IC 8374 An Engineering And Economic Study Of A Gold Mining Operation

The principal purpose of this study was the development of an engineering and economic model of a hypothetical large-scale open pit gold mining operation. The guiding concept in developing the model was the idea that, through study of a number of such models, it would be possible to evaluate a mineral property and to make reasonable estimates of the benefits to be derived from research in mining and metallurgy. The model by use of a computer is able to produce results easily and quickly when cost factors are varied. Cost factors may be varied as a result of assumptions of improved technology or of assumptions of assuming different approaches or methods to accomplish a particular segment of the mining or processing operation. The discounted cash flow rate of return was used to measure the effect of changes in costs or expected revenue. In this study, assumptions based on past processing practices were made in an effort to reduce costs of processing the ore These assumptions were: (1) Eliminating the low-grade cyanide circuit; (2) reducing the quantity of material to be processed by screening after crushing; and (3) using a combination of assumptions (1) and (2). All three assumptions resulted in reduced capital investment and operating cost that caused substantial increases in the rate of return.