A pre-feasibility study of the Kloof Eastern Boundary Area project, Kloof Gold Mine
Date
2003
Authors
Ghoussias, Konstandinos
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Abstract
The ore reserves of the Kloof Sub Vertical Shaft operations are coming to
an end and as such, the Eastern Boundary Area mining operations, which
will extract the Ventersdorp Contact Reef ("VCR"), must be commissioned
to replace the diminishing reserves. Although feasibility studies have been
carried out on the eastern portion of the Kloof Gold Mine lease area, none
have been undertaken to investigate the potential benefits of including the
new mineral rights recently acquired from JCI. This project report is a prefeasibility
study into the potential value to Kloof of accessing and
extracting the resources of the Eastern Boundary Area.
This project report shows, using DCF analysis, that the Eastern Boundary
Area has potential to economically generate the additional reserves that will
be required to supplement Kloof s diminishing Three Shaft reserves. An
NPV and IRR are calculated for the project, the results of which support the
commissioning of further investigative work in order to obtain a better
understanding of the orebody and to generate results that are more accurate. Despite its popularity, traditional DCF analysis has fundamental
shortcomings, as do the commonly associated measures of NPV and IRR.
This project report identifies and reviews these shortfalls and comments on
methods to overcome these as far as practically possible.
Description
Thesis ((M.Sc.) Engin))--University of the Witwatersrand, Faculty of Engineering & the Built Environment, School of Mining Engineering, 2003.