Cerro Verde Training Week 1: Jan 16 Jan 20, 2006 Minesight Economic Planner (MSEP)

1. Pit Optimization with MSEP The old MineSight series of programs for pit optimization called DIPPER series, are being replaced by the MS-EP series and additional features have been added. The new programs are MSOPIT, MSPTSP, MSPSUF, MSLOPE and MSVALP and include all the current functions of the DIPPER series and some new ones. The changes include: A GSF is now used to store the pit designs and the old S & B files are not longer used. This simplifies the use of the programs. Procedure P60110.dat or MineSight file initialization can be used to create a new file which contains standard items. MSOPIT reads directly from the block model and creates pit designs using both FC (floating cone ) and LG ( Lerchs-Grossmann ) methods based upon block value computed based upon multiple material destinations and multiple metals.. Complex slopes constraints can be created from the block model and saved in file 13. Up to 4 surfaces, each with the slope defined by block can be used. A new method of handling complex slopes improves the speed. ( Floating Rays ) MSPTSP can be used to assign complex slope data to File 13 from the 3DBM directly based upon a block code. New methods to create a series of pits based upon economics or geometry rules for phase design are included in MSOPIT.

Compass menu file Winexe\metlib\ms-ep.mnu has a Group of Procedures for running MSEP programs

1.1

Special Pit Optimization File 13 (Only has to be done 1 time)

Either Procedure P60110.dat (Initialize MS-EP GSF) or MineSight/Compass Project File Editor can be used to initialize the file 13 required by MSEP. Since item names in this file are fixed, only these methods should be used to initialize the file. Click Initialize MS-EP GSF and create file M13A13.OPT for pit optimization training purposes When creating a new file 13 a TOPOG item must be chosen from an existing file 13, so that the initial topography elevations can be retrieved.

You can also create this file using Project File Editor. check the box Special Pit Optimizationfile13.

When creating your file 13

TOPOG stores the original surface elevation at a precision of 1/10 of a meter RCODE is used to limit the pit based upon a code from 1 to 100. Items SLP?? are used to define complex slopes. SLPS1 stores surface elevations of the top slope surface SLPC1 stores the slope codes for surface SLPS1 SLPS2 stores surface elevations for second surface SLPC2 stores the slope codes for surface SLPS2 SLPS3 stores surface elevations for third surface SLPC3 stores the slope codes for surface SLPS3

SLPS4 stores surface elevations for fourth surface SLPC4 stores the slope codes for surface SLPS4 SLPC5 and SLPS5 are available for other uses XELV? are additional surfaces used to store 2d-LG pits and other working surfaces. XELV1 stores a surface defining bottom of ore XELV2 stores potential pit bottoms XELV3 stores 2-D LG pit based upon rows (west east) XELV4 stores 2-D LG pit based upon columns (south north) XELV5 stores sum of pits XELV3 + XELV4 PIT01 to PIT50 are pit surfaces referenced by numbers 1 to 50. PIT00 is the TOPOG surface converted to a new surface with whole blocks. 1.2 Lerch-Grossman with Constant Slope and Reblocking using Procedure MSOPIT-Design Pits (msep-design.py)

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Click File Manage Variables

Click File Run Procedure

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3 ASCII output files are created and PIT01 Gridded Surface File containing economic pit shell in file M13A13.OPT are created. File Rptopt.la: contains information about the value calculations and the LG run. Page6: Economics by MAT code and DEStinations Number of MAT codes MAT code default Number of Destinations MAT DES PCST === ==== ====== 1 1 0.000 1 1 1 1 1 1 1 2 1.114 1 2 1 2 1 2 1 3 0.000 1 3 1 3 1 3 1 4 0.000 1 4 1 4 1 4 2 1 0.000 2 1 2 1 2 1 2 2 1.114 2 2 2 2 2 2 2 3 2.211 2 3 2 3 2 3 2 4 0.000 2 4 2 4 2 4 3 1 0.000 3 1 3 1 3 1 = = = 6 1 4

