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University of Alberta

MINE 325 Mine Planning and Design

MINE 325
Mine Planning
Lec15
L
15 Pit Limits
Li it I
Manual Method

Lec15-2

Ultimate or Final Pit Limits (1/5)


Size and shape of mineable reserves and

associated waste materials to be excavated


based on:
Technical , Economical , Safety constraints
It is used in:
The economic potential of a mineral deposit.
Financing and Taxation.
Short and long term mine plans.
The boundaries outside which mine plant and
structures should be located.

Lec16_1

University of Alberta
MINE 325 Mine Planning and Design

Lec15-3

Pit Limits (2/5)

Lec15-4

Pit Limits (3/5)

Lec16_2

University of Alberta
MINE 325 Mine Planning and Design

Lec15-5

Pit Limits (4/5)

Lec15-6

Final Pit Limit method (5/5)


Manual method
Computer
C
t methods
th d (2D,
(2D 3D)

Manual methods are based on sections

Involve Stripping Ratios (SR)

Three stripping ratios which can be defined:

Overall Stripping Ratio


Incremental (Instantaneous) Stripping Ratio
Break-even or maximum Stripping Ratio

Lec16_3

University of Alberta
MINE 325 Mine Planning and Design

MINE 325
Mine Planning

Stripping Ratio

Lec15-8

Stripping Ratios (1/6)


Overall stripping ratio is the ratio of the total

tonnage of waste divided by the total tonnage of


ore contained in the final pit (SRo)

Incremental stripping ratio (or instantaneous

stripping ratio)is the ratio of waste tonnage to


ore tonnage as a result of expanding the pit by a
unit volume (ISR)

Break-even stripping ratio is the ratio of waste

tonnage to ore tonnage where the cost of the


waste removal exactly equals the value of the
mineral (BESR or SRmax)

Lec16_4

University of Alberta
MINE 325 Mine Planning and Design

Lec15-9

Stripping Ratios (2/6)


SRo and ISR are physical ratios
BESR is an economic ratio
BESR will change depending on

grades, costs and revenues

Lec15-10

Stripping ratio (3/6)


The volume of the contained ore is expressed by

V r 2h
where
r is the ore radius
h is the ore thickness.

Lec16_5

University of Alberta
MINE 325 Mine Planning and Design

Lec15-11

Stripping ratio (4/6)


Chapter 4 pages 45 to 49

h r.tan
H c h h h r tan

Hc
h

r
tan tan

Truncated tip

1
Vtip r 2 h
3
Fully circumscribed cone

1
V R2 Hc
3

Mined volume (ore + waste)

1
1
Vm V Vtip R 2 H c r 2 h
3
3

Lec15-12

Stripping ratio (5/6)


Chapter 4 pages 45 to 49
Mined volume (ore + waste)

1
1
Vm V Vtip R 2 H c r 2 h
3
3
Volume of waste

Vw Vm r 2 h
SR

Waste(volume)
Ore(volume)

SR (overall )

Vw Vm r 2 h

Vo
r 2h

Lec16_6

University of Alberta
MINE 325 Mine Planning and Design

Lec15-13

Stripping ratio (6/6)


Chapter 4 pages 45 to 49

MINE 325
Mine Planning
Final
a Pitt Limits
ts
Manual Method

Lec16_7

University of Alberta
MINE 325 Mine Planning and Design

Lec15-15

Manual Method
Basic Concepts - Sectional Calculation
Net Value = Gross Value Total Cost

waste

$NV = $GV - $TC


0.6% Cu
1 ton of Ore
(0.6% Cu)

ISR = 2:1
BESR = 3.2:1

the density of ore and waste is the


same, the ISR is the ratio of the
length in ore to the length in waste.

3.2 tons of
waste
$NV = Cost of Stripping

Lec15-16

Manual Method
Basic Concepts - Sectional Calculation
waste
0.6% Cu

ISR = 2:1

BESR = 3.2:1

Actual Stripping
Ratios

Allowable
Stripping Ratios

Pit Limit is adjusted until:


ISR = BESR

Lec16_8

University of Alberta
MINE 325 Mine Planning and Design

Lec15-17

Manual Method
Basic Concepts - Both Walls in Waste

Usually the width of cross


section is assigned to each side
(
(area
off influence
i fl
off section).
ti )
Shape is moved vertically and
horizontally on section until both
sides fit the SR-Grade Curve

Lec15-18

Manual Method
Sectional Calculation -Variable Grades
Each block or polygon has a
grade associated with itit.

