Ocman

Opti-Cut
User Manual
April, 1998
Whittle Cut-off Optimization Software
Copyright 1998 Whittle Programming Pty Ltd. All rights reserved.
Whittle Programming Pty Ltd (A.C.N. 065 377 004) Level 4 1013 Whitehorse Road Box Hill Victoria 3128 AUSTRALIA Telephone: Facsimile: +61 3 9899 3799 +61 3 9899 3755
email: whittle@whittle.com.au web: www.whittle.com.au
High Level Table of Contents
ABOUT THIS RELEASE............................................................................................ 9 PART 1: INTRODUCTION ....................................................................................... 10 PART 2: PROGRAMS IN THE OPTI-CUT PACKAGE ............................................ 30
Chapter 1: Getting Started.......................................................................................................................... 31 Chapter 2: The Programs ............................................................................................................................ 53
PART 3: DETAILED FILE FORMATS ..................................................................... 82

Chapter 1: Sequence Text File..................................................................................................................... 83 Chapter 2: Economics Text File .................................................................................................................. 94 Chapter 3: Spreadsheet Files..................................................................................................................... 116
PART 4: TECHNIQUES ......................................................................................... 137

Chapter 1: Auxiliary Files and Computer Techniques ............................................................................. 138 Chapter 2: Economic Factors .................................................................................................................... 153 Chapter 3: Mining Factors ........................................................................................................................ 171
PART 5: TUTORIALS AND EXERCISES .............................................................. 185

Tutorial 1 - A Simple Run Through of the Main Programs...................................................................... 189 Exercise 1 - Automating the Process.......................................................................................................... 216 Tutorial 2 - Four-D and Four-X Interfaces and Sequence Compaction ................................................... 222 Exercise 2 - Varying the Compaction ........................................................................................................ 235 Tutorial 3 - Using a Stockpile .................................................................................................................... 237 Exercise 3 - Adjusting Throughput............................................................................................................ 246 Tutorial 4 - Multi-element Deposits........................................................................................................... 250 Exercise 4 - Multi-element Stockpiles ....................................................................................................... 256
3 High Level Table of Contents 28 April, 1998
APPENDICES......................................................................................................... 262
Appendix A: NPV, Discount Rate and Inflation........................................................................................ 263 Appendix B: How the Optimization is Achieved....................................................................................... 264 Appendix C: Program Limits .................................................................................................................... 269 Appendix D: Error Messages..................................................................................................................... 270 Appendix E: Requests for Program Enhancement ................................................................................... 275
GLOSSARY............................................................................................................ 276 INDEX..................................................................................................................... 290
4 High Level Table of Contents 28 April, 1998
Detailed Table of Contents
ABOUT THIS RELEASE............................................................................................ 9 PART 1: INTRODUCTION ....................................................................................... 10

Overview .............................................................................................................................................. 10 Section A: How this Manual is Structured ................................................................................................. 11 Section B: Using this Manual .................................................................................................................... 13 Overview .............................................................................................................................................. 13 Conventions Used in this Manual.......................................................................................................... 14 Terminology ......................................................................................................................................... 18 Abbreviations........................................................................................................................................ 21 Section C: Opti-Cut Methodology.............................................................................................................. 22 Section D: Opti-Cut, Your Computer and Other Whittle Programs............................................................ 24 Overview .............................................................................................................................................. 24 Hardware and Software Requirements................................................................................................... 25 Installing Opti-Cut on Your Computer.................................................................................................. 26 Four-D and Four-X Interfaces ............................................................................................................... 28
PART 2: PROGRAMS IN THE OPTI-CUT PACKAGE ............................................ 30

Overview .............................................................................................................................................. 30 Chapter 1: Getting Started.......................................................................................................................... 31 Overview .............................................................................................................................................. 31 Program Description............................................................................................................................. 32 Accessing the Programs ........................................................................................................................ 34 At the Terminal .................................................................................................................................... 38 Files...................................................................................................................................................... 42 Getting the Most out of the Package...................................................................................................... 49 Chapter 2: The Programs ............................................................................................................................ 53 Overview .............................................................................................................................................. 53 Sequence Input Program (OCSE).......................................................................................................... 54 List Details Program (OCLD) ............................................................................................................... 57 Compaction Program (OCCO) .............................................................................................................. 60 Economics Input Program (OCEC) ....................................................................................................... 66 Optimization Program (OCOP)............................................................................................................. 69 Print Results Program (OCPR).............................................................................................................. 76
PART 3: DETAILED FILE FORMATS ..................................................................... 82

Overview .............................................................................................................................................. 82 Chapter 1: Sequence Text File..................................................................................................................... 83 Overview .............................................................................................................................................. 83 Background Information ....................................................................................................................... 84 The Way the Sequence Text File Describes the Physical Resource......................................................... 85 Sequence Text File Layout .................................................................................................................... 87 Lines in Detail ...................................................................................................................................... 89 Sequence Text File Guidelines and Examples ....................................................................................... 92
5 Detailed Table of Contents 28 April, 1998
Chapter 2: Economics Text File .................................................................................................................. 94 Overview .............................................................................................................................................. 94 Background Information ....................................................................................................................... 95 Economics Text File Layout.................................................................................................................. 96 Lines in Detail ...................................................................................................................................... 98 Allowed Value Types and Functions ................................................................................................... 109 Economics Text File Guidelines and Examples ................................................................................... 114 Chapter 3: Spreadsheet Files..................................................................................................................... 116 Overview ............................................................................................................................................ 116 Section A: Spreadsheet Definition File .................................................................................................... 117 Overview ............................................................................................................................................ 117 Background Information ..................................................................................................................... 118 Spreadsheet Definition File Layout ..................................................................................................... 119 Spreadsheet Definition File Codes....................................................................................................... 120 Spreadsheet Definition File Guidelines and Examples......................................................................... 126 The Application of Spreadsheet Codes ................................................................................................ 128 Section B: Spreadsheet Output File.......................................................................................................... 132 Overview ............................................................................................................................................ 132 Background Information ..................................................................................................................... 133 Spreadsheet Output File Layout and Format........................................................................................ 134
PART 4: TECHNIQUES ......................................................................................... 137

Overview ............................................................................................................................................ 137 Chapter 1: Auxiliary Files and Computer Techniques ............................................................................. 138 Overview ............................................................................................................................................ 138 Auxiliary Files .................................................................................................................................... 139 Log Files............................................................................................................................................. 141 Running the Programs in Batch Files.................................................................................................. 146 Simplifying the Text Files to Improve the Speed of Processing............................................................ 151 Chapter 2: Economic Factors .................................................................................................................... 153 Overview ............................................................................................................................................ 153 Constant Dollars ................................................................................................................................. 154 Prices.................................................................................................................................................. 155 Costs - General ................................................................................................................................... 159 Costs - Specific ................................................................................................................................... 160 The Application of Costs..................................................................................................................... 164 Cost Estimation Sheets ....................................................................................................................... 168 Chapter 3: Mining Factors ........................................................................................................................ 171 Overview ............................................................................................................................................ 171 Iteration.............................................................................................................................................. 172 Stockpiles ........................................................................................................................................... 173 Processing Throughput Factors ........................................................................................................... 179 Pre-stripping....................................................................................................................................... 181 Processing Recovery (non linear recovery) .......................................................................................... 182 Cut-offs............................................................................................................................................... 183
PART 5: TUTORIALS AND EXERCISES .............................................................. 185

Overview ............................................................................................................................................ 185 Preparation ......................................................................................................................................... 186
Tutorial 1 - A Simple Run Through of the Main Programs...................................................................... 189 Overview ............................................................................................................................................ 189 Step 1: Producing the Sequence Binary File with the Sequence Input Program.................................... 190 Step 2: Producing the Economics Binary File with the Economics Input Program............................... 193 Step 3: Doing the Optimization with the Optimization Program ......................................................... 197 Step 4: Producing the Report using the Print Results Program ............................................................ 201 Step 5: Re-running the Print Results Program to obtain the Marginal Cut-off Scenario ....................... 211 File Summary ..................................................................................................................................... 214 What you have Learnt......................................................................................................................... 215 Exercise 1 - Automating the Process.......................................................................................................... 216 Overview ............................................................................................................................................ 216 Step 1: Copying and Editing the Text Files ......................................................................................... 217 Step 2: Using the Batch Processing Program....................................................................................... 218 File Summary ..................................................................................................................................... 220 What you have Learnt......................................................................................................................... 221 Tutorial 2 - Four-D and Four-X Interfaces and Sequence Compaction ................................................... 222 Overview ............................................................................................................................................ 222 Step 1: Producing the Initial Sequence Binary File with the Sequence Input Program ......................... 223 Step 2: Producing the Compacted Sequence Binary File with the Compaction Program ...................... 225 Step 3: Producing the Economics Binary File using a Log File............................................................ 227 Step 4: Running the Optimization using a Log File............................................................................. 229 Step 5: Running the Print Results Program with a Log File and Spreadsheet Output ........................... 230 What you have Learnt......................................................................................................................... 234 Exercise 2 - Varying the Compaction ........................................................................................................ 235 Tutorial 3 - Using a Stockpile .................................................................................................................... 237 Overview ............................................................................................................................................ 237 Step 1: Copying and Editing Files....................................................................................................... 238 Step 2: Using the Batch Processing Program....................................................................................... 240 Step 3: Doing a Cash Flow Analysis ................................................................................................... 242 What you have Learnt......................................................................................................................... 245 Exercise 3 - Adjusting Throughput............................................................................................................ 246 Overview ............................................................................................................................................ 246 Exercise 3a - Making Stockpile Usage Independent of Rock Limit ...................................................... 247 Exercise 3b - Altering the Mining Throughput Limit .......................................................................... 248 Tutorial 4 - Multi-element Deposits........................................................................................................... 250 Overview ............................................................................................................................................ 250 Procedure and Discussion ................................................................................................................... 252 Exercise 4 - Multi-element Stockpiles ....................................................................................................... 256 Overview ............................................................................................................................................ 256 Exercise 4a: Single Stockpile .............................................................................................................. 257 Exercise 4b: Multiple Stockpiles ......................................................................................................... 259 Exercise 4c: Using Both Elements to Control Stockpiles ..................................................................... 260
APPENDICES......................................................................................................... 262
Overview ............................................................................................................................................ 262 Appendix A: NPV, Discount Rate and Inflation........................................................................................ 263
Appendix B: How the Optimization is Achieved....................................................................................... 264 Overview ............................................................................................................................................ 264 Special Costs ...................................................................................................................................... 265 The Steps Involved in Optimization .................................................................................................... 268 Appendix C: Program Limits .................................................................................................................... 269 Appendix D: Error Messages..................................................................................................................... 270 Overview ............................................................................................................................................ 270 Data Checks........................................................................................................................................ 271 Problem Traps .................................................................................................................................... 272 System Error Messages ....................................................................................................................... 273 Appendix E: Requests for Program Enhancement ................................................................................... 275
GLOSSARY............................................................................................................ 276 INDEX..................................................................................................................... 290
About this Release
Introduction
This version of the Opti-Cut Manual was released with version 1.0 of the Whittle Opti-Cut optimization software.
What Opti-Cut does
Opti-Cut adds another dimension to the existing Whittle optimization products, Three-D, Four-D and Four-X. It allows the user to investigate how changing the cut-offs with time and the use of stockpiles can increase the Net Present Value of a project. For many mines, particularly those with a long mine life, this increase can be substantial.
Main features
The main features of Opti-Cut are:

It can use a mining sequence directly from a Generalised Mining Package
from Whittle Four-D or Four-X, or a sequence can be defined by the user.

It can handle multiple elements, rock-types, processing methods,
throughput limits and stockpiles.

The user can define economic scenarios that vary with time. It can capture the results in spreadsheet format for graphing and further
analysis.
Application
Opti-Cut can be applied to:

underground mines, and open-cut mines.
9 About this Release 28 April, 1998
Part 1: Introduction Overview
In this part
This part contains the following sections. Section Section A: How this Manual is Structured Section B: Using this Manual Section C: Opti-Cut Methodology Section D: Opti-Cut, Your Computer and Other Whittle Programs See Page 11 13 21 24
10 Part 1: Introduction 28 April, 1998
Section A: How this Manual is Structured
Introduction
This Manual contains everything you need to know in order to use the Opti-Cut package effectively. The Manual is divided into eight parts. These parts are described below.
Part 1: Introduction
This part contains:

An overview of Opti-Cut and the structure of the Manual. Information about how to use this Manual, terminology, abbreviations and
conventions used.
The genesis of Opti-Cut and an overview of the package. Hardware and software requirements, how to install Opti-Cut on your
machine and the Four-D and Four-X interfaces. See page 10.
Part 2: Programs in the Opti-Cut Package
This part provides:

An overview of:
- prompts and responses, special keys and default answers - each of the programs, and, - the files used by these programs.
Information about how to run the programs and how to get the most out of
the Opti-Cut package. See page 30.

Part 3: Detailed File Formats
This part provides details of the different files used by the programs, and their formats. See page 82.
Part 4: Techniques
This part contains information about:

Auxiliary files and computer techniques. Economic factors. Mining factors.
See page 136.

Continued on next page
Section A: How this Manual is Structured, Continued

Part 5: Tutorials and Exercises
These tutorials and exercises are designed to help you learn about Opti-Cut and build up the necessary skills to use it. See page 185.
Appendices
This part contains information about:

How the optimization is achieved. Program limits. Error messages. Requests for program enhancement.
See page 262.

Glossary
This part contains a list of terms used in the Manual, and their meanings. See page 275.
Index
This part contains an Index of the concepts and terms used in the Manual. See page 290.
Section B: Using this Manual Overview
In this section
This section contains the following topics. Topic Conventions Used in this Manual Terminology Abbreviations See Page 14 18 21
Conventions Used in this Manual
Introduction
This topic discusses the conventions used in this Manual. In particular it covers:
The use of brackets and special characters. The use of visual guides. Program names and Command Line names.
Enter symbol
In this Manual, the symbol is used to indicate that you need to press the Enter (or Return) key. Here is an example.
In response to the question, Please enter a name for the print file, type: octut1
In the preceding example, the indicates that you need to press the Enter key after typing in octut1.
Square brackets [ ]
Throughout the Manual, whenever we show a default response to a question asked by the Opti-Cut program, that response is enclosed in square brackets [ ]. Here is an example.
Please enter the name of the Result Binary File [octut1.rbi] :
In the preceding example, the filename octut1.rbi is the default response given by the program.
Conventions Used in this Manual, Continued
Angle brackets < >
Throughout the Manual, angle brackets < > are used to indicate that the appropriate codes or values should be inserted where the brackets appear, replacing the brackets and any information enclosed by them. Here is an example.
EL <Element code> <Decimals>
In the preceding example, the angle brackets and the information enclosed in them indicate that the appropriate information should be inserted, replacing the angle brackets and the information contained in them.
Italics
Glossary terms In this Manual, the first instance in each topic of a Glossary term is italicised. This is to indicate that a definition can be found in the Glossary at the back of this Manual. Here is an example.
This is particularly relevant for workstations.
Topic References Italics are also used to highlight references to related topics or literature. Here is an example.
For more information, see Four-D and Four-X Interfaces, on page 28.
Bold type
Bold type is used in this Manual:

To show the users response to a question asked by Opti-Cut.
Here is an example.
Print file name
Call the print file octut1.prs.
To emphasise important words or to highlight filenames.
Here is an example.
On a separate diskette, you will have been provided with your oc.ini file.
Underlining
In this Manual, underlining is used in:

Program names.
To indicate the letters from the Program name that make up the Command Line name. See below for more information about Command Line names and Program names.
File types.
To indicate the letters that make up the file extensions for those file types. See page 42 for more information about file types and extensions. Underlining is only used where it will be most helpful to the user to determine Command Line names or file extensions.
Program names and Command Line names
As the user has two means of accessing Opti-Cut programs, that is via the Menu or from the Command Line, each of the programs in the Opti-Cut package has two names:
a Program name, and, a Command Line name.
In this Manual, for reasons of consistency, Program names have been used in preference to Command Line names. The following table lists Opti-Cut Program names and their corresponding Command Line names. Program name Sequence Input List Details Compaction Economics Input Optimization Print Results Batch Processing For more information, see page 53. OCSE OCLD OCCO OCEC OCOP OCPR OC Command Line name
Terminology
Introduction
There are a number of special terms used in this Manual. These are explained in the body of the text and in the Glossary, but are also explained below to make it easier to read this Manual for the first time. Note: generally, the first instance of a Glossary term in each topic is italicised to indicate that a definition can be found in the Glossary at the back of the Manual.
Cost adjustment The cost of mining and the cost of processing can vary with position in the pit. factors Opti-Cut deals with this by using positional cost adjustment factors (CAFs).
Cost of mining
In this Manual, unless the context indicates otherwise, this means the cost of blasting, loading and hauling a tonne of rock of a particular type as waste at the Reference Position. The cost of mining this type of rock as waste in any other position is obtained by multiplying the cost of mining the same rock at the Reference Position by the positional mining CAF for the group in question.
Cost of processing
This is the difference between the total cost of blasting, loading, hauling and processing a tonne of a particular type of rock as ore, and the total cost of blasting, loading and hauling the same type of rock as waste, both at the Reference Position. The cost of processing for this type of rock in any other position is obtained by multiplying the cost of processing the same rock at the Reference Position by the positional processing CAF for the group in question.
Element
A substance in the mineralised material which is of interest to the study, and for which grades are available.
Product
An element which may be extracted for sale.
Reference Position
A particular position in the mine, chosen by the user, for which all mining and processing costs are calculated. If the costs are different in other parts of the mine, this is handled by positional CAFs for mining and/or processing in each group.
Terminology, Continued
Rock
This refers to all material, not just waste. A sequence is the order in which material is to be mined. A sequence consists of one or more increments, each in turn consisting of a number of groups. The following diagram illustrates the relationship between a sequence and a series of increments and groups.
Sequence, increment, group
Increment 1
Groups
Sequence
Increment 2
Increment 3
Increment An increment is a section of a sequence which can be assumed to be mined as a unit. That is, in any time period a given fraction of everything in the increment will be mined. An increment consists of one or more groups. Group A group is a section of an increment which is all of one type of rock and which has particular grade characteristics. A group has a tonnage, and grade information for each element in the rock-type. The grade information can, in each case, be either in the form of an average grade or a range consisting of minimum, average and maximum grades. If more than one element is involved, grade ranges should be sufficiently narrow for it to be assumed that there is no correlation between the grades of different elements within the group. Multiple groups of the same rock-type can be used to represent any grade distribution to arbitrary accuracy. Each group carries mining and processing CAFs.
Continued on next page 19 Part 1: Introduction 28 April, 1998
Terminology, Continued
Stockpile
An accumulation of ore set aside for later processing. A rock-type and one or more grade ranges are specified for each stockpile.
Time costs
Costs that continue during mining, regardless of the amount mined, processed or sold. These are often called overheads or G&A (General and Administration) costs.
Units
The units used for quantities of rock, elements, and currency are arbitrary, but only one unit is allowed for each. Different elements can have different units. Note: although the program and Manual refer to Tonnes throughout, Tons or Short Tons can be used, provided they are used everywhere.
Abbreviations
Abbreviations
The following abbreviations are used in this Manual. Abbreviation NPV GMP m k CAF IRR G&A costs PC Term Net Present Value Generalised Mining Package million(s) thousand(s) Cost Adjustment Factor Internal rate of return General and Administration costs Personal Computer
Section C: Opti-Cut Methodology
Introduction
Opti-Cut allows the user to investigate how:

changing the cut-offs with time, and the use of stockpiles
can increase the Net Present Value of a project.

