Chapter 29
Simplified Estimating Guide f o r the Evaluation o f Small Scale Gold Mining Operations
Sukhendu L. Barua and Roshan B . Bhappu
Mountain States Mineral Enterprises, Inc.
ABSTRACT
The economics o f developing and operating small
precious metal mines are unique and require much
more scrutiny than larger mines since a limited
tonnage must carry a heavy burden o f c a p i t a l
investment as well as operating c o s t per u n i t ton
t o be mined and processed. Moreover, potential
operators o f small mines do not have t h e required
expertise available t o c r i t i c a l l y evaluate the
technical and economic aspects o f t h e i r projects.
In t h i s paper, the authors have attempted t o
provide technical and economic guidelines f o r
developing and operating small precious metal
mines. Capital and operating cost estimates as
well as return on investment are provided f o r
various scenarios u t i l i z i n g d i f f e r e n t mining and
processing techniques.
INTRODUCTION
In recent years under favorable metal prices,
gold mining has enjoyed a high degree o f a c t i v i t y
throughout the world during t h e l a s t decade. Ghost
towns o f yester-years which thrived on t h e gold
mining boom are once again experiencing t h e golden
days and new orebodies are being discovered
practically every day throughout t h e world.
Moreover, because o f higher metal prices many o f
the sub-marginal deposits have become economical
overnight and with increasing metal prices and
development o f new extraction technology, t h e
economical grade i s constantly being lowered.
Furthermore, the favorable economic climate has
encouraged t h e development o f small mines which
previously could not be operated a t a p r o f i t .
By d e f i n i t i o n , there i s no agreement on what
constitutes a small mine. Nature o f t h e metal or
mineral occurrence, i n s t i t u t i o n a l a c t o r s , and t h e
degree o f i n d u s t r i a l i z a t i o n a l l a f f e c t t h e
d e f i n i t i o n . In general, a small mine c o n s t i t u t e s
any single-unit mining operation having an annual
production o f 50,000 metric tons o f ore or l e s s .
Other universal d e f i n i t i o n s c a l l f o r l i t t l e or no
investment i n infrastructure and fixed plant,
involvement o f concentrators or m i l l s o f a movable
t y p e , production up t o 250 short tons per day,
heavy reliance on manual labor, and employment Of
l e s s than 100 people.
Although t h e public view o f mining i n recent
years has been focused on t h e large-scale mining
operations, t h e small miners continue t o q u i e t l y
make a v i t a l contribution t o world exploration f o r ,
and supply o f , e s s e n t i a l mineral commodities. Even
i n t h e highly-developed United S t a t e s current
census o f mining industry indicates t h a t two-thirds
o f a l l mining operators employ fewer than 50
persons.
Currently, under t h e fluctuating gold metal
prices, ore grades and economics, i t i s very
d i f f i c u l t t o evaluate t h e economic v i a b i l i t y o f
gold mining operations, e s p e c i a l l y t h e small ones.
The small mine owner or exploration manager faces a
real dilemma o f whether t o or not t o proceed with
t h e project. This problem i s further complicated
by the a p p l i c a b i l i t y o f a large v a r i e t y o f
processing technique and u n i t operations, each o f
which presents i t s c h a r a c t e r i s t i c technical and
economic complexities. Accordingly, t h e economics
o f developing and operating small precious metal
mines are unique and require much more s c r u t i n y
than larger mines since a limited tonnage must
carry a heavy burden o f capital investment as well
as operating c o s t per u n i t ton t o be mined and
processed. Moreover, majority o f t h e small mine
operators do not have t h e required e x p e r t i s e
available t o c r i t i c a l l y evaluate t h e technical and
economic aspects o f t h e i r projects.
In t h i s paper, t h e authors have attempted t o
provide technical and economic guidelines f o r
developing and operating small gold mines. Capital
and operating c o s t estimates as well as r e t u r n on
investment are provided f o r various scenarios
u t i l i z i n g d i f f e r e n t mining and processing
