PREFEASIBILITY STUDY

FOR NORDBERG MINE

Presented by
Wangzhen Jiao (14779844)
Richard Wanke (15630133)
Zhen Zhang(15400239)
Haicong Dai(15093202)
Open Pit Optimisation
NPV balanced (by scheduling)

 Mine life: 10 years

 Waste dropped @ year 6
NPV balanced (pit by pit)

 Total pits: 12
 Production increased gradually
 Summary table from Whittle
Results

Total number of periods 10 (years) or 12 pits

Payback 2.6 years

IRR (internal return rate) 29.84%

NPV $296,718,558

Based on current price:

Cu=$3.4/pound
Au=$1350/oz
Ag=$20/oz
Open pit design
Overview & infrastructures
Pushback view
 5 pushback @
pit 2, 4, 6, 8
and 12
Equipment selection

Caterpillar 797B mining truck

Rated capacity: 360 tonnes

Fleet size: 8
Equipment selection

 
Komatsu PC4000-6 hydraulic
shovel

Rated payload: 2

Number of shovels: 1
Truck fleet-results from Talpac
Equipment selection
Dozer: CAT D9T

Production drill rig: Sandvik D45KS

Motor grader: CAT 16M

Blasting carrier: Dyno Nobel TTT truck

 Surface operating cost

Chains -
Tires - 6
6 $12000/unit Loader
Truck months $4000/u $16,000 $128,000 Shovel $24,000 $24,000 Labour 1 $120,000 $120,000
months Operator
period nit
period
Grease/ Grease/
  Lubricati $5.50/kg $25,960 $207,680   Lubricati $5.50/kg $25,960 $25,960 Truck
on on operator 8 $88,000 $704,000
Fuel - Fuel -
  400L per $1.1/L $207,680 $1,661,440   400L per $1.1/L $207,680 $207,680
day day

Spare Spare
  8 $170,000 $1,360,000   1 $170,000 $170,000
Parts Parts

Hydraul Hydraul
ic Oil - $1.90/L ic Oil -
  $62,776 $502,208   $1.90/L $67,260 $67,260
70L per 75L per
day day

Engine Engine
$2.25/L
  Oil - 50L $53,100 $424,800   Oil - 40L $2.25/L $42,480 $42,480
per day per day

Transmi Transmi
ssion Oil $2.20/L ssion Oil
  $20,768 $166,144   $2.20/L $20,768 $20,768
- 20L per - 20L per
day day
Capital Cost   No. of Unit Cost/unit Total cost
Komatsu PC
Shovel 1 $2,500,000 $2,500,000
4000-6
Truck CAT 797B 8 $4,000,000 $32,000,000
Production Sandvik
4 $2,100,000 $8,400,000
Drill Rig D45
Wheel
CAT 980H 2 $2,900,000 $5,800,000
Loader
Dozer CAT D11T 1 $2,200,000 $2,200,000
Water Truck CAT 773F 2 $3,000,000 $6,000,000
Motor
CAT 16M 1 $600,000 $600,000

Detailed capital
Grader
Charge-up Bulkmaster
1 $500,000 $500,000
Wagon (Volvo)
Light

cost for surface mining

  30 $25,000 $750,000
Vehicle
Truck
Service   1 $1,500,000 $1,500,000
Shop
Workshop   1 $500,000 $500,000
Store (spare
parts,
  1 $800,000 $800,000
consumable
s)
Office &
  1 $700,000 $700,000
Admin
Safety and
  1 $400,000 $400,000
Training
Crib Room   1 $200,000 $200,000
Meeting
  1 $240,000 $240,000
Room
Milling
  1 $30,000,000 $30,000,000
Plant
Tailing
  1 $20,000,000 $20,000,000
dams
        $113,090,000
Underground design
Overview
Block caving method
Equipment selection
  Bogger: CAT R2900

