1. Computer Aided Design of an Open Pit ©2007 Dr. B. C. Paul

2. MineSight Begins By Asking you For View Areas and Block Dimensions You must have an idea Of what the coordinates Are for your ore body And what units because You have to specify Project limits. You also need to have An idea of block size.

3. The Block Size Interaction  Splitting blocks with benches is a mathematical complexity  Try to make block height correspond to bench height –Bench height is related to equipment size  Shovels have to be able to dig to top of bench  A big shovel goes with a big truck  Big shovels and trucks go with big deposits (obviously you need an idea of how big your deposit is) –Also related to homogeneity of ore  A Bench will generally mix all ore over its vertical height – if you need vertical selection you need shorter benches –Taller benches usually more economic  Fewer levels to maintain  Larger drills and more drill hole spacing

4. We Will Get Our Surface Topography Set Up This may involve Digitizing or Importing from An Autocad or Similar digital file Of the contours (I am not showing you enough about MineSight to do this part)

5. Create A 3D Surface from the Topo

6. Load Your Assay and Drill Hole Data into the Program

7. Composite Samples to Bench Height

8. Use Chosen Interpolation Routine to Estimate Block Grades in Model

9. Where We Are At  We Have a Geologic Block Model –We have Geologic reserves and grade and tonnage  Common Procedure is to Find Out How Much is Economically Minable given the overburden –This is done with a computer routine that tries to select the largest set of blocks that keeps adding to the pits value –This is where we go next

10. Start MineSight® 3D Browse to the 315 file area On the server

11. Preparing Files to Receive Data  The Pit Optimization Procedures We Will Use Require Specialized Places to Store Information –They must follow naming conventions used by the computer codes –The program therefore contains file initiation routines to ready files for that purpose

12. What Is Required  You Must Have a Gridded Surface Model of Your Current Topography  You Must Use Minesight Compass Routines for setting up the files

13. What You Will Do to Prepare  You need an a special file 13 (gridded surface file) that allows for multiple pit surfaces and some control variables  You need to have a file 15 (block model) with extra-variables to store information about block values and material destinations –The pit generation routines will send material to various processing facilities.

14. Lets Start Out Getting That Special File 13 Left Click the MineSight Tab To pull down The menu On the pull down Menu left click “Compass” (this will start MineSight Compass which Is a big collection Of programs for Doing stuff)

15. MineSight Compass Starts Left Click on the “Project” Tab (This selects The project Screen in Compass) Left Click the Little folder open Icon to start The project file editor

16. We Are Going to Create a New File 13 with Extra Stuff in it Left click file to Pull down the menu Left click new to Select the new file option.

17. The Pop-Up Menu Wants to Know What Kind of File We Will Create Different types of Files have Identifying numbers We want to create A file 13 (which Means the type Of file that Contains gridded Surface Information) Left click on 13 - GSF

18. We Now Tell it We Want a Special GSF for MineSight Economic Planner Left click on the Little box for MS-EP GSF Note the Check mark That appears

19. It Needs to Know Where to Find the Surface Initialization Data Left click the Little down arrow Beside the file Location area. A drop down Menu shows all Existing file 13s (this is why You needed to Have an existing File 13) Select the existing File 13 for the Unmined Surface.

20. Tell it Where the Current Topography is in the File You Selected From the down Arrow select Topog (or what Ever variable You stored Topo data in) As you can See it has Now initialized Our special file 13 for MineSight Economic Planner Now click the Save icon to Save the file.

21. The Save Menu Comes Up to Ask You What Name to Save the File Under You are limited To 6 characters Before “.dat” And the last Two should be 13 so you and The program Can see it is a File 13. I named mine Opti13.dat Now I left click Save.

22. The Program Proclaims that the New File has been listed in the Project Control File This is a good Thing. Left Click ok.

23. Now Exit Out of Compass Left click File and from The pull down Menu select “Quit”

24. Making Sure Our Block Model is Ready  It already has our ore grades and rock items in  But the routines we will use need to have some extra variables to store info in. –One thought is why didn’t I fix the model right to begin with –Other reality is you will never foresee all needs so lets just learn how to fix the variable problem when it happens

25. To Open My Block Model Go to the Data Manager and Select Block Model

26. With Block Model Highlight Click the Right Mouse Key This will cause a Menu to pop up Left Click the Open Option on the menu

27. The Block Model Shows Up I am going to use The “Query” Function to ask What variables Are in the model To do this I Click on the little Question mark Icon.

