Week 2 of Sr Design 2013. Diamond People Begin Building your Geologic Model – Right now your data limits you to assuming that each pipe is a single grade.

Slides:



Advertisements
Similar presentations
Doing Order of Magnitude Cost Estimates (C) 2002 Dr. Bradley C Paul.
Advertisements

Surface Sr. Design Week 7. What You Should Have Distances to Mill and Leach as a Function of Depth Cycle Time Calculations for Proposed Truck Fleets.
Running MSOPIT for Assignment #6 These Slides are Base on MS3D version 4.6 which was current in Sept. of 2009 Note – These slides contain concepts also.
Week 3 Sr. Design. DIAMONDS Your Key Finders Your diamond deposit is extraordinarily large and high grade Your controlling issues are the ability of.
How to Set Up a Processing Plan in MSOPIT’s Economics Panel.
Mining Mining in the United States generates over $60 billion towards our country’s economy every year. © Copyright 2007 M. J. Krech. All rights reserved.
© 2005 David M. Abbott, Jr. Beryllium Deposits or Beryllium Ore? An Important Distinction for Financing David M. Abbott, Jr. Behre Dolbear & Company, Inc.
Senior Design – Week Projects. A General Comment Team leaders need to get me team member assignments.
Week 9. COAL Things Missed Last Week Show a map of your #6 coal and areas where you will have to cut roof rock because of your CM selection Show a year.
Classic Open Pit Mining
Surface Mining (The Concept of Surface Mining) Mnge 315 ©Dr. B. C. Paul Spring 2003 revisions 2010, 2011 These slides contain concepts considered by the.
Surface Mining Ore Deposit Grades ©2011 Dr. B. C. Paul Note- The information contained in these slides is considered common knowledge to those schooled.
SUPERGENE SULPHIDE ENRICHMENT
Lesson 13.2 Mining More than a ton of waste may remain after extracting just a few hundredths of an ounce of gold.
The Quasi - Open Pit Methods Mnge 315 ©Dr. B. C. Paul spring 2003.
Week 5 Sr. Design DIAMONDS Constraints on Your Mining Plan Building up years of diamond supplies in vaults is not good for diamond valuation (and.
MMPE 290 Introduction to Mining & Mineral Process Engineering Mining Geology and Exploration.
Obtaining Raw Materials
Geophysical and Geochemical Exploration Techniques  The specification sates that you should be able to:  Describe the geophysical exploration techniques.
 Minerals are necessary to our modern way of life.  Mineral deposits, a location that contains a large amount of a type of mineral, are sources of:
By: Jose, Marlon and Trevone. Mining is important for many reasons: - Canada is third in the world for mineral production. - Canada doesn’t have a use.
2008 Sr. Design Project ©Jan 2008 Dr. B. C. Paul Plans were made by the Author. MineSight® is proprietary software of Mintec Inc., Maps are taken from.
The Formation, Mining, and Use of Minerals
Amrit Prakash Jonko 08MN23.  A method of mining whereby high value ore is mined in such a manner as to make the low-grade ore left in the mine incapable.
Week 6/7 (no presentations next week due to SME).
Week 11. DIAMOND One More Thing to Build Prepare a One-Line Diagram for the electrical energy needs of your mining operation For energy needs met with.
Week 10. DIAMOND Adjust Your Underground Drawing As Needed Carefully work out your drilling, blasting and mucking cycle – Presumably you will blast at.
Post Break Week 3. Metal Miners This weeks presentation is much improved over last weeks, however, critical design problems remain including – Floating.
Post Break Week 2. Comments for Consideration of Coal Miners One issue you have created is extreme variability in your coal tonnage – This will impact.
Senior Design Spring 2011 ©2011 Dr. B. C. Paul Acknowledgement is given to Companies whose design software is referenced by trademark name in this presentation.
Week 3 Sr. Design. Important Things we Know You will be doing heavy haulage by Barge on the Yukon River for $5 per tonne to Nennana – There will be no.
Obtaining Information From the Geologic Block Model
