An Introduction to MS Reserve Note – MS Reserve is a product of Mintec incorporated a portion of Hexagon Mining. Credit for the program is given to the developers. These slides portray and include screen shots from the program.

MS Reserve is a Option on the MineSight Pull Down

When You Click It the Splash Screen Comes Up Click Start

MS Reserve tends to be Slow to Come On (Makes you panic that nothing is going to happen)

The First Thing You Must Do Is Explain Your Reserves Logic (what exactly do you want to consider in identifying ore?) From the drop-down file Menu pick new Reserves Logic.

The New Plan Window Opens We will begin by Identifying our file 10 (PCF) – table of Contents file And our block model

A Click in the Blank Brings Up the 3 dot “Search and Detail” Icon Click on the icon.

Find and Click on Your File 10 Yes I know this is going To be really hard. Then click open

Oh Baby! Its In There Now do it for the block Model (your file 15)

Just to Keep Life Exciting This Time It’s a Pull Down Menu Remember – the program Now has your table of Contents so it knows Exactly which file 15’s You have.

This Selection Looks Real Tuff

Now We Need to Give Our Plan A Name

What is the Multiple Ore Percent Business Suppose a deposit has a Fossilized placer gold that Was intruded by a Copper bearing intrusive. One might choose to have 2 different types of ore. It is now possible a block Might be made up of W Percent ore 1, X percent Of ore 2, y percent of waste, And z percent of air. Most often we will have just one ore type and a zone code for things like oxide, primary Sulfide (just like your model) – We will usually keep false – no need to track multiple ore Percentages.

Treat Missing Values as 0 Most block models contain Enough area around the Ore that we cannot Reasonably interpolate Mineral values from distant Drill hole. Most model valuing routines Leave no value here. If you don’t know their Is mineral do you want to Assume there is none? Most people stick with True On this one.

The Next 2 Lines are Tricky Blue Sky and Air (20%) When I figure the ore tonnage is this Block 20% ore? Or is it (100%-20%)*20% = 16% ore? Did we already consider that part of This block was air when we measured Ore percent. For your block model – and most things I’ve shown you how to do, the answer Is yes. Ore (20%)

Now What Do I Do? Is the ore clipped to Topo – ie did you already Eliminate the air Portion of the block True

Use Topo/ Partial Min True means I would treat That block as 20% ore. False means I would multiple Both the ore% and rock% Ie – 16% This time the default master Leads us down the wrong Path. Change it to true.

It Needs the Item that Gives the Rock Percentage in the Block Model Topo is the culturally Popular choice of Mintec In your model it is Rock%

Click Ok to Complete the Initial Set Up

Now We Are Ready to Tell it What to Track In our case We have such Things as oxide Sulfide And secondary Enrichment. This is in our Rtype variable

I Click on the Line and on the Pull Down Select the Block Model Variable Rtype is our type Of ore The % of a block That is ore is the Rock% Density is Contained or Stored in SG

I Need to Explain the Items I Want to Track Click the plus Grade icon To identify a Grade you want To track The new grade Dialog box Appears.

My First Interest is the Copper Grade I type in the label of my choice MWA means mass weighted average Ie weighting by mass. In this case that means A copper grade of 1% calculates Out this way 1 metric tonne is 2205 lbs 1% is 2205*.01 = 22.05 lbs of copper Click OK

Now I Have to Identify the Block Model Variable that Contains the Info In this model the item is Cu%

Enter Your Other Grade Items

MS Reserve Allows Calculated Fields An example might be A crude estimate of The value per tonne Of Ore.

Click to Add a New Field The Dialog Opens I’ve got what I Want here so I Will click Ok

Put the Curser in the Edit Box and Click the 3 Cute Dots You get the expression Editor to write your Equation.

We Type in the Expression and Click OK Note – the equation Entered here reflects An example of how Metals might be Valued. You will use Your own price Estimates for the Values of the metals

We Next Move to Materials Set Here we set Up zones and Apply cut-off Points for Reporting Purposes.

You Have Several Options for Setting Up Zones You can manually add or delete zones You can import and export zone files You can have the computer read your Reserves logic and copy the applicable Fields.

If We Go Auto on This It Picks the Values out of My Ore Type Variable I can now edit For things to Make more Sense.

I Will Retype Rtype 8 for Waste and Make 0 a Default I can put the Curser in a field And retype which Is how I got waste And set 0 as The value A click on a box Will make Something the Default (remember I Said assume a Nil value was to Be considered 0)

Next I Type in a More Understandable Meaning for the Ore Type Code

For Each Ore Type I can adjust default densities and recoveries But I can also subdivide each ore type by Its grade – ie I can put ore into different Grade range binds. This can be very valuable for helping me to determine How much of my tonnage meets certain grade Requirements.

The First Question I Have to Answer is Grade of What Control Grade Allows Me to Pick Any of the Grade Items I selected for My reserves logic. For a One Product Mine or a One Product with a byproduct we pick Up on the side this is a no brainer. For a coproduct mine where ore value Comes from more than one product This can be an issue. Should my cuttoff be set on copper Gold, silver or iron.

