Pit Optimization with

Minesight Economic Planner

(MSEP)

Pit Optimization - MSEP

Required Files
Minesight Gridded Surface File
Minesight 3-D Block Model File

Pit Optimization - MSEP

Generate Economic Shells
Program MSOPIT
Floating Cone or Lerches-Grossmann
Multiple Metals, Multiple processes
Block by Block Best Destination
Economics
Simple or Complex Slopes
Time Value Discounting
Mine able Shell Geometries

Evaluate Economic Shells

Program MSVALP
Preliminary Scheduling using Shells
Annual Cut-off Grade Analysis

Program MSOPIT
Data Limiting Options

Program MSOPIT
Data Limiting Options Restricted Areas (blue)

Program MSOPIT
Block Value Calculations and Comparisons
Capabilities
5 metals
10 material types
10 destinations

Cost, net price, and recovery detail by metal, by material and by

destination
Block values calculated and compared for each potential
destination
Block classification based on best economic destination
L-G analysis uses block value for best economic destination

Program MSOPIT
Economic Data

Program MSOPIT
Vertical Discounting Method
Number of Benches Mined per Year

Program MSOPIT

Pit Slope Options

Slope by Azimuth

Complex Slopes

Slope sectors applied all the way up

Slope sectors applied with vertical controls

Program MSOPIT
Design Choices
Base: Single shell using economic and slope data entered
Multi-run for set of shells based on price

MultP: Set of nested shells (high $ to low $) with geometry

controls
Mining width requirement
Tonnage requirement

Bottoms: Economically ranks pit bottoms in a multi-bottom

base shell

Program MSOPIT
Audit Option
Block by block value calculations audit info. for one vertical column
of blocks at a user-specified (i, j) location

Output
Shell geometries directly to Gridded_Surface_File for MS viewing
3DBM storage of Block Value, Value/Tonne and Destination Code
(optional)
Report file (ascii) of results

Program MSOPIT
More complex block value calculations are done
with Python Scripts
Partial block royalties
Complex recovery equations by met. Zone
Examples: profit.py

caribv-jim3.py
block calculation validation reports
rptval.two

Program MSOPIT
Mill Copper Recovery (decimal):
(Eqn. 1)
RCUF = {2.161 + 0.975[93.2* ((cu cuox)/cu) + 3.011*cuox + 11.62*mo 0.429*fe 1.026*zone] + 0.8}/100
where variables used are Block Model Item Names (See Appendix 3-1 for description)
Adjustments: If Cu < 0.25 then RCUF maximum = 0.70
If Cu > 0.25 then RCUF maximum = 0.92

Leach Copper Recovery (decimal):

(Eqn. 2)
RCUL = {89.73 * (cuox/cu) + 57.88 (cucn/cu) + 3.13 (cuin/cu)}/100
where variables used are Block Model Item Names (See Appendix 3-1 for description)

Molybedenum Recovery (%):

(Eqn. 3)
MOREC = {-25.268 + (424.86 * mo) (0.88 * fe) + (0.888 * RCUF * 100) 14.5 * ((cu-cuox)/cu) + 8} * 0.82
where variables used are Block Model Item Names (See Appendix 3-1 for description)
Adjustment: If MOREC > 70% then cut back to 70%.

Program MSOPIT
Additional Examples
Complex slope data

Program MSOPIT
Examples
Multi priced shells
Minable width shells
LG with MIK Model

Program MSVALP
Nested Pit Shell Analysis Program

Preliminary scheduling of shells using cut-off

grade optimization
A multiple period/multiple process
optimization

Program MSVALP
Cut-off grade optimization steps
Set up cut-off bins, processing options, economics and capacities
Produce schedule that maximizes total profit
For each period, what is effect on NPV of not processing lowest
grade bin?
Higher grade material moves in to replace it
Recompute schedule and compare NPVs.
If better, determine best place to send low grade and repeat
process for next grade bin
If no improvement from moving higher grades forward then current
grade bin in the process is optimal cut-off grade for the period.

Program MSVALP
Results
Currently, sets of tables tracking the
iterative process
Currently, table data transferred to Excel
for producing charts of results
Automatic charts/graphs of results
currently under development

Pit Evaluation Report

Analysis of Schedule
Tons Processed
Tons Ore Mined
Tons Waste Mined
Tons Total
Profit
NPV 5years
NPV 10 years
NPV total
STP Processed
STP Available
Add Prepro Sp
NPV Advance Sp
NPV - AdvNPV
Mining Utl%
cuplant
coplant
waste

Base
Case
39,629,220.
34,748,216.
203,431,232.
238,179,456.
393,930,784.
51,271,892.
114,545,616.
161,083,040.
4,881,010.
4,881,010.
0.
-1,141,668.
159,941,376.
63.
107.
53.
27.

Total profit
=
Pre-production years
=
Production years
=
Discount rate
=
Pre-production NPV factor =
Constant Profit NPV (CPNPV)=
Base
NPV
=
Best
NPV
=

Const.Cutoff
+ 8.999
39,629,224.
30,427,894.
207,751,536.
238,179,424.
394,154,592.
52,624,468.
129,400,232.
172,518,768.
9,201,327.
9,201,327.
0.
-6,384,643.
166,134,128.
54.
93.
46.
25.
393930784.
2.
21.6792
10.00
0.82645
131151736.
159941376.
164237568.

The pushback geometry improves the schedule by

The cutoff optimization improves the schedule by

21.95 %
2.69 %

Best
Case
39,629,224.
33,611,748.
204,567,696.
238,179,440.
394,045,952.
51,774,636.
121,686,488.
165,639,072.
6,017,474.
6,017,474.
0.
-1,401,509.
164,237,568.
61.
105.
52.
27.

Pit Optimization Analysis

Pit vs. Profit - Chart

450,000,000
400,000,000
350,000,000
300,000,000
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
0

Pit Number

40

37

30

27

23

Total
Profit

19

11

Profit or Total Tons

Pit No. vs. Profit & Total Tons

Pit Optimization Analysis

Pit vs. NPV & Profit - Chart

Pit vs. NPV and Profit

500,000,000

300,000,000

PROFIT

200,000,000

NPV

100,000,000

Pit Number

40

37

30

27

23

19

11

Value ($)

400,000,000

Conclusion Remarks
MS-EP offers two routines, MSOPIT (msepdesign.py) for pit optimizations and MSVALP
(msep-evalute.py) for pit analysis and mining
schedules with cutoff grade optimization.
Auxiliary routines are provided. MSPTSP
(psptsp.dat) adds complex slope codes from
the 3D block model to the special MS-EP
GSF file for complex slope pit optimization.
MSPSUF (pspsuf.dat) performs calculations
on GSF surfaces such as adding two pits
together, restricting one pit by another pit
(subtraction), etc.
MSLOPE (pslope.dat) computes pit slopes
for the final pit to verify slope accuracy.