MINE4503 - 09 - Pit Optimisation - 010 - PRESENTATION - 01-Economic Block Models

Pit Optimisation
Economic Block Models
By
Dr. Mehmet Cigla
1
1. Basis of Calculation
2. Mining Block Value Calculation
3. Method Selection
2
3. Method Selection
3
Conversion of an ore body model into an economic block model
Economic parameters Orebody model information

• Metal price • Block location (x, y, z coordinates),
• Mining cost • grade (Cu in %, Au in oz. per tonne, etc.),
• Processing cost • rock type and
• Metallurgical recoveries • quantity of material (tonnes)
4
Economic parameters
• Metal price
• Mining cost
• Processing cost
• Metallurgical recoveries
https://www.lme.com/
5
Economic parameters
• Metal price
• Mining cost
• Processing cost
http://goldprice.com.au/
6
Economic parameters
• Metal price
• Mining cost
• Processing cost
7
3. Method Selection
8
Mining block value calculation
Economic data
Price of metal (𝒑) - $ per tonne or $ per

gram or $ per troy ounce The economic value of a mining block (𝑉) - $ per tonne of material
Marketing or refining cost (𝒓) - $ per 𝐕= 𝑝 − 𝑟 𝑔𝑦 − 𝑚 − 𝑐

tonne or $ per gram or $ per troy ounce
Mining cost (𝒎) - $ per tonne of material 𝐕 = 𝑟𝑒𝑣𝑒𝑛𝑢𝑒 − 𝑐𝑜𝑠𝑡

(ore or waste)
The economic value of a mining block (𝑉) - $
Processing cost (𝒄) - $ per tonne of ore
Metallurgical recovery (𝒚) - % 𝐕= 𝑝 − 𝑟 𝑔𝑦 − 𝑚 − 𝑐 𝑞
Adjustment in economic value of a mining block (𝑉) - $

Geologic data
Mining block grade (𝒈) – % or grams per

tonne or troy ounce per tonne
Quantity of material in mining block (𝒒) –

tonnes
9
Parameters Value
Gold Price (p) 50 $/gr Block V
Economic data Location grade quantity Unadjusted V
Marketing and 5 $/gr of gold (g/t) (t) $ $
refining cost (r) X Y Z
Price of metal (𝒑) - $ per tonne or $ per
Mining cost (m) 2 $/t of material 1 1 30 0.00 1000 -12,000 -2,000
gram or $ per troy ounce
Processing cost (c) 10 $/t of ore 2 1 30 0.00 1000 -12,000 -2,000
Marketing or refining cost (𝒓) - $ per
Metallurgical 87% 3 1 30 0.70 1000 15,405 15,405
tonne or $ per gram or $ per troy ounce
recovery (y)
4 1 30 0.00 1000 -12,000 -2,000
Mining cost (𝒎) - $ per tonne of material 1 1 20 0.00 2000 -24,000 -4,000
(ore or waste) 0.00 0.00 0.70 0.00
1000 1000 1000 1000 2 1 20 0.85 2000 42,555 42,555
Processing cost (𝒄) - $ per tonne of ore 0.00 0.85 0.15 0.93 3 1 20 0.15 2000 -12,255 -4,000
2000 2000 2000 2000
Metallurgical recovery (𝒚) - % 4 1 20 0.93 2000 48,819 48,819
0.00 0.00 0.80 0.00 1 1 10 0.00 3000 -36,000 -6,000
2000 3000 3000 3000
2 1 10 0.00 3000 -36,000 -6,000
0.00 0.00 0.70 0.00 3 1 10 0.89 3000 68,531 68,531
Geologic data 1000 1000 1000 1000
4 1 10 0.00 3000 -36,000 -6,000
-2000 -2000 15,405 -2000
Mining block grade (𝒈) – % or grams per
tonne or troy ounce per tonne 0.00 0.85 0.15 0.93
𝐕= 𝑝−𝑟 𝑔𝑦 −𝑚−𝑐 𝑞
2000 2000 2000 2000
Quantity of material in mining block (𝒒) – -4000 42,555 -4000 48,819 $ $ 𝑔𝑟 $ $
𝐕= 50 −5 𝑥 0.15 𝑥 0.87 − 2.00 − 10.00 𝑥 2000 = $ − 𝟏𝟐, 𝟐𝟓𝟓
tonnes 0.00 0.00 0.80 0.00 𝑔𝑟 𝑔𝑟 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒
2000 3000 3000 3000 $

