Indicator Kriging Model and Revenue-Based Mine Planning System Implemented at Phoenix Mine

The Phoenix mine is one of NewmontÆs open-pit operations located in Nevada. Mining started in 2005, with the mine producing gold, copper and silver. The mine life is about 20 years. The gold grade estimation uses the Newmont in-house indicator kriging approach to handle the high variability in drill hole composite grades and support mining selectivity. Each block contains up to 200 subblocks with different gold grades. A flotation mill is designed to process oxide and sulfide ores, recovering gold, copper, and silver. An additional copper leach process is currently under study to process low gold and high copper oxide material with low copper recovery in the mill. The metallurgical recoveries and processing costs are dependent on many variables including rock formation, metallurgical domain, cyanide soluble copper and sulfide contents. This paper describes the Newmont in-house indicator kriging procedures and the revenue based mine planning software system implemented at Phoenix mine to address the complexity resulting from multi-process, multi-metal and indicator kriging model.