Crisson Gold Mine is an actual open pit gold mine that was established in 1847 and was worked commercially until the early 1980s. Weve been open to the public since 1969 and we are the oldest gold mining establishment in North Georgia open to the public. We have instructors here that are ready and willing to help each and every person Children and Adults find some of their very own Gold. Here on site for you to see is a 130-year-old Rock crusher called a stamp mill. We still operate it to crush quartz rock which contains gold. This crushed rock is called ore. It is the only actual working stampmill in Georgia and one of two in the southeast. In addition to the stamp mill, we have rod mills and jaw crushers that we occasionally use. All of these antique gold mining machines can be seen when you visit our gold mine.
We are used to hosting tour groups, and we can accommodate your class, scout troop, or family. Families are always welcome without reservations.We have several options to choose from and you can spend an hour or all day at Crisson Gold Mine.Start planning your trip to beautiful Dahlonega and the Crisson Gold Mine.
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Apache Mill Tailings USA, Inc. is a precious metals mining company specializing in gold, silver, copper and high value, rare earth minerals reclamation recovery. To maximize profits, accelerate project success and reduce risk, we work with above ground mine and ore mill tailings deposits.
Vast treasures are waiting to be taken from selected properties with already mined tailings piles. Old processing technologies focused only on gold recovery have left behind fortunes which can be easily recovered. No mining is required. These riches are above ground and "shovel ready". Multiple environment friendly, non-toxic processing technologies are available to quickly and profitably reclaim these precious metals. Additional Benefits - We plan to use all reclamation by-product to create mortarless, interlocking building blocks and bricks perfect for construction of affordable housing, retaining walls and civic buildings. Applying this patented technology will create a sustainable, seamless complete manufactured product loop.
Harvesting Fallen Gold. Specializing in the environment friendly reclamation recovery from above ground, previously mined and milled tailings deposits, we do not have to dig or build mines. Normal mining costs are about 50% of the income derived. Apache's reclamation costs are estimated to about 3% of income. Old time ore processing only looking for gold left behind vast treasures of waste tailings piled in above ground dumping sites. Old separation technology missed tremendous amounts of gold. Vast fortunes of precious metals and rare earth elements - Not even known of at the time - were discarded. These treasures are ready to be recovered by Apache using modern processing technology. Our shovel ready, high value tailings processing reclamation business strategy will produce fast revenues and high profits margins.
Advanced Reclamation and Nano Recovery. With several high yield processing processes available to us, we can customized each project operations to deliver maximum profits as fast as possible. Utilizing our specially designed truck mounted systems we can set up production quickly and scale up to multiply production outputs as needed. Loading trucks and shipping ore to vetted crushing and processing facilities will produce rapid project revenues. We also have the option of using on site crushing equipment and non-toxic leaching systems. Dry method heat systems and advanced air separation green technology will be used on future projects. An environment friendly company, Apache Mill Tailings will lead the way in the use of current and new technologies for high profit reclamation processing.
Deposits Worth Billions of Dollars. We select the best high grade, sweet spot mining claims in prime areas of historically known successful gold mining districts. The project sites have immense above ground tailings piles that can be readily processed. Large mining projects or major ore mill processing plants, where the best ore from 100's of miles around was shipped, operated on these sites. Additional projects are being investigated and negotiated for acquisitions at this time. Our targeted projects are located in the Western USA. Assay results verify easily recoverable gold, silver and high value precious metals deposits worth Billions of Dollars. The assets, revenues and profits from these projects alone would make Apache Mill Tailings USA, Inc. a mining industry leader. A conservative projection of $186 Million Monthly Revenue can be generated from targeted projects.
Nothing on this site is to be interpreted as a solicitation or offer of any kind for any purpose in any form or content. All contents of this site is for informational purposes only and is intended only to outline the basic information of potential precious metals reclamation projects and Apache Mill Tailings USA, Inc. potential acquisitions, ownership and future targets. Upon accessing this site, all visitors hereby acknowledge this Disclaimer.
Notice: The information on this site is presented for Discussion Purposes Only. As there are both distinct regulations, security and privacy issues regarding this industry, the enclosed information is most basic and introductory in nature. The information on this site does not constitute an offer to sell or solicit the purchase of any security, nor does it constitute an obligation to underwrite, place or otherwise distribute any security described herein. The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer by Apache Mill Tailings USA, Inc. or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.
The i350is a family member of the Falcon Gravity Concentrators Gold Mining Equipment which has revolutionizing the world of alluvial gold mining and dredging the same way its little brother, the i150, has impacted the world of hard rock mining.This is a gravimetric mineral concentrator that uses enhanced gravity (Gs) to concentrate the free heavy minerals. It is also known as a centrifugal concentrator because of the centrifugal action of the spinning bowl.
Due to the ability to capture fine gold and the high concentration ratios, the i350 Gravity Concentrator can be used to minimize the length of your sluice and minimize the amount of concentrate in your operation.
iCON is a family of mineral processing products specifically designed to recover fine precious metals including Gold, Silver and Platinum. The product line includes concentrators, slurry pumps, vibrating screens and modular plants.
iCON was designed by the professional mineral processing engineers of Falcon concentrators. iCON has all the quality, reliability and performance you would expect from Canadian designed and patented equipment.
Hard Rock miners around the world have historically recovered as little as 30% of their free gold using mercury amalgamation. The iCON process is being used to scavenge/reprocess old tails without using mercury. These miners are now recovering more gold reprocessing tails with iCON than the original miners recovered. They are also recovering significant quantities of Mercury.
The number 1 application for iCON i350 worldwide is Hard Rock. The 10-15 TPH capacity and the ability to recover fine, flat milled gold are ideal for iCON. The major mines of the world use gravity concentration in their grinding circuits. The concentrators can recover over 90% of the overall production of major/professional mines.
A typical Hard Rock application would involve a crusher and ball mill. The material would be size classified using a cyclone in closed-circuit or simply a screen in semi-closed circuit milling. After the mill the material will pass through the concentrator. The major mines have a recyclic load. Their processes are designed for the feed to pass through a concentrator multiple times before passing to the tails.
A Hard Rock operator may choose to run 15 tons per hour of a high grade ore. He may choose to rinse the bowl every 20 minutes. Here, he would have run 5 tons in 20 minutes and collected 10 kg of concentrate. That is a concentration ratio of 500 to 1.
The concentrate will still need to be upgraded or cleaned to have a sellable product. Some miners around the world are choosing to collect the concentrates from multiple mine sites and clean the cons at a regional secure facility. This is known as pre-concentration.
When scavenging old tails the operator must understand that there is a reason the first miner missed this gold. It may be that it was poorly milled and needs to be re-milled to liberate more gold. In order to recover what another team missed the operator must pay attention to the details and be prepared to adjust their process as required. To understand your ore and how much gold you can expect to recover, IGR recommends testing your samples at lab.
Alluvial miners often ignore the fine gold because sluices and jigs cant catch it. Depending on the size and shape of your gold a sluice may begin to lose gold at 40 mesh. Some alluvial deposits have 90% of their gold finer than this. This is where enhanced gravity, iCON, is the only solution.
