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Cost Estimation Handbook for Small Placer Mines

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Cost Estimation Handbook for Small Placer Mines Bureau of Mines Information Circular11987 Cost Estimation Handbook for Small Placer Mines UNITED STATES DEPARTMENT OF THE INTERIOR Information Circular 9170 Cost Estimation Handbook for Small Placer Mines By Scott A. Stebbins UNITED STATES DEPARTMENT OF THE INTERIOR Donald Paul Hodel, Secretary BUREAU OF MINES David S. Brown, Acting Director As the Nation's principal conservation agency, the Department of the Interior has responsibility for most of our nationally owned public lands and natural resources. This includes fostering the wisest use of our land and water resources, protecting our fish and wildlife, preserving the environment and cultural values of our national parks and historical places, and providing for the enjoyment of life through outdoor recreation. The Department assesses our energy and mineral resources and works to assure that their development is in the best interests of all our people. The Department also has a major responsibility for American Indian reservation communities and for people who live in island territories under U.S. administration. Library of Congress Cataloging-in-Publication Data Stebbins, Scott A. Cost estimation handbook for small placer mines tlnformation circular Bureau of 5ltnes: !ili(l I Includes bibliographies. Supt of Docs no I 28 27 9170 I Hydraulic mining-Costs. I Title 11. Series. Inibrmatlon c~rcular(United States Bureau of Mtnesl. Y 170 Foi. in :ht, Superintendent of Documents L' S Govel.nmrnt Printing OfTlce LV,i.shtngton. Dt' 20402 CONTENTS Page Page Abstract ..................................... 1 Preproduction overburden removal ............. 24 Introduction .................................. 2 Bulldozers ................................24 Acknowledgments .......................... 2 Draglines ................................. 25 Front-end loaders .......................... 26 .......................... Section 1.-Placer Mine Design Rear-dump trucks 27 Scrapers .................................. 28 Mine equipment ............................. 29 Exploration .................................. Backhoes ................................. 29 Panning ................................... Bulldozers ................................ 30 Churn drilling .............................. .............................. Draglines ................................. 31 Bucket drilling Front-end loaders .......................... 32 Rotary drilling .............................. Rear-dump trucks .......................... 33 Trenching .................................. ............................. Scrapers ..................................34 Seismic surveys Processing equipment ........................ 35 Mining ...................................... Conveyors ................................35 Backhoes (hydraulic excavators) ............... Feedhoppers .............................. 36 Bulldozers .................................. Jig concentrators .......................... 37 Draglines .................................. Sluices ................................... 38 Dredges .................................... Spiral concentrators ........................ 39 Front-end loaders ............................ Table concentrators ........................ 40 Rear-dump trucks ........................... Trommels ................................. 41 Scrapers ................................... Vibrating screens .......................... 42 Processing ................................... Supplemental ............................... 43 Conveyors .................................. Buildings ................................. 43 Feedhoppers ............................... Employee housing ......................... 44 Jig concentrators ............................ Generators ................................ 45 Sluices ..................................... Pumps ...................................46 Spiral concentrators ......................... ............................. .......................... Settling ponds 47 Table concentrators Operating costs ...............................48 Trommels .................................. Overburden removal ......................... 48 Vibrating screens ........................... Bulldozers ................................48 Sample mill design .......................... Draglines ................................. 49 Supplemental systems ......................... Front-end loaders .......................... 50 Buildings .................................. .......................... .............................. Rear-dump trucks 51 Camp facilities Scrapers ..................................52 General services and lost time ................. Mining .................................... 53 Generators ................................. Backhoes ................................. 53 Pumps ..................................... Bulldozers ................................ 54 Settling ponds .............................. Draglines ................................. 55 Environment ................................. Front-end loaders .......................... 56 Cost estimation ............................... .......................... .............................. Rear-dump trucks 57 Cost equations Scrapers .................................. 58 Cost date adjustments ........................ Processing .................................. 59 Site adjustment factors ....................... Conveyors ................................ 59 Laborrates ................................. Feedhoppers .............................. 60 Financial analysis ............................ Jig concentrators .......................... 61 Bibliography ................................. Sluices ................................... 62 Spiral concentrators ........................ 63 Section 2.-Cost Estimation Table concentrators ........................ 64 Tailings removal ........................... 65 Capital and operating cost categories ............ Bulldozers ............................... 65 Capital costs ................................. Draglines ............................... 66 Exploration ................................. Front-end loaders ......................... 67 Panning .................................. Rear-dump trucks ........................ 68 Churn drilling ............................. Scrapers ................................ 69 Bucket drilling ............................ Trommels ................................. 70 Trenching ................................ Vibrating screens .......................... 71 General reconnaissance ..................... Supplemental ............................... 72 Camp costs ............................... Employee housing ......................... 72 Seismic surveying (refraction) ................ Generators ................................ 73 Rotary drilling ............................ Lost time and general services ............... 74 Helicopter rental .......................... Pumps ................................... 75 Development ............................... Bibliography ................................. 78 Accessroads .............................. Clearing .................................. Appendix..Example of cost estimate ............. 79 ILLUSTRATIONS Paee 1. Sample flow sheet, slulce mill. .................................................................f0 2. Sample flow sheet, jig mill ....................................................................11 3. Sample flow sheet, table mill .................................................................12 4. Exploration cost summary form ...............................................................21 5. Capital cost summary form ...................................................................76 6. Operating cost summary form. .................................................................77 A-1. Sampleflowshset ............................................................................80 A-2. Capital cost summary form completed for example estimation. ......................................87 A-3. Operating cost summary form completed for example estimation .................................... 94 TABLES 1. Sample material balance, sluice mill ............................................................10 2. Sample material balance, jig mill.. .............................................................10 3. Sample material balance, table mill.. ...........................................................10 4. Cost date indexes ............................................................................17 UNIT OF MEASURE ABBREVIATIONS USED IN THIS REPORT BCY bank cubic yard loose cubic yard per d/a day per year hour ft foot micrometer ft2 square foot ft2iyd3 square foot per min minute cubic yard minh minute per hour fth foot per hour gpm gallon per minute st short ton h hour sth short ton per hour hishift hour per shift tr oz troy ounce hp horsepower tr oz/yd3 troy ounce per cubic in inch yard kW kilowatt weight percent kW/yd3 kilowatt per cubic yard per hour yard cubic yard pound per loose cubic cubic yard per day yard cubic yard per lb/yd pound per yard square foot lb/yd3 pound per cubic yard cubic yard per hour LCY loose cubic yard year LCYia loose cubic yard per year COST ESTIMATION HANDBOOK FOR SMALL PLACER MINES By Scott A. Stebbins' ABSTRACT This Bureau of Mines publication presents a method for estimating capital and operating costs associated with the exploration, mining, and processing of placer deposits. To ensure represent- ative cost estimates, operational
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