# Assessing of Losses and Dilution Impact on the Cost Chain: Case Study of Gold Ore Deposits
## 3 Results
### Feasibility Study of GPP Operation  
Amounts of ore extraction (\(D_{ore}\), _thousand_\(t\)) for GPP are estimated as follows [62; 83; 84]:  
\[D_{ore}=B-\ \left(\frac{B\cdot L}{100}+\ \frac{B\cdot R}{100}\right) \tag{7}\]  
where \(B\) is commercial ore reserves, thousand \(t\);  
\(L\) is mining losses, thousand \(t\);  
\(R\) is ore dilution, thousand \(t\).  
Economic effect under the project scenario is estimated as the economy of operating costs, as regards semi-variable costs of ore processing. Annual economy is estimated basing on the amount of processed ore.  
Estimation of ore volumes, required to maintain productive capacity of the processing plant under varying indicators of losses and dilution, is presented in Table 5, where it is demonstrated that for every 1000 tons of processed ore under base-case scenario with 3.1% losses and 17% dilution, under project scenario with 2.1% losses and 13.0% dilution, other grade conditions being equal, amounts of processed ore decrease by 30 tons. Amount of ore extraction (\(D_{ore}\), _thousand tons_) for GPP is defined using the Formula (7).  
\begin{table}
\begin{tabular}{c c c c c c c} \hline \hline \multirow{3}{*}{**Type of Equipment**} & \multirow{3}{*}{\
\begin{tabular}{c} **Specific Labor** \\ **Tarif, S/\{t\}** \\ \end{tabular} } & \multicolumn{6}{c}{**Economy of Operating Costs Due to Changes in Workscope (\(Q_{ij}\)) at the Stages of ore**} \\ \cline{3-7}  & & \multicolumn{6}{c}{**Transportation, Stacking and Blending, 5**} \\ \cline{3-7}  & \multirow{2}{*}{
\begin{tabular}{c} **Q\({}_{ij}\)** \\ **(-5\%)** \\ \end{tabular} } & \(Q_{ij}\) & \(Q_{ij}\) & \(Q_{ij}\) & \(Q_{ij}\) & \(Q_{ij}\) \\  & & **(-10\%)** & **(-15\%)** & **(-20\%)** & **(-25\%)** & **(-30\%)** \\ \hline CAT- R 1600 & 0.40 & 121.5 & 243 & 364.5 & 486 & 607.5 & 729 \\ H & 0.23 & 69.5 & 139.5 & 209.25 & 279 & 348.75 & 418.5 \\ CAT834 & 0.23 & 191.25 & 382.5 & 573.75 & 765 & 956.25 & 1147.5 \\ TOTAL & & & & & & \\ \hline \hline \end{tabular}
\end{table}
Table 4: Susceptibility analysis: variation of operating costs due to changes in workspace at the transportation stages. Source: compiled by the authors.  
\begin{table}
\begin{tabular}{c c c c} \hline \hline
**Indicator** & **Measuring Units** & **Base-Case Scenario** & **Project Scenario** \\ \hline Commercial reserves & tons & 1000 & 1000 \\ Losses & \% & 3.1 & 2.10 \\ Dilution & \% & 17 & 13 \\ Amounts of ore, entering GPP (\(D_{ore}\)) & tons & 1139 & 1109 \\ Reduction in the amount of ore processing at GPP due & tons & - & \(-30\) \\   to improvement in ore quality & USD & 4.0 & 4.0 \\ Economy of processing costs per 1 thousand tons of ore & USD & - & 120.0 \\ Annual amounts of ore processing at GPP & tons & 6,000,000 & 6,000,000 \\ Annual economy of costs & USD & - & 720,310.0 \\ \hline \hline \end{tabular}
\end{table}
Table 5: Feasibility study of the GPP—scenario comparison. Source: compiled by the authors.  
Reduced losses of the mineral product will lead to variation in the amount of processed ore due to changes in the structure of ore inventory. Economic effect under the project scenario is generated as a result of operating costs economy, as regards semi-variable costs of ore processing, and reaches 1200 USD/t at the cost of ore processing 4 USD/t. Annual savings on processing of 6000 thousand tons of ore reach 720,310.0 USD.