Lecture Unit 9

Lecture Unit 9 - Introduction to Mining Lecture Unit 9:...

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Introduction to Mining Lecture Unit 9: Cutoff Grade Calculations Colorado School of Mines Mining Engineering Department Spring 2007
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Definition of ore (yet again) Ore: A natural aggregation of one or more solid minerals that can be mined, processed and sold at a profit . The key concept is 'extraction leading to a profit'. For engineers, profits can be simply expressed by the relationship: Profits = Revenues - Costs What characteristics or factors govern profitability? Remember the dynamics of Orebodies? (e.g., basketball & the banana)
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NRV = Gross Recoverable Value – Direct Production Costs GRV = (Grade) x (Mill Recovery) x (Smelter Recovery) x (Price – SRF) x CF DPC = Rule of Thumb: If GRV ≥ 2 x DPC, property is GENERALLY consider a good one worthy of investment In this context, Profit is viewed as a function of Net Recoverable Value. What factors or variables are missing? Ore Valuation
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Cutoff Grade Determinations General Characteristics of Cutoff Grade Traditional description: a “cutoff grade is any grade that for any specified reason is used to separate any two courses of action”
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Lecture Unit 9 - Introduction to Mining Lecture Unit 9:...

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