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Mine Plant Design

2016/2017
Coordinator: Dr. Teuku A.R. Putra

GEOLOGICAL DATA
This is a copper deposit, approximately 2200-m long ~200-m wide, 1900-m high and is buried
by about ~900-m of overburden. The dip is about 750 – 800.

The ore is strong and moderately fractured; the waste rock is weak and highly fractured.
The fracture spacing in the ore zone is wide and it is very wide in the footwall and wide in the
hanging wall host rock. Fracture strength is moderate in the ore zone and weak in the hanging-
wall and moderate in the footwall.

The following figure shows the structure of the existing open pit mine and future underground
orebody.

~700 m
Mined-out

~500 m
~800 m
~1500 m
~1550 m

Pillar
(low grade)

~900 m
New orebody
(high grade)

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To develop the geometry model of the mineralization zone the engineering team work have
created a block model with the following characteristics:

Block size : 25 x 25 x 25 m
Total Block model dimension : 625 x 625 x 625 m
Origin: : E: 60,400; N: 37,500; Elevation: 5,800

N
Elevation
E

Origin

Block Model
Statistics Data:
Average : 2.71 Cu%
Min. : 1.65 Cu%
Max : 3.24 Cu%
Std : 0.6814
Blocks : 1,944

The tonnage factor for this mineral is 12.5 m3/ton. The table below shows the total resource and
its distribution by sub levels. Each block contain of 10,000 tons of ore.

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Sub Level Name Sub Level High Number of
(m) (m) Blocks Cu%
7100 50 23 2.69
7050 50 37 2.71
7000 50 40 2.85
6950 50 47 3.2
6900 50 65 3.24
6850 50 88 3.12
6800 50 121 3
6750 50 152 2.91
6700 50 155 2.79
6650 50 150 2.67
6600 50 143 2.58
6550 50 137 2.56
6500 50 104 2.69
6450 50 71 2.75
6400 50 71 2.89
6350 50 90 2.76
6300 50 80 2.74
6250 50 70 2.58
6200 50 55 2.48
6150 50 55 2.42
6100 50 50 2.26
6050 50 43 2.21
6000 50 42 2.06
5950 50 28 1.99
5900 50 17 1.77
5850 50 10 1.65

MAIN QUESTION
The company has decided to continue the mining of this orebody due to increase in copper price
($/kg). The team of mining and geological engineers has two options to evaluate. These are:

Option 1  Continue with the open pit operation: As one of the options, they would like to
know how far they can go with the existing pit operation (see dashed lines in the structure of
orebody figure) and then switch to underground operation…

Option 2  Continue with an underground operation: Due to an extensive drillhole program


and detailed reserve calculations, geologists believe that this new orebody has very high grade
distribution than they have been mining with the open pit operation (see dashed lined area). So,

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mining engineers have decided that they should also look into an underground operation without
extending the existing pit operation....in other words, switch to underground operation, right
now…can we do that?...well, you will decide that…

Your task is to evaluate this new high-grade orebody with an underground operation based
on the figure given.

REQUIRED SUB-TASKS FOR THE MAIN QUESTION GIVEN ABOVE


1. Select a mining method based on the geometry of the orebody/Mineralization zone. You can
rank the potential underground mining methods by using the method out lined by Nicholas.

2. Describe the mining method you choose. It will cover the description of the method, the
development, the longhole drilling and ore handling.

3. Layout your primary developments based on your mining method.

4. Layout your developments for each production level based on the mining method you chosen.

5. Size the crew for each development and production aspect of your operation.

6. Select the appropriate equipment for development and production operations Equipment
selection for development and production is NOT picking them up from a catalog. You need to
justify why you decided to use that particular equipment. For example, can be used for LHDs.

7. Based on the mining method you selected, sequence the development and production
operations (This also includes possible mineable reserve calculations for stopes).

8. Based on the sequencing and scheduling of development and production operations, determine
your daily production (tons/day). (This will require a little bit research)

9. Based on the data given and your knowledge, do mineral processing plant layout,
refinery/extractive metallurgy plant layout and their process flow chart with the equipment
selection till the final product.

10. In case the location of the orebody is within close proximity to town with many population.
Analyze some environmental and social impacts of the project.

11. Do the pre-feasibility study for this orebody stated in your conclusion: should we mine it? Or
should we just walk away?

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REQUIRED REPORT CONTENT
The term project should be submitted in the form of a technical report to the project manager for
the mine planning and design group. The report should include the following:

Report cover page – title, names and etc.


Table of Contents
Executive Summary
1. Introduction – general description of the project, etc…
2. Description of the block model such as statistical analysis, mineral resource calculation for
the entire orebody, plots to show a typical grade distribution on any plan, grade shells to show
grade distribution 3D, etc…(if you do this part with SURPAC, there will be an extra point).
Basic block models are provided in this assignment. Use the block model given to do the all
analysis above.
3. Description of the underground mining method that you selected (including general mine
layout) and comparison with existing underground mines to come up with a realistic daily
production rate and mill capacity based on your mine layout, ore transportation type, etc.
4. Description of the primary developments, and also method and equipment used for excavation
of primary developments.
5. Description of the developments for production levels, and also method and equipment used
for excavation.
6. Description of the crew and shift schedule for developments and production (this section can
also be included in section 4 and 5).
7. Description of the production operation and equipment used based on your mine layout.
8. Description of mineral processing flow chart and refinery/extractive metallurgy flow chart
with justification for all processing equipment you select.
9. Economical analysis of the entire operation (e.g. NPV, etc…)
10. Appendixes (drawings, plans, etc., including references)

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Executive Summary

This report is for design and feasibility study of developing the new copper mine. The given
copper deposit has been analyzed to determine the possibility of opening a new underground
mine. The Mineral Resource is 19.4 MM tones with 2.71 % of copper.

The mining method selected is sublevel caving and the production rate is 7,500 tpd. With
this mine production the mining company will deliver 53,300 tones of metal copper per year
during four years.

Because the time to develop the whole deposit the mine will be split in two phases the
fist phase cover the upper levels until the 6550 level and the Phase 2 the lower levels until the
5850 level. The development for the Phase 1 is ready to production in the month 26.4. The
Phase 1 of the Shaft is finished on the month 38. To this time the mine will have 5 years of
production prepared. The development of the Phase 2 ends the month 46. After this time the
mine will be only in production for the remaining 61 months.

The Capital Cost of the project is $89.5 MM and the Production Cost is $23.80 per ton of
ore processed.

The after tax cash flow analysis reports an NPV of $$58 MM and an ATCFROR of 26%.
This result indicated the feasibility of the project.

For this reason, it is recommended follow the project and try to increase the reserve to
continuing mining the deposit.

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1. Introduction

A detailed feasibility study has been conducted of the orebody, and a mining plan has been
prepared. After examining a number of alternatives, and using Nicholas Method (1981) to select
the appropriate mining method, sub level caving was selected as the preferred mining method.

Mine development plan has been prepared and preliminary mine drawings created. A full three
dimensional model of the required development was created. Major facilities were scoped ant a
budgetary level only (no detail arrangement created) using cost information for similar facilities
at other underground mine and from Western Mining Handbook (2006). The capital cost
estimates were consolidated, and the critical path method was used to optimize the time
schedule.

Detailed estimates were prepared of the equipment, manpower, and operating cost
requirements over the life of the orebody. These estimates, combined with the capital cost
estimates, were used to create a cash flow model for the proposed mine plan.

The cash flow model shows detailed revenue, operating and capital cost projections. An after-
tax cash flow is produced, and the ROR and NPV are calculated.

The project promises a strong economic return, and allows the mill to return to full capacity,
which should lower its current operating cost.

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2. Geology

This is a copper deposit, approximately 2200-ft long ~200-ft wide, 1900-ft high and is
buried by about ~900-ft of overburden. The dip is about 750 – 800.

The ore is strong and moderately fractured; the waste rock is weak and highly fractured.
The fracture spacing in the ore zone is wide and it is very wide in the footwall and wide in the
hanging wall host rock. Fracture strength is moderate in the ore zone and weak in the hanging-
wall and moderate in the footwall.

The following figure shows the structure of the existing open pit mine and future
underground orebody.

~700 ft
Mined-out

~500 ft
~800 ft

Pillar
(Low grade)
~1250 ft
New Mineralization Zone
(High grade)

Figure 1: Location of the New Orebody

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3. Mineral Resource

a) Block Model Characteristics


To develop the geometry model of the mineralization zone the engineering team work
have created a block model with the following characteristics:

Block size: 25 x 25 x 25 ft
Total Block model dimension: 625 x 625 x 625 ft
Origin: E: 60,400; N: 37,500; Elevation: 5,800

N
Elevation
E

Origin

Figure 2: Block Model


The main statistics values are the follow:
Table 1: Statistics Data
Averag. = 2.71 Cu%
Min. = 1.3 Cu%
Max. = 6.9 Cu%
Std. = 0.6814
Blocks = 1,944

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The Tonnage Factor for this mineral is 12.5 cu.ft / ton. The table 2 shows the total
resource and its distribution by sub levels.

Table 2
Mineral Resource
Distribution of Cu% by Sub-level
Sub-level Sub-level Number of Tonnage
Cu%
name (ft) high (ft) Blocks (ton)
7100 50 23 230,000 2.69
7050 50 37 370,000 2.71
7000 50 40 400,000 2.85
6950 50 47 470,000 3.20
6900 50 65 650,000 3.24
6850 50 88 880,000 3.12
6800 50 121 1,210,000 3.00
6750 50 152 1,520,000 2.91
6700 50 155 1,550,000 2.79
6650 50 150 1,500,000 2.67
6600 50 143 1,430,000 2.58
6550 50 137 1,370,000 2.56
6500 50 104 1,040,000 2.69
6450 50 71 710,000 2.75
6400 50 71 710,000 2.89
6350 50 90 900,000 2.76
6300 50 80 800,000 2.74
6250 50 70 700,000 2.58
6200 50 55 550,000 2.48
6150 50 55 550,000 2.42
6100 50 50 500,000 2.26
6050 50 43 430,000 2.21
6000 50 42 420,000 2.06
5950 50 28 280,000 1.99
5900 50 17 170,000 1.77
5850 50 10 100,000 1.65
Total Resources 1,944 19,440,000 2.71

This result is used to evaluate the production rate and the mine life of the new
underground mine.

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4. Selection of the Mining Method

After report the Mineral Resource the next step in the analysis is to select the mining method to
use. In this case Nicholas Method was used to define it.

A. Geometry/Grade Distribution
1. Ore thickness
The ore thickness of the copper deposit is categorized as thick as it is 2200 ft long, 200
ft wide and 1900 ft high and is buried by about ~900 ft of overburden. The Nicholas Method
suggested that the thick category is in between 100 ft -325 ft.
2. The plunge
The plunge is steep because the dip is 75°- 80° and based on the method this range is
above 55° therefore it is categorized as steep.
B. ORE ZONE
1. Rock substance strength
The rock substance strength is strong which is above 15 and it is calculated from
uniaxial strength (Pa) divided by the overburden pressure (Pa). The waste rock is weak and
highly fractured.
2. Fracture spacing
The fracture spacing is wide which is between 1 – 3 fractures/ft
3. Fracture strength
The fracture strength is moderate which means a clean joint with a rough surface in the
ore zone and weak in the hanging wall and moderate in the foot wall.
C. FOOT WALL
1. Fracture spacing
The fracture spacing is very wide which means less than 1 fractures/ft
2. Fracture strength
The fracture strength is moderate which means a clean joint with a rough surface.
D. HANGING WALL
1. Fracture spacing
The fracture spacing is wide which is between 1 – 3 fractures/ft

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2. Fracture strength
The fracture strength is weak which means a clean joint with a smooth surface of fill with
material whose strength is less than rock substance strength.

