The Effect of Open Pit Scale Economies on the Mt Leyshon Gold Mine

Over the last five years Mt Leyshon has matured into a sizeable gold mine by Australian Standards. In the later part of 1990, after commissioning of the 3.5 mtpa CIP Plant upgrade, experience indicated there was potentially additional Mill capacity beyond that being utilised at the 3.5 mtpa rate. Overall throughput was limited by crushing plant performance and high operating costs resulting from the age and condition of the main crushing plant.In addition, mining was being carried out using a mining contractor who utilised relatively small, high cost mining equipment, and on-going exploration success was also indicating that the then current mine plan would result in only a portion of the available resource being exploited.