Mine Planning and Scheduling42

MINE PLANNING AND
SCHEDULING
HOW DO MANAGERS USE THE PLANNING
PROCESS?
• PLANNING IS ONE OF THE FOUR FUNCTIONS OF
MANAGEMENT
• PLANNING IMPROVES COORDINATION AND CONTROL
• IN A HIERARCHY OF OBJECTIVES, LOWER-OBJECTIVES HELP ACHIEVE HIGHER-LEVEL ONES

• PLANNING IMPROVES TIME MANAGEMENT
• GOAL SETTING HELPS ALIGN PLANS AND ACTIVITIES
THROUGHOUT AN ORGANIZATION
 STRETCH GOALS ARE PERFORMANCE TARGETS THAT WE
HAVE TO WORK EXTRA HARD AND STRETCH TO REACH
• CONTROL BEGINS WITH OBJECTIVES AND STANDARDS
Mine Planning
The classic procedure for
designing a mine starts by
determining the mining method(s)
and probable optimum mining
rate .
This unit is principally devoted to
the next step – determining initial
mine layout or "conceptual mine
design." The procedure is also
considered initial mine planning.
Mine Layout - Surface
If the mining method is open pit,
the layout starts with the basic
design of the open pit itself. This
includes pit layouts in intervals
up to the final design (ultimate
pit). With the pit established, the
infrastructure is planned,
including surface haul roads,
stockpiles, dumps, tailings The mine layout for an open
impoundment, utility corridors, pit mine might have to be
and surface plant layout. modified if underground
mining is contemplated
when the pit is exhausted.
Mine Layout - Underground
If the plan includes underground
mining, planning starts with locating
and sizing pre-production and on-
going development requirements. The
initial planning includes determining
level intervals, haulage ways, primary
access (shaft, ramp or adit), and other
major entries. The design of major
Once the underground mine
entries requires considering the
concept is established, the
requirements for ore handling, waste
surface infrastructure is
rock handling, primary ventilation
designed, including access
circuit, backfill, transfer, materials
roads, dumps, tailings
handling, access for personnel, refuge
impoundment, utility corridors,
stations, and escape route(s). maintenance facilities,
explosives storage, and surface
plant layout.
Underground Mine Planning
The planning process will, in
general move through four steps,
irrespective of the design phase:
· baseline assessment,
· reserve determination,
· premine planning and
· subsystem design.
Phase I - BASELINE ASSESSMENT
Baseline assessment of all
available data precedes any
planning efforts. It is a
comprehensive initial review of all
available information on the
potential reserve or mine from
geographic, geologic,
environmental, technical, and
economic standpoints.
1) Baseline Assessment Geologic Factors
The geologic model is only an interpretation of the actual
conditions based on the skill of geologists and the economic
backing available to do thorough testing . Constant testing and
drilling is done as the project moves through the design phases.
The data collected dictates the changes that effect the geologic
model.
2) Baseline Assessment -
Environmental Factors
Today designing a mine
requires planning for
environmental protection and
reclamation from the very
beginning.
RESERVE DETERMINATION
The characteristics of a reserve are as crucial as the reserve
magnitude or grade: the depth, inclination, geometry, type and
properties of host and deposit rocks, quality, and etc. play a key
role in the design.
Criteria
A mineral deposit or resource can only be classified as an ore
body only when it can be mined at a profit. The planning and
design attempts to identify the method to make this possible.
Demand of the ore body and mining technology can affect the
future of a project.
PREMISE PLANNING
The mine plan constantly evolves as the mine process changes
physical characteristics. Engineering science and technology are
constantly evolving while the mine is locked into the physical
framework.
An interesting fact is that equipment changes with time but the basic
design of the mine remains the same. This is most obvious in
comparing existing and newer mines.
Following is a list of concerns for underground mining:
1) Regulatory and Legal Factors
Permits and approvals may be at the federal, state, local, or regional. These
are subject to continual revision or reinterpretation requiring ongoing
review of the mine plan.
Compliance plans include:

1) mine layout with projections 5) dust control plan
2) strata/roof control plan 6) medical / emergency evacuation plan
3) ventilation plan 7) fire control/mine evacuation plan
4) fan stoppage plan 8) escapee map/plan.

2) Geologic/ Geotechnical Factors
Depending on the mining methods under consideration, many
geologic and geotechnical factors must be considered. The
economics usually favor extraction of the best grade materials or
the lowest mining cost areas to maximize the return on investments
and shorten payback period.
While the immediate extraction of the best grade materials
enhances immediate finances it can compromise designs.
3) Environmental Factors
The impact on the environment must be considered from
the beginning of the plan design. The impacts to the
environments can include; noise, aesthetics, air quality,
water discharge and run off. The environment must remain
within regulation during the initial data gathering to the
reclamation process.
Reclamation plans include; drainage control, segregation
of waste material, erosion and sediment control, solid
waste disposal, regrading and restoration of waste and
mine areas. The plan must include the effects of the mine
subsidence, vibration ( induced by transportation, mining,
processing or subsidence) and impact on surface water.
The environmental items often dictate the economics and
viability of the mine.
4) Technical Factors
The technical areas of the plan is the most extensive. It takes in
consideration the regulations, geologic, and and environmental
factors to develop each part of the plan.
The layout of the mine is determined by the size and shape of the
reserve. After the ore deposit is mapped, access development for the
reserve area is figured into the plan. The size of the reserves
determines the kinds of access and the number of access portals
needed. Access can be vertical shafts, inclined slopes, and drifts or
horizontal entries.
The larger the reserve, the more complicated the plan becomes.
Surface Facilities
The productivity and the reserve
size determine the size and
placement of facilities.
Consideration must be made for
access, extraction, removal, and
storage of the ore, the physical
needs of the work force, and the
operational needs of the facility.
Land acquisition for disposal areas,
dust, noise, safety, and layout are
other design considerations.
Physical Factors
Geological mapping is used to determine the reserve depth and
develop the best mine layout. The plan lays out the number of
benches and designates the portion of the reserve that will best
meet the needs of the market. Economics drive the design to gain
the most profit from the mine while still maintaining plans for
reclamation.
The sequence of the extraction can be important to maximize the
reserve recovery. The mine may have multiple seams being
extracted at once or only a single vein. The plan will take this into
consideration and plan for the most efficient method of recovery.
Poor mining conditions must be factored into the analysis to
account for changes in productivity rates and mine costs.
Equipment
The equipment needed is determined by
the dimensions and the hardness of the
mineral deposit. Other factors that need
to be considered are production rates,
seam or working height, and property
extent. Ventilation, size constraints,
regulations, and floor pressures may
impact the choice of diesel-or electric-
powered equipment.
Schedules for equipment overhaul
should be developed to assure
productivity rates. New equipment
purchase should consider the
incorporation of new technology as it
becomes available.
Support Systems/ Infrastructure
As the development of the mine
progresses the mine entries, drifts,
and levels become part of the
infrastructure. All parts of the system
must be evaluated for capacity and
availability . The systems are built in a
series so that if one of the systems
fails the whole system is halted until
systems are corrected. A series
system design is usually used to
keep costs low as many systems are
parallel or redundant. They are
designed to be as maintenance free
as possible.
Transportation
Transportation encompasses
provisions for the movement of
materials, personnel and
equipment into and out of the
mine. Supplies, workers,
equipment must be transported
in a timely manner to maintain
the planned production. One of
the main transportation plans
include moving the mined
material from the face to the
processing facility. A successful
mine design will have a smooth
transportation flow.
Manpower
Staffing of the system is a function of the required production
level. Typically the manpower level is inversely related to the
relative level of capital spending but related to the reserve size.
Adequate personnel must be provided to allow the system to
function properly. Personnel includes the supervisory work
force as well.
Consideration must be made for support staff levels such as
administration, engineering, financial staff. The centralization of
the the support personnel may be more effective if centrally
located depending on particular circumstances. The physical
location of the mine must be considered also.
Ventilation
After most of the other factors are
laid out the ventilation is
designed to provide the mine's
life support system. The first
consideration is providing clean
respirable air to the workers. The
dilution of contaminants is next.
In other cases air can used to
cool also.
Mine layout is dramatically
impacted by the ventilation
system. Proper airflow requires
proper sizing , location and
numbers of airways. Minimum
and maximum velocities, and
quantities are often specified by
regulations and mine condition.
5) Mine Closing and Reclamation
After the deposit has been completely mined, the mine area must be
cleaned up and returned to approximately it original condition.
Permits require bonds to be set for protection against not
completing this reclamation. Funds are allocated to cover this
process from the onset of the mine. Many of the reclamation
process begin with the first breaking of the ground. Openings are
sealed, pits filled and revegetated, and the structures removed.
PROJECT PHASES
All project pass through five distinct
phases
Conceptual
Pre-feasibility
Feasibility
Construction
Operation
Of these the most important is the pre-

