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By Alan F. Stewart, Frederic B. Claridge, Robert S. Nichols

"In recent years, an increasing number of mines in mountainous terrain have examined the possibility of placing mine waste rock into stream valleys. Pressure to utilize stream valleys as a primary location for waste disposal has increased at many of the mines currently under development or expansion. As the number of environmentally and economically ideal wastedumping sites is limited, consideration must be given to utilization of stream valleys. This raises concerns about maintaining water quality in streams passing through or beneath the dumps and potential detrimental effects to dump stability. Commonly, the flows in the streams tend to be flashy, reflecting localized intense storms and rapid runoff in steep-sided slopes within the watershed. These conditions pertain particularly to British Columbia, which is characterized by mountainous terrain and periodically intense precipitation events.The method of conveying flow through a waste dump depends on a number of geotechnical and hydrological factors, including the size, durability and transmissivity of the rock and the design stream flood flow. This paper describes the approach to the design of waste dumps in stream valfeys developed at several mines in British Columbia."

Jan 1, 1986

By A. Galibois, R. Singhal

"This paper highlights some of the potential application areas of knowledge-based systems in the mining industry. The basic theoretical principles associated with knowledge-based systems are discussed and the justification for mining applications is given. The paper concludes with a brief description of a prototype knowledge-based system applied to scraper selection that was developed at Université Laval on a LISP machine. IntroductionThe beginning of Artificial Intelligence coincided with the conception and development of the first computer systems some thirty years ago. At that time researchers were euphoric about the possibility of modelling the human reasoning process. Soon, however, they discovered that the combinatorial aspect of the set of possible solutions to a particular problem did not permit an in-depth evaluation.In the mid-60s researchers started to look at the heuristic approach because it was more suited to human behaviour with its congnitive abilities (i.e. representing, reasoning, problem solving and advising). The heuristic approach allows possible results rather than exact solutions and it is more rapid and cost effective than the exhaustive combinatorial analysis. The heuristic approach did allow some noticeable progress in the seventies with the development of the first expert system called MYCIN with the objective of diagnosing blood infection diseases."

Jan 1, 1988

By G. B. Hobbs, S. Saimoto, L. Collins

"Plastic yielding and flow in metals is dependent on the microscopic process of simple shear along crystallographic planes and directions known as slip. Thus, by altering the crystallographic direction of the stress axis or placing constraints in the direction of plastic flow, anisotropy of yield strength for the same material is observed. This phenomenon is called texture strengthening. The application of this concept to highly anisotropic crystal structures such as the hexagonal group of titanium and zirconium alloys, the former in missile casing and the latter in nuclear reactor fuel tubing, seems obvious. The outstanding example in cubic structures is the case of deep-drawing steel. The R value, the width strain over the thickness strain during a tensile test, is taken as a measure of texture strengthening. In face-centred cubic structures, texture strengthening has been completely ignored on the basis that materials with R less than one are not amenable to this beneficiation. This study will review two aspects of texture which will lead to strengthening, first the thermal stability of the deformed microstructure, which is dependent on the stress axis, and second, the texture strengthening aspect of fcc metals.A review of recovery and recrystallization in textured aluminum wires, copper and cupro-nickel sheet will be presented with the view of extending these concepts to the manufacture of heat-exchanger tubing. The superior creep properties of specially processed commercial products such as TD-Ni, TD-NiCr and MAR-M200 will be shown to be a manifestation of the same physical phenomena."

Jan 1, 1981

By Young C. Kim

A proper economic analysis of pit slope design must reflect the trade-off between the benefits and the increased risk of slope failure inherent in steeper slope angles. However, no formal framework for a proper analysis has existed to date. This paper summarizes the material contained in the Design Chapter Supplement (5-3) of the Pit Slope Manual. The supplement describes the results of the research effort in which a formal economic analysis framework was developed and tested through a case study. The case study results have demonstrated the practicality of the developed procedure and the availability of required data under "real-life" conditions.

