Lower Zone Finance Assingment Help With Solution

Lower Zone Finance Assingment Help With Solution


You are offered an advanced gold project with two ore zones, an Upper Zone and a Lower Zone.They have reasonably assured geological resources of 2.7 Mt at a grade of 3.1 g/t Au and 4.3 Mt at 2.5 g/t Au respectively. The conversion factors from resource to reserve are 90% and 85% respectively, and there will be 2.5% mining loss and 10% dilution grading 1.0 g/t Au in both zones. Metallurgical recovery is calculated from the average head grade being treated in each year, based on a constant 0.25 g/t gradeof Au in the tailings being lost.
The resource can be exploited by open cut mining.You must initially remove 5.0 Mt of overburden. Thereafter, theongoing waste:ore ratio is 2.5 for the Upper Zone and 4.2 for the Lower Zone. You may assume that mining transitions instantaneously from the Upper to the Lower Zone after the first is mined out, and waste is mined at the specified waste:ore ratios throughout the mining of each zone.
You have made cost and other estimates in Australian dollars as contained in the template file available on Blackboard. (MFPE_Group_assignment_2.1_Template.xlsx).If parameters are entered for the Upper Zone only, the same values apply to the Lower Zone also if applicable.
Inflation of 3% p.a. will affect both revenue and costs. The gold price is forecast to escalate in real terms at a rate of 1% p.a. from aTime 0 price of US$1250/oz. You forecast that the long-term exchange rate will be1AUS$ = 0.92 US$.All costs, both capital and operating (as listed in the model template) escalate at a rate of 1.5% p.a. in real terms.

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id support@assignmentconsultancy.com with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.
Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.
Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id assignmentconsultancy.help@gmail.com and support@assignmentconcultancy.com must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.
Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.
Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.
Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.


Features for Assignment Help

Zero Plagiarism
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.


We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.


Three Stage Quality Check
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.



100% Confidential
All our works are kept as confidential as we respect the integrity and privacy of our clients.

Related Services

Capital will be invested over a two year period before production commences, and includes:
• Items that can be immediately expensed (exploration, feasibility, overburden stripping etc.)
• Other items need to be depreciated as follows:
o 50% as Project pooled assets,depreciated using the declining balance method with a 200% premium over the mine life, i.e. starting from the first year of production, and
o 50% as Normal items depreciated using the straight line method over a weighted average life of 12 years.
• Capital items (normal and pooled)can be salvaged for 15% more than their written down value in the year following closure of the mine
• Additional “Normal” capex is required for additional mining fleet in the year that the Lower Zone mining starts.
• Sustaining capital is estimated (in Time 0 dollars) to be 2.5% of the cumulative normal and pooled capex at the end of the preceding year, and is spent from the second to the second-last year of production.
• $7.5 million in working capital is injected in Year 2 just before commissioning and returned in the year following the closure of the mine.
Please build your model in nominal dollars.
1. Would you be interested in this project assuming the assumptions are reliable?
2. How much would you be prepared to pay for it in Year 0?
3. Correct to 2 decimal places, what range of recoverable diluted reserves tonnages is your model valid for? Why?

Product Code :Fin263

To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)

You can also email us at assignmentconsultancy.help@gmail.com but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.