Quantifying the cost of dilution in
underground mines
R.C. Pakalnis, R. Poulin and J. Hadjigeorgiou
Abstract -Appro.rimately 51 % of all o1.p production irr
Cunadian undergl-ound metul mines is derived dir-ec,tlyfi-om
open-stope operations. Thismethod I-equiresthut lus,qe e.rcu-
13utionsremain nprn ur~rilthe ore i~extra(.ted with a mininnlm
ac~ceprahlelevel of dilution. A survey of 14ndet.ground mines
in 1988 r.~pnr.redrhur a major- factor it1 their- c.1o~111.e was
uncot~trolledclilution.It hus h e m reported thut 40% ofopen-
stope operutions M ~ E I X Jexperienc.in,q dilrttiorz in r.rc.cj.ss of'
20%. This level ofdilution has signific.ant inlldic~~tions on the
economic, \,iahility of'u project, espec~iully~,herlone cotlsid-
cJr-sthut u rate ( f r e t u r n on a po.siti~~c~
pr.c?j~c,tis generally
between 10% utld 20%. This paper r.eporr.s otl the ~ ~ a r i o u s
definitions od'dil~ition,on the nzerhods cdsropc tlesign rhat are
111-esently~csc~cl
btith the ohjec,tit'e of t-cduc,irrgdilution u t ~ don
a rr~c.entlyu~~ailahle sur-vey rethniyur rhat c~nuh1e.rdilrrtior~to
he quanrifi~d.
Introduction
The importance of dilution to the economics of a mining
operation is well recognized and is retlected by the fact that
dilution records are kept by most operations (Mining Source
Book, 1995).Asnoted by Tintor (1 988),excessivedilution is
reported as a major factor in the closure of niany Canadian
underground mines.
Ore losses and dilution occur during all stages of mining.
and, while several models can investigate the influcnce of
dilution, it is the quantification of dilution that poses the
greatest challenge. Furthermore, it is now recognized that
what is considered an acceptable level of dilution is a func-
tion of the ore grade, the grade of thc dilution material, costs
and metal prices. Consequently, the degree of acceptable
dilution differs from site to site.
Elbrond (1994) proposed a conceptual diagram in which
the presence of ore losses and dilution during successive
phases of niining are traced. Although this is ii simplified
approach. it still serves to recognize the complexity of the
problem. beginning with the need to define precisely the
matcrial quantity and quality throughout all stages of the
mining process. This includes delineating the deposit, defin-
ing the cutoff grade, selecting the optimum mining method/
R.C. Pakalnis and R. Poulin are professors with the Department of
Mining and Minerals Processing Engineering, the University of
British Columbia, Vancouver, Canada. J. Hadjigeorgiou is a profes-
sor with the Department of Mining and Metallurgy, Laval University,
Quebec City, Canada. SME Preprint 95-260, SME Annual Meeting,
March 6-9, 1995, Denver, CO. Manuscript Feb., 1995. Discussion of
this peer-reviewed and approved paper is invited and must be
submitted, in duplicate, prior to March 31, 1996.
1136 DECEMBER 1995
planlproduction parameters and selecting the method of
processing the ore. This paper addresses the problems asso-
ciated with developing and calibrating dilution models and
the associated econoniic impacts of these problems. It further
attempts to relate mine-design practice with predicted and
recorded dilution.
Dilution model
Ore is generally defined through a geological model that
synthesizes the known characteristics of the deposit. To
nieasure dilution, one must assume that the ore is delineated
in quantity and quality and that the rock volume can effec-
tively be measured with a degree of confidence. While this
model will never coincide completely with the actual deposit
(Elbrond, 1994), it can be refined as information concerning
the deposit accumulates.
There is an even greater uncertainty concerning the grade
of the waste material (i.e., material below the cutoff grade).
Understandably, limited efforts are devoted to the evaluation
of the grade of the waste. However. dilution is more often
inferred than physically measured. Because the exact grade
of all of the components of the wastelore mix is not well
known, the dilution estiniate can carry a sizable error.
In measuring the volume of wall slough (external dilu-
tion), the difference between the design tonnage and the
tonnage actually achieved is a better measure of mining
success, even if it does not resolve all of the problems.
Because the metal content of the external dilution is not well
known, uncertainty remains in terms of cost. This external
dilution is a source of cost as it is mucked. transported.
crushed, ground, processed and stored as tailings. Because it
is subgrade material, it is not a source of revenue sufficient to
cover all costs encountered. The rock, if void of economic
value, as is generally the case with vein mining, will further
exacerbate the situation. This would be a direct cost attrib-
uted to dilution.
Lane (1988) showed that mining operations have l~miting
factors, e.g., mining capacity and milling capacity, that
influence the overall economics. These are instrumental in
defining optimum operating practices. Mining of waste ma-
terial through dilution results in an opportunity cost,
where capacity is lost because of the displacement of ore by
waste within the overall mine/rnill circuit. This displacement
results in acost, expressed by the cash tlow, being distributed
over a longer time period. resulting in an overall decrease in
the net present value. The size of the cost is directly depen-
dent upon the discount rate used; the higher the rate, the