Concentrators are being tested on the ends of sluices and dredges. In this case the operation is still capturing the same amount of gold in the sluice. The added value of the concentrator becomes very clear.
After seeing the additional recovery of the concentrator some operators are choosing to redesign their process. An efficient plant design would include a screen (typically 2mm or 10 mesh) where only the coarse material will be routed to a sluice and only the fine material will be routed to your concentrator.
iCON is a family of products specifically designed to recover fine gold and provide the correct modular process to various regions of the world. iCON was designed by the professional engineers at Falcon Concentrators and uses the same patented technologies used at the largest mines in the world.
The heart of the iCON family are the world famous i150 and i350 Concentrators. iCON uses classification and enhanced gravity in its centrifugal concentrators to ensure that you are recovering the most gold possible.
iCON is supported by governments around the world due to its ability to recover gold without the use of mercury. iCON was designed for the United Nations Global Mercury Project to bring professional techniques to small miners throughout the world. iCON uses the same proven technology as the Falcon brand of professional mining products: it was designed by Falcons engineers and is now a product of iCON Gold Recovery Corp.
The iCON Concentrator is designed to capture all heavy minerals including Gold, Silver and PGMs and Mercury. It uses enhanced gravity to concentrate very fine, free minerals that are not recoverable using the traditional techniques of small scale and artisanal miners. The technology is based on the batch-type Falcon concentrator and designed by the same Falcon engineers that design concentrators for the largest mines in the world.
In operation, material is fed as a slurry of minerals and water into a rotating bowl that includes special fluidized grooves or riffles to capture the heavies. Periodically, a rich concentrate is rinsed out and requires further upgrading to be turned into a final gold product.
Throughout history gold processing has been plagued with inefficiency and contamination. Millions of dollars of fine gold have been discarded in the tails or washed down the creek due to inadequate processing. Other operations have long put the health of both workers, and our planet at risk with the use of mercury, cyanide and other dangerous chemicals. iCON technology successfully addresses both issues, ensuring that the highest percentage of gold is recovered and no hazardous chemicals are needed.
The most important factor in mineral processing is classification; the relative size of the gold you are processing must be known. Mineral processing is expensive and time consuming. Processing large material that is known to have no value, costs both money and time. With classification, time, energy and money will not be wasted processing excess material that is known to have no values. For example, if you know that your largest gold is .5mm then there is no reason to put 10mm material through your process. Also, the large feed will affect the efficiency of any process. The large material will hinder the recovery of the finer materials. For example, one miner improved his recovery from 40% to 70% simply by screening his feed from 8mm to 2mm. No gold was lost, because his largest gold was around 0.5mm. The iCON method will improve your process by screening your feed to the proper size (reducing the volume of feed) and increasing the percentage of gold that you recover.
iCON uses a 2 step process; classification and concentration. Your feed will be screened to 2mm (or less based on your results) before processing in the concentrator. Any material larger than the screen will pass over the nugget trap. This will give the user confidence that they are collecting the BIG gold while minimizing the feed to the concentrator and maximizing its efficiency.
In order to install your iCON you will have to consider the following: suitable footing, electrical supply, clean/pressurized water supply, feed method, tails removal method, concentration collection. You will also need to consider the height of the concentrator relative to the slurry input and tails output.
It is important to use the same size hose as the barb to supply this process water. A smaller hose, long hose or hose with bends/restriction will restrict the water flow and limit the pressure to the concentrator.
The process water should be fed from a dedicated supply line and pump. Connection to a manifold where other people may be using this same supply may cause wild fluctuation in the pressure and lead to unpredictable gold recovery.
At the time, 1890, the Author said There is, of course, nothing for us to learn from this imperfect and rudimentary gold-extraction process described here, which is doubtless destined to disappear ere long, before the progress of scientific mining, now making itself slowly felt throughout the far East. I think it advisable, however, to put on record all such crude efforts, if only to enable us to trace more completely the evolution of our modern systems of mining, and to teach us by what widely-divergent methods different races of mankind have attempted to solve one, apparently simple, problem.
Their method of mining was then, and is now, the following: A small water-furrow is first brought in at the highest possible level on a suitable hill-side, and the stream is turned down the hill. By means of a heavy long wooden crowbar, shod with a long strongly- made chisel-pointed iron socket, and with the help of the stream of water, which rarely exceeds 50 cubic feet per minute, the surface- soil and weathered country-rock are loosened and sluiced away. No trouble is taken to save any of the gold washed down, except in one or two instances where rude riffles have been inserted in the tail-race; the race is, however, carefully searched for bits of quartz showing visible gold, which are picked out and put on one side. The surface of the shales is thus stripped, and any veins of gold that may be laid bare are then worked. The principal mining- tool is a rough kind of pick, and the use of explosives, or even of wedges, is quite unknown. Neither shovels nor barrows are used ; their places are taken by broad hoes and baskets, a pair of the latter, swung at each end of a stick and holding at least 70 pounds, being easily carried up steep grades by a Chinese miner. The tunnels, small and irregular, usually incline steeply upward ; they are rudely timbered, and as timber decays rapidly in this climate, these workings cannot penetrate far into the hills, but soon have to be abandoned, and the whole series of operations has to be recommenced.
A party of 27 miners, who owned and worked a rich hillside, considered themselves to be doing well when their entire days output (they do not work night-shifts as a rule) was a little over half a ton of quartz. The quartz, as extracted from the reef, is cobbed down with hammers to about pass a 1 J-inch ring, and is then carefully hand-picked, all stone showing visible gold, sulphurets or any other favorable indications being sent to the mill and the restbeing thrown away. From one-eighth to one-half is thus rejected. I have assayed many samples of this refuse rock, which carries from 3 to 10 pennyweights of free milling gold to the ton, so that it is quite worth milling according to our modern ideas.
At first the mode of crushing adopted by the Chinese consisted in heating the rock red-hot, quenching it in water and then pounding it down and rubbing it between two stomps. About 35 years ago atilt-hammer, made entirely without iron and having a stone head, was introduced, and is still much used by individual miners. About twelve years ago the battery of three to six hammers, worked by a water-wheel, was first employed. It is said to have been copied from mills for crushing the materials of joss-sticks. Tilt-hammer rice-mills are also built. Such water-mills are usually the property of a party of miners working together.
The foot-mill shown in Figs. 1 and 2 is of the usual type, from which there are but few unimportant departures. The entire falling weight is about 45 pounds, and the length of drop about 20 inches; as a rule, these mills are worked at 15 to 20 blows per minute.
The mill shown is built entirely without iron; the stone that forms the base of the mortar is a piece of hard quartzite or of barren reef-quartz, the same material being used for the hammer-head, which is firmly held in its socket by wooden wedges, the socket being kept from splitting by a stout hoop of rattan twisted round it. Some of the mills use iron hoops, and some have iron spindles for the hammer to work on; with these exceptions and one or two other very unimportant details, the construction is always the same, though the dimensions may vary a little. There is scarcely a house in the whole district that has not one of these mills.
The Chinese usually work these mills for about eight hours per day. A shovelful of quartz is first thrown into the mortar and the mill is then worked by the foot of the miner, who stands on one or other of the stones shown in the drawings, grasping the uprights or else a cross-bar that is sometimes fastened across them.
