, it means that:
a) The mine will be profitable
b) The mine will be losing
c) The return on investments will just equal the discount rate
d) None of these
160) Which of the following is an indirect cost?
a) Duties
b) Taxes
c) Insurance
d) All of these

161) The Philippine coal mining industry ha declined since the 1980’s
mainly because:
a) The market has declined
b) Government incentives are inadequate
c) It has not been able to compete against cheaper imported coal
d) None of these
162) Which of the following assumptions in a feasibility study can be
ultimately lead to failure during project implementation?
a) Conservative estimate of metal prices
b) Underestimate of capital costs
c) Conservative estimate ore grade
d) None o these
163) What is a sensitivity analysis in a mining project feasibility study?
a) Analysis of the cycle of metal prices through a certain period
b) Detailed analysis of costs
c) Detailed analysis of the mining sequence
d) None of these
164) Which of the following is added back to the net profits to
determine the total cash floe given year in a mining operation?
a) Administrative costs
b) Duties and taxes
c) Depreciation
d) Manila Overhead
165) What distinguishes an ore deposit from a mineral deposit
a) Geology
b) Size
c) Economic viability
d) Mining method
166) What is the measure of project viability that considers the
project’s overall value to the national economy, not just to the
corporation, and thus uses shadow foreign exchange rates and
shadow pricing?
a) Financial internal rate of return
b) Economic internal rate of return
c) Net present value
d) Pay-back
167) Which of the following is disincentive to the mining industry?
a) Tax holidays
b) Accelerated depreciation
c) Export tax
d) None of these
168) Which of the following operations is most sensitive to power
rates?
a) Limestone quarry
b) Electronic component manufacturing plant
c) Copper mine/concentration
d) Small scale gold mine
169) What is the most common method of financing a mining project?
a) Debt
b) Equity
c) Debt and equity
d) None of these
170) How the pre-production are costs other than the cost of fixed
assets particularly exploration and development costs treated in a
mining feasibility study?
a) Considered as operating cost to be recovered during the first year of
operation
b) Considered as deferred costs to be spread out over the life of the
mine
c) Considered exactly like the fixed assets
d) None of these
171) How would a peso devaluation impact on a mine that has no
foreign debt export all its products and whose operating costs are
mainly peso costs?
a) Negatively
b) Positively
c) No impact
d) None of these
172) The geology of a deposit which is not viable today:
a) It provides the basis for future reserve expansion
b) It helps in planning mining operations
c) It helps in mine operational control
d) All of these
173) A mineral deposit which is not viable today:
a) Will never be viable later because minerals do not grow
b) May become viable later because of much higher metal prices
c) Will only become viable if a nearby higher grade deposit is
discovered
d) Will only become viable if there are government incentives
174) Which of the following is a cash cost?
a) Marketing
b) Makati Overhead
c) Mine Overhead
d) All of these
175) The ultimate purpose of a feasibility study is to:
a) Determine the technical and economic viability of a project
b) Push up share prices in the stock market
c) Make the stockholders happy
d) All of these
176) When determining the total cash flow from operations during the
year, depreciation is:
a) Subtracted from net income
b) Added to the net income
c) Disregarded
d) None of these
177) Which of the following is an incentive to the metal mining
industry?
a) Frequent changes in government policies
b) Corrupt bureaucracy
c) Export taxes
d) None of these
178) Which of the following would impact negatively on the feasibility
of an open pit copper mine?
a) too flat pit slope
b) prohibitive waste-to-ore ratio
c) very stringent environmental regulations
d) all of these
179) Which of the following would impact positively on the feasibility of
a gold mine?
a) Reserve depletion
b) Stringent environmental regulations
c) Imposition of additional taxes by local government units
d) High gold prices
180) Which of the following mining operations would be least sensitive
to the transportation cost of the final product?
a) Limestone quarry
b) Coal mine
c) Copper mine
d) Gold mine
181) Which of the following operations would not be sensitive to
electric power rates?
a) A small scale gold operations in Diwalwal
b) A copper smelter
c) A coal mine using electric an electric driven bucket wheel excavator
d) All of these
182) Which of the following will be very sensitive to interest rates?
a) A small scale gold mine financed solely by the owner
b) A straight shipping copper mine financed by 100% equity
c) A copper mine with a 75:25 debt-to-equity ratio
d) None of these
183) Which of the following costs excludes the inland transport cost of
imported supplies?
a) FOB
b) C&F
c) CIF
d) All of these
184) Which of the following costs exclude freight
a) FOB
b) C&F
c) CIF
d) None of these
185) Which of the following should be include in the mine operating
cost and not a fixed asset to be depreciated over time?
a) Cost of hand shovels
b) Cost of a trolley locomotive
c) Cost of mine hoist
d) None of these
186) Mine design can be done by hand or by using a Computer aide
Design (CAD) system. CAD is extensively used because:
a) It can be substitute for management decisions
b) It is the in “thing in the industry
c) It automatically corrects wrong data
d) It facilitate the designing process
187) The programs or the instructions that enable the computer to do it
work are collectively called:
a) Hardware
b) Network
c) Software
d) Internet

188) Communications in computer is commonly called:


a) Telex
b) Express mail
c) E-mail
d) Hardware
189) In order to access the worldwide internet in mines located areas,
the company must primarily attend to:
a) Access roads and bridges
b) Power and telecommunications systems
c) Water works
d) None of these
190) The Y2K bug was feared by many due to:
a) The fact that computer technology is fast advancing
b) The design of existing computer systems which use only 2 digits for
the year
c) An insects that affects hardware
d) None of these
191) Which is the most recent development in fast changing computer
industry?
a) The personal computer revolution
b) The internet revolution
c) Microprocessor development
d) None of these
192) A computer program designed to create files out of records is
called:
a) Database
b) Spreadsheet
c) Word processor
d) None of these
193) Graphical representations of an application, document, or folder in
a computer are called:
a) Mouse
b) Windows
c) Desktop
d) Icons
194) The ultimate output from the computer is:
a) Analog data
b) Digital data
c) Information
d) None of these
195) An office-wide interconnection of computers is usually called:
a) WAN
b) LAN
c) Gateway
d) Global internet
196) What do you call he mischievous little programs that often sneak
into computers?
a) Demo software
b) Freeware
c) Viruses
d) None of these

197) In mining industry, computers are used to handle:


a) Repetitive calculations
b) Complex mathematical calculations
c) Calculations involving large amount of data
d) All of these
198) Which of the following is a special computer application?
a) Use as word processing
b) Use as spread sheet
c) Use as database
d) CAD
199) Which of the following is software?
a) CPU
b) Mouse
c) Keyboard
d) None of these
200) Which of the following is hardware?
a) Monitor
b) Printer
c) Microprocessor
d) All of these
201) A locally-assembled computer without a name is usually called:
a) A clone
b) A compatible
c) All of these
d) None of these
202) The collection of networks and computers all over the world which
share information through agreed protocols is known as:
a) Server
b) Page
c) Internet
d) Multimedia
203) What do you call a program to connect to sites in the Internet?
a) Server
b) Information highway
c) Bookmark
d) Browser
204) To make a computer work, one needs:
a) Hardware
b) Software
c) People
d) All of these
205) Who is ultimately in charge of a computer?
a) Hardware
b) Software
c) People
d) All of these
206) What is the smallest unit for the storage capacity of a computer
a) Gigabyte
b) Kilobyte
c) Terabyte
d) Byte

207) One of the most recent advances in integrating mine planning ad


open pit mining operation is the use of CAES. What does it stand for?
a) Computer and Engineering Systems
b) Computer and Equipment systems
c) Computer Aided Earthmoving System
d) None of these