𝐕 = −2.00 𝑥 2000 = $ − 𝟒, 𝟎𝟎𝟎
-6000 -6000 68,531 -6000 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒
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Economic data
Price of primary and secondary metal (𝒑1 and 𝒑2) The economic value of a mining block (𝑉) - $ per tonne of material
- $ per tonne or $ per gram or $ per troy ounce
Marketing or refining cost of primary and 𝐕= 𝑝 − 𝑟 𝑔𝑦 − 𝑚 − 𝑐

secondary metal (r1 and r2) - $ per tonne or $ per
𝐕= 𝑝1 − 𝑟1 𝑔1 𝑦1 + 𝑝2 − 𝑟2 𝑔2 𝑦2 − 𝑚 − 𝑐
Mining cost (𝒎) - $ per tonne of material (ore or
waste)
Processing cost (𝒄) - $ per tonne of ore

Metallurgical recovery of primary and secondary

metal (y1 and y2) - % 𝐕= 𝑝1 − 𝑟1 𝑔1 𝑦1 + 𝑝2 − 𝑟2 𝑔2 𝑦2 − 𝑚 − 𝑐 q

Geologic data
Mining block grade of primary and secondary

metal (g1 and g2) – % or grams per tonne or troy
ounce per tonne
Quantity of material in mining block (𝒒) – tonnes
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If 𝑔𝑖 represents the grade of metal 𝑖, 𝑝𝑖 represents the price of 𝑔1 𝑝1 +𝑔2 𝑝2 + 𝑔3 𝑝3 + ⋯ σ𝑖 𝑔𝑖 𝑝𝑖

𝒈𝒆 = =
Economic data metal 𝑖, where 𝑖 = 1,2,3, ⋯, then the equivalent grade in 𝑝𝑒 𝑝𝑒
terms of a metal of interest is:
Price of primary and secondary metal (𝒑1 and 𝒑2) pe is the price of the primary mineral
The economic value of a mining block (𝑉) - $ per tonne of material
Marketing or refining cost of primary and
secondary metal (r1 and r2) - $ per tonne or $ per
Mining cost (𝒎) - $ per tonne of material (ore or

𝐕= 𝑝𝑒 − 𝑟𝑒 𝑔𝑒 𝑦 − 𝑚 − 𝑐
waste)
Processing cost (𝒄) - $ per tonne of ore The economic value of a mining block (𝑉) - $

metal (y1 and y2) - % 𝐕= 𝑝𝑒 − 𝑟𝑒 𝑔𝑒 𝑦 − 𝑚 − 𝑐 q

Geologic data

ounce per tonne
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Economic data
Price of primary and secondary metal (𝒑1 and 𝒑2)

