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By Joel K. Waterland

GENERAL DESCRIPTION Homestake Mining Co.'s operations are at Lead, SD. Production from the various methods used are: 1 155 753 t/a (1,274,000 stpy) by open cut-and-fill, 68 039 t/a (75,000 stpy) by square set cut-and-fill, 144242 t/a (159,000 stpy) by shrinkage stoping, 107 048 t/ a (118,000 stpy) by blasthole stoping, and 67 132 t/a (74,000 stpy) in development work for a total of 1 542 214 t/a (1,700,000 stpy). Mining takes place from the 616-m (2000-ft) level to the 2073-m (6800 ft) level (Fig. 1). The average travel time to the stope is 45 min. GENERAL ORE BODY REQUIREMENTS AND LIMITATIONS Size, Shape, and Dip of Ore Body Six major ledges varying from 914 m (3000 ft) long by 228.6 m (750 ft) wide to 305 m (1000 ft) long by 122 m (400 ft) wide are mined. Within these ledges are irregular-shaped areas of varying sizes. These ledges dip at approximately 1.2 rad (70°) to the east and plunge to the south from 0.26 to 1.57 rad (15° to 90°). Ground Conditions The ore is cummingtonite (chlorite schist) which is very competent except for major bedding planes and fracture patterns. The footwall is a slate but because of the dip presents very few problems. The hanging wall is also a slate which because of the dip and bedding is very weak and requires considerable rockbolting. No problem has been encountered with rock bursts to a depth of 2438 m (8000 ft). Ore Value The ore values vary somewhat from ledge to ledge, but the average ore delivered to the mill is approxi¬mately 6.2 g (0.2 oz) of gold per ton. A small amount of silver is the only byproduct of this operation. Annual production of gold is approximately 10 575 183 g (340,000 troy oz). Production Requirements The mine has a mill capacity of approximately 1 723 651 t (1,900,000 st) but because of several fac¬tors (manpower, depth, etc.) this mill capacity has not been attainable for the past several years.

Jan 1, 1982

By B. Hornsby

At the Mount Isa mine, Mount Isa, Qld., Australia, sublevel open-stope mining is used for copper ore while both sublevel open-stope and cut-and-fill methods are used for the silver-lead-zinc ores. Production in 1979¬80 was 4 730 000 t (5,200,000 st) copper ore and 2 590 000 t (2,850,000 st) of lead ore. The deepest mine level currently is 960 m below the surface. GENERAL ORE BODY REQUIREMENTS AND LIMITATIONS Size, Shape, and Dip The mine is located in the valley of the Leichhardt River in Lower Proterozoic sediments of the Mount Isa group. The regional strike of the sediments is north¬south and they have a persistent westerly dip of about 1.1 rad (65°). In the mine area, the Mount Isa group comprises a sequence of alternating bands of dolomitic shales and siltstones some 3.2 km (2 miles) in width. It is bounded on the east by greenstones and quartzose sediments of the Eastern Creek volcanics, and on the west by the Mount Isa fault, west of which occur schists and other metamorphic rocks. The ore bodies as currently known at Mount Isa are restricted to the Urquhart shale, a formation of thinly bedded pyritic, dolomitic, and volcanic shales some 1070 m (3500 ft) thick. Towards the top of the Mount Isa group sediments, copper and silver-lead-zinc ore bod¬ies occur as contiguous but discrete entities and are mined and treated separately (see Figs. I and 2). Argentiferous galena, sphalerite, pyrite, and minor associated sulfides occur in distinct concordant bands throughout the Urquhart shales. Wherever these bands are grouped together in sufficient density they constitute silver-lead-zinc ore bodies with widths varying up to 36.6 m (120 ft). Other mineralized bands are common in intervening beds. Individual ore bodies persist for many hundreds of meters concordant with the strike and dip of the enclosing shales. Intersections of these beds with fold axes provide local zones of enrichment but otherwise the mineral content of the ore bodies varies only slightly throughout the extent of the dip and strike. Chalcopyrite is the only important primary copper mineral. It occurs in association with pyrite and pyrrhotite as disseminated flocks and as vein fillings throughout irregularly shaped zones of folded, brecciated, and re¬crystallized Urquhart shale. These zones, which are lo¬cally termed "silica-dolomite" bodies, are broadly transgressive to the shale bedding and confine all significant copper mineralization to the virtual exclusion of silver¬lead-zinc mineralization. In some areas, the downward percolation of acidic water through faults and shears has caused extensive leaching of the coarse-grained carbon¬ates to depths in excess of 610 m (2000 ft), but most of the silica-dolomite remains unleached and the ground is competent. The majority of lead ore being mined is north of the main shaft pillar (R62, U62) area. The major lead¬producing areas for many years have been the Black Star ore bodies (2 and 5 ore bodies) and the Racecourse ore