feasibility stage, because this is where
we do all the trade-offs, separate the
wheat from the chaff and select one
option to take into the expensive
feasibility study.
EVALUATION OF
MINERAL DEPOSITS
PROJECT EVALUATION IS THE PROCESS OF
IDENTIFYING THE ECONOMIC FEASIBILITY OF A
PROJECT THAT REQUIRES A CAPITAL INVESTMENT
AND MAKING THE INVESTMENT DECISIONS
USERS OF PROJECT EVALUATION
METHODS
THERE ARE THREE GENERAL TYPES OF USERS OF PROJECT
EVALUATION RESULTS:
• PRIVATE INVESTORS (INCLUDING PRIVATELY OWNED
CORPORATIONS)
• LENDERS
• GOVERNMENTS
MINE PROJECT FINANCE STRUCTURES
• PROJECT FUNDING CAN BE OBTAINED FROM
THE THREE SOURCES. THE CHARTS BELOW
DEMONSTRATE THE DIFFERENCE BETWEEN
PUBLIC, CORPORATE AND PROJECT FUNDING,
USING AN EXAMPLE OF A TREATMENT
PROJECT.
PUBLIC FINANCE
• FOR YEARS, MANY GOVERNMENTS, FUNDED
PROJECTS BY
• USING EXISTING SURPLUS FUNDS OR ISSUED
DEBT (GOVERNMENT BONDS) TO BE REPAID
OVER A SPECIFIC PERIOD.
• HOWEVER, GOVERNMENTS HAVE INCREASINGLY
FOUND THIS FUNDING TO BE LESS ATTRACTIVE,
AS IT STRAINED THEIR OWN BALANCE SHEETS
AND THEREFORE LIMITED THEIR ABILITY TO
UNDERTAKE OTHER PROJECTS.
• THIS CONCERN HAS STIMULATED THE SEARCH
FOR ALTERNATIVE SOURCES OF FUNDING
CHARACTERISTICS OF MINERAL
PROJECT INVESTMENT DECISIONS
• BEFORE SPECIFIC TYPES OF EVALUATION METHODS AND
DECISION CRITERIA CAN BE ADDRESSED, IT IS IMPORTANT TO
KNOW ABOUT THE CHARACTERISTICS OF THE INVESTMENT
DECISIONS AT HAND. THESE CHARACTERISTICS DETERMINE
WHICH EVALUATION TECHNIQUE OUGHT TO BE USED. IT IS
POSSIBLE TO APPLY AN INCORRECT TECHNIQUE OR DECISION
CRITERION AND UNKNOWINGLY OBTAIN AN ANSWER THAT IS
MATHEMATICALLY CONSISTENT AND MAY EVEN SEEM
REASONABLE BUT IS STILL INCORRECT. IT IS ALSO POSSIBLE
TO DO EVERYTHING CORRECTLY AND THEN MISINTERPRET
THE RESULTS. EITHER OF THESE SITUATIONS MAY WELL
RESULT IN INCORRECT DECISION MAKING
POSITIVE EVALUATION METHODS 1
• GEOLOGIC
• GEOLOGIC QUANTITIES OF MATERIAL CAN BE

MEASURED USING GEOLOGIC INFERENCES AND
ENGINEERING CALCULATIONS.
• HOWEVER ORE AND RESERVES ARE DEFINED AS
MATERIAL THAT CAN BE REMOVED AT A PROFIT GIVEN
EXISTING OR IMMEDIATELY ANTICIPATED
TECHNOLOGIES AND PRICES.
• GEOLOGIC EVALUATIONS ARE ALWAYS OBTAINED
THROUGH SAMPLING AND ARE BY DEFINITION SUBJECT
TO SAMPLING ERRORS.
MINING GEOLOGY AND
EXPLORATION
· HOW MUCH METAL IS AVAILABLE?
· WHAT IS A MINERAL? WHAT IS ORE?
· HOW DO ORE DEPOSITS FORM?
· MINING EXPLORATION METHODS
· ROLE OF EXPLORATION IN MINING
· CASE HISTORIES
EVALUATION OF POTENTIAL OREBODY
• ORE GRADE: LOTS OF DIFFERENT UNITS, CUT-OFF GRADE,
HOMOGENEITY
• BY-PRODUCTS: COMMONLY CRITICAL TO SUCCESS; AU, AG,
W
• COMMODITY PRICES: FORCASTING THE FUTURE
• MINERALOGICAL FORM: NATIVE VS SULFIDE VS OXIDE VS
SILICATE
RESOURCE
• INFERRED: THAT PART OF A MINERAL
RESOURCE FOR WHICH TONNAGE, GRADE AND
MINERAL CONTENT CAN BE ESTIMATED WITH A
LOW LEVEL OF CONFIDENCE.
• INDICATED: THAT PART OF A MINERAL
RESOURCE FOR WHICH TONNAGE, DENSITIES,
SHAPE, PHYSICAL CHARACTERISTICS, GRADE
AND MINERAL CONTENT CAN BE ESTIMATED
WITH A REASONABLE LEVEL OF CONFIDENCE.
• MEASURED: THAT PART OF A MINERAL
RESOURCE FOR WHICH TONNAGE, DENSITIES,
SHAPE, PHYSICAL CHARACTERISTICS, GRADE
AND MINERAL CONTENT CAN BE ESTIMATED
WITH A HIGH LEVEL OF CONFIDENCE
RESOURCE
RESERVES
• PROBABLE: THE ECONOMICALLY MINEABLE PART OF AN
INDICATED AND, IN SOME CIRCUMSTANCES, MEASURED
MINERAL RESOURCE.
• PROVEN: THE ECONOMICALLY MINEABLE PART OF A
MEASURED MINERAL RESOURCE.
RESERVES
CASE STUDY
A PLATINUM MINE
This project started off in the
normal way..................with
boreholes that intersected a
reef
Because the continuity of this
reef horizon is a common
factor, the tendency would be
to accept this as fact.
So without much more ado,
we could lay out and construct
a mine
However, someone decided
to run a seismic survey..........
........ and found a discontinuity!
This called for another
borehole, which changed the
whole picture
........and
prevented some
very embarrassing
questions
?
SO FAR, THEY HAVE GOT IT RIGHT!
• TECHNOLOGICAL
TYPES OF TECHNOLOGIC EVALUATIONS
TECHNOLOGIC EVALUATIONS CAN BE DIVIDED INTO FOUR
MAIN TYPES:
• MINING
• PROCESSING
• TRANSPORTING
• MARKETING
MINING AND HIGH TECH: AN OXYMORON?
TECHNOLOGY
• UNIVERSAL DRAGLINE
MAKING A DIFFERENCE
• 25% + PRODUCTIVITY IMPROVEMENT
• FOR BMA EQUIVALENT TO INCREASING PRODUCTION BY
1 NEW MINE (10 MT/Y) AT 1/3RD CAPITAL COST OF MINE
BUYCRUS EERIE 2570W DRAGLINE
WHERE MINING TECHNOLOGY IS GOING
• REAL OPPORTUNITIES FOR STEP-CHANGE IMPROVEMENTS
• MINING SUFFERS FROM POOR PLANNING AND EXECUTION BECAUSE OF
IMPRECISE KNOWLEDGE
• POOR RELIABILITY AND UTILISATION OF EXPENSIVE CAPITAL FLEETS
• HIGH LEVELS OF GEOLOGICAL UNCERTAINTY
• WHEREAS
• MANUFACTURING/
• RETAILING = “JUST-IN-TIME”
• MINING = “JUST-IN-CASE”
• RESEARCH APPROACHES
• SMART MINING SYSTEMS
• SMART MINING MACHINES
• STEP-CHANGE MINING SYSTEMS
• INVESTMENT
DETERMINE THE MINABLE ORE
RESERVE
• ASSUME ECONOMICS FOR MATERIAL REMOVAL
• LOOK AT GEOLOGY FOR HOW STEEP THE PIT SLOPES CAN
STAND WITHOUT SLIDING IN
• HAVE THE COMPUTER ANALYZE THE LARGEST SET OF
BLOCKS THAT CAN BE REMOVED WITHOUT TAKING STUFF
THAT LOOSES MONEY
• THIS SET MEASURES THE SIZE OF THE PIT THAT CAN ULTIMATELY BE
MINED (CALLED THE ULTIMATE PIT)
• TOO COMPLEX TO VISUALIZE
• DONE WITH EITHER A FLOATING CONE MINER OR LEARCH-
GROSSMAN COMPUTER ROUTINE (EASILY AVAILABLE IN MINESIGHT)
COMPUTER VIEWS OF PITS
THE TIME VALUE OF MONEY
• A REVIEW FOR THOSE WITH ENGINEERING ECON
• SOME NEW THOUGHTS FOR OTHERS
• WOULD YOU RATHER GET $100 NOW OR $100 FIVE YEARS FROM NOW
• MOST WOULD PICK NOW
• ONE REASON – IF YOU PUT MONEY IN CD AT 3% INTEREST IN 5 YEARS YOU WOULD HAVE
$116
• YOU’D ONLY NEED $86 NOW TO EARN TO $100 IN FIVE YEARS SO HOW CAN $100 NOT DELIVERED
FOR FIVE YEARS BE WORTH MORE THAN $86?
HANDLING THE TIME VALUE OF MONEY
• MONEY CAN BE MULTIPLIED BY A DISCOUNT FACTOR TO
ADJUST TO HOW MUCH RIGHT NOW MONEY IT IS EQUAL TO.
• MINING COMMONLY LOOKS FOR INVESTMENTS TO EARN 15%
• IF YOU GET $100 NOW ITS $100
• IF YOU GET $100 IN 1 YEAR ITS LIKE $87
• IF YOU GET $100 IN 5 YEARS ITS LIKE $50
• IF YOU GET $100 IN 10 YEARS ITS LIKE $25
• YOU SEE THE PATTERN – THE LONGER THE MONEY TAKES TO GET
HERE THE LESS IT IS WORTH
WHAT DOES THE TIME VALUE OF
MONEY DO TO MINE PLANS?
$100,000,000
0 1 2 3
4 5 6 7 8 9 10 11 12 13
$100,000,000
Just adding up money gives $600,000,000 Total
ut not all the money got here at the same time – if we apply discount factors and
hen add we get $1,670,000 – almost even money (at 15% interest)
(A Total After Multiplying by Discount Factors is called a Net Present Value –

The more a project is worth the hotter the item!)
SAME MONEY BUT SOME IS MOVED
FORWARD IN TIME
$150,000,000
$50,000,000
0 1 2 3
4 5 6 7 8 9 10 11 12 13
$100,000,000
Same money but I collect more money sooner and less later
NPV is now $57,100,000 instead of $1,670,000
Get more of your money faster = Better NPV!

