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MineSight® Economic Planner for Occasional Users

MineSight® Economic Planner for


Mining Software
Occasional Users

There are probably many users such as exploration geologists or underground


operations, who do not use pit calculation routines on a regular basis. However, there
may come a time when the what-if question about open pit is asked. Using MSOPIT
for the first time can be a daunting task for this group of people. So, the purpose of this
seminar workshop is to take the confusion out of running MineSight® Economic Planner
(EP) and produce a simple pit calculation. The talk will identify the necessary items for
pit calculations and illustrate how these items need to be entered in the panels to run the
MSOPIT and MSVALP routines correctly producing meaningful results. The topic does
not cover complex slopes, discounted costs, or any such advanced topics, simply a basic
pit result. In addition, the somewhat lengthy reports generated by the program will be de-
mystified to show where the required answers can be found.
MSOPIT and MSVALP
Two tasks are required before creating an open pit calculation.
Items you need to have prepared before you can start:
A zone code in your block model,
A gridded surface file of your topography for the area over the block model, and
Certain special items in your block model.
A simple open pit economic scenario may be run on your project by answering a few
simple questions. The calculations will be for a simple single slope pit, with a single
commodity being mined.
Important questions to answer:
Cost of mining,
Cost of milling,
Mill recovery percentage,
Slope of the pit wall,
Value of your commodity,
Specific gravity of ore/and waste,
Number of blocks in the pit area < 15 million,
Mining and milling rate per year, and
Zone Code
If you can answer all these questions then you can successfully run MSOPIT and MSVALP.
Most mining projects have some rock unit or zone that is a favorable ore host. Chances
are your project has this coded into to the block model.
In this example (figure 1), there is a central rock code of value 1 surrounded by a halo of
rock code value of 2. The background rock codes have a value of 3.
The topography is also shown as a gridded surface file display. The Zone code and the
gridded surface file are two of the requirements for MSOPIT.

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MineSight® Economic Planner for Occasional Users

Mining Software

Figure 1.

Surface File
A topo surface created for the area where your drilling is located is necessary. If you don’t
have one, you can use your drillhole collars to create a crude surface that serves as a starting
surface for your pit calculations. Your topo surface must be gridded into a surface file (file
type 13). The surface file should cover the extents of your block model, otherwise MSOPIT
will give you some odd looking surfaces when calculating a mined pit surface.
Block Model Items
Your block model should contain some extra values that will be used by MSOPIT and
MSVALP.
ITEM MIN MAX PRECISION
TOPO 0.00 100.00 0.100000
CUIDW 0.00 100.00 0.001000
VALB1 -25000.00 500000.00 1.000000
VALT1 -150.00 1220.00 0.010000
CUT1 0.00 20.00 1.000000
PROC1 0.00 20.00 1.000000
ROCK 0.00 100.00 1.000000
ROCKP 0.00 100.00 0.100000
PUSH1 0.00 50.00 1.000000
YEAR1 0.00 100.00 1.000000
SG 0.00 3.50 0.010000
- TOPO is a required item it comes from the surface file that was created from the 24th
topo surface. Run MineSight® Compass™ procedure P63301.dat and code this Annual
item in the block model.
Mintec
- CUIDW is the grade item for your calculations, it could be anything copper, silver, Seminar
uranium, or lead.

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MineSight® Economic Planner for Occasional Users

