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5 Implementing a Strategic Plan

Michael O’ConnorSenior Mining Solution Consultant

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Strategic Mine Planning – Whittle SIMO outputs

Strategic v Tactical

Understanding deviations

Measuring Success

Case Study – SIMO outputs, MineSched Inputs

Agenda

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Strategic Mine Planning – Whittle SIMO outputs

Strategic v Tactical

Understanding deviations

Measuring Success

Case Study – SIMO outputs, MineSched Inputs

Agenda

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IntroductionMichael (Cy) O’Connor – Senior Mining ConsultantMining since 19873rd generation minerDesign UG/SurfacePlanning UG/SurfaceEngineering/Planning/Software consultant

MineSched since 2005 Dassault Systèmes GEOVIA +10years

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015 More than just pit shells

Whittle SIMO outputs

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015 Reports

SIMO outputs

McLaughlin_Strat_to_Tact\Whittle\3_schedule_output\FXPE__63_SimoReport_Yearly_Full.xlsb

McLaughlin_Strat_to_Tact\Whittle\3_schedule_output\SIMO Report Yearly Short.xlsx

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Strategic

Also commonly referred to as Linear optimization A heuristic technique, is any approach to problem solving, learning, or discovery that employs a practical method not guaranteed to be optimal or perfect, but sufficient for the immediate goals.

Tactical

Mixed Linear programming - SIMO Heuristic programming

Linear programming is a method to achieve the best outcome (such as maximum profit or lowest cost) in a mathematical model whose requirements are represented by linear relationships.

Linear programming is the process of taking various linear inequalities relating to some situation, and finding the "best" value obtainable under those conditions.

pertaining to or based on experimentation, evaluation, or trial-and-error methods

learn, discover, or solve problems on his or her own, as by experimenting, evaluating possible answers or solutions, or by trial and error

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TacticalMay not find a solution at allMore time consuming to find solution, trial and error Holes in mill feed (VRA, SR, mining sequence) Not enough ROM or stockpile capacity First solution found so may be much lower value result Time consuming trial and error approach for defining strategies such as

stockpiles, sequence, direction, blend and COGWhen an input changes, very time consuming and no clear path to find next

solution

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Whittle Outputs

Number of stockpiles

outputs

inputsMaximum capacity of stockpiles

Bench Drop Bench Drop Bench Drop

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Strategic vs Tactical – TerminologyStrategic Mine Planner Tactical Mine Planner

Cut-off grade strategy, grade ranges for stockpiles Material class

Cutback or Pit Order, Mining Direction Locations, Precedences or Spatial Relationships

Block sequence Production Rates, Material Movement

Stockpile strategy Material Movement, ParametersWhen and how much to re-handle from stockpiles to Plant Material Movement, Target Parameters

Limiting Vertical Rate of Advance (VRA), Bench drop Parameters

Minimum mining widths Locations & Precedence parameters,

Mining limit Production Rates

Blending Material movement, Targets

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5 Understanding Deviations

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015 Grouping of the blocks with similar grade into one bin

Strategic Schedule units: Panels and Bins

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015 Results – Period 8

Whittle v MineSched

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Pit Design

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Pit Design

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Measuring Success

Compliance to plan

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Discussion point - case study results

0 1 2 3 4 5 6 7 8 9 10 11 12 13

nsr_

rec (

$/t)

Year

Order of magnitude test

StrategicTactical

Using Whittle shells & following the optimized sequence in MineSched

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Discussion point - case study results

Using practical pit designs & targeting in MineSched

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

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Targeting Test

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Discussion point - case study results

Using practical pit designs & following the optimized sequence in MineSched

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14

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NSR Strategic to Tactical Comparison

StrategicTactical

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Qualities – Import Mining Costs

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User calculations – Used to calculate and report value

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015 Comparison with Whittle results – Measure your compliance to plan by value

Custom Report

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Case Study

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Au, g/t

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72.8 3

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10

15

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25

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0.5 – 1      1 ‐ 1.5       1.5 – 2        > 2 Au grade, g/t

Tonn

age M

t

Grade/Tonnage Distribution

Case Study Example – SIMO

40Mt above 0.5g/t @1g/t average grade

Block size 7.5 x 7.5 x 62.14 Mln blocksAu grade only

http://mansci-web.uai.cl/minelib/

Mining cost $1.32/tProcessing cost $19/tProcessing Recovery 90%Au price $1300/ozDisc. Rate 15%

Slope angle 45 degreesMill capacity 3.3 Mt/yearVertical Advance Rate 8 benchesStockpile Rehandling Cost $0.5/t

Study Inputs:

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Pit Optimisation and Pushback selection

Or import Pit Design stages to Whittle

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Material ClassesMaterial definition & cut-off grade implementation, grade ranges for stockpiles

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Production RatesBlock sequence, cut back or pit order

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LocationsProcess Rates

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ParametersMaximum bench drop, minimum mining width, practical constraints

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Material MovementBlending, re-handle stockpile to plant

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Results

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Mined SequenceWhittle

MineSched

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Input MillWhittle

MineSched

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Results The previous 2 slides show the Mined Sequence and Mill Input are correct,

however the grade profile needs more work. This is directly related to:Mining directionBlock sizeLAGSProduction parametersRe-handle

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Final thought

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