Multiple layers
of overburden
type material
can complicate
the sectional
calculation

Calculation of average grade in the ore is


a length weighted average grade.
Each side is done independently.

Lec16_9

University of Alberta
MINE 325 Mine Planning and Design

Lec15-19

Hand Method
The Basic Concept - Example

Ore Net Value


$NV = $GV - $TC = $1.90 / unit volume

Cost of stripping waste is $1/unit volume

Lec15-20

Hand Method the Basic Concept


Example- Strip 1
The volumes are:
Strip 1:

Vw1 7.5u 3
Vo1 5.0u 3

The instantaneous stripping ratio (ISR) is defined as:

ISR1

ISR1 1.5

Vwl
Vol

Assuming that the net value from selling one unit volume of ore (that money
remaining after all expenses have been paid) is $1.90
cost for mining and disposing of the waste is $1/unit volume, the net value
for strip I is

NV1 5.0 x $1.90 - 7.5 x $1 = $2.00

Lec16_10

University of Alberta
MINE 325 Mine Planning and Design

Lec15-21

Hand Method the Basic Concept


Example- Strip 2
Strip 2:

Vw 2 = 8.4u 3
Vo 2 = 5.0u 3
ISR2 = 1.68
NV2 = 5.0 x $1.90 - 8.4 x $1 = $1..10

Lec15-22

Hand Method the Basic Concept


Example- Strip 3
Strip 3:

Vw3 = 9.45u 3
Vo 3 = 5.0u 3
ISR3 = 1.89

For strip 3, the net value is just about


zero This pit position is termed
zero.
'breakeven' since the costs involved in
mining the strip just equal the revenues.

NV3 = 5.0 x $1.90 - 9.45 x $1 = $0.05 0

It is the location of the final pit wall.

Lec16_11

University of Alberta
MINE 325 Mine Planning and Design

Lec15-23

Hand Method the Basic Concept


Example- Strip 4
Strip 4:

Vw 4 = 10.5u 3
Vo 4 = 5.0u 3
ISR4 = 2.1
NV4 = 5.0 x $1.90 - 10.5 x $1 = -$1.0

Lec15-24

Hand Method
Example final pit
ISR = BESR

Lec16_12

University of Alberta
MINE 325 Mine Planning and Design

Lec15-25

Hand Method the Basic Concept


The overall stripping ratio (OSR) for this section is calculated as

OSR

waste
t area A

ore area
B

OSR = 0.8

Lec15-26

Hand Method the Basic Concept


how to find the final pit outline?

Lec16_13

University of Alberta
MINE 325 Mine Planning and Design

Lec15-27

Hand Method the Basic Concept


Basic steps in determining pit limits
the
1.
2.
3.
4.

following basic steps involved in


determining pit limits remain the same:
A slice is selected.
The contained value is compared with the
costs.
If the net value is positive, the pit can be
expanded.
d d If negative,
ti
th pit
the
it contracts.
t t
The final pit position is where the net value
of the slice is zero.

ISR = BESR

Lec15-28

MINE 325
Mine Planning
Manuall Method
M
M th d
Net Value Calculation

Lec16_14

University of Alberta
MINE 325 Mine Planning and Design

Lec15-29

Cutoff Grades
The term cutoff grades refers to grades

ffor which
hi h th
the destination
d ti ti off materials
t i l
changes
Cutoff grade is the grade at which the
mineral resource can no longer be
processed at a profit.
The break even cutoff grade is defined
as the grade for which the net value is
zero

Lec15-30

Manual Method
Example Copper Deposit

Find the Min and


Max grade in the
section

Lec16_15

University of Alberta
MINE 325 Mine Planning and Design

Lec15-31

Net Value Calculation


to construct a net value grade curve
1. Compute the amount of saleable product
2.
3.
4.
5.
6.

copper (lb/s
(lb/s.tt of ore)
Calculate the gross value (GV) for the ore ( $/ s.t)
Calculate the associated costs (TC) ($/s.t)
Calculate the net value per ton of ore
Net Value = GV TC
Calculate the net value per ton of ore for another
ore grade
Construct a net value grade curve

