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1996 Users Seminar PITRES and PITINC Reserve Reporting ProceduresPage 1

PITRES and PITINC Reserve Reporting Procedures

PITRES: GENERAL CONSIDERATIONS:

Open pit metals reserves from a 3-D block model can be done with the standard M711/712 routinesbut these are limited to one ore percentage item per block and do not handle dilution and mining loss.The procedure PITRES can handle 1,2,3, or 4 zones per block, along with most of the usual miningparameters.

When setting up the 3-D block model, the user should evaluate which model items to store. Openpit modeling always requires a topo percent item (TOPO) that shows how much material is belowthe surface. The name of 1 to 4 geologic/mineral/ore zones (ZONE1,2,3,4) and their associated orepercentages (ORE1,2,3,4) and grades should also be stored. Other items to consider are an oredensity for each zone (DEN1,2,3,4), a waste type for the entire block, and an equivalent gradeand/or material class item for each zone.

Storing two zones per block is required if the zones are coincident with each other (and thus wouldshare 3-D blocks), and reporting accuracy is required. PITRES is used to determine the reserves foran open pit metals project. The reserves can be generated from a STRIPPER/M650PT pit (or anyVBM polygons), DIPPER pit, from an external partials file. (e.g., from IGP), or from a rectangularboundary (specified on the panel using the easting, northing, and elevation bounds).

Partials are determined based upon VBM closed features for STRIPPER or the difference betweentwo S-Files for DIPPER. For STRIPPER, reserves can be determined for a pushback using a smallerpit which is contained within the larger pit. This can only be done if you are not using the "Take orefirst" option (see below). If you use larger pit minus smaller pit within PITRES and the take ore firstoption, some ore will be double accounted.

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It is critical to run PITINC for incremental reserves when using the take ore first option. ************************************************************************

The partials can be limited to a range of benches, rows (northings), and columns (eastings). Thepartials are then run against the 3-D block model to generate the reserves. Dilution can be appliedto the in situ or recovered ore for all blocks, or against the full block for ore/waste contact blocks.A contact block is defined as a block that has more material in it than ore. i.e., topo% > total ore%.Also, if a zone in a block has a 0% recovery from the Zone Input File or its grades fail to pass theore/waste cutoff tests, then it is considered a contact block. i.e., leach cap may be modeled but nevermined as ore. When using contact dilution, the non-missing grades from the wasted zones over-ridethe dilution grades from the Zone Input File and are weighted by the density of the material beingwasted.

Output files can be produced for scheduling. These files are compatible with both M805V1, the longrange scheduling program, and M821V1, the new long range scheduling program for open pit mines


with trucks, shovels, destinations and economics. M821V1 is only available to users who haveattended Mintecs M821V1 scheduling class.

FILLING OUT THE PITRES PANELS:

Panel 1:

SOURCE OF RESERVES:The user has an option of doing reserves from one of THREE CHOICES:- a stripper pit contained in a VBM file, OR- a DIPPER pit S-file, with its associated initial surface S-file and its B-file, OR- an existing partials file from M659V1 The user has an option of specifying a rectangular boundary to limit reserve calculations The user must choose whether the run is from a VBM stripper pit or a VBM with geologicalboundaries(1), a DIPPER pit (2), or a rectangular coordinate boundary (3) specified at the bottomof panel 1 with benches, easting and northing limits..

ZONE INPUT FILE:If the user wants to run reserves on multiple geologic/mineral/ore zones, the file 15 must containinteger values for these zones (in items differing only by the last digit such asZONE1,ZONE2,ZONE3,ZONE4) and their associated ore percentages or grades (in related itemssuch as ORE1,ORE2,ORE3,ORE4). Then the user can then specify the name of a Zone Input Filewhich contains info on the reporting name for each zone, the code value for the zone, its density,yield%, recovery%, etc.