28. A Dialog Box Opens at the Bottom and Advises me to click on anything I want to know about Since all I want Is to know What variables Are in the block Model I can Really click it anywhere I happened to Click it here

29. The Query Report Box Pops Up I’m going to check The variables in The block model. Since I’m a cool Person my model Already has the Key extra Variables in it (yours will have Nothing below Value but yours Will look like this After you follow The next Instructions)

30. Yes Your Poor Model Will Look Like This

31. What MSOPT Wants  The routine we will use to find the ultimate pit requires us have these variables in the model –VALPB (the value of the block) –VALPT (the value per ton of material) –DEST1 (the destination for the material considering break even economics) –PUSH (the stage when a block is mined – if the model is working out a sequence) –IPER (when the block is mined –DEST2 (where the material is sent when the block was mined)

32. Open Compass and Pick the Project Tab and Project Editor Icon as before

33. The Project File Editor Opens

34. Pull Down the File Menu and Select Clone We are going to Make a copy of Our block model – Add the extract Variables to the Model and then Save it back to Our original block Model We all know windows Has a thing about Saving to itself.

35. Clone From Your File 15 (a file 15 is a block model) Pull down and Select from the Menu Then click on the Clone button. Check Edit items

36. Type in the Extra Variables Also enter minimum Maximum and precision Values as shown here Left click the Save icon When you are done

37. It Will Want You to Name Your File This file is actually A temporary copied File I named mine 15cp15.dat (it’s a 15 meter Bench height Project, cp is for Copy and the second 15 was so I would Always know this Was a file 15 (block Model) Then I left click on Save

38. It Gives You a Jubilant Success Message

39. Now We Are Going to Clone our Added Variables File Back to the Original Pull down the file menu and Select Clone Select our new file as the clone source But note I did not check the edit box This time. Then hit save.

40. It Asks You Where You Want to Save the Result Select the name of your Original block model (file 15) and hit save.

41. Since You Are About to Overwrite Your Old File it Gives You Repeated Warnings that your Children will be Born Naked if you do this

42. You Have to Confirm that You Do Intend to Overwrite

43. Now We Are Ready to Go! We will use an Ultimate Pit Routine Called MSOPIT Left Click the MineSight tab On the drop Down menu Choose MSEP (MineSight Economic Planner) On the side menu Pick MSOPIT

44. Trouble Shooting Note  If MineSight Economic Planner is Grayed Out on the pull down tab there is a problem with your computers settings –See the System Administrator for help (your stuck until you do)

45. MineSight® Economic Planner Comes Up to Help You With Your Pit

46. Economic Planner is Mostly New Routines The Panel to the Side Shows you the Steps You Will be Lead Through to get to your Pit design. (Kind of a nice Change from the Wonderings we have Been doing not Knowing for sure Where we were going) Right Hand Side has input panels it needs

47. It Has Improved Help Facilities Pull down the help Menu Pick Panel help for An explanation Of each panel entry

48. The Panel Help Gives an Explanation of the Variables to be Entered on the Screen

49. It Needs To Know Where Your Block Model Is You probably have Only one file 15 to choose from It needs your ore and Waste density (ie water =1) If we assume our Cu ore and waste Are about 141lb/ft^3 That’s 2.23 for both

50. You Identify the part of your block model that is of mining interest This would let You speed things Up by excluding Areas that don’t Have ore values It also provides you With hints on the Number of rows, Columns and levels In your model in case You want to look at Everything. It lets you specify what to do if it mines to the edge of the model (warning – the program cannot calculate stripping costs outsideThe model area)

51. Click on the Next Step When Its Time to Move On

52. It Needs to Know About the Surfaces File It Will Use. Click on the pull down arrow to See the available files. It is critical that you select the Special file 13 you made for MSEP earlier (regular file 13s Don’t contain needed variables)

53. Trouble Shooting Note  Sometimes when you hit the pull down choice menu you don’t see the files you expect –You may not see the file 13 you just made  MineSight® has the undesirable ability to get the graphics interface, MineSight Compass, and MineSight Economic Planner in different directories –How this could happen is not well understood

54. If You Want to Make Sure You Are in the Right Directory with Economic Planner Click on the Options Heading And Pick Manage Variables From the pull down menu

55. The Manage Variables Screen Comes Up What you really want to see is if the Path leads to the right directory and Project file. (If you are not being allowed to select Files you know you have this path Will probably not be pointing to the Right file) If you find your in the wrong place – the next slides will help you fix it

56. Get Out Of MSOPIT and Go to MineSight Compass Remember – You are only doing this If you have MineSight Economic Planner off in the wrong directory! (If life is good and you don’t have this problem you Can skip the slides on fixing the problem)

57. In Compass Go to File and Open

58. Work Around the Directories in Project File to Find the Right Directory This directory maneuvering works like Any other Windows based program.

