Filate

FILATE special small scale gold mining
Enterprise
Feasibility Study For
Placer Gold Mining Project in
Gabisa kebele Bero Woreda, west omo zone

South West Ethiopia Regional State
Submitted to: South west Ethiopia region mine and energy development
agency
EXECUTIVE SUMMARY
The objective of filate special small scale gold mining Enterprise is to extract the placer
gold in an economically feasible and environmentally friendly way having a great
contribution to the national economy of the country. The project area is located in south
western ethiopia Ethiopia at gabisa kebele, west omo zone, swer State. It is owned by Local
people micro Enterprise for jointly work. It is located about 169km from mizan aman city
and 280 km far from Bonga capital of swers.and 734km from addis ababa.
The expected gold reserve will be around 60 kg. The laboratory test shows that the gold purity
level is around 91% i.e. 21 karat gold. Therefore, taking the price of gold for 21 karat, within 5
years plan the company will be earn gross income near to Birr 31,068,520
The company will produce the gold within four years by using method of open pit mining,
which mining is performed by using different earth moving and washing machineries. With
this process the thick overburden containing the gold bearing layer is excavated and the
excavated gold-bearing materials are processed to recover the gold. The method for the
alluvial gold mining uses gravity as the basic sorting force.
The project is a good contribution considering the huge unemployment rate prevailing in the
country.
In addition, it will increase the gold reserve of the National Bank of Ethiopia, which will
increase the capacity of the country in international marketing operation.
The project is to be financed through own fund (owners’ equity) and bank loan at a rate of
30:70 equity debt ratios during the initial year of investment. The balance of investment or
capital cost requirements of the subsequent year however expected to be financed by the
surplus generated internally from the project.
Table of Contents page
1. BACK GROUND .................................................................................................................. 1
2.0 GEOGRAPHY ..................................................................................................................... 1
2.1 LOCATION ......................................................................................................................... 1
2.2 Accessibility and Infrastructures...................................................................................... 3
2.3 Physiography.................................................................................................................... 4
2.4 Climate and Vegetation.................................................................................................... 4
2.5 Socio Economic Condition .............................................................................................. 5
3. OBJECTIVE.......................................................................................................................... 5
4. Previous Geological Studies .............................................................................................. 5
5. GEOLOGY OF THE PROJECT AREA ............................................................................... 5
6. EXPLORATION AND PLACER DEPOSIT ........................................................................ 7
6.2 Structures and parameters of the Placer deposit.............................................................. 8
6.2.1 over Burden................................................................................................................... 9
6.2.2 Gold Bearing Layer....................................................................................................... 9
6.2.3 Bedrock Geology........................................................................................................ 10
6.2.4 Heavy mineral and Morphology of Gold................................... 11
6.2.5 Fineness of Gold ......................................................................................................... 12
7. RESERVE OF THE DEPOSIT ........................................................................................... 12
8 MINING................................................................................................................................ 14
8.1 Resource Evaluations................................................... 14
8.2 Production Plan........................................................ 15
8.3 Regimen of Work........................................................................................................... 15
8.4 Mining Operation...................................................... 16
8.4.1 Factors to be considered.............................................................................................. 16
8.4.2 Mining Method........................................................................................................... 17
8.4.3 Methodology Used for Mine Designing and Planning. .............................................. 17
8.4.4 Pit and Bench Design.................................................. 18
8.4.5 Placer Mine Face Opening .......................................................................................... 21
8.4.6 Placer Mining Sequence ............................................................................................. 21
8.4.8 Gravel Ore Processing ................................................................................................ 23
9. MARKETING...................................................................................................................... 25
9.1 Supply of Gold ............................................................................................................... 26
9.2 Use (demand) for gold ................................................................................................... 26
9.3 Market Segmentation..................................................................................................... 28
9.4 Pricing ............................................................................................................................ 29
9.5 Sales Strategy and Sales Forecast .................................................................................. 30
10 RESOURCE REQUIREMENTS ......................................................................................30
10.1 Pre-production cost ...................................................................................................... 30
10.2 Building and Civil works ............................................................................................. 30
10.3 Equipment and Machinery ........................................................................................... 31
10.4 Camping Equipment .................................................................................................... 32
10.5 Office Furniture and Equipment’s. .............................................................................. 32
10.6 Rental Services............................................................................................................. 33
10.7 Depreciation and Amortization Schedule per Year..................................................... 33
10.8 Man power ................................................................................................................... 34
10.8.1 Salary, wage and employee benefit. ......................................................................... 34
11. Project management........................................................................................................... 35
11.1 ORGANIZATIONAL STRUCTURE............................................................................. 36
11.2 WORKING CAPITAL/OPERATING COST................................................................. 36
12.0 WATER AND POWER SUPPLY REQUIREMENT..................................................... 38
12.1 Power supply................................................................................................................ 38
12.2 Water supply ................................................................................................................ 38
13.0 SUMMARY OF PROJECT COST.................................................................................. 39
13.2 Project Fund................................................................................................................. 40
13.2.1 Loan Repayment Schedule ....................................................................................... 40
14. PROJECT MILESTONES ................................................................................................. 40
15.0 FINANCIAL EVALUATION OF THE PROJECT.................................................................................... 42
15.1 Basic Assumptions and Conditions............................................................................. 42
15.2 Initial investment costs of the project:-........................................................................ 43
15.2 Projected Financial Statements .................................................................................... 44
16. KEY FINANCIAL INDICATORS.................................................................................... 46
16.1 Discounted Cash Flow (DCF) of the Project ............................................................... 47
16.3 Internal Rate of Return................................................................................................. 48
16.3.1 Return on total assets. ............................................................................................... 48
16.3.2 Return on Equity. ...................................................................................................... 48
17. SOCIO-ECONOMIC
IMPACT________________________________________________________________________.
18. References………………………………………………………………………….......
List of Tables
Table 1: Geographic coordinates of the project area
Table2. Regimen of work
Table 3: Annual production plan
Table 4: the annual production of the deposit
Table 5.Gold price Applicable on: 2021-may-26
Table6: Sales Forecast
Table7. Startup Costs and Expenses
Table2. Building and Civil Work
Table9. Machinery and Equipment Requirement
Table3. Camping, Professional, and Kitchen Equipment Requirement
Table 4 Office Furniture and Equipment’s
Table12. Rental machinery
Table 13 Depreciation and Amortization Schedule
Table14. Man power Requirements
Table 15.Summary of the Plant’s Working Capital
Table 16 Summary of Project Cost
Table17. Initial Investment Costs and Financing
Table 18: Loan Repayment Schedule
Table 19.Time table for the first project year
List of figures
Figure1. Location, accessibility and topographic map of the area
Figure 2. Physiographic map of the area (curtsey to Google map)
Figure 3.gabisa Artisanal mining
Figure4. Exploration Activities by ethino Gold Mining 1979 to 1981 and Sample Location
map of the project area
Figure5. Exposure gravel in kebele change the photo
Figure6. Separated gold grains with weight
Figure 7.Rounded to sub rounded and sub angular gold grains
Figure8. Top view of Block
Figure 9.Cross section of project area to place gold deposit
L55
Figure 10 placer gold in project area cross
section of L72
Figure11. Gold Production Flow Chart
Figure12. Processing scheme for alluvial gold production
Figure13. Organizational chart of the company.
Figure14. Dam Water of in the area
1. Back
Ground
Historical records witness that thousands of years back, Ethiopian merchants were trading
gold, spices, ivory and other commodities in Asian and Arabian markets to buy textile and
other products. Particularly, gold was the main commodity exploited by artesian miners
from many areas. Today it is an established fact that gold mineralization is known to occur
in southern, south western and northern parts of Ethiopia, where the Precambrian basement
rocks are exposed. In some of these regions gold has become the primary, if not the only,
means of subsistence for millions of people engaged in artesian mining. Although the
country is believed to have a mineral potential that can contribute more to the national
economy, so far the mining sector constitutes about 6% only. Nevertheless, decades of
efforts have resulted in the increasing of the foreign currency earnings from the export of
gold, tantalite concentrate, platinum, decorative dimension stones and gemstones.
With this background the proponent filate special small scale gold Mining Enterprise has
acquired placer exploration around shola. The company ongoing the alluvial gold
exploration and discovered minable placer gold deposit around the kebele we compile the
feasibility of techno gold mining area around. This document presents the feasibility study
for mining license application. It covers the geography, geology, and exploration work,
reserve of the deposit, mining method, production program, resources requirements, finance
and economics of the mining project.
2.0 Geography
2.1 Location
The project area is located in shola and around the whole kebele within swers in west omo
zone. It is situated about 550 km south west of Addis Ababa. Akobo is valley is about
160km mizan town and 17km from Jeba Town. The project area covers a total area of
0.5km2. It is bounded by geographic coordinates listed in the table below (Table 1) and also
shown in Figure 1. The coordinates are in UTM ZONE 36N projection and ADINDAN
datum.
PLACER GOLD MINING FEASIBILTY 1

Table 1: Geographic coordinates of the project area
(Coordinates System UTM ZONE 36N and Datum:- Adindan.)
B1 Area
No X Y
Corn-Points
1 740792 701703
2 740915 701648
3 749747 701896
4 740827 702048
5 740882 702109

