A Simulation-Optimization Model For Exploration And Exploitation Of Exhaustible Mineral Resources

This paper discusses the development of a SLAM II* simulation model with imbedded optimization modules designed M evaluate mineral exploration and exploitation strategies. The model traces through a sequential exploration program, evaluating each deposit site based upon geologic information and potential profitability of the site. At a specified time during the simulation, a new production plan is developed for currently producing deposits which takes into account the planning horizon and deposits which are currently being explored. Potential uses of the model by geologists, engineers, and management decision makers include setting corporate objectives and policies on exploration and production. The model is also useful for testing past decisions to evaluate decision making criteria and evaluating mineral deposit profit potential.