The user inputs zone parameters in the Zone Input File. Other parameters such as waste density areinput through the panel. Ore density by zone can be read from a model item or from the Zone InputFile. The Zone Input File is a similar format to the IGP Zone File with optional extra values fordilution density, grade dilution and ore/waste cutoffs by grade item. The yield% is not applicable tometals but must be set to 100% for IGP. If using the ore/waste cutoff by grade item, then theGRADE line must be used in the Zone Input File (see below), and a dilution grade must be specifiedfor all grade items. Then the cutoff grades are specified for each grade item, and an optional set of0/1 flags. A 0 means waste material below the cutoff (default), and a 1 means waste material abovethe cutoff.

Each data line in the file zone input file refers to all zones used in PITRES and has the format:

Report-name Zone-code Density Yield% Recovery% ... etc.

(i.e., if item ZONE1 was entered in panel 3 as the name of the zone item, the report will summarizefor zone = 3 with a name of P3, having a density of 2.7, a 100% recovery, etc.)


A sample zone input file is:

#Zone Zone# Dens Yield% Recov% Diln% Diln Dens Diln grades,cutoffs,cut flags#Name P1 1 2.7 100. 95. 3.0 P2 2 2.7 100. 95. 3.0 P3 3 2.7 100. 95. 3.0 Q1 11 2.7 100. 95. 3.0 Q2 12 2.7 100. 95. 3.0 WASTE -3 2.5 100 100 0.0

Notes: 1) The Zone Input File is optional and if not used, all zones are assumed to be between 1 and

150 and recovery is set to 100% and dilution to 0 for all zones. 2) The Zone Input File can be used exactly as is for IGP as long as the grade line is specified

as #GRADES 3) Any zones that exist in the model but are not specified in the Zone Input File are wasted. A

WARNING message is issued. 4) If the recovery for any zone is set to 0 or it fails one of the ore/waste grade cutoff tests, then

it is only reported if the in situ grade option has been requested. (i.e., it will only show up aswaste if the diluted grade option is requested).

5) The # indicates a comment and can be placed anywhere within the file. 6) If the dilution grades are not specified, they default to 0. 7) Recovery and dilution are specified as a percentage, 8) There is an additional grade line that can be specified at the start of the Zone Input File to

allow for the proper matching of grade items and dilution grades, ore/waste cutoff grades,and the cutoff flags. The format of the grade line is:

# Names of grade items on 1 line without 1,2 suffix

#GRADES AU CU AG

The dilution grades, ore/waste cutoffs, & cutoff flags from the zone lines would then be matched upto the grade item order from the GRADES lines regardless of the order they are specified on thePITRES panel.


A sample zone input file with the cutoff grades is as follows:

# Grade line for matching diln and cutoff grades#GRADES AU CU#Zone Zone# Dens Yield% Recov% Diln% Diln Dens Diln Cutoffs Cut Flags

P1 1 2.7 100. 95. 3.0 2.7 0. 0. .1 .2 0 0P2 2 2.7 100. 95. 3.0 2.6 0. 0. .1 .2 0 0P3 3 2.7 100. 95. 3.0 2.4 0. 0. .1 .2 0 0Q1 11 2.7 100. 95. 3.0 2.8 0. 0. .1 .2 0 0Q2 12 2.7 100. 95. 3.0 2.9 0. 0. .1 .2 0 0WSTE -3 2.5 100 100 0.0

OUTPUT FILE NAMES:The user must enter the beginning characters (up to 6) of the output filename for the output files, anda title for the reports. These files include the report, the 805/821 scheduling file if selected, and areserve summary file. More information about these reports will be given on panel 3.

BENCHES TO PROCESS; BOUNDARY FILE SPECIFICATION:The user should specify the elevation of the toe of the bottom and top benches to be used. Inaddition, the user can specify limits by easting and/or northing.

PIT FEATURE CODE:If a stripper pit (or a geologic feature) was specified as the source for the reserves, the feature codefor the larger pit and (if calculating reserves between two pits) for the smaller pit also.


Figure 1: first panel of PITRES.DAT.

This is a sample of the first panel of PITRES.DAT.


Panel 2:

ZONES , ORE%s AND MODEL DENSITY:On panel 2, if the ZONE item in your model is ZONE1, ZONE2,ZONE3, etc. and the name of therelated ORE% item in your model is ORE1, ORE2, ORE3, etc., the name of the ZONE item wouldbe ZONE and the name of the ore% item would be ORE; the program appends the 1,2,3 or 4 to findthe correct ZONE1, ZONE2, etc. item in the model. The user must also mark the number of zonespossible per block.