Parameters Value
Marketing or refining cost of primary and
secondary metal (r1 and r2) - $ per tonne or $ per Mining block grade Copper (gCu) 0.5843%
gram or $ per troy ounce Gold (gAu) 0.345 gr/t
Mining cost (𝒎) - $ per tonne of material (ore or Mining block – Quantity of material 1000 tonnes
waste) Copper price (pCu) $5000 per tonne of Cu
Processing cost (𝒄) - $ per tonne of ore Gold price (pAu) $50.00 per gram of Au
Marketing and refining cost of copper (rCu) $1000.00 per tonne of Cu
Marketing and refining cost of gold (rAu) $5.00 per gram of Au
metal (y1 and y2) - %
Mining cost (m) $2.00 per tonne of material
Processing cost (c) $10.00 per tonne of ore
Geologic data Metallurgical recovery of copper (yCu) 90%
Metallurgical recovery of gold (yAu) 75%
ounce per tonne
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Parameters Value
𝐕= 𝑝1 − 𝑟1 𝑔1 𝑦1 + 𝑝2 − 𝑟2 𝑔2 𝑦2 − 𝑚 − 𝑐
Mining block grade Copper (gCu) 0.5843%
Gold (gAu) 0.345 gr/t
𝐕= 𝑝𝐶𝑢 − 𝑟𝐶𝑢 𝑔𝐶𝑢 𝑦𝐶𝑢 + 𝑝𝐴𝑢 − 𝑟𝐴𝑢 𝑔𝐴𝑢 𝑦𝐴𝑢 − 𝑚 − 𝑐
Mining block – Quantity of material 1000 tonnes
Copper price (pCu) $5000 per tonne of Cu
Gold price (pAu) $50.00 per gram of Au
Metallurgical recovery of copper (yCu) 90%
The economic value of a mining block (𝑉) - $ per tonne of material
$ $ 𝑡 𝑜𝑓 𝐶𝑢 $ $ 𝑔𝑟 𝑜𝑓 𝐴𝑢 $ $ $
𝐕= 5000 − 1000 𝑥 0.005843 𝑥 0.90 + 50 −5 𝑥 0.345 𝑥 0.75 − 2.00 − 10.00 𝐕 = 20.68
𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝐶𝑢 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝐶𝑢 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒 𝑔𝑟 𝑜𝑓 𝐴𝑢 𝑔𝑟 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒
$ $ 𝑡 𝑜𝑓 𝐶𝑢 $ $ 𝑔𝑟 𝑜𝑓 𝐴𝑢 $ $
𝐕= 5000 − 1000 𝑥0.005843 𝑥 0.90 + 50 −5 𝑥 0.345 𝑥 0.75 − 2.00 − 10.00 x 1000 tonne 𝐕 = $20,680
𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝐶𝑢 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝐶𝑢 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒 𝑔𝑟 𝑜𝑓 𝐴𝑢 𝑔𝑟 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒
𝐕 = $20,680
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Parameters Value
𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝐶𝑢 $ 𝑔𝑟 𝑜𝑓 𝐴𝑢 $
𝑔𝐶𝑢 𝑝𝐶𝑢 +𝑔𝐴𝑢 𝑝𝐴𝑢 0.005843 𝑥 5000 + 0.345 𝑥 50 𝑡 𝑜𝑓 𝐶𝑢
𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝐶𝑢 𝑡 𝑜𝑓 𝑜𝑟𝑒 𝑔𝑟 𝑜𝑓 𝐴𝑢
𝒈𝒆𝑪𝒖 = 𝒈𝒆𝑨𝒖 = 𝒈𝒆𝑪𝒖 = 0.009293 𝒈𝒆𝑪𝒖 = 0.9293%
𝑝𝐶𝑢 $ 𝑡 𝑜𝑓 𝑜𝑟𝑒
5000
𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝐶𝑢
$ $ 𝑡 𝑜𝑓 𝐶𝑢 $ $
𝐕= 𝑝𝑒 − 𝑟𝑒 𝑔𝑒 𝑦 − 𝑚 − 𝑐 q 𝐕= 5000 − 1000 𝑥 0.009293 𝑥 0.90 − 2.00 − 10.00 x 1000
𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝐶𝑢 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝐶𝑢 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒
𝐕 = $21,455
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Parameters Value
𝑔𝑟 𝑜𝑓 𝐴𝑢 $ 𝑡 𝑜𝑓 𝐶𝑢 $ 𝑔𝑟 𝑜𝑓 𝐴𝑢
𝑔𝐴𝑢 𝑝𝐴𝑢 +𝑔𝐶𝑢 𝑝𝐶𝑢 0.345 𝑥 50 + 0.005843 𝑥 5000
𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒 𝑔𝑟 𝑜𝑓 𝐴𝑢 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝐶𝑢 𝒈𝒆𝑨𝒖 = 0.9293
𝒈𝒆𝑨𝒖 = 𝒈𝒆𝑨𝒖 = 𝑡 𝑜𝑓 𝑜𝑟𝑒
𝑝𝐴𝑢 $
50
𝑔𝑟 𝑜𝑓 𝐴𝑢
𝐕= 𝑝𝑒 − 𝑟𝑒 𝑔𝑒 𝑦 − 𝑚 − 𝑐 q
$ $ 𝑔𝑟 𝑜𝑓 𝐴𝑢 $ $
𝐕= 50 −5 𝑥 0.9293 𝑥 0.75 − 2.00 − 10.00 x 1000
𝑔𝑟 𝑜𝑓 𝐴𝑢 𝑔𝑟 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒 𝑡𝑜𝑛𝑛𝑒 𝑜𝑓 𝑜𝑟𝑒
𝐕 = $19,364
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Parameters Value
Mining block grade Copper (gCu) 0.5843% 𝐕= 𝑝1 − 𝑟1 𝑔1 𝑦1 + 𝑝2 − 𝑟2 𝑔2 𝑦2 − 𝑚 − 𝑐
𝐕= 𝑝𝐶𝑢 − 𝑟𝐶𝑢 𝑔𝐶𝑢 𝑦𝐶𝑢 + 𝑝𝐴𝑢 − 𝑟𝐴𝑢 𝑔𝐴𝑢 𝑦𝐴𝑢 − 𝑚 − 𝑐
Copper price (pCu) $5000 per tonne of Cu 𝐕 = $20,680
𝑔𝐶𝑢 𝑝𝐶𝑢 +𝑔𝐴𝑢 𝑝𝐴𝑢
Mining cost (m) $2.00 per tonne of material 𝒈𝒆𝑪𝒖 =
𝑝𝐶𝑢
Metallurgical recovery of copper (yCu) 90% 𝐕= 𝑝𝑒 − 𝑟𝑒 𝑔𝑒 𝑦 − 𝑚 − 𝑐 q
𝐕 = $21,455
𝑔𝐴𝑢 𝑝𝐴𝑢 +𝑔𝐶𝑢 𝑝𝐶𝑢