When the quartz is supposed to be crushed sufficiently fine, the hammer-head is propped up, and the crushed stone is scraped out and sifted through a circular sieve 15 inches to 20 inches in diameter, and about 1J inches deep. The sieve itself is made of thin strips of rattan about 0.1 inch in width. There are from 36 to 40 holes per square inch, so that the width of mesh varies between 0.04 and 0.06 inch. A man can crush in a working day, with one of these mills, from 70 lbs. to 140 lbs. of stone, according to its hardness.
The number of heads in a power-mill varies between 3 and 6, depending principally on the quantity of water available. As the district is well watered, the large majority are 6-stamp mills; out of 11 power-mills which it contains, 8 are 6-stamp mills. Figs. 3 and 4 show the usual type of the latter mills, from which pattern there is practically no departure. I could not even induce the Chinese to try a curved cam instead of a straight one, as they seemed to consider such innovations dangerous ; and they added that wood and water were both cheap enough. As will be noticed, the construction of the water-wheel is extremely crudethe water, which issometimes brought down very steep hills from considerable heights in small, highly-inclined ditches, strikes the flat buckets with considerable velocity, so that the wheel is partly an impact and partly a pressure wheel; the buckets are never more than half-filled at the best, and the wheel is sometimes allowed to wade in tail-water to the full depth of the shrouding. Much power is accordingly wasted, the amount of water consumed in driving one of these mills beingfrom 80 to 100 cubic feet per minute. The average number of drops of each head varies between 27 and 32 per minute; the length of the drop is about 2 feet, and the effective falling weight of the head is about 70 lbs. Thus only about one-third of the theoretical power of the water is utilized, but of course much of this loss of energy is due to the friction of the whole machine, notably between the straight cam and the tailpiece of the hammer. There are usually 3 men per shift working one of these mills, 2 being engaged in looking after and feeding the machine, while the third sifts thepounded stone as already described, throwing back under one of the hammer-heads whatever will not pass the sieve.
The cost of one of these mills complete, including a substantial shed over it thatched with palm leaves, but excluding the water- furrow, is said to be about very little, and they are supposed to last from 5 to 7 yearsneeding, however, constant repairs.
A stone hammer-head lasts from a week to a month, according to its quality. They are made, as in the foot-mills, from boulders of quartz rock, and it is mostly one mans business to search for these boulders in the bed of the stream, and, when found, to dress them into shape.
I tested the degree of fineness to which these mills reduce the quartz by differential siftings of a number of samples, taken by spoon-sampling the heaps of crushed ore lying at various mills. The results of some of my tests are given in the following table :
It appears from the above table that a great deal of the ore is crushed very fine (too fine, indeed), while some is not fine enough. As about 40 per cent, of the ore will pass through a 6,400 sieve, there must be much over-stamping, resulting, no doubt, in the production of a great deal of float-gold and slimes.
After the mill has been running for a longer or shorter period, according to circumstances, a clean-up takes place. The crushed ore is carried out in large wooden pails to a Chinaman, who washesit, squatting down by the side of a square pit, through which a small stream of clear water is kept running. The implement used for washing is a flat, somewhat conical wooden dish, cut from the spurs of certain hard-wood trees, and fashioned with much care. It is known as the dulang, and much resembles the Spanish-American batea, except that the section of the former is that of a very obtuse rounded cone, while the section of the latter is approximately that of a sphere.
A section of a typical dulang is shown in Fig. 5. Much importance is attached to the correct shape of the conical point, as it is in this that the precious metal is gathered together. The dulang is filled with from 10 to 15 lbs. of crushed stone, according to its size, and this is washed by a curious circular, combined with a slight undulatory motion, by which the particles of light, barren quartz are swept over the edge of the dulang, which is held just dipping below the surface of the water in the pit, while the heavier particles are collected in the rounded apex of the cone. When nearly cleaned, the gold and concentrates are transferred to a smaller, very carefully made and polished dulang, about 1 foot in diameter, in which thequartz is washed off as thoroughly as possible, and the gold, by a skillful jerk, is thrown clear from the sulphurets, and finally collected in a small brass dish. The sulphurets still retain much coarse gold, to which they cling obstinately. They are ground as fine as possible on a stone and re-washed several times, a good deal of the gold being thus separated and added to that previously obtained. Even then the sulphurets still carry much gold, the larger portion of which is free. They are stored away in jars while wet and allowed to rust, and after a time they are sometimes re-crushed and re-washed ; very often, however, they are merely allowed to accumulate and are not treated further. The first tailings are re-washed, and then stacked.
The cleaned gold is dried and melted over a small forge provided with a box-shaped wooden blower of the usual Chinese type. The fuel is charcoal. Tiny, conical crucibles, capable of holding about a couple of ounces of gold are used; the gold-dust is melted in these with borax and niter as fluxes; the slag is lifted off the surface of the gold when the latter is supposed to be clean, by means of an iron rod, and the gold is then granulated by pouring into water. If it is not considered to be sufficiently soft and pure it is re-melted, and the process is repeated until the gold is quite soft. The principal impurities removed seem to be sulphur, arsenic, a little copper, and perhaps traces of lead. Both the granulated gold and the crude gold-dust, as also gold got from river-washing, are used as currency in this district, coined money being scarcely ever seen here, and then only in the form of the old dollar.
In a partial wash-up at one of these mills, during my stay in the district, the following results, considered to be exceptionally good, were obtained, the quantity washed being as nearly as possible 2000 pounds of crushed ore:
As a general rule, there seems to be left in the tailings about one- third of the gold originally present in the ore, while there must be a considerable additional loss of float-gold carried away in the process of washing, due to the original fineness of some of the gold in the ore, and to the over-stamping already referred to.
From the average of these two assays it would appear that nearly one-third of the original proportion of gold is still left in the tailings. I might quote numerous other assays, but the results in all cases were approximately the same; there were no really clean tailings at all, in spite of the fact that they were all the result of handling sur- face-ores, where practically the whole of the gold was free. The losses above indicated appear enormous, but it must be remembered that the thrifty Chinamen throw nothing awaynot even tailings; however completely, in their opinion, these may be exhausted, they still pile them up and keep them. When, for any reason, their mill would otherwise be idle, they re-pound and re-wash their old tailings, and always get some gold out of them. The piles of tailings are, however, left exposed, so that a considerable proportion gets washed down into the streams and rivers by the heavy rains that occur at each change of monsoon ; and there are a good many Chinese of the poorer classes who make a sort of living by washing the sands in the river-beds, the gold they get being principally, to all appearance, that which has been thrown into the rivers by the miners up stream. It is noticeable that there is no gold, or very little, to be found in the rivers above the points where there are mines in operation. A fair days work of one Chinaman in the river-bed (say six hours actual work) was found, as the average of several trials, to produce an output of 7.3 grains of gold about .940 fine, worth say little in localcurrency. This quantity of gold was obtained by washing 22 large dulangs of gravel, each holding about 70 pounds of dirt.From the average of these two assays it would appear that nearly one-third of the original proportion of gold is still left in the tailings. I might quote numerous other assays, but the results in all cases were approximately the same; there were no really clean tailings at all, in spite of the fact that they were all the result of handling surface-ores, where practically the whole of the gold was free. The losses above indicated appear enormous, but it must be remembered that the thrifty Chinamen throw nothing awaynot even tailings; however completely, in their opinion, these may be exhausted, they still pile them up and keep them. When, for any reason, their mill would otherwise be idle, they re-pound and re-wash their old tailings, and always get some gold out of them. The piles of tailings are, however, left exposed, so that a considerable proportion gets washed down into the streams and rivers by the heavy rains that occur at each change of monsoon ; and there are a good many Chinese of the poorer classes who make a sort of living by washing the sands in the river-beds, the gold they get being principally, to all appearance, that which has been thrown into the rivers by the miners up stream. It is noticeable that there is no gold, or very little, to be found in the rivers above the points where there are mines in operation. A fair days work of one Chinaman in the river-bed (say six hours actual work) was found, as the average of several trials, to produce an output of 7.3 grains of gold about .940 fine.
