Optimisation of Ore Selection in Mining: Method and Case Studies

In the course of reviewing grade control practices at the Marvel Loch gold mine in Western Australia in 1992, FSSI Consultants developed and implemented a novel approach to ore selection using a method to maximise financial return (the MP method*). The approach was based on improved grade control sampling and an ore selection method which directly incorporates both a measure of the uncertainty in knowing the true grade of selection units in the definition of ore, as well as the operating cost and revenue parameters of the mining operation. During the past four years, FSSI Consultants have evaluated and refined the use of this approach and have implemented customised variations of the MP method at seven gold mines and a gold-copper mine in Australia. The previous methods of ore selection at most of these operations were based mainly on polygonal - sectional methods of grade estimation. At all of the sites where grade control optimisation has been given a fair trial over several months of production, the use of the MP method has been consistently rewarding to the mining operations. The benefits include increased run of mine ore stockpiles and low-grade stockpiles and decreased fluctuation in the production grade. Most operations have also benefited from a consistent ability to improve production grade through high-grading of the increased ore production. The increase in ore production has the logical benefit of reducing stripping ratios, increasing mine profitability and mine life.