Evolution of Grade Control at Falconbridge Kidd Creek Mine

Kidd Creek Background ? Located in Northern Ontario, Canada ? Underground base metal mine ? Operating since 1966 ? Total of 125Mt mined to date (2.43% Cu, 6.60% Zn) ? Current plan at 2.4Mt/Y (6575t/D) Current Practices ? Evaluating stope margins to ensure that value is added ? Scheduling sulphide and Cu stringer ore to limit oxidation in passes ? Scheduling to maintain uniform grades to concentrator ? (SOPs highlight problem stopes on mine plans, and limit blast sizes in those stopes which may contain sulphides prone to oxidation) ? Scheduling high-Pb stopes to avoid spikes to concentrator ? Providing weekly, monthly and long-term forecasts ? Reconciling mine and mill production ? Underground grade and dilution estimates by mine supervision ? Terminate mucking when grade becomes sub-economic ? Laser cavity surveys to provide feedback and improve Designs Cut-off Grades ? Ore value is obtained from copper, zinc and silver ? Ore outlines at 2% copper equivalent used to guide stope planning; sulphide outlines obtained from contacts while copper stringer outlines drawn from block model (kriged) ? Datamine block model and CADD software used to evaluate alternative stope shapes ? Stopes classified as waste, incremental, or full-cost based on margin calculations for each stope ? Incremental ore may be mined if it does not displace fullcost Ore Conclusions ? Grade control remains an important function for optimizing the ore extraction at Kidd ? The scope of the function has changed to a scheduling focus ? A change in grade control practices over time has not led to significant changes in concentrator feed ? The lead and iron sulphide content of the ore display upwards trends and may require more attention in the future ? The key function of field observations has shifted to flagging exceptions and terminate mucking at grade cut-off