PUT-OFF EXPENSES
$150,000,000
$0 $50,000,000
0 1 2 3
4 5 6 7 8 9 10 11 12 13
$100,000,000
Same Money Again but now the NPV is $197,374,000
Getting money early and putting off expenses makes project values improve
A WHOLE LOT!
HOW CAN I MAKE THAT HAPPEN IN THE
FIELD
• SUPPOSE I MINE MY BEST AND MOST VALUABLE ORE FIRST?
• SUPPOSE I DELAY SPENDING MONEY STRIPPING WASTE
MATERIAL
• IF I MINE FROM THE TOP DOWN I WILL USUALLY MINE MOSTLY
WASTE AT FIRST
• AND WAIT A LONG TIME TO GET DOWN TO THE BEST ORE
• WHAT I WOULD LIKE TO DO FOR A SEQUENCE IS TO ASK THE
COMPUTER TO FIND ME THE BEST ORE WITH THE LEAST
STRIPPING FIRST
• I WILL GET THE COMPUTER TO IDENTIFY A SERIES OF NESTED PITS
THAT HAVE THE MOST VALUE AND USE THAT AS MY DRAFT
SEQUENCE
DEVELOPING A PRACTICAL LAYOUT
• WITH A SERIES OF NESTED PIT SHELLS AS A GUIDE DESIGN A SET OF
PITS THAT FOLLOWS THE GUIDES BUT HAS BENCHES, AND ROADS
REQUIRED FOR PRACTICAL MINING.
• MINESIGHT IS A 3D CAD PROGRAM SO I CAN DRAW IN MY ROADS AND BENCHES
• LOOK AT FURTHER BOOSTING EARNINGS BY RUNNING ARTIFICIALLY
HIGH CUT-OFF GRADES AT FIRST AND SIZING MINE PRODUCTION
• CAN BE DONE WITH VALP IN MINESIGHT
• SIZE UP YOUR EQUIPMENT FLEETS AND HAULAGE TIMES
• MINESIGHTS HAULAGE PROGRAM IS STILL WEAK (WE WILL USE FPC)
• DEVELOP DETAILED LONG TERM SCHEDULES OF WHAT WILL BE MINED
FROM WHERE
• MINESIGHT STRATEGIC PLANNER CAN DO THIS
• IN FOR MAJOR REFINEMENT IN MARCH OR APRIL
• COLLECTIVELY THESE STEPS ARE CALLED LONG TERM MINE PLANNING
STAGES OF EVALUATION
• EVALUATION OF A MINERAL RESOURCE IS THE PROCESS OF
DETERMINING IF THE RESOURCE WILL SUPPORT ECONOMIC
EXPLOITATION
• FORMAL RESOURCE PROJECT EVALUATION IS AN
ITERATIVE PROCESS USUALLY ACCOMPLISHED VIA A
SERIES OF
• PROGRESSIVELY MORE DETAILED STUDIES THAT
PUNCTUATE AND DRIVE ONGOING DATA COLLECTION
PROGRAMS
STAGES ARE
• SCOPING (CONCEPTUAL)
• PREFEASIBILITY
• FEASIBILITY
• SCOPING TO IDENTIFY:
• TECHNICAL ISSUES REQUIRING FURTHER INVESTIGATION OR

TESTWORK
• FEATURES AND ORDER OF MAGNITUDE PARAMETERS OF
PROJECT
• COSTS AND TIME REQUIRED TO UNDERTAKE FURTHER
DEVELOPMENT.
• SCOPING STUDIES ARE CONCEPTUAL STUDIES AND
• ARE NOT SUFFICIENTLY ACCURATE TO CARRY OUT A MEANINGFUL
ASSESSMENT OF THE ECONOMIC VIABILITY OF ANY PROJECT,
• ONLY WHETHER AND HOW MUCH, FURTHER PREDEVELOPMENT IS
WARRANTED
• PREFEASIBILITY
• ASSESS PROBABLE RESERVE & APPROACHES TO RECOVERY
• IDENTIFY TECHNIQUES & RATES OF EXTRACTION
• OUTLINE POSSIBLE FEATURES OF THE FACILITIES
• DEVELOP CAPITAL & OPERATING COSTS ESTIMATES
• TEST MARKETABILITY OF THE COMMODITY
• ASSESS ECONOMIC VIABILITY
• DETERMINE WHAT FURTHER EFFORTS ARE REQUIRED TO PROGRESS
PREDEVELOPMENT ACTIVITIES
PREFEASIBILITY STUDIES SHOULD BE SUFFICIENTLY ACCURATE TO ALLOW A
COMPARATIVE ANALYSIS OF ECONOMIC VIABILITY TO BE DEVELOPED FOR
ALTERNATIVE CAPACITY AND PROJECT CONFIGURATIONS (IE OPTIONS
STUDY).
FEASIBILITY UNDERTAKEN AT TWO LEVELS
• FOR INTERNAL FINAL ASSESSMENT PURPOSES
OR
• FOR OBTAINING EXTERNAL FUNDING (BANKABLE FEASIBILITY STUDY).
WITH THE OBJECTIVE OF:
• ESTABLISHING PROVED & PROBABLE RESERVES WITHIN OVERALL MEASURED
INDICATED & INFERRED RESOURCES
• PROVING THE TECHNICAL VIABILITY OF THE MINE & EXTRACTION METHODS
• DEFINING THE FEATURES & CAPACITY OF THE FACILITIES
• ESTIMATING DEVELOPMENT, CAPITAL & OPERATING COSTS OF MINE OVER ECONOMIC
LIFE OF RESOURCE
• ESTABLISHING THE MARKET FOR THE COMMODITY
• COMPLETING ECONOMIC ASSESSMENTS OF THE SELECTED PROJECT CONFIGURATIONS
• ASSESSING THE ECONOMIC SENSITIVITY OF THE PROPOSED DEVELOPMENT TO
VARIOUS FACTORS
• SETTING A FRAMEWORK FOR THE IMPLEMENTATION OF THE CAPITAL INVESTMENT IN
THE DEVELOPMENT.
BY WHOM?
• LARGELY DEPENDENT ON SIZE OF COMPANY AND
AVAILABLE RESOURCES
• SCOPING - BY OWNERS USING INHOUSE RESOURCES &
STAFF, ASSISTED BY SPECIALISTS OR CONSULTANTS
ASSIGNED SPECIFIC TASKS
• PREFEASIBILITY - BE LED BY OWNER’S INHOUSE STAFF
WITH AREAS ASSIGNED TO CONSULTANTS
• FEASIBILITIES - BE MANAGED BY OWNERS STAFF,
ASSISTED BY PROJECT ORIENTATED STAFF, WITH
DEFINED AREAS OR DISCIPLINES TO CONSULTANTS OR
CONTRACTORS.
FEASIBILITY STUDY DOES NOT MEAN
FEASIBLE
• THERE APPEARS TO BE A MISCONCEPTION BY
SOME IN THE INDUSTRY ABOUT WHAT A
FEASIBILITY STUDY IS AND THE STEPS
REQUIRED TO GENERATE ONE.
• YES, WHEN SOMEONE SAYS FEASIBILITY WE
ALL KNOW WHAT PEOPLE ARE TALKING
ABOUT, BUT AS COMPANIES TRY TO EXPEDITE
THE PROCESS OF BRINGING PROJECTS ON-
LINE THESE STEPS ARE BEING SKIPPED.
• UNFORTUNATELY, SKIPPING THESE STEPS CAN
END UP DELAYING THE PROJECT AND
COSTING MORE MONEY
PITFALLS OF AVOIDING STEPS
• BASICALLY THE MAIN PITFALLS RESULTING
FROM NOT FOLLOWING THESE STEPS ARE
PROJECT DELAYS AND COSTS, INCLUDING
LOST OPPORTUNITY COSTS.
• EXPERIENCE HAS SHOWN THAT SKIPPING
THE PREFEASIBILITY STUDY DOES NOT SAVE
TIME AND MONEY BECAUSE ISSUES THAT
SHOULD HAVE BEEN IDENTIFIED EARLY IN
THE PROCESS ARE NOT, CREATING DELAYS
WHILE THESE ISSUES ARE ANALYZED AND
ADDRESSED, WHICH RESULTS IN INCREASED
COSTS.
PITFALLS
•
OF AVOIDING STEPS
DELAYS ARE TYPICALLY CAUSED BY THE
NEED FOR ADDITIONAL EXPLORATION
DRILLING FOR EVERYTHING FROM ORE
BODY DEFINITION, TO GEOTECHNICAL
STUDIES, TO METALLURGICAL SAMPLING
• CONDUCTING A SCOPING OR
PREFEASIBILITY QUICKLY IDENTIFIES SUCH
PROBLEMS AND FURTHER WORK ON THE
PROJECT CAN BE SUSPENDED UNTIL THE
ADDITIONAL EXPLORATION DRILLING IS
COMPLETED THUS SAVING TIME, EFFORT,
AND EXPENSE
ORE RESERVE
ESTIMATION
INTERPOLATING A
SURFACE FROM
SAMPLED POINT
DATA
Interpolating a Surface From Sampled Point Data
Assumes a continuous surface that is sampled
Interpolation
 Estimating the attribute values of locations that
are within the range of available data using
known data values
Extrapolation
 Estimating the attribute values of locations
outside the range of available data using known
data values
Interpolation
Estimating a
point here:
interpolation
Sampl
e data
Extrapolation
Sampl
e data
Estimating a
point here:
extrapolation
Sampling Strategies for Interpolation
Regular Random
Global Interpolation
Uses all known sample points to estimate a
value at an unsampled location
Sampl
e data
Local Interpolation
Uses a neighborhood of sample points to
estimate a value at an unsampled location
Sampl
e data
Uses a local
neighborhood to
estimate value, i.e.
closest n number of
points, or within a
given search radius
INVERSE DISTANCE
WEIGHTED (IDW)
Inverse Distance Weighted
Local method
Exact
Can be linear or non-linear
The weight (influence) of a