Jan 1, 1982

By Keith E. Dyas, John Nelson, Ronald T. Johnson

GENERAL DESCRIPTION The Bruce mine of Cyprus Mines Corp. is located in Bagdad, AZ. The mining method used is open cut-and-fill. Of the annual production of 81 647 t (90,000 st), approximately 83% is taken from load-haul-dump (LHD) stopes and the balance from slusher stopes. All ore is produced from the area between the 1250 level and the 2300 level. The average travel time from the shaft pocket to the stope is approximately 5 min. GENERAL ORE BODY REQUIREMENTS AND LIMITATIONS Size, Shape, and Dip The Bruce ore body occurs in quartz-sericite schist with Dick rhyolite on the footwall and andesite on the hanging wall. Diabase dikes are found in the hanging wall; there is also a dike coming off the footwall and crosscutting the ore body. All of the rock types are of the Precambrian Yavapai series and have been subjected to regional metamorphism. A composite of the ore body is given in Fig. 1. The deposit is of massive sulfides occurring as a steeply dipping replacement body. On the upper levels the ore is veinlike with widths from 0.6 to 4.6 m (2 to 15 ft), dipping at 1.4 to 1.5 rad (80° to 85°). On the lower levels the ore is dipping from I to 1.2 rad (60° to 70°) with widths from 3 to 16.8 m (10 to 55 ft). The strike length varies between 107 to 183 m (350 to 600 ft). The rhyolite footwall generally has a knife-edge contact with the massive sulfides. The exceptions to this are the upper levels where there is a 1.5 to 3 m (5 to 10 ft) band of silicified sericite schist between the sulfides and the rhyolite. In the southern part of the ore body the hanging wall is tuffaceous andesite and andesite. In this area the contact is generally sharp and easy to follow. However, to the north there is a large chlorite schist zone that crosscuts the bedding and comes in contact with the massive sulfides. This is apparently due to hydrothermal alteration of the andesite. The chlorite schist is highly mineralized with chalcopyrite and pyrite and quite often forms economic pockets of ore. In the massive sulfides the chief ore minerals are sphalerite and chalcopyrite. Pyrite is the predominant sulfide with considerable pyrrhotite throughout. Bright arsenopyrite ouhedrons in fine grain massive sulfides are quite common. Occasionally small amounts of galena are seen, usually near the foot or hanging wall contacts. On rare occasions tennanite is associated with massive arsenopyrite. Minor amounts of quartz, calcite, and un¬replaced remnants of sericite schist occur, but essentially pyrite is the gangue in which the ore minerals occur. The ore values are in excess of 3.5% copper and 12.5% zinc with some silver and rare gold as byproducts. Ground Conditions The massive sulfides are generally self-supporting. One exception is in the 1850 stope where the ore body is 9 to 11 m (30 to 55 ft) wide and 152 m (500 ft) long. There are flat to shallow dipping slips and seams in the ore, creating extremely blocky ground. For support, old 25.4-mm (1-in.) hoist ropes were installed tensioned to 27 t (30 st), and then cement grouted over the entire length in longholes [14 to 15 in (40 to 50 ft) in length) drilled on 3-m (10-ft) centers from the level above. This has tied the formation together very successfully and virtually eliminated the blocky ground condition. Both the hanging wall and footwall are quite shaley in some areas. Reasons for Adopting Trackless Open Cut-and-Fill Methods First, any method other than open cut-and-fill would have caused too much dilution. The use of rubber-tired mining equipment in the pro¬duction stopes requires a footwall ramp. The inclines in ore will be mined out, so this ramp in the footwall will provide access to and from the stopes (Fig. 2). This incline is very expensive, but necessary to convert existing stopes to LHD mining. 'The final cost of ore mined by the LHD machines has not been determined. As of 1972, tons per manshift in the 2150 stope-the only one to complete a full cut-had increased from 7.58 t (8.36 st) to 12.83 t (14.14

Jan 1, 1982

By G. Almgren

With the exception of sublevel caving, the most common method of underground mining in Sweden is the "cut-and-fill" method. It is normally used for mining non-ferrous metals , and' is used extensively in the complex sulfide ore mines of the Boliden Company in north and central Sweden as well as the mines of the STORA and Vieille Montagne Companies in central Sweden. All in all, the cut-and-fill method is used in 13 of Sweden's 45 mines. As the mines are relatively small, the volume of ore mined by this method represents only about 5 % of the total ore production in Sweden. The commercial value, however, is much large than this percentage would imply. The production volumes and grades of some typical mines are shown in Table I. As seen, when rated internationally, the grades are comparatively low. The prices are set according to ?international metal prices? as dictated by the London stock exchange, and in lieu of governmental support, rational management methods are critical in order to achieve satisfactory profit.

