MEDSYSTEM ®

Open Pit Optimization

Workbook

Mintec, Inc.
March 1999
Table of Contents
Section 1—Introduction
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-1

Section 2—Dipper Pit Analysis / Overview

Economic Parameters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1
Variations of Dipper Pit Designs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1
Brief description of the Floating Cone (FC) method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-4
Brief description of the Lerchs-Grossmann (LG) method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-4
DIPPER Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-4
Program Limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-5
Other Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-6

Section 3—Training Project / Outlines

Section 4—Familiarization with Deposit

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-1
Deposit and File Surface Topography Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-1
Familiarization Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-5
Exercise 1 - Viewing the Topography in MineSight® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-5
Exercise 2 Visualizing the Model Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-7
Exercise 3 Calculate Geologic Reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-10
Exercise 4 Edit model data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-19

Section 5—Floating Cone Example Using Grade Item

Floating Cone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-1

Section 6—Varying Mining Cost by Bench

Mining Costs By Bench . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-1

Section 7—Dollar/Block Approach Using Lerchs-Grossmann Method

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-1

Section 8—Dollar/Block Approach with LG and Reblocking

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-1

Section 9—Dollar/Block Approach with Reblocked LG and Complex Slopes

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-1
Complex Slopes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-1

Section 10—Dollar/Block Approach Varying Ore Processing and Recovery by Alteration type
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10-1

Section 11—Create A Net Value Dipper Model From The Block Model With A User Subroutine

Section 12—Adding Mining Restrictions to Dipper Using String Boundary

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12-1

Appendix
Floating Cone Economic Evaluation Detailed Example / Calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . a-1
2-D Lerchs-Grossmann Economic Evaluation Detailed Example . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a-9
Floating Cone vs. Lerchs-Grossmann (2-D) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a-12
Technical Papers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a-16
 Section 1—Introduction

Section 1—Introduction

Summary This 3 days training course will focus on the open pit mine optimization
capabilities of MEDSYSTEM®. During these days we will do the following
tasks:

OVERVIEW OF DIPPER PIT ANALYSIS IN MEDSYSTEM®

(Section 2)

1. We will define different parameters used in programs.

2. Describe the floating cone and Lerchs -Grossmann approach
3. List and comment on programs available
4. Discuss various other considerations

FAMILIARIZATION with DEPOSIT (Section 4)

1. This training course will start with a block model already built.
Trainees will display surface topo, bench maps and vertical
sections using MINESIGHT ® to become familiar with the deposit’s
grade distribution, limits, depth of cover to ore, etc.
2. Trainees will calculate bench-by-bench geologic reserves and a
histogram of copper equivalent grades.

DIPPER PIT ANALYSIS (Sections 5-12)

1. Trainees will determine economic final pit limits through the

generation and analysis of a series of DIPPER Pit shells based on
copper price. We will do various exercises involving the floating
cone approach, the Lerchs-Grossmann approach, variable and
complex slopes, GRADE and DOLLAR/BLOCK items, and Re-
blocking.
2. The main MEDSYSTEM ® programs the trainees will use are:
M650ED - Digitize and Display data
M717-M729- DIPPER programs
M806V1 - DIPPER Pit Analysis and preliminary scheduler
MS2 - 3D display

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Section 1—Introduction

Page 1—2 Open Pit Optimization Training Workbook

 Section 2—Dipper Pit Analysis

Section 2—Dipper Pit Analysis / Overview

Economic pit designs are determined in MEDSYSTEM® using the DIPPER
set of programs where DIPPER stands for Dynamic Interactive Pit Planner
and EvaluatoR. The economic designs are referred to as DIPPER pits and
these are usually used as guidelines for more detailed designs that account
for roads, minimum mining widths, etc.

Economic The economic parameters considered in determining the DIPPER pits are:
Parameters
A Cost to mine waste
B Cost to mine and process ore (feed to the mill)
C Net value of recovered product
D (net value = (price - treatment costs) * Recovery)

A net value and processing cost of leach material can also be included if
desired as well as cost of overburden waste.

These parameters are used to determine a profit figure for each block in the
model. Waste blocks will have negative profit figures and ore blocks will
have positive profit figures. These block by block profit figures in
combination with allowable pit slopes are used to determine the economic
pit limits on a whole block basis using either a floating cone or Lerchs-
Grossmann evaluation procedure.

Variations of The pit designer has several options available for:

Dipper Pit Designs
A Handling the economics
B Handling the slope criteria
C Doing the evaluation
Handling the
Economics
The economics can be handled in the following ways:

1. Let the pit design program calculate the block by block profit figures
based on the GRADE of the block.
2. Precalculate the block by block profit figures prior to running the pit
design program and store that information as either DOLLAR/TONNE
values or DOLLAR/BLOCK values.
3. Use %ORE as block values.

Guidelines for selecting which approach to use are as follows:

1. Use GRADE (%grade, oz/t or gr/t) approach when:

a. density is constant for all materials.

b. stripping cost is either constant for all waste blocks or varies only by
depth.
c. mining and processing cost is either constant for all ore blocks or
varies only by depth.

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Section 2—Dipper Pit Analysis

2a. Use DOLLAR/TONNE (net or gross value) approach when:

a. density is constant for all materials.

b. stripping cost varies for waste blocks by factors other than depth.
c. mining and processing cost varies for ore blocks by factors other
than depth.

2b. Use DOLLAR/BLOCK (net or gross value) approach when:

a. density varies by material type.

b. stripping cost varies as in case 2.
c. mining and processing cost varies as in case 2.

3. Use %ORE approach when :

a. a percentage of each block is ore .

b. costs are constant.

The simplest approach is the GRADE approach with the constant density
and estimated cost values applied throughout the model. This approach also
allows one to generate a series of DIPPER pits based on different economic
criteria in one run of the pit design program.

The second approach handles the more detailed situation where costs and
density vary depending on the location of the block, type of material,
alteration, etc. Here the user must specify the profit calculation equations
and the criteria identifying the blocks to which each equation applies. This is
usually done by using either program M612RP(Calculations for Mine Model
File) or by writing a user subroutine in FORTRAN and then interfacing the
subroutine with the model through Program M612V1. These two programs
store the block profit values in File 15. They are then transferred to a
condensed block file known as the B-File prior to running the pit
optimization program. One can bypass the storage of the block profit values
in File 15 and write them directly to the B-File by using Program M718V2
with a User Subroutine. MEDSYSTEM® also provides a general purpose
value calculation program (NETDIP) which also condenses the model.

The last approach (%ORE) can be used for coal and industrial minerals.

Handling Pit Slope Pit slope criteria can be input in three ways:
Criteria
A Constant slope throughout the pit
B Slopes that vary laterally but not vertically by sector
C Slopes that vary both laterally and vertically by sector

The constant slope case is the simplest where the user just enters the slope
angle to use for the entire pit.

For slopes that vary laterally only, the user must specify an azimuth and a
slope for each point where the slope changes. The slope will gradually
increase (or decrease) until it reaches the next point specified. To keep the

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 Section 2—Dipper Pit Analysis

slope constant around most of the pit, allow a narrow range of azimuths in
which the slope can change to the new value. For example, suppose we want
the pit to have a slope of 38° on one side and 43° on the other, like the
figure below:

PIT PLAN VIEW

If we only put the two azimuths in the run file:

2 no. of azimuths
40 160 azimuths
43 38 new slopes at azimuths

then starting at the azimuth of 40°, the slope decreases as we move to an

azimuth of 160°, where the slope is to be 38°. This means that between 40°
and 160°, the slope will steadily decrease from 43° to 38°. As we move
clockwise from the azimuth of 160° to 40°, the slope will steadily increase
from 38° to 43°.To keep each slope constant in its sector, allow a small
transition zone near 40° azimuth and another near 160° azimuth where the
slope will change. If we allowed a 20° transition zone at each of the points,
these lines would be included in the run file:

4 no. of azimuths
30 50 150 170 azimuths
43 38 38 43 new slopes at azimuths

This way, the pit slope would change from 43° to 38° between the azimuths
of 30° and 50°. It would be a constant 38° between the azimuths of 50° and
150° and then increase to 43° in the sector between the azimuths of 150° and
170°. Finally, the slope would be a constant 43° between the azimuths of
170° and 30°.

For slopes that vary both laterally and vertically it is necessary to define the
lateral sector boundaries and the surfaces (or elevations) defining the vertical
boundaries. This is usually done in a plan view VBM from which the
necessary slope control and slope coding files are generated. This complex
slope option greatly increases the run time of the pit design program.

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Section 2—Dipper Pit Analysis

Evaluation Procedure For any of the economic and slope handling options listed above, the
Options economic pit limits can be determined using either the Floating Cone
technique or the Lerchs-Grossmann technique. Different versions of Pit
Design Program 720 handle the options as follows:

A Program M720V1 - Floating Cone with any of the economic options

and slopes that are either constant or vary laterally only.
B Program M720V2 - Floating Cone with any of the economic options
and slopes that vary laterally and vertically
C Program M720V3 - Lerchs-Grossmann with any of the economic
options and slopes that are either constant or vary laterally only.
D Program M720V4 - Lerchs-Grossmann with any of the economic
options and slopes that vary laterally and vertically.

Brief description The concept of the floating cone is to superimpose a frustum of an inverted
of the Floating cone into the ore body model on an “ore” block in such a way that all the
Cone (FC) method blocks that fall within its boundaries can be economically analyzed. If
mining the material inside the cone results in a positive money return, the
ore block at the cone bottom together with all other blocks within the cone
are mined. Otherwise, the blocks are not mined.

By checking one ore block at one time, e.g. one cone at one time, all the
cones with positive money returns are mined. The union of the mined cones
forms the designed pit.

The advantage of the floating cone method is its lack of capabilities

detecting the “shared” contributions among two or more ore blocks.
Therefore, both over-mining and under-mining situations may occur with the
floating cone method.

Brief description This method is based on graph theory which deals with a systematic study of
of the Lerchs- the properties of graphs. The word “Graph” is a generic name used to
Grossmann (LG) describe a group of points joined either by lines or points. In the LG method,
method each block in the 3D model becomes one “point”. The allowable mining
pattern is represented by “arrows”. The decision of mining is not made at
the magnitude of one cone rather at the magnitude of one block. Therefore,
even if the economic value of an ore block is exhausted, this block makes its
contribution toward the overall mineable blocks according to the allowable
mining pattern.

By checking one block at a time and keeping track of exactly how much an
“ore” block can contribute and how much a “waste” block will cost by its
stripping, the LG algorithm separates the profitable reserves from the non-
profitable materials to the optimum point. The LG method thus solves the
“shared” contribution problem and completely avoids the possible over-
mining and undermining problems.

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 Section 2—Dipper Pit Analysis

The advantages of the LG is that the algorithm provides a rigorous true

optimum pit. The shortcoming of the algorithm is its slow computational
speed.

DIPPER Programs The DIPPER programs within MEDSYSTEM® operate on a set of data
extracted from the MEDSYSTEM® model ( file 15 ) and the topography
grid ( file 13 ). This data set is composed of an S-file and a B-file. Multiple
DIPPER set are allowed, up to 99. Each DIPPER set is composed of one B-
file and initially one S-file. These files are linked together with the S-file
containing an index to the B-file. A S-file from another DIPPER set can be
used as initial surface if LG method is used. Each DIPPER set can have as
many S-files as required. The normal flow of the DIPPER programs is:

1. M717V1 is used to initialize a DIPPER set. The limits and

precision for the information item used by DIPPER ( grade, grams,
value, etc ) must be defined, the B-file name specified, and the
tonnage factors defined.
2. M718V1 is used to create the B and S-files for a DIPPER set from
the block model and topography grid. The information item is stored
in the block model for each block. The B-file contains the
information item by vertical columns in a continuous list for each
column. All blocks are not necessarily stored, but the list is
continuous from the top ore block in the column to the bottom ore
block in the column. This means that there may be some blocks in
the B-file which are below the minimum specified in the run file if
they are between the top and bottom ore blocks in a column.
3. M718V2 is used to create a net value DIPPER model from the Block
Model with a user subroutine. This program reads the 3-D Model
file and the 2-D Surface file and condenses them, creating the
DIPPER B-file and S-file. A user supplied subroutine calculates the
block economic values.
4. NETDIP is a general purpose user subroutine that creates Net Dollar
Dipper sets. Program will calculate a dollar value for each block and
condense value in the B-file. It also condenses an item from file 13
to the S-file.
5. M720V1 is used to compute pit limits based upon specified
economic assumptions using the floating cone method. M720V2
does the same but allows more complex slopes. M720V3 uses the
Lerchs-Grossmann method. M720V4 use the LG method but allows
complex slopes. M720V1 is the fastest, M720V4 is the slowest.
Each pit designed is stored in a new S-file.
6. M721V2, M721V3 plot section or plan maps of the pits designed.
The pit limits for each bench can be written out in VBM format to
be stored in the VBM files.
7. M723V1 computes pit reserves based upon multiple cut-off grades
from the S-files and B-file. Also reserves between any S-files can be
computed.
8. M728V1 computes block partial for the S-files and can be used for
reserves calculations on the full model (File 15).
9. M806V1 computes the increments between pits, and a simple top
down schedule by production period.

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Section 2—Dipper Pit Analysis

10. M729V1 allows the limiting of pits by other pits, adding pits
together, and loading pits into the topography file.

Program Limits The Limits for DIPPER are on the size of the model in plan which is limited
by the S-file and the number of blocks stored in the B-file.

The size of the model in plan is NX * NY.

The size of the B-file depends upon the model size, minimum and maximum
values that are allowed to be condensed as well as upon the precision of the
stored values. The B-file will have the largest size if a value is stored for
every block. Storing only blocks above a minimum value will reduce the size
of the B-file.

The current limits for DIPPER are:

• S-File 600 rows x 600 columns

• B-File 5,000,000 words (5,000,000 blocks if 1 block/word,

20,000,000 blocks if 4 blocks/word etc.)

Other Why optimum?

Considerations
The term Pit Optimization infers that the resulting design is an OPTIMUM.
A whole block pit design from either LG or FC methods will not match
reality. In fact, even the most detailed pit designs will usually be modified
during operations.

Some of the reasons for this are:

A The addition of roads. It is impossible to design the road system

without a first pass at the design of the ultimate pit and the pit phase
or pushbacks. The design of the roads must be done separately. The
location of the roads will significantly change the pit slope and
therefore the pit design. The design slopes for the pit optimization
can be modified to reflect the combined slope (including inter-ramp
slopes and roads), but this will still be an approximation.

B Pit smoothing to make the design practical. This includes smoothing

of walls and allowances for working room for mining equipment.

C Changes in assumptions for pit slopes, road widths and bench

geometry as operating experience is gained.

D Changes in economic assumptions and forecasts.

The pits designed by pit optimization methods are theoretical and, as such,
are only a guide for a more detailed design. When using the results of pit
optimization methods, you should keep in mind the reliability of the
assumptions. For example, the LG will give an accurate answer for the
model and assumptions being used, but does not define the precision of the

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 Section 2—Dipper Pit Analysis

design. Is it within 10% or 20% of what will be reality? This will depend
upon the accuracy of our assumptions. For example, what do you think the
price of gold will be in 10 years?

There are generally two objectives for using LG and FC: the first is the
determination of economic pit limits, and the second is to determine the
mining sequence. For feasibility studies it is best to start with simple
assumptions for the pit designs and refine them as the data becomes better.
The schedule, and therefore the sequence of mining, is more important than
the exact location of the final wall since many of the assumptions are not
well defined.

The exact position of the final pit wall is critical for an operating pit when
the location of the final pit wall or the last pushback is being defined and
mining is in progress. In this case, any error will result in lost ore or the
mining of extra waste.

So why do we use the term optimization when referring to these methods,

since we know that they are not optimum? The LG method does achieve the
maximum result based upon the assumptions, and the FC method is actually
an iterative solution which may or may not match the LG.

Cutoff grades The determination of the economic pit limit is usually based upon designing
the pit with the maximum value. The cutoff grade which results in the
maximum total value is not necessarily the same as the cutoff grade which
will maximize the NPV. The operating cutoff grade which will maximize the
NPV will usually be higher than the breakeven cutoff grade.

The optimum cutoff grade for each period will depend upon not only the
basic pit design assumptions for economics and pit geometry, but also on the
equipment capacities and pit geometry for each period. This information is
usually unknown until we develop a mine plan by period. As with much of
mine planning, this process is circular; the plan is redesigned using
information either developed from or based upon the previous plan.

You should be aware of the concept of the mine and mill cutoff grades as
defined in the M720s programs. Procedure p71990.dat is used to illustrate
this for copper. The mine cutoff grade is the grade sufficient to pay for
mining and processing costs. If the block were exposed, it would be
profitable to mine. The mill cutoff grade is the grade sufficient to pay only
for processing. If the grade of the block is above the mill cutoff, but below
the mine cutoff and the block must be mined to access ore blocks, then it is
less costly to send this block to the mill than to the dump, since some part of
the mining cost will be recovered. While these blocks contribute to
maximizing the profit, milling them probably has a negative effect on the
NPV.

Speeding up then The are some specific steps you can use to speed up the pit optimization
calculations programs. The most important step is to set up a plan to design the required
pits. This plan should be based upon the circular process: solve the problem

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Section 2—Dipper Pit Analysis

using the simplest assumptions and repeat the process using refinements as
more information is gained from each pass. Check the results carefully.

Following this idea, the FC with simple slopes is usually used first. The
slopes are added and then LG pits are designed.

To speed things up:

A Always run a series of pits from the smallest to the largest. For
example if varying the metal price, design a pit using the lowest
price and use that pit to start the next design.
B When using complex slopes, the maximum change in IX, IY, IZ
before recalculation of cone template (defined by user) can be used
to reduce the number of times the cone geometry is computed.
C For LG pits, run with reblocking first.
D When using complex slopes, always try to use a starting pit to
minimize the calculations.

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 Section 3—Training Project

Section 3—Training Project / Outlines

For this training project we will:

1. Get familiar with data; view model and surfaces in MineSight ®; make
plots; calculate geologic reserves (SECTION 4).

2. Example 1 (detailed):
Floating Cone approach using slopes that vary laterally by sector and with
block profits based on constant costs and EQCU grade. The block profit will
be calculated by the pit design program. We will generate a series of dipper
pit shells by varying the copper price between $0.60/pound and
$0.90/pound in $0.06 increments (SECTION 5).

For this example we will also:

 display the pit shells (using plan maps and sections as well as
MINESIGHT®).
 analyze the pit shells (calculate pit reserves and perform pit economic
analysis).

3. Example 2:
Same as Example 1 but with variable costs by bench (SECTION 6).

4. Example 3:
Use Dollar/block approach (using M612RP and M718V1) and LG
algorithm to produce economic limits for $0.90/pound copper price
(SECTION 7).

5. Example 4:
Same as example 3 but using reblocking (SECTION 8).

6. Example 5:
Dollar/Block with Reblocked LG and Complex Slopes (SECTION 9).

7. Example 6:
Dollar/Block using LG and varying ore processing cost and recovery by
alteration type (SECTION 10).

8. Example 7:
NETDIP application (SECTION 11).

9. Example 8:
Apply mining restrictions. The same set up as in Example 7 will be used
with the addition of some boundary restrictions (SECTION 12).

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Section 3—Training Project

Page 3—2 Open Pit Optimization Training Workbook

 Section 4—Familiarization with Deposit

Section 4—Familiarization with Deposit

Summary A project directory called MSOP has already been created for you. This
project directory contains the following MEDS files associated with
building the block model (not all of the files are needed but this is a typical
MEDSYSTEM® file structure when a DIPPER pit analysis begins):

MSOP10.DAT - Project Control File

MSOPHS.DAT - Project History File
MSOP11.DAT - Drillhole Assay File
MSOP12.DAT - Drillhole Collar/Survey File
MSOP09.DAT - Drillhole Composite File
MSOP08.DAT - Drillhole Composite File Sorted by Northing
MSOP13.NEW - 2-D Surface File
MSOP15.NEW - 3-D Block Model File
MSOP25.TOP - Plan View VBM file for topographic data
MSOP25.BEN - Plan View VBM file for geologic data

Deposit and File MSOP15.NEW

Surface The deposit we will be calculating an optimum pit for is a large
Topography copper/molybdenum deposit. It has been modeled in metric units and
the model covers the following area:
Overview
Eastings: 1000E to 4000E
Northings: 4000N to 6500N
Elevations 2000m to 2960m

The block size in the model is 20m by 20m by 15m high. Applying this
block size over the modeled area results in a model with:

125 rows 150 columns 64 levels

This model location/dimension information along with a table associating

the bench toe elevation with its model level Number is summarized in the
project initialization report file.

This information is also available for display by clicking on Utilities $ PCF

Info.

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Section 4—Familiarization with Deposit

Information on 15 items is stored for each block in the model. The name and
description of each item are given below:

TOPO - % of the block below the surface

MOIDS - block moly grade by inverse distance weighting (IDW)
MOPLY - block moly grade by assignment from nearest hole
CUIDS - block cu grade by inverse distance weighting
CUPLY - block cu grade by assignment from nearest hole
DIST - Distance to the nearest hole in IDW interpolation
ROCK - rock type code for the block
ALTR - alteration Code for the block
NCOMP - number of composites used in IDW interpolation
SG - specific gravity
ORE - reserve classification code
ZONE - ownership code
VALPT - dollar value per ton
VALBK - dollar value per block
EQCU - equivalent copper grade for the block

Two extra items are also included for use as needed.

Page 4—2 Open Pit Optimization Training Workbook

 Section 4—Familiarization with Deposit

A summary of the minimum and maximum values allowable for each item,
and the precision with wich the values are stored can be also obtained from
Utilities$ PCF Info and after you click on the file MSOP15.NEW.

File MSOP13.NEW

The 2-D surface file has the same northing and easting boundaries as the
model file (MSOP15.NEW) and a grid spacing equal to the plan view
dimension of the blocks (20m by 20m). This surface file has been set up to
store seven different surfaces.

The item label used for each surface is listed below:

TOPOG - initial surface

PIT1 - pit surface number 1
PIT2 - pit surface number 2
EXPZ1 - extra pit surface number 1
EXPZ2 - extra pit surface number 2
ROCK - geologic surface
ALTR - alteration surface

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Section 4—Familiarization with Deposit

PCF INFO can also provide user with information on file 13.

As we start the training project only item TOPOG representing the initial
surface has values entered.

File MSOP25.TOP

The limits of this plan view VBM for topography data are:

Eastings: 0E - 5000E
Northings: 3000N - 8000N

As we start the training project only the initial topography represented by

feature code 901, an alteration surface represented by feature code 902, and
slope sector boundaries represented by feature codes 1,2 and 3 are present
in this file.

