Dilution and Ore Loss Projections: Strategies and Considerations

"One critical factor in mineral reserves reporting, as well as mine-reserves reconciliation, is the impact of dilution and ore loss in the mining process. This paper considers the implications of various factors on dilution and ore loss projections, by orebody geometry, mining method, and ore control systems. We also discuss the implications of resource estimation methodology on dilution for reserves. DEFINITIONS Dilution and ore loss are two critical concepts in mining, which address the differences encountered between modeled grade and tonnages and actual production. Dilution is volume increase and grade reduction caused by multiple factors, chief among which are mining of waste material along ore-waste contacts, mining of internal waste as ore, and misclassification of waste as ore in the ore control process. There are also geostatistical and estimation aspects sometimes lumped with dilution, including the volume-variance effect (the tendency for small volumes of material to include a less regular distribution of grade than large volumes of material). Ore loss is described as reductions of ore volumes in the mining process due to misclassification of ore as waste in the ore control process, exclusion of discontinuous mineralization from mining due to geometry or continuity, and mechanical losses in the mining process. Dilution is typically taken as an increase in tonnes of ore with no change in contained metal (and thus results in a reduction in grade.) (Some workers consider the likely grade of the diluting material as well, particularly in deposits with gradational grade boundaries—this will be addressed later in the text.) Ore loss is typically taken as a reduction in tonnes at average grade of the ore, and thus results in a reduction in both tonnes and contained metal. If model (resource) tonnes are Mt, grade is Mg, and contained metal is Mm, the resource with ore loss (L) and dilution (D) included (Rt, Rg, and Rm) will be:"