Optimizing Grade Control In Open Pit Gold Mining

The classification of selective mining units (SMU) and the assignment of grades to those classified SMU are very important in open pit mining, especially for precious metal mining. When the classification is done, the true values of the SMU grades are unknown. These unknown SMU grades are mostly estimated analyzing the geologic data and blast hole assays. To classify the SMU's based on the estimate of SMU grade, without considering uncertainty associated with unknown SMU grade, yields incorrect decision in sending material to appropriate destination. In this paper, a method is developed to classify SMU's considering the uncertainty associated with unknown SMU grades. By using this method, traditional estimate of SMU grade is replaced with conditional probability distribution of SMU grade. The decisions about the destination of a given SMU are performed by minimizing the loss due to misclassification. Also, the asymmetric loss function by penalizing the overestimation and the underestimation unequally is used in assigning grades to classified SMU's. A case study is carried out to apply the traditional ore control techniques and proposed method in classification of SMU's and the assignment of the grades in a hypothetical gold mine.