Page 4—4 Open Pit Optimization Training Workbook

 Section 4—Familiarization with Deposit

Familiarization Before designing a final pit and developing a mining plan, it is always a
Exercises good idea to first become very familiar with the deposit and the overlying
topography. You should have a general idea about the overall terrain (i.e.,
mountainous, flat, etc.), how close the ore is to surface, where the high grade
is located, how much ore there is, etc. We will do the following exercises to
obtain this knowledge:

Exercise 1: Look at the surface topography

Exercise 2: Look at a set of bench maps and E-W cross sections showing
color coded copper equivalent grade information.
Exercise 3: Calculate geologic reserves and make a histogram of copper
equivalent grades.

Exercise 1 - There are two ways to import into MineSight ® and display the surface
Viewing the topography from a VBM file:
Topography in 1. Make an ASCII file of the feature codes you want to view and import
MineSight® the ASCII file in MineSight ®
2. Directly import the VBM file in MineSight ®

For this exercise we will directly import all the VBM data in MineSight®

Step 1 Starting MineSight®

To start a project in MineSight ®, type MS2 in the working directory. Click
OK in the Welcome panel. Answer Yes to the next question (Create new MS
folder?). The MS Project Settings window will come up. Click Initialize
from an existing file. Open File MSOP10.DAT. Click OK.

Step 2 Importing VBM

Click on New Resource Map and make a new folder called topo. Highlight
folder topo, click right and import MEDSYSTEM VBM File. Click Select
PCF and open MSOP10.DAT. Select file MSOP25.TOP and click OK.
Click on All Planes and on feature 901, then click Apply. VBM topo
contours appear in the Viewer. Exit the VBM Import panel. Double click on
folder topo and you’ll see that a Geometry Object 901 was created as well
as an associated grid which actually defines the planes that the VBM topo
lines are restricted to.

Step 3 Importing Topography from File 13

Highlight folder topo and make a new Model View. Call it topog. Click
Select PCF, open MSOP10.DAT and select MSOP13.NEW. Click OK. The
MS ModelView Editor window will come up. Make sure item topog
appears in the Primary Display Item box as well as in the Surface
Elevation Item under the GSM/Surfaces tab. Click Cutoffs and then
Intervals. Enter a minimum of 0, a maximum of 3000 and an increment of
3000. Select all the cutoffs and click Properties. Click Set Color by Range.
Click OK and OK again. A solid surface will appear on the screen. Close the
Cutoff Face window as well as the MS ModelView Editor.

Open Pit Optimization Training Workbook Page 4—5

Section 4—Familiarization with Deposit

To aid in orienting yourself with the Viewer, go to File$Project

Settings$Properties and click Show Boundary box. Click
Properties$Labels and add the Easting, Northing and Elevation labels.
Adjust the size of the labels if needed.

Page 4—6 Open Pit Optimization Training Workbook

 Section 4—Familiarization with Deposit

Exercise 2 Models can be directly attached to MineSight®. We are going to make

Visualizing the horizontal and sectional views of equivalent copper.
Model Data
Step 1 Attaching Model File
Highlight New Resource File and make a new folder. Name the folder
model. Highlight folder model and make a new model view. Name the view
eqcu. Select and open PCF file MSOP10.DAT and then select and open file
MSOP15.NEW. Pick item eqcu as a Primary Display Item. Click on
Cutoffs and use a min of 0, max of 1.8 with an increment of .2 to color the
different grades (select all cutoffs and adjust properties).

Step 2 Stepping through the Model

In the MS ModelView Editor, go to the Range tab and click Immediate
View Refresh. Use the arrows to the right of the level slide bar to step
through the model bench by bench.

You can limit the view by adjusting the row and column slide bars. View
rows 35 through 85 and columns 57 to 116.

Step 3 Viewing style

The viewing style can be either Surface/Slab (default; actual block values
on a surface type view), Contours or Smooth Contours, Filled Polygons or
3-D Blocks. You can change the block size (percent) using the Options tab.
This option can make it easier to differentiate the blocks.

If you want to only view blocks above a certain cutoff you can change the
color of the blocks that are below cutoff to the same color as the background
(black in our case). Click on the Cutoffs button next to the Primary display
item. Select the <0 and 0 cutoffs. Click Properties$Surfaces. Click Show
Faces and select black. You may have to turn the Lighting off in the Viewer
Properties window for a better effect.

Open Pit Optimization Training Workbook Page 4—7

Section 4—Familiarization with Deposit

You can query any block in the Viewer by clicking on the ? box and clicking
on a block. An extra panel will appear with information on the block that
was queried.

Page 4—8 Open Pit Optimization Training Workbook

 Section 4—Familiarization with Deposit

Step 5 Creating other Views

To make a E-W sectional view Open the MS ModelView Editor, then
Range. Show benches 20 through 54. Reduce the Northing to show only row
62. This will give an east-west section at Northing 5220. Step through
different sections. N-S sections may be created in a similar manner.

Open Pit Optimization Training Workbook Page 4—9

Section 4—Familiarization with Deposit

Exercise 3 From the MEDSManager menu select:

Calculate Group = STATISTICS
Geologic Operations = Calculations
Reserves Procedure = Statistics (Model) - p60801.dat

Panels

Page 4—10 Open Pit Optimization Training Workbook

 Section 4—Familiarization with Deposit

Open Pit Optimization Training Workbook Page 4—11

Section 4—Familiarization with Deposit

The results show a total copper mineralization resource of 1832880 Ktonnes

@ .305%Cu and .034%MoS2. More reports (edited) and histograms follow.
More than one run of procedure must be performed in order to get
histograms for all desired items.

# intervals = 20
MIN value = 0.0100
increment = 0.2000
BASE value = 0.0000
# grades = 3
grade labels: EQCU CUIDS MOIDS
Base assay is EQCU
Weighting ITEM TOPO 0.0100
Levels requested: 1 - 64

MIN. data VALUE = 0.0100

MAX. data VALUE = 4.8600
Std. deviation = 0.6370

Page 4—12 Open Pit Optimization Training Workbook

 Section 4—Familiarization with Deposit

MINESIGHT OPEN PIT DEMONSTRATION PROJECT

** EQCU STATISTICS FROM 3-D MODEL FILE MSOP15.NEW **
Statistical Analysis of MODEL grades based on EQCU

EQCU WEIGHT MEAN S.T.D.

CUTOFF ABOVE CUTOFF
0.000 1832880.4 100.0000 0.5789 0.6370 EQCU
1832880.4 100.0000 0.3051 0.3252 CUIDS
1832880.4 100.0000 0.0342 0.0406 MOIDS

0.200 1029260.1 56.1553 0.9621 0.6203 EQCU

1029260.1 56.1553 0.5066 0.3079 CUIDS
1029260.1 56.1553 0.0569 0.0416 MOIDS
0.400 826204.4 45.0768 1.1289 0.5807 EQCU
826204.4 45.0768 0.5918 0.2842 CUIDS
826204.4 45.0768 0.0671 0.0402 MOIDS

0.600 665874.0 36.3294 1.2818 0.5452 EQCU

665874.0 36.3294 0.6663 0.2655 CUIDS
665874.0 36.3294 0.0769 0.0387 MOIDS
0.800 527743.7 28.7931 1.4369 0.5080 EQCU
527743.7 28.7931 0.7415 0.2441 CUIDS
527743.7 28.7931 0.0869 0.0371 MOIDS

1.000 430934.8 23.5113 1.5588 0.4841 EQCU

430934.8 23.5113 0.7973 0.2329 CUIDS
430934.8 23.5113 0.0952 0.0360 MOIDS
1.200 332287.4 18.1292 1.6975 0.4678 EQCU
332287.4 18.1292 0.8634 0.2161 CUIDS
332287.4 18.1292 0.1043 0.0355 MOIDS

1.400 228793.6 12.4827 1.8812 0.4562 EQCU

228793.6 12.4827 0.9357 0.2192 CUIDS
228793.6 12.4827 0.1182 0.0340 MOIDS
1.600 161326.4 8.8018 2.0443 0.4512 EQCU
161326.4 8.8018 1.0032 0.2244 CUIDS
161326.4 8.8018 0.1301 0.0334 MOIDS

1.800 104490.5 5.7009 2.2384 0.4535 EQCU

104490.5 5.7009 1.0896 0.2296 CUIDS
104490.5 5.7009 0.1436 0.0338 MOIDS

2.000 63862.7 3.4843 2.4642 0.4507 EQCU

63862.7 3.4843 1.1881 0.2391 CUIDS
63862.7 3.4843 0.1595 0.0339 MOIDS

Open Pit Optimization Training Workbook Page 4—13

Section 4—Familiarization with Deposit

2.200 40874.9 2.2301 2.6757 0.4373 EQCU

40874.9 2.2301 1.2857 0.2391 CUIDS
40874.9 2.2301 0.1738 0.0337 MOIDS
2.400 27167.9 1.4823 2.8715 0.4144 EQCU
27167.9 1.4823 1.3726 0.2420 CUIDS
27167.9 1.4823 0.1874 0.0328 MOIDS

2.600 18841.1 1.0279 3.0395 0.3926 EQCU

18841.1 1.0279 1.4478 0.2452 CUIDS
18841.1 1.0279 0.1990 0.0320 MOIDS

2.800 12377.3 0.6753 3.2230 0.3671 EQCU

12377.3 0.6753 1.5351 0.2491 CUIDS
12377.3 0.6753 0.2110 0.0319 MOIDS
3.000 7987.1 0.4358 3.4035 0.3394 EQCU
7987.1 0.4358 1.6273 0.2455 CUIDS
7987.1 0.4358 0.2220 0.0320 MOIDS

3.200 5338.9 0.2913 3.5604 0.3104 EQCU

5338.9 0.2913 1.7110 0.2349 CUIDS
5338.9 0.2913 0.2312 0.0327 MOIDS
3.400 3394.9 0.1852 3.7170 0.2870 EQCU
3394.9 0.1852 1.7859 0.2252 CUIDS
3394.9 0.1852 0.2414 0.0330 MOIDS

3.600 1936.9 0.1057 3.8949 0.2607 EQCU

1936.9 0.1057 1.8477 0.2407 CUIDS
1936.9 0.1057 0.2559 0.0327 MOIDS
3.800 1004.4 0.0548 4.0923 0.2184 EQCU
1004.4 0.0548 1.9465 0.2334 CUIDS
1004.4 0.0548 0.2682 0.0334 MOIDS

Page 4—14 Open Pit Optimization Training Workbook

 Section 4—Familiarization with Deposit

Distribution of EQCU by BENCH

BENCH NUMBER MEAN STD.DEV.
2660.00 16681.626 0.1464 0.1687
2645.00 33034.393 0.2525 0.2697
2630.00 49843.189 0.3286 0.4146
2615.00 58090.123 0.3687 0.4805
2600.00 61030.586 0.4018 0.5526
2585.00 62726.402 0.4222 0.5629
2570.00 61300.802 0.4517 0.5675
2555.00 61219.802 0.4823 0.5905
2540.00 57963.601 0.5201 0.6267
2525.00 57785.401 0.5473 0.6388
2510.00 57753.001 0.5676 0.6564
2495.00 57477.601 0.5923 0.6705
2480.00 53314.201 0.6348 0.6810
2465.00 53881.201 0.6507 0.6909
2450.00 53784.001 0.6676 0.7255
2435.00 53784.001 0.6413 0.7271
2420.00 53832.601 0.6458 0.7403
2405.00 53751.601 0.6661 0.7884
2390.00 53589.601 0.7084 0.8039
2375.00 53605.801 0.7182 0.8048
2360.00 52342.201 0.7199 0.7819
2345.00 43205.401 0.8359 0.7643
2330.00 43075.801 0.8228 0.7137
2315.00 43108.201 0.7883 0.6602
2300.00 39187.801 0.8181 0.6275
2285.00 29224.801 1.0414 0.5863
2270.00 28220.401 1.1000 0.6484
2255.00 29095.201 1.0804 0.6942
2240.00 28917.001 1.1078 0.7428
2225.00 27361.801 1.0024 0.7313
2210.00 23959.801 0.7070 0.5007
2195.00 21416.401 0.5984 0.3924
2180.00 25839.001 0.4203 0.3391
2165.00 26519.401 0.3576 0.3084
2150.00 32319.001 0.3335 0.2646
2135.00 36968.401 0.3431 0.2265
2120.00 36968.401 0.3458 0.2245
2105.00 36871.201 0.3266 0.2096
2090.00 36855.001 0.2728 0.1768
2075.00 34425.001 0.2956 0.1351
2060.00 34376.401 0.3059 0.1844
2045.00 34311.601 0.4312 0.3269
2030.00 15924.600 0.4846 0.4662
2015.00 7938.000 1.2700 0.0000

Open Pit Optimization Training Workbook Page 4—15

Section 4—Familiarization with Deposit

Distribution of CUIDS by BENCH

BENCH NUMBER MEAN STD.DEV.
2660.00 16681.626 0.0663 0.0777
2645.00 33034.393 0.1022 0.1089
2630.00 49843.189 0.1428 0.1843
2615.00 58090.123 0.1777 0.2351
2600.00 61030.586 0.2047 0.2858
2585.00 62726.402 0.2159 0.2889
2570.00 61300.802 0.2339 0.2867
2555.00 61219.802 0.2532 0.3024
2540.00 57963.601 0.2783 0.3231
2525.00 57785.401 0.2882 0.3247
2510.00 57753.001 0.2994 0.3317
2495.00 57477.601 0.3161 0.3454
2480.00 53314.201 0.3358 0.3500
2465.00 53881.201 0.3408 0.3512
2450.00 53784.001 0.3490 0.3661
2435.00 53784.001 0.3438 0.3637
2420.00 53832.601 0.3489 0.3719
2405.00 53751.601 0.3677 0.3937
2390.00 53589.601 0.3844 0.4090
2375.00 53605.801 0.3873 0.4121
2360.00 52342.201 0.3896 0.3991
2345.00 43205.401 0.4617 0.3917
2330.00 43075.801 0.4573 0.3680
2315.00 43108.201 0.4310 0.3346
2300.00 39187.801 0.4397 0.3163
2285.00 29224.801 0.5510 0.2852
2270.00 28220.401 0.5660 0.3122
2255.00 29095.201 0.5440 0.3193
2240.00 28917.001 0.5295 0.3282
2225.00 27361.801 0.4893 0.3304
2210.00 23959.801 0.3558 0.2309
2195.00 21416.401 0.3156 0.2087
2180.00 25839.001 0.2333 0.1914
2165.00 26519.401 0.2024 0.1650
2150.00 32319.001 0.1972 0.1492
2135.00 36968.401 0.1883 0.1116
2120.00 36968.401 0.1833 0.1160
2105.00 36871.201 0.1772 0.1133
2090.00 36855.001 0.1530 0.1085
2075.00 34425.001 0.1487 0.0935
2060.00 34376.401 0.1386 0.1058
2045.00 34311.601 0.1840 0.1845
2030.00 15924.600 0.3250 0.3060
2015.00 7938.000 0.8700 0.0000

Page 4—16 Open Pit Optimization Training Workbook

 Section 4—Familiarization with Deposit

Distribution of MOIDS by BENCH

BENCH NUMBER MEAN STD.DEV.
2660.00 16681.626 0.0100 0.0135
2645.00 33034.393 0.0188 0.0221
2630.00 49843.189 0.0232 0.0308
2615.00 58090.123 0.0239 0.0320
2600.00 61030.586 0.0246 0.0348
2585.00 62726.402 0.0258 0.0356
2570.00 61300.802 0.0272 0.0360
2555.00 61219.802 0.0286 0.0369
2540.00 57963.601 0.0302 0.0388
2525.00 57785.401 0.0324 0.0403
2510.00 57753.001 0.0335 0.0416
2495.00 57477.601 0.0345 0.0417
2480.00 53314.201 0.0374 0.0425
2465.00 53881.201 0.0387 0.0435
2450.00 53784.001 0.0398 0.0460
2435.00 53784.001 0.0372 0.0464
2420.00 53832.601 0.0371 0.0470
2405.00 53751.601 0.0373 0.0502
2390.00 53589.601 0.0405 0.0504
2375.00 53605.801 0.0414 0.0502
2360.00 52342.201 0.0413 0.0489
2345.00 43205.401 0.0468 0.0477
2330.00 43075.801 0.0457 0.0442
2315.00 43108.201 0.0447 0.0416
2300.00 39187.801 0.0473 0.0398
2285.00 29224.801 0.0613 0.0387
2270.00 28220.401 0.0668 0.0433
2255.00 29095.201 0.0671 0.0482
2240.00 28917.001 0.0723 0.0526
2225.00 27361.801 0.0641 0.0512
2210.00 23959.801 0.0439 0.0339
2195.00 21416.401 0.0353 0.0236
2180.00 25839.001 0.0234 0.0195
2165.00 26519.401 0.0194 0.0186
2150.00 32319.001 0.0170 0.0149
2135.00 36968.401 0.0194 0.0161
2120.00 36968.401 0.0203 0.0159
2105.00 36871.201 0.0187 0.0145
2090.00 36855.001 0.0150 0.0094
2075.00 34425.001 0.0184 0.0132
2060.00 34376.401 0.0209 0.0204
2045.00 34311.601 0.0309 0.0361
2030.00 15924.600 0.0200 0.0200
2015.00 7938.000 0.0500 0.0000

Open Pit Optimization Training Workbook Page 4—17

Section 4—Familiarization with Deposit

Eqcu Histogram

Cuids Histogram

Page 4—18 Open Pit Optimization Training Workbook

 Section 4—Familiarization with Deposit

Moids Histogram

Exercise 4 Edit After studying the results from the above exercises you should have a good
model data understanding of the deposit’s size, grade distribution, spatial orientation,
etc. Another MEDS program that is useful for getting familiar with the
model and its contents is M602FS, the model editor program. This program
displays the values stored in the model on a user-specified bench and a user-
specified row. It can be accessed from the MEDSManager menu by
selecting

Group = 3-D DEPOSIT MODELING

Operation = Edit
Procedure = Edit Model Data — P60201.dat

Try this program by asking for a display of the model items TOPO, MOIDS,
CUIDS, ROCK, ALTR, and EQCU along row 70 on bench 10, 25, and 55.

Open Pit Optimization Training Workbook Page 4—19

Section 4—Familiarization with Deposit

Page 4—20 Open Pit Optimization Training Workbook

 Section 5—Floating Cone Example Using Grade Item

Section 5—Floating Cone Example Using Grade Item

Floating Cone
Step 1 Initialize B-file and S-file (M717V1)

From the MEDSManager menu select:

Group = DIPPER MINE PLANS

Operations = Initialize
Procedure desc. = Initialize Dipper Files - P71702.dat

Panels (that need to be filled in):

Open Pit Optimization Training Workbook Page 5—1

Section 5—Floating Cone Example Using Grade Item

Step 2 Condense items

Condense model item EQCU and File 13 item TOPOG and load them
into B-file and S-file respectively (M718V1). Any block with an EQCU
grade greater than .01 and with a reserve classification code (item
ORE) of 1 (proven ore) or 2 (probable ore) will be flagged as ore in the
B-file for pit design purposes. This prevents cones from being generated
from blocks where we have low confidence in the grade assigned (i.e.,
blocks where ORE = 3 for Possible Ore).

