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TUTORIAL

SimSched Pit Optimizer Beta

February/2015

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Tutorial SimSched Pit Optimizer Beta

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SUMMARY

1. MININGMATH ................................................................................................ 3

2. SIMSCHED ..................................................................................................... 3

3. INSTALLATION .............................................................................................. 4

4. INITIALIZATION OF SIMSCHED ................................................................... 4

5. LICENCE ACTIVATION ................................................................................... 6

6. BLOCK MODEL FORMATTING ........................................................................ 6

7. IMPORT BLOCK MODEL ................................................................................. 9

8. PIT OPTIMIZATION ..................................................................................... 13

9. CONTACT ..................................................................................................... 19

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1. MININGMATH

Conceived in 2010, thanks to the concerted effort of dedicated professionals,

MiningMath consists of engineers, geologists, computational mathematicians and

computer scientists to form a multidisciplinary and high-performing team.

From geology to economic viability, through modern engineering techniques and

development of sophisticated models and systems, MiningMath is always striving to

provide high quality services and being in the forefront of technological innovations.

One of the results of that commitment is the SimSched software.

2. SIMSCHED

Usually, decisions relating to the future of a mining operation are projected according

to a series of consecutive steps: final pit with nested pits, mining phases, period to

period operational sequencing, blending, cut-off grade optimization, stockpiles, etc.

There are no guarantees about the optimal economical value in the final result, even

if each of these steps were to be executed at an optimal performance.

SimSched is based on Mixed Integer Programming techniques with added proprietary

heuristics. It allows condensing more complex problems into a single optimization

process with consideration of geological uncertainties, leading to better decisions in

mining, control and reducing the associated risks with the project, increasing project

value.

Its mathematical model uses surfaces to precisely control geotechnical aspects, and

is able to include any additive constraints (productions, equipment hours,

transportation distances, etc.) and multiple blending constraints progressively, as the

product moves forward and keeps accomplishing its projected development steps. It

can also decide which blocks to mine, when they should be mined and if each block

should be processed, stored or discarded (optimized destinations). It’s also capable

to simultaneously optimize cut-off grades while the sequence is being defined and in

an optimal manner, removing the responsibility from the user for having advanced

knowledge, and saving parameter configuration time for the successive tests.

SimSched Direct Block Scheduler will be available to the market in 2015. To acquire

the software in advance and benefiting from special offers, please contact us by e-

mail: software@miningmath.com.

The Beta version of SimSched Pit Optimizer software is available in the form of a

plugin to the free SGeMS software (http://www.ar2tech.com/products), which is

developed and maintained by Advanced Resources and Risk Technology, LLC

(AR2Tech) (http://www.ar2tech.com). The aim with this integration is providing

more graphical and statistical analysis tools, without incurring additional costs to the

user. The distribution of this version of SGeMS by MiningMath was authorized by

AR2Tech.

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3. INSTALLATION

To install SimSched, these are the system’s prerequisites: 64-Bit Operational System,

Windows 7 or higher, with 8GB RAM memory (recommended).

The installation procedure is illustrated in the steps in Figure 1, running the installer.

Figura 1 – Installation procedure of SimSched Pit Optimizer Beta.

4. INITIALIZATION OF SIMSCHED

SimSched will be accessed via the SGeMS software, which can be opened through

the corresponding icon at the desktop or from the Windows start menu.

After opening the SGeMS software, under Algorithms, select MiningMath |

SimSched Pit Optimizer. At the bottom of the pane, click the Run Algorithm

function, as highlighted in Figure 2. The SimSched interface will open in a new

window, as shown in Figure 3.

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Figura 2 – Initialization of SimSched through SGeMS.

Figura 3 – Initial SimSched interface.

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5. LICENCE ACTIVATION

On the initial SimSched interface, select License. Enter the email address of the

license (E-mail) and the key (Key), as shown in Figure 4.

Figure 4 – Insertion of the access key.