208) In a personal computer, the floppy drive is referred to as:


a) Drive B
b) Drive C
c) Drive A
d) None of these
209) One popular software that has been developed o help mine
operators compile and analyze volumes of data generated through
the life of a mining project is called GIS. What does this stand for?
a) Geologic Information System
b) Geologic Information Service
c) Geographic Information System
d) None of these
210) Which of the following is a software package used in the mining
industry?
a) Vax
b) Unix
c) Hewlitt-packard
d) Datamine
211) Which of these is not a name of a microprocessor?
a) DOS
b) Pentium
c) Alpha
d) K6
212) Which of the following is an input device?
a) Printer
b) Monitor
c) Keyboard
d) All of these
213) What is a notebook in computer lingo?
a) A desktop computer
b) A palmtop computer
c) A laptop computer
d) None of these
214) In the modern mine, a software has been developed to enable the
user to perform quality assessment from the data being accumulated
on field equipment. This real-time software is known as ATS. What
does this stand for?
a) American Trading System
b) Automatic Tracking System
c) Asset Tracking Software
d) None of these
215) What is one megabyte
a) 1000000 bytes
b) 10000000000 bytes
c) 1000000000000 bytes
d) none of these
216) What are handheld computers called?
a) Desktop
b) Laptop
c) Notebook
d) Palmtop
e) What is the current practice of trading goods directly between sellers
and users via the internet called?
f) Free trade
g) Direct buying
h) E-commerce
i) Wholesale trading
217) What is the technology that is now used to simulate mine layouts,
dynamic operations, and mine environment in a computer called?
a) CAD
b) GPS
c) Virtual Reality (VR)
d) None of these
218) In computer lingo, being online means:
a) Being able to do word processing
b) Being able to use spreadsheet software
c) Being connected to a network of computers
d) None of these
219) In order to make mine surveying faster, more accurate, and
cheaper, what equipment would you most urgently need to
supplement your computer aided design system?
a) Transit
b) Brunton compass
c) GPS
d) None of these
220) During the rollover from 1990 to 2000, the so-called “Y2K bug”
a) Severely disrupted computerized operations worldwide
b) Severely disrupted computerized operations in developed countries
c) Severely disrupted computerized operations in third world countries
d) Turned out to be much less disruptive than expected
221) Which of the following is an output device
a) Printer
b) Mouse
c) Keyboard
d) None of these
222) What is the device used to connect a computer with other
computers over the phone lines?
a) Transformer
b) Inverter
c) Modem
d) None of these
223) In a mining exploration project where you have a computer and
can communicate by e-mail, which of the following tools will enable
you to demonstrate and show your head office in Manila actual field
conditions in the most expeditious and effective manner?
a) A 2-way radio
b) A TELEX machine
c) A digital camera
d) None of these
224) Which of the following is not a storage device?
a) CD-ROM
b) Floppy disc
c) Printer
d) Hard disc
225) Technical papers in conferences can be accessed through the
internet through hard copies. Which of the following is a hard copy?
a) Papers in a hard bound book
b) Papers in a technical magazine
c) Mimeographed copies
d) All of these
226) Under which category does computer-aided drafting fall?
a) Word processing
b) Spreadsheets
c) Database
d) Graphics
227) The only advanced program for modeling block cave mines is:
a) PC-BC (GEMCON)
b) VULCAN
c) SURPAK
d) HERITAGE 3-D and 4-D
e) PC-MINE (GEMCOM)
228) What is the term of a Temporary Safety Engineer/ Inspector
Permit?
a) 1 year
b) 4 years
c) 2 years
d) 6 years
e) 3 years
229) Philex Mining purchased belt for its cablebelt haulage system at
its Padcal Mine in Benguet. Each belt is wound on separate coils for
easy handling and transport. If each set of coil is wound on a wooden
core 61.0 cm in diameter and the final coil diameter is 3.0 meters,
what is the total length of the conveyor belts purchased by Philex?
a) 1916.00 meters
b) 1016.00 meters
c) 1216.00 meters
d) 1316.00 meters
e) 1106.00 meters
230) when price is above the equilibrium price, the quantity supplied
exceeds the quantity demanded resulting to:
a) undersupply
b) shortage
c) surplus
d) supply-demand equilibrium
231) It causes the accrual of a certain present value to a given amount
in the future.
a) Depreciation
b) Discount rate
c) Annuity
d) Depletion
e) All of the above

232) It refers to the rate worth of an asset at the end of its economic
life:
a) Acquisition value
b) Salvage value
c) Depreciated value
d) Par value
e) Face value
233) The compensation of an exhaustible resource to produce products
or services is called:
a) Exhaustion
b) Depreciation
c) Exploration cost
d) Resource replenishment
e) Depletion
234) A 4-D optimization software in mine planning produces which the
following?
a) Economic analyses such as DCF-ROI, payback period, etc
b) All of the above
c) Stripping ratio
d) Mineable reserve
e) Crude pit design
235) Under the New Mining Code, FTAA’s are negotiated by the DENR
but who is the approving authority?
a) Congress of the Philippines
b) The President
c) MGB Director
d) Philippine Senate
e) DENR Secretary
236) Benguet-Dizon Copper Mine was shutdown last year mainly due to
what reason?
a) Lahar
b) Cultural minorities (the Aetas) took over the mining area
c) Labor strike
d) Refusal of Mr. Gordon to return over Subic
e) Depletion of ore reserve mineable by open pit
237) If Ρ 6,500 will be needed after five (5) years, how much should be
invested now if the interest rate is 7.5%per annum compounded
annually?
a) Ρ 1 ,000.00
b) Ρ 4532.63
c) Ρ 4062.50
d) Ρ 4527.63
e) Ρ 4067.50
238) In top mine management organizations, what does COO stands
for?
a) Chief steward of the environment
b) Chief overseer of operations
c) Chief head of DGO
d) Chief operating officer
e) None of these