From MEDSManager menu select:

Group = DIPPER MINE PLANS

Operations = Convert
Procedure desc. = Condense Model - p71890.dat

Panels:

Page 5—2 Open Pit Optimization Training Workbook

 Section 5—Floating Cone Example Using Grade Item

Output (partial):
* MICRO SYMBOL MAP OF DIPPER SURFACE MSOPDP.P00 *

TOPO Surface Matrix MSOPDP.P00

000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000111111111111111111111
000000000111111111122222222223333333333444444444455555555556666666666777777777788888888889999999999000000000011111111112
123456789012345678901234567890123456789012345678901234567890123456789012345678901234567890123456789012345678901234567890
+ + + + + + + + + + + + + + + + + + + + + + + +
125*99999998888877766666666777888888888888999A999999998888888888877777777888999999BDDDDDDEEEEFGGHIIJJJJKKKKKKKKKKKKKKJJIIIII
124*9999998888777776666666778888888788888999AAA9999998888888888887776667778899999ACDDDDDDDEEFGHHIIIJJJJKKKKKKKKKKKKKKJJIIIIH
123*A99999888887777666666677888888777778899AAAAA99988888888888887776666677889999ABCCDDDDDDEEFGHHIIIJJJJKKKKKKKKKKKKKKJJIIIHG
122*A99999888887777666666677888887666777899AAAAA99888888888888877766666667788999ABBCCDDDDDDEFGHHIIIJJJJKKKKKKKKKKKKKKJJIIHHG
121*AA99998888877777666666777888876566678899AAAAA9887777888888877666666666788999AABCCDDDDDDEFGHHIIIJJJJKKKKKKKKKKKKKKJJJIIHH
120*AAA9999888887776666666777888876556667899AAAAA9887777778888777666666666788899AABBCDDDDDDEFGHHIIIJJJJKKKKKKKKKKKKKKKJJIIHH
119*BAAA999988887776666666777888876655667889AAAAA9887666777788776666666667788899AABBCDDDDDDEFGGHIIIJJJJJKKKKKKKKKKKKKKJJJIIH
118*BAAA999988887776666666777888876655567899ABBBA9877656667777766665666667788999AABBCDDDDDDDEFGHIIIJJJJJKKKKKKKKKKKKKKJJJIII
117*BBAAA99998887776666666777888877655567899ABBBA987655556677776655566667788899AABBCCDDDDDDDEFGHIIIJJJJJKKKKKKKKKKKKKKJJJJII
116*BBBAAA9998887776666666777888877665667899ABBBAA88765455667666555556678888999ABBCCDDDDDDDDEFGHIIIIJJJJJKKKKKKKKKKKKKKJJJII
115*BBBBAAA99988877666666677888888776667789AABBBA988765555666665444566788999999ABCCDDDDDDDDDEFGHHIIJJJJJKKKKKKKKKKKKKKKJJJJI
114*BBBBBAAA9998877666666677888888877777889ABBBBA9877655556666544445677899A999ABCCDDDDDDDDDDEFGHHIIJJJJJKKKKKKKKKKKKKKKKJJJI
113*BBBBBBAAA99887766666667788888888888899AABBBBB987666555666554445567889AAAA9ABCDDEEEEDDDDDDFGHHIIJJJJJKKKKKKKKKKKKKKKKJJJI
112*BBBBBBBAAA998877666666778889999999999AABBCCBBA98766655565544445667899ABBAAABBCDEEEEEDDDDDEGHHIIJJJJJKKKKKKKKKKKKKKKKJJJI
111*BBBBBBBBAAA9887776666677888999AAAAAAABBCCCCBBA9887766555554445667789AABBBAABBCDEFFFEDDDDDEGHHIIJJJJJKKKKKKKKKKKKKKKJJJJI
110*BBBBBBBBBAAA98887766667788899AAAABBBBBCCCCCBAA9987776555544456678889ABBCBBBBCDDEFFFFEDDDDEFHHIIIJJJJKKKKKKKKKKKKKKKJJJJI
109*BBBBBBBBBBBA99888777777788899AAABBBBCCCCCCCBA9988777665554445677899AABCCBBBBCCDEFGGFFEDDDEFHHIIIJJJJKKKKKKKKKKKKKKKJJJJI
108*AABBBBBBBBBBA99888777777888899AABBCCCCCDCCCBA998777666555445567889AABCCCCBBBBCDEEFGGFFEDDEFGHHIIIJJJKKKKKKKKKKKKKKKJJJJI
107*AAABBBBBBBBBBAA998887777888899AAABCCCDDDDCCBAA9887665555444556789AABCCDDCBBBBCCDEFFGGGFEEEEFGHHIIJJJKKKKKKKKKKKKKKKKJJII
106*AAAABBBBBBBBBBBA998888888888999AAABCCDDDDCCBAA9887655444444456789ABBCDDDDCBBBBCDDEFGGHGFEEEEFGHIIIJJKKKKKKKKKKLLLKKKJIII
105*AAAAABBBBBBBBBBBAA9988888888999AAABBCCDDDDCBAA9887654444444456789ABCCDEEDCCBBBBCDEEFGHHGGFEEFGHHIIJJKKKLKKKKKLLLLKKJJIII
104*AAAAAABBBBBBBBBBBAA99888999999AAAAABCCDDDDCBAA9877654333333455679ABCDEEEEDCBBBBBDDEFGHIHGGEEFFGHIIJJKLLLLLKKKKLLLKKJJIII
103*AAAAAAABBBBBBBBBBBAA9989999999AAAAABCCDDDDCBBA9876554333333445679ABCDEEEEDCCBBBCDEFFGHIIHGGFFGHIIJJJKKLLLLKKKLLLLKKJJIII
102*AAAAAAAABBBBBBBBBBBA99899AAAAABBBBBCCDDEEDCCBA8765554333334455679ABCDEFFEDDDCCCCDEFGHIIIIHHGGHHIJJJJJKLLLLKKKLLLLLKKJIII
101*AAAAAAAAABBBBBBBBBBA98779AABBBBCCCCCDDEEEDDCBA9876655443334556778ABCDEFFEDDDDDDDEFGHHIIIIIIHHHIJJJJJJKLLLLLKKLLMLLLKKJII
100*AAAAAAAAAABBBBBBBBBBA9669ABBBCCCCDDDDEEEEDDCBBA987766554334567788ABCEFFFFEEEFEEEFFGHIIJJJIIIHIIJKKJJJKLLLLLLLLMMMLLLLKJJ
99*AAAAAAAAAAAABBBBBBBBA9658ABBCCCCDDDDEEEEEDDDCBBA98877655434567889ABCEFGGFFEFFFFFGGGHIJJJJJJJIIJJKKKJJKLLLLMLLLMMMMMMLLKK
98*BAAAAAAAAAAAABBBBBBBBA858ABBCCCCDDEEEEEEEDDDCCBBA9887665444567899ABCDFGGGGFFGGGGHHHHIJJJJJKJIIJKKLLKKKKLMMMMMMMMMMMMMLLK
97*BAAAAAAAAAAAABBBBBBBBBA779BBCCCCDDEEEEEEEEDDDCBBA998765444457899AABCDFGHHHGGGHGHHIHHIJKJJJKJJJJKLLLLKKKLLMMMMMMMMMMMMMML
96*BBAAAAAAAAAAAABBBBBBBBA989ABCDDDDDEEEEEEEEDDDCCBA98766544456789AABBCDEFGHHHHHHHHIIIIIJKKKKKKJJKKLLLLLLLLLMMMMMMMMMMMMMMM
95*BBBAAAAAAAAAAAABBBBCCCBAAAABCDDDDEEEEEEEEEDDDCCBA98755544456789ABBCCDEFGHIIHIIIIIJIIIJKKKKKKKKKLLLLLLLLLMMMMMMMMMMMMMMMM
94*ABBAAAAAAA9AAAAABBBCCCCBBABBCDDEEEEEEEEEEEDDDCCBA98755555556789ABCCDDEFGHIIIIIIIJJJJJJKKKKKKKKLLLLMMMMMMMMMMMMMMMMMMMMMN
93*AABBAAAA9999AAAAABBBCCCCBBBCCDEEEEEEEEEEEEEDDCCBA9876555666789AABCDDDEFGHIIJIJJJJKKJJKKKKKKLLLLLLLMMMMMMMMLMMMMMMMMMMNNN
92*9ABBAAA9998999AAAABBBCCCCCCDDDEEEEEEEEEEEEEDDDCBA9887655677799ABCDDEEEFGHIIJJJJJJKKKKKKKKKLLLLLLMMMMMMMMMLLLMMMMMMMMMNNN
91*9AABBAA9988899999AABBCCCCDDDEEEEEEEEFFFFEEEEDDCBBA99866678889ABCCDEEEFFGHHIJJJJJJKKKKKKLLLLLLLLMMMMMMMMMMLLLLMMMMMMMNNNN
90*99ABBAA98888888999AABBCCCDDDEEEEEEEEFFFFFEEEDDCCBAA9876788999ABCDEFFFFGHHHIIJJKKKKKKKLLLLLLLLLMMMMMMMMMMMLLLLMMMMMMMNNNN
89*899ABAA988888788899AABBBCCDDDDEDEEEEFFFFFEEEDDCCBBA9987889AAABCCDEFFFGHHIIIJJJKKKKKKLLLLLLLLLLMMMMMMMMMMMMLLLMMMMMMMNNNN
88*789ABBA9888877778899AABBBCCDDDDDDEEEFFFFFFEEEDDCCBBA99899AABBBCDEEFFGGHIIIJJJJKKKKKKLLLLLLLLLMMMMMMMMMMMMMMMMMMMNNNNNNNN
87*789ABBA988777666778899AAABCCCCCCDEEEFFFFFFFEEEDDCCBA999AAABBBBCDEFFGGHHIJJJJJJKKKKKLLLLLLLLLLMMMMMMMMMMMMMMMMMMNNNNNNNNN
86*7789ABAA9876655566788999AABBCCCCDDEEFFFFFFFFEEDDCCBAAAAABBCCBBCDEFGGHHIIJJJJKKKKKKLLLLLLLLLMMMMMMMMMMMMMMMNMNNNNNNNNNNNN
85*7789ABAA98765555556778999ABBBBBCDDEEEFFFFFFFEEDDCCBAAABBCCCCCBCDEFGHHHIIJJJKKKKKKKLLLLLLLLLMMMMMMMMMMMMMNNNNNNNNNNNNNNNN
84*7789ABBA987655555556678899AAAABBCDDDEEFFFFFFEEDDCCBAAABCCDDDCCCDEFGHHIIIJJKKKKKKKKLLLLLLLLMMMMMMMMMMMMMNNNNNNNNNNNNNNNNN
83*77789ABA9876555555666678999AAAABCCDDDEEFFFFFEEDDCCBAAABCDDEEDCCDEFGHHIIIJJJKKKKKKLLLLLLLLLMMMMMMMMMMMMMNNNNNNNNNNNNNNNNN
82*77789ABA9986555556667778999AAAAABCCDDEEFFFFFEEEDCCBAAABCDEEEEDDEFFGHIIIJJJJKKKKKKLLLLLLLLLLLMMMMMMMMMMMNNNNNNNNNNNNNNNNN
81*77778ABAA986554456677889AAAABBAAABCCDEEFFFFFFEEDCCBBBBCCDEEFEEEEFGHHIIIJJJKKKKKKKKLLLLLLLLLLLLMMMMMMMMNNNNNNNNNNNNNNNNOO
80*677789BBA987655445678899ABBBBBBAAABCDEEFFGGGFFEDDCBBBCDDDEFFFFEFGGHIIIJJJJKKKKKKKKLLLLLLLLLLLLMMMMMMMNNNNNNNNNNNNNNNNOOO
79*677779ABA98765544567889AABCCCCBBBBCCDDEFFGGGFFEEDCCCCDDEEEFGGFFGGHHIIJJJJJKKKKKKKKKKKKLLLLLLLMMMMMMMMNNNNNNNNNNNNNOOOOOO
78*667778ABA98766544567789AABCCDDCCCCCCDDEFFGGGGFFEDDCCDDEEFFFGGGGGHIIIJJJJJJJKKKKKKKKKKKKLLLLLMMMMMMMMMMNNNNNNNNNNNOOOOOOO
77*6667789BA98876555567789AABCDDDDDCDDDDEEFFGGGGFFEDDDCDEEFFFGGHGGHIIIJJJJJJJJKKKKKKKKKKLLLLLMMMMMMMMMMMMNNNNNNNNNNOOOOOOOO
76*6667779ABA98766555567899ABCCDEEDDDDDDEFFGGGGGFFEDDDDDEFFGGGHHHHHIIJJJJJJJJJKKKKKKKKKLLLLLMMMMMMMMMMMMMMNNNNNNNNOOOOOOOOO
75*6666778ABA98876665567889ABCCDEEEEEEEDEFFGGGGGFEEDDDDDEFGGGHHHHHIIJJJJJJJJJKKKKKKKKKLLLLMMMMMMMMMMMMMMMMNNNNNNNOOOOOOOOOO
74*66667789BAA9877766666789ABBCDEEEEEEEEEFGGGGGGFEEDDDEEEFGGHHHIHHIIJJJJJJJJKKKKKKKKKLLLLLMMMMMMMMMMMMMMMMNNNNNNOOOOOOOOOOO
73*66667789BBAA9887766667789ABCDDEEFFEEEFFGGGGGGFFEEEEEFFGGHHHIIIIIJJJJJJJJJJJKKKKKKLLLLLLMMMMMMMMMMMMMMMMMNNNNNOOOOOOOOOOP
72*66667779ABAAA998876677789ABBCDEFFFFFFFFGGGGGGGGFEEEFFGHHHHIIIIIIIJJJJJJJJJJKKKKKKLLLLLLMMMMMMMMMMLLMMMMMNNNNNOOOOOOOOOOO
71*66666779ABBAAA998877788899ABCDEFFFFFFGGGGGGHHHGFFFFFGGHIIIIIIIIIIJJJJJJJJKKKKKKKLLLLLLLMMMMMMMMLLLLMMMMMNNNNNNOOOOOOOOOO
70*66666778ABBBAAA99888888999ABCDEFFFFFFGGGGGHHHHGFFFGGHHIIIIIIIIIIIJJJJJJJJKKKKKKLLLLLLLLLLLLMMMLLLLLMMMMMNNNNNNOOOOOOOOOO
69*666667789AABBAAA99999999AABBCDEFFGFFGGGHHHHHHHGGFFGHHIIIIIIIJJJJJJJJJJJJJKKKKKKLLLLLLLLLLLLLLLLLLLLLMMMMMNNNNNOOOOOOOOOO
68*5666677899ABBBAAAAAAA999ABCCCDEFGGGFGGHHHHHHHHGGFGGHIIIJJJJJJJJJJJJJJJJJKKKKKKKLLLLLLLLLLLLLLLLLLLLLLMMMMNNNNNNOOOOOOOOO
67*5566677889ABBBBBBBBBAAAABBCDDEFGGGGGGGHHHHHHHHGGGGHHIIJJJJJJJJJJJJJJJJJKKKKKKKLLLLLLLLLLLLLLLLLLLLKKKLMMMNNNNNNNOOOOOOOO
66*5566677889ABBCCBCCBBBBBBCCDEEEFGGGGGGGHHHIHHHGGGGHHIIJJJJJJJJJJJJJJJJJJKKKKKKKLLLLLLLLLLLMLMMMMMMLKKKLLMMNNNNNNNNOOOOOOO
65*55666777899ABCCCCCCCCCCCDDDEFFGGGGGGGGGHHIIHHGGGGHHIIJJJJJJJJJJJJJJJJJJKKKKKKLLLLLLLLLLMMMMMMMMMMLLKLLMMMNNNNNNNNNOOOOOO
64*55566777889AABBCCCCCDDDDDEEFFFGGGHHGGGGHHIIIHGGGGHHIJJJJJJJJJJJJJJJJJJKKKKKKKLLLLLLLLLMMMMMMMMMMMMMLLMMMMNNNNNNNNNNOOOOO
63*455666778899ABBBCCCDDDDDEEEFFFGGGHHHGGGHHIIHHGGGGHHIJJJJJJJJKKKKKKJJJKKKKKKKLLLLLLLLLMMMMMMMMMMMMMMMMMMMMNNNNNNNNNNNOOOO
62*455666778899AAABCCCDDDDDEEEEEFFGGHHHHHGHIIIHHGGGGHIIJJJJJJKKKKKKKKKKKKKKKKKKLLLLLLLLLMMMMMMMMMMMMMMMMMMMMNNNNNNNNNNNNNNN
61*445566778899AAAABCCCDDDDDDDDEEEFGGHHHHHHIIIHHGGGHHIIJJJJJKKKKKKKKKKKKKKKKKKKLLLLLLLLLMMMMMMMMMMMMMMMMMMMMMNNNNNNNNNNNNNN
60*445566778899AA9AABCCCCCCCDDDDDDEFGHHHHHIIIIIHGGHHIIJJJJJJJKKKKKKKKKKKKKKKKKKLLLLLLLLLMMMMMMMMMMMMMMMMMMMMMMNNNNNNNNNNNNN
59*4455667788999999AABBCCBBCCCCCCDDEFHHIIIIIIIIIHHHIIIJJJJJJJKKKKKKKKKKKKKKKKKLLLLLLLLLLMMMMMMMMMMMMMLLLLMMMMMNNNNNNNNNNNNN
58*44456677889998889ABBBBBBBBBBBBCDEFGHIIIIIIIIIHHIIIJJJJJJJJKKKKKKKKKKKKKKKKKLLLLLLLLLLMMMMMMMMMMMMMLLLLMMMMMNNNNNNNNNNNNN
57*444556778899877889ABBBAAABBAABCDEFGGHIIIIIIIIIIIJJJJJJJJJJKKKKKKKKKKKKKKKKKLLLLLLLLLLMMMMMMMMMMMMMLLLLMMMMMNNNNNNNNNNNNN
56*4444566778888777899AAAA9AAAAAABDEEFGHHHIIIIIIIIJJJJJJJJJJJKKKKKKKKKKKKKKKKKLLLLLLLLLLMMMMMMMMMMMMMLLLLMMMMMNNNNNNNNNNNNN
55*4444566778888766789AAA9999999ABCDEFFGGHHIIIIIIIJJJJJJJJJJJKKKKKKKKKKKKKKKKKLLLLLLLLLLLMMMMMMMMMMMMLLLMMMMMMMNNNNNNNNNNNN
54*44445567788887667889A99899999ABCDDEFFGGHHIIIIIJJJJJJJJJJJKKKKKKKKKKKKKKKKKLLLLLLLLLLLLLMMMMMMMLLLLLLMMMMMMMMNNNNNNNNNNNN
53*44444567788887666788998888999AABCDDEFGGHHIIIIIJJJJJJJJJJJKKKKKKKKKKKKKKKKKLLLLLLLLLLLLLLLLMMMMLLLLLLMMMMMMMMNNNNNNNNNNNM
52*44444566778887666778888888999ABCDDDEFGHHIIIIIIJJJJJJJJJJJKKKKKKKKKKKKKKKKKLLLLLLLLLLLLLLLLLLLLLLLLLLMMMMMMMMMMMNNNNNNMMM
51*4444445677887766667788888899AABCDEEFGGHHHIIIIIIJJJIIJJJJKKKKKKKKKKKKKKKKKKLLLLLLLLLLLLLLLLLLLLLLLLLLMMMMMMMMMMMMMMMMMMMM
50*4444445667777765566777778899ABBCDDEFGGGHHHHIIIIIIIIIIJJJJKKKKKKKKKKKKKKKKKLLLLLLLLLLLLLLLLLLLLLLLLLLMMMMMMMMMMMMMMMMMMMM
49*44444455677776655556677788899ABCCDEFFFGGGGHHIIIIIIIIJJJJJJKKKKKKKKKKKKKKKLLLLLLLLLLLLLLLLLLLLLLLLLLMMMMMMMMMMMMMMMMMMMMM
48*44444445677776554455666778889ABBCDDEEFFFFGGHHIIIIIIIIJJJJJJKKKKKKKKKKKKKKKLLLLLLLLLLLLLLLLLLLLLLLLMMMMMMMMMMMMMMMMMMMMMM
47*444444456667665444455667788899ABCCDDEEEEEFGGHHIIHHIIIIJJJJJJJKKKKKKKKKKKKKLLLLLLLLLLLLLLLLLLLLLLMMMMMMMMMMMMMMMMMMLMMMMM
46*334444446666665544445567788899ABBBCCDCDDEFFGHHHHHHHIIIIJJJJJJJKKKKKKKKKKKKLLLLLLLLLLLLLLLLLLLLLMMMMMMMMMMMMMMMMMMLLLMMML
45*333444445666555444445567889999AABBBCCCCDEEFFGGGHHHIIIIIJJJJJJJKKKKKKKKKKKKLLLLLLKKKKKKLLLLLLLLMMMMMMMMMMMMMMMMMMMLLLLLLL
44*3334444466655444444456678999AAAABBBBCCCDDEFFFGGGHIIIIIIJJJJJJJKKKKKKKKKKKKKLLKKKKKKKKKKLLLLLLMMMMMMMMMMMMMMMMMMMMLLLLLLL
43*23334445665544444445567889AAAABBBBCCCCCDEEFFFGGHHIIIIIIIJJJJJJKKKKKKKKKKKKKKKKKKKKKKKKKLLLLLMMMMMMMMMMMMMMMMLLMMMLLLLLLL

Open Pit Optimization Training Workbook Page 5—3

Section 5—Floating Cone Example Using Grade Item

* MICRO SYMBOL MAP OF DIPPER SURFACE MSOPDP.P00 *

SYMBOL LEVEL CREST

1 1 2960.0
2 2 2945.0
3 3 2930.0
4 4 2915.0
5 5 2900.0
6 6 2885.0
7 7 2870.0
8 8 2855.0
9 9 2840.0
A 10 2825.0
B 11 2810.0
C 12 2795.0
D 13 2780.0
E 14 2765.0
F 15 2750.0
G 16 2735.0
H 17 2720.0
I 18 2705.0
J 19 2690.0
K 20 2675.0
L 21 2660.0
M 22 2645.0
N 23 2630.0
O 24 2615.0
P 25 2600.0

Symbol for RESTRICTED surface is -

Symbol for MISSING surface is ?

Page 5—4 Open Pit Optimization Training Workbook

 Section 5—Floating Cone Example Using Grade Item

Step 3 Checking B-file

Generate printer symbol maps of EQCU grades on selected benches. Use

program M722V1.