Genesis
Opti-Cut is based on cut-off optimization concepts described in The Economic Definition of Ore by Kenneth F. Lane . Opti-Cut improves on Lanes approach by using different, more advanced optimization and convergence techniques. Nevertheless, after spending three years developing Opti-Cut, we are left with a profound admiration for the work of Lane and his predecessors.
Main features
Opti-Cut has been designed to be as flexible as possible to cater for all the different types of mining and processing which occur, and to allow designers the maximum scope for creativity. Some of the major features offered by Opti-Cut are:
Ability to handle multiple:
- Rock-types. - Elements, where each element may or may not be: - Subject to a cut-off. - A product. - Production processes and throughput limits. - Stockpiles.
Ability to handle optimized cut-offs fixed for each period or for each
period/increment.
User definable (mining) sequence descriptions that are flexible enough to
allow the user to specify them for: - scoping studies - design work - sensitivity analysis, and, - production planning.
User definable economic scenarios that allow full variation with time of all
variables.
Spreadsheet output to allow further analysis and plotting of the results. Continued on next page Kenneth F. Lane, The Economic Definition of Ore: Cut-off Grades in Theory and Practice, Mining Journal Books Limited, London, 1988. 22 Part 1: Introduction 28 April, 1998
Section C: Opti-Cut Methodology, Continued
Programs in the Opti-Cut package
The Opti-Cut package consists of six separate programs, and a control program called the Batch Processing Program (OC), to automate their operation. The programs are the:

Sequence Input Program (OCSE). List Details Program (OCLD). Compaction Program (OCCO). Economics Input Program (OCEC). Optimization Program (OCOP). Print Results Program (OCPR).
For more information
For more information, see Part 2: Programs in the Opti-Cut Package, starting on page 30.
Section D: Opti-Cut, Your Computer and Other Whittle Programs Overview
In this section
This section contains the following topics. Topic Hardware and Software Requirements Installing Opti-Cut on Your Computer Four-D and Four-X Interfaces See Page 25 26 28
Hardware and Software Requirements
Introduction
This section lists the hardware and software requirements for running Opti-Cut:
On a PC. On a UNIX workstation.
PCs
Minimum requirements

IBM compatible PC version 386 4MB of memory maths co-processor, and, 30MB of free disk space.
Preferred
IBM compatible Pentium PC 16MB of memory, and, 100MB of free disk space.
Platforms Opti-Cut will run:

under DOS, and, in a DOS window under Windows 3.x, Windows 95, Windows NT and
OS/2.
UNIX workstations
Minimum requirements
16MB of memory, and, 100MB of free disk space.
Preferred Because of the multi-process nature of workstations, the preferred configuration is:
32MB or more of memory, and, 300 MB or more of free disk space.
Installing Opti-Cut on Your Computer
Installing Opti-Cut on your PC
PCs This section details the procedure for installing Opti-Cut on your PC. Other computers If you are installing Opti-Cut on a computer that is not a PC, then you will be given separate instructions about installing it.
The diskettes
This release consists of:

Two program diskettes
- PC Version, Disk 1 of 2 and PC Version, Disk 2 of 2.

One installation diskette for Windows icons
- Whittle Icons, Disk 1 of 1. If this is your first copy of Opti-Cut, you will also receive a separate diskette containing the Opti-Cut initialization file (oc.ini). Existing users will have received their initialization file on a separate diskette when they received their first copy of Opti-Cut.
Procedure
Follow these steps to install Opti-Cut on your PC. Step 1. 2. Action Make sure you are in MS-DOS mode or you have a DOS window open. Select your hard drive as the default drive. Example Type C: at the DOS prompt, then press the Enter key to change your default drive to the C drive. 3. 4. Insert the disk labelled PC Version, Disk 1 of 2 into a diskette drive. At the DOS prompt run the program, INSTALL, by typing: x:INSTALL (then press the Enter key ) Where x is the letter name of the diskette drive. Example C:> a:INSTALL In this example, Opti-Cut would be installed from the A drive.
Installing Opti-Cut on Your Computer, Continued
Procedure (continued)
Step 5.
Action Follow the instructions on the screen carefully. By default, the installation will install the programs into C:\OC and the tutorial information into C:\OC\TUTOR. You can change these defaults and also control what to load. The Opti-Cut programs will be installed onto your computer. If you are running under Windows 3.1, 95 or NT, you can also install the Whittle icons. To do this:
Insert the disk labelled Whittle Icons, Disk 1 of 1 into a
6.
diskette drive. At the DOS prompt, run the program, INSTALL, by typing: x:INSTALL (then press the Enter key ) Where x is the letter name of the diskette drive. Example C:> a:INSTALL In this example, Opti-Cut would be installed from the A drive. Follow the instructions on the screen carefully. The Whittle icons will be installed onto your computer. 7. On a separate diskette, you have been provided with an oc.ini file. Copy this file:
into directory \oc\tutor, and, into any directory where you intend to do work with Opti-Cut.
It would also be a good idea to store it in a directory \oc\ini for safekeeping.
For more information, refer to the Read.me file located on PC Version, Disk 1 of 2.
Four-D and Four-X Interfaces
Introduction
Customers who use either Four-D or Four-X can produce a Sequence Text File and an Economics Text File from FDAN or FXAN for use with Opti-Cut. To do this you must enable Opti-Cut output from Four-D or Four-X. This section describes how you can do this.
Procedure
The procedure to enable Opti-Cut output from Four-D or Four-X is as follows. Step 1. Action Open and view the: Four-D initialization file, fd.ini, or, Four-X initialization file, fx.ini using a text editor or a word processor in pure text mode. Under the [System] section header, check to see if there is a line beginning with the words: Opti-Cut=
If there is a line beginning Opti-Cut=:
2.
- and the line reads Opti-Cut=Yes, then the program is enabled for Opti-Cut output. - and the line reads Opti-Cut=No, then the program is not enabled for Opti-Cut output. To enable Opti-Cut output, edit the line to read Opti-Cut=Yes. If there is there is no Opti-Cut= line under the [System] section header, edit the file to include Opti-Cut=Yes in the [System] section. The line Opti-Cut=Yes can occur anywhere in the [System] section. It does not need to be the first line. 3. Save the file and exit from the text editor or word processor.
Four-D and Four-X Interfaces, Continued
Producing an Opti-Cut sequence
To produce Opti-Cut files:

Run a single economic analysis for a single mining sequence (best, worst or
scheduled).
An additional message will appear that asks whether you want to produce
Opti-Cut output.
If you answer yes (Y), then nominate the filename.
Note: you should check the Economics Text File to ensure that capital costs and time costs have been applied and that there are no other matters, such as throughput factors or expressions to tidy up. Note also: Opti-Cut files produced from Four-D or Four-X should be compacted so that the programs run more quickly. See page 50 for further discussion of this.
Part 2: Programs in the Opti-Cut Package Overview
Introduction
This part provides some general information about using Opti-Cut. It also provides information about the programs in the Opti-Cut package, and the files used by those programs.
In this part
This part contains the following two chapters. Chapter Chapter 1: Getting Started Chapter 2: The Programs See Page 30 53
30 Part 2: Programs in the Opti-Cut Package 28 April, 1998
Chapter 1: Getting Started Overview
In this chapter
This chapter contains some basic information about the programs and their operation. It is divided up into the following topics. Topic Program Description Accessing the Programs At the Terminal Files Getting the Most out of the Package See Page 32 34 38 42 49
Program Description
Introduction
The Opti-Cut package consists of six separate programs: The programs are the:

Sequence Input Program List Details Program Compaction Program Economics Input Program Optimization Program, and, Print Results Program.
In addition, Opti-Cut has a control program which automates the operation of several of the programs. It is called the Batch Processing Program. The function of each of the programs is as follows.
The Sequence Input Program (OCSE)
The Sequence Input Program:

reads the Sequence Text File which describes the physical resource and the
proposed mining sequence

creates a Sequence Binary File containing the information in a form more
suitable for optimization, and,

creates a print file.
The List Details Program (OCLD)
The List Details Program:

checks the validity of the Sequence Binary File, and then, prints a report of the information in the Sequence Binary File to a print file,
enabling the user to double-check the information.

The Compaction Program (OCCO)
The Compaction Program:

Compacts the information contained in Sequence Binary Files and Sequence
Text Files. This can reduce: - the size of files, and, - the time taken for an optimization.
It also creates a print file. Continued on next page
Program Description, Continued
The Economics Input Program (OCEC)
The Economics Input Program:

reads the Economics Text File containing information about an economic
scenario
creates an Economics Binary File containing the information in a form more
suitable for optimization, and,

creates a print file.
The Optimization Program (OCOP)
The Optimization Program:

reads the Economics Binary File as well as the Sequence Binary File
(indirectly)
performs the optimization, produces a Result Binary File, and, creates a print file.
The Print Results Program (OCPR)
The Print Results Program:

reads the Result Binary File as well as the Sequence and Economics Binary
Files (indirectly)
prints the results to a file that can be read by the user, and, produces spreadsheet output, if requested.
The Batch Processing Program (OC)
The Batch Processing Program:

controls the:
- Sequence Input Program (OCSE) - Economics Input Program (OCEC) - Optimization Program (OCOP), and, - Print Results Program (OCPR). It automatically executes these programs in their required order.
Accessing the Programs
Introduction
The programs can be accessed in two ways:

via the Menu, or, from the Command Line.
Accessing the Menu
The Menu is accessed:

from the Command Line, by typing: OCMENU and then pressing the Enter key ()
- or from Windows, via the Whittle Opti-Cut icon:
Once the Menu has been accessed, all programs will return to the Menu, on completion, after the message:
Press any key to continue
Here is a diagram of the Opti-Cut Menu.
Continued on next page 34 Part 2: Programs in the Opti-Cut Package 28 April, 1998
Accessing the Programs, Continued
Main Menu Bar
The Main Menu Bar has three drop down submenus:

Files. Options. Selections.
Selection submenu By default, the Opti-Cut Menu comes up with the Selection submenu open, ready for you to select a program. Unlike the other two submenus, the Selection submenu appears on the right hand side of the screen. The Selection submenu lists the Opti-Cut programs generally in order of use. It also allows you to:
view output invoke a text editor, and, exit from the program.
When another submenu has been selected, the Selection submenu is still visible, but it is greyed out, and you will be unable to select any of the items from the Selection submenu. Files submenu The Files submenu sets the locations, or paths, of the:
Working directory.
The working directory is maintained from session to session and can be updated here. The working directory is displayed on the Menu, above the Selection submenu. Programs are run from within the working directory.
Program.
The program path is automatically set up during the installation process. If you change the location of the programs, then the program path must be updated. The system will check to ensure that the programs exist in the directory you specify.
Viewer.
This item allows you to specify the path for your favourite file viewer.
Editor.
This item allows you to specify the path for your favourite text editor. Remember you only need a text-based editor. A typical path could be:
c:\dos\edit.com (or c:\windows\command\edit.com)
or
c:\util\list.com
EDIT is provided with MS-DOS 5.0 and above. LIST is shareware. It is almost universally available, however, if you have difficulty in locating a copy, please contact Whittle Programming. UNIX users can use emacs, jove, vi etc. The system will check to ensure that the program exists. The Files submenu also allows you to exit from the program. Options submenu The Options submenu sets the screen colour. The colour of the screen can be changed to monochrome, or to a variety of colour schemes.
Menu: selecting items
The user can select an item from the Menu or a submenu by:
Moving the highlighted bar with the:
- up () or down () arrow keys on the keyboard, and then, - pressing the Enter key (). For example, if you typed the letter L, the List Details Program would be started.
Typing one of the letters or numbers highlighted in the Menu items.
Using the point and click method, with a mouse.
Menu: exiting
The Menu can be exited by:

Choosing eXit from the Selection submenu or from the Files submenu. Pressing the Escape key (Esc) twice and then pressing the Enter key (). Continued on next page
The Command Line
The programs can be accessed from the Command Line, by typing in the Command Line name and pressing Enter (). Example Typing: ocse at the Command Line, would start the Sequence Input Program. Hint Make sure that you are in the appropriate data directory, a copy of oc.ini is also in that directory, and the Opti-Cut program directory is in your PATH. Here is a table of Command line names, and corresponding Program names. Command Line name OCSE OCLD OCCO OCEC OCOP OCPR OC Program name Sequence Input Program List Details Program Compaction Program Economics Input Program Optimization Program Print Results Program Batch Processing Program
Working out the Command Line name
The Command Line name is made up of four letters:

The first two letters of the Command Line name are always OC,
for Opti-Cut.
The last two letters of the Command Line name relate to the name of the
particular program (with the exception of the Batch Processing Program). In the table above (and throughout this Manual), we have underlined the letters in the Program Name that make up the Command Line name.
At the Terminal
Introduction
This topic contains information about user interaction with the Opti-Cut programs. In particular, it discusses:

prompts and answers selecting from a list of items default answers editing default answers and text overwriting files, and, exiting a program.
Prompts and answers
All user interaction with Opti-Cut takes the form prompts for information, to which you respond by typing an answer. The prompts request:
decisions values, or, filenames.
Below is an example of a prompt.
Please enter the name of the Result Binary File :
Note: Opti-Cut can handle filenames containing upper and lower case alphabetic characters.
On a PC, the alphabetic case of your responses is irrelevant. On UNIX systems, where it is usual to use lower case filenames, the
alphabetic case is important.

At the Terminal, Continued
Selecting from a list of items
Sometimes Opti-Cut will display a list of options or items from which you can choose. Generally, items can be selected by typing one of the:
highlighted letters, or, numbered options
in the list. Use the Escape key (Esc) to move from a selected submenu to the parent Menu.
Default answers
Opti-Cut will often include a default answer in a prompt. The default answer is always enclosed in square brackets: [ ] If the default answer is the answer you want to give, just press the Enter () key. Here is an example of a default answer:
Please enter the name of the Result Binary File [octut1.rbi] :
In this case, if you press , octut1.rbi will be used. Alternatively, you could type in a different answer.
Editing default answers and text
Editing default answers On PC compatibles and some other systems, it is possible to edit default answers. If a default is given and the first key you press is the backspace key or the left arrow key, then the default answer will appear on the screen as though you had typed it. You will then be able to edit it. Note: pressing the Esc key will restore the text to the original default answer. Editing text The following table lists the effects of the various special keys on text. Key End Home Left arrow Right arrow DEL Backspace INS Ctrl + Y Esc Function moves the cursor to the end of the text. moves the cursor to the start of the text. moves the cursor one character to the left. moves the cursor one character to the right. deletes the character at the cursor position. deletes the character to the left of the cursor. toggles between insert and overtype mode. deletes all the text. restores the text to the original default answer (see Default answers, below).
Overwriting files
Opti-Cut will not allow you to overwrite an existing data file with a new file unless you type the cross-hatch character (#) in front of the filename (with no space in between). Example By typing:
#myrun1
you would be telling Opti-Cut to overwrite the file, myrun1. If Opti-Cut suggests a default filename that you want to re-use, you merely have to type the # character. The # character does not form part of the filename. Note: on some UNIX systems # is set up as the erase key. If this is the case on your system, please redirect erase to some other key.
Exiting from a program
PC To exit from a program on a PC, hold down the Control key (Ctrl) and type the letter C. Where you have not yet typed a response, you will then need to press the Enter key (). UNIX Under UNIX, the command for exiting a program varies as it is usually set up by the user. However, as a starting point we suggest that you try Ctrl C or Ctrl Y. Terminating the Optimization Program There is a special arrangement for terminating the Optimization Program during an optimization run. To terminate an optimization run, press the Escape (ESC) key.
Files
Introduction
Opti-Cut uses a wide range of files. Some are created by:

your GMP, Four-D or Four-X you Opti-Cut itself
- and Some are supplied with the package.
This section contains a description of each of the files that you will use. See page 82 for the detailed layouts of those files that you may have to work on.
File types
The types of files used by Opti-Cut are explained below. Sequence Text File Default extension Description Created by .stx A text file that describes the physical resource and the proposed mining sequence.
a GMP, Four-D or Four-X, or, the user, with a text editor or a word processor
in pure text mode. Used by

The Sequence Input Program, to create a
Sequence Binary File. The Compaction Program. For more information See page 83.
Files, Continued
Sequence Binary File Default extension Description .sbi A binary file that carries the information from the Sequence Text File, but in a form more suitable for optimization. The Sequence Input Program. You should never attempt to alter Sequence Binary Files in any way.
The List Details Program. The Compaction Program. The Optimization Program (indirectly). The Print Results Program (indirectly).
Created by
Used by
Economics Text File Default extension Description .etx A text file that contains detailed information about an economic scenario and how the optimization is to be done. Four-D or Four-X, or,
the user, with a text editor or a word processor
Created by
Used by For more information
in pure text mode. The Economics Input Program to create an Economics Binary File. See page 94.
Files, Continued
Economics Binary File Default extension Description .ebi A binary file that carries the information from the Economics Text File, but in a form more suitable for optimization. The Economics Input Program. You should never attempt to alter Economics Binary Files in any way. The Optimization Program.
The Print Results Program (indirectly).
Created by
Used by
Result Binary File Default extension Description Created by .rbi A binary file that contains the results of an optimization. The Optimization Program. You should never attempt to alter Result Binary Files in any way. The Print Results Program to produce the printed report and spreadsheet output.
Used by
Spreadsheet Definition File Default extension Description .ssd A text file that controls the data that the Print Results Program outputs to the Spreadsheet Output File. The user, with a text editor or a word processor in pure text mode. The Print Results Program. See page 117.
Created by Used by For more information
Files, Continued
Spreadsheet Output File Default extension Description .sso A text file that contains output from the Print Results Program, in a form suitable for importation into a spreadsheet program. The Print Results Program. The customer, for importation into a spreadsheet. See page 132.
Created by Used by For more information
Print files
Print files are files in which the different programs store the results of their runs. These files can be viewed by the user. Opti-Cut has a different print file extension for each of the main programs. Here is a list of default print file extensions. File type Default file extension
Print files for the: Sequence Input Program

List Details Program Compaction Program Economics Input Program Optimization Program Print Results Program
.prs .prl .prc .pre .pro .prp
To view or print a print file You can view or print out a print file:
using a word processor or text editor
- or from the Command Line.
The following table shows how you can view or print out a print file from the Command Line. On a PC To view a print file, type:
EDIT <filename and extension>
On UNIX To view a print file, type:

more <filename and extension>
- or TYPE <filename and extension> | MORE
- or pg <filename and extension>
To print a print file, type:

print octut1.prs
To print a print file, type:

lp octut1.prs
Files, Continued
Log files
Log files are files that contain abbreviated prompts and answers. They can be used to re-run a program using the previously logged set of prompts and answers. Opti-Cut has a different log file extension for each of the main programs. Here is a list of default log file extensions. File type Default file extension
Log files for the:

Sequence Input Program List Details Program Compaction Program Economics program Optimization Program Print Results Program
.los .lol .loc .loe .loo .lop
For more information about using log files, see page 141.
Filenames and extensions
Opti-Cut has special facilities for handling filenames and extensions, to minimize data entry. As programs are run, the filenames and the extensions used are recorded in the initialization file, oc.ini. In a subsequent run of the same, or a different program, these recorded filenames will be offered as defaults. Note:
If you type in a filename without an extension, Opti-Cut will add the default
extension for a file of that type. If Opti-Cut adds an extension to a filename, it will match the alphabetic case of the extension to the case of the last alphabetic character in the name.
If you want to make sure the filename has no extension, you should end it
with a full stop (.).

