Cut-off grade based sublevel stope mine optimisation: Introduction and evaluation of an optimisation approach and method for grade risk quantification

Abstract

Research in the field of cut-off grade optimisation has shown a relationship between cut-off grade, project life and Net Present Value. Lane's theory demonstrates that cut-off grades can be optimised in order to maximise project profitability. Although the theory forms the basis for many open pit mining projects, application of the theory in underground mining remains limited to-date. The main reason for this is the complex interaction between all processes in underground mine planning which makes it difficult to apply Lane's mathematical optimisation approach. Recently a new Stope Optimiser product was released. The AMS Stope Optimiser automates the design of underground stopes at user defined cut-off grades and allows for rapid evaluation of mine designs at different cut-off grades. Using this software, an optimisation approach was developed and validated on an underground gold deposit in northern Sweden. Potential project NPV increased by approximately 30% when using this new approach. Spatial grade uncertainty in mineral resources was identified to be a major risk in underground stope design. The optimisation approach was further extended to account for grade risk using estimated and stochastic simulated resource models. The resulting optimisation process accounts for grade risk early in the design process and reduces the risk of a stope not meeting the cut-off grade with subsequent financial loss.