From the MEDSManager menu select:

Group = DIPPER MINE PLANS

Operations = Plot
Procedure Desc. = B-File Symbol Maps - p72290.dat
Panels:

Open Pit Optimization Training Workbook Page 5—5

Section 5—Floating Cone Example Using Grade Item

Output (benches 21 and 24):

Symbol Legend

Interval
## Minimum Maximum Symbol
1 0.000+ 0.200 0
2 0.200+ 0.400 1
3 0.400+ 0.600 2
4 0.600+ 0.800 3
5 0.800+ 1.000 4
6 1.000+ 1.200 5
7 1.200+ 1.400 6
8 1.400+ 1.600 7
9 1.600+ 1.800 8
10 1.800+ 2.000 9
11 2.000+ 2.200 A
12 2.200+ 2.400 B
13 2.400+ 2.600 C
14 2.600+ 2.800 D
15 2.800+ 3.000 E
16 3.000+ 3.200 F
17 3.200+ 3.400 G
18 3.400+ 3.600 H
19 3.600+ 3.800 I
20 3.800+ 4.000 J
21 4.000+ 4.200 K
22 4.200+ 4.400 L
23 4.400+ 4.600 M
24 4.600+ 4.800 N
25 4.800+ 5.000 O
26 5.000+ 5.200 P
27 5.200+ 5.400 Q
28 5.400+ 5.600 R
29 5.600+ 5.800 S
30 5.800+ 6.000 T
31 6.000+ 6.200 U
32 6.200+ 6.400 V
33 6.400+ 6.600 W
34 6.600+ 6.800 X
35 6.800+ 7.000 Y
36 7.000+ 7.200 Z
37 7.200+ ABOVE $
"." = Below Surface "BLANK" = Above Surface

Page 5—6 Open Pit Optimization Training Workbook

 Section 5—Floating Cone Example Using Grade Item
MINESIGHT OPEN PIT DEMONSTRATION PROJECT

** DIPPER SYMBOL MAPS FOR BENCHES **

Bench 21 from MSOPDP.BLK Under surface MSOPDP.P00

000000000000000000000000000000000000000000000000000000000000111111111111111111111
444444444455555555556666666666777777777788888888889999999999000000000011111111112
012345678901234567890123456789012345678901234567890123456789012345678901234567890
+ + + + + + + + + + + + + + + +
100*....................................................................... .......
99*................................................................... ... ....
98*................................................................. ...
97*.................................................................. .
96*..................................................................
95*.................................................................
94*...........................................................
93*........................................................... .
92*......................................................... ...
91*........................................................ ....
90*....................................................... ....
89*....................................................... ...
88*......................................................
87*......................................................
86*....................................................
85*....................................................
84*...................................................
83*...................................................
82*.....................................................
81*.......................................................
80*.......................................................
79*......................................................
78*.....................................................
77*...................................................
76*..................................................
75*................................................
74*................................................
73*................................................
72*................................................ 45
71*................................................ ..45
70*.................................................... ...46
69*..........................................................467
68*..........................................................4568
67*.............................................2............45788
66*............................................332... . 797888
65*............................................332. .798.
64*............................................32. 98
63*............................................3.
62*............................................33
61*...................................2.......333
60*...................................33333343434
59*...................................33333444433 ..67
58*...................................3333344.43. ..66
57*...................................3333344.4.. 6566
56*.................................33333334443.. ...5
55*................................33333334344.... ...
54*...................................33333444..... ......
53*........................................4444....... ......
52*........................................3444.................
51*..........................................3..................
50*.............................................................
49*..........................................3.................
48*.........................................333...............
47*.........................................333............. .
46*...................................3.....333............ ... .
45*.........................................333........... .......
44*............................................0000...... .......
43*..........................33..............000022..... .. .......
42*...........................3................02232... ............
41*..................................................... ............
40*...................................................... .. .............
39*....................................................... ..................
38*....................................................... ..................
37*......................................................... ..................
36*.......................................................... .................
35*.......................................................... .................
34*........................................................... ..................
33*............................................................. ..................
32*.................................................................................
31*.................................................................................
30*.................................................................................
29*.................................................................................
28*.................................................................................
27*.................................................................................
26*.................................................................................
25*.................................................................................
24*.................................................................................
23*.................................................................................
22*.................................................................................
21*.................................................................................
20*.................................................................................
+ + + + + + + + + + + + + + + +
000000000000000000000000000000000000000000000000000000000000111111111111111111111
444444444455555555556666666666777777777788888888889999999999000000000011111111112
012345678901234567890123456789012345678901234567890123456789012345678901234567890

Open Pit Optimization Training Workbook Page 5—7

Section 5—Floating Cone Example Using Grade Item
** DIPPER SYMBOL MAPS FOR BENCHES **

Bench 24 from MSOPDP.BLK Under surface MSOPDP.P00

000000000000000000000000000000000000000000000000000000000000111111111111111111111
444444444455555555556666666666777777777788888888889999999999000000000011111111112
012345678901234567890123456789012345678901234567890123456789012345678901234567890
+ + + + + + + + + + + + + + + +
100*.................................................................................
99*.................................................................................
98*.................................................................................
97*.................................................................................
96*.................................................................................
95*.................................................................................
94*.................................................................................
93*.................................................................................
92*.................................................................................
91*.................................................................................
90*.................................................................................
89*.................................................................................
88*.................................................................................
87*.................................................................................
86*.................................................................................
85*.................................................................................
84*.................................................................................
83*.................................................................................
82*.................................................................0...............
81*..............................................................0000...............
80*............................................................0020000..............
79*...........................................................00022200..............
78*..........................................................000243200..............
77*..........................................................00544342...............
76*.........................................................006654442...............
75*........................................................0788655442...............
74*..................................................00333457788765552..............
73*..............................................45443333346778987776333...........
72*.............................................4454433333457899977763332...........
71*............................................444443333333348DB988774432...........
70*............................................4433333332304.7CCA98B7563............
69*...........................................444333332.222748CDDFF77653............
68*........................................44444433332....3ACCDEGFGG6632............
67*......................................4444444433322....34CDDEHHHG6632............
66*.....................................4444444444443...62444FIEFEB777430...........
65*.....................................444444445444121.254406JKDEB88A430...........
64*....................................444444444555513222567887IIBA887432...........
63*...................................444444334456554222347AC94IJK88844432..........
62*...................................4444444344555553333579A744KL88884432..........
61*...................................44444444455599545346766765HHH888832...........
60*...................................44444555555569555356653F86FEF78888............
59*...................................44445567655455944216666888FEF88888............
58*...................................43345678755444944345GGGH889A888788............
57*...................................4334567875543443334FGGGH789B99877.............
56*.................................003444567765444443334FGGH87789866...............
55*................................000444555666544443..34557A7589973................
54*.........................2222......04455566654444....355676567864................
53*.........................22222........45566654444.....34444456654................
52*.........................222222.......44566654443......3433246653................
51*..........................22222...2223.445555444........33334555.................
50*...........................2332...23....4555544...........34444..................
49*...........................3332....3....4555543.........33334222.................
48*..........................23332.........455543.........3444323322................
47*.........................22333........34555543......2.23443323332................
46*.........................233332....0.034455443........2333322332.................
45*........................22333322.....03444444..........333.22222.................
44*........................233333332.....0344440000........33...222.................
43*.........................332333332.....033430000.................................
42*.........................233333332......333300000................................
41*...........................3333322......3333.....................................
40*...........................23222.........333.....................................
39*............................222.........30.......................................
38*........................................22.......................................
37*.................................................................................
36*.................................................................................
35*.................................................................................
34*.................................................................................
33*.................................................................................
32*.................................................................................
31*.................................................................................
30*.................................................................................
29*.................................................................................
28*.................................................................................
27*.................................................................................
26*.................................................................................
25*.................................................................................
24*.................................................................................
23*.................................................................................
22*.................................................................................
21*.................................................................................
20*.................................................................................
+ + + + + + + + + + + + + + + +
000000000000000000000000000000000000000000000000000000000000111111111111111111111
444444444455555555556666666666777777777788888888889999999999000000000011111111112
012345678901234567890123456789012345678901234567890123456789012345678901234567890

Step 4 B-File Geologic Reserves

Use program M723V.

Page 5—8 Open Pit Optimization Training Workbook

 Section 5—Floating Cone Example Using Grade Item

From the MEDSManager menu select:

Group = DIPPER MINE PLANS

Operations = Report
Procedure Description = Reserves (DIPPER) - p72390.dat

Panels (that need to be filled in)

Output (from report file; File DIPRES.SUM is in Scheduling program

M805V1 format):
Bench Total C U T O F F G R A D E S

0.200 0.400 0.600 0.800

Open Pit Optimization Training Workbook Page 5—9

Section 5—Floating Cone Example Using Grade Item
2660 259. ORE 259. 259. 178. 0.
# 20 GRADE 0.605 0.605 0.623 0.000
2645 2511. ORE 2511. 2511. 2349. 1085.
# 21 GRADE 0.876 0.876 0.899 1.142
2630 8084. ORE 8084. 8084. 6723. 4601.
# 22 GRADE 1.035 1.035 1.137 1.347
2615 12523. ORE 12523. 12490. 10676. 6610.
# 23 GRADE 1.062 1.064 1.154 1.430
2600 14953. ORE 14953. 14888. 13057. 9817.
# 24 GRADE 1.133 1.136 1.220 1.390
2585 16913. ORE 16913. 16880. 14693. 11178.
# 25 GRADE 1.132 1.133 1.222 1.384
2570 19343. ORE 19343. 19327. 16200. 12053.
# 26 GRADE 1.102 1.102 1.210 1.385
2555 21141. ORE 21141. 21141. 17480. 13948.
# 27 GRADE 1.119 1.119 1.242 1.381
2540 22194. ORE 22194. 22194. 17852. 15098.
# 28 GRADE 1.151 1.151 1.298 1.412
2525 23085. ORE 23085. 23085. 19877. 15390.
# 29 GRADE 1.173 1.173 1.274 1.450
2510 22939. ORE 22939. 22923. 21465. 16880.
# 30 GRADE 1.229 1.229 1.277 1.439
2495 24154. ORE 24154. 24057. 21222. 18079.
# 31 GRADE 1.242 1.245 1.342 1.454
2480 24365. ORE 24365. 24349. 21028. 18614.
# 32 GRADE 1.255 1.255 1.369 1.455
2465 24089. ORE 24089. 24089. 21352. 18679.
# 33 GRADE 1.291 1.291 1.390 1.488
2450 24073. ORE 24073. 24057. 21044. 19213.
# 34 GRADE 1.330 1.330 1.446 1.517
2435 22939. ORE 22939. 22939. 20947. 18727.
# 35 GRADE 1.334 1.334 1.412 1.498
2420 22615. ORE 22615. 22615. 21384. 18808.
# 36 GRADE 1.364 1.364 1.414 1.512
2405 22923. ORE 22923. 22923. 21854. 19570.
# 37 GRADE 1.435 1.435 1.481 1.572
2390 22777. ORE 22777. 22745. 21578. 20444.
# 38 GRADE 1.519 1.521 1.575 1.625
2375 22810. ORE 22810. 22777. 21708. 19894.
# 39 GRADE 1.528 1.529 1.579 1.658
2360 22874. ORE 22874. 22874. 21595. 19991.
# 40 GRADE 1.484 1.484 1.541 1.607
2345 22486. ORE 22486. 22453. 21416. 19408.
# 41 GRADE 1.442 1.444 1.489 1.571
2330 22891. ORE 22891. 22891. 22113. 20396.
# 42 GRADE 1.379 1.379 1.409 1.471
2315 22502. ORE 22502. 22502. 21870. 20412.
# 43 GRADE 1.296 1.296 1.319 1.365
2300 20428. ORE 20428. 20428. 20250. 19586.
# 44 GRADE 1.302 1.302 1.308 1.328
2285 20088. ORE 20088. 20088. 19861. 18484.
# 45 GRADE 1.313 1.313 1.322 1.367
2270 19067. ORE 19067. 19067. 18468. 17204.
# 46 GRADE 1.381 1.381 1.407 1.458
2255 16670. ORE 16670. 16670. 16313. 15277.
# 47 GRADE 1.461 1.461 1.481 1.534
2240 12992. ORE 12992. 12992. 12749. 12101.
# 48 GRADE 1.560 1.560 1.580 1.627
2225 9396. ORE 9396. 9396. 9137. 8230.
# 49 GRADE 1.511 1.511 1.539 1.631
2210 2641. ORE 2641. 2641. 2641. 2138.
# 50 GRADE 1.026 1.026 1.026 1.096
2195 2657. ORE 2657. 2657. 2381. 1280.
# 51 GRADE 0.744 0.744 0.763 0.822
2180 2932. ORE 2932. 2932. 2560. 113.
# 52 GRADE 0.715 0.715 0.737 0.807
2165 2981. ORE 2981. 2981. 2398. 0.
# 53 GRADE 0.630 0.630 0.645 0.000
2135 2122. ORE 2122. 2122. 1231. 0.
# 55 GRADE 0.628 0.628 0.715 0.000
2120 1847. ORE 1847. 1847. 1150. 551.
# 56 GRADE 0.689 0.689 0.803 0.870
2105 826. ORE 826. 826. 146. 16.
# 57 GRADE 0.533 0.533 0.678 0.980
2090 729. ORE 729. 729. 194. 0.
# 58 GRADE 0.522 0.522 0.615 0.000
2075 599. ORE 599. 599. 16. 0.
# 59 GRADE 0.488 0.488 0.600 0.000
2060 988. ORE 988. 988. 0. 0.
# 60 GRADE 0.492 0.492 0.000 0.000
2660 259. ORE 259. 259. 178. 0.
# 20 GRADE 0.605 0.605 0.623 0.000
2645 2770. ORE 2770. 2770. 2527. 1085.
# 21 GRADE 0.851 0.851 0.879 1.142
2630 10854. ORE 10854. 10854. 9250. 5686.
# 22 GRADE 0.988 0.988 1.067 1.308
2615 23377. ORE 23377. 23344. 19926. 12296.
# 23 GRADE 1.028 1.029 1.113 1.374
2600 38329. ORE 38329. 38232. 32983. 22113.
# 24 GRADE 1.069 1.070 1.156 1.381
2585 55242. ORE 55242. 55112. 47677. 33291.
# 25 GRADE 1.088 1.090 1.176 1.382
2570 74585. ORE 74585. 74439. 63877. 45344.
# 26 GRADE 1.092 1.093 1.185 1.383
2555 95726. ORE 95726. 95580. 81356. 59292.
# 27 GRADE 1.098 1.099 1.197 1.382
2540 117920. ORE 117920. 117774. 99209. 74390.
# 28 GRADE 1.108 1.109 1.215 1.388
2525 141005. ORE 141005. 140859. 119086. 89780.
# 29 GRADE 1.118 1.119 1.225 1.399
2510 163944. ORE 163944. 163782. 140551. 106661.
# 30 GRADE 1.134 1.135 1.233 1.405
2495 188098. ORE 188098. 187839. 161773. 124740.
# 31 GRADE 1.148 1.149 1.247 1.412
2480 212463. ORE 212463. 212188. 182801. 143354.
# 32 GRADE 1.160 1.161 1.261 1.418

Page 5—10 Open Pit Optimization Training Workbook

 Section 5—Floating Cone Example Using Grade Item
2465 236552. ORE 236552. 236277. 204152. 162032.
# 33 GRADE 1.173 1.174 1.275 1.426
2450 260626. ORE 260626. 260334. 225196. 181246.
# 34 GRADE 1.188 1.189 1.291 1.436
2435 283565. ORE 283565. 283273. 246143. 199973.
# 35 GRADE 1.200 1.200 1.301 1.441
2420 306180. ORE 306180. 305888. 267527. 218781.
# 36 GRADE 1.212 1.213 1.310 1.448
2405 329103. ORE 329103. 328811. 289381. 238351.
# 37 GRADE 1.227 1.228 1.323 1.458
2390 351880. ORE 351880. 351556. 310959. 258795.
# 38 GRADE 1.246 1.247 1.340 1.471
2375 374690. ORE 374690. 374333. 332667. 278689.
# 39 GRADE 1.263 1.264 1.356 1.484
2360 397564. ORE 397564. 397208. 354262. 298679.
# 40 GRADE 1.276 1.277 1.367 1.493
2345 420050. ORE 420050. 419661. 375678. 318087.
# 41 GRADE 1.285 1.286 1.374 1.497
2330 442940. ORE 442940. 442552. 397791. 338483.
# 42 GRADE 1.290 1.291 1.376 1.496
2315 465442. ORE 465442. 465053. 419661. 358895.
# 43 GRADE 1.290 1.291 1.373 1.488
2300 485870. ORE 485870. 485482. 439911. 378481.
# 44 GRADE 1.291 1.291 1.370 1.480
2285 505958. ORE 505958. 505570. 459772. 396965.
# 45 GRADE 1.292 1.292 1.368 1.475
2270 525026. ORE 525026. 524637. 478240. 414169.
# 46 GRADE 1.295 1.295 1.370 1.474
2255 541696. ORE 541696. 541307. 494554. 429446.
# 47 GRADE 1.300 1.301 1.373 1.476
2240 554688. ORE 554688. 554299. 507303. 441547.
# 48 GRADE 1.306 1.307 1.378 1.480
2225 564084. ORE 564084. 563695. 516440. 449777.
# 49 GRADE 1.309 1.310 1.381 1.483
2210 566725. ORE 566725. 566336. 519080. 451915.
# 50 GRADE 1.308 1.309 1.380 1.481
2195 569381. ORE 569381. 568993. 521462. 453195.
# 51 GRADE 1.305 1.306 1.377 1.479
2180 572314. ORE 572314. 571925. 524021. 453308.
# 52 GRADE 1.302 1.303 1.374 1.479
2165 575294. ORE 575294. 574906. 526419. 453308.
# 53 GRADE 1.299 1.300 1.370 1.479
2150 575294. ORE 575294. 574906. 526419. 453308.
# 54 GRADE 1.299 1.300 1.370 1.479
2135 577417. ORE 577417. 577028. 527650. 453308.
# 55 GRADE 1.296 1.297 1.369 1.479
2120 579263. ORE 579263. 578875. 528800. 453859.
# 56 GRADE 1.295 1.295 1.367 1.478
2105 580090. ORE 580090. 579701. 528946. 453875.
# 57 GRADE 1.293 1.294 1.367 1.478
2090 580819. ORE 580819. 580430. 529141. 453875.
# 58 GRADE 1.292 1.293 1.367 1.478
2075 581418. ORE 581418. 581029. 529157. 453875.
# 59 GRADE 1.292 1.292 1.367 1.478
2060 582406. ORE 582406. 582017. 529157. 453875.
# 60 GRADE 1.290 1.291 1.367 1.478

Open Pit Optimization Training Workbook Page 5—11

Section 5—Floating Cone Example Using Grade Item

Step 5 Reserves using M608V1

Geologic Reserves can also be calculated using M608V1. We will only use
blocks with Ore Type 1 and 2.

From the MEDSManager menu select:

Group = STATISTICS
Operations = Calculations
Procedure = Statistics (MODEL) - p60801.dat

Panels (that need to be filled in)

Page 5—12 Open Pit Optimization Training Workbook

 Section 5—Floating Cone Example Using Grade Item

Output (compare results with the output from Step 4)

EQCU BLOCKS
CUTOFF ABOVE CUTOFF MEAN S.T.D.

0.200 582406.2 100.0000 1.2903 0.5807 EQCU

0.400 582017.4 99.9332 1.2909 0.5804 EQCU

0.600 529156.8 90.8570 1.3670 0.5536 EQCU

0.800 453875.4 77.9311 1.4784 0.5191 EQCU

MIN. data VALUE = 0.3100

MAX. data VALUE = 4.8600
Std. deviation = 0.5807

Open Pit Optimization Training Workbook Page 5—13

Section 5—Floating Cone Example Using Grade Item

Distribution of EQCU by BENCH

BENCH NUMBER MEAN STD.DEV.

2660.00 259.200 0.6050 0.0290

2645.00 2511.000 0.8761 0.3287
2630.00 8083.800 1.0352 0.5488
2615.00 12522.601 1.0619 0.6049
2600.00 14952.601 1.1327 0.6847
2585.00 16912.801 1.1318 0.6522
2570.00 19342.801 1.1016 0.6031
2555.00 21141.001 1.1195 0.6033
2540.00 22194.001 1.1507 0.6000
2525.00 23085.001 1.1726 0.5937
2510.00 22939.201 1.2287 0.5836
2495.00 24154.201 1.2420 0.5715
2480.00 24364.801 1.2546 0.5397
2465.00 24089.401 1.2915 0.5486
2450.00 24073.201 1.3298 0.5969
2435.00 22939.201 1.3345 0.6156
2420.00 22615.201 1.3642 0.6244
2405.00 22923.001 1.4352 0.6366
2390.00 22777.201 1.5194 0.5915
2375.00 22809.601 1.5277 0.5924
2360.00 22874.401 1.4836 0.5749
2345.00 22485.601 1.4422 0.5615
2330.00 22890.601 1.3792 0.4961
2315.00 22501.801 1.2962 0.3733
2300.00 20428.201 1.3016 0.3174
2285.00 20088.001 1.3131 0.3821
2270.00 19067.401 1.3805 0.4452
2255.00 16669.801 1.4608 0.5195
2240.00 12992.401 1.5603 0.5643
2225.00 9396.000 1.5114 0.5880
2210.00 2640.600 1.0256 0.2026
2195.00 2656.800 0.7438 0.0895
2180.00 2932.200 0.7152 0.0771
2165.00 2980.800 0.6301 0.0403
2135.00 2122.200 0.6277 0.1173
2120.00 1846.800 0.6889 0.1602
2105.00 826.200 0.5327 0.0846
2090.00 729.000 0.5218 0.0591
2075.00 599.400 0.4878 0.0244
2060.00 988.200 0.4921 0.0157

Page 5—14 Open Pit Optimization Training Workbook

 Section 5—Floating Cone Example Using Grade Item

Step 6 Generate series of DIPPER pits

Use variable copper price to create different pits. Use program M720V1.

From MEDSManager select:

Run $ Single Run $ Enter Name only $ P72001.DAT

Panels (that need to be filled in):

Open Pit Optimization Training Workbook Page 5—15

Section 5—Floating Cone Example Using Grade Item

Page 5—16 Open Pit Optimization Training Workbook

 Section 5—Floating Cone Example Using Grade Item

Open Pit Optimization Training Workbook Page 5—17

Section 5—Floating Cone Example Using Grade Item

Step 7 Display pit surfaces

We are going to display/plot the surfaces that were created from previous
run and make an ASCII VBM input file for each one of the surfaces. Use
program M721V2.

From the MEDSManager menu select:

Group = DIPPER MINE PLANS

Operations = Plot
Procedure Desc. = Plot DIPPER Plan Pit - plndip.dat

Panels

Page 5—18 Open Pit Optimization Training Workbook

 Section 5—Floating Cone Example Using Grade Item

Output

Step 8 Use Multi-Run to display the other 5 pits:

From MEDSManager select:

Run $Multiple Run$ Set up New Multirun

Panels:

Open Pit Optimization Training Workbook Page 5—19

Section 5—Floating Cone Example Using Grade Item

Page 5—20 Open Pit Optimization Training Workbook

 Section 5—Floating Cone Example Using Grade Item

Output for P02 ($.26 net value) and P03 ($0.32 net value)

Open Pit Optimization Training Workbook Page 5—21

Section 5—Floating Cone Example Using Grade Item

Modify the Multi-Run created above to create an ASCII VBM input file for
each DIPPER Pit. For the VBM files lets output every bench instead of
every other one. See the table below for suggested file names and VBM
Feature codes.

Beginning Ending VBM Input Feature

Surface Surface file Code
MSOPDP.P00 MSOPFC.P01 P20.VBM 701
MSOPDP.P00 MSOPFC.P02 P26.VBM 702
MSOPDP.P00 MSOPFC.P03 P32.VBM 703
MSOPDP.P00 MSOPFC.P04 P38.VBM 704
MSOPDP.P00 MSOPFC.P05 P44.VBM 705
MSOPDP.P00 MSOPFC.P06 P50.VBM 706

Step 9 Vertical Sections of Pits

From MEDSManager menu select:

Group = DIPPER MINE PLANS

Operations = Plot
Procedure Desc. = Plot DIPPER Pit Sections - secdip.dat

Panels

Page 5—22 Open Pit Optimization Training Workbook

 Section 5—Floating Cone Example Using Grade Item

Output

Open Pit Optimization Training Workbook Page 5—23

Section 5—Floating Cone Example Using Grade Item

Step 10 Merge DIPPER surface with topo and store in file13.

Use program M729V1

From the MEDSManager menu select:

Group = DIPPER MINE PLANS

Operations = Data Convert
Procedure Desc. = S-File TO 2D Grid - p72993.dat

Panels:

Page 5—24 Open Pit Optimization Training Workbook

 Section 5—Floating Cone Example Using Grade Item

Step 11 Contour and plot surface from previous step

Use program M607V1

From the MEDSManager menu select:

Group = 2D TOPO
Operations = Plot
Procedure Desc. = Plot 2D Grid Contour - p60702.dat

Panels (that need to be filled in):

Open Pit Optimization Training Workbook Page 5—25

Section 5—Floating Cone Example Using Grade Item

Output

MineSight® can be used for displaying surface.

Start MS2 and create a new model view. Name the view pit06. Select
the PCF and File 13. Pick item pit1. Adjust properties as desired.

Page 5—26 Open Pit Optimization Training Workbook

 Section 5—Floating Cone Example Using Grade Item

Step 12 Calculate DIPPER pit reserves and perform DIPPER pit economic
analysis.