As a result, the mining method to select is Sublevel Caving. This method is ranked with
30 points, which is the higher.

Table 3: Nicholas Methods to Select the Mining Method to Use


Rock
Fracture Fracture Ore
Ore Zone Substance Ore Plunge
Strenght Spacing Thickness SUM
Strength
MINING METHOD Strong Moderate Wide Steep Thick
Block Caving 1 3 3 4 2 13
Sublevel Stoping 4 2 1 4 4 15
Sublevel Caving 3 2 4 4 4 17
Longwall 0 3 0 -49 -49 -95
Room and Pillar 4 2 2 0 -49 -41
Shrinkage Stoping 4 2 3 4 4 17
Cut and Fill 2 3 2 4 0 11
Top Slicing 3 2 2 2 3 12
Square Set 1 3 2 3 1 10

Hanging Wall Foot Wall


Fracture Fracture Fracture Fracture SUM
MINING METHOD
Strenght Spacing Spacing Strength
Weak Wide Very Wide Moderate
Block Caving 4 3 3 3 13
Sublevel Stoping 0 1 4 1 6
Sublevel Caving 4 3 4 2 13
Longwall 4 3 3 3 13
Room and Pillar 0 2 3 3 8
Shrinkage Stoping 4 3 2 2 11
Cut and Fill 4 2 2 4 12
Top Slicing 4 3 3 2 12
Square Set 4 2 2 4 12

Ore Zone Hanging Wall &


MINING METHOD TOTAL
Sum Foot wall
Block Caving 13 13 26
Sublevel Stoping 15 6 21
Sublevel Caving 17 13 30
Longwall -95 13 -82
Room and Pillar -41 8 -33
Shrinkage Stoping 17 11 28
Cut and Fill 11 12 23
Top Slicing 12 12 24
Square Set 10 12 22

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5. Mining Method Description

Sublevel caving adapts to large orebodies, with steep dip and continuation at depth. The
hanging wall shall fracture and collapse, to follow the cave. Ground surface on top of the
orebody permitted to subside.
Caving requires a rock mass where both orebody and host rock fractures, under controlled
conditions. As the mining removes rock without backfilling, the hanging wall keeps caving into
the voids. Continued mining results in subsidence of the surface where sink holes may appear.
Continues caving is important, to avoid creation of cavities inside rock, where a sudden collapse
could be harmful to mine installations.

a) Description
Sublevel caving extracts the ore via sublevels, which are developed in the orebody at
regular vertical spacing. Each sublevel features systematic layout with parallel drifts, along or
across the orebody. In the wide orebody, sublevel drifts start from the footwall drive, to continue
across, reaching the hanging wall. In the orebody lesser width, sublevel drifts are branched off
in both directions, from a centre crosscut drive.

b) Development
Development volume to prepare sublevel caving is extensive, compared to other mining
methods. However, development is mainly drifting to prepare sublevels. Drifting is a simple and
routine job for the mechanized mine. Development of sublevels is done efficiently, in an
environment of multiple faces on one sublevel available to drill rigs and loaders.

A ramp connection is needed to connect different sublevels, and communicate with main
transport routes. Ore passes are also required, at strategically locations along sublevels, for
LHD-loaders to dump ore from sublevels, to be collected and transported on the haulage level
below.

A drawing showing sublevel drifts is close to identical for every second sublevel. This
means that drifts on N° 1 sublevel are positioned right on top of drifts on sublevel N° 3. Drifts on
sublevel N° 2 are located underneath the pillars between drifts on sublevels 1 and 2. A section
through the sublevel area will show drifts spread across the orebody, in a regular pattern, both

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in vertical and horizontal projections. The diamond shaped area which can be traced above one
drift indicates the ore volume to be recovered from each drift.

Figure 3: Mining by Sublevel Caving

c) Longhole drilling
Longhole rigs drill the ore section above the drift, in a fan spread pattern. Longhole
drilling is a procedure which is done independent of other jobs, often well ahead of charging.
Thus, drilling and charging-blasting longholes can be timed to suit the mine’s production
schedules. Blasting on each sublevel starts at the hanging wall, mining then retreats toward the
footwall. Miners aim the cave to follow an approximately straight front, and adjacent drifts mined
at similar pace.
Blasting the longhole fan breaks the ore volume covered by the fan-pattern. As the cave
is filled with fractured rock, most of the fresh ore remains in the cave, while some caves into the
drift opening. Mucking out with LHD-loaders creates a cave pattern of ore and waste from

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above. Loading continues until the operator decides that waste dilution is too high, and stops
the mucking, and transfers to a nearby drift heading with a fresh cave. In the meantime, the
empty heading is occupied by the charging team, to charge next ring of longholes.

d) Ore handling
Ore handling involves mucking out at the cave, transport on sublevels and dumping into
ore passes. Conditions are ideal for LHD-loaders. Sublevels are designed with tramming
distances matched to particular sizes of LHD-loaders. Mucking out is, like the other procedures
in sublevel caving, very efficient. The loader can be kept in continuous operation. When one
face is mucked clean, the loader moves nearby drift heading, and continue mucking.
Waste dilution and ore losses are drawbacks for sublevel caving. Waste dilution varies between
15 and 40%, ore losses from 15 % to 25 %, depending on local conditions.
Dilution is of less influence for orebodies with diffuse boundaries, where the host rock contains
low grades minerals. Likewise for magnetite ores, which are upgraded by simple magnetic
separators. Sulphides, in contrast, are refined by costly flotation processes.

Sublevel caving is schematic, and repetitive, both in layout and working procedures.
Development drifting, production drilling of long holes, charging, blasting and mucking out are all
carried out separately. Work taking place at different levels allows each procedure carried out
continuously, without disturbing others. There is always a place for the machine to work.
Altogether, factors which qualifies sublevel caving to a method which integrates mechanization
into efficient ore production, comparing with industrial processes.

Waste dilution and ore losses are the drawbacks for sublevel caving. Extensive scientific
investigations have been made, to determine the ore flow in the cave, to identify means to
reduce ore losses and minimize waste dilution. We refer to professional literature for details of
investigations and operational records. Research programs have made sublevel caving a high-
tech mining method.

6. Production Rate Analysis

a) Methodology
To select the possible production rate of the mine the first task was to search other
mines which use the same mining method.

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The Table 4 describes three copper mines which use sublevel caving as production
methods. The average daily production is 5,760 tpd, and the average copper grade is 2.67%.

Table 4
Sub-level Caving Mine Production References
Daily Mine Copper
Annual Mine Mill Grades Recoveries Metal
Mine Production
Production Concentrate production
(360dpy)
kton ton Cu% % Cu% kton
Konkola 1,889 5,247 2.74% 86% 42% 43.53
Louvicourt 1,586 4,406 3.64% 95% 28% 52.27
Mufulira 2,746 7,626 2.06% 96% 46% 52.15
Total 6,221 17,279 2.67% 93% 40% 156.17
Average 2,074 5,760 2.67% 93% 40% 49

Based on the examples found two scenarios have been compared (5,000 tpd and 7,500
tpd). To make the initial evaluation the input was the Mineral Resource, assuming 30% of
dilution and 90% of mining recovery the total tonnage recovery and diluted was calculated. The
next step was to compare the mine life for each of the given scenarios.

b) Production Rate Analysis Result


The result is showed in the Table 5:

Table 5
Production Rate Analysis
Total Resources (ton) 19,440,000 19,440,000
Dilution Assumed 30% 30%
Mining Recovery Assumed 90% 90%
Total Mineral Tonnage 22,744,800 22,744,800
Daily Mine Production (ton) 5,000 7,500
Annual Mine Production (ton) 1,800,000 2,700,000 (360 days)
Mine Life (years) 12.6 8.4

For these production rates the mine life would be 12.6 years and 8.4 years respectively.
But, to assure the feasibility an initial economic analysis is required. The concept in this phase is
to figure out how much profit or economical margin it is possible to reach along the project life.

The Table 6 shows the possible margin (the effect of the time over the money value is
neglects in this first phase).

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Table 6
Production Rate Analysis
Mineral Value
Metal Price ($/ton) 3475 3475 (10 years Average from 2000)
Metal Price ($/lb) 1.738 1.738
Smelter Charge
Concentrate ($/ton) 75.0 75.0
Smelting ($/lb) 0.075 0.075
Freight ($/ton) 80 80.0
Mineral grade 2.08% 2.08%
Concentrate grade 30% 30%
Tailing grade 0.21% 0.21%
Recoveries 90% 90%
Concentrate Ratio 16.0 16.0
Estimated Milling Cost ($/ton) 8.82 8.83
Mineral Value ($/ton) 43.87 43.86
Estimated Mining Cost ($/ton) 21.71 14.60
Margin ($/ton) 22.16 29.26
Total Margin Value (millions $) 503.99 665.60
Estimated Capital Cost (millions $) 79 101
Margin (millions $) 424.99 564.60
Daily Mine Production (ton) 7,500
Mine Life (years) 8.4

Source: InfoMine USA, Inc.

Finally, the 8.4 years mine life has the higher margin. Also, the mine life is higher than 7
years, which is the numbers of years in which the capital cost associated with the equipment
can be depreciated according to the Modified Accelerated Cost Recovery System (MACRS)
accepted by the U.S. Department of the Treasury.

This step is the first to start the design of the mine, the equipment selection and the
production schedule, which will be used to recalculate the ore reserve and the final economic
evaluation of the project.