Jan 1, 1975

By G. Almgren

Swedish cut-and-fill mines are described with regard to location, production volumes, and grades. Development goals (such as higher productivity and better working conditions) are presented, and different methods of development, such as mechanization, new layouts, etc., are discussed. Development methods are described with examples from drilling, loading, haulage, and rock mechanics. Special attention is paid to filling techniques. Figures are given for productivity and relative costs.

Jan 1, 1977

By Joel K. Waterland

GENERAL DESCRIPTION Open cut-and-fill stoping for many years was prob¬ably the most widely used mining method in under¬ground metal mines. Then for a time this method was largely supplanted by the blasthole stope. It again be¬came popular as many mines reached depths or grades where methods requiring large open voids to remain open for extended periods of time became unsuccessful, often as a result of excessive dilution. The open cut-and-fill method is very flexible and is readily adaptable to almost any ore body. The standard application requires that a slice of ore usually 2.4 to 3 m (8 to 10 ft) thick be removed from the back of the stope, and as the ore is taken down, the back is dressed and rockbolted. After the back is secured, the broken rock is removed through rock passes to the level below. When the rock has been removed, the rock passes are extended upward the height of the ore removed, the stope is backfilled, and another cycle is mined. This method is best employed in plunging ore bod¬ies with considerable vertical extent, ore areas that re¬quire selective mining, ore areas where weak wall con¬ditions exist, and ore bodies that have an ore value that will carry this relatively expensive mining method. Blast¬hole stoping, shrinkage stoping, and other mining meth¬ods that do not employ rock passes in a stope are not efficient in plunging or flatly dipping ore bodies because the footwall makes ore removal quite difficult. Since mining is accomplished by taking down slices of the back, only small areas of the wall rock are exposed at any one time, and these only for short periods. Due to limited back height, areas of uneconomic rock may be left in place, or they may be mined and the material gobbed in the stope. Because the miners in the stope must work under freshly blasted areas, the amount of ground control is usually great. The volume of rock that is broken during one section of mining is relatively small and the amount of nonproductive work required is high. This results in limited productivity for the scope and, be¬cause of the nonproductive work that must be done on a regular basis, the production from the stope may be quite cyclical. SUITABLE ORE BODIES The open cut-and-fill method may be adapted to al¬most any type of ore body with a relatively high vertical extent. The ore body must be accessible at both top and bottom as well as at regular intervals throughout its vertical extent. Although adaptable to most ore bodies, the method is probably best employed where the ore has poor con¬tinuity and where most types of bulk mining would pro¬duce excessive dilution. In areas of poor ore continuity, the capability of continuous and extensive sampling dur¬ing the mining of each cycle makes this method very desirable. This capability also minimizes the amount of evaluation sampling that must be done before mining is started. Because of the extractive system used, the size and shape of the stope may be as readily changed as the sampling mandates. Probably the only ore characteristic demanded is that the ore has strength enough to be sup¬ported through the use of rockbolts or cable bolts dur¬ing the mining and backfilling cycles. Good planning, systematic sampling, and careful supervision will pro¬duce a product with less dilution than any other open stoping method. PLANNING Evaluation Planning Once it has been decided that the open cut-and-fill method would be the most efficient for mining a par¬ticular ore body, the next considerations would probably be the availability of an economical backfill material and the selection of an efficient transport system for this material. Although hydraulically transported mill tail¬ings are the most widely used product, this is not always practical due to mill location or the quality of the tailings. In such cases, backfilling may be used. The type of backfill and the type of equipment used will determine if a floor or capping on the backfill is required to minimize dilution during ore removal. The early selection of rock removal equipment is im¬portant since equipment usually determines the amount of development work required to bring a stope into pro¬duction and the size of the openings needed. The size and continuity of the ore body will usually determine the type of loading equipment. The use of slushers or load¬haul-dump (LHD) equipment captive in the stopes will minimize the amount of development. If the ore con¬tinuity is such that a ramp system for extraction can be used, the cost of development will be increased but the flexibility of continuous mining will minimize the cycli¬cal nature of the production. The height of the mining section usually is deter¬mined by the strength of the wall rock and the amount of back bolting required. Once this has been decided, the appropriate drilling equipment can be chosen. The number and sizes of the rock passes employed depends upon the type and size of the extractive equipment and the type of backfill that is to be used. Since the miners must enter and leave the stope each shift, the level inter¬val is usually maintained at approximately 45 m (150 ft). Access from the level above into the stope must be main¬tained at all times. The employees perform all the work in the stope and adequate ventilation must be provided. Stope Planning Due to the flexibility of the method and the vari¬ability of the ore zones, layout is usually done on a stope basis. In areas where continuity is a problem, the size of the stope is usually determined by the boundary of the ore (with all of the ore within that boundary being removed). In areas of good continuity where ramps are to be used, the length of the stope may be determined by the length of time each of the cycles (preparation, back¬fill, mining, and ore extraction) requires. The ramp work is then laid out so that access to the various parts