59. Double Click the Correct Directory

60. It Will Open and Show You the Project File for that Directory Left click to Pick it Then click on Open

61. Getting Back From Our Detour (If you had to take a Detour Restart MSOPIT) It needs to know where the starting Surface is located (MSOPIT puts the unmined surface In pit #0 so we will almost always Be starting there) Enter or accept the default value Of 0.

62. It Needs to Know About Things That Would Limit Where it can put the pit You can limit the Areas of the model Used to compute Earnings (no need to Do that now). You could tell it not to Mine below a certain Depth (no need to do That now) You could designate surface areas that Must not be disturbed. (you would have To put a code number into the surface file which We did not do) Surface areas with the code number entered here Could not be disturbed.

63. Where A Plus Is By a File for the Next Step Click on the Plus to Expand the Folder This of course Is very typical Windows rules

64. It Needs to Know How to Get the Design Variable Optimum Pits Come From Building the Biggest Profit Our Block Model is Geologic and contains Geologic data We can tell the program To calculate our earnings From the geology or We can tell it we have Already put a dollar/ton Value on each block. (We don’t have values Pre-computed) The interval is a report diagnostic tool – I’m putting in 5000 (you’ll see what it did later in a report)

65. It Needs to Know Which Variable Tells it How Much of a Block is Made of Rock (Remember we do have air blocks above the surface) We don’t have to deal With more complex Optional items here Use the drop down Arrow to show you A menu of choices and Pick the variable that Has the % rock in it (in your case it is Topo%)

66. Program Needs the Range of Block Values and the Precision You Require Defaults here are Probably Ok The Last Item Cut-Off in Dollars/ton Needs a little more Explanation. (It’s the cost For removing the Worst junk and value Of your best block) Default here is ok.

67. Cut-Off In Dollars Per Ton  We are used to thinking of Cut-Off Grades – an amount of Cu necessary to pay the bills  To the computer model any block is a candidate for removal if needed to forward a maximum profit –There is a certain cost that will be incurred to move a block

68. What of the Block That Can’t Pay Its Way  Suppose a Block would cost $7 to make into a Cu and Moly oxide product –Suppose that $3.25 in mining cost and $3.75 is the cost for downstream processing –Suppose the Cu and Mo in that block are worth $5.25 at the market.  Clearly the block is below break even COV and would likely be a negative value  Suppose we have to mine to the block to get to good stuff –We now have $3.25 into the block –The stuff in it is worth $5.25 but to process the value out of it will cost $3.75  Will You Refuse to Process the Ore and take $1.50?

69. Point  Break-Even COV may determine what blocks are ore mining targets  What happens to ore after it has been mined depends on what it is worth compared to down stream processes. –Obviously I’m not going to throw away $1.50 because I’m having a tantrum about my $3.25 mining cost

70. How to Implement This  What will determine the fate of a removed block –Cost of down stream processing –Any extra cost to take it to processing vs. waste  The computer will define any block which cannot pay downstream processing costs as waste –We need to enter the minimum cost for treating a block as something other than overburden waste

71. Enter the $/ton cost for Downstream Processing as Ore My best deal Would be to Leach it

72. Leaching Costs  Suppose that Leach Cu costs me about –65 cents/lb to mine Cu –30 cents/lb Cu to run pumps and pads –10 cents/lb SX-EW  Not in a form to get me cost/ton for processing –However I can try a ratio  Mining is about $3.25/ton  30/65 = X/3.25 –X= about $1.5/ton –If the block is not worth $1.5/ton it won’t pay to process it (about $1.65/metric tonne). –I can classify it as waste and stop doing economic calculations on it.

73. The Case for Leaching  It is possible that below BECOV the ore will go to leach –If you leach your down stream process cost will be less –But you will loose all of your moly and part of your Cu  You need to evaluate which will be more profitable – you might go with leaching –This would of course mean a different down stream process cost.

