An Introduction to Cutoff Grade Estimation Theory and practice by Reileyfan


									                                                                                                                         S T R AT E G I C R I S K Q U A N T I F I C AT I O N
REGISTRATION DEADLINE                  FEBRUARY 28, 2009        INSTRUCTOR                                               AND MANAGEMENT FOR ORE RESERVES
                                                                                                                         AND MINE PLANNING
Send registrations to                                            JEAN-MICHEL RENDU graduated as a mining
Tara Hicks
                                        AusIMM, CIM, SME,
                                                                 engineer from École des Mines de Saint Etienne,
                                                                                                                         An Introduction to Cutoff Grade
                                        and SAIMM
The AusIMM
                                                                 France, and obtained a Master’s and a Doctorate in      Estimation: Theory and practice
P.O. Box 660                                                     mining engineering from Columbia University, New
Carlton South Vic 3053
                                        (2,100 ex GST)
                                                                 York. In 2001 he retired as Vice President              in open pit and underground mines
Australia                                                        Resources and Mine Planning of Newmont Mining
                                        Non-members:                                                                     JEAN MICHEL RENDU
Phone 03 9658 6127                                               Corporation, with responsibilities for estimation
                                        $2,530                                                                           C O N S U LTA N T, U S A
Fax 03 9662 3662                                                 and public reporting of resources and reserves,
                                        ($2,300 ex GST)
Email                                       and for mining engineering services worldwide. He
Visit                                          is now a mining consultant. He is the author of
                                                                 approximately 50 publications on mining, and
Title__________ Name____________________________                 authored textbooks on geostatistics and cutoff
                                                                 grade estimation. He is an elected member of the
AusIMM, CIM, SME, ______________________________
                                                                 U.S. National Academy of Engineering and a past
or SAIMM Member #
                                                                 director of SME. He was recognized by SME as a
Job title ________________________________________               Distinguished Member and a Krumb Lecturer, and
                                                                 received the SME President’s Citation, the SME
Employer ______________________________________                  Daniel C. Jackling Award, and the AIME Mineral
Address ________________________________________                 Economics Award.

City ________________________ Prov/State ________
Postal/Zip Code __________ Country______________                WHO SHOULD ATTEND
Phone ______________ Fax ______________________                  This course is designed for professionals involved
                                                                 in making decisions regarding mining projects dur-
Email __________________________________________                 ing exploration, evaluation, development, and
                                                                 operations, including managers, financial analysts,           2 0 0 9 PROFESSIONAL DEVELOPMENT
I will bring a laptop                         Yes     No
                                                                 mining engineers, metallurgists, geologists, and                            SEMINAR SERIES
Spectrum Series Vol. 14, 2nd ed.        CD     or BOOK           public policy makers.
PAYMENT Diners AMEX                 Visa                                                                                             MARCH          14-15    2009
  MasterCard Cheque                                             VENUE DETAILS
Card # ________________________________________                  Hyatt Regency Perth
Expiry _____ / _____                                             99 Adelaide Terrace
                                                                 Perth, Western Australia 6000
Amount $ ______________________________________        
Name on Card __________________________________
Signature ______________________________________
   Registration includes course notes, lunch, and morning       COSMO – Stochastic Mine Planning Laboratory
                                                                Mining Engineering
   and afternoon tea.
   Participation in this course may be a valid activity          COSMO - Stochastic Mine Planning Laboratory, a
   towards continuing professional development with up to        global centre for leading-edge research and graduate
   26 contact hours. Participants receive a Certificate of       education in “orebody modelling and strategic mine
   Completion.                                                   planning with uncertainty”, is supported by AngloGold
   Notification of Cancellation received in writing up to        Ashanti, Barrick, BHP Billiton, VALE, VALE INCO, De
   February 28, 2009 (10 working days before the course) will    Beers, Newmont, and Canada Research Chairs Program,
   incur a 20% cancellation fee. No refund will be made after    NSERC and CFI.
   this time. An alternative participant may be nominated.
   An Introduction to Cutoff Grade Estimation:
   Theory and Practice in Open Pit         The 2007 AusIMM Spectrum Series Vol. 14, 2nd
   and Underground Mines                   Edition: Orebody Modelling and Strategic Mine
                                            Planning is included with the course materials