239) What advantages or benefits a mining engineer can get in


computerization?
a) 2D and 3D view
b) all of the above
c) accuracy
d) speed
240) In mine valuation, DCF-ROI means?
a) Deductible cash flow return on investment
b) Tax deductible return on investment
c) Discounted cash flow return on investment
d) Deductible cashflow fund
241) It is the indicator used in measuring the profitability of a mining
project. It involves the calculation of an interest rate which when
used in discounting future cashflows, makes the total discounted
cashflows equal to the present value of project all cost.
a) Net present value
b) Discounted payback period
c) Accounting rate of return
d) Discounted cashflow rate
242) Which government agency issues Mine/Quarry Foreman’s
Licenses?
a) PNP-FE Division, Camp Crame
b) Phil. Society of Mining Engineers (PSEM)
c) PIMMGE National
d) PRC Board of Mining Engineering
e) MGB Central Office
243) The main asset of any mine is:
a) Labor force
b) Equipment assets
c) Ore reserve
d) Security condition
e) Capital availability
244) The minimum ore grade by which a mineral may be extracted at
breakeven condition and at the same time maximizing utilization of
mineral resource is called
a) Optimum cut-off grade
b) Digging grade
c) Breakeven cut-off grade
d) Eye-ball grade
e) Inverse distance square
245) It is a sum of money that would be invested today to be
equivalent to a future value that accrues over a given period of time.
a) Capital
b) Depreciation
c) Future fund
d) Present value
e) Sinking fund
246) A new open pit mine will be develop under the Financial and
Technical Assistance Agreement of FTAA of the New Mining Act of
1995. The operating parameters of this mine are defined as follows:
-Annual mill Capacity 10,440,000 MT
-Stripping Ratio 0.77:1
-Shovel bucket size 9.19 cu.m.
-Shovel Utilization 80 %
-Bucket fill factor 90 %
-Truck size/payload 77.10 MT
-Truck fill factor 95%
-Truck spot time 0.33 minutes
-Load cycle time 0.50 minutes
-Time efficiency 50 min per 60 min
As the Mine Engineer of the open pit, how many power shovels will you
order for purchase (excluding spare units) in order to sustain the ore
requirements of the mill and at the same time maintaining a workable
and safe geometry by promptly stripping the waste?
a) 2 units
b) 1 unit
c) 4 units
d) 3 units
e) 5 units
247) Which of the following refers to the periodic allocation of an
amount of money over the useful life of an equipment or asset
intended to replace said asset after its economic life? This amount is
tax dedutable under Philippine taxation system.
a) Diminishing annuity
b) Amortization
c) None of the above
d) Sinking fund
e) Depreciation
248) What do you call the survey instrument that uses a plane table
installed on a tripod with a transit that directly plots actual distances
and bearings of survey stations?
a) Plane table and alidade
b) Direct reading Brunton compass
c) Theodolite
d) Global positioning system or GPS
e) Clinometer
249) Under the mining law, all submerged lands in the exclusive
economic zone of the Philippines are declared as what?
a) Mineral reservations
b) Aquatic reservations
c) Off-shore reservations
d) None of the above
e) Marine reservations
250) The total value realized in the sale of a mineral product at a set
selling price:
a) Total cost
b) Profit
c) Total revenue
d) Gross profit
251) It is an accounting process of converting the cost of an asset into
an expense account over its estimated useful lie:
a) Cost distribution
b) Salvage value assignment
c) Depletion
d) Acquisition allowance
e) Depreciation
252) What do you call a mineral that has sufficient usage and value and
can be extracted economically?
a) Ore
b) Deposit
c) Gangue
d) Resource
253) The best way to increase profits is by:
a) Increase production volume to increase sales
b) Reduce production costs
c) Increase the selling price
d) All of the above
254) It refers to a series of uniform payments becoming payable at the
end of every year for certain number of years.
a) Annuity
b) Depletion
c) Depreciation
d) Sinking fund
e) Lease payment
255) Which of the following is an economic mineral?
a) Dacite
b) Andite
c) Chalcopyrite
d) Diorite
e) Laterite
256) Which of the following are not considered operating costs?
a) Plant machineries and equipment
b) Power and fuel
c) Labor
d) Supplies and materials
257) All operating costs other than cost of raw materials and direct
labor.
a) Semivariable costs
b) Sinking costs
c) Total costs
d) Variable costs
e) Overhead costs
258) Under the local Government Code, who approves small scale
mining permits?
a) MGB Director
b) Municipal Mayor
c) Provincial Mayor
d) DENR Secretary
e) President
259) The mine waste and tailings disposal is also known as what?
a) P.D. 1251
b) P.D. 1250
c) R.A 7076
d) E.O 1023
e) PD 463
260) Who approves Mineral Profit Sharing Agreements or MPSA’s?
a) MGB Director
b) PENRO in consultation with CENRO
c) DENR Secretary
d) Provincial Governor
e) MGB Regional Director
261) Which of the following is not a variable cost?
a) Raw material
b) Fuel
c) Royalty
d) Depreciation
262) A 30 degree azimuth is located on which quadrant?
a) None of the above
b) First quadrant
c) Fourth quadrant
d) Third quadrant
e) Second quadrant
263) Heritage Holdings Ltd. Declared stock options for all its mining
engineers during its stockholders meeting in 1995 at a price half the
par value of Ρ 10.00 per share. The mine Superintendent purchased
1,000 shares of stock at said price option. Three (3) years later, he
sold all his shares of tock at Ρ 15.00 per share. How much profit
(before tax) did he realize?
a) Ρ 5,000.00
b) Ρ 20,000.00
c) loss
d) Ρ 10,000.00
e) Ρ 15,000.00
264) If a survey station viewed from a T-2 Theodolite digital transit has
an azimuth reading of S89W, what is its azimuth?
a) 267 degrees
b) 178 degrees
c) 98 degrees
d) 89 degrees
e) 45 degrees
265) A mining feasibility study must considered include which of the
following essential mine expenditures?
a) Environmental, mine rehabilitation and socio-economic costs
b) All of the above
c) Operating and overhead costs including capital financing
d) Depreciation of capital equipment
e) Depletion of exploration expenses
266) It refers to the error committed in the determination of sample
mean, relative to the true value of an orebody.
a) Sample salting
b) Sampling error
c) Relative error of the mean
d) Kriging
267) All mine feasibility studies should be signed by?
a) A licensed mining engineer
b) The buyer of mineral products
c) The MGB Director
d) An investment consultant
268) The angle which a certain line makes with the meridian, measured
clockwise is called?
a) True meridian
b) None of the above
c) Bearing
d) Meridian
e) Azimuth
269) Which of the following is hardware?
a) Excel
b) Lotus
c) None of the above
d) Hard Disk
e) Wordstar
270) Being the Chief Mining Engineer of a big Copper/ gold open pit
mine, you are involved in equipment selection for appropriate off-
highway dump trucks for the mine. You are assigned to review the
technical specifications and features of 120-tonner WABCO trucks.

If the truck’s engine has a rated horsepower rating of 250 HP and


the truck accessories are likewise rated as follows: main oil pump-5
HP; alternator – 3 HP; aircon- 2 HP; all other electrical and support
accessories- 5 HP, what is therefore the truck’s flywheel or brake
horsepower rating?
a) 265 HP
b) 290 HP
c) 235 HP
d) 200 HP
e) 150 HP
271) Which is the brain center of a computer?
a) Mouse
b) Monitor
c) Keyboard
d) Printer
e) CPU
272) A mine is projected to earn the following net cashflows:
1995 - Ρ 3.0 million
1996 - Ρ 3.0 million
1997 - Ρ 3.5 million
1998 - Ρ 3.0 million
1999 - Ρ 2.5 million
If the mine was constructed at a cost of Ρ 10.0 million provided
from a loan borrowed at 122% interest per year, what is the net
Present Value or NPV of the mine?
a) Ρ 850, 000
b) Ρ 800, 000
c) Ρ 950, 000
d) Ρ 900, 000
273) Chemical grade chromite concentrates are also used in the
manufacture of
a) Paint pigments
b) Leather tanning agents
c) Dyestuffs
d) All of the above
e) Wood preservatives

