1.Pit Optimization

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Cerro Verde Training

Week 1: Jan 16 Jan 20, 2006

Minesight Economic Planner (MSEP)

1. Pit Optimization with MSEP

The old MineSight series of programs for pit optimization called DIPPER series, arebeing replaced by the MS-EP series and additional features have been added. Thenew programs are MSOPIT, MSPTSP, MSPSUF, MSLOPE and MSVALP and include allthe current functions of the DIPPER series and some new ones. The changes include:

A GSF is now used to store the pit designs and the old S & B files are notlonger used. This simplifies the use of the programs. Procedure P60110.dator MineSight file initialization can be used to create a new file which containsstandard items.

MSOPIT reads directly from the block model and creates pit designs using

both FC (floating cone ) and LG ( Lerchs-Grossmann ) methods based uponblock value computed based upon multiple material destinations and multiplemetals..

Complex slopes constraints can be created from the block model and savedin file 13. Up to 4 surfaces, each with the slope defined by block can be used.A new method of handling complex slopes improves the speed. ( FloatingRays )

MSPTSP can be used to assign complex slope data to File 13 from the 3DBMdirectly based upon a block code.

New methods to create a series of pits based upon economics or geometryrules for phase design are included in MSOPIT.

Compass menu file Winexe\metlib\ms-ep.mnu has a Group of Procedures forrunning MSEP programs

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1.1 Special Pit Optimization File 13 (Only has to be done 1 time)

Either Procedure P60110.dat ( Initialize MS-EP GSF ) or MineSight/Compass Project

File Editor can be used to initialize the file 13 required by MSEP. Since item names inthis file are fixed, only these methods should be used to initialize the file.

Click Initialize MS-EP GSF and create file M13A13.OPT for pit optimization trainingpurposes

When creating a new file 13 a TOPOG item must be chosen from an existing file 13,so that the initial topography elevations can be retrieved.

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You can also create this file using Project File Editor. When creating your file 13check the box Special Pit Optimizationfile13.

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TOPOG stores the original surface elevation at a precision of 1/10 of a meter

RCODE is used to limit the pit based upon a code from 1 to 100.Items SLP?? are used to define complex slopes.

SLPS1 stores surface elevations of the top slope surfaceSLPC1 stores the slope codes for surface SLPS1SLPS2 stores surface elevations for second surface

SLPC2 stores the slope codes for surface SLPS2SLPS3 stores surface elevations for third surfaceSLPC3 stores the slope codes for surface SLPS3

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SLPS4 stores surface elevations for fourth surfaceSLPC4 stores the slope codes for surface SLPS4

SLPC5 and SLPS5 are available for other uses

XELV? are additional surfaces used to store 2d-LG pits and other working surfaces.

XELV1 stores a surface defining bottom of oreXELV2 stores potential pit bottomsXELV3 stores 2-D LG pit based upon rows (west east)

XELV4 stores 2-D LG pit based upon columns (south north)XELV5 stores sum of pits XELV3 + XELV4

PIT01 to PIT50 are pit surfaces referenced by numbers 1 to 50.

PIT00 is the TOPOG surface converted to a new surface with whole blocks.

1.2 Lerch-Grossman with Constant Slope and Reblocking usingProcedure MSOPIT-Design Pits (msep-design.py)

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Click File Manage Variables

Click File Run Procedure

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3 ASCII output files are created and PIT01 Gridded Surface File containing economicpit shell in file M13A13.OPT are created.

File Rptopt.la: contains information about the value calculations and the LG run.

Page6:

Economics by MAT code and DEStinations

Number of MAT codes = 6 MAT code default = 1 Number of Destinations = 4

MAT DES PCST MCST SG Grade Price Recovery Factor=== ==== ====== ====== ====== ======= ========= ========= ==========

1 1 0.000 0.641 2.540 TOTCU 0.0000 0.00 0.00001 1 MO 0.0000 0.00 0.00001 1 CRECL 0.0000 0.00 0.00001 1 CRECR 0.0000 0.00 0.00001 2 1.114 0.758 2.540 TOTCU 0.0000 0.00 0.00001 2 MO 0.0000 0.00 0.00001 2 CRECL 0.0000 0.00 0.00001 2 CRECR 0.7890 83.00 22.04601 3 0.000 0.000 0.000 TOTCU 0.0000 0.00 0.00001 3 MO 0.0000 0.00 0.00001 3 CRECL 0.0000 0.00 0.00001 3 CRECR 0.0000 0.00 0.00001 4 0.000 0.000 0.000 TOTCU 0.0000 0.00 0.00001 4 MO 0.0000 0.00 0.00001 4 CRECL 0.0000 0.00 0.00001 4 CRECR 0.0000 0.00 0.00002 1 0.000 0.641 2.540 TOTCU 0.0000 0.00 0.0000