- VALB1 is the value per block in dollars. This item is calculated by MSOPIT.
The client must set a min and max for this item to accommodate the cost
of mining a block (the minimum value is always a negative number) to the
highest grade in your block model multiplied by the tonnes in you block
Mining Software (always a positive number).
- CUT1 is a value set by MSVALP. It is the period designation. Number 1 through X
depending on how many periods there are in your scenario.
- PROC1 is the end result of the calculations waste or mill designator. This is set by
MSVALP.
- ROCK this is the required item for the program to work with. It is a code
designating an ore type or central core of the orebody. For simplicity the entire
model contain a single code. But it is a required item.
- ROCKP not required by MSOPIT, but kind of goes in conjunction with the
ZONE item. If you are using a solid to code the blocks in your model, store the
block percentage at the same time. This percentage can be used later for reserve
calculations.
- PUSH1 is a value assigned by MSVALP based on the specific pushback period the
program assigns to a block.
- YEAR1 value is set by MSVALP. It is a code related to the year of mining. Year of
mining is related to the annual mining rate supplied to the program.
- SG is an optional value you can supply to MSOPIT from the block model. If you
have modeled an SG or tonnage factor, then this will be used by the program to
calculate the blocks tonnage.
The Questions - setting up for economic parameters.
- Cost of mining - How much per tonne will it cost to mine this ore? Open pit costs
typically run $2.00 to $3.00 per tonne
- Cost of milling - What is the processing cost per tonne? This can vary quite a bit
depending on the nature of the ore. If you are stuck for a number, $12.00 to $18.00
per tonne is a good starting point.
- Mill recovery - Milling operations are not 100% efficient so only a portion of your
product will be recovered. Typical values for gold and silver are 90 – 95%. Base
metals values are 70 – 85%
- Pit slope - A safe assumption is to use 45o, unless you have any better number.
- Commodity value - is the value (dollars per ounce or dollars per pound) normally
associated with a specific commodity being mined. The use of a predefined factor
is necessary for converting the commodity value into a dollar value per ton. This
factor is a conversion value by which your commodity price is multiplied resulting
in dollars per ton (or tonne if metric).
Some examples are shown in the table shown on the next page.

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MineSight® Economic Planner for Occasional Users

Value per Ton Imperial Ton


Units Commodity Value Factor
ounces per ton $/ounce 1.00
percent $/pound 20 Mining Software
milliounce per ton $/ounce 0.001
pounds per ton $/pound 1.00
Value per Tonne Metric Tonne
Units Commodity Value Factor
grams per tonne $/ounce 0.03215
percent $/pound 22.046
pounds per tonne $/pound 1.00
grams per tonne $/gram 1.00
Table 1. Note: Factor is a numeric value used for unit conversion.

- Specific gravity of ore/waste or tonnage factor - This is a value that the program
uses to calculate tons or tonnes contained in each block. For an imperial project, the
unit volume is cubic feet and the tonnage factor is in cubic feet per ton. A typical
value will be 11.0 - 12.0. For a metric project, the unit volume will be cubic meters. A
typical tonnage factor will be 2.7 tonnes per cubic meter.
- Number of blocks - The area in which your pit is to be calculated must not contain
more than 15 million blocks. The program has this limitation on the maximum
number of blocks. Take the number of blocks in a row and multiply it by the number
of blocks in a column. Now take this number and multiply it by the number of
benches (Blocks = rows x columns x benches).
If this number is greater than 15,000,000, the program will not be able to make the
required calculation. You will need to redo your block model so that this sum is less
than 15,000,000.
- Milling and mining rate - Finally you need to have an idea of how many tons can be
mined in a year. This can vary depending on the situation. More tons must be mined
than are milled. There are usually waste tons that are removed in order to get at the
ore bearing tons in an open pit situation. You should be mining at least twice the
number of tons that are milled.
Before starting, change the menu panels in MineSight® Compass™. The standard menu
panels do not contain the MSOPIT menu items. In MineSight® Compass™ go to the Menu
tab and open file browser. Navigate to the Winexe\Metlib directory and locate a menu
procedure ms-ep.mnu. Select and click the Open button.

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Mining Software

Figure 2.
Below is a table with the values for this project filled in. There is one item in the table that
has not been discussed yet. The name of the EP Gridded Surface file. This file is a special
gridded surface file used with MSOPIT. The first step in running MSOPIT deals with the
creation of this file.
MSOPIT Parameters
Block Model Name MSOP15.EPT
Commodity Item CUIDW
Gridded Surface File Name MSOP13.DAT
EP Gridded Surface File Name MSOP13.CPX
Cost of Mining $ 1.45
Cost of Milling $11.24
Specific gravity of Ore 2.7
Specific Gravity of Waste 2.5
Mill Recovery 87%
Slope of Pit Wall 48
Commodity Value 2.37
Factor Value 22.046
Tons Mined per Year 18,250,000
Tons Milled per Year 912,500
Number of Rows in Model 125
Number of Columns in Model 150
24th Number of Benches in Model 64
Annual Number of Blocks 1,200,00
Mintec
Block Model Zone Item Rock
Seminar
Table 2.