sampled data value is
inversely proportional to its
distance from the estimated
value
Inverse Distance Weighted (Example)
n z 
 i


i 1
d p

z ( x, y )  i
or z ( x, y )     z     1
with
1 
i i i
n
 
d
p
i 1
i 
10
0 IDW:
4 Closest 3
3 16 neighbors,
0 r=2
2
20
0
KRIGING
INTERPOLATION
KRIGING INTERPOLATION
 Kriging is named after the South African

engineer, D. G. Krige, who first developed the
method.
 Kriging uses the semivariogram, in calculating

estimates of the surface at the grid nodes.
KRIGING INTERPOLATION
 The procedures involved in kriging incorporate

measures of error and uncertainty when determining
estimations.
 In the kriging method, every known data value and
every missing data value has an associated variance. If
‘C’ is constant (i.e. known value exactly), its variance
is zero.
 Based on the semivariogram used, optimal
weights are assigned to known values in order to
calculate unknown ones. Since the variogram
changes with distance, the weights depend on the
known sample distribution.
ORDINARY
KRIGING
ORDINARY KRIGING
 Ordinary kriging is the simplest form of
kriging.
 It uses dimensionless points to estimate other
dimensionless points, e.g. elevation contour
plots.
 In Ordinary kriging, the regionalized variable is
assumed to be stationary.
PUNCTUAL (ORDINARY) KRIGING
 In our case Z, at point p, Ze (p) to be calculated
using a weighted average of the known values
or control points:
z ( p)   w  z ( p )
e i i
 This estimated value will most likely differ from the actual
value at point p, Za(p), and this difference is called the
estimation error:
 p  ze ( p )  z a ( p )
PUNCTUAL (ORDINARY) KRIGING
 If no drift exists and the weights used in the
estimation sum to one, then the estimated value
is said to be unbiased. The scatter of the
estimates about the true value is termed the
error or estimation variance,
[ z e
( p i )  z a ( p i )] 2
i
σ 
2
z
i 1
n
CLASSIC OPEN PIT MINING
ISSUES AND CHARACTERISTICS
CLASSIC OPEN PITS CHARACTERIZED BY
OVAL SHAPE, BENCHES, SPIRALING ROADS
These pits expand without

Moving and generally
Target a vein or steeply
Dipping stock on ore
THE SLOPE EFFECT
What happens if we
Change the slope
Angle?
What just happened to the overburden volume?
What just happened to our stripping ratio?
Conclusion – Pit Slope Makes a Big Difference in Open

Pits
IMPLICATIONS FOR SLOPE EFFECT
• IN LONG AREA STRIP MINES WHERE THINGS BROKE DOWN TO 2 DIMENSIONS

SLOPE DID NOT IMPACT STRIPPING RATIO
• HERE IN THIS STATIC 3D PIT GEOMETRY THE IMPACT IS HUGE
• OBVIOUSLY HAVING A STEEPER SLOPE IMPROVES ECONOMICS
LIMITING SLOPES
• ONE LIMIT IS GEOLOGIC – HAVING THE PIT SLIDE IN ON YOU
IS BAD FOR INVESTMENT (AND POSSIBLY YOUR HEALTH IF
YOU ARE AT THE BOTTOM)
• ONE EXERCISE COMMONLY TAUGHT IN ROCK MECHANICS
COURSES IS PLOTTING FRACTURES ON STEREO NET
• ILLUSTRATES HOW MANY FRACTURES ARE OPENED UP BY BENCHES
Daylighted fracture
Offers an opportunity Non-Daylighted fracture offers little
To slide off. Risk
PROBABILITY OF FAILURE
• NOT ALL DAYLIGHTED FRACTURES WILL SLIP

• NOT EVERY NON-DAYLIGHTED FRACTURE WILL HOLD
• MORE MAJOR EXTENSIVE DAYLIGHTED FRACTURES
MORE LIKELY A MAJOR FAILURE IS
• ONE NEW MEXICO MINE LOST ENTIRE PIT AS SLIDE SLIPPED
IN OVER SEVERAL MONTHS
SIGNIFICANCE OF FAILURE
• SOME SMALL FAILURES WILL TAKE A FEW HOURS TO
CLEAN UP – CAN RISK THESE TO SAVE MONEY
• LARGER REGIONAL FAILURES ARE FATAL, PROBABLY
CANNOT ENDURE MUCH RISK
Can tolerate
daylighted Daylighted fractures on over-all
Fractures on Pit slope are another matter
benches
A LESSON IN OPEN PIT TERMINOLOGY
Berm
Note that the toe to

Crest Crest slope is much
Steeper than the over-all
Bench
Toe
Over-all Pit Slope
Localized single bench failures from a steep toe to crest slope are much
Tolerable than an over-all pit slope failure over the entire side of a pit.
PIT SLOPES
• QUARRIES IN STRONG ROCK CAN SUSTAIN ABOUT 80

TO 85 DEGREE TOE TO CREST SLOPES
• GEOLOGY DETERMINES LIMITS BUT ABOUT 58 TO 72
DEGREES IS A COMMON RANGE FOR TOE TO CREST IN
OPEN PIT METAL.
• OVER-ALL SLOPES OFTEN MORE CONSERVATIVE
• FREQUENTLY LESS THAN 45 DEGREES
• CANNANEA MEXICO IS NEARLY 60
THE EQUIPMENT CONSIDERATIONS
• WHY BENCHES?
• BENCHES STOP ROLLING ROCKS (A ROCK
ROLLING DOWN 600 FT AND HITTING YOU IN THE
HEAD WILL SPLIT YOUR SCULL – EVEN IF THERE
ARE NO BRAINS)
• BENCHES ACT AS ROCK CATCHERS – THEY NEED TO BE
WIDE ENOUGH FOR THIS – WITH THE AID OF A BERM
(AROUND 10-15 FEET)
Woops! DIGGING HEIGHT
• BENCHES MATCH EQUIPMENT
Bigger shovels allow bigger bench
Height – but require bigger trucks
WHY BENCHES CONTINUED
• FLAT AREA ON BENCHES PROVIDES ROOM FOR
EQUIPMENT TO MOVE
• BIGGER TRUCKS HAVE BIGGER TURNING RADIUS
Truck
Shovel
Plan view of bench work area

GRADE CONTROL AND LIMITS ON BENCH
HEIGHTS
• USUALLY HAVE TO DIG WHOLE BENCH TOE TO CREST

• CANNOT SELECT ORE
• SOME MINING DEPENDS ON SELECTING ONLY BEST ORE

FOR PROCESSING
• CAN LOOSE SELECTIVITY AS BENCH HEIGHT INCREASES
ECONOMICS AND ADVANTAGES OF BENCH
HEIGHT
• MAINTAINING BENCH AREA INVOLVES A COST
• LESS BENCH AREA = LESS COST
• HIGHER BENCHES ARE CHEAPER (USUALLY)
• IN DRILLING FOR BLASTING IT TAKES TIME TO SET UP
FOR EVERY HOLE DRILLED
• HIGHER BENCHES ALLOW LARGER MORE ACCURATE HOLES
• ALLOW GREATER SPACING – USES DRILL TIME MORE
EFFECTIVELY
DETERMINING A BENCH HEIGHT
• GRADE CONTROL WISE THE LIMIT IS 40 FEET