Jan 1, 1982

By Raimo Matikainen, Pekka Särkkä

HISTORY The history of mining in the Outokumpu Co. shows continuous development of small and medium-sized mines, coupled with a permanent improvement in min¬ing methods and mechanization. Tables 1 and 2 provide a brief outline of the major events over the years of operation. Some of the mines have had relatively short lives as in the case of Nivala, Korsnas, Kylmäkoski, the surface pits of the Kotalahti, Vuonos, and Hammaslahti mines, and some very small pits. The sequence in which the mines started opera¬tions is shown in Table 1 and production increases in Table 2. GEOLOGICAL FRAMEWORK Most of the ore deposits in Finland (see Fig. 1) are situated in middle Precambrian (1500 to 2300 m.y.) formations corresponding to the Baltic shield. The ores and country rocks are generally firm, with a minimum compressive strength of 60 MPa (8700 psi). The sulfide ores, of importance to the national econ¬omy, can be divided into copper-nickel deposits, asso¬ciated with basic and ultrabasic rocks (1900 m.y.), and the sulfide ores found in well-preserved Svecokarelidic crystalline schists (1800 to 2300 m.y.) which contain varying amounts of copper, zinc, cobalt, nickel, and lead. Over 90% of the sulfide ore mined to date in Fin¬land and existing in the known ore reserves belongs to deposits situated in the main sulfide ore belt. This belt extends diagonally across the country over a breadth of Table 1. Sequence in Which Mines Began Operations 1913 Mining started at the Outokumpu mine (now called Keretti) 1928 Large scale systematic exploitation started in the Outokumpu mine Opening of mines: 1942 Nivala mine (1942-54) 1943 Yiojärvi mine (1943-66) 1947 Orijärvi mine (1947-54) (Mining started in 1757) 1948 Aijala mine (1949-58) 1952 Metsämonttu mine (1952-58 and 1964-74) 1954 Keretti's new mine plant 1954 Vihanti mine 1959 Kotalahti mine 1961 Korsnäs mine (1961-1972) 1962 Pyhäsalmi mine 1966 Virtasalmi mine 1967 Kemi mine 1970 Hitura mine 1971 Kylmäkoski mine (1971-74) 1972 Vuonos mine 1973 Hammaslahti mine 1978 Vammala mine Table 2. Ore Production of the Outokumpu Oy Mines Year 1000 t of Ore 1913-1928 252 1929-1954 13 075 1955 1 105 1960 1 784 1965 2 627 1970 3 269 1975 5 825 1976 5445 1977 4 939 1978 5 766 1979 5905 40 to 150 km, from Lake Ladoga to the coast of the Gulf of Bothnia. The main sulfide ore belt includes the Outokumpu copper-zinc, the Kotalahti nickel-copper, the Pyhäsalmi copper-zinc, and the Vihanti zinc ore zones. The Outokumpu ore district occurs in a mica schist area about 60 x 100 km, in association with belts of metamorphic Svecokarelidic quartzites, black schists, dolomites, skarn rocks, and serpentinites. The main ore minerals are chalcopyrite, pyrrhotite, pyrite, and sphalerite. In addition there are nickel and cobalt minerals such as cubanite and cobalt-pentlandite, which have been of economic importance. In this area, Outokumpu Oy exploits the deposits at Keretti and Vuonos. The latter was discovered as an extension of the Keretti ore field about 6 km to the northeast. The Kotalahti geological formation extends across nearly 400 km. The host rock of these mostly pipelike deposits is generally serpentinite, pyroxenite, or norite. The main ore minerals are pyrrhotite, pentlandite, and chalcopyrite. In this zone, the deposits of Kotalahti, Hitura, and Virtasalmi are at present under exploitation by Outokumpu Oy. The Vihanti geological formation is located in west¬ern Finland and is about 40 km wide and some 200 km long. The rock associations are crystalline schists including dolomites, mica schists, mica gneisses, gray¬wacke, and acidic or basic volcanic rocks, which change generally, in connection with the mineralization, into skarn and cordierite-anthophyllite rocks. The host rocks are dolomite, skarn, graywacke, and quartzitic rock and the principal minerals are sphalerite, chalcopyrite, galena, pyrite, and pyrrhotite. The accessory minerals are mainly cubanite, arsenopyrite, molybdenite, and native gold and silver. The two largest ore bodies being exploited at pres¬ent by Outokumpu Oy are the Vihanti mine, which pro¬duces zinc, lead, and copper, and Pyhäsalmi, which con¬tains copper and zinc. Deviating from the sulfide ore types described earlier is the Hammaslahti copper ore located in the southeast-

