The Break Up of Recoverable Reserves at High Cut-offs

Current low prices for many metals mean that deposits have to be mined at high cut-offs (relative to their mean grade), which means that only a small percentage of mining blocks are above cut-off. Worse, at such high cut-offs, the blocks above cut-off are usually not grouped into convenient clumps for mining; they tend to be split into small isolated patches that are difficult to reach and hence expensive to extract. Companies wishing to acquire mineral properties have to be able to work out quickly what percentage of blocks are above cut-off and what can effectively be mined given the mining method envisaged. Moreover they need this information within a relatively short-time. The work presented here relates to typical South African gold mines (ie tabular orebodies) but the long-term objective is to develop tools for quantifying the impact of reserve breakup at high cut-offs for a wide range of underground mines including those that are not tabular. The mining method and the sampling procedure determine whether ore blocks can effectively be located and extracted economically. This project studied the impact of these two factors on the recoverable reserves for Witwatersrand gold mines. In order to be repeatable, the tests were done on numerical models of the deposit obtained by geostatistical simulations. To ensure realism, the orebody model and the mining scenarios were based on a specific mine. The recoverable reserves (ore tonnage above cut-off, the corresponding metal quantity and the average grade) were calculated for a wide range of cut-offs for four mining scenarios, as well as for the base case of free selection: ò Scenario 1: Blocks are taken if their true grade is above cut-off and if they are accessible from a raiseline (no information effect, no marginal blocks). ò Scenario 2: In addition to the accessible pay blocks, adjoining marginal blocks are taken (no information effect, + marginal blocks). ò Scenario 3: Blocks are taken if their estimated grade is above cut-off and if they are accessible from a raiseline. Here the estimator is the average of the face samples (information effect, no marginal blocks): ò Scenario 4: Accessible pay blocks are taken if their estimated grade is above cut-off. Adjoining marginal blocksare also taken (information effect, + marginal blocks). ò Free selection: All blocks whose true grade is above cut-off are taken irrespective of their accessibility. The results can be presented in different ways, for example by plotting ore tonnage above cut-off versus cut-off grade, or metal tonnage above cut-off versus cut-off grade etc. As expected, this shows the hierarchy between the five scenarios from the free selection base case to scenario No 2 (true accumulations, pay +