Tactical Shut-Off Value Strategies for Panel Cave Mines

The shut-off value for a panel cave mine determines when a draw point will be shut-off and mining will cease from that draw point. Using a shut-off value strategy for a panel cave mine is similar to using a cut-off value strategy for an open-pit mine. This paper will discuss how to choose an appropriate shut-off value strategy that an engineer can use when planning a panel cave mine to increase the net present value (NPV) of the project. Using a shut-off value equal to the mining and processing cost will provide the total mining reserves for a panel cave mine given a specified footprint. When the net present value analysis method is used to compare one design to another then using a shut-off value greater than the mining and processing cost will generate a higher NPV. This strategy will replace the marginal ore at the top of a draw column with higher grade ore at the bottom of newly opened draw points. A draw column is broken material which sits above a draw point and it is mined to a specified height above the draw point. This height is called the height of draw (HOD). Varying the shut-off value over the life of the mine can increase the NPV even further. This strategy would have a high shut-off value during the early stages of a mine and low shut-off value during the later stages. If the shut-off value is too high then too many tonnes would be left behind the draw point and the overall value of the mine will be decreased. Also with a high shut-off value then the production target may not be maintained due to too many draw points closing too soon.