Mining Dilution and Losses in Underground Mining

Resource models and the Ore Reserve estimation procedure are different for
open-pit and underground mints. To a scale of tens of metres, the location and
spatial distribution of values may be unimportant in an open pit resource model.
Provided the pins located to access the mineralised zone, any valuable material
can be identified by grade control sampling and then marked out for mining. Thus,
the emphasis in open-pit resource modelling is on the global accuracy of estimates
of tonnes and grade and internal variability at a scale that might affect pit
optimisation, so a statistical approach is often appropriate.

The mining engineer will design slopes which have geometric limitations dictated
by geotechnical factors, the economic spacing and length of production blastholes,
or the need to combine blocks of `ore' and `waste' into mineable units. When these
shapes are overlaid on the resource model, the resource grade is diluted and some
of the resource is lost. The resource model will contain internal dilution according
to the model block size (based on the assumed Selective Mining Unit) which may
or may not accord with the engineer's proposed method.

Proponents of geostatistics sometimes claim that a resource model inherently

contains an appropriate allowance for internal and edge dilution. This is an obvious
fallacy; the dilution estimate must derive from mining and geotechnical
considerations. A resource model which purports to include dilution provides an
undefined starting point for the Ore Reserve estimator, who must somehow
`remove' the diluent material from the model before adding back mining dilution.
This is an impractical task, so the only satisfactory approach is to refuse to accept
such a model as a basis for an underground mine ore reserve.

In many mines, ore from a number of sources is stockpiled and blended before
treatment, making reconciliations difficult or impossible. Assuming reconciliation is
possible, the resulting calculations of dilution and recovery may reflect on the
accuracy of the Mineral Resource and Ore Reserve estimates rather than on actual
mining performance. As in open pit mining there are several levels of reconciliation
that may be of interest as performance measures.

When overbreak occurs beyond the slope design line, it may introduce unexpected
high-grade ore, low-grade, waste or a process contaminant such as graphite in a
contact shear zone. Thus there is usually no direct correlation between
measurements of slope overbreak and the variation of recovered metal from the
treatment plant. Expressed globally in relation to the resource estimate, 'dilution' is
an experience-based adjustment that takes account of a number of subjectively
assessed variables.

The availability of digital resource models has led some practitioners to calculate
diluted grades based on an assumed average thickness of overbreak. For
example, 0.5m on each wall of a 3m wide stope represents a 33 per cent tonnage
increase. Grades from assays or composites within this envelope are used to
interpolate a diluent grade. Caution is needed, as the search ellipsoid used for `ore'
may have already considered this material, or conversely the grade of this material
may be related to the sample grades lying outside the diluent boundaries in `ore' or
`waste'.

In practice, slope overbreak usually takes an arcuate shape, deepest at the mid-
point of the slope and minimal al the pillar sides. In large open stopes (∼20m
spans), the `normal' arch may be 3m deep at mid-span. If drill assays outside the
stope (or ore) limits are statistically analysed to calculate diluent grade, then this
shape must be allowed for. The shape of overbreak may be predicted using
techniques such as the Radius Factor

Dilution is greatest in narrow ore zones with sharp contacts, and least in massive
ore with gradational boundaries. Dilution from backfill may be significant. If pillars
are to be extracted against freestanding cemented fill in open slopes, then the
stability and likely frequency of fill failure must be considered, even if rigorous
control procedures are in place. In cut-and-fill mining, more dilution may be
experienced if the slope miners are paid on a piecework (tonnage) contract
because they may dig deeper into the fill floor.

The conversion of a Mineral Resource estimate to an Ore Reserve estimates for an

underground mine requires consideration of mining dilution and mining recovery.
These two variables are the result of a multitude of factors that are difficult to
assess. Thus careful measurement, management, judgment, experience and a
thorough understanding of the proposed mining method are required. The use of
`textbook factors' by inexperienced practitioners should he avoided. It is possible
that a `Competent Person' for the purpose of preparing a Mineral Resource
estimate may not he 'competent' to prepare an ore reserve estimate for the same
deposit.