Design Risk Management at Mt Leyshon Gold Mine

The Mt Leyshon Gold Mine is located 30 kilometres south of Charters Towers in Northern Queensland. The current open cut mine has been in operation since 1986. In 1992 a feasibility study was completed that recommended an increase in production to over 240 000 ounces of gold per year. This proposal required an upgrade of the processing plant to five million tonnes per year, and an enlarged mining fleet to provide additional ore, and to meet the increased waste removal requirements. The implementation of the mine expansion program during 1993 required the Life of Mine plan to be extensively revised. This required the assessment and management of potential risks associated with the mine design. The updated geological model using the 1992 drilling results along with the actual contract mining and processing costs were used to establish a series of nested optimised pit shells. The total and incremental quantities and costs were then analysed to determine a suitable pit perimeter. The pit and phase plans were then created and used to devise a staged development plan. The block layout plans for each bench were then established from which a detailed life of mine production schedule was created.