MCST SG Grade Price Recovery Factor ====== ====== ======= ========= ========= ========== 0.641 2.540 TOTCU 0.0000 0.00 0.0000 MO 0.0000 0.00 0.0000 CRECL 0.0000 0.00 0.0000 CRECR 0.0000 0.00 0.0000 0.758 2.540 TOTCU 0.0000 0.00 0.0000 MO 0.0000 0.00 0.0000 CRECL 0.0000 0.00 0.0000 CRECR 0.7890 83.00 22.0460 0.000 0.000 TOTCU 0.0000 0.00 0.0000 MO 0.0000 0.00 0.0000 CRECL 0.0000 0.00 0.0000 CRECR 0.0000 0.00 0.0000 0.000 0.000 TOTCU 0.0000 0.00 0.0000 MO 0.0000 0.00 0.0000 CRECL 0.0000 0.00 0.0000 CRECR 0.0000 0.00 0.0000 0.641 2.540 TOTCU 0.0000 0.00 0.0000 MO 0.0000 0.00 0.0000 CRECL 0.0000 0.00 0.0000 CRECR 0.0000 0.00 0.0000 0.758 2.540 TOTCU 0.0000 0.00 0.0000 MO 0.0000 0.00 0.0000 CRECL 0.0000 0.00 0.0000 CRECR 0.7890 83.00 22.0460 0.641 2.540 TOTCU 0.0000 0.00 0.0000 MO 0.0000 0.00 0.0000 CRECL 0.7890 87.70 22.0460 CRECR 0.0000 0.00 0.0000 0.000 0.000 TOTCU 0.0000 0.00 0.0000 MO 0.0000 0.00 0.0000 CRECL 0.0000 0.00 0.0000 CRECR 0.0000 0.00 0.0000 0.641 2.650 TOTCU 0.0000 0.00 0.0000 MO 0.0000 0.00 0.0000 CRECL 0.0000 0.00 0.0000 CRECR 0.0000 0.00 0.0000

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Page 10: Summary by Destination Assignment (Entire Block Model)

Summary by Destination Assignment Cutoff on Value/ton = DUMP ROML ROML CRL CRL MILL MILL Process M M O M O M O Blocks 8634092. 415. 221. 4621. 20198. 23787. 109116. 0.0000 OreTons 117861527887. 6368959. 3093261. 71710629. 302360414. 383404301. 1748660662. Value Value/ton -131033042181. -1.11175 -2947418. -0.46278 2389896. 0.77261 -26556383. -0.37033 902387156. 2.98448 -167792973. -0.43764 4227141912. 2.41736 TOTCU 0.00126 0.18899 0.31667 0.20919 0.48953 0.25408 0.46701 MO 0.00004 0.00000 0.00000 0.00000 0.00000 0.00851 0.01454 CRECL 0.00023 0.15352 0.22522 0.16822 0.38828 0.00037 0.00689 CRECR 0.00006 0.10314 0.18817 0.08841 0.23510 0.00020 0.00384

O = Ore above zero value Processed M = Ore Below zero value Processed or waste

Summary by Material and Destination DUMP 1 waste Value Tons TOTCU MO CRECL CRECR Value/ton Value Tons TOTCU MO CRECL CRECR Value/ton Value Tons TOTCU MO CRECL CRECR Value/ton -102620094219. 93899104576. 0.0002 0.0000 0.0002 0.0000 -1.0929 -30408983. 45641057. 0.0781 0.0000 0.0580 0.0299 -0.6663 -46310342. 63277234. 0.0378 0.0000 0.0362 0.0171 -0.7319 ROML -31581. 91440. 0.2695 0.0000 0.1873 0.1082 -0.3454 52581. 2426615. 0.2454 0.0000 0.1736 0.1345 0.0217 -947747. 4399742. 0.1892 0.0000 0.1697 0.1206 -0.2154 CRL 0. 0. 0.0000 0.0000 0.0000 0.0000 0.0000 266016129. 111289286. 0.4483 0.0000 0.3444 0.2085 2.3903 613130861. 246377620. 0.4412 0.0000 0.3578 0.2139 2.4886