higher the cost of postponing the cash intlow. The examplc
MINING ENGINEERING
 Table 1 - Definition of dilution* (Pakalnis, 1986)
Eq. (1): Dilution = (Tons waste mined)/(Tons ore mined)
Eq. (2): Dilution = (Tons waste mined)/(Tons ore mined + tons
waste mined)
Eq. (3): Dilution = (Undiluted in-situ grade as derived from
drill holes)/(Sample assay grade at drawpoint)
Eq. (4): Dilution = (Undiluted in-situ grade reserves)/(Mill
head grades obtained from same tonnage)
Eq. (5): Dilution = (Tonnage mucked - tonnage blasted)/
(Tonnage blasted)
Eq. (6): Dilution = Difference between backfill tonnage
actually placed and theoretically required to fill void
Eq. (7): Dilution = Dilution visually observed and assessed
Eq. (8): Dilution = ("xuamount of meters of footwall slough +
"y"amount of hanging wall slough)/(ore width)
Eq. (9): Dilution = (Tons drawn from stopes)/(Calculated
reserve tonnage) over the last ten years
1 * Dilution is generally expressed as a percentage.
given by Bawden et a]. (1989) shows a mine, operating at a
constant capacity, that produces the same amount of metal
but with an increasing life as dilution increases. Dilution in
that example has zero grade and extra mining and milling
costs associated with mining of the dilution are lumped with
the opportunity cost. Another scenario would see cutoff
grade increase in reaction to dilution to maintain mill-head
feed grade. The quantity of total metal produced would be
reduced, and the opportunity cost would then apply to the
unmined portion of the deposit.
Defining dilution
A dilution value is routinely recorded by most mine
operators (Mining Source Book, 1995). However, it is not
always determined in an identical fashion. While it is ac-
cepted that the resulting dilution is influenced by the mine
design, there exists several methods of defining and record-
ing dilution. Table 1 summarizes the definitions that are now
used to calculate dilution. These definitions (Eqs. ( I ) through
(9))were derived from a survey of 22 mine operators through-
out Canada (Pakalnis, 1986).The term "waste" in Table 1 and
Fig. 1 refers to the external dilution, or unplanned dilution,
that is mined, whereas the term "ore" refers to that which is
expected to be mined, i.e., drilled and blasted.
A review of Canadian miningpractice (Scobleet al., 1994)
has shown that the two most widely used definitions are Eq.
(1 ) and Eq (2) in Table 1. Figure 1 shows the sensitivity of the
above two definitions to the amount of wall slough, calcu-
lated as afunction of the ore width. An ore body whose width
is "n" meters (from footwall to hanging wall) and has "n"
meters of slough (i.e, the depth of slough is equal to the width
of the ore body) would result in adilution of 100% according
to Eq (I ) and 50% according to Eq. (2). In fact, the maximum
dilution that one can realize by Eq. (2) is loo%, because it is
insensitive to wall slough. The relative difference is less at
lower dilution. It is for this reason that Eq. (1) was selected
and recommended as a standard measure of dilution.
Mine design
Modem mine design employs analytical, numerical and
empirical methods. In a comprehensive survey of ground
control practices in Ontario mines (Barclay and Kat, 1989).
MINING ENGINEERING
WASTEIORE, WASTU(0RE + WASTE) I
250%
z
1
I 0 0.5 1 1.5 2
DEPTH OF SLOUGH (TlMES ORE WIDTH F M I TO HNV)
2.5
Fig. 1 (a) - Dilution vs. depth of slough.
DILUTION = TONNES WASTC
TONNCS ORE
1 /
ORE/RFSERVFS
PUNNED
DRILLED AND B U S I E D
WASTE/
NOT PLANNE
NOT ORILL.ED/B
BLOCK O r ORE
WIDTH OF ORE
HANGING WALL(H/W)
Fig. 1 (b) - Schematic definition of dilution.
it was shown that empirical methods are the most popular
design tools. Empirical tools are based on local experience or
on some geomechanical-based classification system. Such
systems should promote economical, yet safe, designs and
must correctly be calibrated against case studies that are
representative of their future applications.
The level of dilution budgeted for a particular method of
extraction is critical to the overall economics of a project,
considering that dilution values of between 10% and 30% are
generally employed and that the rate of return for project
economics are between 10% and 20%. Thevalues for dilution
that are employed are largely based upon the type of method,
stope width and/or experience of the person conducting the
feasibility study (O'Hara, 1980). Methods have been avail-
able that relate the critical factors of stope design to the
estimated dilution. These methods are largely based on relat-
ing the critical parameters to the observed stope behavior.
Nonentry mining methods, such as open stoping, are
gaining increased prominence in Canadian mines. Accept-
able dilution is highly dependent upon grade. A higher-grade
stope can still be economical. However, a lower-grade stope
with the same dilution will no longer be feasible. Nonentry
methods of mining can accept a certain degree of wall slough
without endangering mine personnel.
Of the empirical methods of open-stope design, the fol-
lowing two have received increased prominence in the last 15
years: the "dilution approach" and the "modified stability
graph" method. While both methods rely heavily on a rock
mass classification, they differ in that the stability graph
relies on data collected from several mine operations, and the
DECEMBER 1995 1137
 M O D I F I E D STABILII'Y GRAPE1 DILUTION APPROACH DESIGN EQUATIONS

