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GEMCOM SOFTWARE INTERNATIONAL INC.

Whittle

Strategic Mine Planning


Norm Hanson University School of Mining Engineering
Prepared by For Witwatersrand

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Training Objectives
This course is design to introduce participants to pit optimization concept and allow them to become proficient at preparing design constrains, prepared suitable models and run pit designs using Whittle Programmings Four-X Pit Optimization software.
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Todays Program
Introduction to Pit Optimization
o Introduction to Optimization Concepts o Quick Tour Of Four-X o Exporting the block model and topography Validation of model export o My first optimum pit design

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What is Optimal?
AIR

WASTE

MINERAL

Any Feasible Outline has a Value The Outline with the highest value is Optimal
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What is Value?
Which Truck is Worth the Most?
1. 2. 3. 50 tonnes of 2g/t Gold 100 tonnes of 1 g/t Gold 150 tonnes of 0.5% Copper & 0.25 g/t Gold

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What is Value?
Dollar Value = Revenues Costs Revenues can be calculated from:
Ore tonnages Grades Recoveries Product price

Costs can be calculated from:


Mining cost Milling cost

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50 tonnes of 2g/t Gold

= [(2* 50 * 84%* 101.27 ) - (50 * R90)]- (50 * R7.20)

Revenue

Costs

[(8506.94) - (4500)]- (360)

R3646.94

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100 tonnes of 1 g/t Gold


[(1*100 * 84%* 101.27) - (100 * R90)]- (100 * R7.20)

Revenue

Costs

[(8506.94) - (9000)]- (720)

-1213.06

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But wait!
If we just call this truck load waste We only pay R720 to mine it. We would be R463.06 better off

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What is the marginal Condition?


Whenever the cost of processing is higher than the revenue, we should treat the truck load as waste Value =
The Section in square Brackets must => 0

[ (Ore*Grade*Recovery* Price) - (Ore*CostP) ] - Rock*CostM

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The Marginal Situation


Ore *Grade *Recovery*Price = Ore *CostP

Revenue

Cost

by transformation this becomes

Marginal Grade =

Ore * CostP Ore * Recovery * Price

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Marginal Cut-off
Marginal Grade = CostP Recovery* Price

This marginal cut-off condition will change whenever, Processing costs, Recoveries or Prices change!
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150 Tonnes of 0.5% Copper & 0.25 g/t Gold


Revenue from gold Revenue from Copper = [(0.25*150 * 50%* 101.27 + 0.5%*150 *75%*14767 ) - (150 * R48)]- (150 * R 7.20)

Costs
[(2012.74)+ (8306.33) - (7200) ]- (1080) 10319.07- 8280

2039.07
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Value
Dollar Value = Revenues Costs Revenues can be calculated from:
Ore tonnages Grades Recoveries Product price

Costs can be calculated from:


Mining cost Milling cost Selling Costs Overheads
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What affects the optimal outline?


In general:
If the price increases, the pit gets bigger If the costs increase, the pit gets smaller If the slopes are steeper, the pit gets deeper

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Finding the Optimal


AIR

WASTE

MINERAL

Once price, costs and slope are fixed The optimal outline is fixed
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A Simple Example

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Pit Tonnages and Value


Tonnages
Pit Ore Waste Total 1 2 3 4 2,000 1,600 3,600 5 2,500 2,500 5,000 6 3,000 3,600 6,600 7 3,500 4,900 8 4,000 6,400

Ore is Worth 500 1,000 1,500 Waste R 2.00 100 400 900 R 1.00
600 1,400 2,400

8,400 10,400

Values
Pit Value 1 900 2 1,600 3 2,100 4 2,400 5 2,500 6 2,400 7 2,100 8 1,600

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Size .vs. Value


R 3,000 R 2,500 Pit Value R 2,000 R 1,500 R 1,000 R 500 R0 0 2,000 4,000 6,000 8,000 10,000 12,000

Pit Tonnes

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Design Sensitivity
R 3,000 R 2,500 Pit Value B R 2,000 R 1,500 R 1,000 R 500 R0 0 2,000 4,000 6,000 8,000 10,000 12,000 A

Pit Tonnes

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Finding the Outline


Heuristics (searches)
Trial & Error Floating Cone Lerchs-Grossman Four-X Johnsons Network Flow

Guarantee One Optimal Solution

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How does 3-D Lerchs-Grossman Algorithm Work?