2.2 Accessibility and Infrastructures
The project area can be reached via the main road that joins Addis Ababa and mizan aman
through jima-bonga mizan-dima, 740km to Jeba 20km Gravel road. Various settlements
and villages are connected by networks of foot trails very useful for geological traversing.
There is also an air strip in tumi near Bero(jeba)town. Banks, health post, and internet
services, direct line telecommunication can be found in, bero jeba to Dima town.
Nowadays all the towns have microwave telephone system including the smaller villages
which are connected with mobile and satellite telephone.
2.3 Physiography
Regionally, the area consists of flat 500m with altitudes ranging from 500 to 600m above
sea level (Fig. 2). The placer occurrence of shola has an average 0.52 km2 and width of
vary. The topography shows a geological control where the prominent ridges are formed
mainly by amphibolites, granites, gneisses, metaultramafics, and sometimes quartzite; while
low grounds are formed by biotite gneisses and quartzo- feldspahatic gneisses and schist’s.
Figure2. Physiographic map of the area (curtsey to Google map)

2.4 Climate and Vegetation
The project area is characterized by relatively wet climate where the rainy season lasts
from April to July. A little precipitation may occur, during the months of August to
October, while the region remains generally dry for the rest of the year. The hottest months
are December and January.
The vegetation cover in the area is dominated by continuous dense and deciduous trees
with thorny shrubs and scattered small trees mostly acacia which covers most part of the
low lands. However, big trees are common along the course of intermittent streams.
2.5 Socio Economic Condition
The project areas are sparsely populated and inhabited by semi nomadic dizigna and agnuak
speaking, peoples. They subsist on their cattle breeding and less commonly farming and
artisanal mining. They grow maize, sorghum and wheat. Afew health centers give service
to the inhabitants. A few elementary schools are found scattered in the study area. Jeba,
gesena ,gabisa and shola are the kebeles where the inhabitants sell and buy their agricultural
products.
3. Objective
Objective of the Enterprise is to mine the placer gold in an economically feasible and
environmentally friendly way with local peoples and contribute to the national economy.
4. Previous Geological
Studies
More many placers of various genetic types and sizes have been identified by artesian
miners and geologists in around bero and dima, including akobo river valleys, creeks and
ravines have been covered by rather unsystematic and low quality prospecting and
exploration. Gold reserves calculations have been Made for 20 largest placer deposits
including dima ,jeba, gesena, gabisa and gabisa.
General Calculations of reserves for gold Placers in the bero and dima were made by Griffith
(1968), John Taylor and SonsCo(1970), Linzel(1972) Shelekhov and others (1982-1985)

5. Geology of the Project
Area
The geology of the area is represented by Precambrian rocks, high grade gneisses
and migmatities and low-grade Meta volcano sedimentary rocks frequently sheared and
intruded by mafic-ultramafic rocks. Quartz veins are widely distributed in the bed rocks.
The most parts of the quartz veins are gold bearing at varying contents of gold.
These auriferous quartz veins are sources of the gold concentrated in the placers. In the
regional geotectonic rocks of the gambela dima Group a thick monocline striking in sub
merdinal direction.
Detailed geological mapping was conducted at the scale of 1:10,000 and the major
lithologic units observed in the area are:
 Biotite Quartz Gneiss

This unit is covers most of the southern part of the area. It is ridge forming rocks in the area
along the valley. It is overlain by basaltic rocks on the top. It is leucocratic and mostly fine
grained, with a subordinate coarse grained variety, having different grain size of the
feldspar such as augen shape or porphyry feldspar. It is often schistose, but also exhibits
large scale compositional layering.
 Quartz of feldpathic Gneiss
It is mapped in central part of bero to a kobo valley. It is leucocratic, coarse grained,
banded, and mainly composed of quartz and alkali feldspars with subordinate amounts of
biotite and sericite. Banding is represented by thin mafic layers of biotite and thick felsic
layers of quartz and alkali feldspars. The general strike of this unit is NNW-SSE and dips at
angles ranging between 50 and 70.
 Quartz Sericite Schist
This rock unit crops out in north-central part of the area. It is pinkish-brown, fine grained,
weathered, kaolinized, ferruginized, and mainly composed of quartz, muscovite, sericite
and minor alkali feldspars. The general strike of this unit is NNW-SSE and dips towards
ENE at angles ranging from 45 to 80.
 Actinolite Tremolite Schist
This rock unit crops out in north-central part of the area .It is light green and medium
to coarse grained and highly schistose.

 Amphibole Plagioclase Schist
This rock unit crops out in north-central part of the area. It is dark grey; medium grained,
and composed of plagioclase and amphibole with subordinate amounts of quartz and
biotitic.
It is thinly banded, represented by alternative layers of amphibole on the one hand and
plagioclase and quartz on the other hand. The general strike of this unit is NNW-SSE
and dips towards ENE at angles rang1ng from 60 to 70.
 Quartz veins
Quartz veins are widely distributed in the bed rocks. The most parts of the quartz veins are
gold bearing at varying contents of gold. These auriferous quartz veins are sources of the
gold concentrated in the placers.

6. Exploration and Alluvial Deposit
6.1 Exploration
The current exploration works conducted and the previous work data enabled to
understand that in whole bero wereda to valley placer gold occurs in minable grade in
terrace and flood plain sediments. The previous study of the GSE has integrated a number
of pitting on shola up to Kobo valley investigations in the central part of our project
area covering 15 km length and av. 400m width. The exploration works performed
comprises pre field previous work data compilation, filed work data collection, data
interpretation, reserve calculation and report writing. Fourth period 1995-2013 AGME is
mining in the remaining lower Bore and area and producing more Or less =than the
previous phase-initially, Artisanal miners were restricted to mine out of areas where
hydraulic mining is commenced, Later artisanal miners were extracting gold from tailings
of hydraulic mining and leftover areas in the same valley
During the current exploration period a total of 24 exploration pits were dug in 14
profiles and 24 pan concentrate samples are collected by AGME. Gold grains separated by
blowing and binocular microscope are weighed for reserve calculation. Now a day there
was actively artisanal mining around the area by local enterprise.
The exploration activities and sample locations are indicated in figure 3
below.
Figure 3.mining site

Figure4. Exploration Activities by Ethino Gold Mining 1979 to 1981 and Sample
Location map of the project area
6.2 Structures and parameters of the Placer deposit
Gold occurs in alluvial, eluvia, supergene, quartz vein and stock work; shear related and
hydrothermal replacement deposits. In the general sense, alluvial refers to alluvial,
colluvium, fluvial and lacustrine deposits but is restricted to the traditional meaning of
stream and lake deposited gold. Alluvial, eluvia and supergene deposits are secondary
deposits formed by reworking of primary deposits.
Economic concentration of placer gold deposit may occur in a wide number of types
located in a variety of geomorphological environments when sufficient quantity of materials
from the source area of some rocks as well as suitable physiography (geomorphology) and
climatic condition are provided.
Alluvial deposits consist of hydro dynamically accumulated gold by streams and lakes.
They occur on the surface, just below the surface or deeply buried. Ancient stream
channels that are deeply buried are called deep leads.
Gold and heavy minerals such as magnetite, illuminate, zircons etc. Have high specific
gravities; therefore, they will be transported within the base of flowing currents where they
will be trapped by irregularities in the channel base or changes in current velocity.

In present day channels, the heavy mineral fraction, including gold, will accumulate in
pools and in cavities, fractures, depressions, behind ridges and boulders present in runs
between pools.
Gold will also occur in buried channel alluvium below the present river bed. Basal channel
deposits will contain the most gold and rest upon the bedrock. Other channel base
deposits can occur between the surface and bedrock where they are marked by beds of
coarse sediments, pebbles and conglomerates. Gold and heavy minerals will be much finer
grained than the light fraction. This is due to their density and size relationships, expressed
as their hydraulic ratio. Consequently, fine gold and small gold nuggets will be found with
coarse sediments, pebbles and conglomerates.
Another area of heavy mineral accumulation is the point bar. A point bar is formed on the
inside of a bend in a meandering stream. Current flow is strongest on the outside of the
bend, decreasing inwards.
As a result, heavy minerals will drop out of suspension on the inside of the bend, or point
bar, where current flow is least. As the stream migrates laterally, increasingly finer
grained material is deposited until the channel is finally covered by fine grained alluvium.
Stream channels that migrate laterally form widespread alluvial deposits that may contain
gold in the abandoned channel base or point bar.
The major placer characteristics and parameters are described below in
details.
6.2.1 over Burden
The Over burden are found on tops of both gentle and steep slopes of shola to Akobo
valley as thick covers of the soil or the relatively older loose sediments. These comprised
of slope- wash and creep sediments of soil debris and talus formations. The slope-wash
deposits are represented by layers of humus soil, dark-brownish clay, reddish brown sandy-
clay and light colored clayey-sand in descending order; it has an average thickness of Av 8
up to 10m.

6.2.2 Gold Bearing Layer
The alluvial sediments of bero jeba to akobo valley are forming terraces. These are
thought to be channel-fill and flood plain sediments. They comprised of boulders, cobbles,
pebbles and gravels with minor amount of sands and clays. Quartz boulders, cobbles,
pebbles and gravels are more frequent and predominant than other rocks in channel. The
flood plain consists of layers of clay, sand and gravel going down the section. The sediment
is partly supplied from upper level terraces. The sands are composed by pebbles, gravel
sand and small amount of clay material. In some cases, they rich diameters up to 2-5cm,
but as a sale they gravitate towards the border of the basin (Fig. 5). The sands are well
washable with good stripping ratio. It has an average thickness of 0.5 up 1.5m.