Files, Continued
Naming files
As you control the names of many of the files created by the Opti-Cut programs, the following may be useful when choosing names for those files. Use a project name or code and series number Opti-Cut has been set up so that it is possible to run all of the programs using the same name part, and letting the program add the appropriate default extension. Because of this, the use of a project name or code, and a series number may be the easiest way of maintaining filename consistency for a project. Filename limitations
Under DOS, filenames are currently limited to 8 characters. For both DOS and UNIX there is an overall limit of 50 characters in
Opti-Cut for the filename and any directory path name.

Opti-Cut uses filename extensions to distinguish the different types of files.
See page 42 for more information. Alphabetic case Note: Opti-Cut can handle filenames containing upper and lower case alphabetic characters. This is particularly relevant for UNIX computers, where it is usual to use lower case letters.
Getting the Most out of the Package
Introduction
This topic details:

The minimum you have to do to find a life-of-mine set of cut-offs. Options, suggestions, and factors to consider when doing an optimization.
Minimum required
The following table sets out the minimum you have to do to find a life-of-mine cut-off strategy, using Opti-Cut. Stage 1. Description Prepare a description of the material you plan to mine, and the sequence in which you plan to mine it. This should be in the form of a Sequence Text File. Run the Sequence Input Program to create a Sequence Binary File. Prepare a description of the economic conditions under which you expect to operate, in the form of an Economics Text File. Run the Economics Input Program to create an Economics Binary File. Run the Optimization Program to optimize the cut-offs. Run the Print Results Program to print the results of the optimization detailing: cut-offs tonnages grades cash flows, and, discounted cash flows to a print file.
2. 3. 4. 5. 6.
Getting the Most out of the Package, Continued
Getting the most out of the package
Unfortunately, the simple approach described above is unlikely to lead to the best solution. This is because no allowance is made for experimentation or for sensitivity work. Consider the following ideas.
Merging increments and/or periods
Some Sequence files, particularly those created by Four-D and Four-X, contain a large number of small increments. Opti-Cut treats each of these increments as a separate entity which must be completely mined and processed before the rest is started. Because of this, Opti-Cut is unable to balance the throughputs between increments. For example, if increment A is all waste and increment B is all ore, Opti-Cut will apply the mining throughput limit to A and leave the processing mill idle. It will then apply the processing limit to B and leave the mining fleet under-utilised. The effect can be reduced by combining a collection of small increments into larger increments, using the Compaction Program. You should aim for the largest increment which would still allow you sufficient day-to-day scheduling flexibility to enable you to maintain steady streams of ore and waste.
Compacting point grades
If the Sequence Text File or Sequence Binary File contains a large number of point grades, as distinct from grade ranges, use the Compaction Program to combine the point grades into small grade ranges. This will have almost no discernible effect on the accuracy of the optimization. However, it can reduce the size of the Sequence Binary File, and this will greatly reduce the optimization time. Note: both merging increments and compacting point grades can be done in one run of the Compaction Program. For more information about compaction, see pages 60 and 152.
Economics Text File options
After the first run through, there are a number of different options in the Economics Text File that you should experiment with. In particular you should look at the following:
Using stockpiles. Varying some of the major economic values, such as price, to see if the
cut-offs are sensitive to such changes. Each trial will involve changing the Economics Text File, then re-running the:
Economics Input Program Optimization Program, and, Print Results Program.
You can run them individually, or use the Batch Processing Program to automate the procedure.
Balancing the project
Check the actual rock and process values and compare them with the throughput limits to see how balanced the load is over the life of the project.
Are there any items you can change to achieve a better balance? Will contract mining help in the first few years? What effect do these activities have on the NPV? Continued on next page
Sensitivity analysis
As with any results from an optimization process, you need to get a feel for the stability of the results with changing circumstances (economics, mining schedule and throughput limits). A small change in an input parameter or value that produces a large change in the resultant NPV identifies that parameter or value as very significant when assessing the risks associated with the project. Conversely, a large change in an input parameter or value that produces a small change in the resultant NPV identifies that parameter or value as a lower risk attribute. You should plan runs that include the best and worst circumstances that are likely with the mine. It is obvious that changing prices and costs will affect the NPV of the mine, but varying these parameters in multiple runs will give you a feel for how much these parameters will affect NPV. The same is true for throughput limits. If you are using Four-D or Four-X to produce the mining sequence for Opti-Cut, then you should get it to produce two Sequence Text Files. One should be based on a best case mining sequence, and the other should be based on a worst case mining sequence. Finally, you should include at least one optimization by period and one by interval (where all other aspects are kept constant) to see if there are any sensitivities associated with holding cut-offs constant over a period or an interval.
For more information about getting the most out of the package, see Part 4: Techniques, starting on page 136.
Chapter 2: The Programs Overview
In this chapter
This chapter describes the programs in detail. It contains the following topics. Topic Sequence Input Program (OCSE) List Details Program (OCLD) Compaction Program (OCCO) Economics Input Program (OCEC) Optimization Program (OCOP) Print Results Program (OCPR) See Page 54 57 60 66 69 76
Acknowledgement
The clip art included in this chapter is provided by permission of CorelDraw Corporation, 1996. All rights reserved.
Sequence Input Program (OCSE)
Purpose
The Sequence Input Program:

reads the Sequence Text File describing the physical resource and the
proposed mining sequence, and then,

creates a Sequence Binary File containing the information in a form more
suitable for optimization. This is generally the first program that you run.
Files
Files used
Sequence Text File - default file extension .stx.
Files created
Print file - default file extension .prs. Sequence Binary File - default file extension .sbi.
Input
Program Sequence Input
Output
Sequence Text File
OCSE
Sequence Binary File
Print File
Sequence Input Program (OCSE), Continued
Procedure
Start up the Sequence Input Program. If you are using:

The Menu, choose the Sequence Input Program from the Menu. The Command Line, type:
OCSE and press the Enter key (). Follow the steps in the table below. Step 1. 2. 3. Prompt
Please enter a name for the print file: Please enter the name of the Sequence Text File: Please enter a name for the Sequence Binary File:
Action Type in a name for the print file and press Enter () Type the name of the Sequence Text File and press Type in a name for the Sequence Binary File and press
What happens The program will: read the Sequence Text File, and, create a Sequence Binary File and a print file.
Process
The Sequence Input Program reads and checks the Sequence Text File. It reports any errors or inconsistencies:
on the screen, and, in the print file.
If errors are reported, they should be corrected, and the Sequence Input Program should be re-run. If no errors are found, the Sequence Input Program creates the Sequence Binary File. Note: if the Sequence Binary File is re-created after an Economics Binary File has been created, the Economics Binary File must also be re-created, even if the Economics Text File is unchanged. Opti-Cut checks that this rule is adhered to.
Sequence Input Program (OCSE), Continued
Report
The Sequence Input Program produces a summary report in the print file that shows, for each increment, the:
tonnage by rock-type minimum, average and maximum grade of each element present, and, number of point grade groups.
This information can be useful in determining whether to compact the Sequence Binary File with the Compaction Program (see page 60 for more information).
Using the Menu or the Command Line For information about how to use the: Menu, see pages 34 - 36. Command Line, see page 37. Naming files For guidelines on the naming of files, see page 48. Default filenames and extensions For more information about default filenames and extensions, see pages 42 - 47. Accepting/editing/overwriting defaults For more information about: Accepting default answers, see page 39. Editing default answers, see page 40. Overwriting files, see page 41. File types For more information about: Sequence Text Files, see pages 42 and 83. Sequence Binary Files, see page 43. Print files, see page 46.
Tutorials and exercises
For practice in using the Sequence Input Program, see:

Tutorial 1 - A Simple Run Through of the Main Programs, starting on page
189.
Tutorial 2 - Four-D and Four-X Interfaces and Sequence Compaction,
starting on page 222.
List Details Program (OCLD)
Purpose
The List Details Program:

checks the validity of the Sequence Binary File,
and then,
prints a report of the information in the Sequence Binary File to another file,
enabling the user to double-check the information.

Files
Files used
Sequence Binary File - default file extension .sbi.
Files created
Print file - default file extension .prl.
Input
Program List Details
Output
OCLD
Print File
List Details Program (OCLD), Continued
Procedure
Start up the List Details Program. If you are using:

The Menu, choose the List Details Program from the Menu. The Command Line, type:
OCLD and press the Enter key (). Follow the steps in the table below. Step 1. 2. Prompt
Please enter a name for the print file: Please enter the name of the Sequence Binary File:
Action Type in a name for the print file and press Enter () Type in the name of the Sequence Binary File and press
What happens The program will: check the validity of the Sequence Binary File, and, print a report of the information in the Sequence Binary File to the print file.
Process
After checking the validity of the Sequence Binary File, the List Details Program prints details of the sequence, increments and groups.
Report
The List Details report in the print file contains more detailed information than is provided in the Sequence Input print file. The print file created by the List Details Program is not required in the running of optimizations but it has been included to allow the user to check all the details in the Sequence Binary File.
List Details Program (OCLD), Continued
Using the Menu or the Command Line For information about how to use the: Menu, see pages 34 - 36. Command Line, see page 37. Naming files For guidelines on the naming of files, see page 48. Default filenames and extensions For more information about default filenames and extensions, see pages 42 - 47. Accepting/editing/overwriting defaults For more information about: Accepting default answers, see page 39. Editing default answers, see page 40. Overwriting files, see page 41. File types For more information about: Sequence Binary Files, see page 43. Print files, see page 46.
Compaction Program (OCCO)
Purpose
The Compaction Program:

Compacts the information contained in Sequence Binary Files and
Sequence Text Files. This reduces: - size of files, and, - time taken for an optimization. The Compaction Program can:
combine increments to make larger increments, and, combine groups with point grades into a smaller number of groups with
grade distributions. This can greatly reduce the size of the file, and thus the optimization time, with very little loss of accuracy.
Deciding whether to use the Compaction Program
As Opti-Cut can, if you wish, produce new cut-offs for the start of every increment and period, it may be inconvenient to have increments which would take a month or less to mine. This is because, for operational reasons, you do not want to change cut-offs too frequently. Also, throughputs can not be balanced across increments, as is explained on page 50. The Sequence Input Program print file provides details of the tonnage of each increment, and you can decide whether to combine them. The Sequence Input Program print file also gives the number of groups which have point grades, and you can use this information to decide whether to combine them into grade distributions. As a rule of thumb, if you have more than, say, 2,000 point grade groups, you should combine them. Compaction is especially recommended when using files created by Four-D and Four-X. This is because Four-D and Four-X produce Opti-Cut files with increments which may be inconveniently small. These files also contain many groups with point grades. This is because each Four-D or Four-X parcel becomes an Opti-Cut group.
Compaction Program (OCCO), Continued
Files
Files used
Sequence Text File - default file extension .stx,
- or Sequence Binary File - default file extension .sbi.
Files created
Print file - default file extension .prc. Compacted Sequence Binary File - default file extension .sbi.
Input
Program Compaction
Output
Compacted Sequence Binary File
Sequence Text File
OCCO
OR
Print File
Using a Sequence Text File or a Sequence Binary File
The question of whether to compact a Sequence Text File or Sequence Binary File is particularly relevant when it comes to compacting point grades. This is because Sequence Binary Files contain summary point grade information that Sequence Text Files do not. This means that if you are unsure about the grade ranges you want, you should first create a Sequence Binary File so that the Sequence program can provide the grade ranges for you. On the other hand, if you know what point grades you want to compact into grade ranges, you can use a Sequence Text File, without the intermediate step.
Procedure
Start up the Compaction Program. If you are using:

The Menu, choose the Compaction Program from the Menu. The Command Line, type:
OCCO and press the Enter key (). Follow the 6 steps in the table below. Step 1. 2. Prompt
Please enter a name for the print file: Sequence information may be input in one of two ways: 1. Sequence Text File 2. Sequence Binary File Your choice [2]:
Action Type in a name for the print file and press the Enter key () If you want to: compact a Sequence Text File, type in: 1 and press
compact a Sequence Binary File, press:
to accept the default [2]. 3.

Please enter the name of the Sequence Text File:
- or Please enter the name of the Sequence Binary File:
Type the name of the: Sequence Text File, - or Sequence Binary File and press Type in a name for the new Sequence Binary File and press
4.
Please enter a name for the New Sequence Binary File:
Step 5.
Prompt The program tells you that it can compact:

increments, and/or grade information.
Action If you:
Want to compact the increment
information, press: to accept the default [Y]

Prompt
Please enter the desired increment tonnage:
It will then ask:

Do you wish to compact the increment information? (Y/N) [Y]?
Action Type in the desired increment tonnage.
Do not want to compact the increment
information, type: N 6.
Do you wish to compact the grade information (Y/N) [Y]?
If you:
Want to compact the grade
information, press: to accept the default [Y]

Prompt
Please enter the grade discrimination for each element
Action Type in the grade discrimination for each element.
Do not want to compact the grade
information, type: N What happens The program will: validate the Sequence file, and then, create a compacted Sequence Binary File and a print file. Note: when determining grade discrimination, we suggest, as a general rule, that you take the smallest cut-off difference which is of interest to you, and multiply that figure by 10. Example: if you require cut-offs to two decimal places, so that the smallest cut-off difference which is of interest to you is 0.01, use 0.1 (0.01 x10).
Process: combining increments
If you are combining small increments into larger ones, the Compaction Program does this first. It places each new increment boundary at the nearest existing increment boundary to the desired tonnage boundary. This is illustrated in the following diagram.
Increment tonnage boundaries Old Desired New
Note: the Compaction Program does not split increments to get closer to the desired targets.
Process: combining point grades
When combining point grades into grade ranges, the Compaction Program accumulates the tonnages and element quantities of the point grades into a series of slots of the required grade width. Those slots which contain any material are converted into groups with the required grade range and average grade. This accumulation is done separately for each type of rock within each new increment. Groups which already have a grade range are unaltered. Combining point grades into grade ranges cannot introduce an error in the optimized cut-offs of more than half the width of each grade range. In practice, the error will usually be a very small portion of that.
Output and report
Finally the new, compacted Sequence Binary File is created. The Compaction Program also produces a report which is located in the print file.
Using the Menu or the Command Line For information about how to use the: Menu, see pages 34 - 36. Command Line, see page 37. Naming files For guidelines on the naming of files, see page 48. Default filenames and extensions For more information about default filenames and extensions, see pages 42 - 47. Accepting/editing/overwriting defaults For more information about: Accepting default answers, see page 39. Editing default answers, see page 40. Overwriting files, see page 41. File types For more information about: Sequence Text Files, see pages 42 and 83. Sequence Binary Files, see page 43. Print files, see page 46.
For practice in using the Compaction Program, see:


Exercise 2 - Varying the Compaction, starting on page 234.
Economics Input Program (OCEC)
Purpose
The Economics Input Program:

reads a Sequence Binary File and the Economics Text File containing
information about an economic scenario, and then,

creates an Economics Binary File carrying the economic information in a
form more suitable for optimization.

Files
Files used
Sequence Binary File - default file extension .sbi. Economics Text File - default file extension .etx.
Files created
Print file - default file extension .pre. Economics Binary File - default file extension .ebi.
Input
Program Economics Input
Output
Economics Text File
OCEC
Economics Binary File
Print File
Economics Input Program (OCEC), Continued
Procedure
Start up the Economics Input Program. If you are using:

The Menu, choose the Economics Input Program from the Menu. The Command Line, type:
OCEC and press the Enter key (). Follow the steps in the table below. Step 1. 2. 3. 4. Prompt
Please enter a name for the print file: Please enter the name of the Sequence Binary File: Please enter the name of the Economics Text File: Please enter a name for the Economics Binary File:
Action Type in a name for the print file and press Enter () Type the name of the Sequence Binary File and press Type the name of the Economics Text File and press Type in a name for the Economics Binary File and press
What happens The program will: read the: - Sequence Binary File - and the - Economics Text File, and then, create an Economics Binary File and a print file.
Process
The Economics Input Program checks the validity of the Sequence Binary File and then reads and checks the Economics Text File. It reports, on the screen and in the print file, any errors or inconsistencies. If errors are reported, they should be corrected and Economics Input Program should be re-run. If no errors are found, the Economics Input Program creates an Economics Binary File.
Economics Input Program (OCEC), Continued
Report
The print file contains a listing of the raw input data and a schedule of the economic data by period. Any changes from period to period are highlighted with the symbol !. Using the Menu or the Command Line For information about how to use the: Menu, see pages 34 - 36. Command Line, see page 37. Naming files For guidelines on the naming of files, see page 48. Default filenames and extensions For more information about default filenames and extensions, see pages 42 - 47. Accepting/editing/overwriting defaults For more information about: Accepting default answers, see page 39. Editing default answers, see page 40. Overwriting files, see page 41. File types For more information about: Sequence Binary Files, see page 43. Print files, see page 46. Economics Text Files, see pages 43, 51 and 94. Economics Binary Files, see page 44.
For practice in using the Economics Input Program, see:

189.
Optimization Program (OCOP)
Purpose
The Optimization Program:

performs the optimization,
and then,
produces a Result Binary File.
Files
Files used
Economics Binary File - default file extension .ebi.
Note: the Optimization Program does need to not ask for the name of the Sequence Binary File. This is because the name of the relevant Sequence Binary File is stored in the Economics Binary File. When you enter the name of the Economics Binary File, the Optimization Program checks its validity and the validity of the associated Sequence Binary File. Files created
Print file - default file extension .pro. Result Binary File - default file extension .rbi.
Input
Program Optimization
Output
OCOP
Result Binary File
Print File Print File
Note: the corresponding Sequence Binary File must be in your working directory. 69 Part 2: Programs in the Opti-Cut Package 28 April, 1998
Optimization Program (OCOP), Continued
Procedure
Start up the Optimization Program. If you are using:

The Menu, choose the Optimization Program from the Menu. The Command Line, type:
OCOP and press the Enter key (). Follow the steps in the table below. Step 1. 2. 3. 4. Prompt
Please enter a name for the print file: Please enter the name of the Economics Binary File: Please enter a name for the Result Binary File: Do you wish to optimize by period (Y/N) [Y]?
Action Type in a name for the print file and press Enter () Type the name of the Economics Binary File and press Type in a name for the Result Binary File and press If you: Want to optimize by period, then press: To accept the default [Y]. Do not want to optimize by period (but want to optimize by interval) then type: N
What happens The program will: Check the validity of the: - Economics Binary File, and, - Sequence Binary File. Then:
If you have chosen to optimize by period:
- Find the marginal cut-off(s) for each period. These maximize the cash flow. - Find the optimized cut-offs for each period. These maximize the NPV.
If you have chosen not to optimize by period:
- Find the marginal cut-off(s) for each interval. These maximize the cash flow. - Find the optimized cut-offs for each interval. These maximize the NPV. It will then create a Result Binary File and a print file. Note: to exit from the Optimization Program during a run, press the Escape (ESC) key.
Optimizing by period or interval?
Opti-Cut lets you choose to optimize by:

period
- or interval.
The relationship between period, increment and interval is discussed below. Period A period is a time interval to which particular economics and throughput limits apply. Periods are usually years or quarters. Period lengths are determined by the Period Length Line (PL) in the Economics Text File, see page 99, for more information. If you choose not to optimize by period, Opti-Cut will assume you want to optimize by interval. The term, interval, is explained below.
Increment Increments are defined by the Sequence file. Usually, each increment:
contains different quantities of material, and, takes a different amount of time to mine and process.
Interval We use the term interval to describe time intervals which end wherever a period or an increment ends. Example
Periods Increments Intervals Time

In the above example, if you were to optimize by period, cut-offs would be constant during each period. Thus, the same cut-offs would be applied to increment 1 and to the first part of increment 2, and so forth. If you do not optimize by period, a new set of cut-offs would be generated for each interval. Opti-Cut can work with cut-offs which are constant within each period or within each interval, and can optimize the cut-offs accordingly. The Print Results Program can report by period or by interval in either case. Note: however the optimization is done, throughput limits are applied to each interval separately. It is therefore possible to have two intervals within a period which are constrained by different throughput limits (e.g. processing and mining) with the result that, for the period, neither limit is reached.
Process
Stages The optimization has two stages: 1. The program calculates the marginal cut-offs. This maximizes the cash flow as opposed to the NPV. - Then 2. It optimizes cut-offs to maximize NPV. This provides a comparison between the NPV from the maximized cut-offs and the cash flow from the marginal cut-offs. Progress While the program is performing the optimization, it displays a progress bar which:
indicates that the program is still active, and, gives an indication of the length of time it has taken for the current iteration.
The progress bar looks like the following.

