Mine design is influenced by several factors and the gold project economy has an important effect. The design production rate should be established prior to construction of plant facilities. Basically, a particular production rate will maximize the company´s hypothetical single criterion, discount cash flow rate of return and the optimum rate must be established by financial analysis. The maximum obtainable rate of return and the applicable production rate and cutoff grade can be easily determined. Of equal importance is the use of such information to quickly evaluate the penalty resulting from business constraints, which may make the optimum production rate no appropriate.
Financing may effect the projected profit substantially and also changes the uncertainty of the financial outcome. Essentially, financing decisions are benefited by prior financial analyses. For example, the discounted cash flow rate of return may increases as the proportion of capital obtained by debt financing is increased. Nevertheless, the certainty of the outcome may become less. The optimum level of financing in this example would depend on the corporate risk attitude. The profit projections are an essential part of all financial analysis applications. As the property evolves through exploration, development, and operations, the uncertainty of profit decreases. At each stage, the remaining uncontrollable factors must be optimized as measured by the company´s criterion. Successive risk analysis performed at various times during a gold project life indicates the current degree on economic uncertainty. As more information is obtained, the uncertainty becomes less. Some uncertainty will remain until the orebody is mined out.
Gold mining is a large, vital and lucrative business. Its rewards are spread across a wide cross section of the country. Nevertheless, not all gold mining adventures are successful and some risks are high and they take several forms. It has been noted that the process of exploring and developing any gold deposit involves people with different skills and the expenditure of millions of dollars. The key question when evaluating a deposit is always the same, does the orebody contain enough recoverable gold to be dug out of the ground, processed and sold at a profit? Without any doubt there are risk and many of them has influence on the mine design. Probably, the most serious considerations are related to geology and metallurgy. The first one indicates the actual size and gold grade of the mineable portion of the orebody, and the second indicates the estimated recovery. Both factors have an impact on economics of the project.
Risk analysis at different stages of the project