6. BLOCK MODEL FORMATTING

The block model must have regular dimensions, and the import file must be adapted

to the CSV format. This file must have a header and fields separated by commas,

using dot notation as the decimal separator. It is necessary to remove air blocks, in

order for the software to identify the topography. The metric system should be used

as units for imported data.

The required fields for each block (each line of the file to be imported) are:

Indices on X, Y and Z;

Grades (at least one element); and

Economic values.

The indices of each block represent its position in the model, indicating in which

column, line and level (IX, IY and IZ) it is. The indices must be integer values

starting at 1. The model’s origin is located in the minimum coordinates at X, Y and Z.

Figure 5 highlights the origin of Marvin’s block model and block (1,1,1).

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Figure 5 – Marvin block model origin and the block (1,1,1).

Each block must have associated economic values related to it being sent to each

possible destination.

Optional fields:

Density (t/m3).

Slope angle (degrees).

Process recoveries (values from 0 to 1).

Figure 6 provides an example of a block model prepared and ready to be imported

into SimSched using the Marvin block model example - based on data available in

the MineLib repository (http://mansci-web.uai.cl/minelib/marvin.xhtml).

Figure 6 – Visualization of the Marvin Model (CSV) through the Microsoft Excel software.

Block Model Origin

Block (IX,IY,IZ) = (1,1,1)

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Each field related to economic value (Economic Value Process/Waste) must report

the value of each block as a function of its destination, grades, recovery, cost of

mining, transport, treatment, selling price, etc. The user is not required to pre-set

the destination, as the software will determine the best option during the

optimization.

To illustrate the calculation of economic values, an example is shown based on the

block with indices (IX, IY, IZ) = (17, 22, 7), highlighted in Figure 6. The calculation

parameters are described in Table 1, below:

Table 1 – Parameters for calculating the economic values of the blocks.

Description Cu_% Au_PPM

Recovery 0.88 0.60

Selling price ($) 2000.00 12.00

Selling cost ($) 720.00 0.20

Processing cost ($/t) 4.00

Mining cost ($/t) 0.90

Discount rate (%) 10

Dimension of the blocks in X (m) 30

Dimension of the blocks in Y (m) 30

Dimension of the blocks in Z (m) 30

𝐵𝑙𝑜𝑐𝑘 𝑀𝑎𝑠𝑠 = 𝐵𝑙𝑜𝑐𝑘 𝑉𝑜𝑙𝑢𝑚𝑒 ∗ 𝐵𝑙𝑜𝑐𝑘 𝐷𝑒𝑛𝑠𝑖𝑡𝑦

𝐵𝑙𝑜𝑐𝑘 𝑀𝑎𝑠𝑠 = 30 ∗ 30 ∗ 30 ∗ 2.68 = 72360.00 𝑡

𝑀𝑎𝑠𝑠 𝐶𝑢 = 𝐵𝑙𝑜𝑐𝑘 𝑀𝑎𝑠𝑠 ∗ 𝐶𝑜𝑛𝑡𝑒𝑛𝑡 𝐶𝑢/100

𝑀𝑎𝑠𝑠 𝐶𝑢 = 72360 ∗ 0.635556/100 = 459.89 𝑡

𝑀𝑎𝑠𝑠 𝐴𝑢 = 𝐵𝑙𝑜𝑐𝑘 𝑀𝑎𝑠𝑠 ∗ 𝐶𝑜𝑛𝑡𝑒𝑛𝑡 𝐴𝑢

𝑀𝑎𝑠𝑠 𝐴𝑢 = 72360 ∗ 0.334444 = 24200.37 𝑔

𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝑉𝑎𝑙𝑢𝑒 𝑃𝑟𝑜𝑐𝑒𝑠𝑠= (𝑀𝑎𝑠𝑠 𝐶𝑢 ∗ 𝑅𝑒𝑐𝑜𝑣 𝐶𝑢 ∗ (𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝐶𝑢 − 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 𝐶𝑢))

