The new H-W orebody— cutoff grades and mine economics
CIM Bulletin, Vol. 80, No. 899, 1987
BRUCE K. McKNIGHT, Manager, Corporate Planning and Development Mining Division, Westmin Resources Limited
The new H-W orebody was evaluated by considering its production at three technically feasible rates. Capital and operating costs were estimated for each rate and production sequences were established using mining cutoff limits generated by an ore value algorithm. The viability of the project was then examined by conducting economic and financial analyses of each of the three production cases under various world economic scenarios. These analyses employing standard profitability measures demonstrated all three cases would be economically viable; the production case which maximized the Net Present Value of the project was the one selected for development and production.
Keywords:
Economics, Orebody, Capital costs, Algorithm, Financial analyses.