techniques. For t h i s paper, t h e authors have
extended t h e production capacity o f small gold
mining operations up t o 500 short tons per day.
 178 SMALL MINES DEVELOPMENT IN PRECIOUS METALS
EXTRACTION PROCESSES
The commonly u s e d e x t r a c t i o n p r o c e s s e s u s e d f o r
treatment of gold/silver o r e s include:
1. G r a v i t y ( j i g s , t a b l e s , s p i r a l s , R e i c h e r t c o n e s )
2. F l o t a t i o n , w i t h o r w i t h o u t c y a n i d a t i o n o f
concentrates o r t a i l s
3 . Heap L e a c h i n g - M e r r i l l Crowe o r Carbon
Adsorption-Electrowinning
4. C o n v e n t i o n a l C y a n i d a t i o n (Leach-CCD-Merrill-
Crowe)
5 . C y a n i d a t i o n Carbon-in-Pulp ( C I P )
6 . P r e s s u r e Leaching o f r e f r a c t o r y o r e s followed by
cyanidation
7. B a c t e r i a Leaching o f o r e s o r c o n c e n t r a t e s
8. Leaching w i t h a l t e r n a t e l i x i v i a n t s
The g r a v i t y methods a r e u s e d g e n e r a l l y f o r
recovery o f gold from p l a c e r d e p o s i t s a s w e l l a s a n
a i d i n f l o t a t i o n and c y a n i d a t i o n t r e a t m e n t o f non-
p l a c e r t y p e d e p o s i t s . Such m e t h o d s i n c l u d e j i g s ,
R e i c h e r t c o n e s , t a b l e s , moving b e l t s e p a r a t o r ,
corduroy o r rubber-lined r i f f l e s and a wide v a r i e t y
of t r a p s . These a r e i d e a l f o r r e c o v e r y o f
r e l a t i v e l y c o a r s e p a r t i c l e s which d o n o t respond
r e a d i l y t o f l o t a t i o n and c y a n i d a t i o n p r o c e s s i n g .
I n t h e t r e a t m e n t o f some o r e s a n d t a i l i n g s ,
f l o t a t i o n h a s been found t o b e q u i t e e f f e c t i v e f o r
recovery of precious metal v a l u e s contained i n
s u l f i d e s and a s n a t i v e g o l d and s i l v e r . More
importantly, f l o t a t i o n is an i d e a l treatment
p r o c e d u r e f o r t h o s e o r e s i n which a l l o r p a r t o f
t h e gold v a l u e s a r e contained i n carbonaceous
m a t e r i a l . The f l o t a t i o n c o n c e n t r a t e s a r e s e n t t o
t h e smelter o r a r e f u r t h e r p r o c e s s e d by
cyanidation, perhaps a f t e r regrinding o r roasting.
Conventional c y a n i d a t i o n w i l l continue t o be t h e
standard process f o r t r e a t i n g precious metal o r e s
o f s u f f i c i e n t g r a d e t o w a r r a n t s u c h t r e a t m e n t . The
ground o r e , e i t h e r by c o n v e n t i o n a l m u l t i - s t a g e
c r u s h i n g and b a l l - m i l l g r i n d i n g o r b y semi-
a u t o g e n o u s g r i n d i n g (SAG), is l e a c h e d e i t h e r i n
a g i t a t o r t a n k s o r i n Pachuca-type t a n k s w i t h l i m e
a n d c y a n i d e . If t h e o r e s c o n t a i n c a r b o n a c e o u s
m a t e r i a l , a pre-treatment with a n o x i d i z e r such a s
a i r , oxygen o r c h l o r i n e i s n e c e s s a r y t o decompose
t h e o r g a n i c component p r i o r t o c y a n i d a t i o n . The
leached p u l p is t h e n s u b j e c t e d t o s o l i d - l i q u i d
separation using t h e countercurrent-decantation
(CCD) s y s t e m o r t h e f i l t r a t i o n c i r c u i t , e i t h e r drum
o r b e l t . I n r e c e n t y e a r s , t h e f i l t r a t i o n system
h a s b e e n shown t o b e e n v i r o n m e n t a l l y a n d
e c o n o m i c a l l y more a t t r a c t i v e . The p r e c i o u s m e t a l
v a l u e s a r e f i n a l l y won f r o m t h e p r e g n a n t l e a c h
l i q u o r by Merrill-Crowe ( z i n c d u s t p r e c i p i t a t i o n )
process.
For lower g r a d e o r e s o r f o r o r e s c o n t a i n i n g
e x c e s s i v e s l i m e s , t h e carbon-in-pulp (CIP) o r t h e
carbon-in-leach (CIL) t e c h n i q u e h a s proved t o be a
very viable a l t e r n a t i v e t o conventional
c y a n i d a t i o n . S u c h a s y s t e m may b e b u i l t a n d
o p e r a t e d f o r a n e s t i m a t e d 6 5 t o 75% o f t h e c o s t o f
a c o n v e n t i o n a l CCD o r f i l t r a t i o n u n i t . Moreover,
t h e carbon adsorption system h a s a chance t o
recover n e a r l y a l l of t h e s o l u b l e values normally
e s c a p i n g t h e CCD o r f i l t r a t i o n p l a n t . The