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7. Ore Reserve Calculation

The table 7 shows input data to calculate the ore reserve:


Table 7
Imput Data to Calculate Reserves
Metal Price ($/ton) $3,475
Metal Price ($/lb) $1.74
Smelter Charge
Concentrate ($/ton) $75.00
Smelting ($/lb) $0.075
Freight ($/ton) $80.00
Mining Recovery 90%
Concentrate grade 30%
Tailing grade 0.21%
Recoveries 90%
Concentrate Ratio 16.0
Estimated Milling Cost ($/ton) 8.83
Estimated Mining Cost ($/ton) 11.12

The cut off is 0.99 % of Cu


The reserve summary is showed in the table 8 and the table 9 shows the level by level
reserve.
Table 8: Reserve Summary

SUMMARY

Volume Tons CU% LbsCu

ORE 4257285 9195741 2.596 477,559,330


WASTE 313796 677480 0.000 0
DILUTION 425730 919571 0.000 0
4,996,811 10,792,792 2.212 477,559,330
----------- --------------- ---------- ---------- ---------
ORE+WASTE 4571081 9873221 2.418 477,559,330
DILUTION 425730 919571 0.000 0
----------- --------------- ---------- ---------- ---------
TOTALS 4,996,811 10,792,792 2.212 477,559,330

T.F. 12.5
CU% Cutoff 0.99 $/lb

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Table 9: Level by Level Reserve

CATEGORY ORE WASTE DILUTION

Volume Tons CU% LbsCu Volume Tons Volume Tons


Sublevels(26)

5850 22,687 49,005 1.71 1,680,570 6,352 13,720 2,269 4,901


5900 35,321 76,293 1.84 2,810,250 3,245 7,010 3,532 7,629
5950 58,000 125,280 2.06 5,160,095 9,301 20,090 5,800 12,528
6000 71,138 153,657 2.20 6,746,507 2,579 5,570 7,114 15,366
6050 137,317 296,604 2.22 13,190,240 843 1,820 13,732 29,660
6100 1,483 3,204 2.60 166,608 0 0 148 320
6150 134,383 290,268 2.40 13,939,901 8,190 17,690 13,438 29,027
6200 162,150 350,244 2.56 17,942,833 14,380 31,060 16,215 35,024
6250 187,800 405,648 2.77 22,504,518 12,481 26,960 18,780 40,565
6300 202,988 438,453 2.90 25,436,124 7,495 16,190 20,299 43,845
6350 205,746 444,411 2.88 25,557,277 24,773 53,510 20,575 44,441
6400 205,871 444,681 2.81 24,981,654 30,389 65,640 20,587 44,468
6450 236,854 511,605 2.73 27,967,211 32,315 69,800 23,685 51,160
6500 294,629 636,399 2.64 33,546,130 31,338 67,690 29,463 63,640
6550 377,712 815,859 2.46 40,125,782 25,065 54,140 37,771 81,586
6600 365,012 788,427 2.40 37,870,921 18,037 38,960 36,501 78,843
6650 333,167 719,640 2.39 34,470,076 22,829 49,310 33,317 71,964
6700 283,108 611,514 2.47 30,266,294 7,069 15,270 28,311 61,151
6750 247,408 534,402 2.60 27,740,787 14,245 30,770 24,741 53,440
6800 208,233 449,784 2.74 24,614,765 11,347 24,510 20,823 44,978
6850 167,075 360,882 2.95 21,327,080 16,579 35,810 16,708 36,088
6900 122,762 265,167 3.07 16,288,111 10,398 22,460 12,276 26,517
6950 89,108 192,474 2.85 10,952,458 2,097 4,530 8,911 19,247
7000 64,987 140,373 2.65 7,433,208 745 1,610 6,499 14,037
7050 34,771 75,105 2.63 3,955,194 778 1,680 3,477 7,510
7100 7,575 16,362 2.70 884,736 778 1,680 758 1,636

4,257,285 9,195,741 2.596 477,559,330 313,648 677,480 425,730 919,571

This report will been used to project the production schedule. But it is important to
realize that the reserve is 19,440,000 tons and the reserve is 10,792,792 tons. This means that
through the development the resource would change the category to reserve.

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8. Underground Mine Design

8.1 Development
a) Access
The mine will have two accesses. One ramp has be designed to develop the sublevels
and to reach the bottom of the main shaft and ore passes, where the raise bore machine will be
placed to build these infrastructure. And a main shaft to hoist the mineral and waste to surface.
The ramp section is 15ft x 15 ft and 12% slope. The average cost per foot is $312, with
12 ft advanced ratio per shift (Table 11).

Figure 5: Ramp Section and Blasting Pattern

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Table 11: Ramp Specifications and Cost Estimation
Ramp Specifications Ramp: Cost Summary
Dimension Drilling, Explosive & Blasting Supplies
Height 15.00 ft Explosives: 51.46
Width 15.00 ft Blasting Supplies: 28.59
Vertical length 2,175.00 ft Drill Bits: 18.75
Slope 12% Drill Steel: 0.98
Length 18,125 ft Rock Support Supplies
Drilling Drill Bits: 3.15
Hole length 13.00 ft Drill Steel: 0.17
Advance per round 12.00 ft Grouted resin bolt 26mm 9.02
Holes per round 54.00 Utilities 7.50
Tonnage Factor 12.50 ft/ton Shotcrete 33.53
Overbreak 5% Equipment 12.82
Tons per round 227 tons Labor 147.53
Rock Support Total direct operating cost 313.50 $/ft
Bolt type Grouted resin bolt 26mm
Bolt length 6.00 ft
Hole length 7.00 ft
Spacing 4.00 ft
Bolts per Round 12.00
Normal Work Shift
Shifts per day 2
Hours per shift 8 hr

The mine hoist system considers one drum-type hoist with mechanicals, electrical drive
and control systems, with two skips in balance and hoisting vertically from all levels. The shaft
section is 12 ft wide by 36 ft long divided in three compartments of 12ft by 12 ft, where two skips
and one stairs access is placed for maintenance and supervision propose.
The hoist system will use in two phases. The first to hoist mineral from the 6650 Level to
surface and the second from the 5800 Level to surface. In both cases haulage levels will place.
The arrangement of these compartments is showed in the figure 6.

SKIP 1 SKIP 2 ACCESS 12ft

12ft

36 ft

Figure 6: Plan Shaft Layout

42
b) Sublevel Drift and Haulage Level Drift
The drifts are driven from the ramp with positive slope of 1% to drainage the water
during the development and production phases. The section is 15ft by 15ft. The equipment to
use are Jumbos with two booms and hydraulic hammers, LHD diesel with 8 cu.yd bucket
capacity, rock bolters, ANFO loaders, and 31 tons trucks capacity, which haul the waste to
surface. The figure 7 shows the drift section and the blasting pattern.

Figure 7: Sublevel Drift Section and Blasting Pattern

The cost per foot advanced is $312. Like the ramp, the drift will require grouted resin bolt
and rock shotcrete to support the roof. This work will be making with rock bolters and
shotcreters. The specification and the cost summary are given in the table 12.

43
Table 12: Drift Specifications and Cost Estimation
Drift Specifications Drift: Cost Summary
Dimension Drilling, Explosive & Blasting Supplies
Height 15.00 ft Explosives: 51.46
Width 15.00 ft Blasting Supplies: 28.59
Vertical length 2,175.00 ft Drill Bits: 18.75
Slope 12% Drill Steel: 0.98
Length 18,125 ft Rock Support Supplies
Drilling Drill Bits: 3.15
Hole length 13.00 ft Drill Steel: 0.17
Advance per round 12.00 ft Grouted resin bolt 26mm 9.02
Holes per round 54.00 Utilities 7.50
Tonnage Factor 12.50 ft/ton Shotcrete 33.53
Overbreak 5% Equipment 12.82
Tons per round 227 tons Labor 147.53
Rock Support Total direct operating cost 313.50 $/ft
Bolt type Grouted resin bolt 26mm
Bolt length 6.00 ft
Hole length 7.00 ft
Spacing 4.00 ft
Bolts per Round 12.00
Normal Work Shift
Shifts per day 2
Hours per shift 8 hr

c) Crosscuts

Figure 8: Sublevel Drift Section and Blasting Pattern


The crosscut follows the geometry defined in accord to the methodology given by
RUDOLF KVAPIL (Mining Engineering Handbook, page 1808). The average cost is $271/ft.

44
Frictional rock bolts are used as rock support. Because the crosscut is droved over ore, this
activity doesn’t use trucks.

Table 13: Crosscut Specifications and Cost Estimation


Crosscut Specifications Crosscut: Cost Summary
Dimension Drilling, Explosive & Blasting Supplies
Height 12.00 ft Explosives: 43.91
Width 16.00 ft Blasting Supplies: 24.39
Crosscut Length 231 ft Drill Bits: 18.75
Slope 1% Drill Steel: 1.97
Length 23,100 ft Rock Support Supplies
Drilling Drill Bits: 3.15
Hole length 13.00 ft Drill Steel: 0.17
Advance per round 12.00 ft Frictional rock bolt set (6 ft - 1 3/4 10.30
Holes per round 58.00 Utilities 7.50
Tonnage Factor 12.50 ft/ton Equipment 12.82
Overbreak 5% Labor 147.53
Tons per round 194 tons Total direct operating cost 270.50 $/ft
Rock Support
Bolt type Split set
Bolt length 6.00 ft
Hole length 7.00 ft
Spacing 4.00 ft
Bolts per Round 12.00
Normal Work Shift
Shifts per day 2
Hours per shift 8 hr

d) Ore Passes
Four ore passes has been designed. These ore passes are divided in two groups of two
and it are located in such arrangement that the ore body is split in three horizontal zones, each
zone with about 600 ft long. Each ore pass has 9 ft of diameter. A raise bore machine is used to
develop each ore passes.

Table 14: Ore Passes


Total
Ore Passes Section From To
length (ft)

OP1 Phase 1 9 x 9 SL 7100 SL 6550 550


OP2 Phase 1 9 x 9 SL 7100 SL 6550 550
OP3 Phase 1 9 x 9 SL 6900 SL 6550 550
OP4 Phase 1 9 x 9 SL 6900 SL 6550 550
OP2 Phase 2 9 x 9 SL 6550 SL 5800 750
OP2 Phase 2 9 x 9 SL 6550 SL 5800 750
OP2 Phase 2 9 x 9 SL 6550 SL 5800 750
OP2 Phase 2 9 x 9 SL 6550 SL 5800 750

45
e) Haulage Levels
There are two haulage levels in the mine; the 6550 Level and the 5800 Level with
section of 15ft by 15 ft. Based on the development and stope preparations schedules it is
possible to complete the first phase of the shaft close to the third year with about 13.5 million
tons of mineral into the stopes ready to start the production. This tonnage will cover the
production for the first five years. Meanwhile, the second phase of the shaft will be in
development.

f) Ventilation Raises
Four 9ft diameter ventilation raise are excavated on the edges of the ore body, all of
them used raise boring machine.
Table 15: Ventilation Raises
Name Diameter (ft) From To Length (ft)
Ventilation 9ft SL 6450 Surface 1,798
Ventilation 9ft SL 6200 Surface 1,725
Ventilation 9ft SL 5800 SL 6200 429
Ventilation 9ft SL 5800 SL 6450 673

Elev.

Figure 12: Isometric view of one mine

46
6550 Level

5800 Level

W E

Figure 13: Vertical and Plan views of one mine

47
g). Development Schedule
The table 16 shows the timing to development the mine. The ramp reaches the 5700
level (shaft bottom) in the month 25. Because the time to develop the whole deposit the mine
will be split in two phases the fist phase cover the upper levels until the 6550 level and the
Phase 2 the lower levels until the 5850 level. The development for the Phase 1 is ready to
production in the month 26.4. The Phase 1 of the Shaft is finished on the month 38. To this time
the mine will have 5 years of production prepared. The development of the Phase 2 ends the
month 46. After this time the mine will be only in production for the remaining 61 months.

h). Development Equipment


Based on the estimated productivity per activity (ramp, drift, crosscut, and slot) and the
development schedule the equipment required is the following:

Table 17: Development Equipment


Activity Equipment Quantity Descriptions
Rubber-tired, articulated, diesel-powered carrier, with single boom and
Bolting 1.0 electric-hydraulic drill, and a mechanized system for placing pressure-
water swell type rock bolts.
2 boom , rubber-tired, diesel , 2 hydraulic drifter drill (1.5"-2" holes) with
Drilling 1.0 drifter feeds
Ramp
Hauling 1.0 Truck (31 tons - 80% Fill, diesel hardrock machine - 298hp)
Loading 1.0 LHD 8 cu.yd (diesel hardrock machine - 277hp)

Skid or trailer mounted concrete pumps for delivery of ready-mixed


Shotcrete 1.0 concrete by hose to a shooting nozzle.