𝒈𝒆𝑨𝒖 =
𝑝𝐴𝑢
𝐕= 𝑝𝑒 − 𝑟𝑒 𝑔𝑒 𝑦 − 𝑚 − 𝑐 q
𝐕 = $19,364
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TOPO = percentage of topo
CU = Cu%
MO = Mo%
EQCU = Equivalent Cu%

CLASS =
SG =
ROCK ➔ 11, 12, 13

Rock 1 = 11
Rock 2 = 12
Rock 3 = 13
ALT ➔ 1, 2, 3, 4, 5, 6 ALT1 = 1 (Primary Sulfide 1)

ALT2 = 2 (Primary Sulfide 2)
ALT3 = 3 (Primary/Secondary Sulfide (Transition Zone)
ALT4 = 4 (Secondary Sulfide)
ALT5 = 5 (Mixed Sulfide/Oxide)
ALT6 = 6 (Oxide)
ZONE ➔ 1, 2, 3, 4 ZONE 1 = 1 It defines the region what pit

ZONE 2 = 2 slope angle should be applied
ZONE 3 = 3 depending on the rock mass
ZONE 4 = 4 properties.
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Add a new item - BEV
Select Model ➔ Model Manager
Edit the block model as shown.
19
Select Add ➔ Add item.
Type BEV and define min, max and precision.
20
Save the block model.
Click OK to continue.
Exit the model manager.
21
Refresh CU_msop15.eng model view as shown.
Query one item as shown.
22
Select View ➔ Items... And then select BEV and clock OK to continue.
23
Populating BEV item.

Create a new folder in your MSOP project.
Select Model ➔ Model Calculation Tool.
24
Select New and enter the following settings.
Model Calculation Tool will become active as shown below..
25
Save the file.
26
Select New and enter the following settings.
Make sure that write option is selected for BEV item.
27
Enter the following code.
# -------------------------------------------------------------------------------------------------
# Price
Cu_price=1 # $/t
Mo_price=1 # $/t
#Metallurgical Recoveries
CuR=1
MoR=1
Current numbers must be entered.
#Marketing and refining cost
CuMRC=1 # $/t
MoMRC=1 # $/t
#Mining and Processing costs

MC=1 # $/t - mining cost
PC=1 # $/t - processing
#BEV Equation
$(BEV)=(Cu_price-CuMRC)*($(CU)/100)*CuR+( Mo_price-MoMRC)*($(MO)/100)*MoR - MC - PC
28
Verify syntax as shown below.
Run the set-up t populate BEV item.
29
BEV item will be populated.
As part of your assignment, the provided numbers (in the assignment question) for
price, recoveries and costs must be entered.
30
Populating EQCU item.
(Cu_grade)(Cu_price) + (Mo_grade)(Mo_price)
EQCU =
Cu_price
Create a new set-up – EQCU_calculation.
Select the following items as part of Python code.
Make sure that write option is selected for BEV item.
31
Enter the following code.
(Cu_grade)(Cu_price) + (Mo_grade)(Mo_price)
EQCU =
Cu_price
# Main Script
Cu_price=1 #$/tonne Current numbers

Mo_price=1 #$/tonne must be entered.
$(EQCU)=($(CU)*Cu_price+$(MO)*Mo_price)/Cu_price
32
Verify syntax..
Run the set-up t populate EQCU item.
33
EQCU item will be populated.
34
3. Method Selection
35
The following figure shows an east-west cross section of an ore 𝐕= 𝑝 − 𝑟 𝑔𝑦 − 𝑚 − 𝑐
deposit. The value within each block represents the contained
copper grades in percent (%).
$ $ 𝟎 𝟗𝟎 $ $
𝐕= 𝟒𝟎𝟎𝟎 − 𝟓𝟎𝟎 × × − 𝟏𝟎 − 𝟏𝟓
tonne of Cu tonne of Cu 100 100 tonne of ore tonne of ore
0.00 2.15 0.08 0.05 0.00 0.00 0.05
V = $ − 10.00
0.00 2.25 2.15 1.15 0.00
3.13 1.15 0.78