Use programs M723V1 and M806V1

From tht MEDSManager menu select:

Group = DIPPER MINE PLANS

Operations = Calculations
Procedure Desc. = Schedules (DIPPER) - p80690.dat

Panels

Open Pit Optimization Training Workbook Page 5—27

Section 5—Floating Cone Example Using Grade Item

Output

File TTY723.OUT
This printout lists the total tonnage between the original surface and each
DIPPER pits surface. The total tonnage numbers increase as you go from
the first to the last shell indicating the cumulative nature of this summary
file. For each pit shell the total tonnage is broken up into ore and waste
based on cutoff grade and a profit is calculated based on the copper price
selected for the analysis. (In our case $0.78 copper). An example is shown
below:
Bench Total C U T O F F G R A D E S
0.812
2480 26406000. ORE 22696200.
# 32 GRADE 1.991
WASTE 3709800.
S.R. 0.163
PROFT 192470736.

Bench Total C U T O F F G R A D E S
0.812
2420 67780800. ORE 47368800.
# 36 GRADE 1.836
WASTE 20412000.
S.R. 0.431
PROFT 324824448.

Bench Total C U T O F F G R A D E S
0.812
2210 628462784. ORE 299132992.
# 50 GRADE 1.568
WASTE 329329792.
S.R. 1.101
PROFT 1140204544.

Bench Total C U T O F F G R A D E S
0.812
2210 796942784. ORE 348494400.
# 50 GRADE 1.552
WASTE 448448384.
S.R. 1.287
PROFT 1203564032.

Bench Total C U T O F F G R A D E S
0.812
2195 927271808. ORE 379225792.
# 51 GRADE 1.537
WASTE 548046016.
S.R. 1.445
PROFT 1190102016.

Bench Total C U T O F F G R A D E S
0.812
21201027306816. ORE 397677600.
# 56 GRADE 1.526
WASTE 629629184.
S.R. 1.583
PROFT 1146164736.

Page 5—28 Open Pit Optimization Training Workbook

 Section 5—Floating Cone Example Using Grade Item

File PLT806.POA
This file contains graphs of the information contained in File TTY723.DAT.
Net Value (i.e., PROFT), Strip Ratio, Grade, and Ore are plotted against
total pit tonnes for each cut-off grade. The Net Value numbers are based on
a copper price of $0.78. Notice how the shells generated from a higher
copper price in the floating cone program now show a negative profit when
evaluated at the $0.78 price. The Net Value graph is shown below.

File DIPRES
This file contains a bench-by-bench breakdown of the total tonnage between
the original surface topography and each DIPPER pit surface. For each
DIPPER pit two breakdowns are given; a bench-by-bench incremental and a
bench-by-bench cumulative (i.e., running total). Examples are given below:

Open Pit Optimization Training Workbook Page 5—29

Section 5—Floating Cone Example Using Grade Item
Bench Total C U T O F F G R A D E S

0.812

2660 113400. ORE 0.

# 20 GRADE 0.000
WASTE 113400.
S.R. 0.000
PROFT -136080.

2645 1522800. ORE 599400.

# 21 GRADE 1.372
WASTE 923400.
S.R. 1.541
PROFT 986461.

2630 4681800. ORE 3272400.

# 22 GRADE 1.517
WASTE 1409400.
S.R. 0.431
PROFT 13713544.

2615 4876200. ORE 4017600.

# 23 GRADE 1.682
WASTE 858600.
S.R. 0.214
PROFT 23432484.

Table 2. C U M U L A T I V E R E S E R V E S

Block & Pit Files = MSOPDP.BLK MSOPFC.P01

Topography Matrix = MSOPDP.P00
Tonnage Factor = 0.3704

Bench Total C U T O F F G R A D E S

0.812

2660 113400. ORE 0.

# 20 GRADE 0.000
WASTE 113400.
S.R. 0.000
PROFT -136080.

2645 1636200. ORE 599400.

# 21 GRADE 1.372
WASTE 1036800.
S.R. 1.730
PROFT 850381.

2630 6318000. ORE 3871800.

# 22 GRADE 1.495
WASTE 2446200.
S.R. 0.632
PROFT 14563924.

2615 11194200. ORE 7889400.

# 23 GRADE 1.590
WASTE 3304800.
S.R. 0.419
PROFT 37996416.

Page 5—30 Open Pit Optimization Training Workbook

 Section 5—Floating Cone Example Using Grade Item

File RPT806.LA
This file contains reserve information and scheduling information. Reserve
information includes the same cumulative numbers as presented in File
TTY723.DAT plus incremental tonnages for each DIPPER pit (i.e., tonnage
between individual DIPPER pits such as P01 and P02, P02 and P03, etc.).
Note that in the output the following file naming correspondence applies:

P01.TMP = MSOPFC.P01 pit P04.TMP = MSOPFC.P04 pit

P02.TMP = MSOPFC.P02 pit P05.TMP = MSOPFC.P05 pit
P03.TMP = MSOPFC.P03 pit P06.TMP = MSOPFC.P06 pit

Examples are shown below:

PIT EVALUATION AT $0.38 NET VALUE

CUT-OFF 1 FOR CASHFLOW CALCULATIONS

METAL CONVERSION FACTOR = 22.04

METAL VALUE $/UNIT REC. = 0.38
METAL RECOVERY % = 100.00
MINE & MILL COST $/TON ORE= 8.00
MINING COST $/TON WASTE = 1.20

RESERVES FOR PIT P01.TMP

TOTAL TONS 26406.

CUTOFF# ORE GRADE VALUE COSTS PROFIT S.R. $/TN

0.812 22696. 1.991 378492. 186021. 192471. 0.163 8.480

INCREMENTAL RESERVES TOTAL TONS = 26406.

CUTOFF# ORE GRADE VALUE COSTS PROFIT S.R. $/TN

0.812 22696. 1.991 378492. 186021. 192471. 0.163 8.480

RESERVES FOR PIT P02.TMP

TOTAL TONS 67781.

CUTOFF# ORE GRADE VALUE COSTS PROFIT S.R. $/TN

0.812 47369. 1.836 728269. 403445. 324824. 0.431 6.857

INCREMENTAL RESERVES TOTAL TONS = 41375.

CUTOFF# ORE GRADE VALUE COSTS PROFIT S.R. $/TN

0.812 24673. 1.693 349777. 217423. 132354. 0.677 5.364

RESERVES FOR PIT P03.TMP

TOTAL TONS 628463.

CUTOFF# ORE GRADE VALUE COSTS PROFIT S.R. $/TN

0.812 299133. 1.568 3928464. 2788260. 1140205. 1.101 3.812

INCREMENTAL RESERVES TOTAL TONS = 560682.

CUTOFF# ORE GRADE VALUE COSTS PROFIT S.R. $/TN

Open Pit Optimization Training Workbook Page 5—31

Section 5—Floating Cone Example Using Grade Item
0.812 251764. 1.518 3200194. 2384815. 815380. 1.227 3.239

RESERVES FOR PIT P04.TMP

TOTAL TONS 796943.

CUTOFF# ORE GRADE VALUE COSTS PROFIT S.R. $/TN

0.812 348494. 1.552 4529658. 3326093. 1203565. 1.287 3.454

INCREMENTAL RESERVES TOTAL TONS = 168480.

CUTOFF# ORE GRADE VALUE COSTS PROFIT S.R. $/TN

0.812 49361. 1.454 601193. 537834. 63359. 2.413 1.284

RESERVES FOR PIT P05.TMP

TOTAL TONS 927272.

CUTOFF# ORE GRADE VALUE COSTS PROFIT S.R. $/TN

0.812 379226. 1.537 4881563. 3691462. 1190101. 1.445 3.138

INCREMENTAL RESERVES TOTAL TONS = 130329.

CUTOFF# ORE GRADE VALUE COSTS PROFIT S.R. $/TN

0.812 30731. 1.367 351906. 365368. -13462. 3.241 -0.438

RESERVES FOR PIT P06.TMP

TOTAL TONS 1027307.

CUTOFF# ORE GRADE VALUE COSTS PROFIT S.R. $/TN

0.812 397678. 1.526 5083142. 3936976. 1146166. 1.583 2.882

INCREMENTAL RESERVES TOTAL TONS = 100035.

CUTOFF# ORE GRADE VALUE COSTS PROFIT S.R. $/TN

0.812 18452. 1.304 201577. 245514. -43937. 4.421 -2.381

----------------------------------------------------------------------------
PIT EVALUATION AT $0.38 NET VALUE
CUT-OFF 1 FOR CASHFLOW CALCULATIONS
YEAR * YEARLY SCHEDULE * CUMULATIVE SCHEDULE * STOCKPILE * PIT LEVEL STRIPPING RATIOS *
* * * * YEARLY CUMUL PLAN*
* ORE EQCU WASTE TOTAL * ORE EQCU WASTE TOTAL * TONS EQCU * *
* * * * *

1 0. 0.000 10000. 10000. 0. 0.000 10000. 10000. 6905. 1.577 P01.TMP 23 0.000 0.000 1.000
2 25000. 1.852 16481. 41481. 25000. 1.852 26481. 51481. 6905. 1.577 P02.TMP 27 0.659 1.059 1.000
3 25000. 1.572 161713. 186713. 50000. 1.712 188194. 238194. 6905. 1.577 P03.TMP 25 6.469 3.764 1.000
4 25000. 1.146 70117. 95117. 75000. 1.523 258311. 333311. 6905. 1.577 P03.TMP 28 2.805 3.444 1.000
5 25000. 1.284 31671. 56671. 100000. 1.463 289982. 389982. 6905. 1.577 P03.TMP 30 1.267 2.900 1.000
6 25000. 1.365 16533. 41533. 125000. 1.444 306515. 431515. 6905. 1.577 P03.TMP 32 0.661 2.452 1.000
7 25000. 1.429 10150. 35150. 150000. 1.441 316666. 466666. 6905. 1.577 P03.TMP 33 0.406 2.111 1.000
8 25000. 1.493 6071. 31071. 175000. 1.449 322737. 497737. 6905. 1.577 P03.TMP 35 0.243 1.844 1.000
9 25000. 1.557 4841. 29841. 200000. 1.462 327577. 527577. 6905. 1.577 P03.TMP 36 0.194 1.638 1.000
10 25000. 1.737 2902. 27902. 225000. 1.493 330480. 555480. 6905. 1.577 P03.TMP 38 0.116 1.469 1.000
11 25000. 1.851 2716. 27716. 250000. 1.529 333196. 583196. 6905. 1.577 P03.TMP 40 0.109 1.333 1.000
12 25000. 1.738 2388. 27388. 275000. 1.548 335584. 610584. 6905. 1.577 P03.TMP 44 0.096 1.220 1.000
13 25000. 1.685 111279. 136279. 300000. 1.559 446862. 746863. 6905. 1.577 P04.TMP 37 4.451 1.490 1.000
14 25000. 1.430 6630. 31630. 325000. 1.549 453492. 778492. 6905. 1.577 P04.TMP 43 0.265 1.395 1.000
15 25000. 1.460 96745. 121745. 350000. 1.543 550238. 900238. 6905. 1.577 P05.TMP 40 3.870 1.572 1.000
16 25000. 1.401 78397. 103397. 375000. 1.533 628635. 1003635. 6905. 1.577 P06.TMP 40 3.136 1.676 1.000
17 15772. 1.334 7900. 23672. 390772. 1.525 636535. 1027307. 6905. 1.577 P06.TMP 56 0.501 1.629 1.000

CUT-OFF 1 FOR CASHFLOW CALCULATIONS

YEAR METAL TOTAL PROCESS MINING PROFIT PV % PV % PV % PV % PV %

UNITS VALUE COST COST 0.0 5.0 10.0 15.0 20.0

1.50 0. 0. 0. 12000. -12000. -12000. -11153. -10401. -9730. -9129.

2.50 1020429. 387763. 200000. 19777. 167986. 155986. 137543. 121969. 108718. 97364.
3.50 865927. 329052. 200000. 194055. -65003. 90983. 82744. 75404. 68862. 63024.
4.50 631330. 239905. 200000. 84141. -44235. 46748. 47229. 46597. 45277. 43550.
5.50 707679. 268918. 200000. 38006. 30912. 77660. 70866. 64898. 59609. 54891.

Page 5—32 Open Pit Optimization Training Workbook

 Section 5—Floating Cone Example Using Grade Item
6.50 752377. 285903. 200000. 19840. 66064. 143724. 118975. 100454. 86242. 75088.
7.50 787560. 299273. 200000. 12180. 87092. 230816. 179379. 143066. 116774. 97276.
8.50 822743. 312643. 200000. 7285. 105357. 336173. 248970. 189929. 148891. 119644.
9.50 858004. 326041. 200000. 5809. 120233. 456406. 324605. 238546. 180761. 140915.
10.50 957096. 363696. 200000. 3483. 160213. 616620. 420592. 297441. 217691. 164536.
11.50 1019643. 387464. 200000. 3260. 184205. 800824. 525697. 358999. 254612. 187168.
12.50 957696. 363925. 200000. 2865. 161059. 961883. 613220. 407929. 282683. 203658.
13.50 928241. 352732. 200000. 133535. 19197. 981080. 623155. 413231. 285593. 205296.
14.50 787872. 299391. 200000. 7956. 91436. 1072516. 668223. 436188. 297643. 211797.
15.50 804596. 305747. 200000. 116094. -10348. 1062168. 663365. 433826. 296457. 211184.
16.50 771706. 293248. 200000. 94077. -828. 1061340. 662995. 433654. 296374. 211143.
17.50 463747. 176224. 126177. 9480. 40567. 1101907. 680268. 441307. 299890. 212812.

PLOTTING SCALES

ITEM MAXIMUM SCALE CAL-SCALE

TOTAL PIT TONS 1027307. 190242. 171218.
PIT ORE TONS 397678. 73644. 66280.
MAX GRADE 1.5262 0.2826 0.2544
MAX S.R. 1.5833 0.2932 0.2639
PIT PROFIT 1203565. 222882. 200594.

The scheduling information presented is a first-pass annual schedule

where the DIPPER pit shells are mined one at a time at whatever
annual total tonnage rate is needed to satisfy the mill feed requirement.
Thus during years when a shell is in ore there is very little stripping
being done whereas during years when a new shell is started all
the stripping needed to get down to the ore in order to satisfy the mill
feed requirement is done during these particular years resulting in
abnormally high total tonnage figures.

This first-pass scheduling information is useful in helping you

determine an average annual total tonnage mining rate that will smooth
out the schedule’s peaks and valleys. It also provides initial
information on when stripping of the subsequent shells has to start to
avoid being waste bound. More realistic scheduling using information
derived from this schedule can be done with Program M805V1 or
M821V1.

Open Pit Optimization Training Workbook Page 5—33

Section 5—Floating Cone Example Using Grade Item

Page 5—34 Open Pit Optimization Training Workbook

 Section 6—Varying Mining Cost by Bench

Section 6—Varying Mining Cost by Bench

Summary In this section we will redo the six DIPPER pits using the Variable Cost by
Bench option. Everything else will remain the same as in Section 5. We will
use the same procedure (p72001.dat) and Program (M720V1) as used in
Step 6 of Section 5. Before starting this example rename the following files
from Section 5 (e.g., S5) in order to preserve them:

RENAME
RUN720.F RUN720.S5
RPT720.LF RPT720.S5
MSOPFC.P01 MSOPS5.P01
MSOPFC.P02 MSOPS5.P02
..
..
..
MSOPFC.P06 MSOPS5.P06

A new set of DIPPER files can also be initialized. In such a case, use new
names for files B and S (e.g. MSOPS6.BLK and MSOPS6.P00).

Mining Costs By Mining costs will vary by bench according to the following table:
Bench

Starting Bench Ending Bench Ore Mining and Waste Mining Cost
Processing Cost
1 16 7.80 1.00
17 32 8.00 1.20
33 48 8.20 1.40
49 64 8.50 1.700

Open Pit Optimization Training Workbook Page 6—1

Section 6—Varying Mining Cost by Bench

Step 1 Run M720V1

From MEDSManager select:

Run ¢ Single Run ¢Enter Name only ¢ P72001.DAT

Panels (that need to be filled)

Page 6—2 Open Pit Optimization Training Workbook

 Section 6—Varying Mining Cost by Bench

Open Pit Optimization Training Workbook Page 6—3

Section 6—Varying Mining Cost by Bench

Page 6—4 Open Pit Optimization Training Workbook

 Section 6—Varying Mining Cost by Bench

When using the variable cost by bench please be aware that the mine and
mill cutoff grades will not vary accordingly. Over the complete range of
benches, they will retain the values determined from the net value, the base
ore mining and processing cost and the base waste mining cost.

Step 2 Check and compare results

Compare the results from this example (RPT720.LF) with the results from
Section 5 (RPT720.S5). The results should show less economic material and
less profit in the variable cost by bench series of pits because of the higher
costs at depth.

Rename Run, Report and S-files if desired (this is not necessary for the next
exercises). Use S6 as the extension (RUN720.S6, MSOPS6.P01 etc.)

Open Pit Optimization Training Workbook Page 6—5

Section 6—Varying Mining Cost by Bench

Variable cost by bench

Summary for area requested Cumulative

Number of base blocks ex. 172802.
Number of base blocks mined 3806.
Net revenue = GRO$$ - costs 474765280.
Number of WASTE blocks mined 39396.
Number of ORE blocks mined 21793.
Average value per ore-block: 21785.
Average GRADE per ore-block: 1.590
M. TONNES of ORE mined 353046592.
M. TONNES of WASTE mined 638215168.
Stripping Ratio 1.8077

Constant costs

Summary for area requested Cumulative

Number of base blocks ex. 166340.
Number of base blocks mine 4111.
Net revenue = GRO$$ - costs 511550624.
Number of WASTE blocks mined 41169.
Number of ORE blocks mined 22245.
Average value per ore-block: 22996.
Average GRADE per ore-block: 1.582
M. TONNES of ORE mined 360368992.
M. TONNES of WASTE mined 666937792.
Stripping Ratio 1.8507

Page 6—6 Open Pit Optimization Training Workbook

 Section 7—Dollar Block Approach Using Lerchs-Grossman Method

Section 7—Dollar/Block Approach Using Lerchs-Grossmann Method

Summary In this example we will use the slope and cost data from Section 5 and a
$0.90/pound copper price and do the following:

1. Calculate and store in File 15 a profit value(in M$) for each ore block;
2. Transfer these values over to another B-file;
3. Check the B-file results;
4. Use these profit values with the Lerchs-Grossmann algorithm to find the
economic pit limit; and
5. Compare this $0.90 pit limit with the one generated in Section 5

We know the following:

Waste mining cost: $1.20/tonne

Ore mining and processing cost: $8.00/tonne
Net value for $0.90 copper price: $0.50/pound Cu
Mill Cutoff: 0.617% Eqcu
Mine Cutoff: 0.726% Eqcu

Using the definition of Profit/block as equal to Revenue/block - Cost/block

we can determine the Profit/Block values for waste blocks and for ore
blocks.

1. Waste Blocks: Profit/Block = 0 - (16.2Ktonnes/block)($1.20/tonne)

Profit/Block = -19.440 M$
Waste blocks are all blocks with EQCU < 0.617.

2. Ore Blocks:
Profit/Block = (16.2Ktonnes/block)(22.04 * %Eqcu)pounds cu/tonne
($.50/pound cu)- (16.2Ktonnes/block)($8/tonne)
Profit/Block = 178.524(%Eqcu) - 129.600 M$
Ore Blocks are all blocks with EQCU >= 0.617

Step 1 Calculate and Store Profit Values for Ore Blocks

Store values in File 15 under Item VALBK Using Program M612RP and
check results.

Since the profit value for waste blocks is constant (-19.4 M$) in this case it
is easier (and more efficient) to let the DIPPER program continue to
calculate this value rather than putting this constant in File15 for all the
waste blocks and then transferring to the B-File. If your waste costs vary by
rock type or elevation then it would be necessary to calculate the profit value
for waste blocks and put them into file 15 using the same approach as we
will now use for the Ore Blocks.

Open Pit Optimization Training Workbook Page 7—1

Section 7—Dollar / Block Approach Using Lerchs-Grossmann Method

From the MANAGER menu select:

Group = 3D DEPOSIT MODELING

Operations = CALCULATIONS
Procedure description = USER-CALCS (MODEL) - P61201.DAT

Panels (that need to be filled):

Page 7—2 Open Pit Optimization Training Workbook

 Section 7—Dollar Block Approach Using Lerchs-Grossman Method

Step 2 Initialize another B-File

Initialize New B-file called MSOPDP.DPB. S-File can remain as

MSOPDP.P00

From the MANAGER menu select:

Group = DIPPER MINE PLANS

Operations = INITIALIZE
Procedure description = INITIALIZE DIPPER FILES -P71702.DAT

Panels:

Open Pit Optimization Training Workbook Page 7—3

Section 7—Dollar / Block Approach Using Lerchs-Grossmann Method

Step 3 Transfer Ore Block VALBK info into B-file

For pit design purposes an Ore Block must be either Proven (ORE = 1) or
Probable (ORE = 2).

From the MANAGER menu select:

Group = DIPPER MINE PLANS

Operations = DATA CONVERT
Procedure description = CONDENSE MODEL - P71890.DAT

Page 7—4 Open Pit Optimization Training Workbook

 Section 7—Dollar Block Approach Using Lerchs-Grossman Method

Panel:

Step 4 Check the B-file

The B-file can be checked with single digit printer maps as we did earlier or
we can produce a listing of B-file values for specific rows and columns using
Program M724V1.