74. The Program Now Needs Costs For Creating an Economic Block Model from the Geologic You can import these Parameters from Another project or Export the values You determine for use In later projects

75. It Needs to Know the Assay Value to Track and Density of Ore I’m going to look at Cu and Moly for Determining block value I already have the Rock density picked Remember the variable names are selected From a pull down menu.

76. Enter My Material Types Many deposits have More than one type Of ore or perhaps An ore and waste A variable in the Block model will have That code number In it. It will usually be the Type variable which Your block model is Required to have.

77. But I Didn’t Ever Set Material Codes in the Block Model!?? Thus the type variable Has nothing in it. The next item asks for What to use as a Default if no value is Found in the type Variable. When I pick 1 this one Matches the table below And will have the Computer calculate The value of each Block using the formulas I will enter.

78. Enter My Material Types and Where It Might Go Since I have Simple geology I Have Cu ore If its high enough It goes to the Mill If not it is considered For leach If not that good I will Just dump it (Note I am putting Labels on my ore Types and destinations)

79. If I Click on a Brown Box In the Matrix it Will Activate My Economic Input Click Here Note My Economic Input has come alive It wants to Know about Costs and Earnings Associated With ore it Sends to the mill

80. I Enter My Costs for the Mill Route $4.24/metric tonne to mill the ore and Make concentrates $3.25/tonne to mine (your costs may Be different)

81. Enter My Returns from Processing If we figure the value of Cu in concentrates as $1.05 And value of Mo in concentrates as $4.00 89% recovery on The Cu And 75% on the Mo

82. Where Did Those Numbers Come From?  Value of Cu in concentrate –Value of metallic Cu (which you estimated from price history)  Minus refining charge per lb  Minus smelting charge per lb/Cu  Minus transportation charge –Use cost per ton to transport to smelter –Use about 30% Cu in concentrates to get that on a per lb basis –This will leave you with value of Cu in concentrates at the concentrator site.

83. Moly Value Similar  Value per lb of Moly in Moly oxide –Subtract roasting cost per lb –Subtract out the transportation cost per lb –Get the value per lb is sulfide concentrate at the mine site  Where did the recovery values come from –Typical recoveries from mineral processing handbooks and articles.

84. Enter the Factors and Click Apply Click apply when data entry is complete for this material and destination Factors account for Prices in lbs, Grades in percents Volumes in cubic Meters and costs in $/metric tonne

85. How Did You Get That Factor net value/ ton= (x/100)*22046.03lbs/ton (metric) * ($/lb) where, $/lb is the price of the cu

86. It Now Declares it has part of the Information Matrix Ready to Use We now click our leach ore

87. Input My Leach Ore Parameters Mining Costs I Assumed constant Leach Cu Recovery is Lower (say 70%) I put in $1.15/lb For Cu since Electrowin is only About $0.15/lb I used $1.65 per Metric Tonne for leach operations I assumed no moly recovery

88. Now I Input My Dump Parameters Distinctive – no processing costs (unless you have a special dumping cost) With waste you Also will get no Recovery.

89. What Will the Computer Do With This Stuff  It will calculate the value of each block from its recoverable metal content (or lack there-of) –If the value is greater than the mining and processing cost the block will become a mining target and the model will look at what has to be moved to get it.  If the block will cost more to mine and process than it will make then the block is not a mining target but it might still be in the way of something that is.  If the block has to be moved to get to something else the computer will look at whether it has enough value to justify processing  If more than one process is available the model will look for what ever gets the most net value of a block

90. Steps Not Required Remain Grayed Out

91. We Now Deal With Overburden Mining Costs Some of our blocks Don’t even have A Cu or Mo grade Estimated to exist – These will be just In the way blocks What does it cost Us to mine them Vs. Ore material that Does have a grade -I’m using a flat $3.25 Right now

92. Options We Are Not Using Mining Costs actually Increase as we mine Deeper. If we wanted to Include this detail We would check Off the box. Then a grayed out Screen on mining Cost with depth Would come to life And we would have To fill it out.