Jan 1, 1982

By Staff

GENERAL DESCRIPTION The Lucky Friday mine is located in Mullan, Sho-¬shone County, Idaho. The mining method is horizontal slice cut-and-fill (with timbering for support or un¬timbered) using hydraulic sand. Cemented sand fill at a 1:17 ratio is used in sill pours and at a 1:7 ratio for the final 152 mm (6 in.) capping in successive stope floor pours. Annual production with 100% cut-and-fill mining is 167 829 t (185,000 st). The average depth of mining is 1296 m (4250 ft) and the average travel time to the stope is 45 min. GENERAL ORE BODY REQUIREMENTS AND LIMITATIONS Size The ore body is 396 to 488 m (1300 to 1600 ft) long on strike, 1421 m (4660 ft) on dip, with an average width of 2.3 m (7.5 ft). Dip varies from vertical to1.2 rad (70°) Ground Conditions, Ore Value, and Production Requirements The ore body contains quite strong argentiferous galena and quartz. The hanging wall and footwall are strongly sheared and fractured. Ore value is $211/t ($192/st).

Jan 1, 1982

By Gordon Miner

GENERAL DESCRIPTION At the Star mine, Hecla Mining Co., located in Burke, Shoshone County, ID, the mining method is horizontal slicing (timbered or untimbered) cut-and-fill using hydraulic sand backfill. Back stoping as well as breast stoping is used; see Fig. 1. The annual produc¬tion from all cut-and-fill mining is 259 816 t (286,400 st). The average depth ranges from 366 to 2408 m (1200 to 7900 ft). A majority of the tonnage comes from an average depth of 2240 m (7350 ft). Average travel time to the stope is 1 hr. GENERAL ORE BODY REQUIREMENTS AND LIMITATIONS Size and Ground Conditions The ore body is 610 to 1219 m (2000 to 4000 ft) along the strike and 2408 m (7900 ft) on the dip, with an average vein width of 2.6 m (8.5 ft). The dip is essentially vertical. The ore body is heavily sheared and broken on the main fault structures; it is more competent on the wall veins but everywhere subject to rock bursting at depth. The hanging and footwalls are strongly fractured on the main fault structures, again more competent but still fractured on the wall veins. All host rock is Revett quartzite. Value and Production Requirements The ore value is $56 per ton. Production require¬ments are 1089 t/ d (1200 stpd), five days per week. Why Cut-and-Fill? The slusher extraction method is the most satisfac¬tory and practical for narrow vertical veins with sheared walls. The method must be quite selective to be com¬mercial. The veins are too narrow for rubber-tired ex¬traction and the grade is not high enough to make resuing practical. DETAILED DESCRIPTION Development Access to the main shaft is by the 3.2-km (2-mile) main haulage tunnel. The level intervals in the vertical timbered shafts are 61 m (200 ft). Vein development is by crosscut and laterals located 30.5 m (100 ft) into the vein wall. Vein crosscuts are on ±61 m (200 ft) centers. Access to the vein is by raises carried up with the stope. The raises are equipped with four wood¬cribbed chutes (two orepasses reinforced with angle irons, one manway, and one timber slide, Figs. 2-6). The initial cut is located 6.7 m (22 ft) above the main level (Fig. 1). Stoping Cycle Detail Sampling: Grab samples are taken from the mine cars. Channel sampling of the faces and backs is done when necessary. Drilling: For stope drilling, Ingersoll-Rand 300M percussion drills are used, with Ingersoll-Rand 300M and Gardner-Denver RB83M stopers, used for back stoping. Breasting down is done with Gardner-Denver S83FM jacklegs. The back stoping rounds are 0.9 to 1.8 m (3 to 6 ft) and the breast stoping rounds 1.5 to 3m (5 to 10 ft). Blasting: For stope blasting DuPont Tovex 100 watergel with fuses and igniter cord is used primarily. Approximately 60% of the blasting is done with am¬monium nitrate-fuel oil (ANFO). For development headings and shaft sinking, DuPont Drivex watergel with Ensign Bickford Nonel Primadet primers is is used. Mucking: Broken ore is removed entirely by slusher in the stopes. These are mostly 3.7-7.5-kW (5-10-hp) Ingersoll-Rand air-powered or 7.5-37.3-kW (10-50-hp) Ingersoll-Rand electric-powered. In the horizontal de¬velopment headings Eimco 12B and 21 and Atlas Copco LM-56 overshot mucking machines and a 0.76 (1 cu yd) hydroelectric Wagner HST-1 LHD (load-haul-dump) unit are used. Rockway for Extraction: The cribbed chutes (Fig. 7) are nearly vertical and hexagonal in shape and are made of spaced 152 x 203-mm (6 x 8-in.) timber, reinforced with varying weights and sizes of angle iron, depending on wear requirements. Rectangular cribbed chutes are used where ground pressure is not a problem. Cribbing is added in 2.4 or 3-m (8 or 10-ft) extensions accord¬ing to the floor height (whether timbered or untimbered). See Figs. 8 and 9. Backfilling: Backfilling is done with hydraulic sand consisting of classified mill tailings at 65% solids. The fill contains approximately 20% 325-mesh fines. The tailings are pumped 3353 m (11,000 ft) at 50-55% solids 22.7 dry t/h (25 dry stph) with a duplex piston pump. Cycloning increases the tailings density to 65% solids. Fill storage is in a 998-dry-t (1100 dry st) agi

