# Assessing of Losses and Dilution Impact on the Cost Chain: Case Study of Gold Ore Deposits
## 3 Results
For the conditions of current experiment, threshold gold grade in the ore was taken as 1.21 g/t. Blending conditions at the stockpile are regulated by the flows, simultaneously coming from different gold deposits of Kuranakh ore field in accordance with annual plans and schedule of mining development. Economic efficiency of measures, increasing gold grade in the ore due to variation of loss and dilution indicators, is estimated using the method based on value engineering of ore transportation and blending processes. Its economic effect lies in the economy of operating costs due to decreasing amounts of ore stacking and blending. Handling expenses are based on the estimation of specific owning and operating costs of the equipment at the stage of stacking. They include:  
* fixed operating costs, amortization expenses;
* labor costs of machine operators section (team), calculated using either actual (forecast) production rates or existing tariff rates of respective pay grades, taking into account allowances, perks, bonuses, and other extra payments;
* costs of high-wear parts replacement;
* costs of fuel, lubricants, and hydraulic fluids;
* repair and machine maintenance costs. One transportation costs are calculated using formula [82]:  
\[\text{C}_{tr}=\text{T}^{1}_{tr}+\text{T}^{2}_{tr}+\text{T}^{3}_{tr} \tag{2}\]  
where \(\text{C}^{1}_{tr}\) is the price of ore transportation from the quarry to the stockpile (stage 1), rub/tkm;  
\(\text{T}^{2}_{tr}\) is the price of ore stacking and blending (stage 2), rub/t;  
\(\text{T}^{3}_{tr}\) is the price of ore loading and transportation from the stockpile to GPP hopper (stage 3), rub/tkm. \[\text{T}^{j}_{tr}=\text{T}CO_{ij}/Q_{ij} \tag{3}\]  
where \(TCO_{ij}\) is total cost of owning and operating [82]\(i\)th type of equipment at \(j\)th stage, rub;  
\(Q_{ij}\) is a workspace of \(i\)th equipment at \(j\)th stage, t.  
\[\text{TCO}_{ij}=\text{ }\sum^{J}O_{ij}+\text{ C}_{ij} \tag{4}\]  
where \(O_{ij}\) is owning cost of \(i\)th type of equipment at \(j\)th stage, rub/hr;  
\(Q_{ij}\) is amount of ore transportation by \(i\)th type of equipment at \(j\)th stage, tkm;  
\(C_{ij}\) is total operating cost of \(i\)th type of equipment at \(j\)th stage, rub. The costs are conditionally variable and depend on the volume of ore. Owning and operating costs of a machine vary widely, as they depend on many factors: the nature of the work performed by the machine, the length of ownership, local prices for fuels and lubricants, operator costs, repair and maintenance costs, and transportation costs from the factory, interest rates, etc. Owning cost (O) equals a sum of initial (remaining) value of the equipment (including accessories) (P), interest expenses (O\({}_{e}\)), insurance charges (O\({}_{r}\)) and property tax (O\({}_{k}\)). \[\text{O}=\text{ P}+\text{O}_{e}+\text{O}_{r}+\text{O}_{k} \tag{5}\]Calculations of owning and operating costs are based on the actual terms of ownership and total productive life of the equipment. Total operating cost (C) is a sum of the following cost items: fuel (Cf), tires (Ct (x)), scheduled maintenance (CSM), repair (Crep), high-wear parts (CHWP) and planned payroll budget (CPB):  
\[\text{C}=\text{C}_{\text{f}}+\text{C}_{\text{t (x)}}+\text{C}_{\text{SM}}+\text{ C}_{\text{rep}}+\text{C}_{\text{HWP}}+\text{C}_{PB} \tag{6}\]  
Logistics of quarry-haulage traffic includes:  
* transportation of ore extracted in the quarry to the intermediate stockpile for blending;
* transportation of non-commercial ones and their storage in special low-grade stockpiles;
* transportation of ore to the GPP hopper. Figure 3 depicts a simplified flow chart of ore transportation from the quarry to the intermediate stockpile for blending and to the GPP receiving hopper.