Rubber-tired, articulated, diesel-powered carrier, with single boom and


Bolting 2.0 electric-hydraulic drill, and a mechanized system for placing pressure-
water swell type rock bolts.
2 boom , rubber-tired, diesel , 2 hydraulic drifter drill (1.5"-2" holes) with
Drilling 2.0
Drift drifter feeds
Hauling 2.0 Truck (31 tons - 80% Fill, diesel hardrock machine - 298hp)
Loading 2.0 LHD 8 cu.yd (diesel hardrock machine - 277hp)

Skid or trailer mounted concrete pumps for delivery of ready-mixed


Shotcrete 2.0 concrete by hose to a shooting nozzle.

Rubber-tired, articulated, diesel-powered carrier, with single boom and


Bolting 2.0 electric-hydraulic drill, and a mechanized system for placing pressure-
water swell type rock bolts.
Crosscut
2 boom , rubber-tired, diesel , 2 hydraulic drifter drill (1.5"-2" holes) with
Drilling 4.0 drifter feeds
Loading 2.0 LHD 8 cu.yd (diesel hardrock machine - 277hp)
Loading 2.0 LHD 8 cu.yd (diesel hardrock machine - 277hp)

Slot Rail mounted raise climber. Includes cage, drilling


Raise Climber 2.0 platform, trailing cable, and track. Upward speed 60 - 70
feet/minute. Downward speed 82 - 98 feet/minute.

48
Table 16: Development Schedule

Total length Advance per Advance per Months to Start


Description Section
(ft) Shift (ft) Month (ft) Complete Month End Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60

Ramps (-12%) 15 x 15 18,125 12 720 25 1 25 720 720 720 720 720 720 720 720 720 720 720 720 720 720 720 720 720 720 720 720 720 720 720 720 720 125.0
Drifts + Crosscut
Sublevel 7100 15 x 15 2,614 60 3,600 1 9 10 2614
Sublevel 7050 15 x 15 3,907 60 3,600 2 10 12 3600 307
Sublevel 7000 15 x 15 3,914 60 3,600 2 10 12 3600 314
Sublevel 6950 15 x 15 4,776 60 3,600 2 12 14 3600 1176
Sublevel 6900 15 x 15 8,112 60 3,600 3 12 15 3600 3600 912
Sublevel 6850 15 x 15 9,575 60 3,600 3 14 17 3600 3600 2375
Sublevel 6800 15 x 15 11,703 60 3,600 4 15 19 3600 3600 3600 903
Sublevel 6750 15 x 15 13,491 60 3,600 4 17 21 3600 3600 3600 2691
Sublevel 6700 15 x 15 13,508 60 3,600 4 19 23 3600 3600 3600 2708
Sublevel 6650 15 x 15 13,429 60 3,600 4 21 25 3600 3600 3600 2629
Sublevel 6600 15 x 15 13,470 60 3,600 4 23 27 3600 3600 3600 2670
Sublevel 6550 15 x 15 13,158 60 3,600 4 25 29 3600 3600 3600 2358
Sublevel 6500 15 x 15 11,641 60 3,600 4 27 31 3600 3600 3600 841
Sublevel 6450 15 x 15 8,037 60 3,600 3 29 32 3600 3600 837
Sublevel 6400 15 x 15 7,940 60 3,600 3 31 34 3600 3600 740
Sublevel 6350 15 x 15 8,955 60 3,600 3 32 35 3600 3600 1755
Sublevel 6300 15 x 15 8,368 60 3,600 3 34 37 3600 3600 1168
Sublevel 6250 15 x 15 10,122 60 3,600 3 35 38 3600 3600 2922
Sublevel 6200 15 x 15 7,685 60 3,600 3 37 40 3600 3600 485
Sublevel 6150 15 x 15 6,911 60 3,600 2 38 40 3600 3311
Sublevel 6100 15 x 15 6,068 60 3,600 2 40 42 3600 2468
Sublevel 6050 15 x 15 5,582 60 3,600 2 40 42 3600 1982

49
Sublevel 6000 15 x 15 5,043 60 3,600 2 42 44 3600 1443
Sublevel 5950 15 x 15 4,656 60 3,600 2 42 44 3600 1056
Sublevel 5900 15 x 15 2,337 60 3,600 1 44 45 2337
Sublevel 5850 15 x 15 2,012 60 3,600 1 44 45 2012
Level 5800 15 x 15 1,200 60 3,600 1 45 46 1200
Total per month (ft ) 720 720 720 720 720 720 720 720 3334 7920 1341 7920 5496 5232 7920 6695 7920 5223 7920 7011 7920 7028 7920 6949 7920 6395 7200 5958 7200 4441 4437 7200 4340 5355 7200 4768 6522 720 0 3796 7200 4450 7200 2498 4349 1200

Ore Passes Section Total(ft)


length Advance per Advance per Months to Start End Month
Shift (ft) Month (ft) Complete Month

Shaft Phase 1 - R.B. 12 x 12 1,500 6.0 360 5 16 21 360 360 360 360 60
Shaft Phase 1 - Struct. 36 x 12 1,500 1.5 90 17 21 38 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 60
Shaft Phase 2 - R.B. 12 x 12 850 6.0 360 3 26 29 360 360 130
Shaft Phase 2 - Struct. 36 x 12 850 1.5 90 10 29 39 90 90 90 90 90 90 90 90 90 40
Ventilation Raises
Sublevel 6450 9 x 9 1,798 6 360 5 32 37 360 360 360 360 358
Sublevel 6200 9 x 9 1,725 6 360 5 40 45 360 360 360 360 285
Sublevel 5800 9 x 9 429 6 360 2 46 48 360 69
Sublevel 5800 9 x 9 673 6 360 2 49 51 360 313
Ore Passes
OP1 Phase 1 9 x 9 550 6 360 2 30 32 360 190
OP2 Phase 1 9 x 9 550 6 360 2 33 35 360 190
OP3 Phase 1 9 x 9 550 6 360 2 36 38 360 190
OP4 Phase 1 9 x 9 550 6 360 2 39 41 360 190
OP2 Phase 2 9 x 9 750 6 360 3 46 49 360 360 30
OP2 Phase 2 9 x 9 750 6 360 3 50 53 360 360 30
OP2 Phase 2 9 x 9 750 6 360 3 54 57 360 360 30
OP2 Phase 2 9 x 9 750 6 360 3 58 61 360 360 30
Total RB per month (ft) 360 360 360 360 60 0 0 0 0 0 360 360 130 0 360 190 360 720 550 720 548 360 190 0 360 360 360 360 285 360 429 360 390 313 360 360 30 0 360 360 30 0 360 360 30
a) Stope Geometry
The geometry of the crosscuts, sublevels height, and sublevel pillar was assessed
following the methodology of RUDOLF KVAPIL. The geometry is showed in the Table 18 below:

Table 18
Sublevel Caving Geometry
Stope height 82.5 ft
W1 28.4 ft
Crosscut width 16.0 ft
Crosscut height 12.0 ft
a 11.2 ft
Wt 33.7 ft
Sublevel height 50.1 ft
Sublevel pillar 52.0 ft
But, Sublevel Pillar < Sublevel Height
Sublevel pillar 50.0 ft

Final Geometry
Stope height 82.5 ft
Crosscut width 16.0 ft
Crosscut height 12.0 ft
Sublevel height 50.0 ft
Sublevel pillar 50.0 ft

12ft

16ft

50ft

50ft
Figure 4: Final Sublevel Caving Geometry
booms and hydraulic drifter drills (1.5"-2" holes). See table 19.

34 ft

88 ft

Figure 9: Ring Blasting Pattern


- S = Spacing(m)
- L = Length of explosive column(m)
- H = Height of bench(m)
Average hole length for ring drilling
- Mc = explosive mass per unit length (g/m)
- K = powder factor (g/m3)
- Sg =specific gravity of the explosive
- d = explosive diameter (mm)
- Explosive = ANFO
- Density =950 kg/m 3 (SG = 0.95)
- Hole diameter (d) = 63.50 mm
- Average hole length(H) = 26.83m
- Space/ Burden ratio = 1
- (Quartzite hard) powder factor = 800(g/m3)

<Calculation>
Mc  (   d 2  s g
K (Powder factor, g/m3), K = 800 g/m3
L= H - 0.02d
B*S= (L/H)*(Mc/K)

d 63.50 mm
Mc 3007.05 g/m
K 800.00 g/m3
H 26.83 m
L 25.56 m
B*S 3.58 m2 Charging Ts 1.27 m
Space/Burden ratio = 1 Tm 3.18 m
S=B*B Tl 7.94 m
B² 3.58
B 1.89 m Charging Ts 4.17 ft
S 2.46 m (=8ft) Tm 10.41 ft
Tl 26.04 ft

No. of Drill hole 2/3 of Charged


Stemmining
drill hole length length length
1 15.06 10.04 Ts 4.17 10.90
2 41.53 27.69 Tl 26.04 15.50
3 64.94 43.29 Tm 10.41 54.52
4 88.32 58.88 Tl 26.04 62.29
5 88.00 58.67 Ts 4.17 83.83
6 88.32 58.88 Tl 26.04 62.29
7 64.94 43.29 Tm 10.41 54.52
8 41.53 27.69 Tl 26.04 15.50
9 15.06 10.04 Ts 4.17 10.90
Total 507.70 370.24 ft
112.9 m
Total Charged hole Lenth (Tc) 112.9 m
Required Explosive (Mc*Tc) 339,429.62 g (Each ring)
Rock Volume 405.96 m3
Conversion factor
Stope Area 2308.00 sq.ft 1m = 3.28 ft
Area 214.53 m2 1m2 = 10.7584 sq.ft
Burden 1.89 m
volume 405.96 m3
Powder Factor(Required explosive/Rock Volume) 836.12 g/m3
Factor is 836 g/m3. The production per blasting ring is 454 tons

b) Slot
The initial activity to star the blasting production is to open a raise on the top of the stope
(Slot). The section of this slot is 6 ft by 6 ft, which is done using a raise climber machine. The
average advance is 8 ft per shift. Then the average time to open one slot is 15 shifts, including 4
shifts to install and remove the raise climber machine
The slot design is showed in the figure 10. Also the figure 11 shows a isometric view of
the stope with the slot in the top.

Figure 10: Slot Dimension


SLOT

STOPE

CROSSCUT

Figure 11: Isometric view of one stope


The equipment required to reach one production ring is showed in the table 20.

Table 20: Production Equipment


Equipment Hours per day Equipments Description
Drilling 10.0 1.0 2 boom Jumbo, rubber-tired, diesel
Charging 0.4 1.0 ANFO Loaders
Loading 18.2 2.0 8cu.yd
Hualing 22.4 2.0 Trucks (31 tons - 80% Fill, diesel hardrock machine - 298hp)

d) Production Schedule
The production will start the month 38 after to develop the level 6550. During this period
the ore produced from the stopes preparation will been storage. The Table 21 summarizes the
ore produced during the development stage. The table 22 shows the production schedule. The
ore will be hauling from the ore passes to the crusher chamber by trucks in the haulage levels
6550 and 5800. The daily production is 7,500 tones.