+ (𝑀𝑎𝑠𝑠 𝐴𝑢 ∗ 𝑅𝑒𝑐𝑜𝑣 𝐴𝑢 ∗ (𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝐴𝑢 − 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 𝐴𝑢))

− (𝐵𝑙𝑜𝑐𝑘 𝑀𝑎𝑠𝑠 ∗ (𝑃𝑟𝑜𝑐𝑒𝑠𝑠𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 + 𝑀𝑖𝑛𝑖𝑛𝑔 𝐶𝑜𝑠𝑡))

𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝑉𝑎𝑙𝑢𝑒 𝑃𝑟𝑜𝑐𝑒𝑠𝑠= (459.89 ∗ 0.88 ∗ (2000.00 − 720.00))

+ (24200.37 ∗ 0.60 ∗ (12.00 − 0.20))

− (72360.00 ∗ (4.00 + 0.90)) = 𝟑𝟑𝟒, 𝟕𝟗𝟑 $

𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝑉𝑎𝑙𝑢𝑒 𝑊𝑎𝑠𝑡𝑒 = − 𝐵𝑙𝑜𝑐𝑘 𝑀𝑎𝑠𝑠 ∗ 𝑀𝑖𝑛𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝑉𝑎𝑙𝑢𝑒 𝑊𝑎𝑠𝑡𝑒 = −72360.00 ∗ 0.90 = −𝟔𝟓, 𝟏𝟐𝟒 $

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Therefore, $ 334,793 will be the economic value of the block if it is sent to the

process and $ -65,124 will be the economic value if it is discarded as waste.

SimSched will be responsible for defining the appropriate destination for each block.

7. IMPORT BLOCK MODEL

To import the block model select Import in SimSched interface Notice in Figure 7 the

File name input field is shown in red, indicating a mandatory field. Browse for and

select the CSV formatted file and press Next.

Figure 7 – Import – CSV file selection.

In the next window, shown in Figure 8, the model name (Name) must be entered.

Optionally, the destination folder (Folder) can be changed and a description

(Description) added.

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Figure 8 – Import – name, destination and description.

Upon clicking Next, the following window will provide a statistical summary of

information for the block model that will be imported, as shown in Figure 9.

Figure 9 – Import – statistical summary of the selected block model.

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When Next is selected, a form will appear which shows correlations between the

imported CSV file header and the available field types in SimSched.

As illustrated in Figure 10, the form displays a table containing a preview of the

imported block model and two header rows. The top header row has the definitions

made by SimSched and the bottom row shows the headers of the CSV file. You must

associate each column imported, as, for example, to associate the block indices IX,

IY and IZ to the system variables Index X, Index Y and Index Z, through the list of

options located just above the table. Please note the required mandatory fields, as

described in Section 5.

For this SimSched Pit Optimizer version, only one field can be selected as a Grade

type. For the results presented in this tutorial the AU_PPM column was selected as

the variable Grade type.

Figure 10 – Import – association of model fields.

Upon clicking Next, the CSV file will be imported into SimSched and request

additional data related to the dimensions of blocks and units of imported grade

elements, as illustrated in Figure 11. In that screen you might also insert the block

model’s origin specifying the minimal X, Y and Z coordinates.

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Figure 11 – Import – parameters of the block model.

After filling in the required fields, the options View Model and Pit Optimization

will be enabled.

Before proceeding with the pit optimization, the imported model can be viewed by

clicking View Model. When selected, SimSched will be closed and the preview will

be available on the SGeMS interface, as shown in Figure 12.

Figure 12 – Visualization of the imported block model.

Please consult the specific SGeMS documentation, including videos available on

YouTube, for details on the options of viewing, creating sections, filters, statistics,

etc.

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8. PIT OPTIMIZATION

After visual validation, reopen SimSched and double click in Recent scenarios

Guide, which contains the imported model, as shown in Figure 13.

Figure 13 – SimSched restart.