2 1 MO 0.0000 0.00 0.00002 1 CRECL 0.0000 0.00 0.00002 1 CRECR 0.0000 0.00 0.00002 2 1.114 0.758 2.540 TOTCU 0.0000 0.00 0.00002 2 MO 0.0000 0.00 0.00002 2 CRECL 0.0000 0.00 0.00002 2 CRECR 0.7890 83.00 22.04602 3 2.211 0.641 2.540 TOTCU 0.0000 0.00 0.00002 3 MO 0.0000 0.00 0.00002 3 CRECL 0.7890 87.70 22.04602 3 CRECR 0.0000 0.00 0.00002 4 0.000 0.000 0.000 TOTCU 0.0000 0.00 0.00002 4 MO 0.0000 0.00 0.00002 4 CRECL 0.0000 0.00 0.00002 4 CRECR 0.0000 0.00 0.00003 1 0.000 0.641 2.650 TOTCU 0.0000 0.00 0.00003 1 MO 0.0000 0.00 0.00003 1 CRECL 0.0000 0.00 0.00003 1 CRECR 0.0000 0.00 0.0000

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Page 10:

Summary by Destination Assignment (Entire Block Model)

Summary by Destination Assignment

Cutoff on Value/ton = 0.0000

Process Blocks OreTons Value Value/ton TOTCU MO CRECL CRECR DUMP M 8634092. 117861527887. -131033042181. -1.11175 0.00126 0.00004 0.00023 0.00006ROML M 415. 6368959. -2947418. -0.46278 0.18899 0.00000 0.15352 0.10314ROML O 221. 3093261. 2389896. 0.77261 0.31667 0.00000 0.22522 0.18817CRL M 4621. 71710629. -26556383. -0.37033 0.20919 0.00000 0.16822 0.08841CRL O 20198. 302360414. 902387156. 2.98448 0.48953 0.00000 0.38828 0.23510

MILL M 23787. 383404301. -167792973. -0.43764 0.25408 0.00851 0.00037 0.00020 MILL O 109116. 1748660662. 4227141912. 2.41736 0.46701 0.01454 0.00689 0.00384

O = Ore above zero value Processed M = Ore Below zero value Processed or waste

Summary by Material and Destination

DUMP ROML CRL

1 waste Value -102620094219. -31581. 0.Tons 93899104576. 91440. 0.TOTCU 0.0002 0.2695 0.0000MO 0.0000 0.0000 0.0000CRECL 0.0002 0.1873 0.0000CRECR 0.0000 0.1082 0.0000Value/ton -1.0929 -0.3454 0.0000

2 oxide Value -30408983. 52581. 266016129.Tons 45641057. 2426615. 111289286.TOTCU 0.0781 0.2454 0.4483MO 0.0000 0.0000 0.0000CRECL 0.0580 0.1736 0.3444CRECR 0.0299 0.1345 0.2085Value/ton -0.6663 0.0217 2.3903

3 sec Value -46310342. -947747. 613130861.Tons 63277234. 4399742. 246377620.TOTCU 0.0378 0.1892 0.4412MO 0.0000 0.0000 0.0000CRECL 0.0362 0.1697 0.3578CRECR 0.0171 0.1206 0.2139Value/ton -0.7319 -0.2154 2.4886

File workmsopit.tmp: contains details of economic calculations for row, columnspecified by user (row 129, col 165)

Value Calculation details for IX,IY,IZ = 165 129 22---------------------------------------------------

Block TOPO percent = 1.000Block TOPO fraction = 1.000SG1 - Specific gravity = 2.600SG2 - Specific gravity = 0.000 Used only for waste if Ore % usedOre Percent = 0.000Mined percent = 0.000Reserve class code = 9 Code specified = 2Pit Limit block code = 0Met code from block = 1Base Ore mining cost/ton = 0.641Base Waste cost/ton = 0.641Add Waste cost from bench = 0.030Add Ore cost from bench = 0.030Factor from bench = 1.000Block Ore percent = 1.000 based upon ore %Block Waste percent = 0.000Block Volumne = 6000.

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Block Ore tons = 15240.Block Waste tons = 0.Block Tons = 15240.Gross Value = 0.Cost = 10226.Value per block = -10226.Value per ton = -0.671Cost as waste =-12009.120Ore cost = 12009.Waste cost = 0.000Waste destination = 0

Grade Item TOTCU = 0.00000 0.00000

Grade Item MO = 0.00000 0.00000

Grade Item CRECL = 0.00000 0.00000

Grade Item CRECR = 0.00000 0.00000

Value Gross Cost ProC MinC sg/tfCost1 Cost2 Dest2 Ore Waste

Process 1 -10226. 0. 10226. 0.0000 0.6410 2.540010226. 0. 0. 15240. 0.

Process 2 -31547. -19538. 12009. 1.1140 0.7580 2.540012009. 0. 0. 15240. 0.

Process 3 0. 0. 0. 0.0000 0.0000 0.00000. 0. 0. 0. 0.

Process 4 0. 0. 0. 0.0000 0.0000 0.00000. 0. 0. 0. 0.

