Mike,
This is not intended to be anything more than a very general overview.
There're basically two ways to make a mold to contain and form the molten metal. One is where several objects, which represent the places where metal will <i>not</i> be (like the transfer port passages), are made ahead of time and intricately placed prior to filling the mold with the metal. The process involves several steps and the mold is only used one time.
The other is die casting, where the mold is a multi-part reusable mechanism.
The freeze plugs (more properly "core" plugs) on your cast iron engine block are places where the sand molds ("cores") to form the water jacket passageways are suspended and through which the sand is later removed. I think that people who don't know that think they're there to allow some "give" to protect the block from freezing situations.
I once put an extremely healthy 351 Windsor together with an Edelbrock manifold which still had some of it's core in place in the front crossover - it really pissed me off and I always look for such conditions now.
Anyway, with die casting, you can go into production in a very automated, cost-effective way. It's just that it's usually not possible to get quite so intricate with the mold, so maybe you have to put an extra cover on here and there to seal an opening you needed to stick a part of the die through. It will undoubtedly cause a bit of extra weight since you now need enough material to form a sufficient sealing area, not to mention the fasteners, but the production cost will drop significantly in the long run. There are also other benefits to the process.
I was able to locate this quick comparison:
http://class.et.byu.edu/mfg130/processes/HTML/D13S007C.htm
Glen