274) The area of a cross-section of an ore body or areas bounded by


topographic contours can be calculated by using which instrument?
a) Planimeter
b) Transit
c) Pantograph
d) GPS instrument
275) What is the maximum area covered by a Small Scale Mining
Permit?
a) 40 has.
b) 10 has.
c) 30 has.
d) 50 has.
e) 20 has.
276) A mine has a minable ore reserve of 100 Million MT blocked by 70
drill holes at a grid drilling of 100 x 100 meters. Orebody modeling
was done by IDS method of Inverse Distance Square method using a
flat search radius of 100.00 meters. Pit optimization was done using
the computerized 4-DLerch Grossman Algorithm. As the Chief Mining
Engineer of the company and using the Taylor’s Formula for tonnage
optimization, at what capacity range will you deign the mine?
a) 11, 500 to 17, 000 TPD
b) 21, 500 to 23,750 TPD
c) 5, 000 to 7, 500
d) 17, 500 to 20, 500 TPD
e) 7, 000 to 10, 000 TPD
277) What is the purpose of roasting the Lepanto copper concentrate
prior to delivery to PASAR smelter?
a) Lock of space to stock the Lepanto concentrate in the PASAR yard
b) To increase gold content and demand better price
c) To reduce moisture content
d) To reduce arsenic content of the concentrate to acceptable level
before smelting at PASAR
278) Breakeven means:
a) Zero profit
b) Windfall profit
c) Negative profit
d) Positive profit
279) It is a government tax paid by operators upon the extraction of
mineral products
a) Income tax
b) Value added tax
c) Mine waste and tailings fees
d) Excise tax
e) Tax credits
280) What is the Government Act that regulates the practice of Mining
Engineering in the Philippines and licensing and registration of
personnel in mines and quarries?
a) RA 1586
b) RA 4274
c) RA 7076
d) RA 1270
e) RA 7442
281) What is the major by-product of PASAR that is being purchased by
Philphos and uses the as its raw material in the manufacture of
fertilizers?
a) Copper concentrates
b) Gypsum
c) Slag
d) Selenium
e) Sulfuric acid
282) IMCROME is a smelter located in Manticao, Misamis Oriental due
to availability of cheap power from NPC, Iligan. What is its main
product?
a) Ferrosilicon
b) Ferromanganese
c) Refractory chromite
d) Charge chrome
e) Copper cathodes
283) It is a mine’s capacity where total revenues equals total costs:
a) Break-even stripping ratio
b) Optimum capacity
c) Breakeven capacity
d) Cost-volume limit
e) Critical capacity
284) In top mine management organizations, what does CEO stand for?
a) Chairman of the board
b) Chief environmental officer
c) Chief Operating Officer
d) Chief Executive Officer
e) None of these
285) A assay ton is equivalent to:
a) 20 grams
b) 29.199 grams
c) 26.93 grams
d) 30 grams
286) Which of the following is otherwise known as the toxic
substances, hazardous and nuclear waste control act of 1990?
a) EO 211
b) PD 463
c) RA 4274
d) RA 7979
e) RA 6969
287) What is the occupation fee for mineral reservations?
a) Ρ 500.00 per ha.
b) Ρ 100.00 per ha.
c) Ρ 200.00 per ha.
d) Ρ 300.00 per ha.
e) Ρ 400.00 per ha.
288) It refers to the ratio of earnings from an investment an the
amount invested for a specified period:
a) Equity ratio
b) Interest ratio
c) Quick ratio
d) Current ratio

289) It refers to the representative portion of a population or a mineral


mass:
a) population
b) statistics
c) sample
d) parameter
290) It refers to the present worth of future earnings less the present
value of expenditures needed to bring a mine in operation:
a) mine valuation
b) purchase price
c) present value
d) future value
291) A hardwood timber is used as post to support and average load of
20,000 lbs., 5 feet high. If the timber has a compressive stress of
900 psi, what would be the ideal size of timber post most economical
for the purpose?
a) 8 x 6 inches
b) 10 x 10 inches
c) 6 x 6 inches
d) 4 x 6 inches
e) 12 x 14 inches
292) What refers to the actual number of years that an asset is kept or
maintained?
a) service life
b) depletion
c) Economic life
d) Depreciation
e) obsolescence
293) It refers to the resources of economic value owned by business
entities which are used in generating income from operations
a) management
b) overhead
c) interest
d) assets
e) profit spread
294) It preparing mine feasibility studies, which of the following
information reflect the economic viability f a mining project?
a) All of these
b) Internal rate of return or IRR
c) Discounted cashflow return on investment or DCF-ROI
d) Net present value or NPV
e) Payback period
295) It is the grade at which a mineral is extracted and result into
maximum profits
a) Break-even cut-off grade
b) Mine head
c) Mill head
d) Assay certificate
e) Optimum cut-off grade
296) Which of the following is the most widely used mine planning
software applied in pit optimization:
a) Whittle 3D or 4D
b) Gemcom
c) Datamine
d) None of the above
e) Lerch grossman (standard)
297) Aside from the core and drill cuttings, other samples obtained in
diamond drilling are:
a) Slurry
b) Drilling mud
c) Flush-out water
d) Sludge
298) Under the new mining law, what is the maximum area of a Quarry
Permit?
a) 4 has.
b) 3 has.
c) 2 has.
d) 81 has.
e) 5 has.
299) It refers to the writing-off of a borrowed capital by periodically
setting aside a certain amount of money from the earnings where the
capital was utilized.
a) Sinking fund
b) Income
c) Capital recovery fund
d) Capital amortization
e) None of the above
300) What is the maximum area that may be granted to qualified
persons applying for FTAA?
a) 1,000 blocks
b) 2,000 blocks
c) 3,000 blocks
d) 5,000 blocks
e) 4,000 blocks
301) Under the law, what is the minimum age required for an individual
to be allowed work or employed in underground mines?
a) At least 35 years old
b) 16 years old
c) 21 years old
d) 18 years old
e) 18 years old
f) 25 years old
302) What is the reference point in reading an azimuth?
a) South-counterclockwise
b) North-clockwise
c) North-counterclockwise
d) South-clockwise
e) Due east clockwise
303) It is the act of enriching samples for testing either intentionally or
accidentally:
a) Sample salting
b) Upgrading
c) Test pitting
d) Highgrading

304) It refers to the continuous compounding of earned interests and


principal at any given time.
a) Continuous compounding
b) Secret compounding
c) Simple compounding
d) Non-discrete compounding
e) Discrete compounding
305) What is the area covered by one (1) meridional block used in
designating exact geographical locations of mineral claims to avoid
overlapping?
a) 51 has.
b) 61 has.
c) 81 has.
d) 71 has.
e) 91 has.
306) A Mining Engineer shall report to proper authorities’ acts or
omissions relative to the practice of the profession which are?
a) Prejudicial to his family
b) Prejudicial to public interest and welfare of the people
c) Prejudicial to his own interest
d) None of the above
e) Prejudicial to his competitor
307) What is the net present value of a mine?
a) The difference between the total investments and future net cash
flows discounted over time.
b) None of these
c) The sum of all future net earnings
d) The difference between net gross income and operating costs.
308) Modern mining companies are now committed to sustainable
development. What cost item must now be internalized and made
part of the operating cost to reflect this particular commitment?
a) Depreciation
b) Taxes
c) Cost of environmental protection
d) Government royalties
309) When the mine owner is primarily concerned with recovering his
investments as quickly as possible, what would be the most
appropriate measure of quickly evaluating various mining projects?
a) Net Present Value
b) Payback
c) Internal Rate of return
d) Discounted Cash Flow
310) The 1987 Philippine constitution makes it possible for fully-owned
foreign companies to participate in the Philippine mining industry
through a:
a) None of these
b) Mineral Agreement
c) Financial or Technical Assistance Agreement
d) Service Contract
e)
311) While evaluating the possible reopening of the Black Mountain
Mine along the Bued River on the road going to Baguio, you find that
the only viable option to dispose of the mine tailings isto impound
the tailings in temporary ponds along the river which are flushed
every rainy season. What will you recommend?
a) Do nothing
b) Not to reopen the mine
c) Reopen the mine, but suggest that the tailings be flushed only at
night
d) Reopen the mine, even if tailings are flushed into the river
312) A shovel worked 500 hours a month, was under repair for 100
hours, and on stand-by for 50 hours. What was the shovel’s physical
availability?
a) 84.6%
b) 76.9%
c) 90.9%
d) 83.3%
313) The owner of a mine being evaluated is primarily interested in
mining his wealth, what measures of profitability will you use?
a) Net present Value
b) Payback
c) Internal Rate of Return
d) None of these
314) Who was the famous mining engineer who later became President
of the United States during the 20th century
a) Hoover
b) Taft
c) Roosevelt
d) McKinley
315) Which method of evaluating a mining venture does NOT consider
the time value of money?
a) Internal Rate of Return
b) Net Present Value
c) Discounted Cash Flow
d) Accounting Rate of Return
316) Communications by computer is commonly called
a) Hardware
b) Telex
c) Express mail
d) E-mail
317) In a feasibility study, the quantitative effects of varying factors
such as metal prices, mine capacities, operating costs, capital costs,
on the overall feasibility of the project are often shown. What is the
process of determining such relationships called?
a) Environmental scan
b) None of these
c) Sensitivity analysis
d) Pre-feasibility study