If the users model contains the optional model items for ore density for each zone (such asDEN1,2,3,4) the item name can be entered here.

If the ore% item was entered as a value between 0 and 1, check the fraction box; if it was enteredas a percentage, leave the box blank.

GRADE ITEMS:These are the items in your model that will be used for reporting.

There is also an option to omit outputting the first grade item to the 805/821 file. (i.e., it is only usedfor binning). This option is mainly used for creating 805/821 material classes from a range of ZONEcodes. For example, zones 1-25 might be LCAP, 26-50 OXIDE, 51-75 SUP, etc. The ZONE itemcan then be used as the 1st grade item and the appropriate material classes created without itshowing up in the 805/821 files.

WASTE/ORE CUTOFF:The user may choose an ore/waste cutoff for one of the grade items listed above. The user shouldalso enter the number of the associated grade item; 1 for the 1st, etc. For industrial minerals, checkthe box to have waste above a cutoff ; for most projects, the choice here would be to leave the boxblank to waste material below the cutoff.

Normally, any missing grade item in a block causes the entire zone to be wasted. The option TreatMissing grades as 0? within PITRES allows missing grades to be treated as a 0, thus diluting theother ore instead of toasting the zone from that block.

There is also an option available through the Zone Input File to use an ore/waste cutoff on eachgrade item. (see Zone Input File for format). The in situ grades are always used for the ore/wastecutoff tests regardless of whether in situ or diluted grades are being reported. If using an ore/wastecutoff test for multiple grade items, then the material is wasted for a zone if any one grade item failsits cutoff test.

REPORTING CUTOFFS:Reporting cutoffs for the first grade item can be entered. Reserves can optionally be reported withincutoff bins or cumulative above each cutoff. The cutoffs are used as a less than test. That is, if thecutoffs are 1.0, 2.0, 3.0 then the cutoff bins go from >=0 to =1 to =2 to =3.


Figure 2: second panel of PITRES.DAT.

WASTE / DENSITY INFORMATION:The density of waste and ore can be entered at the bottom of panel 2. Waste can be reported asvolume or tonnage.

Here is a sample of the second panel of PITRES.DAT, for a simple metals project without multiplezones.


Panel 3:

OPTIONAL MODEL WASTE ITEM:If the users model contains a waste item, the item name can be entered here. Also, the model canoptionally contain waste types. If using waste types, then the waste item must have a value between1 and 8. Names for each waste type can be entered in the first two boxes, four per box, and theirassociated densities in the lower two boxes. The report will use the first name if the waste item isequal to 1, the second if it equals 2, etc.

IN SITU / DILUTION PARAMETERS:The user can click on the box to report diluted grades or leave blank to report in situ grades. Thegrades output to the 805/821 scheduling file are based upon this selection. i.e., if diluted grades arereported, then diluted grades are output to the 805/821 file.

Dilution can be applied to the in situ or recovered ore for all blocks, or against the full block forore/waste contact blocks. A contact block is defined as a block that has more material in it than ore.i.e., topo% > total ore%. Also, if a zone in a block has a 0% recovery from the Zone Input File orits grades fail to pass the ore/waste cutoff tests, then it is considered a contact block. i.e., leach capmay be modeled but never mined as ore. When using contact dilution, the non-missing grades fromthe wasted zones over-ride the dilution grades from the Zone Input File and are weighted by thedensity of the material being wasted.

When using the dilution to contact blocks only option, the dilution % is based upon a full blockvolume rather than being applied against only the ore%. This allows consistent dilution quantityregardless of the amount of ore in the block. For example, if you want 5 feet of dilution on a 50 footbench, enter 10%. This means that each block that has an ore/waste contact with a total minableore >= a user specified minimum ore%, will get the same amount of dilution. The dilution for thisoption is only applied against the first recoverable zone.

PIT AND TOPO:If a topo item is entered, it will be used to determine whether blocks should be considered forreserves. Usually, the item is TOPO.