technique c o n s i s t s o f contacting t h e leached pulp,
u s u a l l y i n a s e p a r a t e s t e p , w i t h c o a r s e ( 6 b y 16
mesh) a c t i v a t e d c a r b o n t o a d s o r b g o l d and s i l v e r
v a l u e s . The c a r b o n i s n e x t s e p a r a t e d by s c r e e n i n g
a t e a c h s t a g e ( u s u a l l y f i v e s t a g e s a r e employed)
and advanced c o u n t e r c u r r e n t l y a s it is loaded.
F i n a l l y , t h e l o a d e d c a r b o n i s s t r i p p e d by h o t
caustic-cyanide s o l u t i o n ( a t atmospheric pressure
o r a t higher pressures with o r without t h e use of
a l c o h o l ) and t h e c o n c e n t r a t e d g o l d / s i l v e r v a l u e s
electrowon o r precipitated with zinc dust.
F o r much l o w e r - g r a d e o r e s , h e a p l e a c h i n g , if
t e c h n i c a l l y a p p l i c a b l e , i s t h e l o w e s t c o s t method.
I n t h i s p r o c e s s , t h e c r u s h e d o r e (3/8" o r c o a r s e r )
is p i l e d o n a n i m p e r v i o u s s u r f a c e a n d s p r i n k l e d o r
percolated with d i l u t e a l k a l i n e cyanide solution.
The p r e g n a n t s o l u t i o n i s t h e n p a s s e d t h r o u g h
a c t i v a t e d c a r b o n columns t o a d s o r b t h e v a l u e s o r is
t r e a t e d b y t h e c o n v e n t i o n a l Merrill-Crowe system.
The s e l e c t i o n o f t h e r e c o v e r y s y s t e m i s u s u a l l y
based on t h e q u a l i t y o f pregnant s o l u t i o n , t h e
p r e c i o u s metal c o n t e n t and t h e c o m p a r a t i v e
e c o n o m i c s . High s i l v e r v a l u e s and low s o l u t i o n
flows probably favor t h e zinc dust precipitation;
w h i l e h i g h e r flows o f predominantly gold-bearing
s o l u t i o n s a r e a d v a n t a g e o u s l y p r o c e s s e d by a c t i v a t e d
c a r b o n . F o r h i g h c l a y - b e a r i n g o r e s which would
p r e s e n t p r o b l e m s d u r i n g p e r c o l a t i o n i n heap
l e a c h i n g , t h e agglomeration pretreatment o f t h e
c r u s h e d o r e h a s b e e n found t o b e v e r y h e l p f u l .
R e f r a c t o r y o r e s and c o n c e n t r a t e s show poor
response t o conventional cyanidation techniques.
The r e f r a c t o r i n e s s , i n t h i s c a s e , i s p r i m r i l y due
t o t h e complex n a t u r e o f t h e a s s o c i a t i o n of
p r e c i o u s m e t a l s i n v a l u a b l e a s w e l l a s gangue
minerals. F i n e l y disseminated gold o r gold
contained i n p y r i t e , pyrrhotite, arsenopyrite,
t e l l u r i d e s o r o t h e r base metal s u l f i d e s do not
respond t o conventional cyanidation treatment.
S u c h r e f r a c t o r y o r e s a r e u s u a l l y t r e a t e d by
f l o t a t i o n f o l l o w e d by r o a s t i n g o r p r e s s u r e l e a c h i n g
o f c o n c e n t r a t e s and t h e i r c y a n i d a t i o n o f t h e
decomposed p r o d u c t . Carbonaceous o r e s may b e
t r e a t e d by f l o t a t i o n o r by decomposition of t h e
carbonaceous o r e s by p r e c o n d i t i o n i n g w i t h c h l o r i n e
p r i o r t o cyanidation. I n recent years, efforts
h a v e b e e n made t o a p p l y b a c t e r i a l o x i d a t i o n t o t h e
treatment of arsenopyrite ores.
S e v e r a l l i x i v i a n t s o t h e r t h a n c y a n i d e have been
s u g g e s t e d a n d / o r a p p l i e d f o r d i s s o l u t i o n of
p r e c i o u s m e t a l s . Aqueous c h l o r i n e , t h i o u r e a , and
t h i o s u l f a t e ( h y p o ) have a l l b e e n u n d e r
i n v e s t i g a t i o n a s environmentally a t t r a c t i v e
a l t e r n a t i v e s t o c y a n i d e . Most o f t h e s e l e a c h i n g
schemes a r e n o t commercially developed y e t , but
w i t h f u r t h e r t e s t i n g and p i l o t i n g , t h e y may p r o v e
t o be e f f e c t i v e reagents i n t h e treatment of gold/
s i l v e r o r e s , e s p e c i a l l y t h o s e which d o n o t r e s p o n d
w e l l t o conventional cyanidation.
ECONOMIC EVALUATION METHODOLOGY
Economics o f a mining v e n t u r e , l i k e a n y o t h e r
e n t e r p r i s e , depend on c a p i t a l c o s t s , o p e r a t i n g
c o s t s , a n d r e v e n u e s . It h a s b e e n f o u n d t h r o u g h
 SIMPLIFIED ESTIMATING GUIDE FOR EVALUATION 179