318) Semirara Coal Corporation supplies coal to NPC plants on the basis
of import parity (delivered price plus tariff) on an equivalent BTU
basis. If NPC can buy imported coal of 10000 BTU per pound at 20 US
dollars per ton delivered and pays a tariff of 10% on the FOB price of
15 US dollars per ton, how much will SCC have to produce and deliver
its 8000 BTU per pound coal to break-even, assuming an exchange
rate of 40 pesos to one US dollar?
a) 704 pesos per ton
b) 640 pesos per ton
c) 688 pesos per ton
d) 800 pesos per ton
319) Which island in the Philippines is the largest product of coal?
a) Cebu
b) Semirara
c) Luzon
d) Mindanao
320) The IPRA law was passed mainly to:
a) Provide jobs for NGOs
b) Provide jobs for indigenous people
c) Promote the rights of indigenous people
d) Prevent mining in tribal lands
321) Which of the following is hardware?
a) Printer
b) Monitor
c) All of these
d) Keyboard
322) To be globally competitive the Filipino mining engineer must strive
as possible to be:
a) Sensitive to foreign cultural differences
b) All of these
c) Technically competent
d) Proficient in English
e) Computer literate
323) Some top mining executives are so busy that they only read the
Executive Summary of a Feasibility Study. What should be contained
in the Executive Summary as a minimum?
a) Brief introduction
b) Essential conclusions and recommendations
c) Brief geology of deposit
d) Brief historical background
324) The collection of networks and computers all over the world which
share information through agreed protocols is known as:
a) Multimedia
b) Internet
c) Page
d) Server
325) What is the study that can be submitted to support a loan
application?
a) Pre-feasibility study
b) Bankable feasibility study
c) Technical feasibility study
d) Cost estimate
326) One popular software that has been developed to help mine
operators compile and analyze volumes of data generated through
the life of a mining project is called GIS. What does this stand for?
a) Geologic Information System
b) Geographic Information System
c) None of these
d) Geologic Information Service
327) What is meant by the privatization of PASAR?
a) Sale of government interests
b) Sale of the interests of the Filipino mining companies
c) Sale of the foreign interests
d) All of these
328) What is the common term for highly-intensive hand-gut mining in
the Philippines?
a) Glory-hole mining
b) Camote mining
c) Underhand mining
d) None of these
329) A well-managed mine is one that
a) Does all of these
b) Complies with environmental/safety rules
c) Pays fair wages for its workers
d) Makes maximum profits for the stockholders
e) Does none of these
330) How many long tons are there in a short ton?
a) 0.89
b) 2.22
c) 0.91
d) 1.10
331) Formerly low grade non-commercial gold deposits have become
viable in spite of lower gold prices mainly because of
a) None o these
b) Technological advances
c) Government intervention
d) Increase of gold inventory
332) What is the main document that needs to be submitted and
approval prior to the issuance of an Environmental Compliance
Certificate in an environmentally-critical area?
a) Environmental Impact Statement
b) Concession Application
c) Project Description
d) None of these
333) Under the Philippine Mining Act of 1995, what do you call entities
allowed to hold Exploration Permits, Mineral Agreements, and
Financial or Technical Assistance Agreements?
a) Juridical persons
b) Philippine Corporations
c) Qualified Persons
d) Foreign-owned corporations
334) A locally-assembled computer without a name is usually called:
a) All of these
b) None of these
c) A compatible
d) A clone
335) Which of the following minerals is more likely to be found in very
arid regions?
a) Coal
b) Limestone
c) None of these
d) Salt domes
336) What is the most recent development in the fast changing
computer industry?
a) The personal computer revolution
b) None of these
c) the internet revolution
d) Microprocessor development
337) The responsibility of a mine manager is to
a) Minimize adverse environmental impact of operations
b) Operate the mine at the least cost
c) Operate the mine safely
d) Produce ore of desired volume as scheduled
e) All of these
338) Who are the stakeholders in a mine?
a) Investors
b) Employees
c) All of these
d) Creditors
e) Suppliers
339) Engineering design for mining can be done by hand or by using a
Computer Aided Design (CAD) system. CAD is extensively used
because
a) It facilitates the designing process
b) It automatically corrects wrong data
c) It is the “in” thing in the industry
d) It can substitute for management decisions
340) Which of the following has a negative impact on the viability of a
mining project?
a) Sponsor’s good reputation
b) Product has well-developed market
c) Low production costs
d) Short construction period
e) None of these
341) What is the arrangement were the companies worldwide with
complementary expertise and/or areas of strength team up for a
common objective with each company still retaining its separate
identity?
a) Merger
b) Strategic alliance
c) Buy- out
d) Acquisition
342) What do you call a deposit that can be at a profit?
a) Mineral deposit
b) Mineral resource
c) All of these
d) Ore deposit

343) Which sector of the mining industry will be most adversely


affected by a strict implementation of the Kyoto Protocol?
a) Base metals
b) Precious metals
c) Industrial minerals
d) Coal
344) The feasibility of an open pit metal mine is dependent on
a) Stripping ratio
b) All of these
c) Metal prices
d) Grade
345) Which of the following energy sources is renewable?
a) Coal
b) Solar
c) Natural gas
d) Uranium
346) What do you call the mischievous little programs that often sneak
into computers?
a) Viruses
b) Demo software
c) None of these
d) Freeware
347) What does the fundamental exploration principle called successive
elimination of risks mean?
a) Doing the least cost last
b) None of these
c) Doing the least cost operations first
d) All of these
348) The company, of which you are Chief Mining Engineer with
substantial stock option, goes into a major expansion program and
keeps making press releases about said expansion program and
keeps making press releases about said expansion for several days.
You know, however, that the ore reserves are much too small to
justify expansion and you have already informed management about
the inadequacy of reserves. What will you do?
a) Continue working with the company
b) None of these
c) Tell your relatives and friends to buy stocks in the company
d) Quit your job
349) In the Philippine mines of the 21 st century, operating costs will be
increased by the need to protect the environment more effectively
and to address the concerns of indigenous people. What can future
mines do to remain profitable under these circumstances?
a) Look for better grade deposits
b) All of these
c) None of these
d) Use new technologies to bring down costs
350) What is the basic law governing coal development in the
Philippines?
a) Presidential Decree 463
b) Presidential Decree 972, as amended by PD1174
c) Commonwealth Act 137
d) Republic Act 7638

351) Which of the following coal ranks has the highest moisture
content?
a) Bituminous
b) Lignite
c) Sub-bituminous
d) Anthracite
352) Aside from men, materials, money, which all engineers need to
control, name the one very important but uncontrollable factor which
mining engineers need to take into consideration.
a) Geology of the mine
b) None of these
c) Administrative costs
d) Mining technology
353) The heating value of a certain coal deposit with moisture content
of 20% is 8000 BTU per pound on an as received basis. What is the
heating value of said coal on a moisture-free basis?
a) 6400
b) none of these
c) 9600
d) 10000
354) Wind turbines are now increasingly being used for power
generation, with the generating capacity directly proportional to the
cube of the wind speed. By what percentage will the capacity
increase with a 10% increase in wind speed?
a) 3%
b) 1000%
c) 33%
d) 30%
355) The most effective mine manager is one who
a) Can inspire others to get things done
b) Can intimidate others to get things done
c) Is the most technically competent
d) Can do everything himself
356) What environmental issues should the manager of an open pit
copper mine be concerned about?
a) Effluent from operations
b) Mine waste disposal
c) All of these
d) Tailings disposal
357) Even after an orebody has been mined for several years, the
reserves may increase because of:
a) New technology resulting to lower costs
b) Increase in metal prices
c) All of these
d) Positive results of additional exploration
358) In mining project where you expect to use flotation in the
concentrator, where will you expect maximum recovery?
a) The complex zone where copper is associated with zinc and lead.
b) The oxidized zone
c) None of these
d) The purely copper sulfide zone.