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Mining Software

A separate table dealing with the characteristics of the three rock types in the block model.
Block Model Zone Item Rock Zone Item Table
Ore Values Waste Values
Zone Item Value Mining Cost Milling Specific Mill Commodity Mining Specific
Cost Gravity Recovery Value Cost Gravity
1 1.45 11.24 2.7 87 2.37 1.45 2.5
2 1.45 11.24 2.8 84 2.37 1.45 2.5
3 0 1.45 2.5
4
Table 3.

MSOPIT Getting Started


The first operation is to create the MineSight® EP Gridded surface file. Select the menu
item Intialize MS-EP GSF p60110.dat

Figure 3.
This procedure will create a surface file (file 13) named MSOP13.CPX 24th
The next procedure to run is MSOPIT - design pits msep-design.pyc Annual
A panel will open looking like the following: Mintec
Seminar

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Mining Software

Figure 4. In the left side of the panel there is a directory structure. Clicking on the different items will bring
up additional defined panels in the process.
Using the answers to the key questions that have been collected in the previous table,
fill in the panels and run the program. Certain values that are reasonable choices will be
provided for items in panels that should work in most cases.

24th
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Figure 6.

Figure 7.

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Figure 8.

Figure 9.

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Fill in the headers rows in the table

Mining Software

Figure 10.

Figure 11.

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Figure 12.
Stage one is fill in some of the initial values, then proceed with the remainder of the
values.

24th
Annual Figure 13.
Mintec When all the values are filled in click the APPLY button. The word USE will appear in the
Seminar tab in the table. The values entered will now be stored in that cell of the table.

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MineSight® Economic Planner for Occasional Users

Moving on click the button for the RCK 1 WASTE button in the table. Fill in
the values shown below.

Mining Software

Figure 14.
When all the values are filled in click the APPLY button, The word USE will appear in the
tab in the table. The values entered will now be stored in that cell of the table.
Now click the RCK 2 ORE button in the table, fill in values as shown.

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Figure 15. Mintec
When all the values are filled in hit the APPLY button, The word USE will appear in the Seminar
tab in the table. The values entered will now be stored in that cell of the table.
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MineSight® Economic Planner for Occasional Users

Now click the RCK 2 WASTE button

Mining Software

Figure 16.
When all the values are filled in click the APPLY button, The word USE will appear in the
tab in the table. The values entered will now be stored in that cell of the table.
Now click the RCK 3 WASTE button.

24th
Annual Figure 17.
Mintec When all the values are filled in click the APPLY button, The word USE will appear in the
Seminar tab in the table. The values entered will now be stored in that cell of the table.

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MineSight® Economic Planner for Occasional Users

The RCK 3 ORE cell is not used because in this case Rock unit 3 in the block model is not
an ore bearing unit.
An important operation is to export these variables to a file to be later imported into
MSVALP calculations. Click the EXPORT button at the top of the page and save the
parameters as a file called “pitpars” . Mining Software
Moving on to other panels.

Figure 18.

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Figure 19. Mintec
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MineSight® Economic Planner for Occasional Users

Mining Software

Figure 20.
Fill values in as shown for Design Strategy panel

Figure 21.
The Pit surface 1 is a surface in the MineSight® EP Gridded surface file created at the
beginning of the MSOPIT procedure.
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Mining Software

Figure 22.

Figure 23.
An important step is to save your variables for future recall.
Click File | Option at the top of the page then select Manage Variables. Then click Save
current variables and type a file name in the NAME line.
You are now ready to make your first run. Go to File | Option and click Run Procedure.
The procedure will now run when the report file RPTOPT.R1 opens in the notepad
window. This indicates that the procedure has finished. The key for which you are looking
is in the final few lines of the report file. There should be some lines similar to the following: 24th
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MineSight® Economic Planner for Occasional Users

