Part C
Malpais Mining, Inc.: Profit or Loss
A copper ore body has been discovered by Malpais Mining, Inc. in the Deadman Canyon area of the Mazatzal Mountains. Use the following information to determine the success of Malpais Mining, Inc.'s mining venture. I suggest writing the questions and any calculations on paper before answering.
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DEADMAN CANYON ORE DEPOSIT |
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Mining Data Market price for copper = $3.00/lb Type of ore deposit = disseminated Ore mineral = ????? %Cu in the ore mineral = ????? (see Part B) %ore mineral in the ore body = 5% (0.05) |
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Weight of Copper, Copper Ore, and Waste Rock Weight of ore = 5 million tons Weight of waste rock (open-pit method) = weight of ore x 10 Weight of waste rock (underground method) = weight of ore x 0.5 Weight of Cu in the ore body = weight of the ore x %ore mineral in the ore body x %Cu in the ore mineral |
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Mining Costs per ton Open Pit mining costs = $10 per ton (for ore and waste rock) Underground mining costs = $100 per ton (for ore and waste rock) |
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Total Mining Costs Open Pit = (weight of waste rock (tons) + weight of ore (tons)) x Open Pit mining costs Underground = (weight of waste rock (tons) + weight of ore (tons)) x Underground mining costs |
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Value of the Ore Body Ore body value = weight of Cu in the ore body x 2000 lbs per ton x market price for copper |
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Profit profit = ore body value - total mining costs |
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Table 13-1. Information for the Malpais Mining, Inc. Deadman Canyon copper ore operation in the Mazatzal Mountains. |
Refer to Table 13-1 and your previous calculations to answer Quiz Me! questions C31 through C40.