Table 21: Ore produced during development


Aver. Cx. Tonnage
Description Section Numbers Total Cx. length
length (ft) (ft) produced
(ton)
Crosscut
Sublevel 7100 12 x 16 10 213 2,128 25,001
Sublevel 7050 12 x 16 14 232 3,244 39,073
Sublevel 7000 12 x 16 14 232 3,244 39,078
Sublevel 6950 12 x 16 19 202 3,838 44,356
Sublevel 6900 12 x 16 30 217 6,504 76,867
Sublevel 6850 12 x 16 34 227 7,722 92,503
Sublevel 6800 12 x 16 39 244 9,509 116,104
Sublevel 6750 12 x 16 42 267 11,209 139,916
Sublevel 6700 12 x 16 42 268 11,246 140,486
Sublevel 6650 12 x 16 43 261 11,234 139,524
Sublevel 6600 12 x 16 43 261 11,235 139,540
Sublevel 6550 12 x 16 43 255 10,948 135,141
Sublevel 6500 12 x 16 37 252 9,323 114,778
Sublevel 6450 12 x 16 35 166 5,819 62,497
Sublevel 6400 12 x 16 27 240 6,468 78,618
Sublevel 6350 12 x 16 29 256 7,426 91,796
Sublevel 6300 12 x 16 28 241 6,761 82,339
Sublevel 6250 12 x 16 29 297 8,610 109,970
Sublevel 6200 12 x 16 32 188 6,003 67,633
Sublevel 6150 12 x 16 30 178 5,337 58,936
Sublevel 6100 12 x 16 26 180 4,690 52,077
Sublevel 6050 12 x 16 25 170 4,242 45,961
Sublevel 6000 12 x 16 22 175 3,848 42,210
Sublevel 5950 12 x 16 20 183 3,661 40,879
Sublevel 5900 12 x 16 11 165 1,816 19,442
Sublevel 5850 12 x 16 10 146 1,459 14,726
Table 22: Production Schedule
ORE ORE Cu Year1 Year 2 Year 3 Year 4
Production Level (ton) (1000tonnes) % Ore Grade Ore Grade Ore Grade Ore Grade
Sublevel 7100 19,678 19.7 2.25 20 2.25
Sublevel 7050 84,295 84.3 2.34 84 2.34
Sublevel 7000 156,020 156.0 2.38 156 2.38
Sublevel 6950 216,251 216.3 2.54 216 2.54
Sublevel 6900 314,144 314.1 2.59 314 2.59
Sublevel 6850 432,780 432.8 2.46 433 2.46
Sublevel 6800 519,272 519.3 2.37 519 2.37
Sublevel 6750 618,612 618.6 2.25 619 2.25
Sublevel 6700 687,935 687.9 2.20 339 2.20 349 2.20
Sublevel 6650 840,914 840.9 2.05 840.9 2.05
Sublevel 6600 906,230 906.2 2.09 906.2 2.09
Sublevel 6550 951,585 951.6 2.11 604 2.11 347.6 2.11
Sublevel 6500 767,729 767.7 2.19 767.7 2.19
Sublevel 6450 632,565 632.6 2.21 632.6 2.21
Sublevel 6400 554,789 554.8 2.25 554.8 2.25
Sublevel 6350 542,362 542.4 2.36 397 2.36 145.4 2.36
Sublevel 6300 498,488 498.5 2.55 498.5 2.55
Sublevel 6250 473,173 473.2 2.37 473.2 2.37
Sublevel 6200 416,328 416.3 2.15 416.3 2.15
Sublevel 6150 336,985 337.0 2.07 337.0 2.07
Sublevel 6100 3,524 3.5 2.36 3.5 2.36
Sublevel 6050 328,084 328.1 2.01 328.1 2.01
Sublevel 6000 174,593 174.6 1.94 174.6 1.94
Sublevel 5950 157,898 157.9 1.63 157.9 1.63
Sublevel 5900 90,932 90.9 1.54 90.9 1.54
Sublevel 5850 67,626 67.6 1.24 67.6 1.24

Total 10,792,792 10,793 2.21 2,700 2.37 2,700 2.09 2,700 2.22 2,693 2.16
To calculate the feasibility of the project an economic evaluation based on the
discounted cash flow was assessed. Because the reserve covers only the production for the first
4 years the book value writes off is applied at the end of the year 6. The NPV analysis with a
12% compounded annually interest gives $58 MM project value.

Table 23: Economic Evaluation


Economic Analysis
Reserve (thousands tones) 10,793
Capital Investment (thousands $)
Equipment $10,750
Development $78,748
Mineral Right $10,000
Work Capital $50,000

AFTER TAX CASH FLOW


Year 0 1 2 3 4 5 6
Daily Mine Production (ton) 7,500 7,500 7,500 7,500
Annual Mine Production (ton) 2,700,000 2,700,000 2,700,000 2,700,000
Smelter Charge
Concentrate ($/ton) 75 75 75 75
Smelting ($/lb) 0.075 0.075 0.075 0.075
Freight ($/ton) 80 80 80 80
Mineral grade 2.37% 2.09% 2.22% 2.16%
Concentrate grade 30% 30% 30% 30%
Tailing grade 0.24% 0.24% 0.24% 0.24%
Recoveries 90% 90% 90% 90%
Concentrate Ratio 14.0 16.2 15.1 15.6
-Op. Milling Costs ($/ton) 8.82 8.82 8.82 8.82
-Op. Mining Costs ($/ton) 5.21 11.12 11.12 11.12
Metal Production 57,663 50,113 53,563 51,930
Selling Price ($/ton) 3,475 3,475 3,475 3,475
Selling Value (thousands $) 200,377 174,144 186,133 180,457
Concentrate (thousands $) -14,416 -12,528 -13,391 -12,982
Smelting (thousands $) -8,649 -7,630 -8,096 -7,875
Freight (thousands $) -15,377 -13,364 -14,284 -13,848
Gross Revenue 161,936 140,622 150,362 145,751
-Royalties (5%) -8,097 -7,031 -7,518 -7,288
Net Revenues 0 0 0 153,839 133,591 142,844 138,463
-Op. Milling Costs 0 0 0 -23,814 -23,814 -23,814 -23,814
-Op. Mining Costs 0 0 0 -14,080 -30,024 -30,024 -30,024
- Development (70%) -5,502 -18,383 -17,892 -11,721 -1,626
- Amortization (30%) -4,725 -4,725 -4,725 -9,450
- Depreciation -1,536 -1,536 -1,536 -6,143
- Depletion -2,502 -2,502 -2,502 -2,495
- Work Capital -50,000
- Write off
Taxable Income -5,502 -18,383 -17,892 95,462 69,364 80,244 16,537
- Taxes 40% 2,201 7,353 7,157 -38,185 -27,746 -32,098 -6,615
Net Income -3,301 -11,030 -10,735 57,277 41,619 48,146 9,922
+ Amortization 0 0 0 4,725 4,725 4,725 9,450
+ Depreciation 0 0 0 1,536 1,536 1,536 6,143
+ Depletion 0 0 0 2,502 2,502 2,502 2,495
-/+ Work Capital -50,000 50,000
- Equipment -10,750
- Mineral Right -10,000
ATCF -$74,052 -$11,030 -$10,735 $66,039 $50,381 $56,909 $78,010
ATCFROR 26%
NPV @ 12% $58,380
The Mineral Resource is 19.4 MM tones with 2.71 % of copper.
The cut off of the mine is 0.99 % of copper per ore ton.
The calculated reserve for this project is 10.8 MM tons of copper ore with an average
grade of 2.21% of copper.
The production rate is 7,500 tpd.
The annual copper production is 53,300 tones of metal copper
The Capital Cost of the project is $89.5 MM.
The Production Cost is $23.80 per ton of ore processed.
The after tax cash flow analysis reports an NPV of $$58 MM and an ATCFROR of 26%.
This result indicated the feasibility of the project.
It is recommended follow the project and try to increase the reserve to continuing mining
the deposit.

Table 24: Equipment to buy


Equipment Quantity Descriptions Cost
2 boom , rubber-tired, diesel , 2 hydraulic drifter drill (1.5"-2" holes) with drifter
Drilling 7.0 $407,800
feeds
Hauling 3.0 Truck (31 tons - 80% Fill, diesel hardrock machine - 298hp) $588,500
Loading 7.0 LHD 8 cu.yd (diesel hardrock machine - 277hp) $658,000
Rubber-tired, articulated, diesel-powered carrier, with single boom and electric-
Bolting 5.0 hydraulic drill, and a mechanized system for placing pressure-water swell type $300,000
rock bolts.
Skid or trailer mounted concrete pumps for delivery of ready-mixed $54,000
Shotcrete 3.0 concrete by hose to a shooting nozzle.
Rail mounted raise climber. Includes cage, drilling
Raise Climber 2.0 platform, trailing cable, and track. Upward speed 60 - 70 $420,000
feet/minute. Downward speed 82 - 98 feet/minute.
Raise Borers System for drilling 12 ft. diameter raises in hard $2,103,000
1.0 rock to 3,000 ft. length.
Hoist system 1.0 3000 HP, 140inc Drum diameter, 21 tons Skipload, 30 ft/sc. $5,550,000
Fresh Water Pumps $7,090
Service Vehicles $370,700
ANFO Loaders General $39,500
Ventilation Fans $205,400
Exploration Drills $46,400
Total $10,750,390
Appendix 1: Ramp Cost calculation
Ramp Specifications Equipment Hours
Dimensions Drilling 3.0
Height 15 ft Loading 1.0
Width 15 ft Bolting 1.0
Vertical length 2,175 ft Hauling 5.0
Slope 12% Shotcrete 2.0
Overbreak 5%
Ramp Length 18,125 ft
Ramp Length 3.4 miles
Total volume 4,282,031 cu.ft
T.F. 12.5 cu.ft/ton
Total tons 342,563 tons
Total Rounds 1,510

Drilling Hauling
Hole length 13 Tramming time per truck 29 min
Advance per round 12 ft Loading time 6.2 min
Drilling time per hole 4.0 min Cycle time per truck 36 min
#Holes per round 54 Total time per truck 261 min
Drilling time 119 min 5.0 hours
Tram time 13 min 71%
132 min Bolting
3.0 hours Bolt type Grouted resin bolt 26mm
Machine Utilization 43% Bolt length 6 ft
Loading Spacing 4 ft
In-situ Volume per round 2835 cu.ft Bolts/Round 12
In-situ Volume per round 105 cu.yd Bolting time per bolt 5 min
Tons per round 227 tons Bolting time 60 min
Swell factor 1.4 1.0 hours
Swell volume 147 cu.yd Machine Utilization 14%
Bucket capacity 8 cu.yd Shotcrete
Fill factor 90% Surface Area 540 sq.ft
Tons per trip 11.1 tons Thinkness 0.2 ft
Average length x trip 300 ft Volume 90.00 cu.ft
Average speed 4.8 mph Volume 3.33 cu.yd
Average speed 422.4 ft/min Shotcrete production 50 cu yd/hr.
Dump Time 0.5 min 2.0 hours
Tram time 1.2 min
Load Time 0.5 min
Truck Capacity 31 tons
Scoops to fill truck 3
Total loading time per tr 6.2 min
Numbers of trips 7
Total tramming time per 45 min
Delays 15%
Number of trucks 1
Total time 53 min
1.0 hours
Drilling, Explosive & Blasting Supplies
Explosives:
Powder Factor 2.75 lbs/tonne
Composite Delivered Cost (ANF 0.99 $/lb 617.46 51.46
Blasting Supplies:
Nonel detonators, detonation cord, fuse caps, fuse ignitors & safety fuse
Composite Delivered Cost 0.55 $/lb 343.04 28.59
Drill Bits:
Average Bit Cost (2 in - Buton, T 45.00 $/bit
Avertage Bit Life 150.00 ft
Bits per round 5.00 bits 225.00 18.75
Drill Steel:
Steel Cost (14 ft - 1 1/4 in diame 118.00 $/steel
Average Steel Life 5,000 ft
Steels per round 0.10 steels/roun 11.80 0.98
Rock Support Supplies
Drill Bits:
Average Bit Cost (1 1/2 in - Buto 63.00 $/bit
Avertage Bit Life 150.00 ft
Bits per round 0.60 bits 37.80 3.15
Drill Steel:
Steel Cost (8 ft - 1 1/2 in diamet 207.00 $/steel
Average Steel Life 5,000.00 ft
Steels per round 0.01 steels/roun 2.07 0.17
Grouted resin bolt 26mm 9.02 $/bolt 108.24 9.02
Utilities
Water Line (pipe, connections, v 7.50 $/ft 90.00 7.50
Sub-Total Consumable Supplies 1,435.41 119.62