• ROCK MECHANIC WISE THE LIMIT IS 60 FEET
• LOADING MACHINE LIMITATION HEIGHT IS 47 FEET
• THE MOST LIMITING FACTOR IS GRADE CONTROL

• WE NEED TO KEEP BENCH HEIGHT AT 40 FEET
DETERMINING A BENCH WIDTH
• TO STOP ROCKS FROM ROLLING NEED AT LEAST 10 FEET
At least 20 ft
75 ft Turning Radius
Shovel
About 40 feet for 37 foot length
5 ft wall clearance
5 + 75 ft turn radius + 37 feet length + 5 foot from edge = 122
(say about 125 foot bench width for working.)
THE DEPTH EFFECT
• NOTE THAT AS A PIT GOES DEEPER THE STRIPPING RATIO INCREASES UNTIL
IT REACHES AN ECONOMIC LIMIT
• RULE 1 – AS SLOPE DECREASES S.R. INCREASES
• RULE 2 – AS DEPTH INCREASES S.R. INCREASES
PRACTICAL STEEPENING CONSIDERATIONS
• THE SLOPE LIMITING FACTOR WAS THE NEED TO HAVE WORKING ROOM FOR
THE EQUIPMENT
• BUT DO I NEED TO BE ABLE TO WORK ON EVERY BENCH AT THE SAME TIME?
• THERE ARE USUALLY PRACTICAL LIMITS TO THE NUMBER OF LOADERS AND TRUCKS YOU CAN RUN
WITHOUT GOING NUTS
• MOST MINES WILL HAVE ABOUT 2 TO 5 LOADERS.
• USUALLY THEY WILL HAVE SOME EXTRA WORK PLACES TO MOVE THE LOADERS TO SO THEY CAN
PREPARE AHEAD
• TRICK #2 – DOES THE PIT HAVE TO EXPAND IN ALL DIRECTIONS AT THE
SAME TIME.
• CAN USE “PUSH BACKS” – HAVE A FULL WORKING SLOPE ONLY IN CERTAIN DIRECTIONS AT ANY
ONE TIME.
WORKING PITS
• PITS USUALLY GO IN AT WORKING SLOPE

• OFTEN INITIAL PIT IS MINED TOP DOWN TO OPEN THE DEPOSIT
• MINE THEN PICKS A DIRECTION AND DISTANCE TO PUSH-BACK
• PUSH BACK IS WORKED AT THE WORKING SLOPE
• SLOPE IS STEEPENED AS LIMIT OF THE PUSH BACK IS REACHED
• MINE THEN PICKS THE NEXT PUSH-BACK DIRECTION
• THEY HAVE TO OPEN A NUMBER OF WORKING BENCHES
• AS THESE BENCHES ARE OPENED THE SLOPE DECLINES TO THE
WORKING SLOPE
• CYCLE REPEATS UNTIL THE FINAL PIT SLOPE IS REACHED.
THE DISTANCE FACTOR
• AS PITS GO DEEPER THE ROADS TO THE SURFACE GET LONGER

• TRUCKS DRIVE FURTHER SO THAT ORE AND WASTE FROM THE BOTTOM OF THE
PIT IS MORE EXPENSIVE TO MOVE THAN THAT AT THE TOP
• SOMETIMES THE IMPACT OF DISTANCE CAN LIMIT THE PIT DEPTH BEFORE
THE STRIPPING RATIO DOES
IMPACT OF DISTANCE
• GREATER HAUL COST REDUCES THE EARNINGS ON A TON OF ORE

• GREATER HAUL COSTS INCREASE THE COST OF OB REMOVAL
• IF HAULAGE IS ABOUT 35% OF DIRECT MINE COST
• O.B. REMOVAL NEAR THE BOTTOM WOULD BE ABOUT 135% OF NORMAL (WHEN
HAUL COSTS DOUBLED)
• 5/1.35 = LIMIT MAY BE ABOUT 3.73: 1 AT THE BOTTOM
INDUSTRY RESPONSES TO THE LIMIT
• IN-PIT CRUSHING AND CONVEYING – HAVE THE TRUCKS CARRY THE ORE TO A
POINT IN THE PIT A CONSTANT DISTANCE AWAY – THEN CRUSH AND CONVEY
• RESULT – YOU KEEP THE FLEXIBILITY OF HAUL TRUCKS FOR MINING BUT THE
INCREASED HAUL DISTANCES IN MORE MINED OUT UPPER AREAS OF THE PIT ARE
HANDLED BY CONVEYORS WHICH HAVE A LOWER UNIT COST FOR MOVING
MATERIAL
RADICAL IDEAS
• PUTTING INCLINED HOISTS ON THE PIT SURFACE OR JUST IN THE WALL AND
HAULING THE ORE STRAIGHT UP THE SIDE WITH A SKIP
• WAS DONE AT LEAST ONCE IN NEW MEXICO
• HAS BEEN THE OBJECT OF MANY STUDIES OVER TIME
CALCULATING STRIPPING RATIOS
FOR SIMPLE OPEN PITS
OPEN PIT ON PIPE SHAPED
DISSEMINATED DEPOSIT
Cone
1/3*Base*Height
Cylinder
Base * Height
You’ve seen these
Formulas derived in
Your calculus classes
GETTING OUR CONE
Our Frustum Cone =

The Big Cone we Imagine -
The Little Cone

We are missing
GETTING OUR OVERBURDEN
The Frustum Cone

we just calculated -
The Part of that

Volume that is
PAY DIRT!
CALCULATING STRIPPING RATIO
Just One Catch
Calculation we just did

Was based on Volumes
We assumed no material
Stripping Ratio = Overburden / Ore
Was rehandled and all
Ore was recovered
Called a Geologic Volumetric

Stripping Ratio
THE PROBLEM WITH VOLUMETRIC
STRIPPING RATIOS
• MOST OPEN PIT MATERIALS ARE WEIGHT LIMITED IN THE TRUCKS
• THE ECONOMICS ARE DRIVEN BY WEIGHTS NOT VOLUMES
• EASY TO FIX
• OVERBURDEN TONS =OB VOLUME * TONS/UNIT VOL
• ORE TONS = ORE VOLUME * TONS/UNIT VOL
• MAKE SURE YOU DON’T MESS UP YOUR UNITS
• DIVIDE AGAIN TO GET WEIGHT BASED SR
INTERESTING OBSERVATION
What happens if we
Change the slope
Angle?
What just happened to the overburden volume?
What just happened to our stripping ratio?
Conclusion – Pit Slope Makes a Big Difference in Open Pits

COMPUTER AIDED MINE DESIGN
(PART I – ULTIMATE PITS)
COMPUTER AIDED MINE DESIGN
• MANY SURFACE MINES (ESPECIALLY METAL/INDUSTRIAL
MINERAL) ARE DESIGNED WITH COMPUTER PACKAGES
• MINTEC EXAMPLE
• PACKAGES ARE COMPREHENSIVE FROM EXPLORATION TO
OPERATION
• MANY MORE LIMITED PACKAGES THAT DO PARTS OF DESIGN
• AUTOCAD AND SOME OF ADD-ONS
OUR SCOPE
• WE ARE NOT GOING TO LEARN A PACKAGE
• (THEY CHANGE ANYWAY AND COMPANIES HAVE SPECIFIC
PREFERENCES)
• WE WILL LOOK AT WHAT THE BASIC STEPS ARE AND AN

OVERVIEW OF HOW THEY WORK
• WILL BE EXPLAINED AT A CONCEPTUAL UNDERSTANDING LEVEL
• WILL NOT ATTEMPT TO TEACH HOW TO DO OR PROGRAM THE
CALCULATIONS
HOW DOES COMPUTER AIDED DESIGN
WORK
• FIRST - GEOLOGY OF THE MINERALIZATION IS
WORKED OUT
• EXPLORATION DATA WORKING WITH GEOLOGISTS
• REALLY SAME STEP AS TRADITIONAL METHODS
• SECOND – THE DATA IS CONVERTED INTO A
3D BLOCK MODEL OF THE MINERALIZATION
• A CRUDE MODEL IS 100 X 100 X 100 BLOCKS (IE.
100,000) – DETAILED OVER 1,000,000
• MINERAL CHARACTER AND OTHER PROPERTIES OF
EACH BLOCK ARE ASSIGNED TO THE BLOCK
(COMPUTERS PROCESS AS ARRAY)
HOW ARE BLOCK MODELS BUILT
• SAMPLING PROGRAMS OBTAIN SPECIMENS OF THE
MINERALIZATION AND ROCK
• OFTEN DONE WITH CORE DRILLING
• GEOLOGIC AND PRELIMINARY EXPLORATION NORMALLY

IDENTIFIES THE STRUCTURE AND BASIC MINERAL ZONES
LIKELY PRESENT
• COMPUTER PACKAGE IS USED TO HELP DETERMINE WHERE TO
SAMPLE TO OBTAIN THE MOST USEFUL INFORMATION WITH THE
LEAST EXPENSE
THE BUILDING OF BLOCK MODELS
• SAMPLES ARE ANALYZED FOR THE KEY PARAMETERS THAT
WILL DETERMINE THE VALUE OF THE MINERALIZATION
• PUT INTO A SAMPLE DATA BASE
• COMPUTER THEN INTERPOLATES THE SAMPLE DATA TO A