359) What process generally results in the occurrence of a high grade


zone immediately beneath the oxidized portion of a copper deposit?
a) High grading
b) Salting
c) Super gene enrichment
d) None of these
360) A mining engineer should be concerned about the adverse impact
of mining on the environment
a) Because it is the right thing to do
b) To avoid pressure from the NGos
c) Because it is required by the government
d) To avoid media criticism
361) What do you do first in evaluating a virgin mining property?
a) Geological mapping
b) Exploratory tunneling
c) Non of these
d) Diamond drilling
362) What countries are involved in the current dispute over a group of
islands in the South China Sea
a) Laos
b) Papua New Guinea
c) All of these
d) None of these
e) Myanmar
363) A coal basin underlain by one-meter thick continuous horizontal
coal seam is open for concession applications. What is the minimum
number of coal blocks one has to apply for to supply the 25 year
requirements of a 300 megawatt power plant which requires I
million tons of run-of-mine coal a year, assuming a specific gravity of
1.25forthe coal as mined, one block consisting of 1000 hectares, and
a mining recovery of 100%
a) 2 blocks
b) 20 blocks
c) 30 blocks
d) 200 blocks
364) When the owner of a mining project is primarily interested in the
return on his capital, what measure of profitability will you use?
a) Payback
b) None of these
c) Net Present Value
d) Internal Rate of Return
365) Under the IPRA law, what do mining companies need to secure
form indigenous people before they can undertake mining activities?
a) Representation of NGOs
b) Free and prior informed consent
c) Legal titles to land holdings
d) Representation by local government
366) What would you have done if you were among the Filipino
engineers working at the Busang gold project in Indonesia after
learning that the samples were being salted with management’s
consent?
a) Quit as quickly as possible
b) None of these
c) Bought more stocks in Bre-Ex while continuing to work with the said
company
d) Keep quiet about the whole thing
367) In order to access the worldwide internet in mines located
insolated areas the company must primarily attend to
a) Power and telecommunications systems
b) Access roads and bridges
c) None of these
d) Water works
368) What government agency awards coal operating contracts?
a) BOI
b) DENR
c) DOLE
d) MGB
e) DOE
369) As the mine superintendent of a gassy coal mine, which of the
following aspects of the mining system would you need to focus on
to avoid explosions.
a) Drilling and blasting system
b) Mining method
c) Transportation system
d) Mine ventilation system
370) Which of the following price of imported equipment and supplies
includes duties and taxes?
a) FOB price
b) None of these
c) CIF price
d) C & F price
371) What are mine workers who steal gold underground commonly
called?
a) Gold diggers
b) High graders
c) Fourty niners
d) Gold panners
372) What gas naturally occurring in coal mines is now being tap for
power generation?
a) Carbon monoxide
b) methane
c) none of these
d) carbon dioxide
373) What is the most effective means of assuring security of a mining
operation in isolated areas where there is no threat from rebels?
a) High powered arms
b) Effective community relations program
c) Connections with local politicians
d) Connections with the military
374) Which of the following is software?
a) Keyboard
b) CPU
c) Mouse
d) None of these
375) Coal and diamond, have one thing in common chemically:
a) Both are equally expensive
b) None of these
c) Both are equally hard
d) Both contain carbon
376) Which of the following gases in coal mine can be used to generate
electricity?
a) Methane
b) None of these
c) Carbon dioxide
d) Carbon monoxide
377) A gold vein dipping 45 degrees has an apparent thickness of 2
meters measured horizontally at the outcrop. You want to dig a
vertical test pit 10 meters away from the outcrop measured a long
the dip an at the same elevation as the outcrop in order top get fresh
samples from the top to the bottom of the deposit. Assuming uniform
thickness and dip of the deposit, what is the minimum depth the pit
you have to dig?
a) 20 meters
b) 10 meters
c) 12 meters
d) 11.4 meters
378) What is the main function of the World trade Organization?
a) Promotion of trade liberalization
b) All of these
c) promotion of privatization
d) promotion of globalization
379) Which of the following are definitely stakeholders in a mine but
not necessarily stockholders?
a) Customers
b) Employees
c) All of these
d) Suppliers
380) For a GPS to be reliable, at least how many satellites must be in
view at any given time?
a) 6
b) 5
c) 4
d) 3
381) Which of the following is an indirect cost?
a) Taxes
b) All of these
c) Duties
d) Insurance
382) You are the manager of a coal mine in the process of selecting an
assistant mine manager who will replace you very soon. Who of the
following applicants will in your opinion be in the best position to
take- over from you?
a) A mining engineer who has successfully managed a gold mine, but
has not worked in a coal mine
b) A fresh graduate mining engineer who had just topped the mining
engineering board
c) A coal mining engineer who has done extensive geo-technical
research on your mine
d) A mining engineer married to your superior’s daughter

383) What is the word or image in a document in the Web that a


browser selects to take him to other destinations called?
a) None of these
b) Site
c) Link
d) Browser
384) Why is there a need to conduct a feasibility studies?
a) To comply with the requirements of regulatory agencies
b) To guide investors and top management
c) To comply with requirements of lenders
d) All of these
385) Under the code of Ethics for Mining Engineers, what is the penalty
for a mining engineer signing a technical report that was not
prepared by him or under his supervision?
a) Fine and imprisonment
b) Revocation of his license
c) Imprisonment
d) Fine
386) Which of the following deposits require relatively close drill hole
spacing?
a) A highly faulted deposit
b) A coal deposit with pinch-and-swell characteristics
c) An irregular vein deposit
d) All of these
387) What is the basic law governing (CCA) development in the
Philippines?
a) Republic Act 7638
b) Commonwealth Act 137
c) Presidential Decree 463
d) Presidential Decree 972, as attended by PD 1174
388) How many long tons are there in a short ton?
a) 0.91
b) 0.89
c) 1.10
d) 1.12
389) A deposit that can be mined at a profit is called:
a) vein deposit
b) mineral deposit
c) disseminated deposit
d) ore deposit
390) Satellite communications now enable those working in isolated
places almost anywhere in the world to communicate with their head
office may be located in another continent. What is the satellite that
has made this possible?
a) None of these
b) Apollo series
c) Challenger series
d) Inmarsat series
391) What are the mine workers who steal gold underground
commonly called?
a) Fourty niners
b) Gold diggers
c) Gold panners
d) High graders
392) One of the well established principles of good management is job
delegation to subordinates, but still being ultimately responsible.
This means that a responsible manager should delegate:
a) Authority but not responsibility
b) Responsibility but not authority
c) None of these
d) Both authority and responsibility
393) Which of the following ethnic groups are considered indigenous
people under the IPRA law?
a) Cebuanos
b) Tagalogs
c) none of these
d) Ilocanos
394) An effective mine manager will consider the labor union as:
a) An entity to be disregarded
b) An adversary to be resisted as much as possible
c) All of these
d) A partner in promoting the interests of the mine
395) In the feasibility study shows that the proposed investments is
equal to the present value of future net cash flows, it means that
a) None of these
b) The mine will be profitable
c) The mine will be losing
d) The return on investments will just equal the discount rate
396) Which of the following minerals do you find only in very arid
regions?
a) None of these
b) Limestone
c) Coal
d) Salt domes
397) The Philippine Exclusive Economic Zone, the main basis for
Philippine claim on several islands in the Spratleys, is based on:
a) Unilateral declaration
b) The existence of a continental zone
c) The UN Convention on the Law of the Seas
d) Historical possession
398) A computer program designed to create files out of records is
called:
a) Word processor
b) All of these
c) Spreadsheet
d) Database
399) An underground mine has developed an incentive bonus scheme
which provides for a 50% bonus for development advance beyond
the standard of 3 meters per day crew. If the crew achieves said
standard, they get 300 pesos per day. What is the total compensation
due a crew that made an advance of 105 meters during a 25 working
day month, assuming there were no holidays and no night work?
a) 7500 pesos
b) 12000 pesos
c) none of these
d) 11250 peso