l o n g e x p e r i e n c e t h a t b o t h c a p i t a l and o p e r a t i n g y e a r s , g o l d v a l u e i s $400/oz. ( $ l l l . l l / g r a m ) , and

c o s t s f o r a s p e c i f i c mining p r o p e r t y c a n b e g o l d r e c o v e r y i s 70% f o r t h e proposed heap-leach-
expressed a s f u n c t i o n s o f t o n s p e r d a y o f o r e CA-EW-process. Following t h e equations i n F i g u r e
production. Annual r e v e n u e s a r e , of c o u r s e , a 1 , t h e c a p i t a l and o p e r a t i n g c o s t s a r e c a l c u l a t e d
f u n c t i o n o f tonnage, g r a d e , and p e r c e n t r e c o v e r y . below:
Empirical e q u a t i o n s c a n b e d e r i v e d f o r t h e s e
f u n c t i o n s by u s i n g t h e c u r v e f i t t i n g t e c h n i q u e .

MSME-MSRD h a s conducted f e a s i b i l i t y s t u d i e s o f ( i n m i l l i o n $1
v a r i o u s s m a l l mines f o r b o t h mining and p r o c e s s i n g .
The p r e l i m i n a r y c o s t e s t i m a t e s o b t a i n e d i n t h e s e i i ) Operating = 25.53 X ( 2 5 0 ) ' ~ . =~ ~1 5~- 3~7
s t u d i e s and d a t a g a t h e r e d from f i e l d were ( i n $/ton)
summarized and p l o t t e d t o g e n e r a t e e m p i r i c a l
e q u a t i o n f o r c a p i t a l and o p e r a t i n g c o s t s . F i g u r e 1
shows t h e s e e q u a t i o n s f o r v a r i o u s o p t i o n s o f mining %tz~sb = 0.001377 X (250) 1'2057 = 1.072
and p r o c e s s i n g . ( i n m i l l i o n $1

