1 / 40

Defining the Canadian-Class Gold Mine

Defining the Canadian-Class Gold Mine. Michael Doggett Department of Geological Sciences and Geological Engineering, Queen’s University Jianping Zhang Minerals, Oil and Gas Sector Resources, Wildlife and Economic Development Government of the Northwest Territories PDAC Toronto 9 March 2004.

nakia
Download Presentation

Defining the Canadian-Class Gold Mine

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Defining the Canadian-Class Gold Mine Michael DoggettDepartment of Geological Sciences and Geological Engineering, Queen’s UniversityJianping ZhangMinerals, Oil and Gas Sector Resources, Wildlife and Economic DevelopmentGovernment of the Northwest Territories PDAC Toronto 9 March 2004

  2. Case Study: Canadian Gold Mining • 228 gold mines operating in Canada from 1946-2000 • Production profile for each mine • Annual tonnage processed • Annual average grade processed • Annual processing recoveries • Annual gold production • Annual production costs

  3. Canadian Gold Mining • Production profiles include entire mine life plus reserves as of January 2001 • Total ore processed – 1.1 billion tonnes • Total gold produced – 7,700 tonnes • Total production years – 3,500 years

  4. Geological Attributes of Canadian Gold Mines • Composite year-over-year statistics • Totals and averages • Mine-by-mine comparisons • Geological size considerations

  5. Year-over-Year Geological Attributes • Number of mines • Ore processed • Total and average • Grade of ore processed • Gold Production • Total and average

  6. Trend in Number of Gold Mines, 1946-2000

  7. Trend in Total Ore Milled, 1946-2000

  8. Trend in Average Ore Milled, 1946-2000

  9. Trend in Average Grade of Ore Milled, 1946-2000

  10. Trend in Total Gold Production, 1946-2000

  11. Trend in Average Gold Production, 1946-2000

  12. Relationship Among Geologic Attributes • Tonnage - grade • Tonnage - gold • Grade - gold

  13. Tonnage-Grade Distribution of the 228 Mines

  14. Total Ore Milled vs. Total Gold Production

  15. Total Gold Production vs. Ore Grade

  16. Geological Size Considerations • Giant mines – containing more than 100 tonnes of recoverable gold • Large mines – containing less than 100 tonnes and more than 10 tonnes of recoverable gold • Small mines – containing less than 10 tonnes of recoverable gold

  17. Cumulative Production and Number of Mines

  18. Cumulative Coverage of Production by Number of Mines

  19. Geologically Giant Mines • 22 mines (10% of total) • 605 million tonnes of ore (55% of total) • Average size of 30 million tonnes • 4,845 tonnes of gold (63% of total) • Average gold production 220 tonnes • 8.58 grams per tonne average grade • Average mine life of 50 years

  20. Geologically Large Mines • 78 mines (34% of total) • 420 million tonnes of ore (39% of total) • Average size of 5.4 million tonnes • 2,494 tonnes of gold (32% of total) • Average gold production 32 tonnes • 6.27 grams per tonne average grade • Average mine life of 25 years

  21. Geologically Small Mines • 128 mines (56% of total) • 65 million tonnes of ore (6% of total) • Average size of 0.6 million tonnes • 371 tonnes of gold (5% of total) • Average gold production 2.9 tonnes • 6.23 grams per tonne average grade • Average mine life of 6.2 years

  22. Geological Attributes of the Giant, Large, and Small Mines

  23. Comparison of Total Geological Attributes among Giant, Large, and Small Mines

  24. Time Trends in Geological Size Attributes • Number of mines • Ore processed • Annual Capacity • Gold produced

  25. Trend in Number of Giant, Large, and Small Mines

  26. Trend of Ore Milled by Giant, Large, and Small Mines

  27. Trend of Average Mine Capacity of Giant, Large, and Small Mines

  28. Trend of Gold Production of Giant, Large, and Small Mines

  29. Trend in Gold Production Share by Giant, Large, and Small Mines

  30. Economic Quality of Canadian Gold Mines • Which of the historical mines would be economic if found today • Current technological and market outlook conditions • Base case gold price - $325 US • Base case exchange rate – 0.65 • Base case cost of capital – 8%

  31. Economic Attributes • On a before-tax basis, 102 of the 228 historical mines in Canada would be economic to develop today • These mines would generate approximately: • $100 billion in total sales revenue • $15 billion in net present value • 45% average rate of return

  32. Tonnage-Grade Relationship between Economic and Uneconomic Mines

  33. Economic Size Considerations • Giant mines – top 10% of mines based on NPV. Minimum size of $440 million • Large mines – generate less than $440 million and more than $44 million in NPV • Small mines – generate less than $44 million in NPV (1 to 10 ratio with giants)

  34. Cumulative Net Present Value by Number of Mines

  35. Cumulative Coverage of Net Present Value by Number of Mines

  36. Economic Giant Mines • 10 mines (10% of total) • $47 billion total revenue (43% of total) • Average revenue of $4.7 billion • $7.1 billion in NPV (49% of total) • Average rate of return of 50%

  37. Economic Large Mines • 42 mines (41% of total) • $43 billion total revenue (40% of total) • Average revenue of $1.02 billion • $6.4 billion in NPV (44% of total) • Average rate of return of 45%

  38. Economic Small Mines • 50 mines (49% of total) • $18 billion total revenue (17% of total) • Average revenue of $0.4 billion • $1.0 billion in NPV (7% of total) • Average rate of return of 27%

  39. Comparison among the Giant, Large, and Small Mines

  40. SUMMARY Breakdown of Economic and Uneconomic Mines by Recoverable Gold

More Related