Shotcrete $/ft
Assumes pumping and transportation cost are included in the shotcrete cost
Surface Area 540 sq.ft
Thinkness 0.2 ft
Volume 90.00 cu.ft
Cost of shotcrete 4.47 $/cu.ft 33.53
Sub-Total Shotcrete Cost 33.53

Equipment Operating Cost $/round $/ft


LHD (diesel hardrock machine - 277hp)
Assumes:
Capacity 8.00 cu.yd
Machine Utilization 14%
Labor Efficiency 85%
Diesel Fuel Delivered Cost 2.00 $/gal
Hourly Operating Cost:
Consumable parts 6.27 $/hr
Machine Maintenance 6.09 $/hr
Fuel (12 gal/hr) 24.00 $/hr
Lube 1.10 $/hr
Tires 2.00 $/hr 38.33 3.19
Drill Jumbo
Rig
2 boom , rubber-tired, diesel
Machine Utilization 43%
Labor Efficiency 85%
Diesel Fuel Delivered Cost 2.00 $/gal
Hourly Operating Cost:
Consumable parts 5.51 $/hr
Machine Maintenance 5.47 $/hr
Fuel (5 gal/hr) 10.00 $/hr
2 hydraulic drifter drill (1.5"-2" holes) with drifter feeds
Machine Utilization 43%
Labor Efficiency 85%
Hourly Operating Cost:
Consumable parts 3.25 $/hr
Machine Maintenance 3.58 $/hr
Lube/Drill Oil 1.79 $/hr 25.09 2.09
Roof Bolters
Rubber-tired, articulated, diesel-powered carrier, with single boom and electric-hydraulic drill, and a
mechanized system for placing pressure-water swell type rock bolts.
Machine Utilization 14%
Labor Efficiency 85%
Diesel Fuel Delivered Cost 2.00 $/gal
Hourly Operating Cost:
Consumable parts 6.00 $/hr
Machine Maintenance 5.47 $/hr
Fuel (5 gal/hr) 10.00 $/hr
Lube 1.96 $/hr
Tires 0.21 $/hr 22.97 1.91
Truck (31 tons - 80% Fill, diesel hardrock machine - 298hp)
Assumes:
Capacity 31.0 tons
Machine Utilization 71%
Labor Efficiency 85%
Diesel Fuel Delivered Cost 2.00 $/gal
Average Haul Distance (round-tr 5,500.00 ft
Average Truck Velocity (With de 7.50 mph
Tota Cicle time 35.61 min
Total time 261 min
4.3 hours
Hourly Operating Cost:
Consumable parts 10.80 $/hr
Machine Maintenance 8.72 $/hr
Fuel (12 gal/hr) 24.00 $/hr
Lube 3.54 $/hr
Tires 3.38 $/hr 132.98 11.08
Sub-Total Equipment Operating Cost 10.91

Labor $/round $/ft


Employee Hours / Shift 8.00
Employees / Shift 5 (3 miners + 1 Drivers + 1 mine helper)
Work Schedule 5 days per week
Non-Overtime Employee Hours/ 40
Overtime 0

Direc Wage Rate & Time Allocated to Production


Lead Miner 46.00 100%
Miner # 1 36.00 300%
Truck Driver 36.00 100%
Mine Helper 22.00 100%
Mine Utility Miner 22.00 15%
Electrician/Mechanic 40.00 15%
Rounds per Shift 1.00 round/shift 1,770.40 147.53
Drift Specifications Equipment Hours
Dimensions Drilling 3.0
Height 15 ft Loading 1.0
Width 15 ft Bolting 1.0
Slope 1% Hauling 5.0
Overbreak 5% Shotcrete 2.0
Drift Length 1,519 ft
Drift Length 0.3 miles
Total volume 358,864 cu.ft
T.F. 12.5 cu.ft/ton
Total tons 28,709 tons
Total Rounds 127
Avererage Hauling Len 1.7 miles

Drilling Hauling
Hole length 13 Tramming time per truck 34.36 min
Advance per round 12 ft Loading time 6.2 min
Drilling time per hole 4.0 min Cycle time per truck 41 min
#Holes per round 54 Total time per truck 297 min
Drilling time 119 min 5.0 hours
Tram time 13 min 71%
132 min Bolting
3.0 hours Bolt type Grouted resin bolt 26mm
Machine Utilization 43% Bolt length 6 ft
Loading Spacing 4 ft
In-situ Volume per round 2835 cu.ft Bolts/Round 12
In-situ Volume per round 105 cu.yd Bolting time per bolt 5 min
Tons per round 227 tons Bolting time 60 min
Swell factor 1.4 1.0 hours
Swell volume 147 cu.yd Machine Utilization 14%
Bucket capacity 8 cu.yd Shotcrete
Fill factor 90% Surface Area 540 sq.ft
Tons per trip 11.1 tons Thinkness 0.2 ft
Average length x trip 300 ft Volume 90.00 cu.ft
Average speed 4.8 mph Volume 3.33 cu.yd
Average speed 422.4 ft/min Shotcrete production 50 cu yd/hr.
Dump Time 0.5 min 2.0 hours
Tram time 1.2 min
Load Time 0.5 min
Truck Capacity 31 tons
Scoops to fill truck 3
Total loading time per tr 6.2 min
Numbers of trips 7
Total tramming time per 45 min
Delays 15%
Number of trucks 1
Total time 53 min
1.0 hours
Machine Utilization 14%
Drilling, Explosive & Blasting Supplies
Explosives:
Powder Factor 2.75 lbs/tonne
Composite Delivered Cost (ANF 0.99 $/lb 617.46 51.46
Blasting Supplies:
Nonel detonators, detonation cord, fuse caps, fuse ignitors & safety fuse
Composite Delivered Cost 0.55 $/lb 343.04 28.59
Drill Bits:
Average Bit Cost (2 in - Buton, T 45.00 $/bit
Avertage Bit Life 150.00 ft
Bits per round 5.00 bits 225.00 18.75
Drill Steel:
Steel Cost (14 ft - 1 1/4 in diame 118.00 $/steel
Average Steel Life 5,000 ft
Steels per round 0.10 steels/roun 11.80 0.98
Rock Support Supplies
Drill Bits:
Average Bit Cost (1 1/2 in - Buto 63.00 $/bit
Avertage Bit Life 150.00 ft
Bits per round 0.60 bits 37.80 3.15
Drill Steel:
Steel Cost (8 ft - 1 1/2 in diamet 207.00 $/steel
Average Steel Life 5,000.00 ft
Steels per round 0.01 steels/roun 2.07 0.17
Grouted resin bolt 26mm 9.02 $/bolt 108.24 9.02
Utilities
Water Line (pipe, connections, v 7.50 $/ft 90.00 7.50
Sub-Total Consumable Supplies 1,435.41 119.62

Shotcrete $/ft
Assumes pumping and transportation cost are included in the shotcrete cost
Surface Area 540 sq.ft
Thinkness 0.2 ft
Volume 90.00 cu.ft
Cost of shotcrete 4.47 $/cu.ft 33.53
Sub-Total Shotcrete Cost 33.53

Equipment Operating Cost $/round $/ft


LHD (diesel hardrock machine - 277hp)
Assumes:
Capacity 8.00 cu.yd
Machine Utilization 14%
Labor Efficiency 85%
Diesel Fuel Delivered Cost 2.00 $/gal
Hourly Operating Cost:
Consumable parts 6.27 $/hr
Machine Maintenance 6.09 $/hr
Fuel (12 gal/hr) 24.00 $/hr
Lube 1.10 $/hr
Tires 2.00 $/hr 38.33 3.19
Drill Jumbo
Rig
2 boom , rubber-tired, diesel
Machine Utilization 43%
Labor Efficiency 85%
Diesel Fuel Delivered Cost 2.00 $/gal
Hourly Operating Cost:
Consumable parts 5.51 $/hr
Machine Maintenance 5.47 $/hr
Fuel (5 gal/hr) 10.00 $/hr
2 hydraulic drifter drill (1.5"-2" holes) with drifter feeds
Machine Utilization 43%
Labor Efficiency 85%
Hourly Operating Cost:
Consumable parts 3.25 $/hr
Machine Maintenance 3.58 $/hr
Lube/Drill Oil 1.79 $/hr 25.09 2.09
Roof Bolters
Rubber-tired, articulated, diesel-powered carrier, with single boom and electric-hydraulic drill, and a
mechanized system for placing pressure-water swell type rock bolts.
Machine Utilization 14%
Labor Efficiency 85%
Diesel Fuel Delivered Cost 2.00 $/gal
Hourly Operating Cost:
Consumable parts 6.00 $/hr
Machine Maintenance 5.47 $/hr
Fuel (5 gal/hr) 10.00 $/hr
Lube 1.96 $/hr
Tires 0.21 $/hr 22.97 1.91
Truck (31 tons - 80% Fill, diesel hardrock machine - 298hp)
Assumes:
Capacity 31.0 tons
Machine Utilization 71%
Labor Efficiency 85%
Diesel Fuel Delivered Cost 2.00 $/gal
Average Haul Distance (round-tr 5,500.00 ft
Average Truck Velocity (With de 7.50 mph
Tota Cicle time 35.61 min
Total time 261 min
4.3 hours
Hourly Operating Cost:
Consumable parts 10.80 $/hr
Machine Maintenance 8.72 $/hr
Fuel (12 gal/hr) 24.00 $/hr
Lube 3.54 $/hr
Tires 3.38 $/hr 132.98 11.08
Sub-Total Equipment Operating Cost 10.91

Labor $/round $/ft


Employee Hours / Shift 8.00
Employees / Shift 5 (3 miners + 1 Drivers + 1 mine helper)
Work Schedule 5 days per week
Non-Overtime Employee Hours/ 40
Overtime 0