S i n c e t h e aim o f t h i s p a p e r i s t o d e v e l o p a i i ) Operating = 17.0 X (250)-0.1814 = 6.244

t e c h n i q u e f o r economic e v a l u a t i o n o f o p e r a t i n g ( i n $/ton)
s m a l l p r e c i o u s m e t a l mines, t h e c a p i t a l and Total Costs
o p e r a t i n g c o s t s can b e c a l c u l a t e d from t h e i ) Capital = 2.651 + 1.072 = 3.723
r e s p e c t i v e e q u a t i o n s i n F i g u r e 1. Assuming a ( i n m i l l i o n $1
specific operating l i f e , a typical expenditure
s c h e d u l e d u r i n g d e s i g n and c o n s t r u c t i o n , e t c . , a i i ) Operating = 15.37 + 6.244 = 21.614
c a s h f l o w a n a l y s i s c a n b e g e n e r a t e d t o y i e l d a DCF ( i n $/ton)
r a t e o f r e t u r n f o r a n y g i v e n combination o f t o n n a g e
and g r a d e . A more e x p l i c i t a n a l y s i s , however, i s I f we assume 360 working d a y s i n a y e a r , t h e n t h e
o b t a i n e d by s e t t i n g t h e r e q u i r e d r a t e o f r e t u r n and a n n u a l o p e r a t i n g c o s t = 21.614 X 360 X 250
calculating t h e grade required f o r various = $1,945,260. p e r y e a r
tonnages. T h i s t e c h n i q u e o f economic e v a l u a t i o n i s
b e s t i l l u s t r a t e d by a n example. F o r t h e economic a n a l y s i s , we w i l l c o n s i d e r t h e
f o l l o w i n g equal-payment-series c a s h f l o w a n a l y s i s
where a d e p o s i t o f amount P i s made now a t a n
a n n u a l i n t e r e s t r a t e o f i. The d e p o s i t o r w i s h e s t o
-a. . Method withdraw h i s p r i n c i p a l p l u s e a r n e d i n t e r e s t i n a
1. Open-pit Mining s e r i e s o f e q u a l year-end amounts (A) o v e r t h e n e x t
i ) C a p i t a l Cost 0.6365
: 0.0789 X (TPD)-0.0919 n y e a r s . When t h e l a s t w i t h d r a w a l is made t h e r e
ii) O p e r a t i n g C o s t : 25.53 X (TPD) s h o u l d b e no f u n d s l e f t on d e p o s i t . The c a s h f l o w
d i a g r a m f o r t h i s s i t u a t i o n is shown below.
2. Underground Mining ( c u t & f i l l method,
s h a f t d e p t h 500') A A A A A
i ) C a p i t a l Cost : 0.475 X (TPD) 0'459
ii) O p e r a t i n g C o s t : 148.47 X (TPD) -0'191
7 11 t2 13 . .,. n - 1t t
n years

1. Crushed Heap Leach-CA-EW

i ) C a p i t a l Cost
ii) Operating Cost
0.001377
17.0
:
:
( ~ ~ 8 ! ~ i ; t ~The~r e~l a t i o n s h i p among P,
(TPD) - X
X A, and i i s