Mining And its environmental impact. What determines the type of mining? Underground v.s. Surface Mining v.s. Solution Underground v.s. Surface Mining.
Developing Haulage Profiles (Part of Getting the Truck Cycle Time) ©Dr. B. C. Paul 2000 revised 2008 Note – The instructor prepared the basic steps and.
Surface Mining Ore Body Geometry ©2011 Dr. B. C. Paul Note- Concepts given here are considered to be common knowledge to those involved in early stage.
Weathering - when rocks are exposed to air, water, certain chemicals, or biological agents that degrade the rock  Physical weathering - the mechanical.
Title 5 Emissions Quantification © Dr. B. C. Paul.
Building Economics. In this Example we Start With Western Mine Cost Service Models.
Diamonds. Diamond Properties Diamond is made of carbon It is the hardest substance in the world It is four times harder than corundum There are 2 qualitiy.
Geophysical and Geochemical Exploration Techniques  The specification sates that you should be able to:  Describe the geophysical exploration techniques.
Designing Basic Blasting Shots Part I ©Dr. B. C. Paul 2000 Note – The topics covered in these slides represent the author’s summary of information familiar.
Week 8. COAL Timing Will Be Big Show a map of your #6 coal and areas where you will have to cut roof rock because of your CM selection Show a year by.
  Strip Mining  Open Pit Mining  Underground Mining Three Types.
The 2009 Sr Design Project (for Coal). What is Covered Mine Plan and Layout –Methods –Equipment –Manning –Production Rate –Sequence Rock Mechanics –Orientation.
Computer Aided Mine Design Part III Cut-Off/Equipment Interactions ©Dr. B. C. Paul 2000 ©Dr. B. C. Paul Summer 2003.
Just After Spring Break Sr. Design. Coal Group For Each of Your Coal Seams Define the Boundary of the areas you believe are minable –Provide a plan view.
Mine Properties. DIAMONDS Kimberlite Pipes Located in Wyoming.
Week 9 ©2012 Dr B C Paul. Coal Trouble in the Board Room –Plans to ignore large amounts of met coal and drop mining your low sulfur coal and cut down.
Mining. Mining?...Like Minecraft? wu65Gic.
Computer Aided Mine Design Part II – Pit Sequences ©Dr. B. C. Paul 2000 ©Dr. B. C. Paul summer 2003.
“If you can’t grow it, you gotta mine it”
THE COST OF MANUFACTURING How much does manufacturing cost?
Weathering - when rocks are exposed to air, water, certain chemicals, or biological agents that degrade the rock Weathering and Erosion.
FPC Assignment 1. Go to Your Project and Fire-Up MSOPIT.
How we get our minerals and rocks
Senior Design 2009 Projects Overview. General Format Week Day 1 – Outline Work to Be Accomplished During the Week Week Day 2 – Work Day / Special Lecture.
Guidelines and Cautions for Finishing. Group and Individual Work Individual Only 40% –Oral Presentations weekly –Completion of tasks weekly Group (sort.
Week 10 ©2012 Dr B C Paul. Copper Your initial road moves have been questioned. –You have drawings showing the end of each stage –Between two of your.
Unit #4 Carlson Software. Carlson is an Autocad Overlay Designed to build specialized commands into a widely used drawing package Largely 2D or a highly.
True Open Pits ©Summer 2003 Dr. B. C. Paul. Telling a True Open Pit Strip mines advance across the deposit backfilling pits with new overburden as they.
Issues in Canadian Geography Mining The extraction of naturally occurring minerals from the Earth.
The 2007 Class Project ©2007 Dr. B. C. Paul. The 2007 Project A copper/moly porphyry deposit located near Eureka Utah –Ie (hard rock deposit) Deposit.
Quarry Operations © Dr. B. C. Paul Summer Specialized Open Pit Simple Quarries operate on thick tabular limestone deposits with limited soil cover.
Obtaining Moving Cycle Times ©Dr. B. C. Paul 2000 revised 2008 Note – The methods shown in these slides are adapted to use FPC, a program produced by.
Mineral Resources EES – Chapter 19.
Interpreting a contour map
Mining.
And its environmental impact
Obtaining Raw Materials
Mining and Mineral Resources
Presentation transcript:

Week 2 of Sr Design 2013

Diamond People Begin Building your Geologic Model – Right now your data limits you to assuming that each pipe is a single grade of material over a specific depth interval – Estimate the Gross Value Per Ton of Ore In many cases you have a bort diamond value per caret and a caret per ton value – multiplied this will provide a value per ton for bort diamonds You can do a similar calculation for industrial stones For your large industrial diamonds you reported “up to $200 per caret” but actual prices can be between industrial stones and $200 per caret – pick a reasonable value remembering that $200 per caret is an ideal peak price You still need to get prices to use ballas and carbondo

Continue Your Grade Calculation Look at your gem stones – Your price data is by gem size and quality – Use 70% of cut price for the value of rough stones – Remember cut stones are only 40% to about 75% the size of rough stones (good cuts often discard 40% of rough stone – only discarding 25% is likely a fairly poor cut) Thus a 1 caret rough stone will likely only produce a 0.6 caret cut stone – If stones of 1 to 1.5 caret size are worth $5000 per caret – And stones of 0.5 to 0.99 carets are worth $1000 per caret – Your one caret rough cut down to 0.6 caret size is valued at $1000 per caret – not $5,000 per caret The 0.4 carets of waste rough can almost certainly be sold for bort.

Another Omission in Your Data You have colored diamonds in some places but right now you have no price data for colored diamond gem stones – You need to get values to proceed with your calculations.

The Problem of Lack of Grade Some of your drill holes encountered some number of large and rare stones but no grade per ton was given – The size of these stones relative to drill hole volume was considered to great to make a grade estimate The problem is called nugget effect – the chance that you did or did not hit something big The random chance range is bigger than the predicted grade – you can’t statistically quantify anything – You can guess there may be some very high values but you would need to mine bulk samples to know what Don’t include value per ton for a few isolated large stones but note that very rich stones may be present.

Document How You Got Your Estimated Value Per ton Show the full estimating calculation Now assign values per ton. – Assuming an entire pipe between say 500 and 750 feet depth is made of $10,000 per ton ground – how many tons of ore do you have? Create estimates of your ore tonnage by value Create an initial geologic model of your ore deposit.

Continue Development of Your Background Information You indicated you would get water from Cheyenne’s reservoirs – How much would you pay per unit for water at Cheyenne prices? You indicated you had 120,000 people within 30 minutes of the mine and none of them have mining training – What will it likely cost you to train a miner? What is that based on? – What will you likely pay? – Your engineers and managers will likely have to be “imported” – what salaries will you likely have to offer? What is that based on?

Begin Writing Sections Your Final Report Write section on value of diamond and garnet – Indicate whether your research indicates likely upward or downward movement of prices – Indicate the values you are going to assume in your economic analysis Write the section on workforce available in the area and what you expect to have to pay, train, or import workers Write the section on water supply and the likely cost of water. These sections will likely range in size from about ½ a page to maybe as much as 3 to 5 pages for diamond and garnet values

Planning Your Mine Concept What Mining Methods Would You Consider Using on this Deposit? – What kind of recovery would each method achieve – What kind of dilution would each method have – What kind of cost per ton does each method have – Consider the tonnage of ore you have available Are any of the methods not practical for that size deposit?

Consider Limitations on Mining Method Diamond Mining often considers Block Caving – Are your estimated rock strengths and RQDs conducive to block caving? Diamond Mining Often considers Open Pit – Open pit depth is usually limited by economics As you go deeper the stripping ratio increases – If I dig a 500 ft deep pit about what will my stripping ratio be? – If I go to 1000 ft what is my incremental stripping ratio? – If I go to 1500 ft (still common for open pit) – What if I go all 3500 ft down to the know pipe bottoms? As you go deeper the haul distance to the surface increases – About what would the cost be of trucking a ton of rock out of a 500 ft deep pit – What would the cost be if it were 3500 ft deep? – Are there rock mechanics constraints that make a 3500 ft deep pit infeasible? – Are there land area constraints that make a 3500 ft deep pit infeasible? – Will the wind, snow, snow drifts, cold, or limited hours of daylight make Open Pit infeasible Is the limitation year round or only seasonal?