It is interesting to note that in custom-milling, of which there is a good deal done here (many of the fossickers sending all the gold quartz they collect, whether by mining or picking out of the river- gravels, to one of the water-mills for crushing), the charge made is equal to just a few $U. S. per (long) ton of quartz, this payment including the washing of the gold, but not, so far as I can make out, its cleaning and melting.
It is obvious from the above description, that the total quantity of stone crushed by all the mills in the district, supposing them all to be going simultaneously, and including the foot-mills, could not exceed some 12 tons a day at the best, an amount that could be far more economically and efficiently handled in a five-stamp Californian mill of moderate power. Yet the total annual output of gold from this district (including, however, alluvial as well as reef-gold) is said to be 4861 ounces, fully .900 fine. The total number of men engaged in mining, in one way or another, is close upon one thousand.
DOVE Diamonds and Gold mining equipment are configured for different ore type, laterite, heavy clay, gravel and black sand. Wash plants are designed for highest recovery and minimum operator requirements.
DOVE is a major manufacturer of hard rock gold mining equipment, and hard rock mining equipment, and crushing plants for base metals, ferrous metals and light metals, producing Ball Mills, Jaw Crushers, Cone Crushers, Magnetic Separators, Shaking Tables, Gold Concentrators, Rotary Dryers, and Flotation Process.
Each processing plant is designed tailor made according to the ore characteristics and the mineral composition of the ore, and designed for the 100% recovery of gold and other metals production, with no loss.
DESERTMINER is a Dry Mineral Processing Plant developed by DOVE to simultaneously concentrate, separate and recover gold, platinum group metal, base metals, ferrous metals from Alluvial deposits, as well as Hard Rock deposits, that are located in dry areas, where water not available.
DESERTMINER is designed and configured to deliver a high efficiency in mineral processing, with 100% recovery of gold and other metals and minerals, with no loss, similarly to the wet mineral processing plants.
DOVE designs and manufactures high recovery Beneficiation Plants. Beneficiation plants are composed of different types of machines and separators depending on the metals and minerals composition and characteristics, designed for high economic recovery in a customized configuration that will meet the projects specifications. These plants can include Flotation Machines, Dryers, High Intensity Magnetic Separators, High Tension Separators, etc. They can be used for both hard rock (primary) and alluvial (secondary) deposits.
DOVE supplies the state of art inGold Refinery technology, which is designed to produce and refine raw gold production to international standard purity of 999.95. DOVE refining units are supplied in capacity ranges of 6 kg up to 150 kg. The units are based on advanced Aqua Regia process and it is designed to refine gold, silver, copper. The refining units are configured with the latest technology to comply with the highest environmental standards, which includes neutralization towers for fumes, etc.
Every mining operation requires sophisticated gold room in order to ensure the highest recovery of gold production. To this end DOVE supplies and manufactures a complete range of equipment, instruments, tools and accessories, which includes Gold Concentrating Table, Gold Centrifugal Concentrator, melting furnace, crucibles, ingot molds, scales, and assay instruments.
DOVE supplies Flame Atomic Absorption Spectrometer (AAS) for Fire Assay Analysis, Portable Mineral Analyzer and Professional Lab Mineral Analyzer for XRF Test, and equipment for Gravity Separation Test such as Lab Jig Concentrator and Lab Concentrating Tables. Several other types of equipment including Lab Induced Roll Lift Magnetic Separator, Lab Isodynamic Magnetic Separator, Lab High Tension Separator, Sampling Pulverizer, Sieve & Shakers, Bench Drill Machine and High Voltage Rectifier are part of the range of DOVE laboratory equipment.
DOVEsupplies advanced and highly accurate range ofMetal Detectors. It is designed for ease of operation in highly mineralized soil condition. It provides a practical solution during exploration and prospecting different terrain with ease and dependability. DOVE Metal Detectors are designed for various depths and conditions.
DOVE provides a complete range of minerals assay testing services, for both alluvial (placer) and hard rock (primary) deposits. DOVE mineral assay services include Gravity Separation, Fire Assay Analysis and XRF Analysis for identification of gold, platinum, other metals and minerals concentration and simultaneously analyze up to 32 other elements, metals and minerals.
Reliable assay and minerals testing of your mine samples can lead you to the most efficient and best equipment configuration and plant design for the highest recovery of production and return of investment.
Our dedicated team of geologists and engineers bring decades of international mining industry experience, spanning the full mining cycle: from project generation and exploration through mining, mineral processing, and reclamation. Backed by an extensive and unparalleled in-house cost database with 35+ years of history, this is a unique combination in the industry that allows us to conduct prefeasibility-level cost estimates and project evaluations with unprecedented reliability and efficiency, allowing you to make better mine project investment decisions.
Our concentrates come from the amount of dirt we take from our gold mine and run through the trommel. All the lighter sand is washed out while all the gold and the heavy sand stays in the sluice. This is a natural process no gold is taken out or added!
The following document outlines a mining business proposal to design and construct a free standing toll plant facility, known in this document as Peru Toll Treatment (PTT), in southern Peru to accommodate the needs of a growing quantity of small scale miners who produce up to 14 percent of the countrys annual gold production. The plan includes the basic design criteria on which the plant will be built, the model for generating revenue and a detailed annual cash flow forecast for the proposed operation for a period of ten years.
The proposed 7.5 tonne per hour plant will cost approximately $2.9 million to design (including $473,000 in VAT taxes which will be reimbursed from revenues), construct and startup and will generate revenues by providing a custom milling facility for small producers who sell their production to the plant. This business opportunity does not include any involvement in mining or the production of mineral. It only involves the purchase and treatment of gold minerals. While the market for such a plant can easily accommodate a 350 tonne per day operation the business plan is based on processing 150 tonnes per day only with the ability to later expand to multiple plants of 350 tonnes per day each.
The plan calls for raising the $2.9 million from public equity financings. Once in operation, the operating company will retain $250,000 for working capital and all subsequent profits will be paid to the shareholders every 3 months as a dividend. The cash flow model is for a single plant of 150 tonnes per day, calculated on an after tax (Peruvian fiscal regime) basis for a 10 year project life. On a project basis using a $1500 per ounce gold price and a discount rate of 10 percent the project will generate a net present value of almost $22.0 million. The payout of the capital investment on a project basis is 1.1 years and the calculated rate of return is over 200%. Testing the project economics against changes in the primary input variables (capital cost, operating cost and gold price) indicates that the project is very robust and even with significant increases in costs or reductions in revenue sources the project has a positive rate of return.