ISOlATED STOPES(61 OBS)

ECHELON STOPES(44 OBS)

RIB STOPES(Z8 OBS)

OIL.(%) - Slope 01lulion(%1,le. 10%. DIL(%) - I 0

R M R - CSlR flock Mass RalinalX1, te. 60%. R M R - 60

DATABASE

Slope Oilu~an - 10% 6% .

hydraulic Radius = 1 lrn 3m -
S l o p RMR = 56%
-
S I O ~Width = 15m 2 8m

ER 180m~irn1h 9om' m
Excaval,oo Rate
-
Soan(Sl,che lsnglh) 3 i m *
20%

2700m',A:n -
5 10 1:> 20
He,gnl - 68m 1 2Or.l
Stone Depln - J608rr 1 4dm Delo*
Slope I n ~ l ~ l a l i a=n 68'

Jo#m#np Psrrliel 10 Hangng w * ,

- 9'

hang l g Wall n Relaxallon

HYDRAULIC RADIUS ( m )
Fig. 3(a) - Dilution-approach design equations (after Pakalnis,
Fig. 2 - Modified stability graph (after Potv~n,1988). 1993).

ISOLATED STOPEf61 obsl

STOPE C A T E G O R Y - P L A N la,

5 10 15
HYDRAULIC RADIUS(m)

Fig. 3(b)- Dilution-approach design chart for isolated-stope configuration

dilution approach relies upon information collected initially
from one operation.
Stability graph method
This is an empirical method for open-stope design pro-
posed by Mathews et al. (1981). I t was only after Potvin
(1988) modified the method, based on more field data. that
the method was widely accepted in the industry. In its present
form, the stability graph (Fig. 2) links a stability number (N')
to the hydraulic radius (HR) of the studied stope surface. The
stability number is calculated according to the following
equation
N'=QxAxBxC
where
N' = stability number,
Q = modified tunneling-quality index (NGI) w ~ t ha stress
reduction factor ret to one (after Barton, 1974).
A = stress factor.
B = joint-orientation factor, and
C = gravity factor
The hydraulic radius (HR) equals the surface areadivided by
the perimeter.
The method has been the subject of recent work by
Nickson ( 1 992) and Hadjigeorgiou and Leclair ( 1994). Dur-
ing the last three years. an extensive data-collection field
program was undertaken. In the updated stability graph
geomechanical database. there are now 228 documented case
studies of unsupported open stopes and 163 stopes where
cable bolts were installed. The updated database has permit-
ted a qualitative and quantitative reevaluation of the stability