Direc Wage Rate & Time Allocated to Production


Lead Miner 46.00 100%
Miner # 1 36.00 300%
Truck Driver 36.00 100%
Mine Helper 22.00 100%
Mine Utility Miner 22.00 15%
Electrician/Mechanic 40.00 15%
Rounds per Shift 1.00 round/shift 1,770.40 147.53
Crosscut Specifications Equipment Hours
Dimensions Drilling 3.0
Height 12 ft Loading 1.0
Width 16 ft Bolting 1.0
Slope 1%
Overbreak 5%
Crosscut Length 231 ft
Total volume 46,570 cu.ft
T.F. 12.5 cu.ft/ton
Total tons 3,726 tons
Total Rounds 19
Avererage Length to OP 249 ft

Drilling Bolting
Hole length 13 Bolt type Split set
Advance per round 12 ft Bolt length 6 ft
Drilling time per hole 4.0 min Spacing 4 ft
#Holes per round 58 Bolts/Round 12
Drilling time 128 min Bolting time per bolt 5 min
Tram time 13 min Bolting time 60 min
140 min 1.0 hours
3.0 hours Machine Utilization 14%
Machine Utilization 43%
Loading
In-situ Volume per round 2419 cu.ft
In-situ Volume per round 90 cu.yd
Tons per round 194 tons
Swell factor 1.4
Swell volume 125 cu.yd
Bucket capacity 8 cu.yd
Fill factor 90%
Tons per trip 11.1 tons
Average length x trip 249 ft
Average speed 4.8 mph
Average speed 422.4 ft/min
Dump Time 0.5 min
Tram time 0.6 min
Load Time 0.5 min
Total loading time per trip 1.6 min
Numbers of trips 17
Total time 28 min
1.0 hours
Machine Utilization 14%
Consumable Supplies $/round $/ft
Drilling, Explosive & Blasting Supplies
Explosives:
Powder Factor 2.75 lbs/tonne
Composite Delivered Cost (ANF 0.99 $/lb 526.90 43.91
Blasting Supplies:
Nonel detonators, detonation cord, fuse caps, fuse ignitors & safety fuse
Composite Delivered Cost 0.55 $/lb 292.72 24.39
Drill Bits:
Average Bit Cost (2 in - Buton, T 45.00 $/bit
Avertage Bit Life 150.00 ft
Bits per round 5.00 bits 225.00 18.75
Drill Steel:
Steel Cost (14 ft - 1 1/4 in diame 118.00 $/steel
Average Steel Life 5,000 ft
Steels per round 0.20 steels/roun 23.60 1.97
Rock Support Supplies
Drill Bits:
Average Bit Cost (1 1/2 in - Buto 63.00 $/bit
Avertage Bit Life 150.00 ft
Bits per round 0.60 bits 37.80 3.15
Drill Steel:
Steel Cost (8 ft - 1 1/2 in diamet 207.00 $/steel
Average Steel Life 5,000.00 ft
Steels per round 0.01 steels/roun 2.07 0.17
Frictional rock bolt set (6 ft - 1 10.30 $/bolt 123.60 10.30
Utilities
Water Line (pipe, connections, v 7.50 $/ft 90.00 7.50
Sub-Total Consumable Supplies 1,321.69 110.14

Equipment Operating Cost $/round $/ft


LHD (diesel hardrock machine - 277hp)
Assumes:
Capacity 8.00 cu.yd
Machine Utilization 14%
Labor Efficiency 85%
Diesel Fuel Delivered Cost 2.00 $/gal
Hourly Operating Cost:
Consumable parts 6.27 $/hr
Machine Maintenance 6.09 $/hr
Fuel (12 gal/hr) 24.00 $/hr
Lube 1.10 $/hr
Tires 2.00 $/hr 38.33 3.19
Drill Jumbo
Rig
2 boom , rubber-tired, diesel
Machine Utilization 43%
Labor Efficiency 85%
Diesel Fuel Delivered Cost 2.00 $/gal
Hourly Operating Cost:
Consumable parts 5.51 $/hr
Machine Maintenance 5.47 $/hr
Fuel (5 gal/hr) 10.00 $/hr
2 hydraulic drifter drill (1.5"-2" holes) with drifter feeds
Machine Utilization 43%
Labor Efficiency 85%
Hourly Operating Cost:
Consumable parts 3.25 $/hr
Machine Maintenance 3.58 $/hr
Lube/Drill Oil 1.79 $/hr 25.09 2.09
Roof Bolter
Rubber-tired, articulated, diesel-powered carrier, with single boom and electric-hydraulic drill, and a
mechanized system for placing pressure-water swell type rock bolts.
Machine Utilization 14%
Labor Efficiency 85%
Diesel Fuel Delivered Cost 2.00 $/gal
Hourly Operating Cost:
Consumable parts 6.00 $/hr
Machine Maintenance 5.47 $/hr
Fuel (5 gal/hr) 10.00 $/hr
Lube 1.96 $/hr
Tires 0.21 $/hr 22.97 1.91
Sub-Total Equipment Operating Cost 10.91

Labor $/round $/ft


Employee Hours / Shift 8.00
Employees / Shift 5 (3 miners + 1 Drivers + 1 mine helper)
Work Schedule 5 days per week
Non-Overtime Employee Hours/ 40
Overtime 0

Direc Wage Rate & Time Allocated to Production


Lead Miner 46.00 100%
Miner # 1 36.00 300%
Truck Driver 36.00 100%
Mine Helper 22.00 100%
Mine Utility Miner 22.00 15%
Electrician/Mechanic 40.00 15%
Rounds per Shift 1.00 round/shift 1,770.40 147.53
Sub-Total Labor Cost 147.53
Slot Specifications Equipment Hours
Dimensions Raise Climber 2.0
Length 6 ft Loading 0.2
Width 6 ft
Overbreak 5%
Advance per round 8 ft
Total volume 302 cu.ft
T.F. 12.5 cu.ft/ton
Total tons 24 tons
Total Rounds 1
Avererage Length to O 450 ft

Drilling
Hole length 8
Advance per round 8 ft
Drilling time per hole 3.0 min

Drilling time 37 min


Upward time 15 min
Downward time 15
67 min
2.0 hours
Machine Utilization 29%
Loading
In-situ Volume per round 302 cu.ft
In-situ Volume per round 11 cu.yd
Tons per round 24 tons
Swell factor 1.4
Swell volume 16 cu.yd
Bucket capacity 8 cu.yd
Fill factor 90%
Tons per trip 11.1 tons
Average length x trip 450 ft
Average speed 4.8 mph
Average speed 422.4 ft/min
Dump Time 0.5 min
Tram time 1.1 min
Load Time 0.5 min
Total loading time per tri 2.1 min
Numbers of trips 3
Total time 6 min
0.2 hours
Machine Utilization 2.9%
Drilling, Explosive & Blasting Supplies
Explosives:
Powder Factor 2.75 lbs/tonne
Composite Delivered Cost (ANF 0.99 $/lb 65.86 8.23
Blasting Supplies:
Nonel detonators, detonation cord, fuse caps, fuse ignitors & safety fuse
Composite Delivered Cost 0.55 $/lb 36.59 4.57
Drill Bits:
Average Bit Cost (2 in - Buton, T 45.00 $/bit
Avertage Bit Life 150.00 ft
Bits per round 1.00 bits 45.00 5.63
Drill Steel:
Steel Cost (14 ft - 1 1/4 in diame 118.00 $/steel
Average Steel Life 5,000 ft
Steels per round 0.04 steels/roun 4.72 0.59
Utilities
Water Line (pipe, connections, v 7.50 $/ft 60.00 7.50
Sub-Total Consumable Supplies 212.17 26.52

Equipment Operating Cost $/round $/ft


LHD (diesel hardrock machine - 277hp)
Assumes:
Capacity 8.00 cu.yd
Machine Utilization 3%
Labor Efficiency 85%
Diesel Fuel Delivered Cost 2.00 $/gal
Hourly Operating Cost:
Consumable parts 6.27 $/hr
Machine Maintenance 6.09 $/hr
Fuel (12 gal/hr) 24.00 $/hr
Lube 1.10 $/hr
Tires 2.00 $/hr 7.67 0.32
Raise Climber
Rail mounted raise climber. Includes cage, drilling platform, trailing cable, and track.
Machine Utilization 29%
Labor Efficiency 85%
Hourly Operating Cost:
Consumable parts 1.30 $/hr
Machine Maintenance 2.58 $/hr
Lube 0.93 $/hr
Electical Cable 2.60 $/hr 14.39 0.59
Drill
1 Neumatic Stoper Drilling
Machine Utilization 29%
Labor Efficiency 85%
Hourly Operating Cost:
Consumable parts 5.10 $/hr
Machine Maintenance 1.28 $/hr
Lube/Drill Oil 0.31 $/hr 12.99 0.54
Labor $/round $/ft
Employee Hours / Shift 8.00
Employees / Shift 2 (1 miner + 1 mine helper)
Work Schedule 5 days per week
Non-Overtime Employee Hours/ 40
Overtime 0
Direc Wage Rate & Time Allocated to Production
Lead Miner 46.00 100%
Mine Helper 22.00 100%
Mine Utility Miner 22.00 15%
Electrician/Mechanic 40.00 15%
Stope Specifications Equipment Hours Description
Stope Production Drilling 2.0 2 boom Jumbo, rubber-tired, diesel
Stope Height 88.00 ft Charging 0.1 ANFO Loaders
Stope Area 2,308.00 ft Loading 3.6 8cu.yd
Average Hole length 56.40 ft
Advance per ring 6.20 ft
Holes per ring 9.00
Tonnage Factor 12.50 cu.ft/ton
Dilution 30.0%
Tons per ring 1,488 tons
Average tons per stope (231ft) 55,447 tons

Normal Work Shift


Shifts per day 2
Hours per shift 8 hr

Drill Jumbo Production


Hole length 56.40 ft
Drilling time per hole 13.2 min
Holes per ring 9.00
Drilling time per ring 119 min
2.0 hours
Charging
Hole length 56.40 ft
Chargin time per hole 0.6 min
Holes per ring 9.00
Chargin time per ring 5 min
0.09 hours
LHD Production
Volume per ring 530 yd3
Swell factor 1.4
Swell volume 742 yd3
Bucket capacity 8 yd3
Fill factor 90%
# Trips 93
Average length x trip 249 ft
Average speed 4.8 mph
Average speed 422.4 ft/min
Traming time 0.6 mim
Dumping Time 0.5 mim
Loading Time 0.75 mim
Delays 0.5 mim
Time per cycle 2.3 min
3.6 hours
Drilling, Explosive & Blasting Supplies
Explosives:
Powder Factor 2.14 lbs/tonne
Composite Delivered Cost (ANFO & Package Products) 0.99 $/lb 3,152.49 2.12
Blasting Supplies:
Nonel detonators, detonation cord, fuse caps, fuse ignitors & safety fuse
Composite Delivered Cost 0.55 $/lb 1,751.38 1.18
Drill Bits:
Average Bit Cost (2 in - Buton, Threaded) 45.00 $/bit
Avertage Bit Life 150.00 ft
Bits per round 3.00 bits 135.00 0.09
Drill Steel:
Steel Cost (Bars 14 ft - 1 1/4 in diameter, Threaded) 118.00 $/steel
Average Steel Life 5,000.00 ft
Steels per round 0.10 steels/round 11.80 0.01
Utilities
Water Line (pipe, connections, valves) 7.50 $/ft
Ventilation Tubing (Fabric blower tube 30 in diameter) 6.20 $/ft 84.93 0.06
Sub-Total Consumable Supplies 5,135.60 3.45