Appendix 5 of this Business Plan includes expressions of interest from two formal miners who are 100% owners of their concessions and can offer 450 tonnes per day of production. PTT has visited one of the mines and confirms the potential for a 350 tonne per day operation. In order to facilitate the commencement of mining production PTT intends to rent $100,000 of mining equipment to these owners as part of a preferred mineral provider position. This cost has been included in the project economics.
This Business Plan is based on the construction and operation of 1 plant to demonstrate the profitability of the toll treatment plant concept. During this first year of operation the management will be evaluating expansion opportunities in other areas of the country as well as at the current site. PTT intends to build and operate 4 350 tonne per day gold plants in Peru within 5 years and the company will generate an estimated after tax, net cash flow of $40 million per annum.
PTT believes that health, environmental and social improvements will accrue to the informal miners in those areas of Peru in which the Company operates and these are important aspects of the expansion phase of the project. Current informal mining practice involves the uncontrolled use of the toxic substances mercury and sodium cyanide to obtain the gold at very low recovery rates. Many of the informal miners are, in effect, stealing the gold from the government or legitimate concession holders causing significant social disruption in the affected areas of the country. It is, therefore, an important aspect of this business plan to reduce the negative health and environmental aspects of informal mining activity by offering an advanced technology which safely removes up to 90% of the gold from the ores resulting in a much higher payback to the people who mine the ore. Purchasing gold ores from informal miners who do not own their concessions is illegal in Peru and rightfully so. It is the intention of PTT to work with informal miners to ensure that they legitimize their activities by entering into registered contracts with the owners of the mineral resources.
There are risks to the project but most can be mitigated by doing appropriate engineering prior to plant design and construction. The plant will use standard gold processing technology and country/political risk is the greatest threat to the project. Peru has signed free trade agreements with both Canada and the United States which is normalizing its business activities.
From the days of the Spanish conquest, foreigners have come in search of theproducts of Perus mines and the mining sector has been a core part of the economy up until the modern era. Operations at the historic zinc-mining center of Cerro de Pasco began in 1905 and the Metallurgical Complex at La Oroya started production in 1922. Much of Perus rail network was created to serve the needs of the mining industry. Nevertheless, relatively little exploration was carried out in the 1960s and 1970s and development of the mining sector came to a halt. Perus favorable geology has been under-exploited and while reserves have been exploited intensively in the US, Canada and Chile, to date only about 12 per cent of Perus mineral resources have been identified.Peril has the capacity to double or triple current levels of output, especially in base metals. In all, Peru holds about 16 per cent of the worlds known mineral reserves, including 15 per cent of copper and 7 per cent of zinc reserves.
Mining activity contributes 45% of foreign currency to the national economy which implies investment commitments, promotion of a modern managerial philosophy, increased responsibility towards safety and care of the environment as well as improved rural social development.
While mining provides relatively few jobs, it is vital to Perus economy in other ways. Thanks both to high mineral prices and rising output, mineral exports were up by almost half last year, and accounted for 55% of total exports. Mining brings in 29% of total tax revenues. Of this money, the government last year returned $138m as a local royalty to mining areas, most of which are otherwise poor and remote.
As a result of its favourable geology and improving economy Peru is taking a dominant position in the production and sale of many base and precious metals. It occupies first place in Latin America in zinc, tin, lead and gold; second place in silver and copper; fifth in iron. In the context of world mining production, Peru is in fifth place in gold, second place in silver, third place in tin, fourth place in zinc and lead, fifth place in copper and twenty-fifth place in iron as shown on Table 1 below.
Since the constitutional and business/economic reforms of the early 1990s Peru has enjoyed a robust economy with strong economic growth tied closely to the business cycles of its primary metals production. The country allows any person or company to create and own a Peruvian entity and all profits can be repatriated to another jurisdiction free of additional levies.
The tax code is relatively simple and taxes are calculated as 30% of net profits after depreciation. Machinery and equipment are all subject to depreciation on a straight line basis and the majority of items are considered to have a 10 year life. A recently introduced royalty provision requires an additional payment to the government depending upon mine production level the higher the production level, the higher the royalty to a maximum of 3% of sales. Currently small producers (less than 350 tonnes per day) are exempt from this royalty.
Labour laws are not restrictive and employee burden is approximately 30% of base salary. Unskilled labour is relatively inexpensive and university trained and skilled trades labour are paid commensurate with the level of training. Skilled and professional talent exists in abundance and is of a high quality.
Peru has a long history of political instability. In 1993 Alberto Fujimori enacted several far-reaching legal and constitutional reforms which have stabilized the political situation. Although he left the country under a cloud of suspicion in 2001, his legacy is a well performing economy and a gradually improving jurisprudence and governing infrastructure. As the government bureaucracy becomes more stable and professional the incidence of corruption is diminishing. Corruption remains an unfortunate fact of life in Peru but it has noticeably declined in the past 10 years.
The governments of Alejandro Toledo and Alan Garcia have been much maligned but the outgoing president has turned over to the new president (on July 28, 2011) an enviable economic record and a strong financial position.
There is a confidence in the Peruvian economy as it moves forward buoyed by continued high commodity prices and a wider spreading wealth across all social classes. Many of functionaries have made considerable personal advances on thebasis of the resurging mining economy so it is expected that the new government will be friendly to the mining industry and investment.
A significant benefit of this business plan, apart from the very robust economics, is the opportunity to advance the indigenous mining industry through improving the health and environmental impacts as well as obtaining a higher recovery of gold from the mined rock returning a greater economic benefit to the mineral owners the people of Peru. PTT has commitment letters for 450 tonnes per day of mineral production from two legitimate, small scale miners and as it expands production beyond this, its policies will have beneficial impacts as follows;
Informal and small miners in Peru currently do not have the financial capacity to install modern, large capacity plants. As a result, the mine producers crush the ore in stone grinding mills called quimbaletes and then agglomerate the gold in the crushed material with natural mercury. Not only is the process very labour intensive with low productivity, it also leads to significant health problems. In order to release the gold from the mercury amalgam, the material is heated on open fires to boil off the mercury creating a mercury poisoning risk for anyone nearby including children. The mercury vapour eventually cools and condenses on the ground to create an ongoing health hazard.
As described above the uncontrolled use of mercury and sodium cyanide often lead to issues of significant environmental degradation. The gold mining regions of Peru are noted for the deep blue staining in areas where ore is leached in cyanide baths that are developed without due regard for the environment. The baths are rarely lined with geomembrane to prevent the liquid toxins from moving out into the rock and eventually into the nearby water courses. To argue that many of these areas are in arid zones with no natural vegetation or water courses does not obviate the fact that environmental destruction occurs when toxic materials are allowed to accumulate in surface soils.
All subsurface materials are owned by the people of Peru under the trusteeship of the Peruvian government and any practices which do not optimize the recovery of wealth from these subsurface materials denies thepeople of Peru their rightful share of this wealth. The antiquated processing methods described above rarely recover more than 35% to 40% of the gold from the ore material. Modern plant recovery techniques can often recover more than 90% of this same gold returning a higher value to the people of Peru.