2 oxide

3 sec

File workmsopit.tmp: contains details of economic calculations for row, column specified by user (row 129, col 165)
Value Calculation details for IX,IY,IZ = 165 129 22 ---------------------------------------------------

Block TOPO percent Block TOPO fraction SG1 - Specific gravity SG2 - Specific gravity Ore Percent Mined percent Reserve class code Pit Limit block code Met code from block Base Ore mining cost/ton Base Waste cost/ton Add Waste cost from bench Add Ore cost from bench Factor from bench Block Ore percent Block Waste percent Block Volumne

= = = = = = = = = = = = = = = = =

1.000 1.000 2.600 0.000 Used only for waste if Ore % used 0.000 0.000 9 Code specified = 2 0 1 0.641 0.641 0.030 0.030 1.000 1.000 based upon ore % 0.000 6000.

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Block Ore tons Block Waste tons Block Tons Gross Value Cost Value per block Value per ton Cost as waste Ore cost Waste cost Waste destination Grade Item TOTCU = Grade Item MO =

= 15240. = 0. = 15240. = 0. = 10226. = -10226. = -0.671 =-12009.120 = 12009. = 0.000 = 0 0.00000 0.00000 0.00000 0.00000 Dest2 0.00000 0.00000 0.00000 0.00000 Gross Ore 0. 0. 10226. 15240. Cost Waste 0.0000 0. 1.1140 0. 0.0000 0. 0. 0. 0.0000 0.0000 0.0000 0.6410 0.7580 0.0000 2.5400 2.5400 0.0000 ProC MinC sg/tf

Grade Item CRECL = Grade Item CRECR = Cost1 Process 10226. Process 12009. Process 0. Process 0. Cost2 1 2 3 0. 4 0.

Value

-10226. 0. -31547. 0. 0. 0. 0. 0.

-19538. 12009. 0. 15240. 0. 0. 0. 0. 0.

Best Process 1 Value

-10226.04

File M13A13opt.dip: contains a history of what is currently stored in each item in Pit Optimization GSF File 13
1 TOPOG 2 RCODE 3 SLPS1 4 SLPC1 5 SLPS2 6 SLPC2 7 SLPS3 8 SLPC3 9 SLPS4 10 SLPC4 11 SLPS5 12 SLPC5 13 PLIMM 14 PLIMP 15 XELV1 16 XELV2 17 XELV3 18 XELV4 19 XELV5 20 PIT00 21 PIT01 01162006 12:44:00 MSOPIT 196057. TOPO 100 RUNOPT.A RPTOPT.LA 22 PIT02 23 PIT03 24 PIT04

LG M13A15.DAT CALC N/BK

TOTCU

3711.M

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PIT05 PIT06 PIT07 PIT08

1.3

Display Pit01 in Minesight and contour the surface

Polyline Contour Surface

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1.4

Reserves inside Economic Shell

Use Resource Option as Design Strategy in Precedure MSOPIT-Design Pit for now. Later we will use other reserve calculation programs (i.e. PITRES) in Minesight..

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File Manage Variables

File Run Procedure

Summary by Destination Assignment Cutoff on Value/ton = DUMP ROML ROML CRL CRL MILL MILL Process M M O M O M O Blocks 2904957. 318. 200. 3695. 18884. 12331. 87055. 0.0000 OreTons 1051960979. 4849099. 2759361. 57388414. 282112584. 198504461. 1392597802. Value Value/ton -764506146. -0.72674 -2138317. -0.44097 2269416. 0.82244 -21400157. -0.37290 868365347. 3.07808 -80493754. -0.40550 3709203544. 2.66351 TOTCU 0.06922 0.19049 0.31813 0.20763 0.49752 0.25265 0.48148 MO 0.00178 0.00000 0.00000 0.00000 0.00000 0.00832 0.01532 CRECL 0.01714 0.15428 0.22745 0.16852 0.39459 0.00029 0.00661 CRECR 0.00466 0.10478 0.19174 0.08743 0.23928 0.00015 0.00372