$ $ 𝟐. 𝟏𝟓 𝟗𝟎 $ $
Copper price (pCu) $4000 per tonne of Cu 𝐕= 𝟒𝟎𝟎𝟎 − 𝟓𝟎𝟎 × × − 𝟏𝟎 − 𝟏𝟓
𝐕 = $𝟒𝟐. 𝟕𝟑

$ $ 𝟎. 𝟎𝟖 𝟗𝟎 $ $
𝐕= 𝟒𝟎𝟎𝟎 − 𝟓𝟎𝟎 × × − 𝟏𝟎 − 𝟏𝟓
𝐕= 𝑝 − 𝑟 𝑔𝑦 − 𝑚 − 𝑐 𝐕 = $ − 22.48 𝐕 = $ − 𝟏𝟎. 𝟎𝟎
Price of metal (𝒑) - $ per tonne or $ per gram or $ per troy ounce
Marketing or refining cost (𝒓) - $ per tonne or $ per gram or $ per troy ounce
-10.00 42.73 -10.00 -10.00 -10.00 -10.00 -10.00
Mining cost (𝒎) - $ per tonne of material (ore or waste)
Processing cost (𝒄) - $ per tonne of ore -10.00 45.88 42.73 11.23 -10.00
Metallurgical recovery (𝒚) - %
73.60 11.23 -10.00
Mining block grade (𝒈) – % or grams per tonne or troy ounce per tonne
36
𝐕= 𝑝 − 𝑟 𝑔𝑦 − 𝑚 − 𝑐 Point 1: (0.08, -22.48)
𝐕 = 31.5𝐠 − 25 = 0
Point 2: (2.25, 45.88)
𝑝 − 𝑟 𝑔𝑦 − 𝑚 − c = 0 25
𝐠= = 0.7937
𝑚+𝑐 31.5
𝑔=
𝑝−𝑟 𝑦
$ $
𝟏𝟎 + 𝟏𝟓
𝑔= tonne of ore tonne of ore
$ $
𝟒𝟎𝟎𝟎 − 𝟓𝟎𝟎 × 0.90
tonne of Cu tonne of Cu
𝑔 = 0.007937 𝒈 = 𝟎. 𝟕𝟗𝟑𝟕%
0.00 2.15 0.08 0.05 0.00 0.00 0.05

𝑦2 − 𝑦1
0.00 2.25 2.15 1.15 0.00 𝑦 − 𝑦1 = 𝑥 − 𝑥1
𝑥2 − 𝑥1
3.13 1.15 0.78
45.88 − −22.48
𝑦 − −22.48 = 𝑥 − 0.08
2.25 − 0.08
-10.00 42.73 -10.00 -10.00 -10.00 -10.00 -10.00
𝑦 + 22.48 = 31.50 𝑥 − 0.08
-22,48
-10.00 45.88 42.73 11.23 -10.00 𝑦 = 31.5𝑥 − 2.52 − 22.48
73.60 11.23 -10.00 𝑦 = 31.5𝑥 − 25
𝑽 = 31.5𝒈 − 25
37
Breakeven cut-off grade identifies mining blocks as ORE and WASTE
blocks
• A mining block with grade greater than or equal to breakeven cut-

off grade is identified as an ore block
• A mining block with grade less than breakeven cut-off grade is

identified as a waste block
Decrease in metal price ➔ Increase in breakeven cut-off grade

Decrease in the size of the ultimate pit limit
Increase in metal price ➔ Decrease in breakeven cut-off grade