Payload capacity: 8.9

Fleet size: 2
Equipment selection

Underground truck: CAT AD55B

Rated capacity: 55tones

Fleet size: 4
Equipment selection
Sandvik DD420-60c Jumbo

Penetration rate: 4.5m/shift

Quantity needed: 2
Equipment selection
Explosive loader: Normet Charmec 9910

Grader: CAT 16M grader

Light vehicles

Underground jaw crusher: CGE300

Capital Cost   No. of Unit Cost/unit Total cost

Trucks CAT AD55B 4 $3,500,000 $14,000,000

Loaders CAT R 2900 2 $2,800,000 $5,600,000

Development Sandvik
Rig DD420
2 $2,000,000 $4,000,000 Underground capital cost
Charge-up
  1 $500,000 $500,000
Unit
Grader CAT 16H 1 $550,000 $550,000
Integrated
CAT 980H 3 $80,000 $320,000
Tool Carrier

Light Vehicle   10 $25,000 $100,000

Decline 5x5m   5600 $7,000/m $28,420,000

Drifts 4x4m   6000m $4,000/m $24,000,000

Ventilation
  600m $2000/m $1,200,000
raises
Surface    
  $4,265,000
facilities
Working    
  $5,505,000
capital
Engineering    
and   $6,715,000
management
Contingency       $5,165,000
TOTAL       $81,820,000
Ventilation
 NSW Coal Mine Health and Safety
Regulation 2006

Section 114:
The volume of air in each place where a diesel engine operates must be such that a
ventilating current of not less than:

0.06 cubic metres per second for each kilowatt of maximum output capability
of the engine, or
3.5 cubic metres per second, whichever is greater, is directed along the airway in
which the engine operates
 Underground Mining Equipment
Airflow(m3/
Type Model Number Power(kW) s)

Truck CAT AD55B 6 560 201.6

Bogger CAT R2900G 2 306 36.72
Conveyor Belt CAT EXCLON Rolls 1 450 27

Underground Crusher CGE jaw crusher 4 130 31.2

Bulk Explosive Charger Normet Charmec 1610 1 110 13.2

Jumbo Sandvik DD420-60c 2 135 32.4

Integrated Tool Carrier CAT 980H 3 158 9.48

Light Vehicle Toyota LandCruiser 10 94 56.4
Total Air Quantity Required: 404
Air flow in the tunnel by Ventsim

Four 1.4m diameter 180kw

horizontal surface fan
Staffing
 Position Number per shift
Mine manager 1
Project manager 1
Office Personal 1
Senior mining engineer 2
Mining engineer 2
Graduate mining engineer 1
Senior surveyor 1
Mine surveyor 5
Geotech
Geologist
2
1
 Roster:
Senior metallurgist 1
Metallurgist
Graduate metallurgist
2
1
 Management 8/6
Mill supervisor
Shift boss
1
2
 Operators 2/1
Mill technicians 6
Laboratory technician
Dozer operators
2
2
 7 day Week - 12
Water cart operators
Grader operators
2
2
Hour Shifts
Loader operators
Dump truck operators
3
12
 Fleet operating
Jumbo
Jumbo offsider
2
1
shifts-556
Operating hours-
Service/Paste crew 4
Charge up 2

Magazine Keeper 1
Maintenance Supervisor
Maintenance Personal
1 5425h
7
Store Personal 1
Electrician 1
Total 72
Economic Evaluation and Cost Estimation
Tax @30% 0.00 73,218,125.75
Net Income (AUD $) -3,000,000.00 170,842,293.43
Depreciation (AUD $)   -10,000,000.00
Loss carried forward(AUD $)
Working Capital - Equity (AUD $) -1,200,000.00
Working Capital - Debt (AUD $) 1,200,000.00
Debt Repayment (AUD $) -300,000.00
Write-off of working capital - salvage(AUD $)
Capital cost (AUD $) -110,000,000.00  
Cash flow (AU$) -110,000,000.00 160,542,293.43
NPV @ 12% 191,754,424
IRR 41%  

Payback @ year 2

Recommendation: Purchase of this deposit should less

than $30M
Base Scenarios Value
Tax 30%
Process cost $20.7/t
Mining cost $4.5/t
Royalties 4%
Gold price $47.62/g

Sensitivity Analysis
$90,000,00
0

$85,0
00,00
NPV

0 Tax

Process Cost

$80,000,00 Mining Cost

0
Royalties

$75,000,0 Gold Price

00

-20% -15% -10% -5%

$70,0 0% 5%% Change
10% 15%
00,00 20%
0
$65,000,00
0