GRID OF BLOCKS USING KRIGING
AT THE END OF THE DAY
• YOU HAVE A SERIES OF BLOCKS
• OFTEN SEPARATE ROCK FORMATIONS ARE MADE SEPARATE
SETS OF BLOCKS
• THE BLOCKS ARE EACH ASSIGNED GEOLOGIC PARAMETERS

THAT DEFINE THE VALUE OF THE “ORE”
• FOR METAL MINES THIS WILL MOST LIKELY BE ORE GRADE
(PERCENTAGE OF THE ROCK THAT IS THE MINERAL OF
INTEREST)
THE CUT-OFF GRADE ISSUE
• VALUE OF THE MINERAL IN THE BLOCK IS
DETERMINED BY THE MARKET
• COST OF MINING AND PROCESSING A BLOCK IS
DETERMINED BY WHAT IS DONE WITH IT
• IT WOULD COST MORE TO GRIND A BLOCK TO POWER
AND PUT IT THROUGH A FLOTATION MILL THAN TO
DUMP IT.
• DECIDED ON WHETHER THE EXTRA EXPENSE OF ORE
TREATMENT IS RECOUPED FROM THE MATERIAL
• NEED TO DETERMINE A “CUT-OFF-GRADE”
• ONLY MATERIAL ABOVE A CERTAIN GRADE IS
PROCESSED AS ORE
MORE CUT-OFF GRADE ISSUES
• MAY BE MORE THAN ONE TYPE OF PROCESSING
• CU ORE CAN BE GROUND AND PUT THROUGH FLOATATION
• CU ORE CAN BE LEACHED IN VATS OR PILES
• CU ORE CAN BE DUMPED
• MAY HAVE MORE THAN ONE CUT-OFF GRADE
• POLYMETALLIC DEPOSITS CONTAIN MORE THAN ONE

MINERAL OF INTEREST
• LEAD ZINC AND SILVER OFTEN TOGETHER
• CUT-OFF MAY BE BASED ON SALES VALUE OF SEVERAL
MINERALS
CUT-OFF GRADES AND BLOCK MODELS
• IN TRANSLATING GEOLOGIC BLOCK MODEL TO ECONOMIC
YOU HAVE TO DETERMINE COV BEFORE YOU CAN ASSIGN
COSTS
• COMMON COV IS THE “BREAK EVEN CUT-OFF GRADE”
• TAKE COST OF PROCESSING ROCK
• CALCULATE THE MINIMUM MINERAL CONTENT THAT WILL PAY THE
COST
• THAT IS YOUR BREAK-EVEN CUT-OFF GRADE
HOW DO YOU DO THAT?
• SIMPLEST METHOD TO EXPLAIN CALLED “FLOATING CONE
MINER”
• COMPUTER BEGINS EXAMINING THE TOP BLOCKS ONE AT A
TIME
• LOOKING FOR A BLOCK WITH A POSITIVE VALUE
• IF IT FINDS A POSITIVE BLOCK IT WILL MOVE THE BLOCK TO ITS
“MINED” BLOCKS RECORD
• REPLACE THE BLOCK WITH AN AIR BLOCK
• IT JUST CYBERMINED A BLOCK OF ORE
FLOATING CONES CONTINUE
• OFTEN TOP LEVEL OF BLOCKS ARE NOTHING BUT AIR OR
OVERBURDEN
• USUALLY FINDS NOTHING
• COMPUTER THEN EXAMINES NEXT ROW DOWN
• LOOKS FOR A BLOCK WITH POSITIVE VALUE
• IF IT FINDS A BLOCK IT WILL LOOK AT THE BLOCKS ABOVE
• BLOCKS ABOVE ARE USUALLY AIR OR OB
• (BECAUSE IF IT WERE ORE IT PROBABLY ALREADY GOT CYBERMINED)
• BLOCKS ABOVE ARE ADDED WITH THE ORE BLOCK
• IF THE ADDED TOTAL IS POSITIVE THE COMPUTER PUTS ALL
THE ORE BLOCKS IN THE ORE MINED COLUMN AND ALL THE
OB BLOCKS IN THE OB COLUMN AND REPLACED THEM WITH
“AIR BLOCKS IN THE BLOCK MODEL
• THEY WERE JUST CYBERMINED
WHATS ABOVE ME?
How About This?
Can you really This one – of course
Mine straight up
And down?
-$5.40 -$5.40 -$5.40 -$5.40 $0 $0 $0
-$5.50 -$5.50 -$5.50 $45 -$5.50 -$5.50 -$5.50
Computer is programmed with a “Cone Angle” – Tells it how to

Look at the blocks above and determine if they need to be mined
As you see this cone floating around on the model in search of minable ore begin
To understand why it is called a floating cone miner.
ADDING THINGS UP
-$5.40 -$5.40 -$5.40 -$5.40 $0 $0 $0
-$5.50 -$5.50 -$5.50 $45 -$5.50 -$5.50 -$5.50
$45
-$5.40 $34.20 > 0
-$5.40
=$34.20
ACTION
-$5.40 -$5.40 $0 $0 $0 $0 $0
-$5.50 -$5.50 -$5.50 $0 -$5.50 -$5.50 -$5.50
Now we are ready to move on to the next block

CONE ANGLES
• ROUTINES DIFFER IN HOW PIT SLOPE ANGLES ARE
HANDLED
• SOME USE A SINGLE INPUT PUT ANGLE
• GO UP WITH A CONE
• ANY BLOCK THAT GETS HIT OR NICKED IS INCLUDED IN
THE CALCULATION OF BLOCK GROUP VALUE
• SOME ROUTINES KEEP A MAXIMUM SLOPE IN EACH
BLOCK
• IE THEY DID NOT COMPLETELY CONVERT THE GEOLOGIC
BLOCK MODEL TO AN ECONOMIC BLOCK MODEL
• THEY MAY ALLOW PARTIALLY MINING A BLOCK
• THESE CONE ANGLES COME OUT OF YOUR ROCK
MECHANICS WORK ON SLOPE STABILITY
WHAT HAPPENED TO WORKING SLOPE?
• YOU MAY REMEMBER THAT NEED A CERTAIN AMOUNT OF
BENCH ROOM FOR EQUIPMENT TO WORK
• USUALLY MADE SLOPE LESS STEEP THAN A FINAL PIT SLOPE
BASED ON GEOLOGY
• WE ARE WORKING ON “ULTIMATE PIT” AFTER EVERY SLOPE

AND TON OF ORE THAN CAN BE MINED HAS BEEN MINED
ROUTINE CONTINUES
• COMPUTER MOVES DOWN TO THE 3RD LEVEL
LOOKING FOR POSITIVE VALUE BLOCKS
• IF IT FINDS ONE IT CONES UP TO THE SURFACE AND ADDS
UP THE VALUE
• CYBERMINES THE WHOLE THING IF VALUE IS POSITIVE
• MOVES ON LOOKING MORE IF THE CONE COMES UP NEGATIVE
• COMPUTER KEEPS DROPPING ONE LEVEL AFTER

ANOTHER TILL IT IS DONE
• “ULTIMATE PIT” IS THE SET OF AIR BLOCKS IN THE MODEL
WOOPS FACTORS
-$15 + $10 = -$5
-
-$5 -$5 -$5 -$5 -$5 -$5 -$5 -$5 -$5 -$5
-$5 -$5 -$5 $10 -$5 -$5 -$5 -$5 -$5 -$5
$25 $25 -$5 -$5 -$5 $70 -$5 -$5 -$5 -$5
WORKING ON WOOPS
-$40 + $70 = $30
-$5 -$5 -$5 -$5 -$5 -$5 -$5 -$5 -$5 -$5
-$5 -$5 -$5 $10 -$5 -$5 -$5 -$5 -$5 -$5
$25 $25 -$5 -$5 -$5 $70 -$5 -$5 -$5 -$5
CYBERMINING
Now the Cone Is Profitable
-$5 -$5 -$5 $0 $0 $0 $0 $0 -$5 -$5
-$5 -$5 -$5 $10 $0 $0 -$0 -$5 -$5 -$5
$25 $25 -$5 -$5 -$5 $0 -$5 -$5 -$5 -$5
To catch situations like this, most floating cone

Miners will start searching from the top of the
Model every time they cybermine a cone to look
For ore on the edge.
HARDER TO FIX
This
T Pit is Not Profitable
-$5 -$5 -$5 -$5 $0 $0 $0 $0 $0 $0 -$5 -$5
-$5 -$5 -$5 -$5 -$5 $0 $0 $0 $0 -$5 -$5 -$5
-$5 -$5 $25 $25 -$5 -$5 -$5 $0 -$5 -$5 -$5 -$5
WEAKNESSES OF FLOATING CONES
This Pit is Profitable
-$5 -$5 -$5 -$5 $0 $0 $0 $0 $0 $0 -$5 -$5
-$5 -$5 -$5 -$5 -$5 $0 $0 $0 $0 -$5 -$5 -$5
-$5 -$5 $25 $25 -$5 -$5 -$5 $0 -$5 -$5 -$5 -$5
Unfortunately Floating Cones will never see this