Progress:..!..... .............................................................
The position of the ! counts the number of times the cursor has passed along the line of dots.
Process: NPV discount modes
The Optimization Program calculates the NPVs for a number of discount modes. These modes are described below. Mode Mode=1 Description NPV is determined on the assumption that: Period-based capital injections occur at the start of the period. Increment-based capital injections occur at the start of the increment. Other cash flows occur continuously throughout the interval, as though each days cash flow was discounted with the fraction for that day. NPV is determined on the assumption that: All cash flows occur at the start of the period. NPV is determined on the assumption that: All cash flows occur at the end of the period. Note: Mode=3 is the default mode for reporting. NPV is determined on the assumption that: All capital injections occur at the start of the period. Other cash flows occur at the end of the period. NPV is determined on the assumption that: Period-based capital injections occur at the start of the period. Increment-based capital injections occur at the start of the increment. Other cash flows occur at the end of the interval.
Mode=2 Mode=3
Mode=4
Mode=5
The Optimization Program aims to maximize the NPV calculated using Mode=1. This means that the NPV calculated with the other modes may not be quite optimal. However, the difference is usually insignificant. The run terminates when the NPV calculated by Mode=1 cannot be increased further. For more information about how the optimization is achieved, see page 263.
Report
The Optimization Program produces a report in the print file. This report shows:
The marginal cut-offs. The iterations of the optimization. The NPVs for the different discount modes.
Using the Menu or the Command Line For information about how to use the: Menu, see pages 34 - 36. Command Line, see page 37. Naming files For guidelines on the naming of files, see page 48. Default filenames and extensions For more information about default filenames and extensions, see pages 42 - 47. Accepting/editing/overwriting defaults For more information about: Accepting default answers, see page 39. Editing default answers, see page 40. Overwriting files, see page 41. File types For more information about: Sequence Binary Files, see page 43. Print files, see page 46. Economics Binary Files, see page 44. Optimization techniques For more information about: How the optimization is achieved, see page 263.
For practice in using the Optimization Program, see:

189.
Print Results Program (OCPR)
Purpose of the Print Results Program
The Print Results Program:

reads the Result Binary File,
and then,
prints the results to a file that can be read by the user
- and creates a Spreadsheet Output File, if requested.
Files
Files used
Result Binary File - default file extension .rbi.
Note: although the Print Results Program does not ask for them by name, it uses the Sequence Binary File and the Economics Binary File, so they must still be present in the working directory.
Spreadsheet Definition File - default file extension .ssd - if spreadsheet
output is required. Files created

Print file - default file extension .prp. Spreadsheet Output File - default file extension .sso - if spreadsheet output
is requested.
Input
Result Binary File
Program Print Results OCPR
Output
Print File
Print File
et Sprea dshe e Definition Fil
Spreadsheet Output File
Print Results Program (OCPR), Continued
Procedure
Start up the Print Results Program. If you are using:

The Menu, choose the Print Results Program from the Menu. The Command Line, type:
OCPR and press the Enter key (). Follow the 6 steps in the table below. Step 1. 2. 3. Prompt
Please enter a name for the print file: Please enter the name of the Result Binary File:
Action Type in a name for the print file and press Enter () Type the name of the Result Binary File and press If you:
Want to produce an Opti-Cut
The program will tell you:

A report can be produced for marginal cut-offs or Opti-Cut optimized cut-offs
report, press: to accept the default [Y] to report optimized cut-offs

Do not want to produce an
It will then ask:

Do you want to produce an Opti-Cut report (Y/N) [Y]?
Opti-Cut report, type: N to get the marginal cut-off report 4.

The program will tell you:
An entry can be produced for each interval or for each period
If you:
Want to see interval entries,
It will then ask:

Do you want to see interval entries (Y/N) [Y]?
press: to accept the default [Y]

Do not want to see interval
entries, type: N
Step 5.
Prompt
Do you want to output data for spreadsheet use (Y/N) [Y]?
Action If you:
Want to output data for
spreadsheet use, press: to accept the default [Y]

Prompt
Please enter the name of the Spreadsheet Definition File:
Action Type the name of the Spreadsheet Definition File and press Enter. Type in a name for the Spreadsheet Output File and press Enter.
Please enter a name for the Spreadsheet Output File:
Do not want to output data
for spreadsheet use, type: N

Step 6.
Prompt
The program will list a series of items and the default number of decimal places for each of those items. It then asks:
Do you want to modify any of these values (Y/N) [N]?
Action If you:
Want to modify any of the
decimal places, press: to accept the default [Y]
REPORT DISPLAYS - NUMBER OF DECIMAL PLACES
Prompt The program will display a numbered list of these items.
Action - Choose the number of the item you want and press . - Type in the number of decimal places (max. 8) and press - Continue this process until you have completed all necessary changes, then type: 99 to exit.
Small rock quantities Large rock quantities Small metal quantities Large metal quantities Small dollar values Large dollar values Grade for - <element>
2 0 2 0 2 0 3
Do you want to modify any of these values (Y/N) [N]
Do not want modify any of
the decimal places, type: N What happens The program will: read the Result Binary File, and then, print the results to a print file that can be read by the user, - and if you have requested spreadsheet output, it will create a Spreadsheet
Output File.
Note: when changing reporting decimal places or scaling factors, the computer will display the number of decimal places allowable. Scaling factors are input as a negative value from one to six. This means a scaling by a factor of from 10 to 1,000,000. If scaling factors are used, they are shown on the output report. Note also: if a number is too big to be displayed in the space available, but could be displayed if the number of decimal places was reduced, then the number of decimal places is reduced and an asterisk (*) is added to the end of the number to indicate that this has happened.
Process
Using the cut-offs from the Result Binary File, the program simulates the life of the mine, and prints a summary of the operation:
for each interval or period, and, in total.
The Print Results Program gives details of the economic values, tonnages, production and discounted cash flows. At the same time, it produces any spreadsheet data that you have requested. The run time of this program is very short, so that it can easily be re-run with different Spreadsheet Definition Files or alternate reporting selections. Re-optimization is not required.
Report
A report, containing details of the Print Results Program run, is located in the print file.
Using the Menu or the Command Line For information about how to use the: Menu, see pages 34 - 36. Command Line, see page 37. Naming files For guidelines on the naming of files, see page 48. Default filenames and extensions For more information about default filenames and extensions, see pages 42 - 47. Accepting/editing/overwriting defaults For more information about: Accepting default answers, see page 39. Editing default answers, see page 40. Overwriting files, see page 41. File types For more information about: Print files, see page 46. Result Binary Files, see page 44. Spreadsheet Definition Files, see pages 44 and 117. Spreadsheet Output Files, see pages 45 and 132.
For practice in using the Print Results program, see:

189.

Tutorial 3 - Using a Stockpile, starting on page 237.
Part 3: Detailed File Formats Overview
Introduction
This section details the following text files used by Opti-Cut:

Sequence Text Files. Economics Text Files. Spreadsheet Definition Files. Spreadsheet Output Files.
In this part
This part is divided up into the following chapters. Chapter Chapter 1: Sequence Text File Chapter 2: Economics Text File Chapter 3: Spreadsheet Files See Page 83 94 116
Text file limitations
There are limits to the numbers of various types of items that can be included in these text files. See page 268 for details of these limits.
82 Part 4: Techniques 28 April, 1998
Chapter 1: Sequence Text File Overview
In this section
This chapter contains the following topics. Topic Background Information The Way the Sequence Text File Describes the Physical Resource Sequence Text File Layout Lines in Detail Sequence Text File Guidelines and Examples See Page 84 85 87 89 92
Background Information
Description
Sequence Text Files (default file extension .stx) are text files that describe the physical resource and the proposed mining sequence. In other words, they describe the material to be mined, in the sequence in which you plan to mine it.
How the Sequence Text File is created
The Sequence Text File can be created:

By a GMP, Four-D or Four-X.
These packages will provide you with a fully detailed sequence, which could contain over 500,000 lines of text.
Using a text editor or a word processor, in pure text mode.
This will produce a rough concept which might contain as little as 50 lines of text. This method is particularly useful for early feasibility work.
The programs that use the Sequence Text File
The Sequence Text File is used by:

The Sequence Input Program to create a Sequence Binary File.
Each Sequence Text File must be converted into a Sequence Binary File, before it can be used for an optimization.
The Compaction Program.
The Compaction Program can compact the increments and/or point grades in a Sequence Text File. See page 60 for more information. This reduces: - the size of the file, and, - the time taken for an optimization.
The Way the Sequence Text File Describes the Physical Resource
Lines in the Sequence Text File.
The Sequence Text File is made up of a number of lines of text, each describing certain aspects of the physical resource. In particular, they describe:
The increments in the physical resource, in the sequence in which they are to
be mined.
The groups in each increment.
Each group has: - a rock-type, - a tonnage, and, - for each element in that rock-type, a grade range and an average grade or just a single point grade. The terms, sequence, increment and group are explained below.
Definition: Sequence, increment, group
Sequence A sequence is defined as the material which is to be mined, in the order in which it is to be mined. A sequence consists of one or more increments, each in turn consisting of a number of groups. The following diagram illustrates the relationship between a sequence, and a series of increments and groups.
Increment 1
Groups
Sequence
Increment 2
Increment 3
The Way the Sequence Text File Describes the Physical Resource, Continued
Increment In this context, an increment is a particular section, phase or cut-back of the mine. It will usually contain sufficient tonnage to satisfy at least a few months' production. Increments should appear in the sequence in which they will be mined. Opti-Cut makes no attempt to modify this sequence. If only a fraction of a particular increment is mined during a particular time period, the same fraction of each part of it is assumed to be mined. This is not how mining takes place in practice, but doing the optimization in this way has no appreciable effect on the cut-offs. Group Each increment consists of a number of groups which, collectively, describe the types of rock and grade distributions in the increment. Depending on the amount of detail available about the grade distributions, there may be anything from a handful, to tens of thousands of groups in an increment. Each group has a rock-type, a tonnage and, for each element in that rock-type, a grade range and an average grade or a point grade. Each group can also carry positional cost adjustment factors for mining and processing costs.
Sequence Text File Layout
Line types
Sequence Text Files are made up of lines of text. Each line of text has a line type. Line types identify the information contained in the particular line.
Order
Line types must adhere to a certain order in the Sequence Text File. The order is as follows:
Sequence Description Line. One or more Element Lines. One or more rock-type definitions, consisting of:
- A Rock-type Line. - Zero or more Element Presence Lines.

One or more increments, consisting of:
- An Increment Description Line. - One or more groups, consisting of: A Group Header Line. Any required element grade details.
Sequence Text File Layout, Continued
Information following line types
Line types are followed by certain information. This information may take the form of:
Description(s).
Descriptions can contain up to 56 characters.

Code(s).
Codes are created by the user to identify an element or a type of rock. They can contain from 1 to 8 characters, starting with an alphabetic character. Alphabetic case is not significant.
Numeric value(s).
Numeric values may include values for grades of material, tonnage values and cost adjustment factors.
Additional information.
Additional information may include decimal places and scaling factors.

A combination of these.
Example
Line type Line type <description> <code> <numeric value>
<additional information>
Lines in Detail
Introduction
This topic describes Sequence Text File lines in detail. Note: Items in angle brackets < >, should be replaced by appropriate codes or values. The angle brackets should not be included.
Layout
Sequence Description Line (SEQ)
SEQ <Description>
Definition
<Description>
Up to 56 characters to describe the sequence. The description is optional.
Example:
SEQ
Simple single element sequence - 1 increment
Layout
Element Line (EL)
EL <Element code> <Decimals-grade> <Decimals-total>
Definition
<Element code>
A code to identify an element.

<Decimals-grade>
The number of decimal places to use when displaying grades of this element. A maximum of 4 decimal places is allowed.
<Decimals-total>
The number of decimal places to use when displaying totals of units of this element. Note that scaling is allowed here.
Example:
EL
GOLD
Layout
Rock-type Line (RO)
RO <Rock-type code>
Definition
<Rock-type code>
A code to identify a type of rock.
Example:
RO
WASTE
Lines in Detail, Continued
Layout
Element Presence Line (ELP)
(optional)
ELP <Element code>
Definition
<Element code>
This element code represents an element that occurs in the type of rock identified by the previous Rock-type Line. This must be a previously defined element code.
Example:
ELP
GOLD
Layout
Increment Description Line (IN)
IN <Description>
Definition
<Description>
Up to 56 characters to describe the increment. The description is optional.
Example:
IN
1 Top
Layout
Group Header Line (GR)
GR <Rock-type code> <Tonnage> <Mining CAF> <Processing CAF>
Definition
<Rock-type code>
A rock-type code, defined above.

<Tonnage>
The total tonnage of the group.

<Mining CAF>
The ratio between the cost of mining at the position in the mine of this group, and the cost at the Reference Position.
<Processing CAF>
The ratio between the cost of processing at the position in the mine of this group, and the cost at the Reference Position.
Example:
GR ORE
1000
Layout
Element Average (point grade) Line (ELA)
ELA <Element code> <Average grade>
Definition
<Element code>
The code of the element for the rock-type of this group.

<Average grade>
The average grade of this element.
Example:
ELA
GOLD
3.7
Layout
Element Range Line (ELR)
ELR <Element code> <Minimum grade> <Average grade> <Maximum grade>
Definition
<Element code>
The code of the element for the rock-type of this group.

<Minimum grade>
The minimum grade of this element.

<Average grade>
The average grade of this element.

<Maximum grade>
The maximum grade of this element. If more than one element is involved, it is assumed that there is no significant correlation between the grades of the different elements within the range of grades in the group.
Example:
ELR
GOLD 0.0
0.5
1.0
Sequence Text File Guidelines and Examples
Rules and guidelines
Please note the following rules when creating Sequence Text Files.
Items on a line should be separated by one or more spaces. Individual lines are limited to 128 characters, but you can end any line with
an ampersand (&) and continue it on the next line.

Codes can contain from 1 to 8 characters, starting with an alphabetic
character. Alphabetic case is not significant.

Numeric values can immediately be followed by:
- a k, indicating thousands, or, - an m, indicating millions. Example: 1200, 1.2k and 0.0012M all give the same value. The alphabetic case of these letters is unimportant.
Comment lines starting with !, and blank lines, can appear anywhere in the
file.
In-line comments can be appended to any line. The comment starts with !
and any further information on the line is ignored.

Example: structure
Here is an example of the structure of a simple Sequence Text File.
SEQ <Description> EL <Element code> RO <Rock-type code> ELP <Element code> RO <Rock-type code>
<Decimals>
IN <Description> GR <Rock-type code> <Tonnage> <Mining CAF> <Processing CAF> GR <Rock-type code> <Tonnage> <Mining CAF> <Processing CAF> ELR <Element code> <Minimum grade> <Average grade> <Maximum grade> GR <Rock-type code> <Tonnage> <Mining CAF> <Processing CAF> ELR <Element code> <Minimum grade> <Average grade> <Maximum grade> GR <Rock-type code> <Tonnage> <Mining CAF> <Processing CAF> ELA <Element code> <Average grade>
Sequence Text File Guidelines and Examples, Continued
Example: Sequence Text File
Here is an example of a simple Sequence Text File.
! Description SEQ Simple single element sequence - 1 increment ! Product code and decimal places for display EL GOLD 2 ! Rock type information RO ORE ELP GOLD RO WASTE ! waste has no elements IN GR WASTE GR ORE ELR GR ORE ELR GR ORE ELA ! start of increment 3000 1000 GOLD 0.0 2000 GOLD 1.0 100 GOLD 3.7
0.5 1.6
1.0 2.0
This example uses the example structure above. Items in angle brackets have been replaced with appropriate codes or values and comment lines (!) have been added.
Chapter 2: Economics Text File Overview
In this chapter
This chapter contains the following topics. Topic Background Information Economics Text File Layout Lines in Detail Allowed Value Types and Functions Economics Text File Guidelines and Examples See Page 95 96 98 109 114
Description
Economics Text Files (default file extension .etx) are text files that carry detailed information about an economic scenario and how the optimization is to be done.
How the Economics Text File is created
Economics Text Files are created by:

Four-D or Four-X, or, by the user, with a text editor or a word processor in pure text mode.
The programs that use the Economics Text File
The Economics Text File is used by the Economics Input Program to create an Economics Binary File. The Economics Text File must be converted into an Economics Binary File before optimization. The Economics Input Program checks the file in detail during the conversion. Note: the Economics Input Program requests the name of the relevant Sequence Binary File when creating an Economics Binary File. This is because economic data, such as prices and costs, must be interpreted in relation to the rock-types and elements described in a Sequence Binary File. The resultant Economics Binary File contains a reference to the Sequence Binary File.
Economics Text File Layout
Lines types
Economics Text Files are made up of lines of text. Each line of text has a line type. Line types identify the information contained in the line.
Order
Line types must adhere to a certain order in the Economics Text File. The order is as follows:
Economics Line. Zero or one Terminal Value Lines. Zero or more Expression Variable Lines. Period Length Line. Time Costs Line. Zero or more Capital Injection Lines. Discount Line. One or more Product Lines. One or more Cut-off Lines. Zero or more Rock-type Lines. One or more processing path definitions, consisting of:
- A Method/Rock-type Line. - One or more Method/Rock-type/Product Lines. - Zero or more Method/Rock-type/Cut-off Lines.
Zero or more Throughput Group Lines. One or more Throughput Limit Lines. Zero or more Global Mining Factor Lines. Zero or more Stockpile Lines:
- The required Stockpile Detail Lines.