Jan 1, 1982

By H. T. John

"The objective of this paper is to demonstrate how the optimum cut -off grade can be calculated for typical large tonnage openpit mines. In the examples, it is assumed that the concentrator tonnage is fixed and that there are no market restrictions. The mining rate is assumed to be variable. This is usually the situation at an operating property.ModellingA model of the ore body is required to examine alternate cutoff grade strategies. The model must be accurate in its relationship between grade and tonnage. Table I shows a typical relationship between ore tons and grade for various cut-off grades. The average strip ratio is also shown. For higher cutoff grades, the ore tonnage is decreased and the ore grade is increased. Strip ratio increases with the cut-off grade.Using the relationship between ton s and grade, and assuming a homogenous, long life orebody, a simple calculation of the optimum cut-o ff grade can be made. The objective is to maximize the present value of cash flows. For the long life homogenous orebody example this objective is satisfied by maximizing present cash flows.Cash flow is calculated by subtracting operating cost from revenue . Operating cost will increase with the cut -off grade as the strip ratio increases."

Jan 1, 1985

Work undertaken in the field of cut-off grade optimization has not advanced much beyond the work undertaken by Lane in 1988. His definitive work is based on the calculus of the Net Present Value criterion which is the most widely understood, consistent, and appropriate method by which sequential cash flows arising from the extraction of mineral reserves from an exhaustible resource can be represented. Although the mathematics is not complex Lane’s method is not a widely appreciated or applied approach to maximizing the value of a mining operation through selection and balancing of operational cut-off grades. Three stages in a mining operation namely, mining, processing and marketing were defined by Lane and the economics of each stage are identified and isolated to provide an optimum cut-off for each stage. Points of intersection along the present value curves for each stage of a mining operation are used to identify balancing cut-off grades at points where the capacity of the mining, processing and marketing stages is fully utilized and the Net Present Value of the operation is optimized. Data that simulate a small, deep-level Witwatersrand-type gold mine with an average grade of 6 g/t Au and a logrithmic variance of 1.2,are applied to the model to illustrate the benefits of representing cut-off grades in terms of present value curves for different segments of a mining operation. Keywords: Cut-off grade, Net Present Value, grade-tonnage curve, balancing cut-off grade, mining, processing, marketing.

