Do you need help starting a gold mining company? If YES, here is a sample gold mining business plan template.
Gold mining is not only capital intensive but requires a thorough planning process to be successful. If you are reading this, chances are that you are looking for help on how to put together a good plan for your gold business.
The value of gold keeps rising even while faced with an economic crisis. Many individuals and companies are interested in starting their own gold mining business because of its continued popularity. This is more eminent in countries where there is gold to mine.
Businessmen and women are urged to start a gold mining business because it is much cheaper to produce, and they will gain more money once they’ve sold it. Some find it easier investing in quarry business.
GOLD MINING BUSINESS PLAN GUIDE
Just like other types of businesses, gold mining investment opportunities are truthfully risky businesses to establish.
Though the income is high, many are still doubtful of opening this kind of business since there’s a huge possibility
that it will not succeed.
This is a good reason why it is important to give yourself time to think about it before deciding to have your own gold mining business
GUIDE: Sand Mining Business Planning
Since this business isn’t one you just jump into anyhow, when looking for how to get into the gold mining business, you must check if it is possible to establish it in your country.
Most of the large companies you see today doing this kind of business choose to mine in other countries where there’s gold available.
So, if you want to have your own gold mining company, you need to do your researches appropriately. Gold prospectors who want to start a gold mine have choices to make when beginning to create a mining operation.
In fact, we were made to understand that besides choosing to rent a gold mine lease or pan for gold on public lands, a miner can claim land and start a gold mine on undeclared land.
Gold mining operations range from tiny to gigantic. Definitely, the location and size of the operation will determine how a miner will start a gold mine. All these must be captured in even a small-scale gold mining business proposal.
Here is a sample business plan for starting a gold mining company.
1. Prospect the site with a shovel and pan.
You must record the concentrations of naturally occurring gold in the gold ore on the claim. You are to dig where exposed bedrock is on the claim and where waterways collect gold in the beds of the river or stream around the inside bend of a corner in the water.
Prospecting accurately will increase the amount of gold you pull from the claim per hour of work.
2. You are to set up mining equipment that compliments the geography of the area. Though water is an important feature of many gold mines, some experts said it is not needed for separating the gold from the ore. Necessary things as sluice boxes and shakers can run by either water or air. You just develop the right mine for your site.
3. Ensure you provide living quarters for the miners and power the housing with a generator that can power the electrical mining equipment as well.
You should know that the larger the gold mine the more power, equipment, and housing you will need. If you can, ensure you separate the living quarters from the mill site.
Why? To avoid contaminating the water supply with human byproducts.
4. Excavate gold ore from the most productive sampling sites on the claim and collect the ore near the mining equipment. When enough ore has been stored to run a complete shift of mining operations you can begin to separate the gold from the ore and make money with a gold mine.
5. You should store pure gold and highly concentrated gold ore in separate containers for further processing.
Actually, the processing of gold is the most time-consuming task; eliminating all the debris from the gold can be better managed at a later time.
You should process the ore until all that is left is heavy black sand and gold; then store it for cleaning at a later time.
In conclusion, you should note that you might take some pounding from stronger competitors. In fact, you might make a business mistake or even face intricate gold business challenges like a change in government policy.
GOLD MINING BUSINESS PLAN EXAMPLE
This gold mining business plan sample will help you achieve your desire. We simplify the whole process by including the most relevant sections every plan should have.
You should also not complicate the whole process. The simpler it is, the better. However, an essential requirement is a knowledge about gold mining. This information will be needed in putting your plan together.
- Executive Summary
Buck Mining Corporation is a precious metal mining company involved in the commercial mining of gold. Our gold mining reserves are located in the fringes of Bridgeport, Connecticut.
The discovery of an additional gold reserve outfield has necessitated the expansion of our operations to cover this new location. This expansion will require sourcing the needed funding to cover these operations.
We have acquired the mineral mining rights to explore this new location. The combined size of our current site and our new location is over 4,000 acres.
Gold mining and explorations will commence immediately after we finalize the loan applications.
- Our Products
We are a major gold mining business involved in the exploration and mining of precious minerals. Our team is made up of seasoned geologists, metallurgical and engineering professionals.
These skilled professionals oversee every aspect of gold mining that relates to their field.
- Our Vision
Buck Mining Corporation has been in business for the past 5 years.
With the discovery of more gold deposits, our vision is to break into the major league of gold mining within the next 5 years. The expansion of our operations will help us achieve our target within this specified period.
- Our Mission
The desirability of gold as a store value for wealth has only increased over the years.
As demand grows, we seek to supply mined gold to smelting companies to meet these demands. Our mission is to use safe mining practices in extracting these precious metals.
To achieve our expansion plans, a significant amount of funding is needed. We need the sum of $150,000,000.00.
Out of this total amount, $50,000,000.00 is available. This has been raised from profits. The sum of $100,000,000.00 will be sourced through loans from 4 banks.
This loan application has reached an advanced stage already.
- SWOT Analysis
An analysis of our state of health as a business has been done by a reputable business consultancy firm. Our performance has been measured against vital indices which have brought important facts to light;
Our gold mine business has experienced considerable patronage over the years. We have built a strong team of professionals consisting of geological and metallurgical experts in addition to engineers among many others.
These form the backbone of our operations.
We are a growing gold mining business with formidable competitors. The industry is pretty much dominated by these major players. Although there are regulations in place to check against monopolizing the gold mining sector, an increasing number of businesses like ours are underfunded to compete effectively.
The discovery of an additional gold deposit has enhanced our chances and market share. Our expansion drive seeks to take advantage of this discovery. We will commence exploration as soon as mining equipment is bought and installed.
By this find, our capacity to meet more demand is enhanced.
Threats to our business come in the form of multiple taxations and unfavorable government policies. The impact the latter has on our gold mining business is enormous. This can make it more difficult to do business.
- Sales Projection
With an expansion of our gold mining operations, our profits are expected to witness a jump. We have a projected growth in sales that is expected to rise considerably over the next three years as shown in this chart;
- First Financial Year $10,000,000.00
- Second Financial Year $25,000,000.00
- Third Financial Year $45,000,000.00
- Competitive Advantage
There are advantages we hold over other gold mining businesses. Some of these include the quality of our workforce.
This is made up of experts with many years of experience in the gold mining industry. We have been careful to select only the best as we believe that this will reflect in our operations. The discovery of an additional gold mine and obtaining the operating license has further added to our reserves.
- Marketing Strategy
We already have a network of existing clients who have proven to be valuable assets to our operations. These will be crucial to the take-off and smooth running of our new gold mine. Through the expansion of our current capacity, we will work with more major gold merchants to create a distribution channel for our products.
- Operational Sustainability
The extraction/mining of gold from our reserves is expected to last a period of 3 decades. During this time, more explorations will be carried out in addition to gold processing which we will be embarking on within 2 years. These will enhance our sustainability and make our gold mining business a stable and highly profitable venture.
This gold mining business plan sample has attempted to provide you with the guidance you need. You mustn’t complicate things when writing your plan.
The better informed you are about this business; the easier it is to write a plan when you have a template to work with. It is believed that this will help entrepreneurs in no small measure.