Jan 1, 1979

By A. David MacPhail

"Highland Valley Copper is a large volume producer of copper and molybdenum concentrates. Production is by conventional truck and shovel operation combined with an extensive ore handling in-pit crushing and conveying system.Grade of the two orebodies is low at 0.4% copper and 0.007% molybdenum and this demands a production rate in excess of 260 000 tpd at a stripping ratio of 1: 1. Mining cost has to be kept at minimum levels to keep the mine profitable and thus, it is necessary to keep in the forefront: of technology. As well as the in-pit crushing system, the mine has pioneered the use of shovel weighing coupled with a state-of-the-art dispatch system.Maintenance of the equipment is carried out at the on-site mine maintenance shop with assistance from local shops for engine and wheel motor rebuilds and other large jobs such as those requiring stress relieving. Shovel and truck rebuilds are undertaken by mine crews. Both long- and short-term planning is designed and scheduled in the mine engineering section. Outside consultants are used to assist in slope design, reclamation and blasting technology."

Jan 1, 1992

By Dwayne D. Tannant

The Fox Pit at EKATI Diamond Mine reached a depth of approximately 150 m as of September 2005. The pit is designed with 11 m wide benches excavated using a double benching technique leaving 30 m high bench faces. A series of blasting tests were conducted to improve catch bench reliability and increase the percentage of benches that meet an 11 m catch width. The design changes focussed on reducing damage to the bench crest because maintaining the bench crests is the most important factor in achieving good bench reliability. The most significant improvement was obtained by raising the bottoms of the lower trim blastholes by 0.5 m. This change decreases the depth of broken rock below the final bench elevation, and consequently reduces damage to rock that forms the bench crest below. Another improvement was the use of smaller diameter (165 mm vs. 270 mm) blastholes in the A and B rows for the upper trim blast. This change reduces the charge per delay during detonation, reduces the powder factor slightly, and reduces the energy affecting the final pit wall and crest. As mining and the blast testing progressed, the portion of the bench with crest achievements (>11 m) increased from 57% to 75%.

May 1, 2006

By R. S. Nichols

"During 1973 to 1978, Canadaka Mines Limited, a subsidiary of St. Joseph Explorations Ltd., undertook an extensive exploration and development program in the Cobalt area. This program resulted in the delineation of previously unknown stratigraphic units in the Archean volcanic sequence. During this time period, significant are controls related to area silver deposits were also identified.The Archean geology is comprised of a volcanic pile conformably overlain by sediments. The volcanics contain at least two felsic volcanic centres near the stratigraphic top of the pile. The bulk of the pile consists of mafic flows and interflow sediments. lnterflow sediments around silver are shoots contain mineralized halos of base metal sulphides. The halos exhibit lateral and vertical metal zoning with Cu, Pb and Zn mineralization decreasing away from an are shoot.Silver mineralization controls determined during the Canadaka program agree with the historically well established importance of Coleman sediments as well as Archean contacts for hosting silver deposits. The vertical extent of are shoots is typically 150to 250ft. A strong correlation was found to exist in the Cobalt area between Archean strike and the strike of are veins. Finally, al/ Cobalt area are deposits appear to be associated with a distinct volcanic pile at the top of a sequence of Archean flows."

