Deposit Evaluation Techniques OCTOBER 09 Insert your Company Logo - PowerPoint PPT Presentation

Keith Whitchurch, Pt SMG Consultants Deposit Evaluation Techniques OCTOBER 09

Insert your Company Logo here What questions are being asked? • What sort of deposits is it? • Simple • Complex • Single seam • Multi seam obvious base • Multi seam no obvious base OCTOBER 09

Insert your Company Logo here What questions are being asked? • How big is the reserve? • How should it be mined? • What order should it be mined in? • HOW DO I MAKE THE MOST MONEY? OCTOBER 09

Insert your Company Logo here Deposit Evaluation Techniques • Strip Ratio • Cash Margin Ranking • Lerch Grossman Pit Optimiser • Next Generation Technologies OCTOBER 09

Insert your Company Logo here Simple Example Deposit OB Depth 30m OB Depth 60m OB Depth 30m Coal Thickness 5m Coal Thickness 5m Coal Thickness 5m Coal Ash 2% Coal Ash 2% Coal Ash 15% Coal Density 1.30 T/bcm Coal Density 1.30 T/bcm Coal Density 1.40 T/bcm Coal Energy 5600Kcal Coal Energy 5600kcal Coal Energy 4600kcal OCTOBER 09

Insert your Strip Ratio Company Logo here  _ Overburden Volume  _ Strip Ratio  ( _ * _ ) Coal Volume Coal Density OB Depth 30m OB Depth 30m OB Depth 60m Coal Thickness 5m Coal Thickness 5m Coal Thickness 5m Coal Ash 2% Coal Ash 15% Coal Ash 2% Coal Density 1.30 T/bcm Coal Density 1.35 T/bcm Coal Density 1.30 T/bcm Strip Ratio = 30/(5*1.30) Strip Ratio = 30/(5*1.40) Strip Ratio = 60/(5*1.30) = 4.6bcm/t = 4.3bcm/t = 9.2bcm/t OCTOBER 09

Insert your Company Logo Strip Ratio here • Easy but very simplistic • No Account of Coal Quality • No account of costs • No Account of Revenue • Complex in multi Seam Steep Dip • Difficult to account for Pit Batters OCTOBER 09

Insert your Company Logo Cash Margin Ranking here • Cash Margin = Revenue - Costs • Accounts for complexity of variables (e.g. additional trucks with depth; variations in quality) • In our example • Sale Value for 5600 kcal coal = $US16 • Sale Value for 4600 kcal Coal = $US10 • Waste Mining Cost $1.50/bcm • Coal Mining including overheads $2.50/t OCTOBER 09

Insert your Simple Example Deposit Company Logo here       _ arg _ * _ * _ _ Pr _ _ _ _ Cash M in Coal Volume Coal Density Coal Sale ice Coal Mining Cost Waste Mining Cost OB Depth 30m OB Depth 60m OB Depth 30m Coal Thickness 5m Coal Thickness 5m Coal Thickness 5m Coal Ash 2% Coal Ash 2% Coal Ash 10% Coal Density 1.30 T/bcm Coal Density 1.30 T/bcm Coal Density 1.40 T/bcm Coal Energy 5600Kcal Coal Energy 5600kcal Coal Energy 4600kcal Sale Value = 5*1.30*16 Sale Value = 5*1.30*16 Sale Value = 5*1.30*10 = $104 = $104 = $65 Costs = 30 *1.50 + 5*1.30*2.50 Costs = 60 *1.50 + 5*1.30*2.50 Costs = 30 *1.50 + 5*1.30*2.50 = $61.25 = $106.25 = $61.25 Cash Margin = 104 – 61.25 Cash Margin = 104 – 106.25 Cash Margin = 65 – 61.25 = $42.75 = -$2.25 = $3.75 OCTOBER 09

Insert your Company Logo Cash Margin Ranking here • Cash Margin = Revenue - Costs • Accounts for • Complexity of variables • Variations in quality • Variations in Costs • What about complex analysis (base for multi-seam? ; limit of highwalls in steep dip?) OCTOBER 09

Insert your Company Logo Lerch Grossman Pit Optimiser here • Algorithm created in the 1960s • Common in Metals • Used in Complex Coal – Indonesia • KPC • Adaro OCTOBER 09

Insert your Optimisation Theory Company Logo here • Fill deposit with valued 3D blocks. • Costs vary with depth etc • Revenue varies with grade & yield (recovery) etc OCTOBER 09

Insert your Optimisation Theory Company Logo here Simple geology one seam Topography Ore OCTOBER 09

Insert your Optimisation Theory Company Logo here Simple geology Topography Ore Cost $3/block Revenue $20/block OCTOBER 09

Insert your Optimisation Theory Company Logo here Air blocks $0 $0 $0 $0 $0 $0 $0 $0 $0 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 $17 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 $17 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 $17 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 $17 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 $17 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 $17 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 $17 Block profit Waste mining cost = - $3 OCTOBER 09

Insert your Optimisation Theory Company Logo here Step 1: Sum the cells vertically $0 $0 $0 $0 $0 $0 $0 $0 $0 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$6 -$6 $14 -$6 -$6 -$6 -$6 -$6 -$6 -$9 -$9 $11 $11 -$9 -$9 -$9 -$9 -$9 -$12 -$12 $8 $8 $8 -$12 -$12 -$12 -$12 -$15 -$15 $5 $5 $5 $5 -$15 -$15 -$15 -$18 -$18 $2 $2 $2 $2 $2 -$18 -$18 -$21 -$21 -$1 -$1 -$1 -$1 -$1 -$1 -$21 -$24 -$24 -$4 -$4 -$4 -$4 -$4 -$4 -$4 OCTOBER 09