Mining Methods What other mining methods are practical? – Open Stoping Methods? – Cut and Fill Methods? – Shrinkage methods? Kimberlite degrades and weathers badly – How will this impact the methods you are considering.

Consider Your Mining Rate If you mine your deposit in 10 years what will your production rate be? – What about 15 years? – 20 years – 25 years – 33 years – 40 years – 50 years Are any of these rates particularly favorable or unfavorable to the mining rates you are considering Look at your road network for people, supplies, and product – Are any of the rates impractical for the geography What is the size of the current market for your products – Are any of your production rates high enough to be a major part of the total market If so will you end up with product you cannot sell? Will you alter the price for which things sell from flooding the market?

Make a Draft Proposal How will you mine? What will be your mine life? What will be your production rate?

COPPER

Build a Block Model Take the new file and get a block model Estimate the amount and grade of ore in place – Alteration 6 = oxide what is the tonnage – Alteration 5 = mixed oxide sulfide what is tonnage – Alteration 4 = Secondary enrichment zone sulfide – Alteration 3 = mixed secondary and primary – Alteration 2 = Primary sulfide – Alteration 1 = Primary sulfide refractory gold

Consider Your Mining Method What methods make sense for this type of orebody About what would your mining rate be for – 15 year life – 20 year life – 25 year life – 33 year life – 40 year life – 50 year life Are any of these mining rates poor matches for the mining method being considered?

Consider Your Mining Methods Propose a mining method and justify why this method is preferable to others It is likely that methods considered would include Open Pit and Block Caving – What are the relative costs and recoveries? – Are there environmental considerations that favor one method or the other?

Begin Developing Economics For your mining method of choice begin detailing cost details Example Using Open Pit – How would you load and haul ore What equipment? What would it cost to buy? What would it cost to operate? – How would you blast What equipment would you use? What would it cost to drill? What would you spend for supplies and manpower to blast? – What support services would you require? What would they likely cost You will be trying to get a solid handle on Ore Mining and Waste Mining Cost

Work on Processing and Costs Assume your mineral grain size is fairly coarse and easily liberated and your grinding indexes are at the lower end for typical copper ore Oxide ore has readily soluble copper and gold. Silver is also in metalic or oxide forms – How could you process such an ore? What are the costs likely to be? You have a secondary enrichment zone – The copper is mostly chalcocite and covellite – The gold is metallic without without carbon – The silver is typical silver sulfides

More on Your Processing You have a zone that is 50% oxide and 50% secondary sulfide You have two primary sulfide zones – The Copper is 70% calcopyrite 30% Boronite – #2 zone gold is metallic without carbon, silver is sulfide – #1 zone gold has extensive carbon, silver is sulfide You have a 50% secondary, 50% primary transition zone – Gold is not encumbered by carbon Your goal is to determine the processing method and costs – You already are partially calibrated for size

Follow Up Get price histories from 1975 to the present for copper, gold, and silver – Adjust old prices to current dollars using inflation indexing – Look at what drove past price swings – Look at current conditions – Determine and justify 3 prices Most likely reasonable price Low end scenario price High end scenario price

More Follow Up Pick the two closest copper smelters – If you were going to ship concentrates to those smelters how would you do it? Are the roads capable of handling the traffic you are proposing? Is it practical to upgrade roads or extend new routes into the area? – If you had a copper concentrate at 30% copper what would the cost per pound of contained copper be for shipping – What would you likely pay in smelter and refining charges per lb of copper to have your copper refined? If you mined your ore body in 33 years what would it cost to build a smelter and refinery sized for that production?