Equipment Operating Cost $/ring $/ton


LHD (diesel hardrock machine - 277hp)
Assumes:
Capacity 8.00 cu.yd
Machine Utilization 75%
Labor Efficiency 85%
Diesel Fuel Delivered Cost 2.00 $/gal
Hourly Operating Cost:
Consumable parts 6.27 $/hr
Machine Maintenance 6.09 $/hr
Fuel (12 gal/hr) 24.00 $/hr
Lube 1.10 $/hr
Tires 2.00 $/hr 201.25 0.14
Drill Jumbo
Rig
2 boom , rubber-tired, diesel
Machine Utilization 75%
Labor Efficiency 85%
Diesel Fuel Delivered Cost 2.00 $/gal
Hourly Operating Cost:
Consumable parts 5.51 $/hr
Machine Maintenance 5.47 $/hr
Fuel (5 gal/hr) 10.00 $/hr
Lube 1.96 $/hr
Tires 0.21 $/hr 118.09 0.08
Drill
2 hydraulic drifter drill (1.5"-2" holes) with drifter feeds
Machine Utilization 75%
Labor Efficiency 85%
Hourly Operating Cost:
Consumable parts 3.25 $/hr
Machine Maintenance 3.58 $/hr
Lube/Drill Oil 1.79 $/hr 43.90 0.03
Miscellaneus Equipment
Power Distribution center 9,900 $
Ventilation (auxiliary fan & vent tubing) 2,600 $
Communications 2,500 $ 0.27
Sub-Total Equipment Operating Cost 0.51

Production Cost ($/ton)


Labor $/ring $/ton
Employee Hours / Shift 8.00
Employees / Shift 3 (2 miners + 1 mine helper)
Work Schedule 5 days per week
Non-Overtime Employee Hours/Week 40
Overtime 0

Direc Wage Rate & Time Allocated to Production


Lead Miner 46.00 100%
Miner # 1 36.00 100%
Mine Helper 22.00 100%
Mine Utility Miner 22.00 15%
Electrician/Mechanic 40.00 5%
Appendix 6: Hour of Equipments to Use

Ramp Equipment Drift Equipment Crosscut Equipment Slot Equipment


Total Time Hours Hours Hours Hours
Description
length (ft) (months) Drilling Loading Bolting Hauling Shotcrete Drilling Loading Bolting Hauling Shotcrete Drilling Loading Bolting Raise Climber Loading
3.0 1.0 1.0 5.0 2.0 3.0 1.0 1.0 5.0 2.0 3.0 1.0 1.0 2.0 0.1
Ramps (-12%) 17,500 25.2 4,375 1,458 1,458 7,292 2,917
Drifts + Crosscut
Sublevel 7100 2,614 0.8 121 40 40 202 81 532 177 177 125 6
Sublevel 7050 3,907 1.1 166 55 55 276 111 811 270 270 175 9
Sublevel 7000 3,914 1.1 168 56 56 279 112 811 270 270 175 9
Sublevel 6950 4,776 1.4 235 78 78 391 156 959 320 320 238 12
Sublevel 6900 8,112 2.3 402 134 134 670 268 1,626 542 542 375 19
Sublevel 6850 9,575 2.7 463 154 154 772 309 1,931 644 644 425 21
Sublevel 6800 11,703 3.3 549 183 183 914 366 2,377 792 792 488 24
Sublevel 6750 13,491 3.8 571 190 190 951 380 2,802 934 934 525 26
Sublevel 6700 13,508 3.8 566 189 189 943 377 2,812 937 937 525 26
Sublevel 6650 13,429 3.8 549 183 183 915 366 2,808 936 936 538 27
Sublevel 6600 13,470 3.8 559 186 186 932 373 2,809 936 936 538 27
Sublevel 6550 13,158 3.7 552 184 184 921 368 2,737 912 912 538 27
Sublevel 6500 11,641 3.3 580 193 193 966 386 2,331 777 777 463 23
Sublevel 6450 8,037 2.3 554 185 185 924 370 1,455 485 485 438 22
Sublevel 6400 7,940 2.3 368 123 123 613 245 1,617 539 539 338 17
Sublevel 6350 8,955 2.5 382 127 127 637 255 1,857 619 619 363 18
Sublevel 6300 8,368 2.4 402 134 134 670 268 1,690 563 563 350 18
Sublevel 6250 10,122 2.9 378 126 126 630 252 2,152 717 717 363 18
Sublevel 6200 7,685 2.2 420 140 140 701 280 1,501 500 500 400 20
Sublevel 6150 6,911 2.0 394 131 131 656 262 1,334 445 445 375 19
Sublevel 6100 6,068 1.7 344 115 115 574 230 1,173 391 391 325 16
Sublevel 6050 5,582 1.6 335 112 112 558 223 1,061 354 354 313 16
Sublevel 6000 5,043 1.5 299 100 100 498 199 962 321 321 275 14
Sublevel 5950 4,656 1.3 249 83 83 414 166 915 305 305 250 13
Sublevel 5900 2,337 0.7 130 43 43 217 87 454 151 151 138 7
Sublevel 5850 2,012 0.6 138 46 46 230 92 365 122 122 125 6
Level 5800 1,200 0.4 300 100 100 500 200
Total 208,213 4,375 1,458 1,458 7,292 2,917 10,172 3,391 3,391 16,954 6,782 41,881 13,960 13,960 9,175 459

72
Appendix 7: Hour per Month of Equipments to Use

Ramp Equipment Drift Equipment Crosscut Equipment Slot Equipment


Total Time Hours per month Hours per month Hours per month Hours per month
Description
length (ft) (months) Drilling Loading Bolting Hauling Shotcrete Drilling Loading Bolting Hauling Shotcrete Drilling Loading Bolting Raise Climber Loading

Ramps (-12%) 17,500 5.0 174 58 58 289 116


Drifts + Crosscut
Sublevel 7100 2,614 0.8 121 40 40 202 81 532 177 177 125 6
Sublevel 7050 3,907 1.1 151 50 50 251 100 737 246 246 159 8
Sublevel 7000 3,914 1.1 152 51 51 254 102 737 246 246 159 8
Sublevel 6950 4,776 1.4 168 56 56 279 112 685 228 228 170 8
Sublevel 6900 8,112 2.3 175 58 58 291 117 707 236 236 163 8
Sublevel 6850 9,575 2.7 172 57 57 286 114 715 238 238 157 8
Sublevel 6800 11,703 3.3 166 55 55 277 111 720 240 240 148 7
Sublevel 6750 13,491 3.8 150 50 50 250 100 737 246 246 138 7
Sublevel 6700 13,508 3.8 149 50 50 248 99 740 247 247 138 7
Sublevel 6650 13,429 3.8 144 48 48 241 96 739 246 246 141 7
Sublevel 6600 13,470 3.8 147 49 49 245 98 739 246 246 141 7
Sublevel 6550 13,158 3.7 149 50 50 249 100 740 247 247 145 7
Sublevel 6500 11,641 3.3 176 59 59 293 117 706 235 235 140 7
Sublevel 6450 8,037 2.3 241 80 80 402 161 632 211 211 190 10
Sublevel 6400 7,940 2.3 160 53 53 267 107 703 234 234 147 7
Sublevel 6350 8,955 2.5 153 51 51 255 102 743 248 248 145 7
Sublevel 6300 8,368 2.4 167 56 56 279 112 704 235 235 146 7
Sublevel 6250 10,122 2.9 130 43 43 217 87 742 247 247 125 6
Sublevel 6200 7,685 2.2 191 64 64 318 127 682 227 227 182 9
Sublevel 6150 6,911 2.0 197 66 66 328 131 667 222 222 188 9
Sublevel 6100 6,068 1.7 203 68 68 338 135 690 230 230 191 10
Sublevel 6050 5,582 1.6 209 70 70 349 140 663 221 221 195 10
Sublevel 6000 5,043 1.5 199 66 66 332 133 641 214 214 183 9
Sublevel 5950 4,656 1.3 191 64 64 319 127 704 235 235 192 10
Sublevel 5900 2,337 0.7 130 43 43 217 87 454 151 151 138 7
Sublevel 5850 2,012 0.6 138 46 46 230 92 365 122 122 125 6
Level 5800 1,200 0.4 300 100 100 500 200
Total 208,213 174 58 58 289 116 4,630 1,543 1,543 7,717 3,087 17,626 5,875 5,875 4,072 204

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Appendix 8: Quantity of Equipments to Use

Ramp Equipment Drift Equipment Crosscut Equipment Slot Equipment


Total Time per month per month per month per month
Description
length (ft) (months) Drilling Loading Bolting Hauling Shotcrete Drilling Loading Bolting Hauling Shotcrete Drilling Loading Bolting Raise Climber Loading

Ramps (-12%) 17,500 0.0 1 1 1 1 1


Drifts + Crosscut
Sublevel 7100 2,614 0.8 1 1 1 1 1 2 1 1 1 1
Sublevel 7050 3,907 1.1 1 1 1 1 1 2 1 1 1 1
Sublevel 7000 3,914 1.1 1 1 1 1 1 2 1 1 1 1
Sublevel 6950 4,776 1.4 1 1 1 1 1 2 1 1 1 1
Sublevel 6900 8,112 2.3 1 1 1 1 1 2 1 1 1 1
Sublevel 6850 9,575 2.7 1 1 1 1 1 2 1 1 1 1
Sublevel 6800 11,703 3.3 1 1 1 1 1 2 1 1 1 1
Sublevel 6750 13,491 3.8 1 1 1 1 1 2 1 1 1 1
Sublevel 6700 13,508 3.8 1 1 1 1 1 2 1 1 1 1
Sublevel 6650 13,429 3.8 1 1 1 1 1 2 1 1 1 1
Sublevel 6600 13,470 3.8 1 1 1 1 1 2 1 1 1 1
Sublevel 6550 13,158 3.7 1 1 1 1 1 2 1 1 1 1
Sublevel 6500 11,641 3.3 1 1 1 1 1 2 1 1 1 1
Sublevel 6450 8,037 2.3 1 1 1 1 1 2 1 1 1 1
Sublevel 6400 7,940 2.3 1 1 1 1 1 2 1 1 1 1
Sublevel 6350 8,955 2.5 1 1 1 1 1 2 1 1 1 1
Sublevel 6300 8,368 2.4 1 1 1 1 1 2 1 1 1 1
Sublevel 6250 10,122 2.9 1 1 1 1 1 2 1 1 1 1
Sublevel 6200 7,685 2.2 1 1 1 1 1 2 1 1 1 1
Sublevel 6150 6,911 2.0 1 1 1 1 1 2 1 1 1 1
Sublevel 6100 6,068 1.7 1 1 1 1 1 2 1 1 1 1
Sublevel 6050 5,582 1.6 1 1 1 1 1 2 1 1 1 1
Sublevel 6000 5,043 1.5 1 1 1 1 1 2 1 1 1 1
Sublevel 5950 4,656 1.3 1 1 1 1 1 2 1 1 1 1
Sublevel 5900 2,337 0.7 1 1 1 1 1 2 1 1 1 1
Sublevel 5850 2,012 0.6 1 1 1 1 1 1 1 1 1 1
Level 5800 1,200 0.4 1 1 1 2 1
Total 208,213 1 1 1 1 1 2 2 2 2 2 4 2 2 2 2

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