400) A serious mine accident has just occurred in a mine close to your
residence trapping several people and you are in a position to help
because you ounce worked in the mine as head of its mine rescue
team. What will you do?
a) Go into the accident area as soon as possible to see what you can do
to help
b) Check first your insurance coverage
c) Leave the mine accident to the mine management as it is one of your
business
d) Find out first how much you will be paid or your services
401) A locally-assembled computer without a name is usually called:
a) None of these
b) A clone
c) A compatible
d) All of these
402) Limestone is of ten used in coal-fired power plant operations to
eliminate, or reduce, emissions of sulfur oxides. The resulting
reaction results in the production of
a) Hydrocarbons
b) ash
c) None of these
d) Synthetic gypsum
403) The feasibility of an open pit metal mine is dependent on
a) Grade
b) Stripping ratio
c) All of these
d) Metal prices
404) Carbon dioxide is one of the greenhouse gases which, when
released to the atmosphere, causes global warming. Which of the
following activities in a mining area will help minimize global
warming
a) Reclamation of mined out areas
b) None of these
c) Containment of tailings
d) Reforestation
405) Which of the following has a positive impact on the copper mining
industry?
a) Increasing replacement of copper by fiber optics in the electricity
sector
b) Increasing use of copper in the computer and electronic sector
c) increasing trend to recycle materials made of copper
d) continuing economic in slump in Japan
406) In what sectors the concept of production sharing involving the
resource developer and the government first introduced in the
Philippines?
a) Forestry
b) Mining
c) Energy development
d) Fisheries
407) Which of the following is not a geophysical method of exploration?
a) None of these
b) Soil sampling survey
c) Gravity survey
d) Seismic survey
e) Magnetic survey
408) What are gases from a coal mine that contribute to global
warming generally called:
a) Poisonous gases
b) Greenhouse gases
c) Deleterious gases
d) Toxic gases
409) What Philippine mining law has the most explicit provisions on
environmental protection?
a) Presidential Decree 463
b) Republic Act 7942
c) None of these
d) Commonwealth Act 137
410) Which of the following is a primary raw material in the
manufacture of bricks?
a) Gabbro
b) Clay
c) Basalt
d) Adobe
411) Big companies involved globally often well known political
analysts as consultants to evaluate country. What do these
consultants fous on?
a) Financial and technical feasibility of projects
b) None of these
c) World metal prices
d) Overall political stability
412) A copper mine delivers 1800 dry short tons of ore with a grade of
1% to the concentrator, which in turn mills ad process it at a
concentration ratio of 30 to 1 producing concentrate at a grade of
25%.What is the mill recovery?
a) 85%
b) 90%
c) 80%
d) 83%
413) In evaluating a mining project, a Monte Carlo technique is often
used
a) Determine the profitability
b) Analyze the risks
c) Estimate the costs
d) Forecast future prices
414) Which of the following operations in a mine contributes to water
pollution if uncontrolled?
a) All of these
b) Acid drainage
c) None of these
d) Tailings disposal
e) Waste disposal
415) Which of the following meridians on the globe, if crossed, enables
a traveler to gain, or lose, one day?
a) None of these
b) Equator
c) Arctic circle
d) Greenwich Meridian
416) What government agency awards coal operating contracts?
a) DOE
b) MGB
c) DENR
d) BOI
417) Evaluating a mineral deposit through drill holes in a grid pattern
would be most applicable in a:
a) Contact metasomatic deposit
b) None of these
c) Disseminated type deposit
d) Vein type irregular deposit
418) What distinguishes an ore deposit from a mineral deposit?
a) Mining method
b) Size
c) Economic viability
d) Geology
419) Computer programming essentially means:
a) All of these
b) Installing a computer
c) Marketing computers
d) Writing and running a computer software
420) What is the carbonaceous solid fossil fuel of even lower rank than
lignite?
a) Anthracite
b) Sub-bituminous coal
c) Bituminous coal
d) Peat
421) In drilling for evaluation purposes, a large hole diameter is usually
preferred because:
a) None of these
b) its cost is lower
c) all of these
d) it leads to higher core recovery
422) What rank of coal can be made into smokeless and colorless
briquette by a simple mechanical process?
a) Anthracite
b) Lignite
c) Sub-bituminous
d) Bituminous
423) What is the apparent thickness of a ten meter thick vertical gold
vein hit by a drill hole inclined at -60 degrees from horizontal?
a) 15 meters
b) 5 meters
c) 17.32 meters
d) 20 meters
424) What is the current trend among mining companies worldwide to
reduce costs and promote efficiency in mining operations,
particularly in specialized operations (such as driving large tunnels)?
a) Hire lower cost workers
b) Send their employees for foreign training and do the specialized
jobs-in-house
c) Contract out the operations to especialized contractors
d) None of these
425) What does the fundamental exploration principle called successive
elimination of risk mean:
a) None of these
b) Doing the most expensive operation first
c) Doing the least cost operations first
d) Doing the least cost operations last
426) In a truck-and-shovel operation, the times for a truck to position
itself at the shovel and be loaded are 0.5 minutes and 3 minutes,
respectively. It then takes the truck 10 minutes to haul the ore,
dump it at the coarse ore bin, and return to the shovel. How many
trucks do you need to keep the shovel busy, with a little waiting time
for the trucks?
a) 3 trucks
b) 5 trucks
c) 4 trucks
d) 6 trucks
427) Which sector of the mining industry will be most adversely
affected by a strict implementation of the Kyoto Protocol?
a) Industrial minerals
b) Coal
c) Base metals
d) Precious metals
428) A copper deposit has been extensively explored by driving tunnels
at levels 1300, 1200, 1100, 1000, the level nomenclature
representing the elevation of the tunnel in meters above sea level. At
each level, the mineralized area and average copper grade has been
delineated and established as follows: L-1300-200000 sq. meters-
1% L-1200-100000 s. meters-0.7%; L-1100-100000 sq. meters-
0.7%; L-1000-50000 sq. meters-0.6%. The outcrop is at elevation
1400 and you decide to exclude the oxidized portion of the deposit
which extends down to 75 meters from the outcrop. What is the
average grade of the unoxidized copper ore body?
a) 0.75%
b) 1.0%
c) 0.8
d) o.6
e) 0.7
429) Which of the following would you consider as the best measure of
the affectivity of a mine’s safety program?
a) Accident frequency rate
b) Number of manhours worked
c) Number of accidents
d) All of these
430) What do coal and diamond have in common chemically?
a) None of these
b) Both need to be mined
c) Both contain carbon
d) Both can expensive
431) What is the main document that needs to be submitted and
approved prior to the issuance of an Environmental Compliance
Certificate in an environmentally-critical area?
a) None of these
b) Project description
c) Environment impact statement
d) Concession application
432) What is a notebook in computer lingo?
a) A laptop computer
b) A desktop computer
c) None of these
d) A palmtop computer
433) Which method of evaluating a mining venture does not consider
the time value of money?
a) Internal rate of return
b) Net present value
c) Accounting rate or return
d) Discounted cash flow
434) Some top mining executives are busy that they only read the
Executive Summary of a Feasibility Study. What should be contained
in the Executive Summary as a minimum?
a) Essential conclusions and recommendations
b) Brief introduction
c) Brief geology of deposit
d) Brief historical background
435) Which of the following countries is NOT a member of APEC?
a) Papua New Guinea
b) Bangladesh
c) Vietnam
d) Taiwan
436) What is the group of islands in the South China Sea being disputed
by various countries called?
a) Turtle Islands
b) Spratley Islands
c) Babuyan Islands
d) Visayan Islands
437) Some Philippine branches of multinational engineering companies
have proven that they can successively handle the engineering work
for the worldwide operations of their mother companies. What is this
an example of?
a) Monopolization
b) Nationalization
c) Globalization
d) Privatization
438) Technical papers in conferences can be accessed through the
internet through hard copies. Which of the following is a hard copy?
a) Papers in a technical magazine
b) All of these
c) Papers in a hard bound book
d) Mimeographed copies
439) What is the latest trend in mine planning among companies in
response to the growing concern for environmental protection and
social consciousness?
a) To plan for optimizing the return over the lift of the mine
b) To plan for mine closure
c) To plan for maximizing profits over the life of the mine
d) None of these
440) In the modern mine, a software has been developed to enable the
user to perform quality assessment from data being accumulated on
field equipment. This real-time software is known as ATS. What does
this stand for?
a) Asset tracking software
b) Automatic tracking System
c) American Trading System
d) None of these
441) What is the most effective means of assuring security of a mining
operation isolated areas where there is no threat from rebels?
a) Effective community relations program
b) High powered arms
c) Connections with the military
d) Connections with the local politicians
442) which of the following has a positive impact on the impact on the
profitability of a metal mining operation
a) High metal prices
b) Low interest rates
c) Low operating costs
d) Favorable geology of deposit
e) Low capital cost
f) All of the above