O = Ore above zero value Processed M = Ore Below zero value Processed or waste Summary by Material and Destination DUMP 1 waste Value Tons TOTCU MO CRECL CRECR Value/ton Value Tons TOTCU -321259855. 479197419. 0.0238 0.0000 0.0285 0.0052 -0.6704 -10915181. 16786556. 0.1056 ROML -31581. 91440. 0.2695 0.0000 0.1873 0.1082 -0.3454 377195. 1908455. 0.2578 CRL 0. 0. 0.0000 0.0000 0.0000 0.0000 0.0000 240258830. 87435842. 0.4789

2 oxide

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MO CRECL CRECR Value/ton 3 sec Value Tons TOTCU MO CRECL CRECR Value/ton

0.0000 0.0796 0.0392 -0.6502 -25323169. 34645042. 0.0623 0.0000 0.0596 0.0280 -0.7309

0.0000 0.1811 0.1470 0.1976 -532316. 3525242. 0.1943 0.0000 0.1735 0.1251 -0.1510

0.0000 0.3674 0.2240 2.7478 609668860. 237028419. 0.4486 0.0000 0.3633 0.2174 2.5721

1.5

Limit Pit Optimization Shells to Cerro Verde and Santa Rosa area and Store Destination, Value/Block and Value/tonne in File 15.

it is necessary to change items NVAL and $$TON to accept negative values:

item NVAL $$TON

minimum -50000 -10

maximum 1000000 80

precision 1 0.01

Model Cloning is used to copy all the contents of an existing block model into a new block model file with the above changes. In Project File Editor click File Clone

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File Save As M13A15.OPT Now run procedure MSOPIT-Design Pits with following changes

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Save as Pit02 Run Procedure

LG for Santa Rosa and Cerro Verde Areas only

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Result

1.6 Pitres

Reserves in Pit02 using PITRES

Leave Panel 1 Blank

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1.7

LG with Complex Slopes

Run Procedure Add Complex Slope Codes to assign values to File 13 items SLPS1 4 and SLPC1 4 from the File 15 block by block slope code item SECT

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Run Procedure MSOPIT-Design Pits and specify Complex slopes. Store result in PIT03

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1.8

Calculation of Mill Recovered Copper Grades

Item CUREC contains block by block values for mill recovery in % for Primary sulfide blocks. We should use this more detailed information in the Pit Optimization Analysis. To do this we must use a recovered copper grade for the mill in the analysis. Recovered copper grade value is required for all secondary, transitional and primary ore blocks. Run Procedure User-Calcs (model) to calculate mill recovered grade for primary blocks

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Check results by running Procedure Statistics (Model)

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CUREC values do not exist for secondary and transitional blocks. Therefore we will use an average mill recovery of 88% for secondary sulfide blocks and 84.84% for transitional blocks. This is done by running User Calcs (Model) procedure (P61201.Dat) twice in a Multi-run.

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1.9

Calculation of Mill Recovered Moly Grades

Repeat the User Calc Procedure of Step 1.8 to calculate recovered Moly Grades for primary ore blocks. Store in item MOPC. There are no Moly grades in the model for Secondary and Transitional blocks.

1.10

Make an LG shell using the recovered grades for copper and moly. Use Complex Slopes with no re-blocking. Use Vertical Discounting Store as PIT05

MSOPIT-design pits Procedure Panels with Changes:

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1.11

Display PIT05 and contour with 30m contours

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1.12

Use Pitres to calculate reserves for Pit05 (See Panels for section 1.6 for guidance) Specify a Zone Input File on second panel to provide 5 character names for Proven and Probable reserves Zone.dat

PROVN 1 2.6 100 100 0 PROBL 2 2.6 100 100 0 POSBL 3 2.6 100 100 0

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