The current state of informal mining in Peru is somewhat chaotic and in many cases, informals are, in effect, stealing ore from the concession owners who are powerless to stop them. PTT will not purchase ore from informal miners who do not have a rightful claim to the ore they are selling and will go further in attempting to bring some order to the regions in which it works by;
Thus PTT will permit informal and small scale miners to earn much greater returns on their labour (through higher recoveries of gold) with much less effort. Modern plants, built to the exacting environmental standards of the Peruvian Ministry of Energy and Mines using state of the art gold processing technologies will result in an improved environment and fewer health risks to the miners. Perhaps as important, the social chaos which characterizes many gold mining areas of Peru will become more orderly as concession owners are paid a return (royalty) on the gold mined from their concessions.
The Nazca-Ocona Gold Belt is 350 km long and 40 km wide covering portions of three Departments; Ayacucho, Ica and Arequipa. It is typified by narrow, gold bearing quartz veins, which are formed in hypothermal to mesothermal environments. The mineralized structures are found in andesitic volcanic rocks and in the intrusives of the Andean Batholith. Veins found to crosscut granodiorite and diorite, tonalite or andesite often contain higher gold grades in the diorite, tonalite or andesite than in granodiorite. The mineralization is known locally as rosario formations due to the fact that the veins tend to narrow and widen in a regular pattern much like the beads on a rosary.
The mining activity that has developed in the Nasca-Ocona belt has largely been by artesanal methods although there are some more modern mines in the area. There exist also mining formal activities of iron and copper.
Artesanal mining is characterized by its labor intensity and lack of modern mining equipment. As a result, the miners develop lodes or veins of narrow thickness but high grade Au. The veins range in width from 30 centimeters to 1.5 meters. In some exceptional circumstances they reach up to 2 m wide. The concentrations of Au range from 15 to 150 grams per tonne (gpt).
The artesanal miners selectively extract from the lode and veins using a technique called the circado. This is essentially a resuing method whereby an opening large enough for a person to work is made alongside the vein and the ore is then slashed off the wall. This reduces dilution and the ore is removed from the opening in small canister with as much as 1.6 grams of gold per 45 kilogram canister (35 grams per tonne). The treatment of the mineral begins with the pallaqueo, or hand sorting to selectively upgrade the ore before being processed or sold.
The mineral extracted from high grade (> 2 grams gold (Au) / canister), is crushed and processed directly in a quimbaletes or manually operated, wetted grinding stones at a rhythm of 30 minutes per canister. While no formal reporting is done it is believed that the gold production in lca and Arequipa is 9 tonnes of dore annually.
Cyanide is sometimes used to extract the gold and the dissolved gold is recovered using activated charcoal. Typically the tails of the quimbaletes process contains important quantities of gold that can be recovered only by cyanide. The grade of the tailings ranges between 12.8 and 25.6 gpt and contains considerable quantities of mercury (introduced from mercury amalgam processes) which end up in the cyanidation tails.
The map shown above comes from information taken from the Ministry of Energy and Mines (MEM) and includes 68 artesanal mining locations. The MEM database includes a total of 270 locations and even this is known to understate the actual number of small mining operations.
It is believed that less than one third of the mines are registered, or included in the reports of MEM. Therefore, the total material that is mined and treated is unknown. It is known, however, that the amount of informal mining activity has increased with the increasing gold price. This increases the mining potential of the zone.
Small mining in Peru is divided by MEM into two categories: traditional and artesanal. Not only is artesanal mining labour intensive with only rudimentary equipment, it is, also in general, an informal activity. Traditional mining makes use of mechanical technologies and is formally registered with the government following norms of labor relations, safety and mining hygiene, environmental requirements, the payment of taxes and reporting to the MEM. According to the statistics of the MEM, the artesanal mining contributes 14 % of the entire gold production of Peru. Half of the national exports come from the mining and from 1998 the gold is the principal product of national exportation.
The geography of Peru is such that the coastal plain is entirely desert except in those areas in which rivers run westward out of the Andean highlands. The entire coast then is truncated every 100 kilometers or so by irrigated arid lands stretching a kilometer or two on either side of the river. The mining activities which are of interest to this report take place within the mountain barrier and usually at elevations below 3500 meters above sea level (masl). While the straight line distances from these mines to the coast are not large (less than 100 km) the steep nature of the terrain makes transportation of the mineral quite difficult and expensive.
This business plan proposes to locate the plant approximately 30 kilometers south of the city of Nazca at a distance of 500 meters along the PanAmerican Highway. The next step in development will be to apply for additional mining leases, purchase the mineral and surface rights to the plant site location and convert the lease underlying the plant to a beneficiation plant lease.
Infrastructure for the plant is excellent with water available from either a well on-site (50 meters) or via pipeline approximately 5 kilometers away. Construction to bring electrical power to within 2 kilometers of the site is underway and is currently 7 kilometers from the plant location.
A local metallurgical laboratory has completed 3 cyanidation tests to determine the optimum dosage of cyanide to recover the gold in ore from the Nazca-Ocona gold belt. The composite ore sample used had a head grade of 19 grams per tonne and the ore was leached for 48 hours with intermediate samples taken to determine the rate of gold dissolution. The results of this work are shown on Figure 4 below.
It is important to note that PTT intends to use the latest gold processing technology to ensure that all Peruvian regulatory requirements are met or exceeded. None of the technology to be used is experimental and all of the equipment required can be readily manufactured in a number of fabrication shops in Peru.
This test work forms the basis for the operating cost estimate and a preliminary flowsheet as discussed below. Based on other plant experience with this material and the preliminary bench scale testing that was done it was determined that a simple cyanidation plant would recover between 92 and 95 percent of the gold from the ore.
PTT obtained a 50 kilogram sample of ores from the Nazca-Ocona area and retained the private laboratory of TECSUP to undertake 3 cyanidation leach tests at different cyanide dosages. The report from this laboratory work is included in Appendix 1 to this document.
The grade of the 50 kilogram sample was 18.7 gpt of gold and the sample was pulverized to an 80 percent passing 200 mesh size consist for the testing. The three cyanide dosages used 0.5, 1.0 and 2.0 grams per liter and the consumption of cyanide after 48 hours was 3.06, 3.58 and 3.61 kilograms per tonne. If the material is leached for only 24 hours the recovery is essentially complete and the
consumption of sodium cyanide drops to 2.5 kilograms per tonne. The three samples were placed in a glass container and agitated for 48 hours. Twenty milliliter samples of the liquid phase were extracted periodically as shown to determine the rate of extraction and identify the optimal concentration of sodium cyanide. The results of the analysis are shown on the graph in Figure 4 below.
The standard process for this plant is shown on the preliminary flowsheet on Figure 5. The list of equipment is shown on Table 3. Ore will be brought by the miners to the plant in small trucks with an average size of 10 tonne lots and the material will be dumped on a compacted patio in a segregated bay. The material will be sampled and analyzed for gold grade, impurities and moisture allowing a fair assessment to be made of its value. The owner of the material will be paid on the basis of the analytical results. The method of payment is discussed below.