From the MANAGER menu select:

Group = DIPPER MINE PLANS

Operations = REPORT
Procedure description = LIST B-FILE - P72401.DAT

Panel:

Open Pit Optimization Training Workbook Page 7—5

Section 7—Dollar / Block Approach Using Lerchs-Grossmann Method

Output START OF ROW # 51

IX KT KO KL S S2: 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15

95 21 25 49 26333 26358: -2 36 61 111 152 210 229 227 192 147 76 129 193 188 156
127 154 167 177 147 83 49 26 19 1
96 21 24 49 26358 26384: -14 11 72 86 120 185 267 288 270 211 158 106 186 231 231
217 210 213 163 152 101 58 29 20 17 1
97 21 24 49 26384 26410: -3 22 81 108 126 186 265 283 249 192 154 119 192 256 281
274 267 245 161 124 72 40 27 20 15 15
98 21 24 49 26410 26436: -8 15 76 88 120 152 206 218 188 138 127 117 167 229 263
251 222 206 138 95 45 20 15 20 17 17
99 21 24 49 26436 26462: -10 24 72 88 115 117 138 136 113 102 102 111 144 211 229
201 192 156 111 70 26 17 15 20 19 19
100 21 23 49 26462 26489: -1 17 40 83 108 113 86 85 81 83 76 61 72 135 201
210 197 147 113 86 52 26 19 11 19 20 20

START OF ROW # 52
IX KT KO KL S S2: 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15

95 21 24 49 25062 25088: -1 11 44 81 120 190 265 288 122 208 260 272 170 242 267
240 211 202 177 177 142 58 22 -1 -3 -1
96 21 22 49 25088 25116: 10 8 19 40 83 110 131 227 345 386 310 240 345 333 295
386 386 372 345 297 210 172 101 54 20 -1 -3 -1
97 21 23 49 25116 25143: 8 1 44 104 113 127 226 343 388 306 238 197 336 331 417
417 399 376 327 211 165 74 38 24 17 -1 1
98 21 24 49 25143 25169: -3 42 97 111 144 186 263 277 240 183 149 113 218 313 340
333 301 268 210 140 51 36 27 17 17 17
99 21 24 49 25169 25195: -2 2 90 106 122 142 170 165 138 106 97 90 163 254 285
277 227 210 179 101 45 20 29 2 19 19
100 21 23 49 25195 25222: -5 27 49 88 119 145 111 108 83 60 47 49 67 135 204
235 211 176 140 113 74 49 38 33 4 22 20

where:

IX Column number
KT Highest bench in air
KO Bench at top of ore
KL Bench at bottom of ore
S First word in B-file
S2 Last word in B-file
01-25 Value of block in benches KO to KL

Step 5 Run Lerchs-Grossmann

From the MANAGER menu select:

Group = DIPPER MINE PLANS

Operations = CALCULATIONS
Procedure description = DIPPER F.C/LG - PDIPPR.DAT

Panels:

Page 7—6 Open Pit Optimization Training Workbook

 Section 7—Dollar Block Approach Using Lerchs-Grossman Method

Open Pit Optimization Training Workbook Page 7—7

Section 7—Dollar / Block Approach Using Lerchs-Grossmann Method

Output Summary for Requested Area Phase # 1 Cumulative

Number of total blocks mined 64894. 64894.
Number of ORE blocks mined 26417. 26417.
Net revenue = GRO$$ - COSTS 2880121. 2880121.
Number of WASTE blocks mined 33692. 33692.
Number of FEED blocks mined 31202. 31202.
Average value per FEED-BLOCK 92. 92.
Average NET$$ per FEED-BLOCK 113.32706 113.32706
M. TONNES of ORE mined 505472384. 505472384.
M. TONNES of WASTE mined 545810432. 545810432.
Stripping Ratio 1.0798 1.0798

Output Surface = MSOPS7.P06

Step 6 Comparison with $0.90 pit limit from Section 5

A quick way to compare the results is to dump the S-file from the Lerchs-
Grossmann run to a VBM ready ASCII file, load this ASCII file into the
MSOP25.TOP VBM File and compare the bench by bench outlines from
the two designs. We already have VBM file P50.VBM with feature code 706
for the design from Section 5. Go ahead and dump S-File MSOPS7.P06 to
VBM file called S7.VBM with feature code 716 (use P72190.dat procedure).
ASCII IN both files to File 25 and compare the designs on a bench by bench
basis using AUTOSTEP.

From the MANAGER menu select:

Group = DIPPER MINE PLANS

Operations = PLOT
Procedure description = S-FILE PIT MAPS - P72190.DAT

Panels:

Page 7—8 Open Pit Optimization Training Workbook

 Section 7—Dollar Block Approach Using Lerchs-Grossman Method

In the VBM editor we can now view the DIPPER pits. Maps for benches
2255 and 2435 follow. DIPPER pit using FC is represented with the solid
line whereas DIPPER pit using LG is represented with the dotted line.

Open Pit Optimization Training Workbook Page 7—9

Section 7—Dollar / Block Approach Using Lerchs-Grossmann Method

Page 7—10 Open Pit Optimization Training Workbook

 Section 8—Dollar/Block Approach with LG and Reblocking

Section 8—Dollar/Block Approach with LG and Reblocking

Summary In this section we will repeat the example from previous section but this time
we’ll do it with Re-blocking (composite smaller blocks into larger blocks).
We will compare the results with the results from section 7 (LG without
reblocking). Compare also the execution times.

Step 1 Run LG

From MANAGER select:

Run$ Single Run $Enter Name only$ P72003.DAT

Panels (that need to be filled):

Open Pit Optimization Training Workbook Page 8—1

Section 8—Dollar Block Approach with LG and Reblocking

Page 8—2 Open Pit Optimization Training Workbook

 Section 8—Dollar/Block Approach with LG and Reblocking

Output (Original and re-blocked net dollar values as well as total figures):

ROW # 55

IX IZ1 IZ2: 01 02 03 04 05 06 07 08 09 10

95 22 31: 10 47 77 60 90 151 242 177 122 119

32 41: 140 177 185 145 131 131 111 49 17 -12
42 48: 13 65 131 213 -20 -20 -20
96 22 31: 52 119 151 111 124 363 274 195 151 149
32 41: 167 210 226 227 249 326 249 65 20 -10
42 49: 181 277 308 310 -19 -19 -19 -19
97 22 31: 58 242 252 177 427 377 324 231 156 165
32 41: 199 215 233 258 190 297 252 69 24 -6
42 50: 331 431 351 276 -19 -19 -19 -19 -19
98 22 31: 42 106 135 127 390 379 338 263 170 67
32 41: 217 251 206 170 179 251 290 327 393 483
42 51: 433 365 101 60 33 22 20 19 -19 -19
52 52: -19
99 21 30: -19 -19 44 56 113 276 477 336 277 204
31 40: 149 170 154 135 122 152 254 258 270 340
41 50: 397 388 261 104 86 52 31 27 24 -20
51 52: -20 -20
100 21 30: -19 -19 192 156 145 158 226 261 222 206
31 40: 158 144 94 94 92 135 261 338 251 283
41 50: 329 288 177 108 94 61 51 45 42 -20
51 52: -20 -20

ROW # 56

IX IZ1 IZ2: 01 02 03 04 05 06 07 08 09 10

95 22 31: 49 317 451 445 145 365 236 186 151 152
32 41: 168 204 202 165 156 160 135 47 17 -10
42 49: 40 206 158 183 -20 -2 -19 -19
96 22 31: 49 331 459 476 483 399 277 218 188 177
32 41: 192 226 204 202 220 245 204 67 20 -8
42 49: 119 231 258 247 -19 -19 -19 -19
97 22 31: 54 140 481 136 483 408 326 251 206 179
32 41: 195 227 222 206 240 251 243 333 24 349
42 50: 308 256 70 247 -19 -19 -19 -19 -19
98 22 31: 58 124 158 133 429 386 447 260 186 343
32 41: 190 231 188 211 242 252 268 311 367 390
42 50: 347 279 69 224 -19 -19 -19 -19 -19
99 21 30: -19 44 88 131 135 199 349 377 349 315
31 40: 295 193 154 135 122 145 242 267 306 334
41 50: 377 333 240 111 201 -20 -20 -20 -20 -20
100 21 30: -19 52 106 147 140 177 274 306 268 258
31 40: 220 154 92 97 110 133 226 304 290 306
41 50: 345 126 177 115 101 81 -20 -20 44 -20
51 52: -20 -20

The $-values for pit design has been re-blocked,

PCF model dimension:
NX = 150 DX= 20.0 NY= 125 DY= 20.0 NZ = 64 DZ= 15.0
Re-blocked model dimension:
NX = 75 DX= 40.0 NY= 63 DY= 40.0 NZ = 64 DZ= 15.0
The resulted total # of blocks = 32826

Open Pit Optimization Training Workbook Page 8—3

Section 8—Dollar Block Approach with LG and Reblocking
# of "+" valued blocks = 7950
# of "-" valued blocks = 24876

The designed pit will be transformed back to PCF

model dimension automatically before program exits.

ROW # 28

IX IZ1 IZ2: 01 02 03 04 05 06 07 08 09 10

48 22 31: 160 814 1138 1092 842 1278 1029 776 612 597
32 41: 667 817 817 739 756 862 699 228 74 -40
42 49: 353 779 855 953 -78 -60 -77 -57
49 22 31: 212 612 1026 573 1729 1550 1435 1005 718 754
32 41: 801 924 849 845 851 1051 1053 1040 808 1216
42 51: 1419 1331 591 807 -24 -35 -37 -38 -76 -19
52 52: -19
50 21 30: -76 58 430 490 533 810 1326 1280 1116 983
31 40: 822 661 494 461 446 565 983 1167 1117 1263
41 50: 1448 1135 855 438 482 174 42 32 90 -80
51 52: -60 -60

Summary for Requested Area Phase # 1 Cumulative

Number of total blocks mined 64188. 64188.
Number of ORE blocks mined 26380. 26380.
Net revenue = GRO$$ - COSTS 2888591. 2888591.
Number of WASTE blocks mined 33059. 33059.
Number of FEED blocks mined 31129. 31129.
Average value per FEED-BLOCK 93. 93.
Average NET$$ per FEED-BLOCK 113.46931 113.46931
M. TONNES of ORE mined 504289792. 504289792.
M. TONNES of WASTE mined 535555808. 535555808.
Stripping Ratio 1.0620 1.0620

Output Surface = MSOPLG.P01

Compare summary above with summary from section 7. Figures should

be close. Compare running times. You can check the running time at
the end of the reports. RPT720.S7 is the report for the LG run without
re-blocking and RPT720.LO is the report for the LG run with re-blocking.

Page 8—4 Open Pit Optimization Training Workbook

 Section 8—Dollar/Block Approach with LG and Reblocking

Step 2 Viewing MSOPLG.P01

Make a VBM ascii file as before (procedure P72190.DAT) and view it

in M650ED. Use code 726. See map below for bench 2360. Solid line
is DIPPER pit with reblocking and dotted line is the DIPPER pit without
re-blocking.

Open Pit Optimization Training Workbook Page 8—5

Section 8—Dollar Block Approach with LG and Reblocking

Page 8—6 Open Pit Optimization Training Workbook

 Section 9—Dollar/Block Approach with Reblocked LG and Complex Slopes

Section 9—Dollar/Block Approach with Reblocked LG and Complex

Slopes

Summary In this example we will repeat the previous exercise but this time we will use
complex slopes (i.e. slopes that vary both laterally and vertically) instead of
simple slope sectors defined by azimuths.

Complex Slopes Program M720V4 runs the complex slope option with the Lerchs-
Grossmann algorithm. The complex slope option requires the following
information:

1. Up to five different surfaces defining the breakpoints for slope changes

in a vertical direction. These surfaces are either input as ASCII files with
an elevation specified for each row/column in the model or as constant
elevations (i.e. horizontal surfaces).

2. Up to five ASCII files containing integer codes for each row/column.

These codes define the lateral slope sector boundaries above each
surface input in Step 1 and are used to identify the slope angles to use in
each sector above each surface.

3. A table mapping the integer codes in each ASCII file in Step 2 to the
slope angle to apply during economic pit design.

For this example we will setup the following scenario:

1. Feature Code 902 in File MSOP25.TOP defines the bottom of the

alteration zone. We will use this as our first surface for vertical slope
control.

2. Elevation 2000 defines the bottom of the model. We will use this as our
second surface for vertical slope control.

3. Feature codes 1, 2 and 3 define lateral sector boundaries to use for slope
control above these two surfaces. Within Sector 1 we will specify a
slope of 25 degrees above the alteration surface and 65 degrees below
the alteration surface (i.e., above 2000 elevation). For sector 2—27
above and 63 below and for sector 3 — 24 above and 60 below.

Open Pit Optimization Training Workbook Page 9—1

Section 9—Dollar/Block Approach with Reblocked LG and Complex Slopes

You can view features 902, 1, 2, and 3 in M650ED. See plot below. Solid
lines represent feature 902. Patterned areas represent features 1, 2 and 3.

Step 1 Build ASCII file of bottom of alteration zone

Build ASCII File (ALTR.OA) of surface defining the bottom of the

alteration zone. Use Procedure p65702.dat and specify a reblocked
dimension of 40m in the E-W direction and 40m in the N-S direction.

From the MEDSManager menu select:

Group = VBM
Operations = Data Convert
Procedure Desc. = Topo Grid VBM-DTM - p65702.dat

Panels

Page 9—2 Open Pit Optimization Training Workbook

 Section 9—Dollar/Block Approach with Reblocked LG and Complex Slopes

Answer NO to Load the codes to File 13?

Open Pit Optimization Training Workbook Page 9—3

Section 9—Dollar/Block Approach with Reblocked LG and Complex Slopes

Output (3 last rows)

60 1 10 2495.0 2495.0 2495.0 2494.7 2493.5 2487.8 2485.7 2483.7 2481.7 2480.0
60 11 20 2479.3 2474.1 2471.6 2469.2 2466.7 2465.0 2462.9 2458.4 2454.9 2451.5
60 21 30 2450.0 2450.0 2450.0 2450.0 2450.0 2450.0 2450.0 2450.0 2451.0 2453.4
60 31 40 2454.8 2456.2 2457.7 2459.1 2460.5 2461.9 2464.2 2465.8 2469.1 2471.2
60 41 50 2473.2 2475.1 2477.1 2479.2 2481.5 2484.2 2486.8 2489.2 2491.5 2493.7
60 51 60 2495.0 2495.0 2495.0 2495.1 2495.8 2502.2 2503.4 2504.6 2506.0 2507.4
60 61 70 2508.8 2510.0 2510.0 2510.0 2510.0 2510.0 2510.0 2510.0 2510.0 2510.0
60 71 75 2510.0 2510.0 2510.0 2510.0 2510.0
61 1 10 2495.0 2495.0 2495.0 2494.6 2493.4 2490.1 2484.5 2482.5 2480.5 2480.0
61 11 20 2479.0 2475.6 2469.8 2467.4 2465.0 2464.9 2463.6 2459.0 2453.9 2450.5
61 21 30 2450.0 2450.0 2450.0 2450.0 2450.0 2450.0 2450.0 2450.0 2450.0 2451.9
61 31 40 2454.4 2455.9 2457.3 2458.8 2460.2 2462.6 2465.0 2466.4 2468.8 2472.9
61 41 50 2475.0 2477.0 2478.9 2480.6 2483.1 2485.8 2488.4 2491.0 2493.2 2495.0
61 51 60 2495.0 2495.0 2495.0 2495.0 2495.5 2498.3 2505.3 2506.5 2507.8 2509.2
61 61 70 2510.0 2510.0 2510.0 2510.0 2510.0 2510.0 2510.0 2510.0 2510.0 2510.0
61 71 75 2510.0 2510.0 2510.0 2510.0 2510.0
62 1 10 2495.0 2495.0 2495.0 2494.5 2493.4 2492.2 2486.2 2481.3 2480.0 2479.8
62 11 20 2478.7 2477.6 2469.6 2465.5 2465.0 2464.6 2463.3 2461.6 2455.2 2450.0
62 21 30 2450.0 2450.0 2450.0 2450.0 2450.0 2450.0 2450.0 2450.0 2450.0 2450.3
62 31 40 2452.8 2455.3 2457.0 2458.5 2461.0 2465.0 2465.3 2467.0 2468.7 2472.6
62 41 50 2476.7 2478.8 2480.0 2482.2 2484.7 2487.4 2490.0 2492.6 2495.0 2495.0
62 51 60 2495.0 2495.0 2495.0 2495.0 2495.4 2496.0 2500.9 2508.3 2509.7 2510.0
62 61 70 2510.0 2510.0 2510.0 2510.0 2510.0 2510.0 2510.0 2510.0 2510.0 2510.0
62 71 75 2510.0 2510.0 2510.0 2510.0 2510.0

Step 2 Build 2 ASCII files of slope codes

File DAT610.I1 will contain the codes for defining slopes above the
alteration surface represented by file ALTR.OA and file DAT610.I2 will
contain the codes for defining slopes above the 2000 elevation (and below
the alteration surface). Run Procedure p66701.dat twice. Again, be sure to
specify reblocked dimensions of 40 for E-W and N-S directions and
associated number of blocks in each direction (i.e., 75 E-W direction and 62
in N-S direction.)

From the MEDSManager menu select:

Group = VBM
Operations =Data Convert
Procedure Desc. = VBM TO 3D Block Codes - p66701.dat

Page 9—4 Open Pit Optimization Training Workbook

 Section 9—Dollar/Block Approach with Reblocked LG and Complex Slopes

Panels (that need to be filled in)

Open Pit Optimization Training Workbook Page 9—5

Section 9—Dollar/Block Approach with Reblocked LG and Complex Slopes

Page 9—6 Open Pit Optimization Training Workbook

 Section 9—Dollar/Block Approach with Reblocked LG and Complex Slopes

Output (DAT601.I1 - first few rows)

1
1 4 44 57 2 1 1 1 1 1 1 1 1 1 1 1 1 1
1 5 38 57 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1
1 5 58 65 1 1 1 1 1 1 1 1
1 6 33 52 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1
1 6 53 66 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 7 27 46 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1
1 7 47 66 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 8 24 43 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
1 8 44 63 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 8 64 66 1 1 1
1 9 23 42 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
1 9 43 62 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 9 63 66 1 1 1 1
1 10 23 42 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
1 10 43 62 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 10 63 66 1 1 1 1
1 11 23 42 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
1 11 43 62 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 11 63 66 1 1 1 1

Open Pit Optimization Training Workbook Page 9—7

Section 9—Dollar/Block Approach with Reblocked LG and Complex Slopes

Run the procedure again to create file DAT610.I2. Specify feature code and
slope code matching as shown below:

Now we have the necessary files to run M720V4. Use Procedure

p72003.dat. Since we are using the same procedure we used in Section 8,
let’s rename the files from Section 8 to preserve them:

RENAME RUN720.O RUN720.S8

RENAME RPT720.LO RPT720.S8
RENAME MSOPLG.P01 MSOPS8.P06

Step 3 Run LG

From MEDSManager select:

Run $Single Run$Enter Name only$p72003.dat

Page 9—8 Open Pit Optimization Training Workbook

 Section 9—Dollar/Block Approach with Reblocked LG and Complex Slopes

Panels (that need to be filled in)

Open Pit Optimization Training Workbook Page 9—9

Section 9—Dollar/Block Approach with Reblocked LG and Complex Slopes

Page 9—10 Open Pit Optimization Training Workbook

 Section 9—Dollar/Block Approach with Reblocked LG and Complex Slopes

Open Pit Optimization Training Workbook Page 9—11

Section 9—Dollar/Block Approach with Reblocked LG and Complex Slopes

Page 9—12 Open Pit Optimization Training Workbook

 Section 9—Dollar/Block Approach with Reblocked LG and Complex Slopes

The inputs from the panels get dumped to a run file called RUN720.O and an
auxiliary file called VARSLP.DAT which is shown below.

SURFACE-1 1 1 0. 1. / ID, type1, psb#1, elev., rock

altr.oa / 2D surface file name (-1=no file)
CODE-1 2 1 / ID, type2, psb#1
dat610.I1 / 2D rock code matrix file name (-1=no file)
SURFACE-2 1 2 2000. 4. / ID, type1, psb#2, elev., rock
-1 / 2D surface file name (-1=no file)
CODE-2 2 2 / ID, type2, psb#2
dat610.I2 / 2D rock code matrix file name (-1=no file)
SLOPES-1 3 / ID label, type 3 data
1 25 / rock code, pit slope
2 27 / rock code, pit slope
3 24 / rock code, pit slope
4 65 / rock code, pit slope
5 63 / rock code, pit slope
6 60 / rock code, pit slope
-1 -1 / end of slope input

Open Pit Optimization Training Workbook Page 9—13

Section 9—Dollar/Block Approach with Reblocked LG and Complex Slopes

Output (Files PRT720.L0 and MSOPLG.P01)

Summary for Requested Area Phase # 1 Cumulative

Number of total blocks mined 66825. 66825.
Number of ORE blocks mined 27235. 27235.
Net revenue = GRO$$ - COSTS 2918184. 2918184.
Number of WASTE blocks mined 35181. 35181.
Number of FEED blocks mined 31644. 31644.
Average value per FEED-BLOCK 92. 92.
Average NET$$ per FEED-BLOCK 113.85656 113.85656
M. TONNES of ORE mined 512632800. 512632800.
M. TONNES of WASTE mined 569932224. 569932224.
Stripping Ratio 1.1118 1.1118

Output Surface = MSOPLG.P01

Check the results in the same manner as before (use procedure p72190.dat).
Use 736 Feature code for this pit. View the pit in M650ED.

Page 9—14 Open Pit Optimization Training Workbook

 Section 9—Dollar/Block Approach with Reblocked LG and Complex Slopes

Step 4 Cross-Ssection through Complex Slope Pit

Use Procedure secplt.dat

From the MEDSManager menu select:

Group = ADVANCED PLOTTING

Operations = Plot
Procedure Desc. = Plot TOPO, PIT, DH, 3DBM - secplt.dat

Panels (that need to be filled in)

Open Pit Optimization Training Workbook Page 9—15

Section 9—Dollar/Block Approach with Reblocked LG and Complex Slopes

Page 9—16 Open Pit Optimization Training Workbook

 Section 9—Dollar/Block Approach with Reblocked LG and Complex Slopes

Output

Open Pit Optimization Training Workbook Page 9—17

Section 9—Dollar/Block Approach with Reblocked LG and Complex Slopes

Page 9—18 Open Pit Optimization Training Workbook

 Section 10—Dollar/Block Approach Varying Ore Processing

Section 10—Dollar/Block Approach Varying Ore Processing and

Recovery by Alteration type

Summary In this section we will assume that:

-waste mining cost varies by bench
-ore mining cost varies by bench
-ore processing cost and recovery vary by alteration type (item ALTR; model
is already coded).

We will run a profit value/block (as in section 7) run combined with use of
variable costs by bench like in section 6.

To do so we are going to store gross values/block in file 15 and B-file and

use the variable cost/bench capability of m720v3.

Processing cost, recovery and codes are related in the following fashion:

alteration codes processing cost recovery

1 $5/tonne 70%
2 $5/tonne 70%
3 $5/tonne 70%
4 $5/tonne 70%
5 $5/tonne 70%
6 $6.8/tonne 100%

Step 1 Reset item VALBK

Item VALBK (where we are going to store the gross values per block)
already has values assigned, therefore, it needs to be reset.