Figure5. Exposure congealment in around jeba
Table2. Parameters of the placer

No. Parameters UOM Reserve Kg and Reserve
1 Average thickness of overburden M 8.57

2 Average thickness of wash gravel M 0.8
3 Gold content g/m3 0.75
4 Gold reserve Kg 60.00
The alluvial comprises slightly clayey sand and sandy looms with about 60%
Gold particle size
percentage
<05mm
74
0.5-2.0mm
20
2.0-4.0mm
6

6.2.3 Bedrock Geology
From shola up to Jeba has incised into Amphibolite, Mica schist and Biotite gneiss in its
upper reaches and into either fresh or weathered basement units in its middle and lower
courses. The basement is represented by quartzo feldspathic gneiss, Biotite quartz
Gneiss, quartz sericite schist, actinolite tremolite schist, Amphibole plagioclase schist.
The basement rocks strike northerly and dip at moderate to steep angles towards the north-
east. The top parts of the bed rocks are highly weathered and friable which will be
included to the wash part.

6.2.4 Heavy mineral and Morphology of Gold
Based on the mineralogical analysis (Fig. 8), the major heavy minerals found in placers of
the project area are pyrite, tourmaline, limonite, Zircon, epidote, garnet, magnetite,
spinel, anatase, martite, rutile, ilmenite and native gold. From this pyrite, magnetite,
limonite, ilmenite, martite, tourmaline and native gold are more abundant while the others
are in trace amount.
Figure 6. Separated gold grains with weight

According to the above figures, most of the gold grains are fine grained, although medium
to very coarse-grained gold particles are not uncommon. On the other hand, very fine-
grained gold is not encountered. This might be due to loss of the very fine-grains during
panning. During the current exploration activity similar grain size distribution results are
obtained. Generally, gold grains are rounded to sub-rounded and crystalline. The
crystallinity is expressed mostly by octahedral crystal forms. Some of the gold grains
have pitted surfaces. These cavities are filled with iron hydroxides, carbonates and quartz.

Figure 7.Rounded to sub rounded and sub angular gold grains from Bero
6.2.5 Fineness of Gold
According to the report of the Geological survey (Teferi and Zhbanov, 1991) gold grain
samples were analyzed by catebax-cameca microprobe to determine the fineness and
contents of Ag, Hg, Cu, Sb and other elements.
The analysis has shown fineness of minimum 820 and maximum of 995 parts per thousand.
The average value for this will be 907.5 parts per thousand which is more or less
equivalent to 22 karats.
To check the above fineness, we submitted one sample from the lower course of the
valley (L-78) to GSE laboratory and analysis by XRF EDX2800 method. The result is
21.84 Karat
In general, the gold grains are characterized by high fineness, high Au/Ag ratio and low
contents of silver and mercury. The absence of the other elements rather than silver and
mercury suggests that, the placer deposit occurs in the form of Au-Ag-Hg alloy only.

7. Reserve of the Deposit
The method used for calculating reserve, volumes and grades of the deposit is the block
and average method. The gold-bearing gravel horizons are outlined using 0.75g/m3content
as a lower class limit
Delineation of blocks is to outline the reserve boundaries depend on ethno gold mining
Exploration and determine the payable zone. For this the following information’s are
considered: -
 Blocking out plans prepared at a scale of 1:5,000.
 Cross-sections including the bed rock
 Bed rock /exposure/ maps
 Catalogues of average data including tentative cut-off grades (0.34gm/m3, by

considering current cost of metal, stripping ratio, cost of overburden, average gold price,
fineness and recovery) that separate payable zone from non- payable one.
 Erratic value of gold contents are reduced to average values
 10% reduction is considered for artisanal mining infection
 Valley geometry
 Data density and consistency of grades along and across the valley
 The external boundary is drown midway between pits with reserve class and pits gold
contents under minable reserve.
 The reserve calculation of the block method is done using the information provided in
deposit parameters.
 These are Area of block is measured by MapInfo and GIS method from the blocking out
plans
 The average wash thickness of the block is taken as the arithmetic mean of each pit
 volume of each block is found by multiplying area and average wash thickness of all pits
 The total gold content of block is obtained by multiplying the block volume and average
grade (gm/m3) that is the arithmetic mean of gold content in each pit
 The total value of many blocks is the sum of values of each block
 The average grade of the target area is the total value divided the total volume of many
blocks.
 The gold reserves for each block are calculated using the following formula:
The volume of gold bearing alluvium in the block is calculated using the following formula:

 The surface area of the block is determined from the plan map using MapInfo and
ARC GIS. The arithmetic mean of the thickness of the gold bearing gravel layer at
various opening within the block is taken to be the average thickness.
 The sum of gold reserves in each block is taken to be the total gold reserve estimate
of the valley under consideration.
Accordingly, based on the outlined criteria’s mentioned above the minable placer deposit in
Shola. The details for each block are indicated below.
Mineral resources are divided in order of increasing geological confidence into Inferred,
Indicated and measured mineral resources (AGME, 1979-1981).
The data spacing is closely enough to confirm grade continuity. That makes the reserves with
acceptable degree of reliability. Accordingly, the placer deposit in the above mentioned
blocks is classified in the measured category seen as commercial, whose extraction is
economically viable.
In general, the shola in Bero placer Gold valley has a reserve of 789.8 kg mining and
440.72kg AGME started to mine and stopping area high quality placer gold in different block
now day we combine all the data in one block. The total minable and detail exploration area is
18.365 km2 from this 2.667km2 for mining and for detail exploration 15.698km2. Adola gold
enterprise already started to mine on the block one around 1.5km2 area.
In general, the shola placer Gold valley has a reserve of 55.6 kg mining with high quality
(22k) placer gold in the block.
 The Area proposed/planned to mine at shola Placer Gold Mining is about 2.667km2
Table 2 techno mining special small scale Mining area Gold reserve depend on the perimeters
Area(m2) 2,667,000.00 Total Overburden volume(m3) 21,336,000.00
Overburden
Thickness(m) 8 Total wash volume(m3) 2,133,600.00
Mineable Thickness
gravel(m) 0.8 Total Gold Contained 1,600,200.00
Cutting Grade(g/t) 0.75 Artisanal and Others10%(gm) 160,020.00
Net Gold Contained
(gm) 60.00kg

8. Mining
8.1 Resource Evaluations
Shola placer gold deposit is calculated the area in one block. In each block the weighted
average grade was calculated from gold bearing (washable) gravels and used as a
Tonnage factor to calculate the total amount of metal contained in blocks. Consequently, the
following parameters are defined in the geological investigation.
 Average overburden thickness = 8m
 Average mineable gravel thickness= 0.80 m
 Area of the deposit = 2,667,000.00sqm
 Total overburden volume is 21,336,000.00 m3
 Total wash volume is 2,133,600.00 m3 but due to artisanal mining factor we estimate
av. Gravel gold content 1,920,240.00 m3
 Average grade (tonnage factor) = 0.75 g/m3
 Gold Recovery rate= 95%

 Gold contained in the deposit 60.00 kg
 Stripping ratio =9
Also the recovery for placer gold due to mining, material handling, processing and artisanal
mining effect is assumed as 10% and considered in reserve calculation.
8.2 Production Plan
Techno mining special small scale gold mining enterprise project has planned to carry out small
scale placer gold mining operation within the life span of five years’ time frame. The total ore to
be exploited is 720,790.00 m3to gold recovery rate 95% recover 60.00 kg gold considering
respective losses indicated in the previous deposit estimation. For Large Scale and 5 years’ life
of the estimated deposit the annual average gold recovery shall be 12.00kg per year.
In case of the operation efficiency (washing machine capacity of 100m3/hour), it is assumed

that `the production will commence at 80% capacity utilization rate in the first year,80% in
the second year, 100% in the third year and 80% in four year gold recovery rate. The detailed
is given in the following table.

8.3 Regimen of Work
The techno special small scale gold mining project operation will be performed under the
following regimen of work.
Table3. Regimen of work
No Activity Description Qty
1 Number of working days per year 300
2 Number of working hours per day 8
3 Number of working hours per shift 8
4 Number of working shifts per day 1
Table 4: Annual production plan
Gold Recovery
NO. Machines
cont. average
Volume(m3)
Annual Wash
Production
Production
Daily wash
Daily wash
Days/Year
Machine s
efficiency
Capacity
Working
Washing
Annual
rate%
Year
(gm)
(m3)
1 100 2 80% 1280 300 384,000.00 0.75 0.95 12000.00
2 100 2 80% 1280 300 384,000.00 0.75 0.95 12000.00

3 100 2 100% 1600 300 480,000.00 0.75 0.95 12000.00
4 100 2 90% 1440 300 432,000.00 0.75 0.95 12000.00
5 100 2 70% 1120 300 336,000.00 0.75 0.95 12000.00
Total gold recovery 60.00
Table 5: the annual production of the
deposit
Production Year Gold (Kg) Remark
1st 1200
2nd 1200
3rd 1200
4th 1200
5th 1200
Sum 60.00

8.4 Mining Operation
8.4.1 Factors to be considered
Design Factors
In order to design any mineral resources, visualization, understand deposit location, and
other of deposit characteristics are required. In case of the present gabisa to akobo
placer deposit, the depths of overburden as well as gravel ore considered. Also it is
stated in the geological findings that the deposit is lose gravel covered with 10m
alluvial overburden. The gravel ore is consisting of pebbles of well-rounded quartz and
other fragmented rocks pebbles of about 3.5 cm average diameters.
Natural Factors
The natural factors, like; topography, resource position, in 3D etc are obvious influences
to which the design is made to adopt.
 Topographic survey output is used as a base for design.
 Cross section of exploration interpretations are taken in to account for designing.
Cut- off grade
Cut - off grade is used to distinguish between the more payable and less payable
s e c t i o n s of ore bodies. That is calculated as follows considering the average stripping
ratio (waste: ore)
From gesena to kobo is 10: 1 and depending on ethino mining enterprise and today market
cut of grade 0.34g/

8.4.2 Mining
Method
Based on the aforementioned methodology set for gabisa to akobo gold deposit and basic
factors, the specific condition of the deposit has been analyzed.
Accordingly, the formation of this placer gold that covered by 10m unconsolidated alluvial
soil over burden. The placer gold deposit is 1m thick in average and covered by 10m thick
overburden below the surface which makes the stripping ratio almost 10. The total depth of
excavation is 10.8 meters. However, the mining methods will compensate cut and fills
which will be described in the methods description.
Hence, the nature of the deposit favors an open pit (surface) mining commonly known
as placer gravel ore mining technique.
Accordingly, bero placer gold mining will involve the following activities:
 Clearing the site from grass and trees
 Construction of access road and drainage ditches.
 Construction and developing waste dump yard.
 Clearing and removal of overburden (Stripping) and dumping or stockpiling for later use
for correction.
 Excavation, pilling, loading and hauling of gravel ore to processing plant;
 Plan and forecast reclamation of land damaged by mining.
 Indicate and put sketch map of the pit.
8.4.3 Methodology Used for Mine Designing and Planning.