From the patio, the ore will be fed by small loader over a scalping grizzly and into a 60 tonne feed bin which discharges onto a screen. The screen oversize passes into a jaw crusher and the undersize passes by conveyor to a second screen. The discharge from the jaw crusher passes onto the same conveyor and also across the second screen. The oversize from the second screen goes to a cone crusher and the undersize passes by conveyor to a 150 tonne fine ore bin. Based on the granulometry of the material tested, less than 25 percent of the ore will need to be crushed.
The fine ore is taken from the bin via conveyor and discharged into a 7 foot by 7 foot ball mill. Water, lime and cyanide are added at this point. The ball mill discharge is pumped to a hydrocyclone with the underflow going back to the ball mill and the overflow feeding a 5 foot by 5 foot ball mill. The discharge from this ball mill is also sent to a hydrocyclone with the underflow going back to the ball mill and the overflow going to the first of four, agitated leach tanks.
The leach tanks work in series and by the time the solids pass through the fourth tank the gold has been leached from the fine solids. The slurry then passes into the first of three carbon-in-pulp tanks where fine carbon particles move in counter current with the slurry to absorb the gold laden cyanide solution. The slurry is pumped from the bottom of the third tank and sent to a standard tailings facility and the liquid phase is sent to the first of three desorption tanks.
The gold laden carbon is washed with stripping solution to remove the gold from the carbon and this solution is then sent to a small electrolytic cell where the gold particles are plated onto a gold cathode. The cathodes are periodically taken to a furnace and melted to make ingots of dore bullion. The carbon is washed with hydrochloric acid to regenerate its adsorption qualities and then sent to a rotary kiln to be reactivated and reused in the process. The sintered carbon is passed across a double deck screen to remove fine particles generated in the process. The fine
carbon which is removed will be stored for subsequent burning to capture any residual gold particles. The first step in the project process following financing will be to do more extensive metallurgical testing to finalize the process flowsheet and estimate an accurate mass balance. It is anticipated that several cost savings will be made at this point. For example the gold ore from the Nazca area is very highlyoxidized and is delivered to the area plants with few rocks larger than 6 inches in size. It is not considered likely that much crushing will be required. Also the sizing of the ball mills will be more accurate and it is likely that smaller equipment will be used. The rapid reaction kinetics may allow for fewer tanks to be used. It is considered that the flowsheet presented in this business plan is conservative. The detailed design to be done post-financing will result in a target cost estimate and construction drawings.
The net result is a capital estimate accurate to within plus or minus 15 percent. Added to the installed equipment capital cost will be working capital to maintain an owners team during design and construction and to pre-purchase a one week supply of ore. The capital cost estimate quotation is included in Appendix 2 to this Business Plan.
Discussions have been held with a reputable Peruvian engineering company with extensive experience in building this size and type of plant. Basic contract terms have been agreed upon pending financing. Their preliminary cost estimate to build the plant on a turnkey basis was less than this constructors estimate.
Security is an issue whenever there exists a small object of high value such as a brick of dore bullion. Security will be built into the plant design by surrounding the facility with a fence or wall and putting the final processing equipment into securedbuilding. Workers will be required to wear company clothing and change and shower on site. Special traps will be built into all effluent discharges and private security will protect the plant.
The removal of gold bricks will be done under contract with one of the international, bonded security companies that operate in Peru and they will take custody of the gold at the plant site. There is a small asphalt airstrip at Nazca and flying the gold from this nearby town will be investigated. Plant security will be fully addressed in the detailed design stage following financing.
The plant operating cost estimate is developed from the power cost and reagent costs which are the largest cost items. Power requirement is determined by the horsepower requirements of the plant equipment and it is assumed that all power will be from the national power grid at a cost of US$0.10 per kwhr. A backup generator will be available in the event of power outages which are frequent in this part of the country. The plant operating cost estimate is shown on Table 5 below;
This manpower schedule assumes two, 12 hour shifts per day for 365 days per year requiring 3 shifts of personnel. The plant availability is assumed to be 95 percent resulting in 346 effective operating days per year. The labour cost shown in the operating cost estimate is based on this labour schedule assuming that qualified labour is paid $600 per month and tradespeople are paid $630 per month. The payroll burden is assumed to be 30 percent additional to the payment of 15 salaries in every 12 month period. Additionally a 6 percent profit sharing bonus is paid. The manpower complement at the plant is 21 operators, 8 technician/tradesmen, 3 shift supervisors, the plant metallurgist and the Operations Manager.
The Peruvian fiscal regime is well understood and has been in place for the past 12 years. The recent election assures another 5 years of political peace and the ruling Aprista party is pro-mining and is not considering significant changes to this tax regime. It is emphasized that PTT will follow all Peruvian laws with respect to the paying of all tributes and taxes including payroll taxes and profit sharing and this is reflected in the cash flow model used in this Business Plan.
Income taxes are a flat 30 percent of resource revenue and most capital expenses are amortized straight line over a 10 year useful life. The lack of accelerated write-offs has been a topic of conversation between the mining industry and the government for some time but with commodity prices at high levels it is not considered likely that any changes will be instituted at this time.
The development schedule is shown on Figure 6 below. When the project has been financed there will be a one month design phase to confirm that the flowsheet is appropriate for the project. Fifty kilograms of ore will be obtained from the operations which have signed letters of intent for this purpose.
Discussions have already taken place with a local engineering company which has the competency for this project and they have expressed, in writing, their interest in providing a lump sum bid to engineer, purchase and construct the plant. Engineering of the plant will commence as soon as the design of the flowsheet is known in sufficient detail to start sizing the equipment. As previously stated, as much as possible, the plant will be built in modules which can be easily transported to the site and quickly interconnected. Plant engineering and purchasing is anticipated to take only 2 months as many of the contractors already have construction drawings for the equipment to be installed.
As soon as the equipment list is ready, orders will be placed for the components which will all be available locally. As each plant module is designed fabrication will commence. It is anticipated that construction of the plant will require 4 months.
All necessary permits will be applied for immediately following financing. These will include construction permits, water licenses and operating permits. A local consultant with specialized skills will be hired to write the necessary permitting documents and that the whole process will take from 3 to 5 months.
The cash flow results are shown in Appendix 4 to this report and summarize the costs and revenues for a 10 year project life. The table shown assumes a gold price of US$1500 per ounce and a gradually increasing gold feed grade.
The revenue formula for the plant is based on two items; 1. A plant charge per tonne of throughput based on gold price. 2. A recovered gold payable equal to 90% of the total plant recovery. The company retains any gold recovery above 90%. 3. A marketing fee of US$20 per tonne.
When the gold ore is brought to the plant it will be evaluated and a purchase price assessed based on the average gold price of the previous 7 trading days, the ore grade and moisture content and the plant revenue factors identified above.
The processing charge was calculated from an understanding of the process charges for the major competitor to PTT. While not wanting to upset the current pricing regime, PTT will be at or below the competition at any given gold price. Note that this calculation is based on pricing at a time when the gold price was $450 per ounce. It has moved up since this time and the economics presented are based on an increase of $20 in the process charges shown below. The deviation from our competition widens as the gold price increases as shown in Figure 7 below. For clarity, this figure shows the amount paid to the sellers of the ore and is not the amount paid to the plant.