Since they look at only one block at a time and
Sometimes profitability requires looking at groups
SOLUTIONS
• FLOATING CONE MINERS ARE IN A CLASS CALLED
HEURISTIC ROUTINES
• BASED ON A GUESS A PLUG APPROACH
• IS AN ANALYTICAL SOLUTION CALLED METHOD OF
CONVEX-HULLS
• DON’T ASK ABOUT THE MATH (YOU DON’T WANT TO
KNOW)
• WILL CUT THROUGH A BLOCK MODEL AND GET THE
LARGEST BLOCK OF GROUND THAT STILL KEEPS
INCREASING PROFIT
• ROUTINE IS CALLED “LEARCH GROSSMAN”
• REQUIRES FAIRLY POWERFUL COMPUTER (WHICH WE EASILY HAVE
TODAY)
CHOICES AND LIMITATIONS
• LEARCH GROSSMAN INCLUDES SOME FAIRLY
RESTRICTIVE ASSUMPTION ABOUT UNIFORM SLOPES
• REAL PIT SLOPES THAT ARE STABLE MAY VARY BY DIRECTION
AND ROCK TYPE
• HEURISTIC ROUTINES CAN HANDLE LOT OF
FLEXIBILITY, BUT ARE SUBJECT TO ERRORS
• WHITTLE PROGRAMMING HAS TRIED TO IMPOSE OF
FEW HEURISTIC VARIATIONS ON A TRUE LEARCH
GROSSMAN
• BOTTLE-LINE - IN THE END YOU WILL HAVE AN
ULTIMATE PIT THAT IS SOMEWHAT CLOSE TO THE TRUE
OPTIMUM
MINE CLOSURE
CLOSURE LEGACY
DRIVERS FOR CHANGE
• HEIGHTENED FOCUS ON MINE CLOSURE, THE DEVELOPMENT OF A

CONSIDERABLE BODY OF GUIDELINES, LEGISLATION AND REGULATION
• 70% OF ALL CLOSURES ARE UNPLANNED (LAURENCE UNI NSW).
• RAMIFICATIONS OF ALTERNATIVE LEGISLATIVE MECHANISMS WITHIN
AUSTRALIA AND OTHER PARTS OF THE WORLD
• INCREASED CLOSURE PLANNING DURING THE APPROVALS AND
OPERATIONAL PHASES OF THE MINING LIFE CYCLE.
• MAY TRANSLATE INTO EFFECTIVE MINE CLOSURE IMPLEMENTATION –
TIME WILL TELL?
INCREASED CLOSURE PLANNING
BY COMPANIES
LINKED
TO MINE LIFE CYCLE
IMPORTANCE OF CLOSURE PLANNING
• AIDS ENVIRONMENTALLY BENEFICIAL MINE PLANNING AND DESIGN
• PROMOTES PROGRESSIVE REHABILITATION
• CONSTANTLY WORKING TOWARDS CLOSURE OBJECTIVES: PROACTIVE VS
REACTIVE
• EVER CHANGING NATURE OF CLOSURE PLANS ENSURES OPERATIONS CAN BE
• MODIFIED TO REDUCE RISKS TO CLOSURE OBJECTIVES
• PLAN IN PLACE IN CASE OF UNEXPECTED CLOSURE
• FINANCIAL PROVISIONING AVAILABLE
• STAKEHOLDER INVOLVEMENT IS PROACTIVE NOT REACTIVE IN
ESTABLISHMENT OF CLOSURE CRITERIA, OBJECTIVES AND STANDARDS
• REDUCES CLOSURE TIMEFRAMES AND ENVIRONMENTAL PERFORMANCE
BONDS
CLOSURE CRITERIA AND OBJECTIVES - AIMS
• DEFINE APPROVED POST MINING LAND USE
• REDUCE TOTAL AMOUNT OF DISTURBANCE BY ADOPTING
BEST PRACTICE PLANNING PRINCIPLES IN MINE DESIGN
• AIM TO REFLECT CHARACTERISTICS OF AESTHETICS,
ECOSYSTEM FUNCTION, LANDFORM FUNCTION, EROSION
LEVELS AND HYDROLOGICAL PATTERNS REPRESENTATIVE
OF THE EXISTING ENVIRONMENT IN ALL REHABILITATED
AREAS
• CREATE REALISTIC AND MEASURABLE STANDARDS BY
WHICH REHABILITATION SUCCESS CAN BE EVALUATED
STAGES OF MINING – THE BUSINESS IS “MINING”
CLOSURE PLANNING IS INHERENTLY TODAY PART OF THE BUSINESS
Figure 1:
Integrating
Stages of
Mining and
Mine Closure
Planning
(adopted from DITR
2006a, ICMM 2006)
BUILDING THE
BUSINESS CASE
FOR FUTURE
MITIGATION OF RISK
KEY CLOSURE PLANNING CONSIDERATIONS
STATED: RECENTLY “BHP BILLITON EMBEDDED CLOSURE PLANNING INTO ITS

BUSINESS SYSTEMS BY INTEGRATING CLOSURE ENGINEERING AND PLANNING
INTO ITS LIFE OF ASSET PLANNING PROCESS”.
FIVE PRINCIPLE CLOSURE PLANNING DRIVERS:

• CLOSURE PLANNING FUNDAMENTALS.
• RISK MANAGEMENT.
• ENGINEERING, EXECUTION AND PROJECT MANAGEMENT.
• COST ESTIMATION.
• MANAGEMENT TO MITIGATE CLOSURE RISK DURING OPERATIONS.
• DEVELOPED A CHECK-LIST OF 28 KEY CLOSURE PLANNING
CONSIDERATIONS. (BENTEL 2009)

FIGURE 1. CLOSURE PLANNING - KEY STAGES OF CLOSURE PLANNING
INTEGRATION INTO BUSINESS PRACTICE
BUSINESS IS ABOUT RISK MANAGEMENT
(INTEGRATION AND BUSINESS PRACTICES)
ICCM Draft
Figure 1:
Key Stages
of Closure
Planning
INTEGRATIO
N INTO
BUSINESS
PRACTICES
WHERE ARE THE TREES?
WHAT ABOUT THE SLUDGE?
EXAMPLE
CASE STUDY
REHABILITATION OF ENSHAM OPEN-CUT COAL MINE SITE
Rehabilitation of the Ensham
open-cut coal mine near Emerald
in Central Queensland.
Image courtesy of Ensham Resources

Before mining

After mining

After rehabilitation
The purpose of rehabilitation is to return the site to an agreed land use.
This is a legal requirement of the EPA (Environmental Protection Authority).

Open cut coal mining
‘Spoil’ is the overburden removed to reveal the coal seam. Previous spoil is piled
behind the pit. In this way, the pit advances, progressively filled with new spoil.
Rehabilitation will ultimately occur over the previous spoil behind the mine.
Direction of
advance of the pit

The Ensham Mine
The pit at the Ensham mine is progressing to the right in the picture.
Removal of surface overburden is in progress on the highwall side
(right) and is dumped on the spoil pile (left) to fill the pit.

Rehabilitation
planning
An aerial view of the mine shows
the plan for rehabilitation, with the
areas to be rehabilitated in green.

An Environmental Impact Study
(EIS) is conducted to assess the
flora and fauna that exists prior to
mining.
An Environmental Authority (EA) is

then issued with the mining lease to
regulate how the mining company is
to interact with the environment.
The rehabilitation requirements are
different for every mine.
The mine proposes a rehabilitation

plan and the government then adds
its own conditions prior to approval.

This map highlights areas of
“Endangered”, “Of concern” and “Not
of concern” ecosystems within and
surrounding the mine site.

Before mining

After mining

Rehabilitation

Restored land

Stockpiling of topsoil pre-mining
Before mining begins, topsoil is stockpiled on the highwall side. It

is kept for a period until the mine has progressed and the slope of
the spoil is ready for the topsoil to be replaced. Most mines
salvage 200mm of topsoil but at the Ensham mine 300mm is kept.

Dumping of spoil
After surface overburden has been removed by
trucks, the highwall is detonated to transfer as
much burden as possible to the other side of the
pit. Draglines pile this overburden into high spoil
piles.

Steep slopes are unsuitable for
rehabilitation
The volume of rock swells by 25 percent after it is detonated. Even

after the coal seam is removed, the spoil piles created by draglines
create hills with steep slopes formed as the spoil is dumped.
In years past, these slopes were rehabilitated. However, the slope

was found to be too steep to be stable. This picture shows how
unstable such a hill is with regard to erosion and landslides.

Reshaping of the slope
Bulldozers and trucks are used to reshape steep spoil piles

into gradual slopes that are suitable for rehabilitation.
Generally, the maximum gradient of slope accepted by the

Environmental Authority is one in ten (ten percent),
although sometimes one in fifteen is accepted.

A site levelled prior to rehabilitation, awaiting
another truck and shovel dump of spoil.

Once the required gradient is obtained,
bulldozers are used to smooth the surface.
Working the material in this manner has the
added advantage of making it finer on the
surface and more conducive to plant growth.