Jan 1, 1988

By W. B. Morrey

"In recent years, the major effort in detonator development has been concentrated on ""non-electric"" systems. Existing types all involve some form of explosive reaction to transfer ignition energy from outside the borehole to the pyrotechnic delay element contained within the detonator. These may be based on low-energy detonating cords having grained or plasticized explosive cores, shock tube energy transmission principals and explosive gas ignition systems. Each has properties of internal and external effects not present in electric conductors.The MAGNADET System introduces transformer coupling into electric blasting circuits. Safety features with respect to current leakage, stray currents of AC or DC source, electrostatic energy and radio-frequency radiation are comparable to ""non-electric"" systems, with advantages in simplicity, speed of hook-up and range of application.The transformer device used is a small ferrite ring or toroid which is an integral part of each specialized detonator. The detonator legwires form the secondary side of the transformer winding. The primary side is a single wire loop common to all units within the circuit. Power is supplied from a frequency-tuned portable exploder with unique circuit-sensing features.The MAGNADET System is expected to have particular application to shaft sinking, raising and tunnelling where the protective features as well as speed and efficiency are critical factors. Applications of the 'MAGNA' booster in quarries, open pits and longhole deck charges offer control over vibration problems and elimination of surface noise.IntroductionFor many years, electric detonators and electric blasting systems dominated surface and underground applications where controlled delay times were required. Control over the instant of detonation by blasting machines or power-line switches is the major safety feature.Electrical energy exists in many forms. It may originate from many sources. Electrical energy can be difficult to contain. It may enter or escape through a variety of conductive paths. It may fluctuate, concentrate or dissipate to pose a most elusive potential hazard."

Jan 1, 1982

By Lynn C. Fister

"Coal is rapidly becoming a major alternative to oil. According to the World Coal Study Final Report, total world coal trade could approach one billion tons annually by the year 2000. To facilitate the increased production and export market potential of the coal producing countries, advancements must be made to improve the transportation systems. Coal slurry pipeline systems could play a significant role in achieving these market forecasts.There are three major components to a coal slurry system the preparation plant, the pipeline and the dewatering plant. The experience and expertise gained from the Consolidation Coal Company system in Ohio, the Black Mesa system in Arizona and ETSI's Coal Evaluation Plant demonstrate that slurry pipeline technology is proven and available to meet the coal transport challenge.The costs of transporting coal by slurry pipeline can offer significant savings, as about 70 per cent of its costs are fixed. The reverse is true for railroads, where 75 to 80 per cent of the costs vary with inflation. All forms of transport-rail, barge and pipeline-will be required to move the massive volumes of coal. Coal slurry systems can provide a viable transport alternative.IntroductionThe importance of coal as a major alternative to oil is now well known and accepted throughout the world. Increasing oil prices over the last eight years have had a serious effect on national economics, particularly in those countries that are heavily dependent on oil. Coal can replace oil as the principal fuel source which could support world economic growth over the next two decades. This is the main conclusion of the World Coal Study (WOCOL) Final Report, published in May 1980.The product of that report was a result of considerable deliberation by key industry leader s and energy experts. The underlying message of the World Coal Study is that our energy and economic problems can be faced with confidence if coal use doubles by the early 1990s and triples by 2000, and if steam coal trade expand s considerably."

Jan 1, 1982

By Mike McKevitt

We are trying to promote a concept and a change in management?s approach to the iterative process of grade control. This is important as grade control must routinely try and achieve the long term objectives set by the mine plan ??BackgroundBackground ??Factors contributing to variation from planFactors plan ??Basis of OptimisationBasis Optimisation ??Ore Block Optimisation processOre process ??Operating mine examplesOperating examples ??Chain of Mining. ??Intention is to highlight the need for repeatable and consistent materialand material-type classification to remain consistent with the Life of Mine Plan ??We can drill another hole or reWe re-optimise a plan, but once excavated, the final decision has been made ??The grade control decision is the last decision made in the resource exploitation sequence.