Economics Text File Layout, Continued
Line types may be followed by:

Description(s).
Descriptions can contain up to 56 characters.

Code(s).
Codes are created by the user to identify an element or a type of rock. They can contain from 1 to 8 characters, starting with an alphabetic character. Alphabetic case is not significant.
Additional information.
Additional information may include decimal places and scaling factors.

A combination of these.
Values Lines may also contain values. The types of values that can occur in the Economics Text File are:

Constants. Values which vary with period. Expressions, containing constants and expression variables. Expressions, containing constants, expression variables and element grades. Expressions, containing constants, expression variables and quantities for an interval.
These values are referred to as allowed value types. See page 109, for more information.
Lines in Detail
Introduction
This topic describes Economics Text File lines in detail. Note: in the following information, allowed value types are abbreviated as follows: Allowed value type Constants. Values which vary with period. Expressions, containing constants and expression variables. Expressions, containing constants, expression variables and element grades. Expressions, containing constants, expression variables and quantities for an interval. Abbreviation C P X G Q
Note also: Items in angle brackets < >, should be replaced by appropriate codes or values. The angle brackets should not be included.
Layout
Economics Line (ECO)
ECO <Description>
Definition
<Description>
A description of the economic scenario of up to 56 characters. This description is optional.
Example:
ECO
Minimum economic conditions - base case
Layout
Terminal Value Line (TV)
(optional)
TV <Terminal Value>
Definition
<Terminal Value>
If only part of a resource is described in the sequence, the estimated value of the remainder of the resource should be given, in todays dollars. Allowed value types: C.
Example:
TV 50m
Layout
Expression Variable Line (EV)
(optional)
EV <Code for Variable> <Value for Variable>
Definition
<Code for Variable>
A code for a value that you will use in an expression later in this file. Expression variables are useful for:
ensuring that the same number is used throughout the
file, and,
introducing variations with period into expressions. <Value for Variable>
Allowed value types: C, P.
Example:
EV
YEAR 0 p2/1 p3/2 p4/3 p5/4
Layout
Period Length Line (PL)
PL <Number of Months>
Definition
<Number of Months>
The number of months must be a whole number. No decimal places. Allowed value types: C, P, X.
Example:
PL
12
Layout
Time Costs Line (TC)
TC <Time Unit> <Time Costs>
Definition
<Time Unit> A if time cost figures are per annum. M if time cost figures are per month. <Time Costs>
The costs which are time, rather than tonnage, dependent. Allowed value types: C, P, X.
Example:
TC
1.5m
Layout
Capital Injection Line (CI)
(optional)
CI <unit> <Period or Increment Number> <Amount>
Definition
<Unit> P if the capital injection is at the start of a period. I if the capital injection is at the start of an
increment.
<Period or Increment Number>
The number of the period or increment in which the capital injection is to take place. Use 0 for initial capital expenditure. If there is more than one Capital Injection Line, they must be in the order of increasing period or increment number. Note: you cannot have increment zero.
<Amount>
Allowed value types: C.
Example:
CI
16m
Layout
Inflation Line (IN)
(optional)
IN <Rate per Annum>
Definition
<Rate per Annum>
The percentage inflation rate per annum. This is used for reporting purposes only. Prices and costs must still be given in constant dollars. Allowed value types: C, P, X.
Example:
IN
Layout
Discount Line (DI)
DI <Rate per Annum>
Definition
<Rate per Annum>
The percentage discount rate per annum. Allowed value types: C, P, X.
Example:
DI
10
Layout
Product Line (PR)
PR <Element code> <Price per Unit> P
Definition
<Element code>
The code of an element which is a product.

<Price per Unit>
PR <Element code> S <Sales Cost per Unit>
The price obtainable for a unit of this product. Allowed value types: C, P, X.
<Sales Cost per Unit>
The cost of selling a unit of this product. Optional. Allowed value types: C, P, X.
Example:
PR
GOLD
445.00
Layout
Element Line (EL)
EL <Element code> <Decimals>
Definition
<Element code>
The code of an element to which cut-offs are to apply.

<Decimals>
The number of decimal places to use when displaying grades of this element. A maximum of 4 decimal places is allowed. Allowed value types: C. This also sets the discrimination - that is, the smallest difference in grade which is significant for this element. If this field is omitted, then the value in Element Line in the Sequence Text File is used.
Example:
EL
GOLD
0.01
Layout
Rock-type Line (RO)
RO <Rock-type code> M <Mining Cost> RO <Rock-type code> E <Environmental Cost> RO <Rock-type code> L
Definition
<Rock-type code>
Any rock-type code.

<Mining Cost>
The cost of mining a tonne of this type of rock if it is at the Reference Position. Allowed value types: C, P, X, G - ground.
<Environmental Cost>
The cost of rehabilitating a tonne of this type of rock if it is not processed. Optional. Allowed value types: C, P, X, G - waste grade.
L
L indicates that this type of rock is used in an underground operation, where material that will not be processed is left in the ground. Mining costs for unprocessed material will therefore be zero.
Example:
RO
ORE
1.65
Layout
Rock-type Element Cut-off Line (ROC)
ROC <Element code> Y
Definition
<Element code>
or
ROC <Element code> N
The code of an element. This line identifies whether this element for this rock-type:
is (Y) (optional), or is not (N)
included in the list of cut-offs. If this line is omitted for this rock-type/element combination, then this rock-type/element combination is included in the cut-offs.
Example:
ROC
CU
Layout
Method/ Rock-type Line (MT)
MT <Method code> <Rock-type code> Cost>
Definition
<Method code>
<Processing
A code which identifies a particular processing method.

<Rock-type code>
Any rock-type code. This specifies that the particular rock-type can be processed by this method.
<Processing Cost>
The cost of processing a tonne of this rock-type, by this method. Allowed value types: C, P, X, G - input grade. Note: if more than one processing method is available for a particular rock-type, processing methods must be specified in the order in which they are to be used.
Example:
MT MILL
ORE
16.50
Layout
Method/ Rock-type/ Product Line (MTP)
MTP <Product code> R <Recovery Percentage> MTP <Product code> N <Non-linearity Threshold>
Definition
<Product code>
The code for a product which is in the above rock-type.

<Recovery Percentage>
The percentage of this product which is recovered when the current rock-type is processed, by the current method. Allowed value types: C, P, X, G - input grade.
<Non-linearity Threshold>
The recovery non-linearity threshold for this product, when the current rock-type is processed by the current method. Optional. Allowed value types: C, P, X.
Example:
MTP GOLD
94.0
Layout
Method/ Rock-type/ Cut-off Line (MTC)
(optional)
MTC <Element code> <Minimum Cut-off> MTC <Element code> <Maximum Cut-off> I
Definition
<Element code>
A code for an element (already defined) pertaining to the current rock-type.

<Minimum Cut-off>
The lowest allowable cut-off for this element when the current rock-type is processed by the current method. Allowed value types: C, P, X.
<Maximum Cut-off>
The highest allowable cut-off for this element when the current rock-type is processed by the current method. Allowed value types: C, P, X. See pages 113, 172, 183, 184 for a discussion of user-supplied cut-offs and of the pitfalls of not allowing Opti-Cut to find its own cut-offs.
Example:
MTC Gold I 30 P3/0
Layout
Throughput Group Line (TG)
TG <Throughput Group code> <Throughput Def.>
Definition
<Throughput Group code>
A code to identify a quantity which is to be limited during each period.

<Throughput Def.>
An expression involving quantities. Provision value types: Q. Note: the throughput group, ROCK, is already defined in the program and does not need to be defined here.
Example:
TG
MILL
OREA.Q/1.05 + OREB.Q
Layout
Throughput Limit Line (TL)
TL <Code> <Time Unit> <Throughput Limit>
Definition
<Code>
A code that identifies an item which is to be limited in each period. This can be an element, rock-type, method, or Group code. There is also a pre-defined code, ROCK, which is the total of all material mined.
<Time Unit> A if throughput limits are per annum. M if throughput limits are per month. <Throughput Limit>
The maximum that this particular throughput must not exceed. Allowed value types: C, P, X.
Example:
TL
ROCK
1.4m
Layout
Global Mining Factors Line (MF)
(optional)
MF D <Mining Dilution Factor> MF R <Mining Recovery Factor> MF S <Mining Stockpile Factor> MF SL <Global Stockpile Limit> MF DPRS <decimal places Rock small> MF DPRL <decimal places Rock large> MF DPPS <decimal places Product small> MF DPPL <decimal places Product large> MF DPVS <decimal places Value small> MF DPVL <decimal places Value large>
Definition
<Mining Dilution Factor>
When ore is mined, it is common for it to be diluted by extra waste. This factor gives the increase in ore tonnage overall. It must be greater than, or equal to, 1.0. Allowed value types: C, P, X.
<Mining Recovery Factor>
The fraction of the material mined as ore which is actually input to the processing mill. This must be less than or equal to 1.0. Allowed value types: C, P, X.
<Global Stockpile Limit>
The limit of the sum of all stockpile tonnages. Allowed value types: C, P, X. Once this limit is reached, material that could have been added to a stockpile is discarded. If material is consumed from the stockpile after this limit has been reached, then more material up to the limit, can be added.
<Mining Stockpile Factor>
Use:
0 where stockpile usage is included in the
rock throughput limit. 1 where stockpile usage is independent of the rock limit. Allowed value types: C.
<Decimal places>
These control the way the data is reported in the Print Results Program. They do not scale the input data. DPVS (small value) This can have up to 4 decimal places.
DPRS, DPPS (small values)
These can have up to 8 decimal places. Note: small values do not have a scaling factor. DPRL, DPPL, DPVL (large values) These can have up to 8 decimal places. They can also have a scaling factor from -1 to -6. This scales the output data by factors of ten, from 10 to 1,000,000. Allowed value types: C.
Example:
MF S 0
Layout
Stockpile Line (SP)
(optional)
SP <Rock-type code> <Initial Size> <Re-handling Cost>
Definition
<Rock-type code>
The code for any type of rock which contains product.

<Initial Size>
The initial tonnage of this stockpile. Allowed value types: C.

<Re-handling Cost>
The cost of re-handling stockpile material when it is processed. Optional. Allowed value types: C, P, X. See page 173 for a detailed discussion of stockpiles.
Example:
SP OXID
.5
Layout
Stockpile Detail Line (SPD)
SPD <Product code> R <Recovery Percentage> SPD <Element code> <Minimum Grade> SPD <Element code> <Maximum Grade> SPD <Element code> <Initial Grade> I A
Definition
<Product code>
Any product code applicable to the rock-type of this stockpile.

<Element code>
Any element code applicable to the rock-type of this stockpile.

<Recovery Percentage>
This defines an additional recovery loss, due to degradation in the stockpile. For example, if the milling recovery is 90% and the stockpile recovery is 90%, then the resultant recovery when stockpile material is processed is 81%. A stockpile recovery percentage must be defined for every relevant product. Allowed value types: C, P, X.
<Minimum Grade>
Material for this element that has a grade below this figure will not be placed in this stockpile. Allowed value types: C, P, X.
<Maximum Grade>
Material for this element that has a grade equal to or above this figure will not be placed in this stockpile. Optional. Allowed value types: C, P, X.
<Initial Grade>
The initial grade of this stockpile. This is only relevant if the initial tonnage in the SP line is not zero. Optional. Allowed value types: C. At least one element must have a minimum grade and possibly a maximum grade, but it is not necessary to specify grades for every element in a multi-element situation. Grade ranges for stockpiles of the same rock-type must not overlap. The user should consider the practical aspects of grade control, and how the material will be marked and moved to the stockpile(s).
Example:
SPD GOLD R 100 SPD GOLD I .025
Allowed Value Types and Functions
Introduction
This section describes the allowed value types that can be used in an Economics Text File. It also describes the arithmetic signs and the various functions, that can be used when creating an Economic Text File.
Allowed value types
There are five different ways values can be input into an Economics Text File. These are referred to as allowed value types. The allowed value types are described in the table below. For more information about where the various allowed value types can be used in the Economics Text File, see Lines in Detail on page 98.
Allowed value type Constant
0.5, 12k
Description
or 2.7M.
Value which varies with the period.
Where: k is thousands. m is millions. The letter p is used to indicate period, in the Economics Text File.
4.3 p3/4.8 p5/6
In this example, the letter p is used to indicate that the value of the item is:
4.3 until period 3, when it changes to 4.8. 6 at the start of period 5.
The item remains at 6 thereafter. Expression containing: constants, and, expression variables.
1.3 + ev1*3.4
where:
1.3 and 3.4 are constants, and, ev1 is an expression variable, as defined in an
Expression Variable Line. Expression containing: constants expression variables, and, element grades. Example:
4.7 + EV1 - GOLD.G/100
In this example the .G tells the system to use the grade information from element GOLD.
Allowed Value Types and Functions, Continued
Allowed value types (continued) Allowed value type Expression containing: constants expression variables, and, quantities for an interval. Description In the Economics Text File:
<rock-type>.Q (including the predefined total
rock variable, ROCK) is used to indicate that the quantity information should be used for mining variables.
<method>.Q is used to indicate that the quantity
information should be used for processing variables.

<product>.Q is used to indicate that the quantity
information should be used for product variables. Example:

mill1.q + MILL2.Q - 0.2*EV1*WASTE.Q
In this example, which combines various throughputs, the .Q tells the system to use the quantity information in relation to the methods, mill1 and mill2 and in relation to the product waste.
Note: most values are, in practice, entered as a constant.

Arithmetic symbols
When creating an Economics Text File, the following arithmetic symbols can be used. Symbol + * / ** Name and description Plus. Used for addition. Minus. Used for subtraction. Times. Used for multiplication. Division. Used for division. Used for raising a value to a power.
Functions
In addition, you can use certain functions in expressions in an Economics Text File. In each case, any argument of a function can be:
a constant, or, an expression that may include functions to any depth.
Standard functions
Seven standard functions may be used in Economics Text Files. They are described below. Name and function
Square root (X) This gives the square root of X. Integral part of (X) This gives the largest integer that is not greater than X. Log (X) This gives the natural logarithm of X. Log 10 (X) This gives the log to the base 10 of X. Exponential (X) This gives the exponential (base e) of X. Minimum (X1,X2,X3....) This gives the minimum of a list of values. Maximum (X1,X2,X3....) This gives the maximum of a list of values.
Symbol SQ I
Layout
SQ(X)
I(X)
LOG LOG1 E MI MA
Log(X)
Log1(X)
E(X)
MI(X1,X2,X3...)
MA(X1,X2,X3...)
This is the minimum number of letters that needs to be provided. 111 Part 4: Techniques 28 April, 1998
Special functions
Two special functions are also available for use in Economics Text Files. These are described below. Name and function
Select (X, Y1, Y2, Y3, Y4,......Yn) Select takes the integral part of X and uses it to select from the Y values. That is, if X is 3.6, Select will have the value Y3. If X is less than 1, Y1 is used. If the integral part of X is greater than the number of Y values, the last Y value is used. Example: se(EV1, 1.4, 1.35, 1.32, 1.3, 1.27,...) The example above could be used to generate a value that varies irregularly with the integral value of an expression variable. Ranges(X, Y1, Z1, Y2, Z2, Y3, Z3,.....Yn) Ranges selects one of the Y values, according to the value of X in relation to the Z values. The Z values should be in ascending order (no check is made of this). The value of X is compared with each Z value in turn, until a Z value higher than the X value is found. The Y value prior to the Z value is then used. In other words, the function finds the pair of Z values between which the X value lies, and returns the Y value that is also between those Z values. If X is greater than or equal to the last Z value, then the last Y value is used. Note that the second value and the last value should be Y values, so there should be an even number of arguments. Example: R(Gold.G, 1, 3.6, 1.2) This example could be used to set a factor 20% higher, if the grade was greater than or equal to 3.6.
Symbol SE
Layout
SE(X, Y1, Y2, Y3,...Yn)
R(X, Y1, Z1, Y2, Z2, Y3, Z3,...Yn)
This is the minimum number of letters that needs to be provided. 112 Part 4: Techniques 28 April, 1998
Problems with using functions
The flexibility provided by the use of functions can sometimes lead to problems. If, for example, the Optimization Program is presented with two maxima from which to choose, it can become unstable. You should, therefore, avoid grade-dependent expressions which can cause the cash-flow from a group to increase suddenly as the relevant cut-off increases. For example, a processing cost based on R(GRADE, 20.0, 5, 10.0) would decrease suddenly if the cut-off increased to the point where the feed grade for a group was above 5.
Economics Text File Guidelines and Examples
Please note the following rules when creating or editing Economics Text Files.
Items on a line should be separated by one or more spaces. Individual lines are limited to 128 characters, but you can end any line with
an ampersand (&) and continue it on the next line.

Codes can contain from 1 to 8 characters, starting with an alphabetic
character. Alphabetic case is not significant.

