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Maximize “Live Production Capacity” for Small Scale Alluvial Gold Mining

This site is about making money from gold as a business, a career, a potential lifestyle of international adventure and anyone from a novice, a hobbyist to a seasoned pro can learn from it. Live Production capacity methods are truly the secrets to an invisible business unseen by most people in the gold business or not.  Here is a short excerpt example from a gold river (dredging) business plans:

 

Africa Gold River Dredging Plan

22.07.2015

Index:

  1. Capex
  2. Running costs
  3. Dredge Production (4 units)
  4. Gross Au Sales                                                                                                    C

1.Capex:

 My costs for set up will be $54,000 + $26,000 reserve and is a simple budget:

2 – Vehicle Landcruiser Prado Series 70 (used) with

Roof racks & trailers:                                                                              $30,000

4- Gold Harvester 20T Dredge Combos,

With all USA accessory equipment: (gold capture systems,

gold concentrators, Pumps & hoses, Camp……etc):                         $18,000

1 month running cost reserve:                                                  $26,000 

Misc:……………………………………………………………………………………..$6,000 

Total Budget:…………………………………………………………………………$80,000

 

2.Running Costs: $26,000/month                                            Monthly

1. 4 men per dredge x 4 dredge operations =

16 men x $400/month = ……………………..  …………………………………$6,400

2. 4 guards and 2 cooks = 6 x $300/mo = ………………………………… $1,800

3. Management staff. (3 men)………………………………………………….$12,000

4. House with staff (1-cook/maid & 2-guards)………………………. ……$2000

5. Fuel (vehicles & equipment)………………………………….. ……………….$400

6.Internet & cell phones………………………………………………………………$200

7. Food & provisions: 26 people…………………………………….. ………..$1,800

8. Misc………………………………………………………………………… ……….$1,400

Total monthly running costs:…………………………………………………..$26,000/mo

 

Gold production estimate:

1 dredge production is:    4 cubic meters/hour x 2.5 sg = 10 metric tonnes/hour

1-dredge: 10t/hr

2-dredge:  10

3-dredge:  10

4-dredge:  10

Total:        40t/hr x 200 hrs per month = 8000mt of processed raw river gravels

 Minus 50% Africa soil sg variations & machine production inefficiency: 4000mt

Total: Raw river material Run of 4 dredges per month is then 4000 metric tonnes

  1. Gross Au (Gold) Sale: (based on contained grade in raw material):        

Au g/1 raw t                 Grams/Month                    Gross Au Sales/Month      

1/2 gram x 4000 t =    2000 grams    (2kg) x $35 =    $70,000 x 50% =$35,000

1 gram    x 4000 t =    4000 grams    (4kg) x $35 = $140,000 =            $70,000

2 gram    x 4000 t =    8000 grams    (8kg) x $35 = $280,000 =          $140,000

3 gram    x 4000 t = 12000 grams (12kg) x $35 =   $420,000 =          $210,000

4 gram    x 4000 t = 16000 grams (16kg) x $35 =   $560,000 =          $280,000

5 gram    x 4000 t = 20000 grams (20kg) x $35 =   $700,000 =          $350,000

*Note 1: Cash sale in Africa (Quality-96%): $35/gram

*Note 2:  Deduct another 50% from above chart for additional African human inefficiencies (lost time) of (funerals, marriages, sickness, weather…….etc to be conservative)

I compare my live production capacity plans to the work of ants. One ant does a small job and many ants do a big job. When one ant dies or gets sick the other ants keep working until replaced.

Therefore in my gold business plans I use small production machines run in multiples (parallel) of 1 to 4 machines per gold site location as 1 dredge does 10t/hr, 2 dredges do 20t/hr, 3 dredges do 30t/hr, and 4 dredges do 40t/hr and so forth.

To double this again you start a second crew at least 500 meters away to keep the hired labor from talking too much to each other.

Ideal rich gold rivers for the GoldHarvester machines and above plan:

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We can do better than this:

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A Gold Master quote:

“Once your lips touch gold the taste never leaves your mouth!”

 

Gold Master Africa

 

 

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