How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Rakhi Vasavada Your Own Question
Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4434
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
43581946
Type Your Finance Question Here...
Rakhi Vasavada is online now
A new question is answered every 9 seconds

How much does it cost to set up an initial prospecting project

This answer was rated:

How much does it cost to set up an initial prospecting project for gold in Western Australias Mount Magnet region?

Rakhi Vasavada :

Dear Friend,

Rakhi Vasavada :

Hello and welcome. Thank you for providing us an opportunity to help.

Kindly remain online as I prepare your reply.

Rakhi Vasavada :

If you set up Gold Prospecting business, there are three major cost inputs that you need to keep in mind. They are labor, energy and grade impacts.

Having said this, per ounce cost of production is anywhere near 950-975$. In worst case scenario, it can go up to as high as $1100 Per Ounce.

Rakhi Vasavada :

I hope this helps. You may rate it positively or revert back with further queries if you have.

Warm Regards,

Customer: replied 3 years ago.

Thank you for the response, actually I wanted to understand the initial part of the gold mining business.


 


I understand that once a reserve is proven, financing would be easier to come by and I'll be able to find companies to do the whole operation. My concern is with the costs of taking a virgin land and coming to the proven certification document upon which the financing and operation can be engaged, for that part alone what would be the basic common costs?

Dear Friend,

Hello and welcome again. Thank you for your follow up question.

Yes, you are right and I understand your question. Do far as such costs are concerned,The initial capital cost estimates for the mine, process plant and associated infrastructure need to be calculated. This would include contingency and provision for pre-stripping for mining operations as well. This would easily work out anywhere between $ 500 to $600 per ounce as per your stage.

Apart from above costs, there would be other direct costs involved. Direct costs include the mining fleet, crushers, heap leach, processing plant, power, water management systems, infrastructure, communications and temporary construction camp. Indirect costs include initial fills, spares, commissioning and start-up, engineering and procurement, construction management and freight and logistics.

The make up for the remaining cost. The cost mentioned of $500-600 per ounce answers you question as such.

I hope this helps. You may rate it positively or revert back with further queries if you have.

Warm Regards,
Rakhi Vasavada and other Finance Specialists are ready to help you