Numeric values can immediately be followed by:
- a k, indicating thousands, or, - an m, indicating millions. For example: 1200, 1.2k and 0.0012M all give the same value. The alphabetic case of these letters is unimportant.
Comment lines starting with !, and blank lines, can appear anywhere in the
file.
In-line comments can be appended to any line. The comment starts with !
and any further information on the line is ignored. Example

TV 50m ! residual value at the end of five years
Example: structure
Here is an example of the structure of a simple Economics Text File.
ECO <Description> PL <Number of months> TC <Time Unit> <Time Costs> CI <unit> <Period or Increment Number> <Amount> CI <unit> <Period or Increment Number> <Amount> DI <Rate per Annum> PR <Element code> P <Price per unit> EL <Element code> <Decimals> RO <Rock-type code> <Mining Cost> RO <Rock-type code> <Environmental Cost> MT <method code> <Rock-type code> <Processing Cost> MTP <Product code> R <Recovery Percentage> TL <Code> <Time Unit> <Throughput Limit> TL <Code> <Time Unit> <Throughput Limit>
Economics Text File Guidelines and Examples, Continued
Example: Economics Text File
Here is an example of a simple Economics Text File.
! Description ECO Minimum economic conditions - Base case ! Period length in months PL 12 ! Time costs per annum TC A 1.5m ! Initial Capital and injection in period three CI 0 16m CI 3 2.5m ! Discount rate DI 10 ! Pricing PR GOLD P 445.00 ! Cut-off EL GOLD 0.01 ! Mining & processing costs RO ORE M 1.65 RO WASTE M 1.65 MT MILL ORE 16.50 MTP GOLD R 94.0 ! Throughput limits TL ROCK A 1.4m TL MILL A 250k
This example uses the example structure above. Items in angle brackets have been replaced with appropriate codes or values and comment lines (!) have been added.
Chapter 3: Spreadsheet Files Overview
In this chapter
This chapter contains the following two sections. Section Section A: Spreadsheet Definition File Section B: Spreadsheet Output File See Page 117 132
Section A: Spreadsheet Definition File Overview
In this section
This section contains the following topics. Topic Background Information Spreadsheet Definition File Layout Spreadsheet Definition File Codes Spreadsheet Definition File Guidelines and Examples The Application of Spreadsheet Codes See Page 118 119 120 126 128
Description
Spreadsheet Definition Files (default file extension .ssd) are text files which control the data that the Print Results Program outputs to Spreadsheet Output Files.
How the The Spreadsheet Definition Files are created and modified using a text editor Spreadsheet or a word processor in pure text mode. Definition File is created
The programs that use the Spreadsheet Definition File
The Spreadsheet Definition File is used by the Print Results Program, which reads:
the Result Binary File, the Sequence and Economics Binary Files, and, the Spreadsheet Definition File.
It then produces a Spreadsheet Output File.

Output
The Spreadsheet Definition File can specify the following tables of values as output in the Spreadsheet Output File:
An interval table. A period table. A grand totals table.
See Spreadsheet Output File Layout and Format on page 134, for more information.
Spreadsheet Definition File Layout
Line types
Spreadsheet Definition Files are made up of lines of text. Each line of text starts with a line type. The line types for the Spreadsheet Definition File are:
INT
- INT specifies which code values should appear in the intervals table, and the order in which they appear.
PER
- PER shows the interval data accumulated for the period and their order.
GRA
- GRA specifies which values should appear in the grand totals table and their order. Note: all INT and PER values report the status at the end of the interval or period.
Line types are followed by a series of codes. Codes may appear more than once in a line, if required. Example
<line type> <code> <code> <code>
Codes are made up of a keyword which may or may not be followed by an attribute. The following topic discusses codes in detail.
Spreadsheet Definition File Codes
Codes
Codes are made up of a keyword which may or may not be followed by an attribute. Example
<line type> <keyword><attribute> <keyword> <keyword><attribute>
This topic describes the various keywords and attributes that make up Spreadsheet Definition File codes.
Keywords
The following table lists the various keywords and shows any allowed attributes for those keywords. Refer to page 123 for a list of attributes and their meanings. Note: items in angle brackets < >, should be replaced by appropriate codes or values. The angle brackets should not be included. Where items in angle brackets are used in combination, they must be separated by a full stop (.). Example: <method>.<type>.<element> Keywords
AVMINCAF
Description and allowed attributes

Average positional mining cost adjustment factor. Allowed attributes: none. Average positional processing cost adjustment factor. Allowed attributes: none. This produces a blank column between data columns. Allowed attributes: none. Initial capital expenditure. Allowed attributes: none. Replacement capital expenditure. Allowed attributes: /C /CD. The discount percentage, per annum. Allowed attributes: none. Element based codes. Allowed attributes: /L /PR /S /SC /SD /SR /UF /UG /UI /UO /US /UT. User specified expression code. Allowed attributes: nothing or /L.
Continued on next page 120 Part 4: Techniques 28 April, 1998
AVPROCAF
BLANK
CAPEXINI
CAPEXREP
DISCOUNT
<element>
<expression>
Spreadsheet Definition File Codes, Continued
Keywords (continued)
Keywords
INCREMENT

The resource increment starting and ending number, and percentage used. Allowed attributes: /EN /EP /SN /SP. The inflation percentage, per annum. Allowed attributes: none. The internal rate of return, expressed as a percentage. This applies only to grand totals. Allowed attributes: none. Length of project. This applies only to grand totals Allowed attributes: none. A processing method. Allowed attributes: /C /CD /L /TF /TG /TI. A processing-method/element combination. Allowed attributes: /C /CD /GF /GG /GI /UF /UG /UI /UO. A processing-method/rock-type combination. Allowed attributes: /C /CD /PC /TF /TG /TI. Period, interval and grand totals A processing-method/rock-type/element combination. Allowed attributes: /C /CD /GF /GG /GI /MA /MI /RP /RT /UF /UG /UI/ UO. Period and intervals A processing-method/rock-type/element combination, in relation to the: Cut-off grade for intervals. Cut-off grade for period, where the optimization is by period. This is not available for grand totals. Allowed attributes: /CO. The mining dilution factor. Allowed attributes: none. The mining recovery factor. Allowed attributes: none.
INFLATION
INTERNAL
LIFE
<method>
<method>.<element>
<method>.<type>
<method>.<type>. <element>
MINDIL
MINREC
Keywords
PERIOD

The period number. Allowed attributes: nothing or /FR /LM . The accumulative percentage of resource used. Allowed attributes: none. The total material mined - ore and waste. Allowed attributes: /C /CD /H /HD /L /R /RD /TG /TM. The total selling cost. Allowed attributes: /C /CD. Stockpile number. Where <n> is a number. Allowed attributes: /TF /TS /TT. /TS will cause a period 0 line to be introduced, so that starting conditions can be reported.
RESUSED
ROCK
SELLCOST
SP_<n>
SP_<n>.<element>
Stockpile-number/element combination. Where <n> is a number. Allowed attributes: /GF /GS /GT /UF /US /UT. /GS and /US will cause a period 0 line to be introduced, so that starting conditions can be reported.
STOCKPILE
The total tonnage of material that is not added to a stockpile because the global stockpile limit has been reached. Allowed attributes: nothing, /L or /TR. The stripping ratio - unprocessed material/processed material. Allowed attributes: none. The terminal resource value. Allowed attributes: none. Fixed costs. Allowed attributes: /C /CD. A rock-type. Allowed attributes: /C /CD /H /HD /L /MC /R /RC /RD /TF /TG /TI /TM /TR /TT.
STRIP
TERMINAL
TIMECOST
<type>
<type>.<element>
A rock-type/element combination. Allowed attributes: /C /CD /GF /GG /GI /GM /GR /UF /UG /UI /UM /UO /UR.
Keywords
VALUE

The total cash flow. Allowed attributes: /C /CD. The tonnage mined, but not processed. This is a reserved word spreadsheet code when no attributes are used. Allowed attributes: none (but see note below). Note: waste can also be used as a rock-type code (e.g. output from Four-D or Four-X). In this situation, a valid attribute must be used. See <type> and <type>.<element> for allowed attributes.
WASTE
Attributes
Attributes consist of a slash (/) and one or two letters. The table below lists the various attributes and their meanings. Attribute
/C /CD /CO /EN /EP /FR /GF /GG /GI /GM /GR /GS
Description Cash flow. Cash flow, discounted. Cut-off/cut-over. End number of increment. End percentage of increment used. Fraction. Grade of material from the stockpile to processing. Grade of material in the ground. Grade of material from the increment to processing. Grade of material mined. Grade of material rejected. Grade of material in the stockpile, at the end of the period/interval. Grade of material to the stockpile. Stockpile handling cost. Stockpile handling cost, discounted.
/GT /H /HD
Attributes (continued)
Attribute
/L /LM /MA /MC /MI /PC /PR /R /RC /RD /RP /RT /S /SC /SD /SN /SP /SR /TF /TG /TI /TM /TR /TS
Description Throughput or global stockpile limit. Length of period, in months. Maximum cut-off. Unit mining cost. Minimum cut-off. Processing cost at the Reference Position. Price per unit. Total rehabilitation value. Rehabilitation cost. Total rehabilitation value, discounted. Processing recovery percentage. Processing recovery threshold. Total sales cost. Sales cost per unit. Total sales cost, discounted. Start number of increment. Start percentage of increment used. Stockpile recovery percentage. Tonnes from the stockpile to processing. Tonnes in the ground. Tonnes from an increment to processing. Tonnes mined. Tonnes rejected from processing or stockpiling. Tonnes in the stockpile, at the end of a particular interval or period. Tonnes input to the stockpile. Units of an element from the stockpile. Units of an element in the ground.
/TT /UF /UG
Attributes (continued)
Attribute
/UI /UM /UO /UR /US /UT
Description Units of an element from an increment to processing. Units of an element mined. Units of an element output from processing. Units of an element rejected. Units of an element in the stockpile. Units of an element to the stockpile.
Spreadsheet Definition File Guidelines and Examples
Please note the following rules and guidelines when creating or editing a Spreadsheet Definition File.
The data in Spreadsheet Definition Files is not in fixed field positions; only
its order is important.

Comment lines starting with !, and blank lines can appear anywhere in the
file. There can also be in-line comments where !text is appended to a valid line.
Codes can be in upper or lower case, or a mixture of the two. Codes can also be continued on second and subsequent lines. Where codes
are continued on the second or subsequent lines, the line type must be repeated at the beginning of the line. See page 127 for an example.
The maximum length of a line in the Spreadsheet Definition File is 80
characters.
The maximum number of codes that can appear in an interval, period or
grand total table is set when the program is compiled. See page 268 for the current limits.
The user must ensure that enough values are output to identify the source of
the values. For example, interval and period data will normally include PERIOD.
Spreadsheet Definition File Guidelines and Examples,

Continued
Example 1
Here is an example of the contents of a simple Spreadsheet Definition File.

Gra Rock/tg Mill/ti VALUE/CD MILL.GOLD/UO
In this example:
Gra indicates that the codes which follow are for grand totals. Rock/tg
- Rock refers to the total material mined - ore and waste, and, - /tg indicates tonnes in the ground.
Mill/ti
- Mill refers to the processing method used, mill, and, - /ti indicates tonnes from an increment to processing.
VALUE/CD
- VALUE refers to the cash flow, and, - /CD indicates discounted cash flow.
MILL.GOLD/UO
- MILL refers to the processing method used, mill - GOLD indicates the product/element type, gold, and, - UO indicates the units of gold output from processing. As you can see, codes can be in upper or lower case, or a mixture of the two.
Example 2
Codes can also be continued on second and subsequent lines. The following is the exact equivalent of the example above.
Gra Rock/tg Mill/ti GRA VALUE/CD MILL.GOLD/UO
The application of spreadsheet codes
The codes, listed above, give you access to almost every value you could want. If you find their sheer number confusing, you may find it helpful to refer to the diagrams in the following topic.
The Application of Spreadsheet Codes
Introduction
The diagrams, below, may make it clearer where the spreadsheet codes are applied.
Overview
The following is an overview of the main material movements which occur during mining.
To Stockpiles
STOCKPILES
See Stockpile Details diagram
From Stockpiles
INCREMENTS
See Increment Details diagram
To Processes
From Increment
PROCESSES
See Process Details diagram
Rejected material
Product Output
In this diagram: Stage Material is mined:

From an increment.
Codes that can be used See: Increment Details diagram, page 129. See: Increment Details diagram, page 129. See: Increment Details diagram, page 129, and, Process Details diagram, page 130. See: Increment Details diagram, page 129 Process Details diagram, page 130, and, Stockpile Details diagram, page 131.
- Some material is rejected. - Some material is processed.
- Some material is sent to the stockpiles.
The Application of Spreadsheet Codes, Continued
Increment details
This diagram shows all of the codes that can be used in relation to the increment stage of mining.
To Stockpiles
Grade Units
<sp_n>.<e>/GT <sp_n>.<e>/UT <e>/UT Tonnage <sp_n>/TT <t>/TT STOCKPILE/L
Increment
GENERAL Ave mining CAF Ave processing CAF Discount rate Increment details Inflation rate Mine life Mining dilution Mining limit Mining recovery Period length Period number Resource usage % Stripping ratio Terminal value AVMINCAF GRADE AVPROCAF <m>.<e>/GG DISCOUNT INCREMENT/EN/EP/SN/SP <m>.<t>.<e>/GG <t>.<e>/GG INFLATION LIFE MINDIL To ROCK/L Processes MINREC PERIOD PERIOD/LM RESUSED TONNAGE STRIP <m>/TG TERMINAL <m>.<t>/TG <t>/TG ROCK/TG
UNITS <m>.<e>/UG <m>.<t>.<e>/UG <t>.<e>/UG
Rejected Material
Grade <t>.<e>/GR Rehab rate <t>/RC Rehab cost <t>/R/RD ROCK/R/RD Tonnage <t>/TR Units <t>.<e>/UR
LEGEND
<e> <m> <sp_n> <t> element / product method stockpile number "n" rock type
Process details
This diagram shows all of the codes that can be used in relation to the processing stage of mining.
From Increments
Grade <m>.<e>/GI <m>.<t>.<e>/GI <t>.<e>/GI <m>/TI <m>.<t>/TI <t>/TI
From Stockpiles
Grade <m>.<e>/GF <m>.<t>.<e>/GF <t>.<e>/GF <sp_n>.<e>/GF <m>/TF <m>.<t>/TF <t>/TF <sp_n>/TF <e>/UF <m><e>/UF <m>.<t>.<e>/UF <t>.<e>/UF <sp_n>.<e>/UF
Tonnage
Tonnage
Units
<e>/UI <m>.<e>/UI <m>.<t>.<e>/UI <t>.<e>/UI
Units
Process
Cut-offs Process method limit Processing costs:total Processing costs:unit Production limit Product price Recovery Rock type limit Selling total cost Selling unit cost <m>.<t>.<e>/CO/MA/MI <m>/L <m>/C/CD <m>.<t>/C/CD <m>.<t>/PC <e>/L <e>/PR <m>.<t>.<e>/RP/RT <t>/L <e>/S/SD <e>/SC
Cash
Product Output
IRR Units
<m>.<e>/C/CD <m>.<t>.<e>/C/CD <t>/C/CD <t>.<e>/C/CD VALUE/C/CD INTERNAL <e>/UO <m>.<e>/UO <m>.<t>.<e>/UO <t>.<e>/UO
LEGEND
Stockpile details
This diagram shows all of the codes that can be used in relation to the stockpiling stage of mining.
Grade
<sp_n>.<e>/GT <sp_n>/TT <t>/TT STOCKPILE/L <sp_n>.<e>/UT <e>/UT
From Increments
Tonnage
Units
Stockpile
Stockpiles are given a sequential number. The first stockpile code is sp_1. A stockpile is comprised of a single ore type but may be multi-element. It has a minimum cut-off for at least one element and may have an upper cut-off. Stockpile recovery can be varied over time (<e>/SR). Current stockpile values Grade Tonnage Units <sp_n>.<e>/GS <sp_n>/TS <e>/US <sp_n>.<e>/US
Grade
To Processes
Tonnage
<m>.<e>/GF <m>.<t>.<e>/GF <t>.<e>/GF <sp_n>.<e>/GF <m>/TF <m>.<t>/TF <t>/TF <sp_n>/TF <e>/UF <m>.<e>/UF <m>.<t>.<e>/UF <t>.<e>/UF <sp_n>.<e>/UF
Units
LEGEND
Section B: Spreadsheet Output File Overview
In this section
This section contains the following topics Topic Background Information Spreadsheet Output File Layout and Format See Page 133 134
Description
Spreadsheet Output Files (default file extension .sso) are text files that contain output from the Print Results Program in a form suitable for importation into most spreadsheet programs.
How the Spreadsheet Output File is created
The Spreadsheet Output File is created by the Print Results Program, using:
a Result Binary File, and, a Spreadsheet Definition File.
Using the Spreadsheet Output File
The Spreadsheet Output File is used by the customer and input into a spreadsheet package. This allows for further analysis and plotting of the optimization results.
Spreadsheet Output File Layout and Format
Layout
The layout of the Spreadsheet Output File is quite simple. It can contain:
an interval table a period table a grand totals table, or, any combination of the above.
The order of presentation is interval, period and grand totals. Each table consists of columns of numbers, with each column headed by the corresponding code. By default, the columns are separated by spaces.
Format
The format of a Spreadsheet Output File can be read into most spreadsheet packages. However, in some cases it may be necessary to parse the text after input, in order to get the numbers into their corresponding columns. If this is inconvenient, two other formats are available to you. These are:
StoreSpread=Comma.
The columns are separated by commas.

StoreSpread=Quote.
The columns are separated by commas and the headings are enclosed in double quotes. These options are obtained by changing the StoreSpread field in your oc.ini file from StoreSpread=Fixed to one of the two alternatives, above. A detailed procedure is set out below.
Spreadsheet Output File Layout and Format, Continued
Changing the format of the Spreadsheet Output File
The following table describes the procedure for changing the format of the Spreadsheet Output File.
Step 1. 2.
Action Open and view the oc.ini file using a text editor or word processor. Under the [System] section header, find the line that reads: StoreSpread=Fixed
If you want to change the format to StoreSpread=Comma, then
edit the text to read: StoreSpread=Comma

If you want to change the format to StoreSpread=Quote, then
edit the text to read: StoreSpread=Quote 3. Save the oc.ini file and exit from the text editor or word processor.
In addition, the Spreadsheet Output File default extension can be changed to .csv in oc.ini. The extension .csv is the extension expected by many packages for Comma Separated Variable files, like these. To do this, under the [Extensions] heading, change the SSOutput line: from: SSOutput=.sso to: SSOutput=.csv Note: for users of EXCELTM, we suggest that you change StoreSpread=Fixed to StoreSpread=Quote. We also suggest that you modify the Spreadsheet Output default file extension to .csv, in oc.ini. You will then find that it is very easy to read spreadsheet data.
Spreadsheet Output File Layout and Format, Continued
Example
The following diagram is an example of a Spreadsheet Output File.