Lec15-32

Net Value Calculation


to construct a net value grade curve

7. determine the breakeven cutoff grade


8. Developing a stripping ratio grade

curve
9. Presenting the final curves
10. Finding the location of pit limits

Lec16_16

University of Alberta
MINE 325 Mine Planning and Design

Lec15-33

Manual Method
Creating a Net Value to Grade Curve
Net value must include all recoveries/losses

due to processing
Consider the following example:
Mill recovery = 80%
Mill concentrate grade = 20%
Smelting loss = 10 lbs/st of conc.
Refining loss = 5 lbs/st of copper
Calculations for 0.55% Cu
Mining cost $1 / ton

Lec15-34

Manual method
Creating a Net Value to Grade Curve
It will be assumed that

Pit slopes:
l

Left hand side = 50 degrees


Right hand side = 40 degrees

Minimum width of the pit bottom = 100 ft;


Material densities:

Ore = 165 lb/cu-ft


Waste rock = 165 lb/cu-ft
Overburden =165 lb/cu-ft;

Lec16_17

University of Alberta
MINE 325 Mine Planning and Design

Lec15-35

Manual Method
Net Value to Grade Curve
loss = 10 lbs/st
of concen

Mill recovery = 80%

Mine

Mill
Ore

weight

1 st = 2000lb

Concentrator

2000lb

0.55%

20%

lbs cu

11.0

8.8

45.45 tons
233.1 tons

Refinery

Smelter

concentrate

grade

loss = 5 lbs/st of
Blister copper

blister copper

copper

2000lb
8.58

8.56

Copper price $1 / lb
By product $1.77 / st ore
Mining cost $1 / ton

Lec15-36

Manual Method Creating a


Net Value to Grade Curve
Mill recovered Quantity of Metal = Contained copper * recovery

0.55% Cu 11 lb/st * recoveryy = 8.8 lb/st


Mill produces 20% concentrate
Conc. Ratio = 400 lb/st conc / 8.8 lb ore = 45.45 tons of ore
Means that ~45 tons of ore produces 1 ton conc.
Smelter loses 10 lb/st conc = 0.22 lb/ore
Smelter Recovered copper = 8.8 0.22 = 8.58 lb
Refinery recovery = 2000 lb copper/ 8.58 lb copper/st ore
= 233.1 tons ore
Refining losses are 5lb/ton copper therefore loss of 0.02 lb of
copper
Refinery Recovered copper = 8.56 lb Cu / ton of ore

Lec16_18

University of Alberta
MINE 325 Mine Planning and Design

Lec15-37

Manual method Creating a Net


Value to Grade Curve
Copper
pp is $1.00 / lb other recovered
minerals (Au, Ag etc) total $1.77/ton
$
of
ore
Revenue =
8.56lb * $1.00 + $1.77 = $10.33/ ton

Lec15-38

Manual method Creating a Net


Value to Grade Curve
Costs:
Production costs:
Mining
$1.00/ton,
Milling
$2.80/ton,
Administration (15% of m&m) $0.57
Total production costs
$4.37
Amortization and depreciation costs / ton ore
20% of production costs per ton ore = $0.87
Treatment, refining, selling costs =
$2.59

Lec16_19

University of Alberta
MINE 325 Mine Planning and Design

Lec15-39

Manual method Creating a Net


Value to Grade Curve
Total costs of $7.83/ ton ore
For 0.55% grade copper,
Net Value = Revenue Costs =
$10.33 - $7.83 = $2.50

Lec15-40

Net Value Curve


5.00
4 00
4.00
y = 1556.1x - 6.064

Net Value ($ / ton of ore)

3.00
2.00
1.00
0.00
0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

-1.00
-2.00
-3.00
-4.00
Cu Grade

Lec16_20

University of Alberta
MINE 325 Mine Planning and Design

Lec15-41

Net Value Curve


Based on total costs of
$7.83/ton of ore

5.00

4.00

Net Selling Price of $1.00/lb


for the copper
Value

0.55

$2.50

0.37

-$0.31

Net Value ($ / ton of ore)

%CU

y = 1556.1x - 6.064
3.00

2.00

Break Even
Grade

1.00

0.00
0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

-1.00

Knowing
g the cost of waste
removal, the curve can be
converted to a stripping ratio
grade curve

-2.00

-3.00

-4.00
Cu Grade

Lec15-42

Net Value Curve


5.00

Cost of stripping is $1.00/ton


$1 00/ton

BESR =
Net Value/ Stripping cost

y = 1556.1x - 6.064

Net Value ($ / ton of ore)

Stripping ratios added to the


curve.

