Determination Of Optimum Cutoff Grades Of Multiple Metal Deposits By Using The Golden Section Search Method

Ataei, M.
Organization: The Southern African Institute of Mining and Metallurgy
Pages: 8
Publication Date: Jan 1, 2003
In recent years several mine researchers have studied the optimization of cutoff grade with the purpose of maximizing Net Present Value (NPV). The best and most popular one is the Lane algorithm. Based upon the Lane algorithm it is possible to calculate the optimum cutoff grade for mine, mill, and refinery capacities for single metal deposits with variable grades. The Lane algorithm cannot be used in multiple metal deposits. The reason is that, while in single metal deposits six points are possible candidates for the optimum cutoff grade, in multiple metal deposits an infinite number points are possible candidates for the optimum cutoff grades and objective function evaluation of these infinite points is impossible. In this study the Golden Section search method was used to calculate optimum cutoff grades of multiple metal deposits for the same conditions as Lane assumed in single metal deposits. Based on this method, grade-tonnage distribution uncertainty space of problem is guessed. In the next step, by selecting test points in uncertainty space and evaluating the objective function at these points, a part of uncertainty space will be eliminated. The procedure is then repeated until the uncertainty space has been sufficiently reduced to ensure that the optimum cutoff grades have been located to the required accuracy. Key words: Optimum cutoff grades, Optimization, Net Present Value (NPV), Golden Section search method
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