The processing fee floor value was determined from a supply cost analysis at a gold price of US$300 per ounce and a grade of 10 grams per tonne. It was determined that a charge of US$54 per tonne of ore is required to obtain a 25% rate of return on the project (at a gold price of US$300 per ounce). Based on this analysis, the processing charge is calculated according the following formula;
The operating cost has been described above and the cash flow analysis uses this cost with an additional 4% for marketing and head office administration. As gold prices have topped $1500 per ounce and additional $20 per tonne was added to this processing charge.
Two written expressions of interest have been received from concession owners who have mines currently not operating. PTT have visited the Erika mine and confirm that it is capable of producing 350 tonnes per day of gold mineralization. The total production being offered by the two formal mining companies is 450 tonnes per day.
Taxes and royalties are as described above. The capital cost allowance for all capital requirements is assumed to be a 10 percent, straight line deduction for 10 years (the assumed life of this project).
The net cash flows are then calculated as shown in the Appendix and, for this base case production scenario, the project net present value at a 10 percent discount rate is $22,000,000, the rate of return is over 200% and the payback period is 1.1 years. Figure 8 indicates the expected net present values at varying discount rates for the base case cost and revenue assumptions.
A sensitivity analysis for the project has been undertaken as shown on the spider diagram in Figure 9. The input values of gold price, operating cost and capital cost have been varied in 25% increments from 25% of base case to 175% of base case values. The slope of the criterion lines indicates how sensitive the project economics are to changes in these criterion the steeper the line the more sensitive the project economics are to that variable.
It can be seen from this sensitivity analysis that the project is extremely robust and is largely indifferent to capital cost nor very sensitive to gold price as most of the plant revenue comes from the processing charge.
The technology for winning gold from these types of ores is well understood and there are other much older and quite dilapidated plants operating successfully in the area. It can be seen from the economic sensitivity analysis that the project remains economic even with significant changes in capital and operating costs. When capital and operating costs are at 175% of the base case ($4,200,000 and $58.00 per tonne) and the ore grade and gold price are at 50% of the base case values (10 grams per tonne and $325 per ounce) the project will have an NPV10 of $3,682,000.
As stated previously, 14% of all the reported gold produced in Peru comes from small scale and informal miners. With high gold prices there are literally thousands of small miners operating in the area of interest and there is not enough plant capacity for them. Currently, a miners cooperative is being created to subsequently sign an agreement with the writers of this Business Plan.
The plant will not compete on the basis of pricing but rather on the honesty of its operation. The small miners will be given full value for their ore as determined by a third party, internationally recognized laboratory which is not currently the case. As well the plant site is located within 1 kilometer of the main Peruvian highway while the competitors plant is located approximately 2 hours from the highway along a difficult, narrow gravel road. The plant location will guarantee a continuous supply of feed stock.
Plant management has been chosen with great care and special attention will be taken to hire only qualified and reputable people. The company will also contract the services of a reputable firm to periodically audit the operations for shrinkage.
The new regime in Peru has announced that it is committed to maintaining a pro-mining position while directing additional social development funds to the outlying regions of the country. Recently the government announced that informal miners must follow the same environmental guidelines of formalized mining companies. The best insurance against fall-out from such political instability is to maintain a very lowbusiness and community profile. This area of Peru is also known for being relatively peaceful and stable thanks to the self-organizing activities of the informal miners. While they do not operate under the aegis of Peruvian mining codes and laws they do an excellent job of protecting their own interests. The World Bank has specific programs to reduce the use of mercury in artesanal gold operations and will be supportive of this plant.
The signing of free trade agreements with Canada and the United States will do a great deal to normalize Peruvian business conditions in order that they are aligned with North American practices thus stabilizing the business climate.
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New and used gold mining equipment, including shaker tables, washplants, mills, crushers, motors, dredges, drills, concentrators, drywashers, flotation cells, pumps, jigs, furnaces, ore bins, conveyors, detectors, screens, sluices, highbankers, trommels, gold pans, augers, hoppers, cranes, amalgamators, and more
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DENVER 5x4 SRL PUMP, 25 HP; Galigher 2 rubber-lined sump pump; 48 Sweco screen; Denver #12 drives/ 48 Dorr Oliver thickener mechanism; (2) 100 amp SS shut off boxes. MILLER EQUIPMENT, Tel: (865)475-7977, or send email.
Powered by JCB200 Excavator with 400 Link Belt Undercarriage. 100YPH Gold Watch Project washplant. 5 cylinder Duetz water pump. 24x8 container included with extra parts & supplies. Setup to work on land or ocean. Located in Nome, AK. Ready to work. Pictures available. $139,000 $79,000. Call ARNE BELSBY, send email or call(509)979-8265.
WANTED: WET DRUM MAGNETIC SEPARATORS in operating condition with feed tanksCASH BUYER FOR SALE: Deister 999 triple table in 40 trailer with sand screw & controls, very good condition for sale. LARRY (602)377-3774 Call or send email.
FOR SALE: 4x3 Denver SRL pump, 7.5 HP; 5x4 Denver SRL pump, 25 HP; 2 Galigher rubber-lined pump 5HP; 48 Sweco SD screen, Denver #12 drives, 48 Dorr Oliver thickener mechanism; (2) 100 amp SS shut off boxes. MILLER EQUIPMENT, Tel: (865)475-7977or send email.
EQUIP. SETUP FOR REMOTE MINE-MOUTH, NO POWER, OPS. Complete Assembly consisting of: M35A2 multi-fuel Army truck w/ mounted 10x16 rebuilt Austin-Western crusher (driven by new 50 HP Kohler gas motor). Crusher discharges to new vibratory overs/unders classifier. Unders supplies used Kamflex elevator discharging to new Stutenroth 2 tph impact mill w/ new 18 hp clutched Honda gas motor. Mill discharges to new vibratory variable speed classifier. All equip. has approx. 12 hrs. use. $34,000 OBO. If not sold by 10/31/21, equipment will be parted out & sold separately. (208)521-3649, leave a message or send email.
COMPLETE PLACER PLANT OPERATION in Arizona. Buy Any or All. Very Low Hours: Rock Systems feeder/hopper/grizzly/conveyer$30,000. Goldlands 50 YPH trommel$35,000. 6 Pump$5,000. Yukon Sluice$3,000. Goldlands sizing separator$9,000. MSI Water Clarification Unit$175,000. MSI Exit Conveyor $7,000. U-Tech Finishing Table$1,900. 4 Honda Pumps$4,000 ea. Power Panel$10,000. 75KW Generator$22,000. Cargo Trailer with tools etc.$8,000. Goldlands Spiral Separator$2,500. Much more: tools, generators, water tank, diesel tank, welding etc. Send email.
NOME 10-inch suction dredge Dola Mae 50-foot catamaran, (2) new 115 HP Yamaha 4-stroke engs. 5.9 Cummins diesel, 6X8 Berkeley water pump, new 6212 Garmin GPS. 16-wheel trailer. Sleeping quarters. $155K Send email or call WES (928)710-8404.Get in Touch with Mechanic