From the MANAGER menu select:

Group = 3D DEPOSIT MODELING

Operations = INITIALIZE
Procedure description = RESET MODEL ITEMS - P60103.DAT

Open Pit Optimization Training Workbook Page 10—1

Section 10—Dollar/Block Approach Varying Ore Processing

Panels (that need to be filled):

Step 2 Calculate Gross value/block for ALTR=1,2,3,4 or 5

Assuming a price of $.90/lb of cu, a treatment cost of$.40/lb of cu and an

average ore mining cost of $1.2/tonne of cu we can calculate the following:

Net Value = (.90$/lb - .40$/lb)*70% = .35$/lb

Mine Cutoff :
.35$/lb * (cutoff) * 22.046lb/tonne = 5$/tonne +1.20 $/tonne =>
mine cutoff =6.2/(.35*22.046) =.80
Mill Cutoff:
.35$/lb * (cutoff)* 22.046 lb/tonne = 5$/tonne =>
mill cutoff = .65

Therefore:

VALBK = 16.2Ktonnes/block *.35$/lb * eqcu * 22.046lb/tonne -

16.2Ktonnes/block *5$/tonne
for blocks with eqcu $.65 and ALTR = 1,2,3,4 or 5

Step 3 Calculate Gross value/block for ALTR=6

Net Value = (.90$/lb - .40$/lb)*100% = .50$/lb

Mine Cutoff :
.50$/lb * (cutoff) * 22.046lb/tonne = 6.8$/tonne +1.20 $/tonne =>
mine cutoff =8/(.50*22.046) =.73
Mill Cutoff:
.50$/lb * (cutoff)* 22.046 lb/tonne = 6.8$/tonne =>
mill cutoff = .617

VALBK = 16.2Ktonnes/block *.50$/lb * eqcu * 22.046lb/tonne -

16.2Ktonnes/block *6.8$/tonne

Page 10—2 Open Pit Optimization Training Workbook

 Section 10—Dollar/Block Approach Varying Ore Processing

for blocks with eqcu $ 0.617 and ALTR = 6

Step 4 Run model calculation

From the MANAGER menu select:

Group = 3D DEPOSIT MODELING

Operation = CALCULATION
Procedure description = USER-CALC (MODEL) - P61201.DAT

Panels (that need to be filled):

Open Pit Optimization Training Workbook Page 10—3

Section 10—Dollar/Block Approach Varying Ore Processing

Page 10—4 Open Pit Optimization Training Workbook

 Section 10—Dollar/Block Approach Varying Ore Processing

Run procedure one more time changing the following two panels:

Step 5 Initialize new dipper files

From the MANAGER menu select:

Group = DIPPER MINE PLANS

Operation = INITIALIZE
Procedure description = INITIALIZE DIPPER FILES - P71701.DAT

Keep everything the same as in SECTION 7; just change the name of the B-
file to MSOPDP.GRO.

Open Pit Optimization Training Workbook Page 10—5

Section 10—Dollar/Block Approach Varying Ore Processing

Step 6 Transfer VALBK from file 15 to B-file

From the MANAGER menu select:

Group = DIPPER MINE PLANS

Operation = DATA CONVERT
Procedure description = CONDENSE MODEL (DIPPER)-P71890.DAT

Keep everything the same as in SECTION 7; just change the name of the B-
file to MSOPDP.GRO and the minimum value to condense to 0.1.

Step 7 Check values with M724V1

From the MANAGER menu select:

Page 10—6 Open Pit Optimization Training Workbook

 Section 10—Dollar/Block Approach Varying Ore Processing

Group = DIPPER MINE PLANS

Operation = REPORT
Procedure description = LIST B-FILE - P72401.DAT

Output:

START OF ROW # 55

IX KT KO KL S S2: 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15

95 22 22 45 17997 18021: 17 43 64 52 73 115 179 134 95 93 108 134 139 112 102
102 88 44 22 2 19 55 102 159
96 22 22 45 18021 18045: 47 93 115 88 97 264 202 147 115 114 127 157 168 169 184
238 184 55 24 3 137 204 225 227
97 22 22 45 18045 18069: 50 179 187 134 309 274 237 172 119 125 149 160 173 190 143
218 187 58 27 5 242 312 255 203
98 22 22 49 18069 18097: 39 84 104 99 283 275 247 194 129 57 162 185 154 129 135
185 213 239 285 348 313 265 80 52 33 25 24 23
99 21 23 49 18097 18124: 40 49 89 203 344 245 204 153 114 129 118 104 95 117 188
190 199 248 288 282 193 83 70 47 32 29 27
100 21 23 49 18124 18151: 144 119 112 120 168 193 165 154 120 110 75 75 74 104 193

START OF ROW # 56

IX KT KO KL S S2: 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15

95 22 22 45 16873 16897: 44 232 325 322 112 265 175 140 115 117 128 153 152 125 119
122 104 43 22 3 38 154 120 138
96 22 22 45 16897 16921: 44 242 332 343 348 289 204 163 142 134 144 168 153 152 164
182 153 57 24 4 93 172 190 183
97 22 22 45 16921 16945: 48 108 347 105 348 295 238 185 154 135 147 169 165 154 178
185 180 243 27 254 225 189 59 183
98 22 22 45 16945 16969: 50 97 120 103 310 280 323 192 140 250 143 172 142 158 179
187 198 228 267 283 253 205 58 167
99 21 22 45 16969 16993: 40 72 102 104 149 254 274 254 230 217 145 118 104 95 112
179 197 224 244 274 243 178 88 150
100 21 22 49 16993 17021: 47 84 113 108 134 202 224 198 190 164 118 74 78 87 103
168 223 213 224 252 98 134 90 80 67 0 0 40

Step 8 Run LG

Use procedure P72003.DAT. Use:

-variable waste and ore mining cost by bench
-variable slope by azimuth
-Gro$$ item in B-file
-Mill cutoff = 0
-Mine cutoff = 0
-Waste mining cost = .0012
-Base Ore and processing cost (PAR4) = .0012

Open Pit Optimization Training Workbook Page 10—7

Section 10—Dollar/Block Approach Varying Ore Processing

-Base Waste mining cost(PAR3) = .0012

Rename previous run files or dipper files if you want to keep them.

From MANAGER select:

Run $Single Run$Enter name only- P72003.DAT

Panels (that need to be filled):

Page 10—8 Open Pit Optimization Training Workbook

 Section 10—Dollar/Block Approach Varying Ore Processing

Open Pit Optimization Training Workbook Page 10—9

Section 10—Dollar/Block Approach Varying Ore Processing

Output:
Summary for Requested Area Phase # 1 Cumulative
Number of total blocks mined 54327. 54327.
Number of ORE blocks mined 23120. 23120.
Net revenue = GRO$$ - COSTS 1480863. 1480863.
Number of WASTE blocks mined 28291. 28291.
Number of FEED blocks mined 26036. 26036.
Average value per FEED-BLOCK 57. 57.
Average GRO$$ per FEED-BLOCK 99.71520 99.71520
M. TONNES of ORE mined 421783200. 421783200.
M. TONNES of WASTE mined 458314208. 458314208.
Stripping Ratio 1.0866 1.0866

Page 10—10 Open Pit Optimization Training Workbook

 Section 11—Create A Net Value Dipper Model

Section 11—Create A Net Value Dipper Model From The Block Model
With A User Subroutine

Summary M718V2 reads the 3-D block model file (file 15) and the 2-D surface file
(file 13) and condenses them, creating the DIPPER B-file and S-file. A user
supplied subroutine calculates the block economic values. Mintec provides a
general purpose subroutine called NETDIP for the above task. Users can
write their own subroutine to further meet the needs of the specific site.

In this example we’ ll use the same set up as before;

-$.90/lb of cu price (for 100% recovery and $.40/lb treatment cost it
translates to (.90-.40)*100%= $.50/lb net dollar value.
-$1.2/tonne ore and waste mining cost
-$6.8/tonne operating cost

NETDIP requires a zone and a percentage item. We can use item TOPO as
a percentage item and we need to set item XTRA1 equal to 1 for every
block in the model.

Step 1 Reset item XTRA1

From the MANAGER menu select:

Group = 3D DEPOSIT MODELING

Operations = INITIALIZE
Procedure description = RESET MODEL ITEMS - P60103.DAT

Panels (that need to be filled):

Open Pit Optimization Training Workbook Page 11—1

Section 11—Create A Net Value Dipper Model

Step 2 Initialize a new DIPPER set of files.

From the MANAGER menu select:

Group = DIPPER MINE PLANS

Operations = INITIALIZE
Procedure description = INITIALIZE DIPPER FILES - P71701.DAT

Panels (that need to be changed from previous runs):

Step 3 Run NETDIP

Costs and factors are divided by 1000 for storage purposes.

From MANAGER menu select:

Group = DIPPER MINE PLANS

Operations = DATA CONVERT
Procedure Description = CONDENSE $-VALUE (DIPPER) -
NETDIP.DAT
Panels (that need to be filled):

Page 11—2 Open Pit Optimization Training Workbook

 Section 11—Create A Net Value Dipper Model

Open Pit Optimization Training Workbook Page 11—3

Section 11—Create A Net Value Dipper Model

Step 4 Run L.G.

Do not enter any waste or ore mining costs. All of the blocks below
topography have been condensed, and all types off costs have been already
included in VALBK (B-file item).

From the MANAGER menu select:

Group = DIPPER MINE PLANS

Operations = CALCULATION
Procedure description = NET$$ LG PIT (SIMPLE SLOPES) -
P72031.DAT

Panels (that need to be filled):

Page 11—4 Open Pit Optimization Training Workbook

 Section 11—Create A Net Value Dipper Model

Output:
Summary for Requested Area Phase # 1 Cumulative
Number of total blocks mined 73004. 73004.
Number of ORE blocks mined 28705. 28705.
Net revenue = GRO$$ - COSTS 2951529. 2951529.
Number of WASTE blocks mined 44299. 44299.
Number of FEED blocks mined 28705. 28705.
Average value per FEED-BLOCK 103. 103.
Average NET$$ per FEED-BLOCK 130.49611 130.49611
M. TONNES of ORE mined 465020992. 465020992.
M. TONNES of WASTE mined 717643776. 717643776.
Stripping Ratio 1.5433 1.5433

Output Surface = MSOPLG.NET

Make a VBM feature out of MSOPLG.NET and view it in M650ED

(dotted line). Compare it with feature 726 (solid line).

Open Pit Optimization Training Workbook Page 11—5

Section 11—Create A Net Value Dipper Model

Page 11—6 Open Pit Optimization Training Workbook

 Section 12—Adding Mining Restrictions

Section 12—Adding Mining Restrictions to Dipper Using String

Boundary

Summary This section describes a method for adding mining restrictions to the
condensed model.

To prevent the floating cone or the Lerchs-Grossmann method from crossing

boundaries such as creek limits, property boundaries, etc., a string boundary
(or multiple string boundaries) can be used to outline the area(s). The blocks
defined by this boundary (or boundaries) are then set to restricted within the
Condensed Surface File (S-File).

Step 1 Digitize boundary.

The first step is to enter the string boundary into a VBM file. Here, two
situations must be considered, the one of a complete restriction on all sides,
and an isolated restriction on one or more sides. If a complete restriction is
required on all sides, the string must be digitized ANTI-CLOCKWISE, and
be a CLOSED polygon. Then an additional string must be digitized
CLOCKWISE around the Model Limits, and must be CLOSED also. The
string may be on any horizontal plane, and should have a UNIQUE
FEATURE CODE. In order for M667V1 to determine the blocks that are
OUTSIDE the inner restricting string, adhering to the direction of digitizing
for these two strings is necessary.

If only one or more sides needs to be restricted, the situation is different.

Digitize this area(s) CLOCKWISE, following the desired edge of the pit,
then extending outward away from the pit and CLOSING the string.
Situations may occur when several of these smaller restrictions are necessary
and thus several polygons are used to restrict the upper limit of the designed
pit. Because these are digitized CLOCKWISE, M667V1 will determine the
blocks defined INSIDE these string boundaries.

In following map we have digitized a boundary (thick line) where we would

like to stop the expansion of the pit.

Step 2 Transfer restrictions to S-file

Next, in Manager, select procedure p66704.dat which first uses program

M667V1 to compute the blocks defined by the string outline(s). Enter the
name of the VBM File containing the sting outline(s), the name of the ASCII
output file, the feature code, and plane number where digitized. M667V1
will output an ASCII file of rows and columns as defined by the string
boundary(s). Click on the toggle to transfer mining restrictions to your
S-File, and enter the names for your Condensed Model, S-File, and the new
Restricted S-File. The procedure will run program M729V1 to add the
mining restrictions to the new S-File, then M721V1 to view the symbol map
of the resulting surface. Check this map carefully to ensure the "-" symbol
correctly defines the restricted area(s). This new S-File name should be used

Open Pit Optimization Training Workbook Page 12—1

Section 12—Adding Mining Restrictions

in the subsequent Floating Cone or Lerchs-Grossmann run, and will ensure

the cone does not cross the boundary(s).

From the MANAGER menu select:

Group = VBM
Operations = DATA CONVERT
Procedure description = COMPUTE BLOCK CODES PARTIALS FOR
MINING RESTRICTIONS - P66704.DAT

Panels (that need to be filled):

Page 12—2 Open Pit Optimization Training Workbook

 Section 12—Adding Mining Restrictions

Output (partial):

77*6666679AA987665445567889ABBCDDDCCCCDDDEEFGGGFFEDDCCCCDEEFFFGGGGGHIIIJJJJJJJJKKKKKKKKKKLLLLLLLMMMMMMMMMMMMMNNNNNNNNNNNNOO
76*6666668AA987765555567789AABCDDDDDDDDDDEFFGGGFFEDDDCCDDEFFGGGHGGHIIIIJJJJJJJKKKKKKKKKKLLLLLLLMMMMMMMMMMMMMMMNNNNNNNNNOOOO
75*66666679A998765655556789AABCDDEEEDDDDDEFGGGGFEEDDDDDDEEFGGGHHHHHIIJJJJJJJJKKKKKKKKKKLLLLLLMMMMMMMMMMMMMMMMMNNNNNNOOOOOOO
74*66666679AA998766655567799ABCCDEEEEEDDEEFGGGGFEEDDDDDDEFGGGHHHHHIIJJJJJJJJJJKKKKKKKKLLLLLLLMMMMMMMMMMMMMMMMMNNNNOOOOOOOOO
73*66666679AAA98877766666789ABBCDEEEEEEEEEFGGGGGFEEDDDEEFFGGHHHHHHIIJJJJJJJJJJJKKKKKKKLLLLLLLLMMMMMMMLMMMMMMMMNNNNOOOOOOOOO
72*56666678AAAA98887766677889ABCCDEEEEEEFFFFGGGGGFEEEEEFFGHHHHIIIIIIIJJJJJJJJJJKKKKKKLLLLLLLLLLMMMLLLLLMMMMMMMNNNNNOOOOOOO-
71*556666789AAAA9988776777889ABBCDEFFFFFFFFGGGGGGGFEEFFFGHHHHHIIIIIIIJJJJJJJJKKKKKKKKLLLLLLLLLLLLLLLLLLMMMMMMMNNNNNNOOOO---
70*555666789AAAAA998877888899ABBCDEFFFFFFGGGGGGHGGFFFFGGHHIIIIIIIIIIIJJJJJJJJKKKKKKKLLLLLLLLLLLLLLLLLLLMMMMMMMNNNNNNNOO----
69*5556667899ABAAA9998888899AABBCEFFFFFFGGGGGGHHHGFFFGGHHIIIIIIIIIIIIJJJJJJJJKKKKKKKLLLLLLLLLLLLLLLLLLLLMMMMMMNNNNNNNN-----
68*5556666789ABBAAAA9999999AABBCCEFFFFFFGGGHHHHHHGFFFGGHIIIIIIIIJJJJJJJJJJJJKKKKKKKKLLLLLLLLLLLLLLLLLKKLLMMMMMNNNNNNN------
67*5555666789AABBAAAAAAAA9AABCCDDEFGGFGGGGHHHHHHGGGGGGHHIIIJJJJJJJJJJJJJJJJJKKKKKKKKKLLLLLLLLLLLLLLLKKKKKLMMMMNNNNNN-------
66*55556667899ABBBBBBBBBAABBBCDEEFFGGGGGGGGHHHHGGGGGGHHIIIJJJJJJJJJJJJJJJJJJKKKKKKKKLLLLLLLLLLLLLLLLLKKKKLMMMMNNNNNN-------
65*45556667889AABCCCCCCCBBCCCDEEFFGGGGGGGGGHHHHHGGGGGHIIIJJJJJJJJJJJJJJJJJJKKKKKKKKLLLLLLLLLLLLLLMMLLKKKLLMMMMMNNNN--------
64*445566677899ABBBCCCCCCCCDDEEFFFGGGGGGGGGHIHHHGGGGGHIIJJJJJJJJJJJJJJJJJJKKKKKKKKLLLLLLLLLLMMMMMMMMLLLLMMMMMMMNNN---------
63*445566677889AAABCCCCCDDDDEEEFFFGGGGGGGGGHIIHGGGGGGHIIJJJJJJJJJJJJJJJJJKKKKKKKKKLLLLLLLLLMMMMMMMMMMMMMMMMMMMMMN----------
62*4455666778899AAABCCCCDDDDDDEEEEFGGHHGGGGHIHHGGGGGGHIIJJJJJJJJJJJJKJJJJKKKKKKKKKLLLLLLLLLLMMMMMMMMMMMMMMMMMMMMM----------
61*444566677889AAAABBCCCCDDDDDDDDEEFGHHHHHHHIHHGGGGGHIIIJJJJJJJJJKKKKKJJKKKKKKKKKKLLLLLLLLLLMMMMMMMMMMMMMMMMMMMM-----------
60*4445666778899A99ABBCCCCCCCCCCCDEEFGHHHHHIIIHHGGGHIIIIJJJJJJJJJKKKKKKKKKKKKKKKKKLLLLLLLLLLMMMMMMMMMLLLMMMMMMM------------
59*44455667788999889AABBBBBBBBBBCCDEFGHHHHIIIIIHGGHHIIIJJJJJJJJJJKKKKKKKKKKKKKKKKKLLLLLLLLLLMMMMMMMMMLLLLLMMMMM------------
58*444456677888887899ABBBAAABBBABCCDEFGHIIIIIIIHHHHIIIIJJJJJJJJJJKKKKKKKKKKKKKKKKKLLLLLLLLLLMMMMMMMMLLLLLLMMMM-------------
57*444456677888877789AAAAA9AAAAAABCDEFGHHIIIIIIIHHIIIIJJJJJJJJJJKKKKKKKKKKKKKKKKKKLLLLLLLLLLLMMMMMMMLLLLLLMMM--------------
56*4444556677888766789AAA999A999ABCDEFFGHHIIIIIIIIIIJJJJJJJJJJJKKKKKKKKKKKKKKKKKKKLLLLLLLLLLLMMMMMMMLLLLLMMMM--------------
55*44444566778877667899A998999999ACDDEFFGGHHIIIIIIIJJJJJJJJJJJJKKKKKKKKKKKKKKKKKKKLLLLLLLLLLLMMMMLLLLLLLLMMM---------------
54*444445667788776667899988888999ABCDDEFFGGHHIIIIIIJJJJJJJJJJJJKKKKKKKKKKKKKKKKKKKLLLLLLLLLLLLLLLLLLLLLLMMMM---------------
53*444445567778776667788888888999ABCDDEFFGGHHIIIIIIIJJJJJJJJJJJKKKKKKKKKKKKKKKKKKKLLLLLLLLLLLLLLLLLLLLLLMMMM---------------
52*44444456677877666677888888899AABCDDEFGGHHIIIIIIIIIIJJJJJJJJKKKKKKKKKKKKKKKKKKKKLLLLLLLLLLLLLLLLLLLLLLMMM----------------
51*44444456677776655667777788899ABCDDDEFGGHHHHIIIIIIIIIJJJJJJJKKKKKKKKKKKKKKKKKKKLLLLLLLLLLLLLLLLLLLLLLLMMM----------------
50*44444445677776555566777778899ABCCDEFFGGGGGHHIIIIIIIIIJJJJJJJJJKKKKKKKKKKKKKKKKLLLLLLLLLLLLLLLLLLLLLLLMMM----------------
49*44444445667766544456666777889ABBCDDEFFFFFGGHHIIIIIIIIIJJJJJJJJJKKKKKKKKKKKKKKKLLLLLLLLLLLLLLLLLLLLLLLMM-----------------
48*344444446666665444455566778889ABCCDEEEEFFFGGHHIIIHHIIIIJJJJJJJJJJKKKKKKKKKKKKKLLLLLLLKKKLLLLLLLLLLLLLMM-----------------
47*334444445666655444445566778889ABBCCDDDDEEFFGHHHHHHHIIIIIJJJJJJJJJJKKKKKKKKKKKKKKKKKKKKKKLLLLLLLLLLLMMMM-----------------
46*333444445666555444444566778889AABBBCCCCDEEFFGGHHHHHIIIIIIJJJJJJJJJKKKKKKKKKKKKKKKKKKKKKKLLLLLLLLLLMMMMM-----------------
45*233344445665554444444566788899AAABBBCCCCDEEFFGGGHHHIIIIIIIJJJJJJJJKKKKKKKKKKKKKKKKKKKKKKKLLLLLLLLMMMMM------------------
44*223334445655444444444567789999AAABBBBCCCDEEFFFGGHHIIIIIIIIJJJJJJJJKKKKKKKKKKKKKKKKKKKKKKKLLLLLLLMMMMMM------------------
43*2233334455544444444456678899AAAAABBBBCCDDEEFFFGGHHIIIIIIIIJJJJJJJKKKKKKKKKKKKKKKKKKKKKKKKLLLLLLLMMMMMM------------------
42*222334445554333444455678899AABBABBCCCCDEEFFFGGHHHHIIIIIIIIJJJJJJJKKKKKKKKKKKKKKKKKKKKKKKLLLLLLLMMMMMM-------------------
41*22233445555433334445678899AABBBBBCCCDDEEFFGGGHHHHHIIIIIIIJJJJJJJKKKKKKKKKKKKKKKKKKKKKKKLLLLLLLLMMMMMM-------------------
40*2223344555443333345667899AABBBCCCCDDDEEFFGGGGHGGGHHIIIIIIJJJJJJJKKKKKKKKKKKKKKKKKKKKKKKLLLLLLLLLMMMMM-------------------
39*2222344555443333445677899ABBBCCDDDDEEEFFFGGGGGGFGGHHIIIIJJJJJJJJKKKKKKKKKKKKKKKKKKKKKKLLLLLLLLLLLMMM--------------------
38*2222334454443333445677889AABCCCDDDEEFFFFFFFFFFFFGGHHIIIIJJJJJJJJJJJJJKKKKKKKKKKKKKKKKLLLLLLLLLLLLLLM--------------------
37*2222233444443333345677899AABCCDDEEEFFFFFFEEEEEFFGGHHIIIIJJJJJJJJJJJJJJJJKKKKKKKKKKKKKLLLLLLLLLLLLLLL--------------------
36*12222334444433333456678899ABBCDDEEEFFFEEEEDDDEFFGGHHIIIIIJJJJJJJJJJJJJJJJKKKKKKKKKKKKLLLLLLLLLLLLLLL--------------------
35*11112234444433223445677889AABBCDDDEEEEEEDDDDDEFGGGHHIIIIIIIIJJJJJJJJJJJJJKKKKKKKKKKKKLLLLLLKKKLLLLL---------------------
34*111112344443322223455677889AABCCCDDDDDDDDDDDEEFGGHHHIIIIIIIIJJJJJJJJJJJJJKKKKKKKKKKKKLLLLLKKKKLLLLL---------------------
33*1111123344433222223456677899ABBBCCDDDDCCCCDDEEFGGGHHIIIIIIIIIJJJJJJJJJJJJKKKKKKKKKKKLLLLLKKKKKLLLLL---------------------
32*1111122344433222223455667789AAABBCCCCCCCCCCDDEFGGGHHHHIIIIIIIIJJJJJJJJJJJKKKKKKKKKKKKLLLKKKKKKLLLL----------------------
31*111112234443322222344566777899AAABCCCCCCCCCCDEFGGHHHHHHIIIIIIIJJJJJJJJJJJKKKKKKKKKKKKKKKKKLKKKLLLL----------------------
30*11111123343332222234556677788999ABCCCCCCCCCCDEFFGGGHHHHIIIIIIIIJJJJJJJJJJKKKKKKKKKKKKKKKKKKKKLLLLL----------------------
29*1111112333333333334556777788899AABCCDDDDDDDDDEEFFGGHHHHIIIIIIIIIJJJJJJJJJKKKKKKKKKKKKKKKKKKKKKLLLL----------------------
28*111111233333333344556778888889AABCCDDEEEDDDDDEEEFGGHHHIIIIIIIIIIJJJJJJJJJJKKKKKKKKKKKKKKKKKKKKKLL-----------------------
27*21111222333333334566678899999AABBCDDEEEEEEEEEEEEFGHHIIIIIIIIIIIIIJJJJJJJJJKKKKKKKKKKKKKKKKKKKKKKK-----------------------
26*22111222333333334567778999AAABBCCCDEEEFFFFFFFFFFGGHIIIIIIIIIIIIIIJJJJJJJJJKKKKKKKKKKKKKKKKKKKKKKK-----------------------
25*222222223333333445678889AAABBBCCDDEEEFFFGGGGGFGGGHIIIIIIIIIIIIIIIIIIJJJJJJJKKKKKKKKKJJKKKKKKKKKKK-----------------------
24*222222222333333445678899ABBCCCDDEEEFFFGGGGGHHGGGHIIIHHHHIIHHHIIIIIIIIJJJJJJKKKKKKKKJJJJKKKKKKKKKK-----------------------
23*32222222223333344567889AABCCDDDEEFFFGGGGGGGHHHHHHIHHHGHHHHHHHIIIIIIIIIJJJJJKKKKKKKKJIIJKKKKKKKKKK-----------------------
22*22222222223333345667889ABBCDDEEEFFFGGGGGGGGGHHHHHHHGGGGGGHHHHIIIIIIIIIIJJJJKKKKKKKKJIIJJKKKKKKKKK-----------------------
21*32322222222333455678899ABCCDEEEFFFFFFFGGGFFGGGHHHHGGFGGGGHHHIIIIIIIIIIIIJJJJKKKKKKJJIIJJKKKKKKKKK-----------------------
20*22222222222333346678999ACCDEEEFFFFFFEFFFFFFFGGGGGGFFFFFGGGHHIIIIIIIIIIIIIJJJKKKKKKJJIIJJKKKKKKKKK-----------------------
19*2222222221223334567899ABCCDDEEFFFFFEEEFFEEEFFGGGGFEEEEFFGGHHIIIHHHHIIIIIIJJJJJJJKKKJIIIJJKJJJJJJKK----------------------
18*222222211122333456789ABBCCCDDEEFFFEDDEEEEEEEFFGGFFEDDEEFGGHHHIHHHHHHIIIIIJJJJJJJJJJJIIIJJJJJJJJJKK----------------------
17*222222111112233456789ABCCCCCCDEFFFEDDDEDDDDEEFFFFEDDDDEFGHHHHHHGHHHHIIIIJJJJJJJJJJJJIIJJJJJIIIJJJK----------------------
16*222221111112234567789ABCCBBCCDEEFEEDDDDDDCDDEEEEEEDDDDEFGHHHHGGGGHHHIIIIJJJJJJJJIIJJJJJIIIIIIIIIJK----------------------
15*222211111111234567899AABBBBBCDEFEEDCCCCCCCCDDEEDDDDDDDEFGHHHGGFGGGHHHIIIJJJJJJJIIIIJJIIIIIHHHHHIJJ----------------------
14*2222111111112344678899AAAABBCDDEEEDCCCCCCCCCDDDDDCDDDDEFGGGGFFFFFGGHHIIJJJJJIIIIIIIIIIIIHHHGGGHIIJ----------------------
13*222111111111233456789999AABBCDEEEDCBBBCCBBBCCCCCCCCDEEFGGGGFFEEEFFGHHIIJJIIIIIIHHHHIIIIHHGGGGGGHIJ----------------------
12*2222111111122344567889999ABCDDEEEDCBBBBBBBBBBCCBBCCDEEFGGGGFEEEEEFGHHIIIIIIIIIHHHHHHIIIHHGGGGGGHII----------------------
11*2222111111222344567788899ABCDDEEDCBAAABBAAAABBBBBCDDEFFGGFFEEDDDEFGHHIIIIIIIIIHHGGHHHIIHHGGGGGGHII----------------------
10*2222211112222334566777889ABCDDDDDCBAAAAAAAAAAAAABCDDEFFGGFEEDDDDEFGGHIIIIIIHIIHGGGGHHIIHHGFFFGGHII----------------------
9*2222211122222334456667789ABCCDDDDCBA99999999999AABCDEFFGFEEDDCCCDEFGHIIIHHHHHHHGGGGHHIHHGGFFFGGHII----------------------
8*2222221222222233455667789ABBCCDDCCBA999999988899ABCDDEFFFEDCCBBCDEFGHIIIHHHHHGGGGGGHHHHHGGFFFGHHII----------------------
7*2222222222222233445666789AABCCCDCCBA988888888889ABCCDEEFEEDCBBBCDEFGHIIIHHHHGGGFGGGHHHGGGGFFFFGHII----------------------
6*22222222222222334455677899ABBCCCCCBA987777778889ABBCDDEEEDDBBBBCDEFGHIIIHHGGGFFFFGGHGGGGGFFFFFGHII----------------------
5*22222222222222334455667899AABBCCCBBA987777778899ABCCDDEEEDCBBBBCDEFGHIIIHHGGFFFFFFGGGGFFFFEEEFGHII----------------------
4*222222222222223334556677899AABCCCBAA98766667889AABCCDDEEDDCBBBCCDEFGGHIIHHGGFEEEFFGGGGFFFEEEEFGHII----------------------
3*2222222222222233344556677889ABBBBBA988766667789AABCCDDEEDCCBBBCDDEFFGHHHHHGFFEEEEFGGGGFEEEEEEFGGHH----------------------
2*2222222222222333344455566789AABBBBA9876666677899ABCCDDDDDCCBBCDDEFFGGGHHGGGGFEDDEFFGGFEEDDDDEEFGHH----------------------
1*22222222222233333344445667889ABBBAA887666677889AABCCCCCDDCCCCCDEFFGGGGGGGGGGFEDDEEFGFEEDDDDDEEFGGG----------------------
+ + + + + + + + + + + + + + + + + + + + + + + +