Methodologies to be implemented for designing and planning shola to akobo gold are:
1) Evaluations of infrastructural setup understand and organize geological
data, assortment relevant information and understand.
2) Familiarize with the physical condition of the terrain which should be
undertaken through site visiting by mining engineer who shall participates
in designing, planning and organize to exploit shola to kobo placer gold.
3) Reviewing and understand placer gold production plan and capacity by the
envisaged placer gold mining project.
4) Plan and set production schedule and ROM for shola to kobo placer gold mining.

5) Identification of appropriate mine site plan, selection and opening for placer gold
mining. Also identify and locate placer gold processing plant site, office site,
camp site, work shop, access road, waste dump site, etc.
6) Base topographic map identification selection of pertinent mining methods for gesena
placer gold deposit.
7) Application of appropriate mine site designing and set relevant mining system for
gesena placer gold based on geological data and other factors.
8) Set production schedule and determination of respective deposit life span based on
the annual production output, and also set production schedule.
9) Identification of relevant resources machinery, material and work force for
respective activities.

8.4.4 Pit and Bench Design
The key factors involved in designing bench height, slope angle and working berm are:
 Geological and hydro geological condition of the deposit
 Physical and mechanical property of the gravel ore
 Type of machinery to be used like, excavator, loader, dozer etc.)
 Required volume of production output.
For siyali kebele to kobo placer deposit the following considerations of deposit
conditions has been taken in to account for pit design.
 The first one is surface situation of the area which is devoid of trees but with
small dispersed shrubs.
 The second consideration is overburden, which is 10m and characterized as loss
top soil.
 The third consideration is gravel thickness which 1m covered by overburden.
 The fourth consideration is bed rock situation which is weathered diorite, soft
rock and well separated from gravel ore deposit.
 Hydro geological condition is another consideration where the deposit is
partially waterlogged and partially dry favorable for extraction.

Therefore, considering the above mentioned deposit conditions, the following bench design is
recommended. gabisa to akobo river placer deposit will be mined by surface mining of
laterally advancing vertically descending way. The first activity will be clearing the site
from trees and grass and removing the overburden of 10m till the exposure of the ore. The
second bench is extracting gravel or which will be undertaken throughout the bench height
of 1m using excavator in combination of dozer.
Working and ultimate slope angle of the bench wall is depending on the following factors.
These are geological formation, physico-mechanical property of the gravel ore and
compact ability.
Based on these factors the recommendable and appropriate bench slope angle for Ula Ulo
to kobo placer gold mine shall be 80 degrees.
Therefore, the appropriate bench height that manages and enables to achieve the required
gravel ore for placer gold production shall be 1m. Equipment particularly excavator,
loader and dozer are the main machinery that will take part in earth moving works.
Figure 8. Top view of Block

8.4.5 Placer Mine Face Opening
From shola to jeba placer gold contained ore mine face shall be opened by excavator in
combination with bulldozer. The location where the mines face start is from downstream
against the flow of the river to secure draining of the water from the waterlogged blocks. In
this case mining will start from the end of block four and advances upstream up to block
one.
8.4.6 Placer Mining Sequence
The mining method to exploit gabisa to jeba placer gold contained ore deposit is carried
out by surface mining that undertake in two basic and main sequences.
Preparatory Works
This operation is consisting of access road construction that links the mine site with the
processing plant, mine site with pump station, between camp site and processing plant,
clearing works for camp site, fuel station, generator station, clearing the mine site from
trees and vegetation etc. The auxiliary work is done by heavy duty earth moving machinery
in this case bulldozer.
Main Mining Works
 stripping the overburden and stacking at selected site using bulldozer is the
first activity to be carried out.
 Extracting gravel ore by excavator and pilling
 Loading and hauling gravel ore to the placer gold processing plant.
 Backfilling and leveling the overburden to the excavation
Pilling of detached ore will be done by bulldozer and excavator or loader in combination.
Loading work is done by excavators and loader on dump trucks for hauling to the
processing plant located at mine site.
Volume of Earth Moving
The volume of earthmoving includes removal of the overburden, piling of the detached
ore are the major activities to be carried out. The auxiliary work includes access road
construction and clearing works for, camp site, fuel station, etc. and other unexpected earth
moving works which encompasses 3% of the total volume.
Therefore, the major activities lie on the extraction of gravel ore and overburden removal.
Also auxiliary works like internal access road construction, clearing mine site, fuel
station and office site will be included.
These main and auxiliary placer gold contained ore mining jobs will be done by
bulldozer. Loading on the mine site body dump trucks will be done by excavator.

Overburden in total 4,267,200.00 m3.
Then, the total earth moving will be calculated according to the following equation.
Vt= vob+vgo+vaw
Where as
Vt- is total volume m3
Vob- volume of over burden m3= 4,267,200.00 m3
Vgo-volume of gravel ore m3=426,720.00 m3
Vaw-volume of auxiliary works m3
The total wash volume is 2,133,600.00 m3

Vaw = (vob+vgo)*3%
= ( 4,693,920.00 m3)*0.03 = 140,817.60 m3

Therefore,
Vt= 4,693,920.00 m3+426,720.00 0m3+ 140,817.60 m3
Vt= 5,261,457.60 m3
8.4.7 Mining Equipment
The equipment and machinery required for preparatory work and actual mining activity
to exploit placer gravel ore to guarantee of production plan and remove and process
gold the following machineries are required.
 Bulldozer  washing plant

 Excavator
 Generator
 Load
 Diese
 Dump trucks
Also the number of each machinery and equipment in accordance with the volume of work
is estimated as follows.
Bulldozer: For clearing, earth moving, pilling etc. 110m3 per hour working capacity of earth
Moving dozer is suggested. If one dozer working for 8 hours per day, 300 working days
per year it can handle 264,000m3. However, two dozers are to take part to meet the
volume of earth moving which equal 528,000m3.

Excavator: Excavator is another earth moving machine which specifically involved in
gravel ore extraction and pilling. The excavator suggested for this job is 55m3 hourly
capacities. Considering 8 working hours per day and 300 days per year one excavator can
handle 132,000m3 per year. If two excavators are implemented, then the volume of earth
moving will be 262,000 m3.

Loader: One front end loader is to be implemented to feed the washing plant, pile gravel,
and load dump trucks if required.
Dump Truck: Dump trucks for haulage of gravel ore to the washing plant when required
and removing top soil to stock yard and also to back fill washed gravel to the excavated area
two dump trucks are necessary. Dump trucks for hauling gravel ore to the central washing
plant which will be about 200m to 300m distance and to remove top soil to the stock pile
two dump trucks are necessary.
8.4.8 Gravel Ore Processing
The gravel ore processing will be carried out by a complete mobile washing plant. Gravel
ore is directly feed to a grizzly hopper where over size materials are screened and rejected
and undersize pass to further process to scrubber and trammel. The process will be
continuing in plant for further disintegration and recovery of gold.
According to the analysis done during geological investigations gabisa to kobo placer ore is
free of sticky clay which affects wash ability. Also gold grain size contains fine to coarse
which should be considered during washing plant selection.
The alluvial gold deposit will be recovered by wet gravity concentration method.
This method requires water for breaking down and transporting material.
In this process the first step is feeding the ore to the hopper by a loader. The feed hopper is
provided with grizzly for classification by pressurized water.
Disintegration starts at this level and the feed materials are converted to slurry form. This
section is also where the oversize materials, above 50mm (+50mm) diameter are rejected
and the under size, less than 50mm will be fed to the washing plant.
The second unit is the washing plant where above 20mm size materials (+20mm) are
rejected and below 20mm (–20mm) with slurry fed to the sluice box.
The third unit is the sluice box receiving the undersize (-20mm). The sluice box is covered
by rubber template and metal riffles to control the flow and facilitate the settlement of gold.
The last step is the re-concentration of the concentrate. A rocker will be used to re-
concentrate and realize an effective separation of slime minerals and other impurities from
gold. At the rocker level materials above 10mm are rejected and receive less than 10mm
sizes (-10mm). Finally, the materials below -10mm and gold in the concentrate will be
separated and treated by wooden pan (batea).

