This paper deals chiefly with the preliminary examination, when a decision has to be made as to whether a prospect has a chance of developing into a mine or not. At this stage it is important to have a fairly clear conception of what is expected of the prospect, andjust what type of mine is sought. Much money can be wasted testing a prospect suitable for a prospector or small syndicate, but which never looked like becoming a mine of sufficient size to interest a company. When undertaking an inspection, therefore, it is necessary to have a broad outline, at least, of the policy of the principals for whom the report is intended.At this early stage it is frequently necessary to form an opinion of the prospects of a property on very meagre data. When new to this type of work one's first reaction is often th~t it is impossible to pass an opinion on the data available. It. is absolutely necessary,however, that an opinion of the possibilities and chances of favourable development be given; The report should strive to convey this information, making quite ::lear the risk involved, how complete are the data on which this opinion is based, and the possible magnitude of the prize. A Preliminary report has to state whether a property has sufficient prospects to warrant testing.The following procedure is suggested in order to make best use of the data and minimise hasty conclusions influenced by preconceived ideas-an ever-present danger.Examination.The first stage is the examination. This should aim at collecting all available significant data, but avoid clouding the issue with detail which, at this stage, will not affect the decision. The following points are considered to be the main ones for which to look:-Geological Environment.As good a working knowledge as possible'of the geology of the area should be obtained. Government Geological Survey reports and maps, if available, will be a big help. A detailed knowledge of the regional geology is not necessary a,t this stage, but a broad outline of the geological setting of the prospect under review, and also of any other important mines in the district, is often helpful in the final decision.The Nature of the Ore-Body.Any facts concerning the nature or occurrence of the lode should be noted as, coupled with experience of similar bodies, they affect the ultimate decision.Structural Control.This is probably the most important factor, in the light of present geological knowledge. Its chief importance is due to two facts:-(a) Structure plays one of the prime parts in ore deposition.(b) Geological knowledge, of structure is somewhat in advance of knowledge of other factors influencing ore deposition.