1130 DECEMBER 1995 MINING ENGINEERING


MODlFlFD STABILITY GRAPH
0
-
10 15 20 25
HYDRAULIC RADIUS (m)
Fig. 4 - Recorded dilution at Ruttan plotted on modified stability
graph.
graph guidelines. While the design guidelines have been
refined, the method is considered a valid design tool.
The stability graph method, however, is subjective (i.e.,
"stable" vs. "cave" conditions), and, despite the use of
quantifiable values, the precise degree of inherent conserva-
tism is not known. Furthermore, the method reflects "cur-
rent" and "past"practice, which may have been influenced by
factors such as legislation, local practices and particular
geological peculiarities and, therefore, does not necessarily
constitute an optimum-design methodology. Research is
being conducted by the authors in quantifying the observed
stability in terms of dilution values, as assessed by survey
methods and discussed subsequently.
Dilution approach
The dilution approach for estimating open-stope dimen-
sions was aculmination of a five-yearjoint effort between the
Ruttan mine of the Hudson Bay Mining & Smelting Inc.,
CANMET and the Department of Mines of Manitoba
(Pakalnis, 1993). The overall objective of the project was to
develop ground stability guidelines for the mining of large
stopes. The parameters most critical to the open-stope design
were established after an extensive statistical and observa-
tional approach showed that, for a particular stope, the
resultant dilution was largely a function of the following:
the rock-mass rating of the hanging wall (Bieniawski,
1976),
the hydraulic radius of the hanging wall,
the rate that the hanging wall is exposed, and
the stope configuration (isolated, rib or echelon).
Figure 3(a) shows the derived relationships that were
subsequently modified into design charts. An example of the
"isolated-stope" configuration is shown in Fig. 3(b). The
design chart shows the resultant dilution employing an expo-
sure rate equal to zero, as defined in Fig. 3(a). The "isolated-
MINING ENGINEERING
Underbreak (unrecoveredore) Overbreak
(dilution)
16 15 14 13 12 11 10 9 8 7 6
Read
Contour',
161514131211109 8 7 6 5 4 3 2 1
@ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ J
Blast Holes Layout --
--- -
- -- - -
Fig. 5 - Vertical section of open stope at Louvicourt mine showing
planned and actual stope profile - laser survey.
stope" design chart is based upon 6 1 observations of dilution,
as estimated visually and by assay.
Figure 4 shows the original "isolated-stope" database
superimposed upon the "stability graph" method. It is inter-
esting to note that the "stable zone" on Fig. 2 is generally
associated with dilution values ranging from 0% to 5%,
whereas the "caved zone" has values in excess of 15%. This,
however, is largely based upon observational, assay and
muck tonnage and not on a surveyed volume, as will be
discussed subsequently.
Cavity monitoring
Until recently, one of the major problems was quantifying
open-stope dilution. The use of laser survey systems has
provided a considerable tool in determining underground-
excavation volumes in a precise and efficient manner (Miller
et al., 1992). The instrument generally employs a laser-
survey range finder integrated within a motorized scanning
head. The range finder can be suspended in a stope or inserted
down a borehole as small as 200 mm (7.8 in.). Through
calibrated rotation of the laser range finder, a three-dimen-
sional stope outline can be generated and, subsequently, a
volume can be determined. This technology is becoming
more routinely employed throughout Canadian mining op-
erations. Germain et al. (1995) reported on such a cavity
monitoring system in operation at the Louvicourt mine,
Quebec, Canada. In that system, a laser survey is conducted
after excavating each stope. In a typical section, it is possible
to compare planned stope contours to the actual profile after
blasting. This enables the operator to estimate the amount of
underbreak and overbreak (Fig. 5).
Pakalnis et al. (1995) reported on the use of a laser survey
at the Detour Lake mine, where it was necessary to develop
design guidelines for sublevel retreat mining. This particular
case study was of interest in that the mine was operating
narrow open stopes with average widths approaching 5 m (16
ft.). As shown in Fig. 6, dilution is particularly critical for
narrow stopes; the narrower the stope, the higher the dilution
for the same amount of wall slough. The open stope at Detour
Lake is generally steeply dipping (70") with a strike length in
excess of 300 m (985 ft.) and a vertical height of I00 m (328
ft.). Widths range between 3 m (9.8 ft.) to over 10 m (33 ft.).
The mining method used is sublevel retreat with the gold-
bearing ore comprised of competent mafic and weaker talc-
schist material. The study was conducted over a two-year
period. The main objective was the development of a mining
method that incorporated maximum stope dimensions with
DECEMBER 1995 1139
 r-1 Induced & Inherent
I Dilution
I