Jan 1, 2003

By M W. N Buxton, M T. Bootsma, J Benndorf, C Alford

Research in the field of cut-off grade optimisation has shown a relationship between cut-off grade, project life and net present value (NPV). 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 per cent 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.CITATION:Bootsma, M T, Alford, C, Benndorf, J and Buxton, M W N, 2014. Cut-off grade-based sublevel stope mine optimisation – introduction and evaluation of an optimisation approach and method for grade risk quantification, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 281–290 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By Michel Dagbert

"This paper illustrates the different ways grade-tonnage curves can be generated f or a mineral deposit. It emphasizes systematic discrepancies between reality, estimates and actual production according to different estimation methods and grade control programs. It does not offer a universal solution to the prediction of grade-tonnage curves. Hopefully, it will inspire caution to mineral economists who use estimated grade and tonnage data in the establishment of an optimum cut-off grade for a mining operation.IntroductionThe value of a mineral development venture often depends on a grade-tonnage curve. Statistics can help. The idea is to divide mentally the orebody into small blocks called selective mining units or SMUs. A SMU is an idealized version of the quantity of rock the grade of which will be tested against the cut-off at the time of mining. It could be as small as a truck load or a shovel load in very selective operations like some uranium mines where radiometric probing of each truck or car is performed. More typically, in an open pit operation, it will be the smallest zone flagged as ore from blast hole data, e.g. a 5 m by 5 m by 10m block, if blast holes are on a 5 m grid and bench height is 10m. Having defined the SMUs, the grade-tonnage curve determination amounts to evaluating the grade distribution of all the SMUs that can be mined in the depo sit. If we know this distribution we simply apply the cut-off to it and we get the number of SMUs above the cut-off (i.e. ore tonnage) and their average grade. .Assessment of the grade distribution of SMUs from exploration drill hole data is not an easy exercise and much has been published on the subject (David, 1972; Marechal , 1972; Huijbregts, 1975; Marechal, 1975; Guibal and Touffait, 1982). In this paper, we use a gold mine example to illustrate the influence of SMU size on the results. With the same example we also show that ""common-sense"" methods of grade-tonnage curve determination can sometimes be misleading."

Jan 1, 1987

By Wolfgang G. Brunner

A 3800 m long temporary water-retaining dike has been constructed under extreme conditions in the harsh northern climate to enable two of the kimberiite pipes at the Diavik Diamond Project reserve to be mined using open pits. The Diavik Diamond Project is located on East Island at Lac de Gras in Canada's Northwest Territories, approximately 200 kilometres south of the Arctic Circle. The dike which has been constructed in up to 25 m deep water from crushed granite quarried from the site projects into Lac de Gras encircles the first two of the kimberiite pipes to be mined. An 800 mm wide diaphragm cut­off wall constructed of bentonite, cement and crushed rock, totalling 33,000 m2, and a two-phase jet grouted curtain wail at its base, totalling 8,400 m2, have been installed through the dike and underlying till foundation into bedrock. The cut-off is designed to minimise water seepage from Lac de Gras through the dike. In order to ensure that the dike had adequate internal stability and diaphragm wall construction could proceed safely, the crushed rock fill material dumped into the lake was first compacted by TR 75 deep vibrators. In 2000, Bauer Maschinen GmbH of Schrobenhausen, Germany were awarded the contract for the supply of all specialist foundation equipment required on site and for providing technical support to the Canadian main contractor Lac-de-Gras-Construction throughout the construction of the cut-off walls during 2001 and 2002. Installation of the cut-off walls was completed in July 2002, three weeks ahead of schedule, and dewatering of the inner dike areas commenced just 5 days later and has continued throughout August and September. After completion of extensive testing of the diamond recovery plant, the mine is scheduled to go into full open pit production in February 2003.

Jan 1, 2003

By I. D. Dayal, Anil Kumar Jain

"Cutoff walls are frequently used to slow down or prevent seepage of water through and/or around dams. Cutoff wall is a type of seepage barrier structure designed to reduce the flow of water underneath temporary or main dam. There are number of techniques for the construction of cutoff walls including concrete, Jet grouting and permeation grouting. NHPC LTD, a premier Govt. of India undertaking has been instrumental in the hydropower development within the country & in nearby countries like Nepal & Bhutan since last four decades. NHPC LTD has completed more than 20 hydro-electric projects with total installed capacity of 6587MW (including capacity addition by JV- NHDC). In all these projects, different types of dams and spillways were constructed in not so benign to extreme challenging geological set up. There has always been challenge associated with the temporary diversion works. The project sites sometimes incur huge river bed excavations in case of concrete gravity dam founded on rock foundation at large depth. The challenges for minimizing the seepage have been well taken care by constructing the dedicated seepage barriers. The construction of cut-off walls have progressed from “conventional continuous trench backfilled with conventional concrete or plastic concrete” to “grout curtain”, to “jet grouting” to the “concrete cut-off wall” , the last being the most sophisticated & credible seepage barrier.The efficiency of the cut-off walls are monitored by the seepage quantity observed (reduction of the seepage flow), uplift pressures or exit gradients after construction of cut-off walls. For construction of the main concrete dam, required space is created by the river bed excavation for placing the dam foundation on sound rock. Sometimes there is deep river bed excavation from 30 to 40 m depth or even more as per the available rock profile. Temporary coffer dams are constructed for diverting the river flow through diversion tunnels / channels etc. In deep river bed excavation; there are high chances of the significant seepage through the coffer dam foundation / river bed material due to high hydraulic gradients. Seepage and piping are the main causes of the failure / damage of the temporary coffer dams. If the seepage quantity is too high, then it becomes difficult to handle it by dewatering in the dam pit. Dam concrete is required to be placed unhindered to have a monolithic construction of dam blocks & to have faster construction in the working season. Cut-off walls increase the seepage path considerably thus reducing the exit gradient and further reduction of the seepage thus helping in maintaining the seepage free area for working."

