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Cut-off grade optimization of open pit mines with multiple processing streams Pettingell, Michael Nash
Abstract
In this study, dynamic cut-off grades and multiple processing streams are used to maximize the value of a mining project based on a finite resource. Optimal cut-off policies are generated using Lane’s method for determining cut-off grade. By maximizing the present value of future profits as a function of cut-off grade, mine project value is increased over the traditional break-even approach. A method for determining multiple cut-off grades at a single deposit was applied to analyze the impact that changes in processing capacity have on NPV. It was found that additional capacity related to a separate mill facility resulted in an economic reclassification of ore and waste. Grade tonnage data used in the case study was simulated to represent the geologic uncertainty associated to low-grade mineral deposits. Results from the hypothetical case study examined in this thesis reveal that a low-grade open pit gold mine will benefit from the use of multiple processing streams when a dynamic cut-off policy is applied. Particularly, when incorporating a “high grade” modular processing stream to maximize the potential revenue of the mineralized material. This means that for a given set of design, production and geological parameters, the classification of ore and waste is what ultimately determines the NPV of a mining project.
Item Metadata
Title |
Cut-off grade optimization of open pit mines with multiple processing streams
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Creator | |
Publisher |
University of British Columbia
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Date Issued |
2017
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Description |
In this study, dynamic cut-off grades and multiple processing streams are used to maximize the value of a mining project based on a finite resource. Optimal cut-off policies are generated using Lane’s method for determining cut-off grade. By maximizing the present value of future profits as a function of cut-off grade, mine project value is increased over the traditional break-even approach. A method for determining multiple cut-off grades at a single deposit was applied to analyze the impact that changes in processing capacity have on NPV. It was found that additional capacity related to a separate mill facility resulted in an economic reclassification of ore and waste. Grade tonnage data used in the case study was simulated to represent the geologic uncertainty associated to low-grade mineral deposits. Results from the hypothetical case study examined in this thesis reveal that a low-grade open pit gold mine will benefit from the use of multiple processing streams when a dynamic cut-off policy is applied. Particularly, when incorporating a “high grade” modular processing stream to maximize the potential revenue of the mineralized material. This means that for a given set of design, production and geological parameters, the classification of ore and waste is what ultimately determines the NPV of a mining project.
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Genre | |
Type | |
Language |
eng
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Date Available |
2017-08-28
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Provider |
Vancouver : University of British Columbia Library
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Rights |
Attribution-NonCommercial-NoDerivatives 4.0 International
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DOI |
10.14288/1.0354968
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URI | |
Degree | |
Program | |
Affiliation | |
Degree Grantor |
University of British Columbia
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Graduation Date |
2017-11
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Campus | |
Scholarly Level |
Graduate
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Rights URI | |
Aggregated Source Repository |
DSpace
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Item Citations and Data
Rights
Attribution-NonCommercial-NoDerivatives 4.0 International