Application Of Economic Parameters And Cutoffs During And After Pit Optimization

The application of cutoffs during and after pit optimization is examined for a lower-grade multi-metallic copper deposit. Pit optimization requires calculation of the net revenue associated with each mining block, incorporating parameters such as metal prices, grades and expected recoveries, mining and processing costs, smelting and refining charges, and penalty element and royalty charges. Sensitivity analysis during pit optimization reveals which of these parameters have a significant effect on the total contained resource tonnage and total contained non-discounted revenue in the optimized pit. The cumulative effect of changing several of the more significant parameters is investigated. Application of a copper cutoff grade to a block inside the optimized pit could result in the less than optimal extraction of the resource. A block with copper grade below the applied cutoff could be economic due to the presence of other metals. Conversely, a higher copper grade block may be sub-economic. The relative merits of applying a copper grade cutoff, "equivalent grade" cutoff and dollar value per ton cutoff to blocks inside the optimum pit are discussed.