The Pit Optimization tab is automatically selected with the General form open, as

illustrated in Figure 13. This version of the software is limited to the option Only Pit Optimization. The option Direct Block Scheduling will be available and marketed

starting in 2015 and will allow a complete scheduling to be run straight from the

block model, without the need to define the final pit, nested pits, mining phases, cut-

off optimization and stockpiles. The scheduler will find a mining plan that maximizes

the net present value of the project, considering all these aspects and optimizing all

mining periods simultaneously. This will allow for the definition of which blocks will

be mined, in which periods and with optimized destinations.

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A default value for the density and slope angle is required to be entered, as

highlighted in Figure 14. The default values informed will be used if no specific fields

have been imported and selected through the Field boxes, or if there exists blocks

with no data. In the example of this tutorial, the density field must be selected for it

to be considered by the optimization. The other parameters are disabled referring

only to the currently unavailable option Direct Block Scheduling.

After entering the required parameters, the Destinations option on the toolbar is

enabled and must be clicked.

Figure 14 – General form filled.

On the form Destinations the possible destinations to where the blocks can be sent

will be defined. Each target must be mapped with their respective field containing

the economic values, as shown in Section 5. To add a processing route, click on Add

Process at the bottom right of the window, as highlighted in Figure 15. To add a

route for waste disposal, click on Add Dump.

Figure 15 – Adding process and route for waste disposal.

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At the Recovery field from the added process, provide the recovery in the process

of the Grade type variable (Au_PPM), which will be the only element reported in the

optimization, as shown in Figure 16. On the Economic value field, select the

equivalent imported field along with the block model (Economic Value Process). In

the Economic value field of the added route of disposal, select the equivalent

imported field along with the block model (Economic Value Waste).

Figure 16 – Destinations form filled.

After completing the previous fields, click Constraints. At this stage, surfaces may

be selected, in the form of a grid of elevations in CSV format, with physical limits to

force or restrict mining in certain regions of the deposit. This functionality will not be

explored in this basic tutorial. The minimum width of the pit bottom (Minimum

bottom width), illustrated in Figure 17, can be filled with, for example, the value

100 to ensure a bottom with a minimum diameter of 100 meters.

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Figure 17 – Constraints form filled.

Click Overview, for a single page summary of all completed parameters related to

the pit optimization, as illustrated by Figure 18.

Figure 18 – Overview form filled.

The Save as option can be used to archive the scenario, including the specific input

parameters recorded by the user. With this functionality, it is possible to optimize

various pits, for example, varying economic values, without having to re-import the

block model.

Click Run to execute the pit optimization.

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SimSched will generate the reserves report directly in Microsoft Excel software, as

shown in Figure 19, and the optimized pit (blocks and surface) in SGeMS, as shown

in Figure 20. The automatic preview shows only the blocks mined, coloured

according to the destination set by the optimizer. Two clouds of points representing

the topography and the final pit can be selected on the left, in the list of objects for

viewing.

Figure 19 – Final report for the pit optimized.

Figure 20 – Optimized pit preview.

SimSched will automatically save the list of the optimized blocks (MinedBlocks.csv) in

the block model folder, as shown in Figure 21. Similarly, a surface with the final pit

(UltimatePitSurface.csv) will be saved, as shown in Figure 22, that can be imported

into other mining software packages.

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Figure 21 – CSV file listing blocks contained in the optimized pit and destinations defined.

The file MinedBlocks.csv contains indices and coordinates of mined blocks only,

indicating in the column MINED BLOCK whether each block will be mined (=1) or not

(=0), and in the column DESTINATION which will be the destination, according to

the order of destination at the Destinations option, process (=1) and waste dump

(=2). The other columns contain other data and parameters used. Fields with -99

values indicate the absence of information.

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Figure 22 – CSV file with grid points of the surface of the optimized pit.

The file UltimatePitSurface.csv contains X, Y, and Z coordinates, distributed in the

form of a grid with the same X and Y coordinates of the block columns of block

model and the surface elevation represented in the Z coordinate.

9. CONTACT

If you have any questions, please contact us via e-mail: support@miningmath.com.