Works with block values Works with block mining precedences (arcs) Guarantees to find the three-dimensional outline with the highest possible value Searches the model???
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Arc Relationships
B Arc from A to B A

If A is to be mined, B must be mined to expose A The reverse is not true If B is to be mined, A may or may not be mined

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Arc Chaining
C All slopes are translated into a large number of block relationships It is wrong to assume we need an arc from each block to every block which is above it This is because arcs can chain

B If A is mined so is C A

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Chaining of Three Arcs per Block

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Lets Do It
Demonstration using Four-X

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Block Value - Rule 1


The value must be calculated on the assumption that the block has already been uncovered.

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Block Value - Rule 2


The value must be calculated on the assumption that the block will be mined.

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Block Value - Rule 3


Any expenditure that would stop if mining stopped must be included in the cost of mining, processing or selling.

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Minimum Arcs per Block

Desired Slope

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Demonstration of LG Algorithm
A simple example 45 degree slopes 2-dimensions Blocks are cubic Principles are the same for 3dimensions but harder to show.

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Three Arcs per Block

2-Dimensions & 45 slopes = 3 arcs per block

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Start

23.9

6.9

23.9

Starting with a 2-dimensional cross sectional model. Only 3 blocks contain ore & have values as shown. All other blocks are waste and have a value of 1.0
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Step 1

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The first arc from a block containing value that we find is to a block which is not flagged for mining
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Step 2

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23.9

22.9 We link the two blocks together. The total value of the two-block branch is 22.9, therefore both blocks are now flagged to be mined.
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Step 3

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20.9 We deal with the other two arcs from this block in the same way. The total value of the four-block branch is 20.9
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Step 4

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We can continue the same process to the end of the first bench
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Step 5

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We then moved along the next bench, and find a block which has no value itself, but is part of a branch with value
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Step 6

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The next flagged block has an arc to a block which is also flagged. We do not create a link for this arc or for the vertical one from the same block, because nothing new has to be resolved.
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Step 7

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The next arc from a flagged to another flagged block is between two branches. The procedure is unchanged we do not insert a link
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Step 8

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0.9

20.9

We continue adding links. The dotted link when added will change the value of the branch to 0.1. All blocks in this branch have their flags turned off.
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Step 9

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15.9

20.8

The Lerchs-Grossman includes a procedure for combining the two linked branches into one branch, with only one total value. Note that there is no requirement to always branch upwards from the root.
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Step 10

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At the end of the second bench we have now have only two branches
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Step 11

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8.9

16.8

Lerchs-Grossman detects that the extra waste will remove the ability of the centre branch to co-operate with the right hand branch in paying for the mining of the circled block.
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Step 12

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Lerchs-Grossman includes a procedure for breaking the single branch into two branches by removing a link
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Step 13

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At the end of this third bench we have drop the central sub branch above the low grade block
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Step 14

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-0.1

8.9

Continue adding links and eventually the total value of the left-hand branch becomes negative. The next arc after this is again between a positive and negative branch.
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Step 15

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0.8 At the fourth bench we have just one branch and the combined value is now only 0.8
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Step 16

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0.8 The L-G program scans for arcs from blocks which are flagged to blocks which are not flagged. We can see The search has reach the top of the model and not more block have to be removed.
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Optimal Pit

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0.8 The flagged blocks constitute the optimal pit. The W-shaped pit is worth 0.8. The centre branch has a negative value so none of its blocks are flagged and none are mined.
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