May 1, 2009

By S. Zakaria

"Inco's Automated Haulage Truck System (AHT) is a revolutionary automatic guided vehicle that performs all load, haul and dump operations without human intervention. The high level of sophistication and the short period it has been in operation has only allowed a select few Inco personnel to become familiar with the ART operation and maintenance. As an aid to operations an expert system using the knowledge gained from the experienced specialists was implemented in the field.The AHT operating and maintenance assistance expert system will reason through the information given, arrive at conclusions and give advice to operations, technical and management personnel. It will provide comprehensive real-time troubleshooting assistance for the hydraulic, electrical and mechanical subsystems of the ART. The ART expert system has many benefits to Inco which include increased skill levels of ART operations and maintenance personnel, reduction in ART downtime, standardization of troubleshooting procedures and reduction in ART operating and maintenance costs. In the future, the expert system application will be linked to SCADA (Supervisory Control and Data Acquisition), maintenance and statistical software to display current and historical trends of variables from a centralized historical database. As well, a wide variety of features will be integrated into the system including AutoCad drawings, graphics, photographs, voice and video capabilities."

Jan 1, 1994

By J. M. Paxton, R. L. Roscoe, G. A. McCreary, W. W. Muir, T. J. Drown, D. A. Barr, T. W. Law

"This paper reviews the complete cycle of a small mining operation in a remote section of northern British Columbia, including discovery, exploration, development and production. The discovery of high-grade epithermal gold-silver mineralization occurred in 1969 following a regional geochemical reconnaissance program designed to search for porphyry copper mineralization in the Cassiar-Omineca Mountains. Exploration and development from 1971 to 1979 included geological, geochemical and geophysical surveys; trenching, almost 30 000 feet of surface and underground drilling in about 100 holes and cross-cutting, drifting and raising on the principal goldsilver- bearing vein. This led to the delineation of 100000 tons at an estimated grade of0.9 oz gold per ton and 18 oz silver per [on to an average depth of 120 feet below surface. of a 100-ton per day mining operation employing about 50 personnel with all supporting infrastructure transported to the site by a Hercules aircraft. The operation was subsequently supported by its own Twin Otter aircraft with periodic Hercules campaigns supplying major items including fuel.The mining operation included both open-pit and cut-and-fill methods. The milling operation employed conventional cyanide leach process with cyanide destruction initially by alkali chlorination and subsequently by the Inco SOl /Air process.The fly-in operation, initially structured on a 21-day-in and 7-day-out basis was modified to al-t-day-in and Z-day-out basis with no loss in efficiency and with a significant increase in employee satisfaction. The operation, which earned the B.C. Small Mines Safety A ward in two consecutive years in its Ll-month operating history, emphasized safety and process hazard awareness. Wildlife studies in the environmentally sensitive mine area also showed that industry and wildlife can coexist in harmony.Most importantly, the paper compares the feasibility assumptions with actual operating experience."

Jan 1, 1986

By Robert B. Parsons

"The customary onslaught of government budgets this spring offers lots of interesting reading to the mining industry.While the favourable changes tend to get all the fanfare, there are some ""sleepers"" in the host of proposed changes which will be bitter pills for some mining people to swallow.IntroductionOn a scale of one to ten, the Canadian mining industry will probably give this year's federal and provincial budgets a score that is pretty close to five. Although some budgetary proposals are generally perceived to be favourable to the industry, there are other provisions (and lack of provisions) which are considered to be negative.This month, Tax Notes examines in a summary manner the principal features of the 1985 federal and provincial budgets which are of particular interest to this country's mineral industry."