There is also an option as to whether to use the topo item or to set all blocks to 100% topo. Thisshould usually be used for regular DIPPER reserves as DIPPER works on a whole block basis so thatany block with topo < 50% isn't condensed and any block with topo >= 50% is. When the partialsare created from the DIPPER S-files, the block with < 50% doesn't exist. Thus, the idea is thattreating the blocks with topo >= 50% as 100% should balance out. If you are using a DIPPER S-Filefrom an M718V2 user subroutine (like DIP718) that takes partial topo blocks into account, then youMUST use the topo% for accurate reporting.

NOTE: Generally, running a non-M718V2 DIPPER reserve using topo% will underestimate the totalwaste in the pit.


Figure 3: last panel of PITRES.DAT.

TAKE ORE FIRST:There is an option to take ore first for surface blocks, or to take ore first for all blocks. If the ore hasbeen interpreted so that it is clipped at the topo, then you will want to make sure all the ore is minedfrom the surface blocks. The normal calculation is to take the block partial x topo and apply it to allmaterial types. For example, if the ore had been clipped at topo such that ore%=60 and topo%=80and 100% of the block was being mined, the normal method would be to mine 1.0 * 0.8 * 0.6 = 0.48for ore and 1.0 * 0.8 * 0.4 = 0.32 for the waste. This would mean 12% of the ore is accounted aswaste. If you use the ore first option, it takes all the ore (60%) first and the rest (20%) is waste. Thetake ore first for all blocks should be used when the pit bottom follows the foot wall of the ore. Thesame example as above could be used flipping the partial and the topo to 80% and 100%respectively.

REPORT:The user has options on how detailed a report is outputted, and whether to view it at the end of therun.

Here is an example of the last panel of PITRES.DAT.


Runfile Options for MTRES (PITRES M708V1 user subroutine):All of the above options which have been explained panel by panel correspond to IOPs and PARSin the 708 runfile which is generated. A summary of all these IOPS and PARS in the runfile is asfollows: ---------------------------------------------------------

PROGRAM NAME = MEDS-708V1 3 = Name of report file 10 = Project Control File 15 = 3-d Block Model File 29 = Zone Input File 28 = Reserves summary output file 24 = 805/821 scheduling output file

USR = USER INITIALS (A.B.C)

IOP1 = 1 /PARTIALS IN PCT FORMAT = 2 /PARTIALS IN FRAC FORMAT IOP3 = 2 /CALL USR708 BY ROW, @ END OF LEVEL & END OF RUN IOP4 = 0 /0=SUMMARIZE FROM PARTIALS; 1=ROW-COL AREA IOP5 = 1 0 /X1-->X2 IOP7 = 1 0 /Y1-->Y2 IOP9 = 1 /1=SET UP SCHEDULING OUTPUT FILE FOR USR708 IOP10 = 0 /OMIT SYMBOL MAP IOP11 = N /NUMBER OF GRADE ITEMS TO REPORT IOP12 = N /NUMBER OF ZONES PER BLOCK IOP13 = N /NUMBER OF CUTOFF BINS IOP14 = N /NUMBER OF DECIMAL PLACES FOR CUTOFFS (0 - 3) IOP15 = 0 /OUTPUT ALL GRADE ITEMS TO 805/821 FILE = 1 /OMIT FIRST GRADE ITEM FOR 805/821 (ZONE/MATERIAL CLASS ITEM) IOP16 = 0 /REPORT WASTE AS VOLUME = 1 /REPORT WASTE AS TONNAGE

IOP17 = 0 /DON'T OUTPUT 805/821 SCHEDULING FILE = 1 /OUTPUT 805/821 SCHEDULING FILE IOP18 = 0 /REPORT INSITU GRADES = 1 /REPORT DILUTED GRADES

IOP19 = 0 /APPLY DILN TO INSITU ORE = 1 /APPLY DILN TO RECOVERED ORE IOP20 = 0 /WASTE ORE BELOW PAR11 CUTOFF = 1 /WASTE ORE ABOVE PAR11 CUTOFF