Sequence : Produced by FDAN from best case scheduling of pit 27 Filename : octut2.sbi Economics: OCTUT2 - created from Four-D Tutorial 1 Filename : octut2.ebi Intervals: MILL OXID GOLD /CO 0 0.052 0.049 0.047 0.047 0.044 0.042 0.042 0.000 0.000 0.000 0.000 0.000
Period 0 1 2 3 3 4 5 5 6 7 7 8 8 Grand totals:
strip 0 1.65 1.57 1.51 1.42 1.36 1.32 1.51 1.47 1.43 3.02 3.02 0
Rock /tg 0 1989903 1929552 43025 1774025 1771249 440806 1405785 1854854 755280 1755699 2313021 30240
Mill /ti 0 750000 750000 17118 732882 750000 189946 560054 750000 311075 436374 575540 30240
VALUE /CD -18900000 12150343 10826542 220994 6991123 6398566 1454767 4150637 4994737 1853257 2161138 2588409 240549
MILL GOLD /UO 0 62794 61840 1394 48315 48877 12272 35934 47749 19599 27540 36296 2204
Blank 0
strip 1.74
Blank 0
Rock /tg 16063440
Mill /ti 5853229
VALUE /CD 35131060
MILL GOLD /UO 404815
Part 4: Techniques Overview
Introduction
This part details certain information and techniques that can be used to refine the optimization and to speed up the process.
In this part
This part is divided into the following three chapters. Chapter Chapter 1: Auxiliary Files and Computer Techniques Chapter 2: Economic Factors Chapter 3: Mining Factors See Page 137 152 171
Chapter 1: Auxiliary Files and Computer Techniques Overview
Introduction
Project evaluation can take a lot of time and computer resources when you consider the optimization, the economic sensitivity analysis and the iterative nature of the problem. You may wish to simplify data to improve the processing speed. Indeed, often with simplified data little accuracy is lost, but substantial gains can be made in reducing processing times. If it is easy to do another run to test a theory, then you are more likely to do it, and you will have greater confidence in the overall accuracy and stability of the final result. Alternatively, you may wish to prepare sets of runs and leave them to run unattended or overnight. Opti-Cut provides several features that will help the user in these situations. With these features, the user can create large runs if required. This chapter deals with certain computer techniques that can be used to:
speed up the optimization process enable you to create large runs, and, run the programs unattended.
It also discusses the various auxiliary files that come with, or are created by, the Opti-Cut package.
In this chapter
This chapter contains the following topics. Topic Auxiliary Files Log Files Running the Programs in Batch Files Simplifying the Text Files to Improve the Speed of Processing See Page 139 141 146 151
Auxiliary Files
Introduction
This topic discusses the various auxiliary files that:

come with the Opti-Cut package, or, are created by the programs.
Initialization File
The initialization file (the ini file) is a text file. The Opti-Cut initialization file is called oc.ini. The initialization file is updated every time you run one of the Opti-Cut programs. It keeps a record of the filenames you are using, and enables programs to offer a likely name as a default when a program asks you for a filename. A copy of oc.ini must be present in your working directory whenever you run any of the Opti-Cut programs. You can have different copies of oc.ini for different disk directories. Layout The ini file is divided up into the following sections:
[Extensions]
This section identifies the default extensions for all file types used in Opti-Cut. For more information about default file extensions, see pages 42 - 47.
[Filenames]
This section records the last file name used in each program. This is used to predict default filenames to be used in a re-run, or in the next step of the Opti-Cut process. For more information about filenames, see page 47.
[System]
This section is used to define the following system-wide variables: - Version - Version is used to ensure that the initialization file has been updated to include all of the items required by the current version of the programs. - Lines on page - this sets the number of lines to print per page. - Discount mode - this sets the discount mode. Discount mode is used to report the NPV of the optimization. See page 74 for more information about discount modes. - StoreSpread - StoreSpread sets the format of the output spreadsheet data. See page 134 for more information. - Currency - this sets the symbol to use for currency. The default is $.
Auxiliary Files, Continued
Language File
This file allows the programs to translate their screen prompts, screen messages and printer output into a language other than English. The language file is always called oc.lng, no matter what language is involved. If you are supplied with a language file and you wish to use the translation facilities, make sure that there is a copy of it in your working directory. If a copy of oc.lng is not present in your working directory, all output text will be in English.
Oc??.ok file
When a program starts a run, it first deletes any copy of the file oc??.ok (where oc?? is the Command Line name). If the run completes successfully, it writes a new copy of oc??.ok. For example, if an ocse.ok file were in your Opti-Cut directory, it would indicate that the Sequence Input Program has been run successfully. The presence or absence of this file is particularly useful when running batch files. See page 148 for more information.
Log Files
Introduction: what are log files?
Log files are files that contain abbreviated prompts and answers. They can be used to re-run a program using the previously logged set of prompts and answers. Although it is not necessary to do so, you will probably find it convenient to use log files. As everything you type has been pre-recorded, log files can significantly reduce the time and effort taken to re-run programs.
Example of a log file
Here is an example of a log file for running the Optimization Program.
PrintFile EconomicsBinaryFile ResultBinaryFile
#octut1 octut1 #octut1
In this example:
The left hand column shows shortened versions of the screen prompts. The right hand column shows the responses. The # symbol tells the program to overwrite the:
- print file, and, - Result Binary File.

Default log file extensions
Opti-Cut has a different log file extension for each of the main programs. Here is a list of default log file extensions. File type Default file extension
Log files for the:

Sequence Input Program List Details Program Compaction Program Economics program Optimization Program Print Results Program
.los .lol .loc .loe .loo .lop

Log Files, Continued
Using log files
Log files are controlled by special logging commands which you enter in response to any prompt. See below for more information.
Logging commands
A full description of logging commands follows. !LOG Command How to use Type:
!LOG <filename> and press the Enter key ( )
in response to any prompt. Description The !LOG command starts the writing of answers to the log file, and repeats the prompt. If you do not provide a filename, the last one used as a log file for the program you are running will be used. With each answer, the program writes a shortened version of the prompt. Abbreviation !L Restriction You cannot use the !LOG command if you are already logging.
!END Command How to use Type:

!END
in response to any prompt. Description The !END command stops the logging of answers and repeats the prompt. Abbreviation !E Restriction You cannot use the !END command unless you are logging.
!USE Command How to use Type:

!USE <filename>
in response to any prompt. Description The !USE command causes the program to start reading answers from the specified log file, as though you had typed them in. The program then replays the prompts and answers on the screen. If you do not provide a filename, the last one used as a log file for the program you are running will be used.
Reading will stop when: The program run finishes. The end of the log file is reached. In this case the program reverts to waiting for answers from the keyboard. The program prompts and the log file get out of step. This usually occurs where a mistake has been made when the file has been edited. The program issues a warning, then it reverts to waiting for answers from the keyboard. Abbreviation !U Restriction You cannot use the !USE command if you are already logging.
!DEMO Command How to use Type:

!DEMO <filename>
in response to any prompt. Description The !DEMO command has exactly the same effect as the !USE command, except that the program pauses after displaying each answer. It is used for demonstration purposes. If you do not provide a filename, the last one used as a log file for the program you are running will be used. Abbreviation !D Restriction You cannot use the !DEMO command if you are already logging.
!ASK Command How to use Type:

!ASK
in response to any prompt. Description The !ASK command puts !ASK in the log file in place of your answer and asks the question again. When the log file is replayed, the program asks for an answer to the particular prompt interactively before continuing to read the log file. This is useful if you want to do a series of similar runs while varying just one or two answers. Abbreviation !A Restriction The !ASK command can only be used at the keyboard when you are logging. It is the only logging command that is valid within a log file. It can be inserted into a log file with a text editor or word processor in pure text mode in place of an answer.
Note: all logging commands may be entered in upper or lower case.

Example: using the !LOG command
If you type !LOG <filename> in response to any prompt, the program will start recording (or logging) your answers in <filename>. It will continue to prompt you for input, issuing the same prompt again. This will continue until the end of the run, or until you type !END in response to a prompt. If you do not include an extension in <filename> Opti-Cut will add the default extension for a log file for the program you are running. For an example of a log file, see page 141.
Editing log files
Log files can be edited with any text editor or a word processor in pure text mode. It is quite common to edit an existing log file to produce a new one, but care must be taken not to change anything in the left hand column, and to ensure that responses all start in the same column (column 26). Note: when creating a log file with the !LOG command, any log file of the same name will be overwritten.
For practice using log files, see:

Running the Programs in Batch Files
Introduction
Opti-Cut programs can be automated in the following ways:

Using the Batch Processing Program, from the Command Line or from the
Menu.
Using the autolog facility, from the Command Line. Running files created by you as redirected input files, from the Command
Line.
The Batch Processing Program
The Batch Processing Program (OC) controls the programs:

Sequence Input Economics Input Optimization, and, Print Results.
It automatically runs the programs in the required order. Procedure Start up the Batch Processing Program. If you are using:
The Menu, choose the Batch Processing Program from the Menu.
You will be asked to enter the project or run name. - Type in the project or run name in the space provided. - Press the Enter key ().
The Command Line, type: OC <project or run name>
and press the Enter key (). Example:

oc octut1
where octut1 is the project or run name.

Running the Programs in Batch Files, Continued
What happens The program will check to see what stage the processing for this project or run has reached.
If a Sequence Binary File has already been generated and its date and time
of creation is later than that of the Sequence Text File, then it will look for the Economics Binary File.
If an Economics Binary File has already been generated and its time and date
of creation is later than that for the Sequence Binary File and the Economics Text File, then the optimization will be performed.
If a Result Binary File is present and the time sequence for all the other files
is satisfied, then it will produce the printed report. It will only produce spreadsheet output if a Spreadsheet Definition File is present with the same run name. The program checks to see that each program terminates without error, and will only progress to the next stage if the oc??.ok file is present (see page 150 for more information about the oc??.ok file). Note:
The Batch Processing Program requires that the Sequence and Economic
files have the same project or run name. It also requires that the Spreadsheet Definition File, if used, has the same name.
The program works only if the user is using the default file extensions for the
above files. See pages 42 - 47 for more information about default file extensions. Tutorials and Exercises For practice using the Batch Processing program, see:
Exercise 1 - Automating the Process, starting on page 215. Exercise 2 - Varying the Compaction, starting on page 234. Tutorial 3 - Using a Stockpile, starting on page 237. Exercise 3 - Adjusting Throughput, starting on page 245. Tutorial 4 - Multi-element Deposits, starting on page 250. Exercise 4 - Multi-element Stockpiles, starting on page 256. Continued on next page
Autolog facility
If log files have been created, the autolog facility can be used to automate a series of runs, from the Command Line. To use this facility, a log file must exist in the current directory, with the name:
autooc??.log
where oc?? is the Command Line name. This file will automatically be used as a log file without your giving a !USE or !DEMO command. Example Assume a file called autoocop.log exists in the current directory. This file will automatically be used if the Optimization Program (OCOP) is run. If you want to do a series of optimizations, you could set up a series of individual log files and then copy the log files, in turn, to the autoocop.log file before running the Optimization Program. Note that you would have to have different print file names set up in the logs to retain the individual results. Here is an example of a DOS file using the autolog facility.
@ECHO OFF rem ECONOMICS BINARY rem the next two lines IF NOT EXIST TST91.SBI IF NOT EXIST TST91.ETX IF NOT EXIST TST91.LOE
check that the files exist GOTO SBIERROR GOTO ETXERROR GOTO LOEERROR
REM Create input file copy tst91.loe autoocec.log OCEC IF NOT EXIST OCEC.OK GOTO PGMERROR rem further processing etc GOTO END :SBIERROR ECHO *** TST91.SBI IS MISSING GOTO END :ETXERROR ECHO *** TST91.ETX IS MISSING GOTO END :LOEERROR ECHO *** TST91.LOE IS MISSING GOTO END :PGMERROR ECHO *** RUN STOPPED BECAUSE OF PROGRAM ERROR GOTO END :END
Using files as redirected input files
Another way to automate user input is to create a file containing the responses required for the keyboard. Then to use this file as a redirected input file, under DOS or UNIX. To run a file as a redirected input file, at the Command Line type:
the program name
- followed by the < symbol - then the filename - and then press the Enter key. Example
OCSE <inp
In this example, the Sequence Input Program (OCSE) would be run, using the keyboard responses from the file inp. Here is an example of a DOS file containing user input.
@ECHO OFF rem ECONOMICS BINARY rem the next two lines check that the files exist IF NOT EXIST TST91.SBI GOTO SBIERROR IF NOT EXIST TST91.ETX GOTO ETXERROR REM Create input file ECHO #TST91 > INP ECHO #TST91 >> INP ECHO #TST91 >> INP ECHO #TST91 >> INP OCEC <INP IF NOT EXIST OCEC.OK GOTO PGMERROR rem further processing etc GOTO END :SBIERROR ECHO *** TST91.SBI IS MISSING GOTO END :ETXERROR ECHO *** TST91.ETX IS MISSING GOTO END :PGMERROR ECHO *** RUN STOPPED BECAUSE OF PROGRAM ERROR GOTO END :END
Using the oc??.ok file to check the run
The oc??.ok file (where oc?? is the Command Line name) is a file that is created by each program when a run is completed successfully. This file is deleted at the start of a run and re-created at the end, if the run is successful. This file can be useful in determining whether a program run has been successful. In addition, its presence or absence can be used to control subsequent action by a batch or macro file.
Simplifying the Text Files to Improve the Speed of Processing
Introduction
The speed of processing is dependent on a number of factors. These include the complexity of the:
Sequence description.
The program has to evaluate the effects of cut-offs on the material usage. Therefore, the more groups there are in the increment, or the more increments there are, the longer the process takes.
Economic description.
The solution time increases dramatically with the increase in the number of cut-offs.
Simplifying descriptions
If you find that the Opti-Cut runs are taking too long, then it may pay you to simplify the Sequence and Economics Text Files. You can do this by reducing the number of cut-offs, reducing the number of groups, and using simplified increment descriptions. Do your initial runs and sensitivity analyses with the simplified data set and then confirm the results on the more complicated data set.
Simplifying the Text Files to Improve the Speed of Processing, Continued
Compaction and bias
You can use the Compaction Program to reduce the number of groups and/or the number of increments in the Sequence Text File. Within a sequence, Opti-Cut mines an increment proportionally. It takes the same amount from every group in the increment. This means that there is no special significance to an individual group.
Where two or more groups share the same grade range, they can be
combined with no loss of accuracy but with a gain in speed.

Similarly, with point grades, if the total grade range is split into a series of
slots of specified minimum and maximum grade and the increment is reclassified into these slots, then the grade information remains the same, while the number of groups is reduced. Four-D and Four-X output With output from Four-D or Four-X, this reduction is significant. Example The following table shows the reduction in file size and processing time for several levels of compaction of the fdtut Sequence file output. All are compacted to 4 million tonne increments. Grade spacing None 0.001 0.010 0.020 0.050 File size 552,960 73,728 14,336 10,240 6,144 OCOP time First cut-off 6 min 42 sec 0.055 1 min 12 sec 0.054 13 sec 9 sec 3 sec 0.054 0.054 0.054 NPV result 35,019,822 35,024,667 35,023,659 35,042,876 35,823,636
Note: in this example, there is no significant difference in cut-off between any of the runs. It is only when the grade spacing is increased to 50 times the grade discrimination that the NPV changes significantly (2.3%). Note also that using a grade spacing of 0.020 produces effectively identical results in one forty-fifth of the time.
Chapter 2: Economic Factors Overview
In this chapter
This chapter contains the following topics. Topic Constant Dollars Prices Costs - General Costs - Specific The Application of Costs Cost Estimation Sheets See Page 154 155 159 160 164 168
Constant Dollars
Introduction
Mining projects tend to run for a long time. Prices, costs, discount and inflation rates may all vary over this time-frame. To minimize the amount of computation that the user must do to provide input data to the economic scenario (in the Economics Text File), we use constant or todays dollars. By this we mean units that are not subject to inflation.
Where price and cost values have to change
Prices and costs only have to change if there are other factors apart from inflation to be considered. These might include:
changes to the scale of the operation and economies of scale, changes to overheads or time costs, due to changes in staffing levels, or
forward selling considerations.

For more information about:

Prices, see page 155. Costs, see page 159.
Prices
Introduction
In general, prices may be fixed for a period of time due to a forward supply contract, or they may rise or fall due to market forces. This topic discusses various economic scenarios in relation to prices, and provides example lines for the Economics Text File.
No real change in price
Where there is no real change in price with time in todays dollars, you would use the standard Product Line in the following format:
PR <Element code> P <Price per unit>
Example Assuming the current price of gold is $420, you would use:
PR GOLD P 420
This line indicates that the product (PR) GOLD is $420 per unit.
Constant contract price over a period of time
Where there is a constant contract price over a period of time, in todays dollars we would suffer a decrease in value over time. The values entered into Opti-Cut must be decreased by a rate to allow for inflation. For smooth or constant changes, it can be handy to define an expression in the Economics Text File for the deflation factor, and then use this variable in the expression for price. You could insert an Expression Variable Line in the Economics Text File, such as the following, to cover the duration of the project:
EV YEAR 0 p2/1 p3/2 p4/3 p5/4 .... pn/(n-1)
In this example:

At the beginning of the project (YEAR), the value of the item is 0. During the second year (p2), the value of the item is 1. During the third year (p3), the value of the item is 2. During the fourth year (p4), the value of the item is 3. During the fifth year (p5), the value of the item is 4.
and so on, up to pn.

Prices, Continued
You would then need make reference to this line in the Product Line. Example If the discount rate were 3%, this would allow the following Product Line:
PR GOLD P 420/(1.03)**YEAR
In this example, the price of the product, GOLD, is $420 divided by 1.03 to the power of YEAR (as defined in the Expression Variable Line). Thus,
At the beginning of the project, the price of GOLD would be $420.00.
That is, 420/(1.03)0.

During the second year, the price of GOLD would be $407.77.
That is, 420/(1.03)1.

During the third year, the price of GOLD would be $395.89.
That is, 420/(1.03)2.

During the fourth year, the price of GOLD would be $384.36.
That is, 420/(1.03)3.

During the fifth year, the price of GOLD would be $373.16.
That is, 420/(1.03)4. and so on, up to pn.

Prices, Continued
Steadily decreasing price
If you feel that the price of your product will decrease each year due to market forces, then you can deflate the annual price to get todays dollars. Example If you feel that the price of your product will decrease by, say, 5% per annum, using the same Expression Variable Line above, you would use the following Product Line.
PR GOLD P 420/(1.05)**YEAR
In this example, the price of the product, GOLD, is $420 divided by 1.05 to the power of YEAR (as defined in the Expression Variable Line).
At the beginning of the project, the price of GOLD would be $420.00.
That is, 420/(1.05)0.

During the second year, the price of GOLD would be $400.00.
That is, 420/(1.05)1.

During the third year, the price of GOLD would be $380.95.
That is, 420/(1.05)2.

During the fourth year, the price of GOLD would be $362.81.
That is, 420/(1.05)3.

During the fifth year, the price of GOLD would be $345.53.
That is, 420/(1.05)4. and so on, up to pn.