Jan 1, 1985

By P. M. Huck, R. John

"The National Uranium Tailings Program was established in 1982 to develop, in part, a mathematical predictive model which would allow the assessment of the impact of uranium mill tailings on the environment and particularly on humans. . To achieve this , various studies were undertaken to establish the role played by key constituents of the tailings. This paper summarizes the findings of a study carried out under that program, to examine the leachability of barium-radium sulphate sludges produced in the treatment of uranium mill tailings decants. The investigators performed detailed chemical an alysis of the sludge, applied geochemical computer models to investigate sludge leaching behaviour, and conducted experiments to assess the impact of bacteria on leaching. The modelling showed that the redox state o f the sludge-leachant system was the most important factor. Substantial bacterially-mediated dissolutio n of the sludge and release of radium was demonstrated experimentally under suitable reducing conditions . INTRODUCTIONIn September 1981, Phillip A. Lapp presented the final report of the National Technical Planning Group on uranium tailings research to the federal government (Lapp, 1981). Lapp' s group had performed an in-depth survey of the status of uranium tailings research in Canada and, as a result, recommended that a national program be funded in the amount of $18 .6 million. Half of this fund ing was to come from the federal government, with the two producing provinces , Ontario and Saskatchewan, providing the balance. However , the provinces declined to support the program and the federal government decided to inaugurate a reduced program with $8.5 million o f funds .In late 1982, the formation of the National Uranium Tailings Program (NUTP) was announced by the minister of state for mines. A primary objective of this program was to develop a mathematical predictive model that would permit the assessment of the impact of uranium mill tailings on the environment, a nd particularly on humans. The program was to use existing information to the greatest possible extent, and then fund research to fill in gaps or substantiate data where necessary .The NUTP was established to administer this program of contract research over a five-year sunset life. By the end of the 1986-87 fiscal year the NUTP had completed about 100 contracts. One of those projects was to study the effect of placing barium-radium sludge ba ck within the tailings matrix. Th is paper gives the results of that study."

Jan 1, 1989

By J. Lebl, S. Bharti, D. J. Cornett

"This paper presents the design and application of blasthole mining to an area at Strathcona Mine previously employing post pillar cut-and-fill. Extensive mining in the area had led to gradually deteriorating ground conditions and post pillar stoping was no longer considered acceptable. Alternative methods had to be investigated.Conventional methods for mining in poor ground were rejected because of the high cost. Blasthole mining was selected because iI offered good productivity and safety with acceptable costs. The design of this approach involved field investigations and the use of numerical modelling to simulate the different blasthole options and their impact on ground stability. The blasthole design incorporated reinforcement with cablebolts, use of a radio-controlled remote LHD unit, large-diameter holes, blast design and wall control. Potentially unstable areas were outlined during mining with ground monitoring instruments and the results used to modify mining plans during the production phase.IntroductionIn underground metal mines there is a need to improve safety and productivity and lower mining costs in order to maintain reasonable rates of return on investment. This requires the application of good engineering design to both mine planning and ground control in order to optimize production and costs and to forecast potential problems during mining. The task becomes more important when extensive mining leads to gradually deteriorating ground conditions, making existing mining methods and techniques no longer acceptable from a safety point of view. Alternative mining methods must, however, be sufficiently productive to ensure profitability. This paper presents an example of the engineering design and operating approach used by Falconbridge in dealing with such a situation at Strathcona Mine."

Jan 1, 1983

By Ward E. Kilby, Bruce I. Mcclymont

"Data from the South Fork Pit Area of the Bullmoose deposit in northeastern British Columbia are used to demonstrate the usefulness of microcomputers to the on-site geologist. The technique utilizes a series of digital surf aces in the form of a network of points to define various geologic parameters such as seam positions, topography and coal quality characteristics. Manual digitizing, kriging and combinations of these techniques are used to calculate these digital surfaces, the best method depending upon the type and quality of the data in question. Digital surfaces, each modelling a specific feature when combined and manipulated with the computer form a powerful tool, the deposit model. The resultant model, containing all the surfaces, is used to examine seam and inter-seam thicknesses, deposit volumetrics, seam quality characteristics and the adequacy of sampling.IntroductionCoal deposit modelling using computer-based techniques has become routine. However, a geologist working in the field, without access to mainframe or minicomputer, ha s considerable difficulty implementing these procedures. However, microcomputers, which are portable and inexpensive can handle exploration data, perform various geological analyses, and produce deposit models virtually at the same time as the data is being collected. For the on-site geologist this means that quick access to the results of such modelling could point out inadequacies in deposit definition and trends in coal quality deserving investigation."