Debating Iron is not a major product so we throw that out. Our previous estimates suggested that silver would not be a major economic driver Gold and Copper together determine ore value If we pick either one alone we might not follow the value of the ore The best binning measure would have something to do with over-all ore value.

Our Problem Even though we added a calculated field for ore value this variable is not in the block model to be available. If I wanted to use ore value I would have to have previously calculated my estimate and stored it in the block model I didn’t do this. For this example I will bin by copper grade

For My Low Grade I am typing in my first estimate of my break-even cut-off grade for each type of ore A break-even cut-off grade is the minimum amount of the metal of interest That must be present to justify processing the rock to recover the metal. (It is based on economics. I made my guess by comparison to other copper Mines handling a particular type of ore).

By Putting a Check in the Little Bin Box I Can Designate a Material As Waste

I Can Add Other Cut-Off Grades to Help Me Evaluate the Amount of Material Available if I Use a Higher Cut-Off

When We Are Done Creating the Reserves Logic Scheme Close the Screen Click the Red X

We Now Prepare to Tell the Computer the Geometry of What We Want to Report On We can report on The content of Specific cuts we Drew out Content between Surfaces We can simply set A range on a Portion of a model

Lets Start Simple (What’s in my Block Model) When I Select range I have control Of what part Of the block Model I want To study. In this case Lets try the Whole thing.

Now Lets Calculate the Reserves A little green progress bar moves across the screen as the work is done

It Moves to Reporting And claims it Calculated a Cut.

I Can See the Fields Available for Reporting The list pops up

Do Some Table Aranging Pivot Grid is items available My rows will be material (ie – Oxide, sulfide etc) My columns will be type (ore, waste) And I will report these items

Lets Take a Look at My Table I can see I have 762.5 million cubic meters of Ore in the Model Not Surprisingly most of the Model is waste I also see something is Wacko in Denmark How the crud does 762.5 million cubic meters Of material become 60 million tonnes We are not mining helium here

What the Heck Happened to My Tonnes We know that volume * sg Item is the tonnage Copper ore has about a 2.3 To 2.5 sg SO WHAT HAPPENED! There is my Problem – The block model Is missing sg I know I pulled sg right out of the block model so lets see What in there.

What Does That Mean Calculate your own tonnage from volume 762.5 Million * 2.4 = 1.83 Billion Tonnes of ore above the selected copper cut-off

How Much Ore Was Below the Cut-Off Grades Selected Earlier We have about 139 million cubic meters of ore we discarded as being Below our cut-off 139*2.4 = 334 million tonnes of low grade material

Grade Tonnage Relation I can get the Report to “bin” my Tonnages by Cut-off Grade All I had to do was To do my rows by Cut-off grade instead Of material

Doing A Grade Tonnage Curve in Excel Grand total ore is 2.16 Billion Tonnes At 0.1 Cut-off the total drops to 1.83 Billion At 0.15 we loose 200 million cubic meters *2.4 = 482 million tonnes Leaving us 1.35 billion tonnes At 0.2 we loose another 30.9 million cubic meters *2.4 = 74 million tons Leaving us about 1.28 billion And so it goes – plot.

What More Could We Ask I could get That cut-off Grade Break-down By ore type And bench I have a great May options For organizing output

I Could be Displeased that my Cut-Offs are in Copper% Remember we made this decision When we set up our reserves logic To use copper as our cut-off item Slide 36

The Great Grade Debate If I have just one valuable metal and everything else is a byproduct we can do this If Gold and Copper both determine ore value then using a Gold cut-off is not really better than Copper Best choice here is to add a grade item to our reserves logic for value per ton and then use that as our cut-off item.

The Problem We have no value per tonne item with any values in it. Solutions We need to find an item in our block model we can use to store the information Remember each variable in the block model has a fixed range and precision so picking a variable with a range up to 3 if we expect ore values of 100 per tonne is going to end badly.

How Can I Get a Value Per Tonne in My Block Model If you don’t know your metal prices you can’t If you do a very simple possibility is to go to MineSight Compass and use the user calculation routine I could for example set value per tonne to be Cu%* $3/lb*22.05 lb/% + Au*$1200/oz + Ag*$25/oz This simplistic approach assumes 100% recovery from any type of ore

Another Way MSOPIT has a detailed economics panel that allows us to have different processing costs and recovery for every type of ore It also can be run to calculate a reserve report And to save value per tonne without mining cost but with processing costs back into the block model If we know our processing costs and recoveries for each ore type we can get more precise values into the block model and use them.

What if I’m More Interested In Reserves in a Pit OK – I might also be Interested in reserves Not in a pit

Remember I Said We Could Compute Reserves Between Two Gridded Surface Files Pick Surfaces Go Back to Geometry Anyone think I’m about Ready to compute reserves Between an undisturbed Gridded surface and the Ultimate pit?

Click on Open GSF Pick Opti13 (where the ultimate pit is at) And click ok

I Get The Variable List For Opti13 Now I will check Off my pre and Post mine surface

I Can Use Select All Select None Select Inverse to Avoid corporal tunnel from picking

I’ll Still Stick to the Whole Model Range

Click Calculate Reserves

And Wa La