Economic Determination of a Mining and Milling Project

All mining and milling enterprises must be based on adequate ore reserves. Reserves must be established by physical exploration, and the orebody should be of sufficient size and grade to insure recovery of capital invested in mine purchase, development, and mill construction and to provide a reasonable profit. Determination of these economic factors is so complicated, and present costs of mine development and construction so great, that analysis can be made only by competent persons qualified by experience in this field. What rate for maximum efficiency? Unfortunately, even today mills are built before deposits have been adequately outlined, and there are rusting monuments to such folly in nearly every mining region. Also there is a tendency to be guided by the philosophy that "if a little is good, a lot is better," which leads to the conclusion that mining at a given rate and making so much per ton will yield a profit of so many dollars per day. Consequently, why not build a mill to treat twice as much per day and make twice as much money?