IOP21 = 0 /TAKE PARTIAL*ORE% FOR ALL BLOCKS = 1 /TAKE ORE FIRST FOR BLOCKS WITH TOPO < 100% IE: ORE INTERPRETATION FOLLOWS OUTCROPS = 2 /TAKE ORE FIRST FOR ALL BLOCKS IE: PIT FOLLOWS ORE FOOTWALL IOP22 = 0 /PIT IS EXPANDED INTO THE AIR - TAKE TOPO * PARTIAL = 1 /PIT FOLLOWS TOPO - TAKE MIN(TOPO,PARTIAL)

IOP23 = 0 /USE ZONE INPUT FILE = 1 /DON'T USE ZONE INPUT FILE. IE: ZONES MUST BE BETWEEN 1-150 AND RECOVERY WILL BE 100%,DILN 0 IOP24 = 0 /USE ORE% ITEM = 1 /DON'T USE ORE% ITEM (DEFAULT TO 100% WHEN ZONE>0) IOP25 = 0 /USE TOPO IN NORMAL WAY = 1 /SET TOPO TO 100% FOR ALL BLOCKS (FOR DIPPER PITS)

IOP26 = 0 /USE ZONE ITEM = 1 /DON'T USE ZONE ITEM (USE CUTOFF GRADE FOR ZONING) IOP27 = N /GRADE ITEM TO USE FOR ORE/WASTE CUTOFF

IOP31 = 0 /APPLY DILUTION TO ALL BLOCKS = 1 /ONLY APPLY DILUTION TO ORE/WASTE CONTACT BLOCKS IOP32 = 0 /USE DENSITY IN ZONE INPUT FILE = 1 /READ A DENSITY ITEM FROM MODEL


IOP33 = 0 /DON'T USE WASTE MATERIAL TYPES = 1 /USE AND REPORT WASTE MATERIAL TYPES IOP34 = 0 /DON'T REPORT CUTOFF SUBTOTALS IN BENCH SUMMARY = 1 /REPORT CUTOFF SUBTOTALS IN BENCH SUMMARY

IOP35 = 0 /REPORT ALL DETAIL = 1 /REPORT SUMMARY SECTIONS ONLY = 2 /REPORT TOTALS AND BENCH SUMMARY AT END OF EACH BENCH IOP36 = 0 /REPORT TONS AND GRADE WITHIN CUTOFF BIN = 1 /REPORT CUMULATIVE TONS & GRADE ABOVE CUTOFF

IOP37 = 0 /TREAT MISSING GRADES AS WASTE = 1 /TREAT MISSING GRADES AS 0

PAR7 = DEFAULT DENSITY OF ORE(DEFAULT=2.50 FOR METRIC,12.82 FOR IMP) PAR8 = 1. IF ORE IS FRACTION = 0.01 IF ORE IS PCT PAR9 = FACTOR FOR REPORTING (IE 000S WOULD BE 0.001)(DEFAULT=1.0) PAR10 = DENSITY OF WASTE (DEFAULT=2.50 FOR METRIC,12.82 FOR IMP) PAR11 = ORE/WASTE CUTOFF GRADE (ON 1ST GRADE ITEM) PAR12 = GRADE CUTOFF 1 PAR13 = GRADE CUTOFF 2 PAR14 = GRADE CUTOFF 3 PAR15 = GRADE CUTOFF 4 PAR17 = MINIMUM ORE% IN A CONTACT BLOCK FOR DIL'N TO BE APPLIED

GET15=TOPO (WTYPE) ZONE1 ORE1 (DENS1) GRADES (SAME FOR ZONE2,ZONE3 IF APPLICABLE)

END NAMES OF GRADE ITEMS FILENAME OF PARTIALS FILE DENSITIES OF WASTE TYPES NAMES FOR SCHEDULING CUTOFF LABELS FILENAME OF PARTIALS FILE


PROGRAM SUMMARY - PITINC/MTINC:PITINC is used to determine the incremental reserves between two Reserve Summary Filesgenerated from PITRES. It can also be used to add two Reserve Summary Files together, or torecreate the reserves reports for 1 summary file. Using one summary file also allows for differentreporting options from the same summary file,. i.e., reporting cumulative grades versus within bins,summary only, etc. The user supplies the filenames of the two input Summary Files and the nameof the optional Zone Input File.