7
I
----]I -

Geolog~cStructure 1 Tme

+ Overhangs lncreaslng Hydraulic Radlus

- Stress Blast Darnageloverbreak

1 Slope Geometry
idqlegr dip, r h I

t Drill Deviation
Human Error
lor lling ruweylng etc i

Fig. 7 - Sources of dilution at Detour Lake mine (Pakalnis, et al.,

Fig. 6 - Dilution as a function of stope width 1995).

BLAST HOLES

SURVEY CON7

$g EL. 5 6 7 5 . h

--
undernut

UNDERCl UNDERCUT J. : r DRAWPOINTS PLUGGED

DUE TO FALL OF
GROUNO

. .
':
,::: ) ,\ EL.,5C25.0m

Scale no
SCALE

VERTICAL SECTION
Fig. 8 - Stope-laser survey showing dilution due to undercutting of
the hanging wall. Dilution recorded as tons per meter of stope length. Fig. 9 - Adverse geometry resulting in wall slough.

minimal dilution. The major sources of dilution were as
shown in Fig. 7. A major contributor to dilution was the
degree of undercut that resulted when developing the indi-
vidual sublevels for purposes of mining, as shown in Fig. 8.
In all instances, the undercut had failed along an existing
parallel structure. This would result in dilution levels in
excess of 5%, solely due to the existence of the undercuts. In
addition, irregularities (doglegs) in the stope geometry re-
sulted in wall slough, as shown in Fig 9. The above analysis
is only made possible by using the cavity monitoring system.
The laser system was also employed to verify the "dilution
approach" (Fig. 3), which was found to closely approximate
the measured motion to within 5% of actual. The above
enables one to quantify the effects of increased stope dimen-
sions on dilution and determine the associated benefits that
may arise through increased support and lower development
requirements (i.e., slots for blasting).
Once the mine operator quantifies the level of resulting
dilution, it is possible to introduce the necessary modifica-
tions to the mine plan, such as stope dimensions, sequencing,
ground support, rate of mining and other parameters that are
at his control.
Conclusions
While dilution is a major concern in underground mines,
it has been difficult to quantify. Consequently, attempts to
assign a cost value have been severely hindered. This paper
discusses empirical techniques that have been applied to
mine design with the aim of controlling the amount of
dilution. The validity of these methods improves when field
data are further calibrated. In this respect, rock-mass classifi-

1140 DECEMBER 1995 MINING ENGINEERING


cation and laser cavity monitoringsystems are valuable aids.
A reliable methodology to quantify ore dilution enables
the operator to perform a costbenefit assessment of imple-
menting alternative designs. The alternate design may incor-
porate the modification of span, support, mine sequence, rate
of extraction, geometry, etc., to arrive at a calculated overall
economic value for a project. + England. 149 pp.
Acknowledgments
The authors would like to thank the operations that partici-
pated in this study and, in particular, would like to thank the
Detour Lake mine of Placer Dome Canada Ltd., CANMET-
Department of Natural Resources, Canada, and the National
Science and EngineeringCouncil of Canada. Particular thanks
i s extended to Dr. S. Vongpaisal of CANMET.
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