The mining industry has consistently attempted to determine the effects of technical and market uncertainties on the value of projects and operating policy. This has led to the adoption of valuation techniques from the financial industry to enable mine managers to successfully integrate market information with project structure and strategy. The real options (RO) approach has proven to be a superior method in calculating an asset's value. The method successfully reconciles strategic with financial analysis. It gives a mining company the right and not the obligation to exercise an option in the future at a value. In spite of the wide consensus on the benefits of using the RO approach to value projects, its adoption has been slow because most mining firms perceive its application as complex and impractical. Notable among these are underground mining operators, where the take-up has been slower due to the sector's primary focus on technical risks and less on market risks.The author concedes that the level of mathematics involved in developing an RO model for the evaluation of a small mine is arguably a more sophisticated process than standard discounted cash flow mathematics. To fill this gap, this research focused on developing a transparent RO model that accurately reflects project uncertainties faced by mine managers. The model is then deployed as a user-friendly end-user tool to encourage industry take-up. The tool is applied to a block caving project to estimate its project value.The main implication of this research is that RO can help unlock enormous value for mine operations through the introduction of management flexibilities. In addition, all the major risk and uncertainties, such as geological and geotechnical, can be well integrated into the evaluation process to improve the strategic planning process of the project.CITATION:Ampofo, K, 2016. Unlocking value - a real options analysis of a block caving project, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), p 887 (The Australasian Institute of Mining and Metallurgy: Melbourne).