The user also supplies the name of the output Reserve Summary and the output 805/821 ScheduleFile. The output Reserve Summary File can then be used in subsequent PITINC runs. The ScheduleFile can be used as input to the M805V1 or M821V1 scheduling programs.

If you use the "take ore first" option from PITRES, then you should always use PITINC forincremental reserves rather than larger pit minus smaller pit feature codes from PITRES. This willensure that there is no double accounting of the ore.

PITINC runs:MTINC using RUNINC.TMP to generate a reserves report, Schedule File, and a new ReservesSummary File based upon two input Reserve Summary Files


Runfile Options for MTINC (PITINC program) ------------------------------------------

PROGRAM NAME = MEDS-MTINC 3 = Name of report file 10 = Project Control File 15 = 3-d Block Model File 29 = Zone Input File 27 = Reserve summary input file for larger pit 28 = Reserve summary input file for smaller pit (optional) 31 = Reserves summary output file 24 = 805/821 scheduling output file (optional)

USR = USER INITIALS (A.B.C)

IOP2 = 0 SUBTRACT THE RESERVE SUMMARY FILES = 1 ADD THE RESERVE SUMMARY FILES TOGETHER = 2 USE LARGER PIT ONLY

IOP11 = NUMBER OF GRADE ITEMS (SET BY PROGRAM FROM SUMMARY FILE) IOP13 = NUMBER OF CUTOFF BINS (SET BY PROGRAM FROM SUMM FILE) IOP14 = NUMBER OF DECIMAL PLACES FOR CUTOFF

IOP15 = 0 /OUTPUT ALL GRADE ITEMS TO 805/821 FILE = 1 /OMIT FIRST GRADE ITEM FOR 805/821 (ZONE/MATERIAL CLASS ITEM) IOP16 = 0 /REPORT WASTE AS VOLUME (SET BY PROGRAM FROM SUMM FILE) = 1 /REPORT WASTE AS TONNAGE IOP17 = 0 /DON'T OUTPUT 805/821 SCHEDULING FILE = 1 /OUTPUT 805/821 SCHEDULING FILE IOP18 = 0 /REPORT INSITU GRADES (SET BY PROGRAM FROM SUMM FILE) = 1 /REPORT DILUTED GRADES IOP23 = 0 /USE ZONE INPUT FILE = 1 /DON'T USE ZONE INPUT FILE. IOP33 = 0 /DON'T REPORT WASTE TYPES (SET BY PROGRAM FROM SUMM FILE) = 1 /REPORT WASTE TYPES IOP34 = 0 /DON'T REPORT CUTOFF SUBTOTALS IN BENCH SUMMARY = 1 /DO IOP35 = 0 /REPORT ALL DETAIL = 1 /REPORT TOTALS ONLY = 2 /REPORT TOTALS AND BENCH SUMMARY AT END OF EACH BENCH IOP36 = 0 /REPORT TONS AND GRADE WITHIN CUTOFF BIN = 1 /REPORT CUMULATIVE TONS & GRADE ABOVE CUTOFF

PAR9 = FACTOR FOR REPORTING (IE 000S WOULD BE 0.001)(DEFAULT=1.0)

PAR12 = GRADE CUTOFF 1 (SET BY PROGRAM FROM SUMM FILE) PAR13 = GRADE CUTOFF 2 PAR14 = GRADE CUTOFF 3 PAR15 = GRADE CUTOFF 4 END


The following are sample panels for reserves done for a pit having multiple zones (LITH1, LITH2)and multiple ore% items (ORE1,ORE2) with a zone input file specified.


Sample Zone Input File ZONE.INP:

#Zone Zone# Dens Yield% Recov% Diln% Diln Dens Diln grades,cutoffs,cut flags#Name P1 1 2.7 100. 95. 3.0 P2 2 2.7 100. 95. 3.0 P3 3 2.7 100. 95. 3.0 Q1 11 2.7 100. 95. 3.0 Q2 12 2.7 100. 95. 3.0 WSTE -3 2.5 100 100 0.0

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