Jan 1, 2016

By William Bookshar

The development of increasingly more sophisticated and powerful retreat longwall equipment has led to ever wider and longer panels. To maximize gateroad development efficiency, provide for effective face recovery, andlor reduce ventilation pressures, entries are cut across longwall panels in advance of longwall retreat mining. These entries must be supported to prevent falls of immediate roof in advance of the face. Recently, cut through entries and predriven recovery room entries have been supported with various combinations of roof bolts and passive support. The cost and relative success of these support systems has varied considerably. Eighty-Four Mining Company, Fosroc, and Sub-Technical have developed and implemented an efficient, yielding, multiple component, cement crib to support longwall panel cut through entries and pre-driven recovery rooms. The cutable crib consists of an inexpensive flyash cement pillar poured in a bag, within a temporary metal form. The form is moved to a subsequent cutable crib location after the initial hardening of the flyash pillar. The remaining entry height between the mine roof and the top of the flyash cement pillar is filled with a specially designed bag filled with Fosroc's Tekset cement formulation. The diameter of the pillar and thickness of the Tekset bag are designed to accommodate the anticipated front abutment loading and entry convergence.

Jan 1, 1998

By R. D. Kelsey

The theory, definition and practical application of cutoff grades have evolved over a long period. This evolution is reflected in the continuing flow of papers on this and other related matters though the rate has varied as new ideas and theories have become understood and applied in practice. Papers by Lane(l) in 1964 and Taylor(-2)- in 1972 provided landmarks in the understanding and general communication of cutoff grade theory and its application. The reasons for the continuing interest in cutoff grades are obvious. Too high a cutoff can reduce the mineral recovered and possibly the life of a deposit. Too low a cutoff would reduce the average grade (and hence profit) below acceptable levels. This paper provides a brief overview of existing cutoff grade theory and some particular aspects of its application.

Jan 1, 1979

By Kadri Dagdelen

The definition and shortcomings of traditional cutoff grades are discussed. . The concept of optimum cutoff grade policy which maximizes the Net Present Value (NPV) of annual cash flows coming from a mining project is introduced within the basic framework outlined by K. F. Lane. Several examples are used to demonstrate the shortfalls of cutoff grade policies obtained by various heuristic optimization techniques. An algorithm to obtain an optimum cutoff grade policy which maximizes the NPV of a project is given and described in detail.

Jan 1, 1992

By K. Dagdelen

The definition and shortcomings of traditional cutoff grades are discussed. The concept of optimum cutoff grade policy which maximizes the Net Present Value (NPV) of annual cash flows coming from a mining project is introduced within the basic framework outlined by K. F. Lane. Several examples are used to demonstrate the shortfalls of cutoff grade policies obtained by various heuristic optimization techniques. An algorithm to obtain an optimum cutoff grade policy which maximizes the NPV of a project is given and described in detail.

Jan 1, 1993

By J. M. Marek

The determination of the proper cutoff grade for an open pit metal mine is based on economic criteria and the operating philosophy of the mining company. Previous papers have dealt with the balance of a fixed mine production capacity versus economic return. Mine production capacity is often controlled by the amount of mining equipment and the working area in the pit. A complete cutoff grade strategy is a balance of economic return of mining higher grade material versus the capital costs of additional production capacity and the operating cost of moving the waste and low grade material to assure proper ore release. An approach to the problem is presented which is based in part on work by previous authors and provides guidelines to proper cutoff grade strategy encompassing the time value of money and variable commodity prices.

Jan 1, 1985