93. A Quarry Option Sometimes we Mine all of a top Bench and work Down a bench At a time. We can designate What portion of a Year it takes to Mine a bench (5 benches in a Year enter.2. 1 Bench every 5 Years enter 5 etc) When you mine top down the future earnings will be discounted with time So you enter your discount rate for economic analysis

94. Next We Tell It About Our Pit Slopes I’m using a constant Slope with a Minimum value of 57 degrees (like Cannanea Mex)

95. Slope Issues  In Rock Mechanics You Learn about Slope Stability in Open pits –If an over-all pit slope daylights significant fracture patterns the whole side of the pit can slide in (potentially loosing you your investment)  In many cases it makes a difference which side of the pit –A fracture that could daylight near the toe of benches on one side would be pointing up on the other side –The program allows you to adjust pit slope by azimuth  Sometimes different materials will support different slopes –Can enter complex slopes that depend on material type –Obviously material type would have to be coded into the block model

96. It Needs to Know the Numeric Technique to Use to Find the Largest Profit increasing Pit This set determines Whether you are Doing ultimate pits Or nested pits (right now we are After base ultimate Pit) You Choose Between Floating Cone and Learch Grossman

97. The Pit Design Choice  A floating cone picks a block – cones up and sees whether the cone makes money. –If it does it mines it –Simple Coding and Explanation –Considered a Heuristic trial and error approach  Lerch Grossman uses powerful math to solve a transformed problem –Much more computer intensive –Can do some strange things at times –Is considered an analytical solution

98. I Picked Floating Cone for this example (its faster) I could Specify a Minimum pit Bottom radius (real equipment Needs room to Work) I’m not going to Impose that Detail right now.

99. Set the Area Where the Routine Can Look for a Solution Pit For an ultimate pit I can default on everything and give the entire block model Area as the place to look for a pit

100. Output Destination I can also specify A limiting surface That the pit must Be within. (right now I am Going to default To the starting Topography (pit 0) There are 50 storage bins – you can specify where you want to store your result (default is location 1 for the ultimate pit)

101. I Can Tell the Program to Save Me Some Example Calculations on Specific Blocks or Groups of Blocks (so I can check on it) Right now I’m not going to audit.

102. Give It My Output Preferences I need to say were The program will Keep track of where Mined blocks were Sent. That’s were Those Dest1, Dest2 Variables come in. (I picked Dest1) It needs to know where To store the value of A block. (That’s were Valpb comes in). It also will keep track of The value per ton of Rock (That’s were the Valpt variable comes in)

103. Specifying Output Files Name of the Run Output file will Be called Rptopt. What ever You put here

104. Prepare to Run the Procedure Pull down the file Menu Select Run Procedure From menu

105. The Procedure Runs This can take just a little while

106. There is your report extension name and the name you gave the run

107. You Can Check to Make Sure Key Inputs Read in Correctly Mining Cost Pit Slope Density Minimum and Maximum Value Cut-off Value Per ton

108. You Can Check Your Key Metal prices and recoveries

109. Remember that $5000 Spacing I Entered? Here is an Output table Showing how Many blocks In each value Range were Found. (If you get Really strange Answers this Is a place to Look and see If things make Sense)

110. This is a Very Crucial Table It shows Blocks going To the mill, The leach, And the dump And what the Average Grade was (if you have Mined blocks Delivered to Destinations It at least Really ran)

111. Here is the Over-All Money We Made and Spent

112. Oh Yes and the Precious Bottom Line

113. Now We Want to See a Picture of Our Lovely Pit Highlight were You want to put The “model Views”

114. Now Lets Create a New Model View to Display Our Handy-work. Pull down the File Tab and pick New On the pop-out Menu pick Model View

115. Name Your Model View I thought Ultimate Pit was a good name for the view of my ultimate pit

116. Link it to Your Project Control File

117. Pick Your File to Display For me that will be Opti13.dat (that’s where I put my new pit surface)

118. It Gives Me an Opportunity to Initialize Multiple Model Views It useful to have Separate “layers you can have For a staged Mining out of a Pit I’m going to pick yes

119. Set My Model Views Checking Off What I Want to be Able to See I could Give them Special Names if I wanted to

120. The New Views Appear in the Data Manager

121. Now Turn On Ultimate Pit 1 to See How Far the Ultimate Pit Went

122. Can Turn On Initial Topog to Get an Idea of Where Our Cuts Effected.

123. Of Course We Can Use Cut-Offs to Make the View less Gray and Dreary

124. On the Cut-Off Menu Select Intervals We will probably set intervals to bench heights

125. Set My Vertical Range and Bench Height and Then Ok Things

126. Select the Entire Range and Click Properties

127. Pick Set Color By Range

128. Now Hows That For Ultimate Cool!