Jan 1, 1985

By Alexandre Desbarats, Michel David

"All optimum pit design studies start from the geological are reserves inventory, the estimated grades of all blocks of potential are within the interpreted limits of the deposit. The actual optimization procedure is then carried out on block valuations based on these estimated grades. Thus, the relevance of any pit design can be seen to depend directly on the ore reserve estimation . To insure a proper pit design, a first step would be to use a geostatistical reserve estimation technique such as kriging, however, this is not enough. A frequently neglected fact is that the blocks of ore estimated during the planning stage of the mine are usually considerably larger than those on which the ore-waste selection will be made at the time of mining. Experience in the exploitation of large low-grade deposits has shown that large blocks, estimated to be are, when mined selectively in smaller blocks, often yield significant amounts of waste material. This phenomenon, known as internal waste, is a function of the variability of the grades, the size of mining unit and the amount of sampling information on which ore-waste decisions are made.In this study, it was proposed to consider the effect of internal waste caused by selective mining, on. pit design, using geostatistical methods to predict the tonnage and grade of recoverable reserves within large blocks.Optimum pits obtained using a block valuation formula taking into account the recoverable reserves within large blocks were compared with optimum pits obtained using a conventional block valuation formula. It was found that the optimum pits obtained by the proposed method had the highest total valuations and thus were, in fact, ""more optimum”. These pits were characterized by greater are tonnages at a lower average grade, the additional ore more than compensating for the drop in grade. It was also found that the consideration of internal waste in pit design could considerably alter pit limits in marginal areas of the deposit.It was concluded that selective mining had a significant, potentially critical, impact on the design of optimum pits especially in the case of large low-grade deposits."

Jan 1, 1984

By A. I. A. Salama, M. W. Mikhail, R. J. Mikula

"The Coal Research Laboratory (CRL) of CANMET along with other research organizations in coal-producing countries envisage major benefits from computer applications in coal preparation, Some of these benefits are greater system flexibility, improved coal preparation plant performance efficiency and efficient utilization of manpower, all of which result in economic benefits. Computers can be applied for both on-line and off-line purposes; this paper focuses on the on-line applications from the process control point of view.A critical discussion of the different analog and digital process control systems is presented. Recent developments in Great Britain, West Germany, Poland and Australia on automation and instrumentation using on-line measurements of coal ash and moisture contents are identified.The CRL research and development strategy aimed at achieving on-line computer control of an automated coal preparation plant is presented.IntroductionIn the past twenty years an enormous progress in the area of computer technology has been noticed. Computer applications in industrial processes offer greater system flexibility, improved plant performance efficiency and efficient utilization of manpower. Significant computer control development in mineral processing has already been achieved. Although progress has been made in the area of computer applications in coal preparation, more effort is needed to utilize the full potential.The computer applications in coal preparation can be viewed as off-line and on-line. Considerable progress has been reported in the area of off-line computer applications, especially in the areas of modelling, performance evaluation/prediction and statistical analysis. However, only modest progress in on-line applications has been reported(1-7). This paper will focus on: online instrumentation and process control applications, different analog and/or digital control systems, on-line automation and instrumentation in other countries and CRL strategy toward pilot plant automation."