Open Pit Optimization Training Workbook Page 12—3

Section 12—Adding Mining Restrictions

Step 3 Run LG

From the MANAGER menu select:

Group= DIPPER MINE PLANS

Operations = CALCULATION
Procedure description = NET$$ LG PIT (SIMPLE SLOPE) - P72031.DAT

Panels:

Page 12—4 Open Pit Optimization Training Workbook

 Section 12—Adding Mining Restrictions

Step 4 Compare pits with and without mining restrictions.

Make a VBM feature using procedure P72190.DAT. View pit in M650ED.

See following maps.

Without restrictions:

With restrictions:

Open Pit Optimization Training Workbook Page 12—5

Section 12—Adding Mining Restrictions

Page 12—6 Open Pit Optimization Training Workbook

Appendix
 Appendix

Appendix

Floating Cone 1. Economic input variables

Economic
Evaluation Item Example
Detailed Example / Metal price $1.15/lb cu
Calculation Overall recovery 85%
Treatment costs $0.55/lb cu
Waste mining cost $0.90/ton waste
Ore mining + Processing cost $3.25/ton ore (based on 0.90/ton mining +
2.35/ton processing)

Notes:
a. Prices and treatment costs are in terms of the metal being produced (e.g.
lb copper, oz gold) whereas mining and processing costs are in terms of tons
or rock (or waste).

b. Treatment costs include any cost normally accounted for on a lb metal

basis: smelting, refining, marketing, transportation, sxew, overheads etc...

c. Ore processing costs include any cost normally accounted for on a ton ore
basis: crushing/conveying, grincing, flotation, rehandling, heap preparation
etc..

2. Use economic input variables to calculate:

- net value/lb
- mine cutoff grade
- mill cutoff grade

- net value/lb = (price - treatment cost) * recovery = (1.15-.055) * .85 = $.51

/lb cu

- mine cutoff grade is the grade that will cover ore mining and processing
cost:

net value for a ton of ore w/ x %cu grade is

x/100 * 2,000lb/ton x $0.51/lb = x * 20 * 0.51

Mining and processing cost for a ton of ore = $3.25/ton of ore

Mine cutoff grade is found by solving for x

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Appendix

x*20*0.51 = 3.25 =>

x = 0.319%cu

-Mill cutoff grade is the grade that will cover the ore processing cost only:

net value is same as above (x*20*0.51)

processing cost for a ton of ore is $2.35 (3.25-0.90).

Solve for x:
x*20*0.51 = 2.35 => x = 0.230%cu

3. Cone evaluation

-The base of a an inverted cone is positioned in each block having grade

$mine cutoff
-Cone is projected up to surface at a specified angle
-Profit for each block is calculated inside cone where profit = revenue - cost
-The profits for all the blocks inside the cone are added together and
if sum$0 cone is mined
if sum < 0 cone is not mined.

Section X-X‘

50x50 blocks; y axis is elevation; block values are %cu

0.43
1.3
0.92 0.26 0.30
1.05 0.70
0.74 0.68

The section above shows:

7 blocks above mine cutoff of 0.319%cu
2 blocks above mill cutoff of 0.230%cu
All remaining blocks are waste with cu grade below mill cutoff. Surface is flat.

In this example 7 cones will be evaluated in top down order. Each block above mine cut-off will serve as
a cone base. Pit slope angle will be 45o.

Page a—2 Open Pit Optimization Training Workbook

 Appendix

³
µ 0.43 ´
¶ 1.3 · ¸ ¹
0.92 0.26 0.30
1.05 0.70
0.74 0.68

where ³, ´ etc is the cone #.

Cone Evaluation Order

Cone Number Base Ore Block
1 0.43
2 1.30
3 0.92
4 1.05
5 0.70
6 0.74
7 0.68

Assumptions:
Block size: 50’x50’x50’
Tonnage Factor: 12.5ft3/ton
Tons/block: 50x50x50 / 12.5 = 10,000
Net value: $0.51/lb cu
Ore mining and processing cost: $3.25/ton
Waste mining cost: $0.90/ton

Equations for calculating profit/block values when profit = revenue - costs:

1 Waste blocks:
revenue = 0
cost = 10,000 tons* $0.90/ton = $9,000
profit = 0 -9000 = -9,000
2 Blocks between mine and mill cutoff:
revenue = (%cu*20) lb/ton * $0.51/lb *10,000ton= 102,000 (%cu)
cost = 10,000tons * $3.25/tons = $32,500
profit = (102,000)(%cu) - 32,500
3 Blocks above mine cutoff:

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Appendix

Same as in case 2.
Profit = (102,000)(%cu)-32,500

Cone #1 evaluation

0.43

block type # of blocks profit decision

waste 3 -27,000
between mine and 0 0
mill cutoff
above mine cutoff 1 +11,360
total 4 -15,640 don’t mine cone

Cone #2 evaluation

0.43
1.30

block type # of blocks profit decision

waste 7 -63,000
between mine and 0 0
mill cutoff
above mine cutoff 2 +111,460
total 9 +48,460 mine cone

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 Appendix

Cone #3 evaluation

0.92

block type # of blocks profit decision

waste 6 -54,000
between mine and 0 0
mill cutoff
above mine cutoff 1 +61,340
total 7 +7,340 mine cone

Cone #4 evaluation

1.05

block type # of blocks profit decision

waste 8 -72 ,000
between mine and 0 0
mill cutoff
above mine cutoff 1 +74,600

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Appendix

total 9 +2,600 mine cone

Cone #5 evaluation

0.70

block type # of blocks profit decision

waste 4 -36,000
between mine and 0 0
mill cutoff
above mine cutoff 1 +38,900
total 5 +2,905 mine cone

Cone #6 evaluation

0.26

0.74

block type # of blocks profit decision

waste 4 -36,000

Page a—6 Open Pit Optimization Training Workbook

 Appendix

between mine and 1 -5,980

mill cutoff
above mine cutoff 1 +42,980
total 6 +1,000 mine cone

Cone #7 evaluation

0.30

0.68

block type # of blocks profit decision

waste 4 -36,000
between mine and 1 -1,900
mill cutoff
above mine cutoff 1 +36,860
total 6 -1,040 don’t mine cone

4. Comments

A Only blocks with values grater than the mine cutoff will be used as
cone bases

B Higher ore blocks are evaluated before lower ore blocks.

C Ore block profit from higher uneconomic cones will assist the ore
block at the base of a cone at a lower elevation (see cone #2)

D Blocks between mine ans mill cutoff have enough values to pay for
their processing cost but not enough to pay all of their mining cost.

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Appendix

If the ore block at the base of the cone can cover this unpaid part of
the mining cost plus the waste block mining costs then the cone
can be mined economically (as in cone #6)
If the ore block in the bottom of the cone cannot cover the unpaid
part of the mining cost plus the waste block mining costs then the
cone cannot be mined economically (as in cone #7).

Page a—8 Open Pit Optimization Training Workbook

 Appendix

2-D Lerchs-Grossmann Economic Evaluation Detailed Example

Assumptions:

45 degrees slope
mij = vij - cij (revenue - costs)

Block Values mij :

i j 1 2 3 4 5 6 7 8 9 10 11 12

1 -9 -9 -9 -9 -9 -9 -9 -9 -9 -9 -9 -9
2 -9 -9 -9 -9 -9 +11 -9 -9 -9 -9 -9 -9
3 -9 -9 -9 -9 -9 -9 +100 -9 -9 -9 -9 -9
4 -9 -9 -9 -9 -9 +61 -9 -6 -2 -9 -9
5 -9 -9 -9 -9 +75 +39 -9 -9 -9 -9
6 -9 -9 -9 -9 -9 +43 +37 -9 -9

Step 1

Add row 0 (with zero values) and column 0 (with same values as column 1).

i j 0 1 2 3 4 5 6 7 8 9 10 11 12

0 0 0 0 0 0 0 0 0 0 0 0 0 0
1 -9 -9 -9 -9 -9 -9 -9 -9 -9 -9 -9 -9 -9
2 -9 -9 -9 -9 -9 -9 +11 -9 -9 -9 -9 -9 -9
3 -9 -9 -9 -9 -9 -9 -9 +100 -9 -9 -9 -9 -9
4 -9 -9 -9 -9 -9 -9 +61 -9 -6 -2 -9 -9
5 -9 -9 -9 -9 -9 +75 +39 -9 -9 -9 -9
6 -9 -9 -9 -9 -9 -9 +43 +37 -9 -9

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Appendix

Step 2

Column by column top down cumulative sums of mij

i j 0 1 2 3 4 5 6 7 8 9 10 11 12
0 0 0 0 0 0 0 0 0 0 0 0 0 0
1 -9 -9 -9 -9 -9 -9 -9 -9 -9 -9 -9 -9 -9
2 -18 -18 -18 -18 -18 -18 +2 -18 -18 -18 -18 -18 -18
3 -27 -27 -27 -27 -27 -27 -7 +82 -27 -27 -27 -27 -27
4 -36 -36 -36 -36 -36 -36 +54 +73 -33 -29 -36 -36
5 -45 -45 -45 -45 -45 +39 +93 +64 -42 -38 -45
6 -54 -54 -54 -54 -54 +30 +136 +101 -51 -47

Step 3

Left to right cumulative sums of Pij

P0j = 0
Pij = mij + max of (Pi-1,j-1, Pi,j-1,Pi+1,j-1)

Page a—10 Open Pit Optimization Training Workbook

 Appendix

Example:
P02 = 0
P21 = m21 + max (P10,P20,P30)= -18 + max (-9,-18,-27) = -18-9 = -27
P49 = m49 + max (P38,P48,P58) = -29 + max (+88,+116,+144) = -29 +144 = +115

i j 0 1 2 3 4 5 6 7 8 9 10 11 12
0 0 0 0 0 0 0 0 0 0 0 0 0 0
1 -9 -9 -9 -9 -9 -9 -9 -9 -9 +58 +61 +62 +61
2 -18 -27 -27 -27 -27 -27 -7 -25 +67 +70 +71 +70 +52
3 -27 -45 -54 -54 -54 -54 -34 +85 +88 +89 +88 +61 +43
4 -36 -63 -81 -90 -90 -90 +3 +115 +116 +115 +79 +52
5 -45 -81 -108 -126 -135 -51 +42 +149 +144 +106 +70
6 -54 -99 -135 -162 -180 -105 +85 +186 +135 +97

Step 4

Find Max m1j.

Make a path connecting max m1j with max m k,j-1 (k = 1,2).
Continue connecting the last mij with the max m k,j-1 (k=i-1,i,i+1)
In the our case the highlighted path below is the optimum contour.

i j 0 1 2 3 4 5 6 7 8 9 10 11 12
0 0 0 0 0 0 0 0 0 0 0 0 0 0
1 -9 -9 -9 -9 -9 -9 -9 -9 -9 +58 +61 +62 +61
2 -18 -27 -27 -27 -27 -27 -7 -25 +67 +70 +71 +70 +52
3 -27 -45 -54 -54 -54 -54 -34 +85 +88 +89 +88 +61 +43
4 -36 -63 -81 -90 -90 -90 +3 +115 +116 +115 +79 +52
5 -45 -81 -108 -126 -135 -51 +42 +149 +144 +106 +70
6 -54 -99 -135 -162 -180 -105 +85 +186 +135 +97

Floating Cone vs. Lerchs-Grossmann (2-D)

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Appendix

1. Over mining with Floating Cone

i j 1 2 3 4 5
1 -1 -1 -4 -1 -1
2 -1 +5 -4 +5 -1
3 -2 -3 +3 -3 -2

The situation above (highlighted blocks) gives a total value of +1

Let’s apply L-G.

Add extra row, column:

i j 0 1 2 3 4 5
0 0 0 0 0 0 0
1 -1 -1 -1 -4 -1 -1
2 -1 -1 +5 -4 +5 -1
3 -2 -2 -3 +3 -3 -2

Top to down column by column cumulative mij:

i j 0 1 2 3 4 5
0 0 0 0 0 0 0
1 -1 -1 -1 -4 -1 -1
2 -2 -2 +4 -8 +4 -2
3 -4 -4 +1 -5 +1 -4

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 Appendix

Left to right cumulative Pij:

i j 0 1 2 3 4 5
0 0 0 0 0 0 0
1 -1 -1 -1 -1 -1 +2
2 -2 -3 +3 -5 +3 +1
3 -4 -6 -2 -2 -1 -1

Optimum path:

i j 0 1 2 3 4 5
0 0 0 0 0 0 0
1 -1 -1 -1 -1 -1 +2
2 -2 -3 +3 -5 +3 +1
3 -4 -6 -2 -2 -1 -1

The total value of blocks mined (using original values) is +2 (over mining of waste was avoided).

2. Undermining with Floating Cone

i j 1 2 3 4 5 6 7
1 -1 -1 -1 -1 -1 -1 -1
2 -2 -2 -2 -2 -2 -2 -2
3 -3 -3 +10 -3 +10 -3 -3

Nothing can be mined in the above example.

Open Pit Optimization Training Workbook Page a—13

Appendix

Let’s run L-G.

Add row, column:

i j 0 1 2 3 4 5 6 7
0 0 0 0 0 0 0 0 0
1 -1 -1 -1 -1 -1 -1 -1 -1
2 -2 -2 -2 -2 -2 -2 -2 -2
3 -3 -3 -3 +10 -3 +10 -3 -3

Top down, column by column cumulative mij:

i j 0 1 2 3 4 5 6 7
0 0 0 0 0 0 0 0 0
1 -1 -1 -1 -1 -1 -1 -1 -1
2 -3 -3 -3 -3 -3 -3 -3 -3
3 -6 -6 -6 +7 -6 +7 -6 -6

Left to right cumulative Pij:

i j 0 1 2 3 4 5 6 7
0 0 0 0 0 0 0 0 0
1 -1 -1 -1 -1 -1 -1 -1 +3
2 -3 -4 -4 -4 0 -3 +4 +1
3 -6 -9 -10 +3 -3 +7 +1 -2

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 Appendix

Optimum path:

i j 0 1 2 3 4 5 6 7
0 0 0 0 0 0 0 0 0
1 -1 -1 -1 -1 -1 -1 -1 +3
2 -3 -4 -4 -4 0 -3 +4 +1
3 -6 -9 -10 +3 -3 +7 +1 -2

The total value (based on original values) of the highlighted blocks is +3, therefore they will be mined.

Open Pit Optimization Training Workbook Page a—15

Appendix

Technical Papers

The following technical papers have been included for your reference.

Optimum Design of Open-Pit Mines, Helmut Lerchs & Ingo F. Grossmann

Joint C.O.R.S. and O.R.S.A. Conference, Montreal, May 27-29, 1964

Pit Optimization, 1998 Mintec Seminar

Dipper Pit Designs, 1997 Mintec Seminar

Dipper Open Pit Design, 1996 Mintec Seminar (revised January 1999)

Page a—16 Open Pit Optimization Training Workbook