Abstract

This paper represents an attempt to examine the effects of Cutoff Grade (COG) and Stripping Ratio (SR) on the Net Present Value (NPV) for the proposed gold mine in Hamama area, hence to attain best operating condition corresponding to the optimum COG and SR in the proposed gold mine. Discount Cash Flow (DCF) model has been established to calculate NPV by taking the change in the COG and SR into account. This detects the effects of COG and SR on the NPV of this project. The actual production and cost data of Sukari Gold Mine (SGM) of Egypt have been taken as an indicator in creating DCF for the proposed gold mine where maximum NPV results proved the optimum COG and SR.

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