Jan 1, 1985

By Jian Deng, Haitian Sun, Zengqian Hou, Shuhe Song

"Abstract - Volcanogenic massive sulfide (VMS) deposits, an important base-metal deposit type in China, occur widely in submarine volcanic districts of variable magmatic affinities. These VMS deposits range in age from Archean to Mesozoic, but most are in Proterozoic and Paleozoic sequences. More than 60% of VMS deposits formed in the Paleozoic, the most important metallogenic eon. Three important Paleozoic VMS-metallogenic provinces include Northern Qilian, Sanjiang and Altai provinces. The Proterozoic constitutes the next important era, but with no VMS deposits in the middle Proterozoic. VMS deposits associated with the Proterozoic volcanic rocks occur around the Yangtze Platform and in the western Kunlun-Qinling. The Triassic is third in importance, with VMS deposits concentrated in the Sanjiang Tethys. The Archean has only one VMS deposit, on the northern margin of the Sino-Korea Platform.Five distinct compositional classes of Chinese VMS deposits have been distinguished: Cu, Cu- Zn (or Zn-Cu), Cu-Fe, Zn-Pb-Cu, and Pb-Zn (-Cu). The Cu, Cu-Co, and Cu-Zn types of deposits occur sporadically from the Archean to Paleozoic, and are closely associated with mafic and ultramafic volcanic sequences. The Zn-Pb-Cu and some Cu-Zn type deposits are restricted to the Paleozoic and Triassic, and are hosted by calc-alkaline felsic rocks in bimodal basalt-rhyolite sequences, whereas Cu-Fe and Pb-Zn type (except for the Laochang deposit) deposits are restricted to the Proterozoic and occur in calc-alkaline volcanic sequences. As large quantities of marine mafic volcanic rocks were deposited in western China, Cu and Cu-Zn deposits are major types of Chinese VMS deposits.Chinese VMS deposits formed in a wide range of paleo-tectonic settings and depositional environments, such as island-arcs, rifts, aulacogens, and ocean ridge hot spots. Among these, the rift and back-arc environments are the most important, containing about 60% of Chinese VMS deposits. Aulacogens are a subordinate environment where most of the Proterozoic VMS deposits formed. The oceanic ridge and hot-spot systems are common in the tectono-magmatic domains in China, but contain only a few small Cu and Cu-Zn type VMS deposits.The Chinese VMS deposits have usually been influenced by both deformation and metamorphism to various degrees, resulting in changes in the shape and metal distribution. Seven representative deposit styles have been recognized: sheets, sheet plus strata-bound stringer, cyclically zoned deposits, mounds, mound-like deposits, strata-bound stringer-disseminated, and stockwork-disseminated deposits. The formation of these various styles of deposits is controlled by several key factors, such as lithology and permeability of the host rocks, focused or unfocused discharge, temperature and chemical composition (e.g., salinity) of hydrothermal fluids, as well as depth of seawater."

Jan 1, 1999

By Jorgen Elbrond, Yve Lizotte

"A mine evaluation method based on the use of a computer program that models mining with an open-ended dynamic program is presented in this paper. It is demonstrated with an example how the method is applied, how some of the decision variables are related in the particular industrial environment and how these decision variables affect the economic benefits of mining.IntroductionTwo distinguishing characteristics make mining a particular industrial environment: exhaustible resources of a given ore deposit and heterogeneousness of the ore grade spatial distribution in the ore deposit. These characteristics, inflation, uncertainty and cyclical price variations which greatly affect estimated cash flows also contribute in rendering difficult the evaluation of the economic outcome of mining at the preliminary planning stage.Decision variables and their ranges are associated with the mine plan; basically, they include choices of the mine's nominal capacity (mining and milling), the sequencing of mining through the deposit, the ranges of possible production rates and cutoff grades, and the stockpiling policies. The mine's nominal capacity must be decided at the planning stage, but this capacity choice must take into account flexibility to modify other decision variables as mining commences and uncertainty resolves.Although it is generally accepted in discounted cash flow analysis that the sequence of mining must proceed from the richest to the lowest-grade stopes (with correspondingly ajusted cutoff grades), this may not produce optimum benefits when cyclical price variations are considered.Mining rates and cutoff grades can also be adjusted to changing economic conditions, taking into account the limited resources of the ore deposit. Thus, when prices are thought to be in the trough of a cycle, production can decrease to preserve ore for expected greater future profits. When prices rise, mining rates can increase possibly even over the mine's nominal capacity. In both cases, the machinery's effectiveness shall not be-optimally utilized; this will be reflected particularly by the variations in the concentrator's metal recovery and the concentrate grade output."

Jan 1, 1982