Virtual Model Setup in Phase 13


Total # of blocks: 64314
Total # of ORE blocks: 6830
Total # of FEED blocks: 6830
Mining Software Total # of WASTE blocks: 57484
Summary for Requested Area Phase # 13 Cumulative
Number of total blocks mined 5091. 49645.
Net revenue = GRO$$ - COSTS 431,938,496. 10,077,084,672.
You are looking for the statement that there is some positive net revenue. If this is the
case, then you have been successful in creating a pit that has revenue. If not, re-examine
your mining costs and revenue items checking to see that you have not made an error. One
of the next things to check is what the geometry looks like for the pit you have created.
In the Minesight® Data Manager, create a new folder. Right click on this folder and select
create a new model view. Point to your PCF and then select your Minesight® EP Gridded
surface file MSOP13.CPX. You will now be asked “Would you like to Initialize Multiple
model views?” Select YES. When the panel opens, click the box for Set Display Item same as
Surface Item. Then go to Select | Option and use the Select All item. Click OK and shortly
you will have created multiple model views. Each one of these model views can be viewed.
Double click the PIT00 view (top of the list). This should be a view of your original topo
surface. The pit surface created with MSOPIT will be in PIT01. When the BASE panel was
filled out, the results went into surface 1. Have a look at the surface PIT01.

Figure 24.
From the side view, you should see a cone-shaped pit. Determine the number of benches
in the pit. This would be the distance from the bottom of the pit to the original surface
divided by the bench height.
One of the concepts of MSOPIT and MSVALP is to divide any ultimate pit design into a
series of pit shells. The first shell being shallow progressing down to the bottom surface.
Below is a section view illustration of a series of pit shells.
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Mining Software

Figure 25.
In this example, the pit is 40 benches deep. Refer back to the section of the report file
above RPTOPT.R1 where the total number of blocks mined is 49,645. The object of this
exercise is to create 10 pit shells.
40 Benches/10 = 4 benches per shell
49,645 blocks/10 = 5,000 blocks per shell (approximately)
Remember these numbers, they will be used in the next run.
Go back and restart MSOPIT that is the MSOPIT – design pits menu item.
Go to the Design Strategy panel. Select the MultP option.

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Figure 26.
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MineSight® Economic Planner for Occasional Users

Now that the MultP panel in the list has opened, select it.

Mining Software

Figure 27.
The minimum and maximum value factor is a controlling item in the size of the pit
shells. Adjusting these values will control the size of the pit shells. Use the suggested values
to start. They should produce reasonable pit shells. Save this variable set using the File |
Manage Variables option. Run MSOPIT again using the File | Run Procedure option. An
interesting check would be to look at the 10 pit surfaces created when the run has finished.
Starting with PIT05 and going to PIT14 you should see the pit surfaces representing the
shells created.
The operation is to run MSVALP to create a schedule and reserve files of the pit surfaces
created in MSOPIT. Start up MSVALP using the menu item MSVALP – reserve and
schedules msep-evaluate.pyc.
The panel structure is very similar to what was previously done in MSOPIT.

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Figure 28.

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Mining Software

Figure 29.

Figure 30.

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Figure 31.

Figure 32.
By importing the parameters you do not have to type them in a second time.

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Figure 33.

Figure 34.

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Figure 35.

Figure 36.

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Figure 37.
This completes the panels for MSVALP. They are much the same as the panels for
MSOPIT. Once you have then filled in, save your variables by using the File | Manage
Variables option. To run MSVALP, go to File | Run Procedure. The report file that is
generated contains a schedule of the pit shells The report file is called rptval.r1 tables
10.2 and contains the summary information on the pit shells

TABLE 10.2

PIT DEST Waste Ore Profit $/tonne S.R. CUIDW


5 ALL 31,535,998 89,866,448 1,311,665,536 14.60 0.35 0.620
6 ALL 19,050,752 85,505,152 1,762,172,032 20.61 0.22 0.747
7 ALL 34,838,096 86,230,768 1,414,190,976 16.40 0.40 0.663
8 ALL 50,986,800 92,855,384 1,497,333,248 16.13 0.55 0.661
9 ALL 63,640,776 86,604,000 1,421,768,704 16.42 0.73 0.675
10 ALL 102,733,896 90,378,648 1,273,756,160 14.09 1.14 0.637
11 ALL 138,682,592 84,033,584 864,304,960 10.29 1.65 0.570
12 ALL 202,326,896 86,187,024 612,174,400 7.10 2.35 0.523
13 ALL 206,363,936 78,114,616 135,364,960 1.73 2.64 0.409
14 ALL 5,523,750 1,250,400 -1,182,471 -0.95 4.42 0.410

TOTALS 855,683,520 781,026,048 10,291,547,136 13.18 1.10 0.614

By looking at this table, you can very quickly see the results of the pit calculations. The
profit appears to decline as the pit gets deeper.

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