The processing scheme for alluvial gold production, in short, consists of feed hopper with
grizzly, washing plant, sluice box and rocker of appropriate size. The gold production flow
chart is shown in the following diagram (Fig.
Residue or tailings after wash will be disposed and areas will be rehabilitated as per
the Environmental and Social Impact Assessment (ESIA) program.
Figure11. Gold Production Flow Chart

Feed Hopper with Grizzly: Accordingly, a washing plant that consisting of feed hopper with
grizzly for separation of oversize boulders. The feed hopper and grizzly unit are equipped with
hydro monitor spraying pressurized water to start disintegration of gravel.
Trommel Scrubber Unit: Ore contained pulp flow to trammel scrubber unit where
further disintegration takes place by sprays of water within the trammel scrubber barrel. The
rejected over size materials like gravel pebbles will be conveyed to discharged by conveyor belt.
Concentrating Jig: Following trammel scrubber process semi concentrate ore pass to
jig concentration unit. Jig unit concentrate further for recovery of fine grains.
Roughing /Shaking Table: After concentration process at jig unit the pulp ore passes to
shaking table where micro fines will further have concentrated and recovered.
Dewatering Screen for Water Recirculation: This unit is consisting of dewatering screening
unit for water recirculation process. This unit refines water and recirculate in the processing
plant. This will help to use water economically and reduce cost water supply.
Final Gold Separation Room with Finishing Jigs and Shable Tables: This unit is where
final gold is recovered using jig and shaking table. This unit is also consisting of gold smelting
room. Generator and Pump: Generator for power supply and pump to supply water to the
washing plant are included in the processing plant.
Pump and Pipes: Water is supplied from water damp Ula Ulo in the license area. The
terrain from Ula Ulo mine site is plain with over all head of about insignificant height.
Filate mining sssg mining feasibility 31

Figure12. Processing scheme for alluvial gold production
9. Marketing
9.1 Supply of Gold
Gold mine production increased significantly over the 1980s and 1990s from less than 1’300 t
in
1980 to over 2’500 t by 1998. The increase has been fuelled by incremented production from
the majority of gold producing nations, offsetting decreasing production from South Africa.
From an industry perspective, gold is predominantly driven by global jewelry demand. The 2006
consumption was 3’400 t, 1’100 t more than the mine supply. The difference was made up of
scrap supply (1’100 t) and official sector sales (300 t), offset by producer de-hedging (400 t).
Gold touched an all-time high of $1496/oz in April 2011. Today, China is the world's
largest gold producer followed by Australia, USA and South Africa and Russia.
The total volume of gold ever mined in history is estimated at some 155,000 t which compares
to an annual production of approx. 2500 tons. The average grade of the mined one is also
declining globally. The higher average mines have been depleted and the market has been forced
to turn to mines that deliver a lower grade of one, which means that the gold exploration
expenditure have risen sharply in recent years and today the gold market rise up in on
international market.

9.2 Use (demand) for gold
Demand for gold increases through time. The fundamental reasons for the increase of
demand for gold include:
 It is used to make jewelry.
 It is used to enhance risk management and capital preservation for institutional
and private investors across the globe.
 It is used as reserve asset in central banks.
 It is used for technical application.

Jewelry has always been a key area of demand for gold with India and China being the two
largest markets for gold jeweler. Part of the large appetite for jeweler in these countries is
driven by the cultural role gold plays; it is considered auspicious to buy gold at key festivals
and events. In both India and China, gold jeweler is a desirable possession as well as an
investment to be passed down through generations.
This demand currently shows no signs of abating, driven by growing wealth and demographic
shifts: by 2020 India and China combined will have one billion new urban consumers. These
inspirational populations in Asia are also experiencing a rise in disposable income, which is
driving gold demand.

These diverse uses for gold, in jewelry and technology and by central banks and investors,
mean that across the decade’s different sectors in the gold market have risen in prominence at
different points in the global economic cycle. This self-balancing nature of the gold market
means that, typically, there is a sustained base level of demand.
Investment: Gold has unique qualities that enhance risk management and capital
preservation for institutional and private investors across the globe. Research1 has shown that
even a modest allocation to gold makes a valuable contribution to the performance of a portfolio
by protecting against downside risk without reducing long term returns.
These qualities are considered to be particularly important during periods of financial stress.
However, gold's effectiveness in stabilizing returns and protecting capital is just as relevant
regardless of economic environment.
Today, investment in gold accounts for over one third of global demand. This demand is
made up of direct ownership of bars and coins, or indirect ownership via exchange-traded
funds (ETFs) and similar products.
Central Banks: Central banks’ behavior with respect to gold has fundamentally shifted over
the
Pastfew years.
This reflects a combination of slowing sales from European central banks and large purchases
from emerging market countries in Latin America, the Middle East and Asia. Since 2010,
central banks have been net buyers of gold, and their demand has expanded rapidly, growing
from less than two per cent of total world demand in 2010 to over nine per cent in 2012.
This change in behavior is a clear acknowledgement of the benefits that gold can bring to a
reserve portfolio. Some banks have bought gold to diversify their portfolios, especially from
US$-denominated assets, with which gold has a strong negative correlation. Others have bought
gold as a hedge against tail risks or because of its inflation-hedging characteristics (gold has a
long history of maintaining its purchasing power).
Gold plays a prominent role in reserve asset management, as it is one of the few assets that is
universally permitted by the investment guidelines of the world’s central banks. This is in part
due to the gold market being deep and liquid, which is a key characteristic required by reserve
asset managers.

Technology: Around seven per cent of the world demand for gold is for technical
applications. The electronics industry accounts for the majority of this, where gold’s
conductivity and resistance to corrosion make it the material of choice for manufacturers of
high-specification components.
In addition, the metal’s excellent biocompatibility means that it continues to be used in dentistry.
Beyond electronics and dentistry, gold is used across a variety of high-technology industries, in
complex and difficult environments, including the space industry and in fuel cells. Gold’s
catalytic properties are also beginning to create demand both within the automotive sector, as the
metal has now been proven to be a commercially viable alternative to other materials in catalytic
converters, and within the chemical industry.
A range of healthcare and catalytic applications for gold is currently being developed as the
field of nanotechnology expands. While this demand is still small in tonnage terms, the growing
number of patents being published relating to gold nanotechnology suggests many new
applications will be developed in the coming years.
9.3 Market Segmentation
As discussed earlier one of the main reasons for the increase in demand of the gold was its
usage
By countries central banks’as a reserve.
The central banks behavior with respect to gold has fundamentally shifted over the past
few years. Since 2010, central banks have been net buyers of gold, and their demand has
expanded rapidly, growing from less than two per cent of total world demand in 2010 to over
nine per cent in 2012.
Gold plays a prominent role in reserve asset management, as it is one of the few assets that is
universally permitted by the investment guidelines of the world’s central banks. This is in part
due to the gold market being deep and liquid, which is a key characteristic required by reserve
asset managers.therefore, to keep the sustainable development of the country, the National Bank
of Ethiopia similar to the other countries central banks developed keen interest to purchase gold
to build its reserve portfolio. In relation to that, the government encourages investors to involve
in gold mining in the country. As a result, the target market to sell the gold is well known
i.e. the National Bank of Ethiopia. There is no marketing problem because all products will

be sold to the Bank.

9.4
Pricing
According to the ministry of mines (mom), Ethiopia has earned 800 million us dollars from export
of minerals during the past 4 months of the budget year, 2016 e.c. plagued by a fall in the global
price of gold, the revenue obtained is just about half of the ministry’s projection for the period.
The lion’s share of the revenue is obtained from export of gold extracted by both traditional
miners and companies. Of the over 1200 kg of gold supplied to the international market, over
came from traditional miners, according to data from Mom. Export of minerals has become
Ethiopia’s second biggest foreign currency earner contributing to over 23 percent of the
overall export earnings of the country.
However, global price fluctuations have put a dent on the flow of foreign currency to
the country. The price of gold, the major export mineral of Ethiopia, dropped nearly 30
percent at the end of 2013. With its revised export revenue target, the ministry expects to fetch
one billion dollars from mineral exports by the end of the current fiscal year.
To counter the impact of a fall in global price, the report says, the ministry would work to ensure
an increase in supply of gold by artisanal miners and export value added minerals.
Table 6: Sales Forecast
Applicable as of January 28, 2022
Gold Unit Gold Rate in Ethiopian Birr
Gram 24K 3,881.9 ETB
Gram 9K 2,080.7 ETB
Gram 8K 960.6 ETB

Year 1 2 3 4 5 Total
Gold In Kg 273.6 273.6 342 307.8 239.4 55
Price/gm as of January 28/2022
2641.8 2641.8 2641.8 2641.8 2641.8 4850
(22karat) in ETB
Sale Price In Million 722.79648 722.7964 903.49 813.146 632.44692 26675000
Birr(*1,000,000)
8 6 0
Table7. Gold price Applicable on: 2024-april-26

9.5 Sales Strategy and Sales Forecast
The whole product will be sold to the National Bank of Ethiopia. The expected minable gold
reserve will be around 1436.4 kg. The laboratory test shows that the gold purity level was
around
22 Karat. Therefore, taking the price of gold for 22 Karat 266750000.00Birr
10. Resource Requirements
The resource requirements for the project includes: machinery and equipment, manpower,
land compensation, building and civil works; office equipment, utilities and others are
presented in details in the following sections.
10.1. Pre-production cost
Table8. Pre-production Costs and Expenses
S.№ Item Birr Remark
1 Establishment, Registration, Licensing, and Legal Fees 100,000.00
2 Prefeasibility and Feasibility Studies Fee 100,000.00
3 Property Right Compensation 5,000,000.00
5 Other cost 880,000.00
Total pre-production Expense 6080000

