# Assessing of Losses and Dilution Impact on the Cost Chain: Case Study of Gold Ore Deposits
## 4 Discussion  
From the model above it follows that the changes in the structure of loss and dilution parameters determine the balance of volumes of production and overburden removal and the value of the average grade in the ore. Changes in the structure of losses and dilution have an impact on the operation of the entire technological chain, from the extraction stage to ore processing, including intermediate processes: transportation and stacking.  
The main results obtained in this research confirm that for a gold company there is a possibility of intensive development through use of internal reserves of minimizing costs per 1 ton of processed ore. It is proved that the effect of cost minimization and increase in profits is achieved by variation of loss and dilution parameters and is manifested as changes in gold grade of the extracted rock mass, changes in the amounts of ore blending and transportation, and reduction in the amount of ore processing. These results confirm the possibility of using the proposed methodology in order to assess the impact of technological factors on the production chain of costing. The estimation methodology proposed in the study can be applied as a basis for modeling under operating conditions of other mining companies.  
Results of research can be used in engineering surveys for justification of technological parameters in drilling and blasting (D&B) projects, e.g., estimation of rock mass grain composition, definition of orebody outlines, etc. Precise estimation of loss and dilution parameters, as well as average grade of the ore flow, allows reaching a significant effect along the production chain, as proved in the study; it can become a reserve for increasing efficiency of gold mining companies, taking into account limited possibilities of extensive growth.  
The advantage of the proposed method is that it integrates ore quality indicators and cost indicators of the whole technological cycle from extraction to processing.  
The following conditions serve as restrictions for the research:  
* The estimation method is invalid for complex deposits. Exploitation of complex deposits implies extraction of both main and associated minerals. As an outcome of mine-to-mill process, there are several types of products, e.g., commercial products of a complex gold ore deposit may include gold, silver, copper. This complicates estimation of operating and capital costs due to different prices of commercial products and different costs of their treatment.
* Estimation method is developed for specific logistical conditions of Kuranakh ore field deposits. Therefore, it requires adjustment in case it is applied at other deposits.
* The method considers the impact of only two technological parameters (losses and dilution) on the mine-to-mill chain. Other factors, dependent on geology, mining method and technique, grain composition of the rock mass, environmental cost, etc., are not taken into account.  
In future studies, an extended set of factors will provide a more detailed assessment of the process; however, considering specific characteristics and unique nature of each deposit, the obtained results will only be of value on a case-by-case basis.