Insert your Optimisation Theory Company Logo here Maximum value vertical pit Value = 14+11+8+5+2=$40 $0 $0 $0 $0 $0 $0 $0 $0 $0 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$6 -$6 $14 -$6 -$6 -$6 -$6 -$6 -$6 -$9 -$9 $11 $11 -$9 -$9 -$9 -$9 -$9 -$12 -$12 $8 $8 $8 -$12 -$12 -$12 -$12 -$15 -$15 $5 $5 $5 $5 -$15 -$15 -$15 -$18 -$18 $2 $2 $2 $2 $2 -$18 -$18 -$21 -$21 -$1 -$1 -$1 -$1 -$1 -$1 -$21 -$24 -$24 -$4 -$4 -$4 -$4 -$4 -$4 -$4 OCTOBER 09

Insert your Optimisation Theory Company Logo here Bigger pit has less value Value = 14+11+8+5+2-1=$39 $0 $0 $0 $0 $0 $0 $0 $0 $0 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$6 -$6 $14 -$6 -$6 -$6 -$6 -$6 -$6 -$9 -$9 $11 $11 -$9 -$9 -$9 -$9 -$9 -$12 -$12 $8 $8 $8 -$12 -$12 -$12 -$12 -$15 -$15 $5 $5 $5 $5 -$15 -$15 -$15 -$18 -$18 $2 $2 $2 $2 $2 -$18 -$18 -$21 -$21 -$1 -$1 -$1 -$1 -$1 -$1 -$21 -$24 -$24 -$4 -$4 -$4 -$4 -$4 -$4 -$4 OCTOBER 09

Insert your Optimisation Theory Company Logo here Smaller pit has less value Value = 14+11+8+5=$38 $0 $0 $0 $0 $0 $0 $0 $0 $0 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$6 -$6 $14 -$6 -$6 -$6 -$6 -$6 -$6 -$9 -$9 $11 $11 -$9 -$9 -$9 -$9 -$9 -$12 -$12 $8 $8 $8 -$12 -$12 -$12 -$12 -$15 -$15 $5 $5 $5 $5 -$15 -$15 -$15 -$18 -$18 $2 $2 $2 $2 $2 -$18 -$18 -$21 -$21 -$1 -$1 -$1 -$1 -$1 -$1 -$21 -$24 -$24 -$4 -$4 -$4 -$4 -$4 -$4 -$4 OCTOBER 09

Insert your Optimisation Theory Company Logo here But pit is not vertical it is inclined. $0 $0 $0 $0 $0 $0 $0 $0 $0 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$6 -$6 $14 -$6 -$6 -$6 -$6 -$6 -$6 -$9 -$9 $11 $11 -$9 -$9 -$9 -$9 -$9 -$12 -$12 $8 $8 $8 -$12 -$12 -$12 -$12 -$15 -$15 $5 $5 $5 $5 -$15 -$15 -$15 -$18 -$18 $2 $2 $2 $2 $2 -$18 -$18 -$21 -$21 -$1 -$1 -$1 -$1 -$1 -$1 -$21 -$24 -$24 -$4 -$4 -$4 -$4 -$4 -$4 -$4 OCTOBER 09

Insert your Optimisation Theory Company Logo here Assume a 45 o slope Value is $-3+14+11-6-3=$13 $0 $0 $0 $0 $0 $0 $0 $0 $0 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$6 -$6 $14 -$6 -$6 -$6 -$6 -$6 -$6 -$9 -$9 $11 $11 -$9 -$9 -$9 -$9 -$9 -$12 -$12 $8 $8 $8 -$12 -$12 -$12 -$12 -$15 -$15 $5 $5 $5 $5 -$15 -$15 -$15 -$18 -$18 $2 $2 $2 $2 $2 -$18 -$18 -$21 -$21 -$1 -$1 -$1 -$1 -$1 -$1 -$21 -$24 -$24 -$4 -$4 -$4 -$4 -$4 -$4 -$4 OCTOBER 09

Insert your Optimisation Theory Company Logo here Assume a 45 o slope Value is $-3 +14 – 3 =$8 $0 $0 $0 $0 $0 $0 $0 $0 $0 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$6 -$6 $14 -$6 -$6 -$6 -$6 -$6 -$6 -$9 -$9 $11 $11 -$9 -$9 -$9 -$9 -$9 -$12 -$12 $8 $8 $8 -$12 -$12 -$12 -$12 -$15 -$15 $5 $5 $5 $5 -$15 -$15 -$15 -$18 -$18 $2 $2 $2 $2 $2 -$18 -$18 -$21 -$21 -$1 -$1 -$1 -$1 -$1 -$1 -$21 -$24 -$24 -$4 -$4 -$4 -$4 -$4 -$4 -$4 OCTOBER 09

Insert your Optimisation Theory Company Logo here Assume a 45 o slope Value is $-3+14+11+8-9-6-3=$12 $0 $0 $0 $0 $0 $0 $0 $0 $0 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$3 -$6 -$6 $14 -$6 -$6 -$6 -$6 -$6 -$6 -$9 -$9 $11 $11 -$9 -$9 -$9 -$9 -$9 -$12 -$12 $8 $8 $8 -$12 -$12 -$12 -$12 -$15 -$15 $5 $5 $5 $5 -$15 -$15 -$15 -$18 -$18 $2 $2 $2 $2 $2 -$18 -$18 -$21 -$21 -$1 -$1 -$1 -$1 -$1 -$1 -$21 -$24 -$24 -$4 -$4 -$4 -$4 -$4 -$4 -$4 OCTOBER 09