Increase in size of the ultimate pit limit
38
Breakeven stripping ratio (ratio of the quantity of waste to the quantity
of ore) and grade
If cost of mining waste (SC) is = $10 per tonne of waste…
How many tonnes of overlying waste would be supported by a mining

block with grade 𝑔 = 2.25% and value 𝑉 = $45.88 per tonne of ore?
𝑉
𝐵𝐸𝑆𝑅 = 0.00 2.15 0.08 0.05 0.00 0.00 0.05
𝑆𝐶
0.00 2.25 2.15 1.15 0.00
$
𝟒𝟓. 𝟖𝟖 3.13 1.15 0.78
𝐵𝐸𝑆𝑅 = tonne of ore
$
𝟏𝟎
tonne of 𝑤𝑎𝑠𝑡𝑒
-10.00 42.73 -10.00 -10.00 -10.00 -10.00 -10.00
-22,48
tonne of 𝑤𝑎𝑠𝑡𝑒
𝐵𝐸𝑆𝑅 = 𝟒. 𝟓𝟖𝟖 -10.00 45.88 42.73 11.23 -10.00
tonne of ore
73.60 11.23 -10.00
Increase in metal grade ➔ Increase in breakeven stripping ratio

Increase in the size of the ultimate pit limit
Decrease in metal price ➔ Decrease in breakeven stripping ratio

Decrease in the size of the ultimate pit limit
39
40
41

MINE4503 - 09 - Pit Optimisation - 010 - PRESENTATION - 01-Economic Block Models

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MINE4503 - 09 - Pit Optimisation - 010 - PRESENTATION - 01-Economic Block Models

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Pit Optimisation

Economic Block Models

Economic parameters Orebody model information

Price of metal (𝒑) - $ per tonne or $ per

Marketing or refining cost (𝒓) - $ per 𝐕= 𝑝 − 𝑟 𝑔𝑦 − 𝑚 − 𝑐

Mining cost (𝒎) - $ per tonne of material 𝐕 = 𝑟𝑒𝑣𝑒𝑛𝑢𝑒 − 𝑐𝑜𝑠𝑡

Metallurgical recovery (𝒚) - % 𝐕= 𝑝 − 𝑟 𝑔𝑦 − 𝑚 − 𝑐 𝑞

Adjustment in economic value of a mining block (𝑉) - $

Mining block grade (𝒈) – % or grams per

Quantity of material in mining block (𝒒) –

2000 3000 3000 3000 $

Marketing or refining cost of primary and 𝐕= 𝑝 − 𝑟 𝑔𝑦 − 𝑚 − 𝑐

Processing cost (𝒄) - $ per tonne of ore

Metallurgical recovery of primary and secondary

Adjustment in economic value of a mining block (𝑉) - $

Mining block grade of primary and secondary

Quantity of material in mining block (𝒒) – tonnes

If 𝑔𝑖 represents the grade of metal 𝑖, 𝑝𝑖 represents the price of 𝑔1 𝑝1 +𝑔2 𝑝2 + 𝑔3 𝑝3 + ⋯ σ𝑖 𝑔𝑖 𝑝𝑖

Mining cost (𝒎) - $ per tonne of material (ore or

Metallurgical recovery of primary and secondary

Adjustment in economic value of a mining block (𝑉) - $

Mining block grade of primary and secondary

Quantity of material in mining block (𝒒) – tonnes

Price of primary and secondary metal (𝒑1 and 𝒑2)

Quantity of material in mining block (𝒒) – tonnes

The economic value of a mining block (𝑉) - $ per tonne of material

Adjustment in economic value of a mining block (𝑉) - $

𝑔𝐴𝑢 𝑝𝐴𝑢 +𝑔𝐶𝑢 𝑝𝐶𝑢

TOPO = percentage of topo

EQCU = Equivalent Cu%

ROCK ➔ 11, 12, 13

ALT ➔ 1, 2, 3, 4, 5, 6 ALT1 = 1 (Primary Sulfide 1)

ZONE ➔ 1, 2, 3, 4 ZONE 1 = 1 It defines the region what pit

Add a new item - BEV

Select Model ➔ Model Manager

Edit the block model as shown.

Select Add ➔ Add item.

Type BEV and define min, max and precision.

Save the block model.

Exit the model manager.

Refresh CU_msop15.eng model view as shown.

Query one item as shown.

Populating BEV item.

Select Model ➔ Model Calculation Tool.

Select New and enter the following settings.

Model Calculation Tool will become active as shown below..

Save the file.

Select New and enter the following settings.

Make sure that write option is selected for BEV item.

Enter the following code.

#Mining and Processing costs

Verify syntax as shown below.

Run the set-up t populate BEV item.

BEV item will be populated.

Populating EQCU item.

Create a new set-up – EQCU_calculation.

Select the following items as part of Python code.

Make sure that write option is selected for BEV item.

Enter the following code.

Cu_price=1 #$/tonne Current numbers

Run the set-up t populate EQCU item.

EQCU item will be populated.