2. F l o t a t i o n - C y a n i d a t i o n o f C o n c e n t r a t s
i ) C a p i t a l Cost : 0.0213 X (TPD) 8.926
ii) O p e r a t i n g C o s t : 157.96 X (TPD) '0'423 I n t h e p r e s e n t e x e r c i s e , i f t h e mine o p e r a t o r w a n t s
t o r e a l i z e 30% r a t e o f r e t u r n on h i s i n v e s t m e n t ,
3. C y a n i d a t i o n , CIP t h e n t h e year-end-amount A i s c a l c u l a t e d a s :
i ) C a p i t a l Cost : 0.01147 X ( T P D0 .)9~8 . ~ ~
ii) O p e r a t i n g C o s t : 110.25 X (TPD) A = 3.723 X = 1d 5286
o 1 a rm
s illion
NOTE: C a p i t a l Cost i s shown i n m i l l i o n $, and
O p e r a t i n g C o s t i s shown i n $ / t o n . Therefore,
Annual r e v e n u e = year-end-amount A + a n n u a l
operating cost
FIGURE 1. CAPITAL AND OEPRATING COST ESTIMATES
= 1.5286 + 1.945 = 3.4736 m i l l i o n
dollars
Suppose a mine o p e r a t o r w a n t s t o mine 250 s h o r t
t o n s / d a y (227 m e t r i c t o n s / d a y ) g o l d o r e from a n The a n n u a l r e v e n u e i s g e n e r a t e d from t h e s a l e of
open-pit mine, c r u s h t h e o r e , and u s e h e a p l e a c h - g o l d . Given t h e p e r c e n t r e c o v e r y and t h e c u r r e n t
carbon a d s o r p t i o n - e l e c t r o w i n n i n g t e c h n i q u e t o s e l l i n g p r i c e o f gold, t h e annual revenue equation
r e c o v e r t h e g o l d . Assume t h a t t h e mine l i f e is 5 c a n b e w r i t t e n as:
180 SMALL MINES DEVELOPMENT I N PRECIOUS METALS

u s i n g i n n o v a t i v e technology and c o s t saving

Annual revenue = 250 X 360 X g r a d e X 0.7 X 400 a l t e r n a t i v e s . It i s hoped t h a t t h e c a p i t a l and
o p e r a t i n g e s t i m a t i n g formulas a s w e l l a s t h e
Thus, 3.4736 = 25.2 X g r a d e economic e v a l u a t i o n t a b l e s presented h e r e i n w i l l
provide economic g u i d e l i n e s f o r developing and
or Grade = 3'4736 = 0.138 oz/T o p e r a t i n g s m a l l precious metal mines.
7"x2-

It should b e noted t h a t i n t h e above

c a l c u l a t i o n s t h e s a l v a g e v a l u e of t h e p l a n t i s n o t
taken i n t o c o n s i d e r a t i o n . This should provide
a d d i t i o n a l funding f o r t h e subsequent mining
project .
The above technique i s used i n c a l c u l a t i o n of
grade f o r various scenarios u t i l i z i n g d i f f e r e n t
R O I , production l e v e l , mining, method and
p r o c e s s i n g techniques. The r e s u l t s a r e summarized
i n Tables 1-6.

Table 1 = Open-Pit Mining -

Heap Leach- CA E
W -
Table 2 = Open-Pit Mining -
Flotation Cyanidation -
Table
Table
3
4
=
=
Open-Pit Mining
Underground Mining
-
CIP Cyanidation
-
Heap Leach CA EN - -
Table 5 = Underground Mining-Flotation-Cyanidation
Table 6 = Underground Mining -
CIP Cyanidation

ECONOMIC ALTERNATIVES

S i n c e i n s m a l l mining v e n t u r e s , a r e s t r i c t e d
tonnage must c o n f r o n t a high burden of c a p i t a l and
o p e r a t i n g c o s t s p e r u n i t t o n mined and processed,
any m o d i f i c a t i o n s which lower t h e s e c o s t s a r e
e a g e r l y sought by s m a l l o p e r a t o r s . Some o f t h e s e
a l t e r n a t i v e s include:

o Contract mining of t h e e n t i r e orebody a t one

time t o avoid c a p i t a l investment and r e a l i z e
lower o p e r a t i n g c o s t a s s o c i a t e d with h i g h e r
tonnage. Such a scheme a p p e a r s v e r y
a t t r a c t i v e f o r dump o r heap l e a c h i n g
operation.

o Use of p o r t a b l e o r movable p r o c e s s i n g
f a c i l i t i e s and u n i t i z e d o r modular
c o n s t r u c t i o n t e c h n i q u e s . The deployment of
such systems a l l o w s r e u s e of t h e same p l a n t
a t more than one l o c a t i o n (mine) r e s u l t i n g i n
c o n s i d e r a b l e s a v i n g s i n c a p i t a l investments
and making t h e s m a l l o p e r a t i o n s economically
attractive.