443) What is the highest rank of coal?


a) Anthracite
b) Lignite
c) Bituminous
d) Sub-bituminous

444) Engineering design for mining can be done by hand or by using a


Computer Aided Design (CAD) system. CAD is extensively used
because:
a) It facilitates the designing process
b) It can substitute for management decisions
c) It is the ‘in’ thing in the industry
d) It automatically corrects wrong data

445) The ultimate objsctive of mine valuation is to determine:


a) Capital requirements
b) Life of the mine
c) Profitability of the mine
d) Volume and grade of reserves

446) What is the net present value of a mine?


a) none of the above
b) the difference between the total investment and future net cash
flows discounted overtime
c) the sum of all future earnings
d) the difference between gross income and operating costs

447) Even after an orebody has been mined for several years, the
reserves may increase income because of:
a) New technology resulting to lower costs
b) Increase in metal prices
c) Positive results of additional exploration
d) All of these

448) Which island in the Philippines is the largest producer of coal?


a) Luzon
b) Cebu
c) Mindanao
d) Semirara

449) What countries are involved in the current dispute over a group of
islands in the South China Sea?
a) None of these
b) Myanmar
c) All of these
d) Laos
e) Papua New Guinea
450) What do you call a program to connect to sites in the Internet?
a) Bookmark
b) Browser
c) Information highway
d) Server
451) Which of the following price of imported equipment and supplies
includes duties, and taxes?
a) CIF price (cost, insurance, freight)
b) C & F price (cost, freight)
c) None of these
d) FOB price (free on board)
452) In computer lingo, what do you call the list of e-mail address with
a single we-mail address set up that forwards all messages sent to it
to every address on the list?
a) Mailing list
b) Network
c) Website
d) Service provider
453) In order to access the worldwide internet in mines located in
isolated areas, the company must primarily attend to:
a) None of these
b) Access roads and bridges
c) Power and telecommunication systems
d) Water works
454) The concept of production sharing contracts in the Philippine
mining industry was first introduced in the coal mining industry in
1976. What is the contract between the government and the coal
mining operator called?
a) Service contract
b) Contract of work
c) Coal operating contract
d) Geophysical survey and exploration contract
455) What was the worst mine disaster in the Philippine mining history
with 84 people killed?
a) Water in-flow at San Mauricio Gold mine in the 1950’s
b) Cave-in at Philex Copper Mine in 1967
c) None of these
d) Methane Gas Explosion at Malangas Coal Mine in 1994
456) What is the arrangement where companies worldwide with
complementary expertice and/or areas of strength team yup for a
common objective with each company still retaining its separate
identity?
a) Acquisition
b) Buy-out
c) Merger
d) Strategic alliance
457) Which of the following is NOT a storage device?
a) Floppy disc
b) CD-ROM
c) Printer
d) Hard disc
458) The heating value of a certain coal deposit with moisture content
of 20% is 8000 BTU per pound on an as received basis. What is the
heating value of said coal on a moisture-free basis?
a) None of these
b) 6400
c) 10000
d) 9600
459) Your mine breaks even at a copper grade of 0.5% at a price of
$1.00 per pound. You have now reached the lower grade portion of
the deposit with a grade of 0.4 %, which you can still recover at
90%, but contains gold assaying 0.01 ounce per ton. Assuming you
can get a credit of $300 per ounce in the concentrate, what should be
your minimum gold recovery for the mine to break even?
a) 50%
b) 60%
c) 67%
d) 55%
460) What type of coal is used primarily for its heating value?
a) Metallurgical coal
b) Steaming coal
c) Coking coal
d) None of these
461) What is the smallest unit for the storage capacity of a computer?
a) Terabyte
b) Kilobyte
c) Byte
d) Gigabyte
462) A sustained global decline in demand for metals generally leads
to
a) no effect on metal prices
b) all of these
c) increase in metal prices
d) decline in metal prices
463) Which of the following is not among cost-cutting measures
resorted to by mining companies when metal prices are low?
a) Additional debt financing
b) Dow-sizing
c) Re-engineering
d) Retrenchment
464) Who is ultimately in charge of a computer?
a) All of these
b) Hardware
c) Software
d) People
465) The Code of Ethics for mining engineers:
a) Is silent on the issue of labor unions
b) Prevents mining engineers from joining labor unions
c) Requires mining engineers to join labor unions
d) Encourages mining engineers to join labor unions
466) Semirara Coal Corporation supplies coal to NPC plants on the basis
of import parity (delivered price plus tariff) o an equivalent BTU
basis. If NPC can buy imported coal of 10000 BTU per pound at 20 US
dollars per ton delivered and pays a tariff of 10% on the FOB price of
15 US dollars per ton, how much will SCC have to produce and deliver
its 8000 BTU per pound coal to break-even, assuming an exchange
rate of 40 pesos to one US dollar?
467) 640 pesos per ton
468) 704 pesos per ton
469) 688 pesos per ton
470) 800 pesos per ton
471) Which of the following fuels does NOT emit carbon dioxide when
burned?
a) Oil
b) Natural gas
c) Coal
d) uranium
472) The most important and basic information, which the mining
engineer must ensure is as accurate as possible, for an accurate
feasibility study is:
a) geology of the deposit
b) volume and grade of reserves
c) environmental and social impact
d) forecast of future metal prices
473) In computer lingo, what is URL?
a) A web address
b) A special software program
c) Forecast of future metal prices
d) All we-mail address
474) You’re the owner/operator of a profitable small scale goldmine
Diwalwal. What would you do to show your professionalism and be a
good example to other small-scale miners?
a) Be the most safety/ environment conscious mine
b) None of these
c) Have the PR with government officials
d) Be the most mechanized small- scale mine
475) It is said that the essence of management is communications. This
simply means that a mine manager should be able to:
a) Give clear instructions to his subordinates
b) Speak up before his superiors
c) All of these
d) Write memos clearly
476) When the owner of mining project is primarily interested in the
return on his capital, what measure of profitability will you use?
a) Internal Rate of Return
b) Net present value
c) None of these
d) payback
477) A well-managed mine is one that:
a) Pays fair wages for its workers
b) Complies wit environmental/safety rules
c) Makes maximum profits for the stockholders
d) Does none of these
e) Does all of these
478) What would you have done if you were among the Filipino
engineers working at the Busang gold project in Indonesia after
learning that the samples ere being salted with management’s
consent?
a) Quit as quickly as possible
b) None of these
c) Brought more stocks in Bre-Ex while continuing to work with the said
company
d) Kept quiet aout the whole thing

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