Best Process 1 Value -10226.04

File M13A13opt.dip: contains a history of what is currently stored in each item in

Pit Optimization GSF File 13

1 TOPOG2 RCODE3 SLPS14 SLPC15 SLPS26 SLPC27 SLPS38 SLPC39 SLPS4

10 SLPC411 SLPS512 SLPC513 PLIMM

14 PLIMP15 XELV116 XELV217 XELV318 XELV419 XELV520 PIT0021 PIT01 01162006 12:44:00 MSOPIT LG M13A15.DAT CALC N/BK TOTCU 3711.M

196057. TOPO 100 RUNOPT.A RPTOPT.LA 22 PIT0223 PIT0324 PIT04

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25 PIT0526 PIT0627 PIT0728 PIT08

1.3 Display Pit01 in Minesight and contour the surface

Polyline Contour Surface

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1.4 Reserves inside Economic Shell

Use Resource Option as Design Strategy in Precedure MSOPIT-Design Pit for

now. Later we will use other reserve calculation programs (i.e. PITRES) inMinesight..

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File Manage Variables

File Run Procedure

Summary by Destination Assignment

Cutoff on Value/ton = 0.0000

Process Blocks OreTons Value Value/ton TOTCU MO CRECL CRECR DUMP M 2904957. 1051960979. -764506146. -0.72674 0.06922 0.00178 0.01714 0.00466ROML M 318. 4849099. -2138317. -0.44097 0.19049 0.00000 0.15428 0.10478ROML O 200. 2759361. 2269416. 0.82244 0.31813 0.00000 0.22745 0.19174CRL M 3695. 57388414. -21400157. -0.37290 0.20763 0.00000 0.16852 0.08743CRL O 18884. 282112584. 868365347. 3.07808 0.49752 0.00000 0.39459 0.23928

MILL M 12331. 198504461. -80493754. -0.40550 0.25265 0.00832 0.00029 0.00015 MILL O 87055. 1392597802. 3709203544. 2.66351 0.48148 0.01532 0.00661 0.00372

O = Ore above zero value Processed M = Ore Below zero value Processed or waste

Summary by Material and Destination

DUMP ROML CRL

1 waste Value -321259855. -31581. 0.Tons 479197419. 91440. 0.TOTCU 0.0238 0.2695 0.0000

MO 0.0000 0.0000 0.0000CRECL 0.0285 0.1873 0.0000CRECR 0.0052 0.1082 0.0000

Value/ton -0.6704 -0.3454 0.0000

2 oxide Value -10915181. 377195. 240258830.Tons 16786556. 1908455. 87435842.TOTCU 0.1056 0.2578 0.4789

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MO 0.0000 0.0000 0.0000CRECL 0.0796 0.1811 0.3674CRECR 0.0392 0.1470 0.2240

Value/ton -0.6502 0.1976 2.7478

3 sec Value -25323169. -532316. 609668860.Tons 34645042. 3525242. 237028419.TOTCU 0.0623 0.1943 0.4486

MO 0.0000 0.0000 0.0000CRECL 0.0596 0.1735 0.3633CRECR 0.0280 0.1251 0.2174

Value/ton -0.7309 -0.1510 2.5721

1.5 Limit Pit Optimization Shells to Cerro Verde and Santa Rosa areaand Store Destination, Value/Block and Value/tonne in File 15.

it is necessary to change items NVAL and $$TON to accept negative values:

item minimum maximum precisionNVAL -50000 1000000 1

$$TON -10 80 0.01

Model Cloning is used to copy all the contents of an existing block model into a new

block model file with the above changes.

In Project File Editor click File Clone

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Save as Pit02 LG for Santa Rosa and Cerro Verde Areas only

Run Procedure

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Result

1.6 Reserves in Pit02 using PITRES

Pitres

Leave Panel 1 Blank

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1.7 LG with Complex Slopes

Run Procedure Add Complex Slope Codes to assign values to File 13 items SLPS1 4 and SLPC1 4 from the File 15 block by block slope code item SECT

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Run Procedure MSOPIT-Design Pits and specify Complex slopes. Store result inPIT03

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1.8 Calculation of Mill Recovered Copper Grades

Item CUREC contains block by block values for mill recovery in % for Primary sulfideblocks. We should use this more detailed information in the Pit OptimizationAnalysis. To do this we must use a recovered copper grade for the mill in theanalysis. Recovered copper grade value is required for all secondary, transitionaland primary ore blocks.

Run Procedure User-Calcs (model) to calculate mill recovered grade for primaryblocks

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Check results by running Procedure Statistics (Model)

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CUREC values do not exist for secondary and transitional blocks. Therefore we willuse an average mill recovery of 88% for secondary sulfide blocks and 84.84% fortransitional blocks. This is done by running User Calcs (Model) procedure(P61201.Dat) twice in a Multi-run.

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1.11 Display PIT05 and contour with 30m contours

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1.12 Use Pitres to calculate reserves for Pit05(See Panels for section 1.6 for guidance)

Specify a Zone Input File on second panel to provide 5 characternames for Proven and Probable reserves

Zone.dat

PROVN 1 2.6 100 100 0PROBL 2 2.6 100 100 0

POSBL 3 2.6 100 100 0

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Documents

1.Pit Optimization