2. Open-Pit Mine Feasibility Method and Application at Placer Development ? Introduction

It is essential for a. mining company to determine an optimal mining strategy which will maximize the return on investment. In the case of Placer Development Ltd., the Lerch-Grossman three-dimensional optimization technique has been implemented on a digital computer to assist in the determination of such a strategy. It is the purpose of this chapter to explain and illustrate the methodology of the Placer Development Ltd. computer system with emphasis on the feasibility phase of a mine's development. In the Placer Development Ltd. strategy determination process, it is essential that certain objectives be considered: 1) There must be some means of constructing a realistic computer model of an ore body which gives a significant weight to geological constraints. 2) Data must be accurate and quantifiable. 3) Computer solutions must be unique, i.e., approximation or iteration methods of determining optimal solutions are undesirable. A method must be used which, when given fixed parameters and data, yields a mathematically sound unique solution. The following material is a presentation of how these objectives have been implemented. The flow of this outline will be from the general to the specific, with an example application.