10.3 Equipment and Machinery
The equipment’s and machineries considered in this report are those to be used for the
placer gold Mining Plant and processing operations. The estimated costs of these
equipments and machineries are based on their current local price in local currency as
shown below in table Office equipment and furniture are required for supporting staff at
the branch offices. The furniture and equipment required for the project are those such as
office tables, filing cabinet, shelves, chairs, computers, printers and duplication machines,
calculators and etc.
Table10. Machinery and equipment requirement
No Equipment Description Qty Unit Price Total Price Supplier
1 Bulldozer (D8R) 1 24,000,000 4,000,000.00
2 Excavator (CAT) 1 13,000,000 3,000,000.00
3 Dump Trucks -20 tons 2 3,000,000 1,000,000.00
4 Camping equipment 585,000
5 Other equipment (Hand tools) Set - 100,000
6 Water tanker 5000 Liter 1 30,000 30,000.00
7 Water pump (300hp) 2 600,000 1,200,000
Total Machinery and equipment cost 9,915,000

10.4 Camping Equipment
The camping and kitchen equipment required at the campsite is shown on the following table.
Table11. Camping, Professional, and Kitchen Equipment Requirement
Unit Total
S/n Item Quantity Price (birr) Price (birr)
1 Cooking oven 1 30,000 30,000
2 Dishes and cookware set 1 75,000 75,000
3 Refrigerator 2 20,000 40,000
4 Kitchen cabinet set 1 50,000 50,000
5 Washing machine 2 10,000 20,000
6 Dining table 2 5,000 10,000
7 Chairs 30 1,000 30,000
8 Beds 50 2,000 100,000
9 Bed set (blanket, linen and pillow 50 3,000 150,000
10 Generator for camp /50kw 1 100,000 100,000
Sub total 605,000.00
10.6 Total Fixed Capital

Table13. Summary of fixed capital cost
S/ Investment Cost
Description
no In birr
1 Machinery and equipment requirement 0
2 Camping, professional, and kitchen equipment requirement 605,000.00
3 Office furniture and equipment’s 605000
Total capital cost 9,915,000
Working capital 2,628,858
Total fixed cost 12543858
10.7 Man power
The allocation of manpower requirement for the project under consideration is based on the type
and quantity of equipment’s and machineries to be deployed for the quarrying, loading, hauling
and for other supporting staffs. Accordingly, the total manpower requirement of this project is
estimated at 44 (24 permanent & 20 daily laborers) .the details are as shown below in table below.
10.7.1 Salary, wage and employee benefit.
This includes salary and wages as well as benefits of permanent employee, contractual workers and
daily laborers.

Monthly Total Total annual
Salary Monthly Salary
No. Title Quantity In birr Salary birr (In birr)
Indirect labor
1 General Manager 1 25,000.00 25,000.00 300,000.00
2 Fiancé and administration 1 15,000.00 15,000.00 180,000.00
manager
3 Secretary 1 6,000.00 6,000.00 72,000.00
4 Accountant 1 10,000.00 10,000.00 120,000.00
5 Cashier 1 8,000.00 8,000.00 96,000.00
6 Store keeper 1 10,000.00 10,000.00 120,000.00
7 Security/ guards 4 2000.00 2000.00 24,000.00
8 Light vehicles diver 2 4000.00 8000.00 96,000.00
9 Heavy truck drivers 2 7,000.00 14,000.00 168,000.00
10 Cooker 2 5,000.00 10,000.00 120,000.00
Sub total 16 108,000.00 34000
B) Direct labor
1 Mining engineer 1 20,000.00 20,000.00 240,000.00
2 Site geologist 1 20,000.00 20,000.00 240,000.00
3 Mining Forman 1 14,000.00 14,000.00 168,000.00
5 Excavator and loader 2 9,000.00 18,000.00 216000.00
operator
6 Generator operator 1 7000.00 7000.00 84,000.00
7 General mechanic 1 15,000.00 15,000.00 180,000.00
8 Welder and electrician 1 10,000.00 10,000.00 120,000.00
9 Daily labor 20 6000 6000 72,000.00
Sub total 28 110,000.00 6000.00
Employee benefits 25% 54,500.00 654,000.00
Total cost 272,500 3,270,000.00
Table14. Man power requirements
11. Project management
The projects management will consist of individuals who have extensive experience in the mining
industry. Our company philosophy is based on mutual respect for all contributions made by our
participating or limited partners, investors, consultants, and employees without regard to the
position held in the company.
We will also work toward establishing community involvement program that will demonstrate how
our business can contribute to a better quality of community life.
The organizational chart of the company is presented in figure 13.below.

11.1 Organizational structure
11.2. Fuel, Oil and Lubricant
Fuel consumption is computed considering the consumption per hour by each machinery and
time of working and calculated as follows. Lubricant is taken as 15% of fuel cost.
Table15. Fuel and lubricant
Consumptio Working Annual
Machine Price Total Price
No Qty n hours consumption
Description Birr/lit (Birr)
(lit/hour Per year (liter)
1 Excavator cat 1 12 2400 28,800.00 40 1,152,000.00
Loader
2 950h/962H 1 13 2400 31,200.00 40 1,248,000.00
3 Bulldozer d8r 1 16 2400 38,400.00 40 1,536,000.00
Dump trucks,
4 20ton 2 6 2400 28,800.00 40 1,152,000.00
Dump
5 trucks,40 ton 1 8 2400 19,200.00 40 768,000.00
6 Water pump 2 3 2400 14,400.00 40 576,000.00
7 Service bus 1 2 2400 4,800.00 40 192,000.00
Land Cruiser
8 double Cabin 1 2.5 2400 6,000.00 40 240,000.00
9 Generator 1 2 2400 4,800.00 40 192,000.00
10 Pickup 2 2 2400 9,600.00 40 384,000.00
TOTAL 7,440,000
Lubricant 15% of fuel 1,116,000
GRAND TOTAL 8,556,000
Figure13. Organizational chart of the company

11.3. Maintenance and Repair Expense
Machinery, building and office equipment maintenance and repair expense is estimated at
0.5% of estimated cost machinery, building and office equipment and furniture per annum
and the result is presented in following Table.
Table 16. Annual Repair and maintenance Expense (Birr)
Estimated cost
No Description
(Birr) 3%, Annual repair and maintenance
1 Building and civil work 4,700,000 141,000.00
2 Machinery and equipment requirement 4700000 4,071,472.5
Camping, professional, and kitchen
3
equipment requirement 605,000.00 18,150.00
4 Office furniture and equipment’s 210,900 6,327.00
Total 210900 4236949.5
11.4. Insurance Expense

Insurance expense is necessary to avoid risks in operation of the mining activities. Accordingly,
issuance expense is estimated at 4% of Fixed Capital cost per annum that is. Calculated to be
birr 5,649,266
11.5. Utilities Expense
Utility expense such for water, communication and electricity is necessary for the day-to-day
operation of the mining activities. Accordingly, the following amount of annual expense is
considered.
Water and power supply Requirement
 Power supply
Around the project area there is no hydroelectric power supply. The only alternative of having
power is from diesel generator.

 Water supply
In Akobo River and other streams even during the dry season there will have adequate water
supplies?
Table17. Annual Utility expense (Birr)
Description Annual expense (Birr)
Water 70,000
Communication 200,000
Electricity 300,000
Total 570000
11.6. SPARE PARTS

Spare parts are the most fast moving items and should be well planned in order to avoid down
time. The cost of spare parts is estimated as 1% Fixed Capital cost. The cost for placer gold
mining equipment and machinery is Birr 1,412,316.5.

11.7. Other expense cost
Table 18.other cost
S.no Description Cost Remark
1 Training in
200,000.00
2 Environmental Reclamation 200,000.00
3 Occupational Safety equipment 100,000.00
4 Food allowance 792,000 1500 birr/ month/
5 Communication & Stationery 100,000.00 person
6 Legal and professional charges 100,000.00
7 Entertainment 500,000.00
8 Clothing and Uniform 100,000.00
9 Medical Expense 163,500.00 5% of Salaries
10 Travel Expense 65,400.00 2% of Salaries
11 Miscellaneous Expense 500,000.00
Sub Total 2320900
11.8. Summary of Operating

Table19.2 Summary of Operating Cost (Birr)
S/
Description Amount (Birr)
No Remark
1 Salary and benefit 3,270,000.00
2 Fuel and Lubricant 8,556,000
Annual Repair and
3 maintenance Expense 11826000
4 Insurance 5,649,266
5 Utilities 29301266
6 Spare parts 1,412,316.5
7 Other expense cost 2,820,900
Total Summary of
Operating Cost 33534482.5
47
11.9. Working capital (WC) Requirement
Working capital is a component of initial investment. It is the amount of money required to fund
the operating expenses until sales revenue from gold will be available. Working capital
requirements have been computed keeping in mind the average storage requirements, the lead
time and purchase volume.
Based on this the working capital requirement is calculated for three month’s expense of fuel
and lubricants, salary and wages, utility, Insurance, maintenance and spare parts.
Table 3 Working capital requirement (Birr)
S/No Description Three month’s (Birr)

1 Salary and benefit 817,500.00
2 Fuel and Lubricant 2,139,000.00
Annual Repair and maintenance 1,059,237.38
3 Expense
4 Insurance 1,412,316.50
5 Utilities 142,500.00
6 Spare parts 353,079.13
7 Other expense cost 705,225.00
Total working capital Cost 6,628,858.00
12. Project fund