Do It Right Where do people live in the area – What do those people do for a living in those places – What is your plan for getting a workforce? Check elevation and Climate to make sure that Silver City weather data is a good surrogate for your mine site – Detail seasonal temperature, rain, and other weather ranges – Do any of your findings impact your mining method or plan? Provide a concrete plan for where water would come from – how it would get to your site – and what it would likely cost.

COAL

Initial Work Consider what you need to put together a geologic model of your mine – Remember to look at the new geophysical data If you need additional drill hole data it would likely be for one or more of the following – Nail down displacement on the fault (a drill hole on each side would likely work best. You might want to check more than one place if you suspect that the displacement might not be uniform) – Trace the washout zones (you should look at where you have found washout zones and guess at where things might go so washout drilling is based on something) – If you can’t get a handle on how coal is thinning or thickening or changing quality in an area you might need drill holes.

Drill Work Thursday preferred – Friday in class acceptable Determine whether you need additional drilling and what the drilling would be looking for. – Identify where the drilling needs to be and why You can have 8 drill holes if you can explain why – if you want more you must make the case.

For Presentation on Tuesday Build a computer based model of your coal reserve – The Model should address issues What do you believe is the displacement on the fault Where do you believe the washout channels go or exist – (Remember that washout channels represent streams – they are usually continuous and do not appear and disappear in various spots) – How have you or how are you addressing the uncertainty for these things.

From Your Model – Show representations of the following The coal thickness of the #7 seam Based on the elevation of the bottom of the #7 coal which direction will water run if you open workings The coal thickness of the #6 seam Based on the elevation of the bottom of the #6 coal which direction will water run if you open workings The coal thickness of the #5 seam Based on the elevation of the bottom of the #5 coal which direction will water run if you open workings The coal thickness of the #2 seam Based on the elevation of the bottom of the #2 coal which direction will water run if you open workings

Mine Planning Based on your model and allowing for coal losses from washout channels or baking around intrusive dikes – how many tons of each coal do you believe you have now? – Are you still meeting your investors hopes for coal reserve size. Considering depth, roof conditions, floor conditions, seam thickness, and continuity of the coal bed what method would you suggest for mining each coal seam? Explain why.

Begin Laying Out Minable Areas For each coal seam – What areas are unminable because the coal is too thin? – What areas are unminable because the coal has been cooked by intrusive dikes – What areas are unminable because you cannot find an economically attractive way to control the roof – What areas are unminable because you cannot find an economically attractive way to control the floor – What areas are unminable because they represent pockets of coal that are too small to be worth getting to This might be small areas isolated from the rest of the reserve by a fault It might be a small area isolated from the rest of the reserve by a washout channel – What areas are unminable because of the proximity to geologic hazards – Are there any areas that are unminable because of another reason?

Estimate Recoverable Tonnage You now have “minable areas” and known thicknesses for the coal in the minable areas. How many minable tons of each coal do you have? Most mining methods achieve less than 100% recovery of the “minable” in situ resource. What percentage of the in situ resource do you believe you will get? Now how many really mined tons do you have from each seam? Most mining methods suffer from “out of seam dilution”. Based on your mining methods how many tons of dilution rock do you expect to add? Now applying reasonable preparation plant yields to your out of seam diluted coal how many mined and washed tons of each coal seam do you expect to get.

Get a Feel for Your Operation Scale You know the company’s goals for tons of coal reserve, production rate and mine life. You know the surrounding market. You know how many clean tons of coal you may produce. You know how many raw tons of diluted coal you will mine. – What will you target for your annual clean ton production rate (by coal type) – What will you target for your coal preparation plant capacity?

What Type of Mine Access Do You Want? For production and supply access what will you use? – Slopes?, Drifts out of boxcuts?, Shafts? Where would you put these openings to start out with? What direction would you likely mine? Where would you put out mains and submains?

Start Writing Report Sections Section on Mine property and access to market – What will transport to market cost? Coal Prices – You had a fairly good breakdown with expected price, boom price and bust price – Be sure to document your sources and how you reached your conclusions