The c o s t of a 75 mtpd Caravan M i l l mounted on

t r a i l e r s and i n c o r p o r a t i n g a complete CIP-
Cyanidation c i r c u i t is e s t i m a t e d a t about US$ 2.5
m i l l i o n . A comparable non-portable f a c i l i t y would
c o s t about US$ 0 . 8 m i l l i o n . The primary advantage
o f t h e p o r t a b l e f a c i l i t y i s t h a t it can be moved t o
a new l o c a t i o n i n days and t h e new o p e r a t i o n
s t a r t e d more o r l e s s immediately with g e n e r a t i o n o f
i n s t a n t c a s h flow. T h i s i s e x a c t l y what a s m a l l
g o l d mining o p e r a t o r wants. With a 3 t o 5 y e a r
mine l i f e involved i n s m a l l e r o p e r a t i o n s , a mobile
p l a n t can be used i n 3 t o 5 s e p a r a t e mining
operations before replacing t h e plant.

From t h e f o r e g o i n g p r e s e n t a t i o n i t i s a p p a r e n t
t h a t s m a l l mining o p e r a t i o n s c a n be r u n a t a p r o f i t
 SIMPLIFIED ESTIMATING GUIDE FOR EVALUATION

TABLE I TABLE 3
GOLD EXPLORATION GOLD EXPLORATION
PROJECT EVALUATION: OAN-PITIHW LWCH PROJECT EVALUATION: OAN-PlT/CYANIDATIOKCIP
MlNlNG TYPE = OPEN-FIT MlNlNG MlNlNG TYPE = OPEN-FIT MlNlNG
PROCESS = HEAP LEACH: CRUSHED ORECAEW PROCESS = CYANIDATION: CARBOKlKWLPClP
ORE RECOVERY FACTOR = 70.00 ORE RECOVERY FACTOR = 90.00
MlNE LlFE = 5 MlNE LlFE = 5
WORKING DAYS/YEAR = 360.00 WORKING DAYS/YEAR = 360.00
ORE VALUE IN DOLLAR = m . 0 0 ORE VALUE IN DOLLAR = 400.00

DAILY TONNAGE AND GRADE DAILY TONNAGE AND GRADE

PAYW PAYW
ROR 100. 150. 200. 250. 300. 350. 400. 450. 500. va ROR 100. 150. 200. 250. 300. 350. 400. 450. 500. va

10. .I62 ,148 .I39 ,132 ,127 ,123 .I20 ,117 . I 1 4 3.79
15. . I69 . I 54 ,144 . I 38 . I 32 . I 28 . I 25 . I 22 . I 19 3.35

20. ,176 .I60 ,150 ,143 ,138 ,134 ,130 ,127 ,124 2.99
25. . I 83 ,167 ,157 ,149 ,144 . I 39 ,136 .I33 ,130 2.69

30. ,190 . I 74 ,163 ,156 .I50 ,145 ,141 .I38 .I35 2.44

35. .I98 ,181 . I 70 ,162 ,156 ,151 ,147 ,144 ,141 2.22
40. ,206 . I 88 . I 77 . I 69 ,162 . I 57 . I 53 . I 50 . I 47 2.04

45. ,214 . I 96 . I 84 . I 75 . I 69 . I 64 . I 59 . I 56 .I53 1.88

50. ,223 ,203 ,191 .I82 . I 76 . I 70 ,166 ,162 . I 5 9 1.74
D: .2M .3M .4M .4M .5M .6M .7M .EM .9M D: .2M .3M .4M .4M .5M .6M .7M .EM .9M
R E S E W IN MILLION TONS R E S E W IN MILLION TONS