As shown above, the fixed investment cost of the envisaged project is estimated at birr
147,860,508 70% of this expenditure or birr 103,502,355.6 about is expected to be obtained
from bank loan, whereas the remaining 30% or birr 44,358,152.4 will be covered from equity
fund of shareholders contribution.
12.1 Loan repayment schedule
On obtaining bank loan, all of its balance is expected to be paid back in 5 years period as
per the following repayment schedule:
Pmt
Beginning Scheduled Cumulative
. Principal Interest Ending Balance
Balance Payment Interest
No.
103,502,355.6 15,050,213.5 16,560,376.9
1 0 31,610,590.42 2 0 88,452,142.08 16,560,376.90
17,458,247.6 14,152,342.7
2 88,452,142.08 31,610,590.42 9 3 70,993,894.39 30,712,719.63
3 70,993,894.39 31,610,590.42 20,251,567.3 11,359,023.1 50,742,327.07 42,071,742.73
48
2 0
23,491,818.0
4 50,742,327.07 31,610,590.42 9 8,118,772.33 27,250,508.98 50,190,515.06
22,890,427.5
5 27,250,508.98 31,610,590.42 5 4,360,081.44 - 54,550,596.50
Table.20. Loan repayment schedule

13. Project milestones
Listed the major project milestones. It includes:
 Fulfilling required man power, machinery and equipment purchase

 Site preparation and construction
 Mobilization and installation of machineries and equipment
 Trial production
 Full scale production
 Mine closure and site rehabilitation, and
 Demobilization
Table 21.time table for the first project year
S.№ Activities / Month 1 2 3 4 5 6
Fulfilling required man power
Machinery and equipment purchase
Site preparation and construction
Mobilization and installation of

machineries and equipment
Trial production
Full scale Production
49
14. Financial evaluation of the project
14.1 basic assumptions and conditions
Detail estimates of operating and fixed capital investment costs are worked out on the basis of
other companies of similar nature and experiences and from price quotations given from
suppliers/ dealers. The estimated costs are then projected with the understanding that they will
be subjected to updating if the need arises from time to time. Hence, the financial analysis of the
project is worked out under the following assumptions:-
 The exploration activity of gold has been come up with commercial reserve from the
license area. This has been confirmed by the geological study.
 Production period assumes to be 5 years.
 The financing of the project is 70% from Bank loan at 16% interest rate; and 30%
from equity.
 The tax, royalty and other similar points considered in the analysis are based on the
Mining Laws and Regulations of Ethiopia.
 Royalty is taken at 7% of gross revenue while income tax is calculated at 25% of Net
profit before tax, 5% equity participation on after tax profit and community
development 2%.
50
51
14.2 Projected financial statements
Table22. Profit and loss statement
Year Unit 1 2 3 4 5
G old Production Gm 273,600.00 273,600.00 342,000.00 307,800.00 239,400.00
Selling price
Birr/gm 2641.8 2641.8 2641.8 2641.8 2641.8
Value (gross
Birr 722,796,480 722,796,480 903,495,600 813,146,040 632,446,920
revenue)
Royalty 7% 50,595,754 50,595,754 63,244,692 56,920,223 44,271,284
Net revenue Birr 672,200,726 672,200,726 840,250,908 756,225,817 588,175,636
Operating cost Birr 21,212,346 21,212,346 26,515,432 23,863,889 18,560,802
Salary and
Birr 2,616,000.00 2,616,000.00 3,270,000.00 2,943,000.00 2,289,000.00
benefit
Fuel and
Birr 6,844,800 6,844,800 8,556,000 7,700,400 5,989,200
Lubricant
Annual Repair
and maintenance Birr 3,389,559.60 3,389,559.60 4,236,949.50 3,813,254.55 2,965,864.65
Expense
Insurance Birr 4,519,413 4,519,413 5,649,266 5,084,339 3,954,486
Utilities Birr 456,000 456,000 570,000 513,000 399,000
Spare parts Birr 1,129,853.20 1,129,853.20 1,412,316.50 1,271,084.85 988,621.55
Other expense
Birr 2,256,720 2,256,720 2,820,900 2,538,810 1,974,630
cost
Depreciation Birr 36,827,913 36,827,913 36,827,913 36,827,913
Building and civil
Birr 1,175,000 1,175,000 1,175,000 1,175,000
work
Machinery and
equipment Birr 33,928,938 33,928,938 33,928,938 33,928,938
requirement
Camping,
professional, and
Birr 151,250.00 151,250.00 151,250.00 151,250.00
kitchen equipment
requirement
Office furniture Birr 52,725 52,725 52,725 52,725
52
and equipment’s
Preproduction
Birr 1,520,000 1,520,000 1,520,000 1,520,000
Cost
Interest Birr 16,560,377 14,152,343 11,359,023 8,118,772 4,360,081
Profit before tax Birr 597,600,091 600,008,126 765,548,540 687,415,244 565,254,752
Income Tax 25% 149,400,023 150,002,031 191,387,135 171,853,811 141,313,688
Profit After Tax Birr 448,200,069 450,006,094 574,161,405 515,561,433 423,941,064
Community
2% 89,640 90,001 114,832 103,112 84,788
development
Gov’t free equity
5% 22,410,003 22,500,305 28,708,070 25,778,072 21,197,053
(Birr)
Retained earning Birr 425,700,425 427,415,788 545,338,503 489,680,249 402,659,222
14.3 cash flow forecast

Table 23.cash flow forecast
Year 0 1 2 3 4 5
Initial Investment -141,231,650
working capital -6,628,858
545,338,502.
Retained earning 425,700,425.1 427,415,788.2 8 489,680,248.8 402,659,222.4
Add back dep. 36,827,913 36,827,913 36,827,913 36,827,913
working capital
recovery 6,628,858
- 582,166,415.
Net cash flow 147,860,508.00 462,528,337.61 464,243,700.75 3 526,508,161.3 409,288,080.42
Discount Factor
(25%) 1.00000 0.80000 0.64000 0.51200 0.40960 0.32768
- 298,069,204.
DCF 147,860,508.00 370,022,670.09 297,115,968.48 6 215,657,742.9 134,115,518.19
- 817,347,335. 1,033,005,078. 1,167,120,596.2
Cumulative DCF 147,860,508.00 222,162,162.09 519,278,130.57 2 0 2
1,167,120,596.2
NPV@25% 2
IRR 233%
Payback period 1
53
analysis
54
14.4 Net Present Value (NPV)
The cash flow analysis has been conducted for the project and accordingly the net present value
(NPV) of the project at 25% discount rate is Birr 1.1 billion. This is indicating the viability of the
project to invest.
14.5 Internal Rate of Return (IRR)
Financial computation has also been made for internal rate of return (IRR) of the project. And
accordingly the IRR of the project is computed to be 233%; which is greater than the discount rate
and Bank interest rate. This is also revealing the viability of the project to invest.
14.6 Pay Back Period
Based on the cash flow model of the project, the payback period of the project is computed to be 1
year. This is considered as a short period of time to return back the investment from the point of
view of mining investment project; as the mining investment is a risky investment.
14.7 Profit and Loss Statement
The profit and loss statement of the project has been conducted and the result is presented with the
help of Table 24. Based on the table, and given the generic assumptions of the project, the project
would be profitable and paying tax to the Government commencing the initial year of production.
Accordingly, the average profit before tax from the project is estimated to be Birr 643.1 million,
and average profit after tax would be Birr 482.3 million. Similarly, average tax for the Government
is estimated to be Birr 160.7 million.
14.8 Breakeven period
Breakeven period of the project (as it is depicted in the following figure) is near year 2.
55
DCF
DCF
14.9 Scenario Analysis