                                                                                                                          CUTOFF GRADE AND MINE PLANNING – OPEN
CONTENT AND                                                    COURSE OUTLINE                                             PIT AND UNDERGROUND SELECTIVE MINING
OBJECTIVES                                                          INTRODUCTION
                                                                                                                          Open pit mine: Economic valuation of a pushback
                                                                                                                          Underground mine: Economic valuation of a
Cutoff grades are essential in determining the eco-                 GENERAL PRINCIPLES                                    stope
nomic feasibility and mine life of a project. The fun-              Mathematical formulation                              Similarities between open pit and underground
damentals of cutoff grade calculation, first estab-                 Cutoff grade and grade-tonnage relationship           mine planning
lished by Ken Lane twenty years ago, are revisited.                 Direct profit and loss: Udir(x)
                                                                                                                          CUTOFF GRADE AND MINE PLANNING – BLOCK
In this course it is shown how direct and indirect                  Opportunity costs and benefits: Uopp(x)
                                                                                                                          AND PANEL CAVING
costs, opportunity costs imposed by operational                     Cutoff grade optimization with opportunity costs
                                                                                                                          Constraints imposed by block and panel caving
constraints, and other factors, such as political                   Other costs and benefits: Uoth(x)
                                                                                                                          Marginal cutoff grade and draw point manage-
risk, legal, environmental, and regulatory require-                 MINIMUM CUTOFF GRADES                                 ment
ments, must be taken into account. Mathematical                     Cutoff grade between ore and waste                    Marginal cutoff grade and block design
equations are developed and graphical analytical                    Cutoff grade for material at the bottom of an         Influence of capital cost and discount rate
methods are displayed, which can be used to solve                   open pit mine                                         Opportunity cost
most cutoff grade estimation problems. It is shown                  Cutoff grades in underground mines
how minimum cutoff grades are estimated and                                                                               WHICH COSTS SHOULD BE INCLUDED IN
                                                                    Cutoff grade to choose between processes
how they must be modified to take into account                                                                            CUTOFF GRADE CALCULATIONS?
                                                                    Cutoff grade between waste and low grade stock-
constraints imposed by mine or mill capacity, or by                 pile                                                  WHEN MARGINAL ANALYSIS NO LONGER
limits on sales volumes. Multiple practical exam-                   Cutoff grade with variable recoveries                 APPLIES: A GOLD LEACHING OPERATION
ples are given, illustrating the role of cutoff grades              Opportunity cost of not using the optimum cutoff
in mine planning, in allocating material to different                                                                     MINING CAPACITY AND CUTOFF GRADE WHEN
                                                                    grade                                                 PROCESSING CAPACITY IS FIXED
processes, in optimizing mill operating conditions,
and in poly-metallic deposits. Examples also show                   CUTOFF GRADE FOR POLYMETALLIC DEPOSITS                PROCESSING CAPACITY AND CUTOFF GRADE
the relationship between cutoff grades and the                      General considerations                                WHEN MINING CAPACITY IS FIXED
design of pushbacks in open pit mines, the devel-                   Calculation of cutoff grades using net smelter
                                                                    return (NSR)                                          MINING AND PROCESSING CAPACITY AND
opment of new stopes in underground selective
                                                                    Calculation and reporting of metal equivalent         CUTOFF GRADE WHEN SALES VOLUME IS FIXED
mining, and the optimization of block sizes in cav-
                                                                                                                          Fixed sales with no mining or processing con-
ing methods. The relationship between mine selec-                   CUTOFF GRADE AND OPTIMIZATION OF                      straint
tivity, deposit modeling, ore control and cutoff                    PROCESSING PLANT OPERATING CONDITIONS                 Fixed sales and fixed processing rate with no min-
grade is also discussed. Included in the course of                  Mathematical formulation                              ing constraint
registration is a copy of the instructor’s book “An                 Example: Optimization of grinding circuit in cop-     Fixed sales and fixed mining rate with no process-
Introduction to Cutoff Grade Estimation”.                           per mine                                              ing constraint
                                                                                                                          RELEASING CAPACITY CONSTRAINTS: A BASE
                                                                                                                          METAL EXAMPLE
                                                                                                                          RELATIONSHIP BETWEEN MINE SELECTIVITY,
                                                                                                                          DEPOSIT MODELING, ORE CONTROL AND
                                               PLEASE NOTE It is strongly recommended that participants bring a laptop.   CUTOFF GRADE
                                                                                                                          CLOSING REMARKS

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