Optimum Production Rate For High-Grade/Low-Tonnage Mines ? Introduction

The Optimum Production Rate (OPR) is one of the most important parameters in the evaluation of a mineral deposit. The OPR cam also be expressed as the Optimum Mime Life (OML) in years since the expected mime life is determined by dividing the OPR per year into the estimated ore reserves. Unfortunately, very little time and effort has been directed towards the determination of the OPR. Instead, "rules of thumb" are often applied to select a mime life without due consideration of the economic implications of such a selection. A "justification" for a particular production rate is often based on a pre-conceived arbitrary requirement for a mime life of 5, 10, or 15 years, for example. In this paper it is demonstrated that such arbitrary selections for high-grade/low¬-tonnage mines (such as many underground gold/silver deposits) often lead to sub¬optimal results. In fact, am apparently uneconomic deposit at am arbitrary production rate may be economic at the OPR. Consequently, investment opportunities may be overlooked if one analyzes mime' properties based on arbitrary production rates.