Scenario Analysis is a process to ascertain and analyses possible events that can take place in the
future. It is used extensively to make forecasting and projections for the future for analyzing
possible future events. Scenario analysis involves constructing or developing scenarios and
integrating the content of scenarios into decision-making.
It is also a what-if analysis in which a model's output (NPV, IRR and PBP) is calculated for a
number of scenarios. It is most commonly used to estimate the expected value of an investment in
a number of situations (such as best case scenario, base case scenario and worst case scenario).
Scenario analysis is carried to determine how much risk is taken before an investment is made.
Therefore, many scenarios analyses account for worst-case scenarios, along with more positive and
optimistic scenarios.
For the proposed project the base case interest rate is 25%, NPV is Birr 1.1 billion, IRR is 233%
and PBP is 1 years.
Table 24; Scenario analysis
Worst case scenario base case Best case scenario
Price decrease by 20% Price increase by 10%
Operating cost increase by Operating cost decrease by 15%
25%
Result
NP 8.56 million Million 13 million
56
V
IRR 80% 33% 60%
PBP 1.5 years 1 years 0.5 years
The best-case scenario shows that a decline in capital investment and operating cost, while increase
in price from the base case significantly enhances the viability of the proposed project – NPV and
IRR increased while PBP reduced to a small number of years. This scenario showed the project
reduces the risk by generating a high return and recovering the initial investment in a short period
of time. The reverse is true for the worst-case scenario.
For the best-case scenario, the net present value is 248.7 million while for the worst case scenario;
the net present value is 124.6 million. The scenario analysis shows that the projected economic
indicators are estimated with a reasonable level of accuracy and justify the profitability and
acceptance of the proposed project.
15. Water and Power Supply Requirement
15.1 Power
supply
Jeba town is in bero woreda city near to the project gold mining site there is hydroelectric
power supply but the power line broken. The only alternative of having power is from diesel
generator for campy and washing machine.
12.2 Water supply
Before 2016 Ethno Gold mining made the water line from Akobo River 10km far from siyal.
From past experience of placer gold processing by washing plant with sluice box the gravel to
water ratio is 1:6 but our Machine requires water supply of approx. 2000 liters/minute or
120m3/hour (500 gallons/minute) at a pressure of approximately 310 kPa (45psi).Any electrical,
petrol or diesel powered pump capable of providing this water flow may be used. The Water
Supply must be connected via a 6” hose (“lay-flat” or discharge hose) clamped onto the inlet
nipple on the Water Manifold. Note: Water Pump and connection hose are not supplied with the
CS-120.
The total volume of wash materials in project place gold project is 19,580,000m3 and if the
washing machine works at its full capacity it wash 1958000m3 wash material per year,
57
therefore, about 979,000m3 and 11,748,000m3 of water is required monthly and
annually, respectively around the area the company cannot get this amount of water capacity to
supply this amount of water continuously but we make the dam and use water recycle system.
58
59
16. CONCLUSIONS
This placer gold mining feasibility study is formulated and developed in cognizance of Filate
mining Special small scale gold mining Enterprise. Vision to be a major producer of
marketable gold in the country, and in compliance with the Ministry of Mines guidelines.
Clearly, the geology of the area is favorable for placer gold deposition. Previous and current
studies of resource estimation pointed that has substantial deposit on ground and can sustain
the proposed annual gold production of one thousand four hundred thirty six (43.4) kg or an
aggregate total of 37 million birr for five (5) years of gold mine operation.
In the next five (5) years operations shall concentrate on stripping and extraction activities
for the identified shallow coal reserves for surface mining while planning and engineering
shall be conducted for possible open pit mining in the future. Road systems shall be re-
established, improved and/or added linking the mining area with the company’s designated
placer. Construction of additional needed infrastructures and facilities such as laboratory will
be done as needed. Stakeholders will be encouraged in participating the company’s endeavors
to foster harmonious relationships beneficial to all.
The surface mining method approach shall be open cast and/or strip mining through the use
of conventional earth-moving machineries such as dozer, excavator, loader, and dump-truck.
The over-all project activities are expected to have minimal negative impact on the
immediate environment. The area is generally characterized by secondary forest growth with
portions overlain by grass lands and cultivation. With systematic and well-controlled mining
and gold washing operations, the impact of waste disposal, pollution and deterioration of
river quality will be minimal. For the stripped areas, the company as a matter of policy is
committed to immediately rehabilitate and reforest these areas. The area, may, in the long
term be better-off in terms of forest cover and vegetation as a result of the rehabilitation and
reforestation programs that will be implemented by the company.
For this placer Gold mining activity OMSC estimates to realize the following:
To spend a total of Investment - ETB 7,860,508.00
To have a gross sale gold - ETB 94,681,520
To pay to the government - ETB 356,688.18
To pay a royalty share - ETB 65,627,706.40
To have a net income of _ ETB 2,90,794,187.29
The Financial study made shows that the project is financially profitable throughout the
project life indicating that there will be a net profit of Birr 425.7 million in the first year and
Birr 30.6 million in the Five year.
49
17. Environmental Consideration
This mining license involves excavation of large surface area which affects greatly the
environment. During mining work we will adhere to the minimum not to disturb the
environment in order to achieve a maximum desired result. Open pit mining design for
obtaining appropriate ore mining should be sited where practicable in consultation with the
owner of the land. Indigenous vegetation within the site will be retained as far as practical.
Any excavation at termination of work will be backfilled according to the prescribed standard
i.e. with rocky soil first, followed by soil and a final layer of topsoil to a level above the
surrounding ground.
A budget will be assigned for environmental assessment and mitigation when the condition is
required by the nature of operation and closure. The closure plan that will be prepared Oromia
Mining Share Company will include all standards of rehabilitation and reclamation to revive
the mine locations to acceptable conditions.
18.1 Social Responsibilities
Environmental sectors take a high state of social issues during and after the mine life cycle in
the area. Furthermore, it will assign a budget to promote education, health and quality of life
in the area. This will benefit communities within the area. The mining operation creates a job
opportunity for local people. This is a good contribution considering the huge unemployment
rate prevailing in the regional. In addition, it will increase the gold reserve of the national bank
of Ethiopia, which will increase the capacity of the country in international marketing
operation. Apart from these, the company will pay tax, Royalty and land leasing.
50
18. References
Amen Y. et al., October 2015 Addis Ababa, Geology, Geochemistry and Gravity survey of Dila
map sheet
Almond, D.C, 1983. The concepts of "Pan-African Episode" and "Mozambique Belt" in relation
to the geology of east and north-east Africa. Bull. Fac. Earth Sci., King Abdul-Aziz Univ., 6, 71-
87.
Amenti, 1996: The Precambrian of Southern Ethiopia. Note No.397. A paper read at the 4th Field
meeting of IGCP project 348 (the Mozambique and Related Belts), held in northern Ethiopia and
Eritrea from 15-25 March 1996.
Ethiopian Institute of Geological Surveys Beraki, W.H., et al., 1989. Berhe, S.M., 1990:
Ophiolite in Northeast and East Africa: implications for
Proterozoic crustal growth. Jour.Geol.Soc. London 147, 41-57.
Berhe, S.M., 1990. Ophiolites in Northeast and East Africa: implications for Proterozoic crustal
growth. Jour.Geol.Soc. London 147, 41-57
Berhe S. M.and Rothery D. A., 1986. Interactive processing of satellite images for structural and
lithological mapping in the northeast Africa. Geology Mag.Bogliotti C., 1989. Reinterpretation of
the large-scale structure of Precambrian rocks in the Adola goldfield (Ethiopia) based on two
generation of interference pattern. Precambrian Res., 44, 289-304.
Cahen L., Snelling N. J., Delhal J., and Vail J. R., 1984. The geochronology and evolution of
Africa. Clarendon press, Oxford.
Chater A.M. 1971. The geology of Megado Region of southern Ethiopia. Research Institute of
African Geology, Department of Earth Science, University of Leeds, England.
Church W. R. 1988. Ophiolites, sutures, and micro-plates of the Arabian-Nubian shield: A
critical comments. In: El-Gaby, S. & Greling, R. O. (eds) The pan-African belt of Northern
Africa and adjacent areas Condie K. C. 1981. Archaean greenstone belts. Elsevier, Amsterdam,
434 PP.
Davidson A., 1983. The Omo River project: Reconnaissance geology and geochemistry of parts
of Illubabor, Kefa, Gemu Gofa and Sidamo, Ethiopia. EIGS, Addis Ababa.
EIGS/UNDP, 1993. Final report on mineral exploration in Bero area). Training for Mineral
Exploration, ETH/86/034.Gass I. G, 1981, Pan African (upper Proterozoic) plate tectonics of the
Arabian- Nubian shield
51
52
53
54
55

Filate

Uploaded by

Copyright:

Available Formats

Filate

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Filate

Uploaded by

Copyright:

Available Formats

FILATE special small scale gold mining

Feasibility Study For

Placer Gold Mining Project in

Gabisa kebele Bero Woreda, west omo zone

PLACER GOLD MINING FEASIBILTY 1

PLACER GOLD MINING FEASIBILTY 3

Figure2. Physiographic map of the area (curtsey to Google map)

PLACER GOLD MINING FEASIBILTY 4

PLACER GOLD MINING FEASIBILTY 5

 Biotite Quartz Gneiss

PLACER GOLD MINING FEASIBILTY 6

PLACER GOLD MINING FEASIBILTY 7

Figure 3.mining site

PLACER GOLD MINING FEASIBILTY 8

PLACER GOLD MINING FEASIBILTY 9

PLACER GOLD MINING FEASIBILTY 10

PLACER GOLD MINING FEASIBILTY 11

Table2. Parameters of the placer

1 Average thickness of overburden M 8.57

PLACER GOLD MINING FEASIBILTY 12

PLACER GOLD MINING FEASIBILTY 13

Figure 6. Separated gold grains with weight

PLACER GOLD MINING FEASIBILTY 14

PLACER GOLD MINING FEASIBILTY 15

 Catalogues of average data including tentative cut-off grades (0.34gm/m3, by

PLACER GOLD MINING FEASIBILTY 17

PLACER GOLD MINING FEASIBILTY 18

 Total overburden volume is 21,336,000.00 m3

av. Gravel gold content 1,920,240.00 m3

 Average grade (tonnage factor) = 0.75 g/m3

 Gold Recovery rate= 95%

In case of the operation efficiency (washing machine capacity of 100m3/hour), it is assumed

PLACER GOLD MINING FEASIBILTY 19

Table 4: Annual production plan

1 100 2 80% 1280 300 384,000.00 0.75 0.95 12000.00

2 100 2 80% 1280 300 384,000.00 0.75 0.95 12000.00

PLACER GOLD MINING FEASIBILTY 20

PLACER GOLD MINING FEASIBILTY 21

 Construction of access road and drainage ditches.

 Construction and developing waste dump yard.

 Excavation, pilling, loading and hauling of gravel ore to processing plant;

 Plan and forecast reclamation of land damaged by mining.

 Indicate and put sketch map of the pit.

8.4.3 Methodology Used for Mine Designing and Planning.

PLACER GOLD MINING FEASIBILTY 22

PLACER GOLD MINING FEASIBILTY 23

PLACER GOLD MINING FEASIBILTY 24

Figure 8. Top view of Block

PLACER GOLD MINING FEASIBILTY 25

PLACER GOLD MINING FEASIBILTY 26

Vt- is total volume m3

Vob- volume of over burden m3= 4,267,200.00 m3

Vgo-volume of gravel ore m3=426,720.00 m3

Vaw-volume of auxiliary works m3

The total wash volume is 2,133,600.00 m3

= ( 4,693,920.00 m3)*0.03 = 140,817.60 m3

Vt= 4,693,920.00 m3+426,720.00 0m3+ 140,817.60 m3

 Bulldozer  washing plant

volume of earth moving which equal 528,000m3.

moving will be 262,000 m3.