Prior to rehabilitation, the surface resembles a big, flat moonscape.
It takes some four or five years from commencement of mining to

reach this stage. It’s not possible to rehabilitate right up to the mining
point and a further delay results because the ground must be left to
settle for twelve months.
10 A slope of 1 in 10

Swelling of the rock means that it's not possible to
return the land to its original contours. A gently sloping
hill with a flat top is constructed behind the mine.

Laying of topsoil
Topsoil stockpiled prior to commencement of

mining is trucked to the rehabilitation site.

Topsoil is dumped, ready to be
spread by bulldozers or graders.

Spreading of topsoil

Topsoil is generally spread to a depth of 200mm.
At the Ensham mine, 300mm.

The importance of topsoil (left) is
most apparent adjacent to a site
where topsoil is yet to be laid (right).

Laying of manure
Manure is laid over the topsoil to further encourage plant growth..

Manure is spread using a belt-driven bin behind a tractor. At
the Ensham mine, 15 tonnes of manure is spread per hectare.

Pegging the contours
Surveyors and environmental engineers peg lines of equal

height to mark the contours on the rehabilitation site.

Deep ripping along the contours
A bulldozer follows the pegs to deep rip along the contours to a depth of
about one metre. This increases infiltration of water and provides a rough
surface to reduce runoff and erosion. Once grass has established itself on
this surface, the contours will completely eliminate any rainwater runoff.

Controlling drainage
Drainage is further controlled by means of 20-30m wide horizontal benches

between every 100m of sloped rehabilitation land. This reduces the
likelihood of rainwater running off in torrents.
Small rock walls called ‘rills’ are constructed around the rehabilitation area
to stop runoff from the mine washing away the topsoil or killing the grass.

Different grasses and legumes are
seeded on rehabilitation sites
according to the final land use of the
site. At the Ensham mine, grasses that
are ideal for cow fodder, such as Buffel
grass and Rhodes grass, are used
commonly, in addition to six other
species according to the soil type.
While some mines use both native and
introduced species, Ensham has found
that the introduced species quickly
take over, so native species are no
longer seeded.

Scattering of seed
Grass is seeded at the rate of 25kg of seed per hectare by a contract farmer.
The seed is spread by a fertiliser spreader on the back of a farm tractor.
Summer grasses require a certain soil temperature to strike and grow, so in

winter, 20kg per hectare of wheat seed is added to the mix. Wheat provides
cover in the winter, ready for grasses to come through in summer.
The aim is to get as much ground cover as quickly as possible so as to

reduce erosion.

Spreading of fertiliser
Fertiliser is spread at the rate of 100kg per hectare.

Wheat stubble (hay) is spread as mulch to give
the land stability and water-holding capacity
Spreading of mulch
before the grass is established. 20 six-foot round
bales of wheat hay are spread per hectare.

Early growth

Grass is seeded within a week of the site having been ripped.
Assuming good rainfall there will be cover within a month.

Mature grass, going to seed within six months of planting

Planting of trees
The question of whether to plant trees on a rehabilitation site can be complex.
Some mines are required to return a certain number of acacia and eucalypt
stems per square metre. At Ensham, where the land will ultimately be restored
as grazing land, trees are not always desired by farmers.
Trees can only be planted on this site after the grass is established.
Otherwise, trees can get out-competed by the grass from the outset or
trees can hold up the growth of the grass and result in erosion. The most
effective way to stabilise the slopes against erosion is with grasses.

Seeding trees is not as successful as growing trees from established saplings.
Irrigation through dripper lines increases the success rate in the hot climate at
the Ensham site, but this is challenging to establish over such vast areas.
Trees may become more common on rehabilitation sites if there is value

attached to them in a carbon trading scheme in the future.

Benchmark sites
Benchmark sites of undisturbed land called "analogue"
sites are used as references for rehabilitation sites.
Oresomeresources.com

Restored land
Every mine site has different conditions and requirements for rehabilitation. At the end
of the life of the Ensham mine, the site will likely be returned to grazing land.
Some other mines have a rehabilitation requirement defined as "native self sustaining
ecosystem," so any native species able to grow on that site are encouraged.
The government provides a financial incentive to rehabilitate because the bond that
mining companies are charged for their use of the land applies only to disturbed land.
Every hectare of rehabilitation reduces this bond.
At Ensham, between 150 and 200 hectares of land are rehabilitated every year. The
company set a Queensland record in 2009 with a total of 280 hectares rehabilitated.

Rehabilitation costs
Rehabilitation is a costly exercise:

$12000 /ha - Bulk earthworks to spread the spoil and establish the slope
$8800 /ha - Topsoil - hauling in a truck & spreading with a scraper or dozer
$500 /ha - Drainage works - drains, bunds, banks, diverting runoff
$500 /ha - Manure - purchase, freight and spread @ 10t/ha
$200 /ha - Fertiliser - purchase, freight and spread @ 100kg/ha
$600 /ha - Deep ripping - to 1m depth, on the contour, on 2m centres
$400 /ha - Seed - purchase, freight and spread @ 25kg/ha
$2000 /ha - Hay - purchase, freight and spread @ 20 round bales/ha
$25 000/ha - Total cost
Oresomeresources.com

GOLD REEF CITY EXAMPLE
The
End!!!!
Thank
CONTACT DETAILS:
Tamani Moyo
tmoyo@zsm.co.zw
You
0772528314

Mine Planning and Scheduling42

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MINE PLANNING AND

• IN A HIERARCHY OF OBJECTIVES, LOWER-OBJECTIVES HELP ACHIEVE HIGHER-LEVEL ONES

Compliance plans include:

4) fan stoppage plan 8) escapee map/plan.

Of these the most important is the pre-

• GEOLOGIC QUANTITIES OF MATERIAL CAN BE

(A Total After Multiplying by Discount Factors is called a Net Present Value –

NPV is now $57,100,000 instead of $1,670,000

Get more of your money faster = Better NPV!

• TECHNICAL ISSUES REQUIRING FURTHER INVESTIGATION OR

Sampling Strategies for Interpolation

The weight (influence) of a

 Kriging is named after the South African

 Kriging uses the semivariogram, in calculating

 The procedures involved in kriging incorporate

These pits expand without

What just happened to the overburden volume?

What just happened to our stripping ratio?

Conclusion – Pit Slope Makes a Big Difference in Open

• IN LONG AREA STRIP MINES WHERE THINGS BROKE DOWN TO 2 DIMENSIONS

• NOT ALL DAYLIGHTED FRACTURES WILL SLIP

Note that the toe to

Over-all Pit Slope

• QUARRIES IN STRONG ROCK CAN SUSTAIN ABOUT 80

Plan view of bench work area

• USUALLY HAVE TO DIG WHOLE BENCH TOE TO CREST

• SOME MINING DEPENDS ON SELECTING ONLY BEST ORE

• GRADE CONTROL WISE THE LIMIT IS 40 FEET

• THE MOST LIMITING FACTOR IS GRADE CONTROL

• TO STOP ROCKS FROM ROLLING NEED AT LEAST 10 FEET

About 40 feet for 37 foot length

• PITS USUALLY GO IN AT WORKING SLOPE

• AS PITS GO DEEPER THE ROADS TO THE SURFACE GET LONGER

• GREATER HAUL COST REDUCES THE EARNINGS ON A TON OF ORE

Our Frustum Cone =

The Little Cone

The Frustum Cone

The Part of that

Just One Catch

Calculation we just did

Called a Geologic Volumetric

What just happened to the overburden volume?

What just happened to our stripping ratio?

Conclusion – Pit Slope Makes a Big Difference in Open Pits

• WE WILL LOOK AT WHAT THE BASIC STEPS ARE AND AN

• GEOLOGIC AND PRELIMINARY EXPLORATION NORMALLY

• COMPUTER THEN INTERPOLATES THE SAMPLE DATA TO A

• THE BLOCKS ARE EACH ASSIGNED GEOLOGIC PARAMETERS

• POLYMETALLIC DEPOSITS CONTAIN MORE THAN ONE

-$5.40 -$5.40 -$5.40 -$5.40 $0 $0 $0

-$5.50 -$5.50 -$5.50 $45 -$5.50 -$5.50 -$5.50

Computer is programmed with a “Cone Angle” – Tells it how to

-$5.40 -$5.40 -$5.40 -$5.40 $0 $0 $0

-$5.50 -$5.50 -$5.50 $45 -$5.50 -$5.50 -$5.50

-$5.50 -$5.50 -$5.50 $0 -$5.50 -$5.50 -$5.50

Now we are ready to move on to the next block

• WE ARE WORKING ON “ULTIMATE PIT” AFTER EVERY SLOPE

• COMPUTER KEEPS DROPPING ONE LEVEL AFTER

-$5 -$5 -$5 $0 $0 $0 $0 $0 -$5 -$5

-$5 -$5 -$5 $10 $0 $0 -$0 -$5 -$5 -$5

$25 $25 -$5 -$5 -$5 $0 -$5 -$5 -$5 -$5

To catch situations like this, most floating cone

-$5 -$5 -$5 -$5 $0 $0 $0 $0 $0 $0 -$5 -$5