4.00

3.00

3:1

2.00

2:1

1.00

1:1
0.5:1

0.00
0.00%

-1.00

0.20%

0.40%

0.60%

0.80%

1.00%

Minimum Value

-2.00

-3.00

-4.00
Cu Grade

Minimum value is the cost of moving a ton of waste

Lec16_21

University of Alberta
MINE 325 Mine Planning and Design

Lec15-43

Sectional Calculation
Variable Grades-Example

Lec15-44

Manual method
Stripping ratios and average grades are

evaluated usually by direct measurement of


the lengths of the slope in ore and waste
A final pit slope angle is chosen based on
geotechnical considerations

Lec16_22

University of Alberta
MINE 325 Mine Planning and Design

Lec15-45

Sectional Calculation - G1
Variable Grades-Example Contd

Lec15-46

Sectional Calculation G1
Variable Grades-Example

ISR

130 296
SR ( actual )
1.79 :1;
238

BESR

SR ( allowable) 6.2 :1;

Conclusion: expand pit

Lec16_23

University of Alberta
MINE 325 Mine Planning and Design

Lec15-47

Sectional Calculation G1
Variable Grades-Example

Lec15-48

Sectional Calculation G2
Variable Grades-Example Contd

Lec16_24

University of Alberta
MINE 325 Mine Planning and Design

Lec15-49

Sectional Calculation Line G2


Variable Grades-Example

SR (actual )

130 385
3.3 :1
156

SR ( allowable) 5.6 :1

Conclusion: expand pit

Lec15-50

Sectional Calculation Line G3


Variable Grades-Example Contd

Lec16_25

University of Alberta
MINE 325 Mine Planning and Design

Lec15-51

Sectional Calculation Line G3


Variable Grades-Example

SR (actual )

130 443
5.51:1
104

SR (allowable) 3.9 :1

Conclusion: contract pit

Lec15-52

Sectional Calculation - Line G4


Variable Grades-Example Contd

Lec16_26

University of Alberta
MINE 325 Mine Planning and Design

Lec15-53

Sectional Calculation Line G4


Variable Grades-Example

SR ( actual )

130 435
5.43 :1
104

SR (allowable) 5.4 :1

Conclusion: Final Pit

Lec15-54

Sectional Calculations
Pit is outlined on
each section.
Number of sections
required will depend
on the complexity and
shape of the deposit.
Typically 8-20
sections are used.

Lec16_27

University of Alberta
MINE 325 Mine Planning and Design

Lec15-55

Transfer to Plans
Pit top and bottom are
transferred to a p
plan view and
the surface intersects
connected.
The ends must be done
separately. At the pit ends a
stripping wedge is calculated
to complete the design.

Sections

Lec15-56

Radial Section at Pit End

Lec16_28

University of Alberta
MINE 325 Mine Planning and Design

Lec15-57

Radial Section at Pit End

Parallel section

radial section

Lec15-58

Radial Section at Pit End

Lec16_29

University of Alberta
MINE 325 Mine Planning and Design

Lec15-59

Measured SR (for Radial Section)


b

a = length in ore
b = length in waste
=slope angle

a*cos

Plan View
B

b*cos
A
includes angle
of the wedge

Lec15-60

True SR (for Radial Section)


The angles cancel out in the equation
Area A = (a*cos)
(a*cos)2 * / 2
2
Area B = [((a+b)*cos )2 - (a*cos )2] * / 2
SR (true) = B/A

=[(a+b)2-a2] / a2 = (1 + b/a)2 1
SR (true) = [1 + SR(measured)]

-1

Lec16_30

University of Alberta
MINE 325 Mine Planning and Design

Lec15-61

Pit Ends
Create a graph of Measured vs True SR
Measure
M
the
th SR on th
the section
ti
Find the true SR from the graph
Use the SR-Grade curve to adjust the

position of the line

Lec15-62

True vs Measured SR Curve


True vs Measured

Stripping Ratio
Measured

True

16 00
16.00

0.00

0.00

0.25

0.56

12.00

0.50

1.25

10.00

0.75

2.06

1.00

3.00

6.00

1.25

4.06

4.00

1.50

5.25

2.00

8.00

2.50

11.25

3.00

15.00

True SR

14.00

8.00

2.00
0.00
0.00

1.00

2.00

3.00

4.00

Measured SR

Lec16_31

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