TABLE 2 TABLE 4
GOLD EXPLORATION GOLD EXPLORATION
PROJECT EVALUATION: O#N-PITIFLOTATION-CYANIDAmON PROJECT EVALUATION: UNDERGROUND/HW LEACH
MlNlNG TYPE = OPEN-MT MlNlNG MlNlNG TYPE = UNDERGROUND MlNlNG
PROCESS = FLOTATIOKCYANIDATION PROCESS = HEAP LEACH: CRUSHED ORE-CAW
ORE RECOVERY FACTOR = 80.00 ORE RECOVERY FACTOR = 70.00
MlNE LlFE = 5 MlNE UFE = 5
WORKING DAYWEAR = 360.00 WORKING DAYSWR = 360.00
OREVALUE IN DOLLAR = 400.00 ORE VALUE IN DOLLAR = 400.00

DAILY TONNAGE AND GRADE DAILY TONNAGE AND GRADE

PAYW PAYW
ROR 100. 150. 200. 250. 300. 350. 400. 450. 500. Va ROR 100. 150. 200. 250. 300. 350. 400. 450. 500. Va

10. .I91 .I73 ,161 .I52 ,146 ,141 ,137 . I 3 3 .I30 3.79 10. ,359 ,321 ,297 ,281 ,268 ,258 ,250 ,243 ,237 3.79
15. ,373 ,333 .303 ,291 ,277 ,267 ,258 ,251 ,245 3.35
20. ,389 ,346 ,319 ,301 ,287 ,276 ,267 ,259 .252 2.99
25. ,405 ,359 ,331 ,311 ,296 ,285 ,275 ,267 ,260 2.69
30. ,421 ,372 ,343 ,322 ,306 ,294 ,284 ,276 ,269 2.44

35. ,438 ,386 ,355 ,333 ,317 ,304 ,293 ,285 ,277 2.22
40. ,455 ,401 ,368 ,345 ,327 ,314 ,303 ,294 ,286 2.04

45. .473 ,416 ,381 .356 ,338 ,324 ,313 ,303 ,295 1.88
50. ,491 ,431 ,394 ,368 ,349 ,335 ,322 ,312 ,304 1.74

D: .2M .3M .4M .4M .5M .6M .7M .EM .9M D: .2M .3M .4M .4M .5M .6M .7M .EM .9M
RESERVE IN MILLION TONS RESERVE IN MILLION TONS
182 SMALL MINES DEVELOPMENT IN PRECIOUS METALS

TABLE 5 TABLE 6
GOLD EXPLORATION GOLD EXPLORATION
PROJECT EVALUATION: UNDERGROUND/FLOTATION-CYANIDATION PROJECT EVALUATION:UNDERGROUND/CYANIDATION-CIP

MINING TYPE = UNDERGROUND MINING MINING TYPE = UNDERGROUND MINING

PROCESS = FLOTATION-CYANIDATION
ORE RECOVERY FACTOR = 80.00
PROCESS
ORE RECOVERY FACTOR -
: CYANIDATION: CARBON-IN-PULP (CIP)
90.00
MlNE LlFE = 5
WORKING DAYS/YEAR = 360.00
ORE VALUE IN DOLLAR = 400.00
MlNE LlFE
WORKING DAYS/YEAR -
:

ORE VALUE IN DOLLAR = 400.00

5
360.00

DAILY TONNAGE AND GRADE DAILY TONNAGE AND GRADE

PAY001 PAY001
ROR 100. 150. 200. 250. 300. 350. 400. 450. 500. Va ROR 100. 150. 200. 250. 300. 350. 400. 450. 500. Va

10. ,388 ,343 ,316 ,297 ,282 ,270 ,261 ,253 ,246 3.79 10. ,336 ,300 ,276 ,260 ,248 ,238 ,230 ,223 ,217 3.79

50. ,535 ,469 ,428 ,400 ,379 ,362 ,348 ,337 327 1.74 50. ,456 ,401 ,366 ,343 ,325 ,311 ,299 ,289 ,281 1.74

D: .2M .3M .4M .4M .5M .6M .7M .EM .9M D: .2M .3M .4M .4M .5M .6M .7M .EM .9M
RESERVE IN MILLION TONS RESERVE IN MILLION TONS