Prices, Continued
Constant and then declining
In another situation, the price of a product might remain constant for a period of time, but then decline by a certain percentage, due to factors other than time. This information must appear in the Product Line. Example If you feel that the price will remain constant for, say, 5 years but then decline by ten percent, you would use the following Product Line:
PR GOLD P 420 P6/378
In this example, the price of the product, GOLD, is $420 until the sixth year (P6) when it falls to $378 (that is $420-(10%)=378).
Note: when determining the price of the product, make sure you match the grade units (e.g. grams per tonne, ounces per tonne, percentages, carats per tonne, etc.) used in the Economics Text File with those in the Sequence Text File.
Costs - General
The following sections are not intended to be a detailed discussion of costs, but more an overview of the types of costs that relate to mining.
Introduction
When preparing for an Opti-Cut optimization, you must calculate the expected mining, processing, rehabilitation and selling costs. However, Opti-Cut has very specific requirements with regard to the calculation of these costs and the way they are input, and it is important that these be fully understood. Note: many users set up all their cost calculations in a computer spreadsheet. This makes re-calculation much easier.
Cost adjustment Opti-Cut assumes that all costs are calculated for a particular position in the factors mine. This position, called the Reference Position, is usually at the surface,
but it can be anywhere you like, provided you have it clearly in mind. The concept of a Reference Position is very important in Opti-Cut. Waste mining and processing costs should be worked out for the Reference Position even if there is no appropriate material at that position (that is, the Reference Position may consist entirely of barren material) but you should still work out the processing cost as though the material to be processed is there. These costs are stored in the Economics Text File. Opti-Cut deals with any variation of these costs, such as the increase of mining cost with depth, by the use of positional CAFs. There can be adjustment factors for waste mining costs and for processing costs for each group in the Sequence Text File. The CAFs for any material at the Reference Position should be 1.00.
Four-D and Four-X users
Note: if you are a Four-D or Four-X user, costs for Opti-Cut are NOT calculated in the same way as they are for Four-D or Four-X. See page 160 for more information.
Costs - Specific
What is a cost?
Costs include
Incremental costs.
Such as wages and fuel costs. These costs must be included in the calculation of the cost of the activity with which they are associated. Costs may or may not include
Expenditures that are related to time rather than to tonnage or production.
These require careful thought, but generally: Include: any time-related expenditure that would stop if mining stopped (time costs). Exclude: any expenditure that would not stop if mining stopped. Note: Four-D and Four-X users Costs for Opti-Cut are NOT calculated in the same way as they are for Four-D or Four-X. The same basic figures are required. However, time costs must be handled explicitly rather than being factored into the incremental costs. This is because Opti-Cut obtains its results by balancing tonnage-related cash flows against time costs.
Types of costs
Costs can be expressed as:

mining costs per tonne processing costs per tonne rehabilitation costs per tonne selling costs per unit of product produced, and/or time costs.
Costs - Specific, Continued
Mining costs
The mining cost is the cost of mining a unit of rock as if it were to be treated as waste, regardless of whether in reality the rock will be processed or stockpiled for later processing. Note: if a group is to be processed or stockpiled, then the additional costs associated with this are applied, using the processing cost and re-handling cost values. See page 162 for more information. Mining costs include:

Assaying and sampling. Clearing the site and topsoil removal. Dewatering the pit. Drilling and blasting. Ground support. Loading and hauling. Mine services, which include: - Geological services. - Grade control. - In-pit supervision. - Mine administration. - Surveying. Mobilising/demobilising. Standby and miscellaneous machine hire maintenance. Waste dump management. Calculating mining costs
Actual mining costs for each group in a Sequence Text File are calculated by multiplying:
the positional mining CAF for that group in the Sequence Text File, and, the mining cost (at the Reference Position), for the particular type of rock,
from the Economics Text File. The CAF is used to modify the mining cost in order to allow for the physical location of the group in question. For example, a group located a certain distance below the surface may cost 30% more to mine and haul to the waste dump than a group located at the surface. If the Reference Position is at the surface, then the CAF for the group located a certain distance below the surface should be set to 1.3.
Processing costs
Processing costs include:

Crushing and grinding. Grade control (usually - see page 167 for more information). Maintenance. Mill services. Ore handling (additional costs). Stockpile management. Treatment plant reagents.
Extra ore mining costs Because different equipment may be used, it is not uncommon for the cost per tonne of mining ore to be greater than the cost per tonne of mining waste. For Opti-Cut purposes, the extra cost should be added to the processing cost. Example If the costs of mining and processing ore are $1.54 and $7.37 respectively, and the cost of mining waste is $0.82, then, for Opti-Cut purposes, we use a processing cost of $8.09 (=1.54+7.37-0.82). Remember that it is important to calculate these figures initially as though mining were taking place at the Reference Position, even if there is no mineralised material in the Reference Position. If the costs are different in other parts of the model, then the differences should be handled by including positional mining and/or processing CAFs in the Sequence Text File.
Rehabilitation costs
The rehabilitation cost is the cost per tonne of rehabilitating material of a particular type of rock, after it has been dumped as waste. Rehabilitation costs relate to the material that is mined but is not processed. Rehabilitation costs include:
Waste dump rehabilitation. Acid mine drainage measures. Revegetation.
Although these costs are not directly proportional to tonnage, an amount per tonne must be estimated in order for Opti-Cut to be able to handle this.
Selling costs
Selling costs include:

Bullion transportation. Insurance. Marketing. Refining. Smelting. Supervision. Transporting.
Time costs
Time costs include:

Accommodation supplies and services. Administration salaries and wages. Communications. Insurance. Legal. Safety and training. Supplies and services.
The Application of Costs
Introduction
Some examples of the handling of various costs may be helpful. These examples do not cover all possible costs, but should indicate how to treat most costs.
Processing mill
There may be a several types of costs involved in relation to a processing mill. There may also be other expenditures that are not considered to be costs for the purposes of Opti-Cut. Example Assume that we have a processing mill that cost $10m to build and commission. If the mine were to be shut down very shortly after operations commenced, the mill would have:
an unrecoverable initial capital expenditure, and, a certain salvage value.
Initial capital expenditure The mill would have an initial capital expenditure which would be unrecoverable, say, $4m. This is an up-front or sunk cost that must be entered as an initial capital expenditure. It does not affect the cut-offs.
The Application of Costs, Continued
Salvage value The mill may also have a certain salvage value ($6m). The extent of the salvage value will depend on:
Whether there is an on-going program of maintenance and capital
replacement. If we assume that there will be an on-going program of maintenance and capital replacement that will keep the salvage value of the mill close to $6m in today's dollars, then the $6m is theoretically recoverable when the mine is closed, and so is not a cost. However, maintenance and periodic capital replacement expenses are costs for these purposes, because they would stop if mining stopped. They should be treated as time costs and/or a series of capital injections.
Whether only essential maintenance will be done.
If only essential maintenance will be done, the salvage value of the mill will progressively decline. In this case, the expected rate of this decline should be treated as a time cost. Note: the rate of decline is not necessarily the same as the depreciation rate that is used by accountants. In most cases the depreciation rate is set by taxation considerations, and may reduce the book value to zero when the salvage value is clearly not zero. The interest on the salvage value is discussed in Bank loans for recoverable costs on page 167.
Trucks
The types of costs involved in relation to trucks depends upon the life of the mine. Where the life of the mine shorter than the life of a truck If the expected life of the mine is shorter than the operating life of a truck, then truck purchases can be treated in the same way as the cost of the mill (see the example above). Where the life of the mine is longer than the life of a truck If the life of the mine is much longer than the life of a truck, then trucks will have to be purchased progressively to maintain the fleet. Such purchases will stop if mining is stopped. Consequently, the cost of purchasing trucks should be averaged out over the life of the mine and treated as a time cost. Unless the life of the mine is expected to be very long, some compromise between the two approaches, above, is usually required. Contract mining companies must take these factors into account when quoting for a job, and it is sometimes useful to think as they do when you are working out the costs for your own fleet. You should include everything that they do, except for their allowance for profit.
Administration costs
As on-site administration costs will usually stop if mining is stopped, they should be treated as a time cost. Head office administration costs may, or may not, stop if mining stops depending on the circumstances of the particular mine, and thus may or may not be included.
Bank loans for initial costs
Repayment (principal and interest) of a bank loan taken out to cover initial set-up costs will have to continue whether mining continues or not. Repayments of bank loans for initial costs should therefore not be included in the costs. Of course, these repayments will have to come from the cash flow of the mine. If the mine is not going to produce enough cash flow to cover them, the project should not proceed. You should not introduce these repayments as costs, in an attempt to improve the optimization.
Bank loans for recoverable costs
Although bank loan repayments themselves are not included, some of the items that the loan was used to pay for may be included. For example, if you borrow money from the bank for day-to-day working capital or for items, such as the $6m discussed in the mill example above, then you can reasonably expect to repay the loan if mining stops. Consequently, the interest paid on such a loan is a cost that stops if mining stops. It should therefore be treated as a time cost. Note: Opti-Cut works throughout in todays currency, so the interest rate used should not include an allowance for inflation.
Grade control costs
It is often necessary to do grade control work on waste as well as ore. In this case, grade control costs apply to waste costs too. If only some of the waste is grade controlled, then the correct way to handle it is to load the cost of those particular types of waste rock. However, many users make an estimate of the tonnes of such waste per tonne of ore and load the cost of mining ore.
Terminal value
Terminal value is the value, if we were to start mining today, of the resource remaining when the current processing finishes. If you are only optimizing a part of the resource then there should be a terminal value applied to the remainder of the resource. This is entered in todays dollars and ensures that the cut-offs will be the same as if the resource was consumed to completion.
Cost Estimation Sheets
Introduction
This section is not intended to be a detailed cost estimation review. The design and costing of a complete mining system is a complex matter. Many decisions can change according to the type and location of the mine. There are many good guides to cost estimation and no doubt each user has a favourite method. The following lists are not exhaustive, but they may give an indication of the types of costs that have to be considered under each category. Feel free to add or modify cost centres where applicable. In cases where costs vary with type of rock, depth or other parameters, it will be necessary to compute adjustment factors on a separate work sheet. All costs should be expressed in todays dollars.
Mining costs
The following is a mining cost estimation sheet.
MINING COSTS
Estimated tonnage Clearing the site and topsoil removal Mobilising/demobilising Drilling and blasting Loading and hauling Standby and miscellaneous machine hire maintenance Dewatering the pit Ground support Waste dump management Mine services: Geological services Grade control In-pit supervision Mine administration Surveying etc.
Total cost
Per tonne
Total unit mining cost

Cost Estimation Sheets, Continued
Processing costs
The following is a processing cost estimation sheet.
PROCESSING COSTS
Estimated tonnage Crushing and grinding Treatment plant reagents Maintenance Mill services Ore handling (additional costs) Stockpile management Grade control
Total cost
Per tonne
Total unit processing cost

The following is a rehabilitation cost estimation sheet.
REHABILITATION COSTS
Estimated tonnage
Waste dump rehabilitation Acid mine drainage measures Revegetation
Total cost
Per tonne
Total unit rehabilitation cost

Cost Estimation Sheets, Continued
Selling costs
The following is a selling cost estimation sheet.
SELLING COSTS
Estimated tonnage Assaying and sampling Smelting Refining Transporting Marketing Insurance Supervision Bullion transportation
Total cost
Per unit
Total unit selling cost
Time costs
The following is a time cost estimation sheet.
TIME COSTS
Administration salaries and wages Supplies and services Accommodation supplies and services Communications Insurance Legal Safety and training
Per annum
Per month
Total time cost
Chapter 3: Mining Factors Overview
In this chapter
This chapter contains the following topics. Topic Iteration Stockpiles Processing Throughput Factors Pre-stripping Processing Recovery (non linear recovery) Cut-offs See Page 172 173 179 181 182 183
Iteration
Introduction
It cannot be too strongly emphasised that the use of any optimizer is an iterative process.
Model
In order to perform an optimization of one or more aspects of a mining operation, it is necessary to create a model. A model is a set of assumptions, plans, facts and forecasts, covering all of the important aspects of the operation, other than those which are to be optimized. In the case of Opti-Cut, the model includes the sequence in which the resource (waste and mineralised material) will be mined, the rate at which mining can proceed, the capacity of processing plants, costs, and many other details. Opti-Cut deals with one model at a time. To determine the mining sequence, a mine design is required. To create a reasonable mine design, the cut-offs must be known. However, to optimize cut-offs, a mining sequence is required. As you can see, a circular problem exists.
Mine design Mining Sequence
Cut-offs
Iteration
Thus, in order to optimize all aspects of a mining operation as far as it is possible, a circular solution is required. This involves the repeated use of Opti-Cut as well as other design tools and techniques. As each cycle proceeds, the body of knowledge on which you base your assumptions increases. This knowledge may be further enhanced by undertaking what-if and sensitivity analyses, and by using advanced tools and techniques. Once the process is completed to your satisfaction, the final set of assumptions becomes your plan.
Stockpiles
Definition
A stockpile is an accumulation of ore, set aside for later processing. A rock-type and one or more grade ranges must be specified for each stockpile.
Using stockpile material
In Opti-Cut, there are two different ways in which stockpile material can be used.
If there is at least a mining limit and a processing limit, then stockpile
material may be used to top up the processing stream and improve cash flow when the project is mining limited.
At the end of the project resource, the stockpile material can be processed to
extend the life of the project and provide additional cash flow. Note: a third situation where the processing of stockpile material may be preferable to mined ore under certain circumstances, has not been implemented. Intermediate grade material is moved to a stockpile if the grade of the element(s) is within the specified range for the stockpile. There is no guarantee that it will all be used, since this relies on the economic factors applicable in a later period. If the resource is finished but stockpile material remains and the economics indicate it should not be processed, then the simulation of the operation of the mine will terminate. This occurs even if, in a later period, the price rises sufficiently to make processing profitable. Sensible selection of a cut-off will maximize your chances of using it all. For more information about the effects of stockpiles on cut-offs, see page 176. It is envisaged that a stockpile could feed into more than one processing method for a given ore type.
Stockpiles, Continued
The diagram below shows the possible ore movement between an increment, the stockpile and the processes.
Decisions made using processing cut-offs and stockpile cut-offs Stockpile 2 Increment Stockpile 1
Rejected
Processing Method B Processing Method A
Product
Decisions made on cash flow
Stockpile grades
From Opti-Cuts point of view:

A stockpile is made up of a particular type of rock. A stockpile may start with a defined tonnage and initial grades. At least one element in the stockpile must have a grade range specified, but
it is not necessary to specify all grades in a multi-element situation. See Multi-element stockpiles on page 175 for more information.
Where there is more than one stockpile for the same type of rock, stockpile
grade ranges must not overlap. This information should be added to the Economics Text File. See Lines in Detail, starting on page 98, for more information. As material is moved to the stockpile, the tonnage and metal information is accumulated, so that at any point in time, the average grade is known. Stock withdrawals are considered to be at the average grade. Stockpiles are only used if they return a positive cash flow.
Multi-element stockpiles
The cut-off limits can be set for one or more elements. Material will be passed to the pile if it is not processed and falls within the limit boundaries. When multiple elements are involved, stockpile cut-offs can be used for elements which do not have cut-offs for processing discrimination. Note: Opti-Cut does not handle stockpiles based on equivalent metal cut-offs. This information should be added to the Economics Text File. See Lines in Detail, starting on page 98, for more information. With Opti-Cut, you do not have to have the same tolerance for each element. One element may be closely controlled while another is only broadly controlled.
Dealing with old If you want to use old stockpiles to feed an existing mill, you can give them stockpiles another rock-type code in the Sequence Text File so that they do not receive
any material from existing pits. The size and initial grade can be entered in the standard manner in the Economics Text File. As each stockpile can have its own handling charge, the costs of haulage can be correctly allocated. Add an additional method/rock-type processing record to cater for the processing of the material. The optimizer will then order the stockpile usage in the most appropriate manner.
Costs associated Each stockpile can have an associated re-handling cost which is only applied as with stockpiles the stockpile is used.
To allow for the effects of time on the stored material, there is a recovery percentage allocated to each product in the stockpile. This percentage can vary with time. The stockpile recovery percentage and the process recovery percentage are multiplied together. If there is a re-handling cost, this information should be included in the Stockpile Line, in the Economics Text File. See page 107 for more information.
Stockpile variables
There are many variables associated with stockpiles. These include the:

Size of the pile. Number of piles or discrete locations. Number of products to handle. Choice of cut-off and the amount used each interval (for each method). Total tonnage limit of all stockpiles.
This information should be included in the Economics Text File. See Lines in Detail, starting on page 98, for more information.
Effects of stockpiles
Stockpiles and cut-offs The use of stockpiles will affect the optimal cut-offs. This is because material rejected in early years is no longer sent to waste and still has value. Thus, cut-offs will tend to be set higher to improve cash flow even more in the early years, provided that the project is not mining limited. Treatment and mining capacity Stockpile withdrawals may or may not affect the mining capacity. This will vary from site to site and with the availability of equipment to transfer the stockpile material. If you use the mining factor switch, MF S (Global Mining Factors Line in the Economics Text File), Opti-Cut can cater for the case where:
the stockpile usage is included in the rock throughput limit (use 0), and stockpile usage is independent of the rock limit (use 1).
See page 106 for more information.

Stockpile cut-offs When one element is involved, the lowest stockpile cut-off should be greater than or equal to:
Rehandling cost + Processing cost Stockpile recovery Processing recovery Price
Where all the values are what you expect them to be when the stockpile material is processed. When more than one element is involved, the situation is more complicated. In this situation, Opti-Cut can only use stockpile cut-offs which each apply individually. Therefore, it is necessary to break the stockpiles into grade ranges for one element and a series of stepped values for the other(s), in order to approximate the sloping line of the processing cut-off, as shown below.
0.10
SP_3
0.08
Element 1
0.06
SP_2
0.04
SP_1
0.02
0.00 0.0
0.1
0.2
0.3
0.4
0.5
Element 2
Alternatively, you could use the cut-off for one element to separate the stock into two or more piles, for example:
Where there are two stockpiles, give them a low/high structure. Where there are three stockpiles, give them a low/medium/high structure. Continued on next page
More than one stockpile
If possible, it will pay to have more than one stockpile. For example, you can define a low-grade stockpile and a high-grade stockpile. Opti-Cut will always use the material from the stockpile that gives the greatest return first. Material that is available to be sent to the stockpiles can be controlled by the parameters defining the rock-type and grade ranges for each stockpile. There will be a practical limit to the number of stockpiles that can be handled for a project, depending on the grade control techniques used. However, the greater the number of different stockpiles, the higher in general, will be the NPV.
Rehabilitation costs are not an issue with stockpiles because if the material is in the stockpile, it is assumed that it will be processed and not sent to waste.
For tutorials and exercises using stockpiles, see:

Tutorial 3 - Using a Stockpile, on page 237. Exercise 4 - Multi-element Stockpiles, on page 256.
Processing Throughput Factors
Introduction
In Four-D and Four-X a processing throughput factor can be defined for each rock-type. This can be used to show that some rock-types are easier to process than others, and must therefore be counted differently when dealing with processing limits. In Opti-Cut the same effect can be produced by defining a throughput group line and a throughput limit line in the Economics Text File. The following examples show two different ways of setting processing throughput factors.
Example 1
Assume that there are two ore types, OREA and OREB, and a process called MILL. A process throughput group and an appropriate throughput limit may be defined as follows:
TG TL MILL OREA.Q/1.05 + OREB.Q MILL M 120K
In this example:
In the Throughput Group Line: the material that is put through to the mill
will be OREA divided by 1.05 plus OREB. In other words, this will ensure a throughput factor of 1.05 in relation to ore type OREA.
In the Throughput Limit Line: the throughput of the mill is limited to
120,000 tonnes per month (M).

Processing Throughput Factors, Continued
Example 2
Where the throughput factor will change with time, you can create an expression that changes with time, and apply it to the throughput group. An Expression Variable Line may be added to the Economics Text File and the Throughput Group Line modified, as follows:
EV TG THRFACT 1.05 P5/1.0 MILL OREA.Q/THRFACT + OREB.Q
By adding the Expression Variable Line and modifying the Throughput Group Line to recognise the Expression Variable Line, OREA now has a throughput factor of 1.05 for the first four periods and a factor of one for the remainder of the project.
Pre-stripping
Introduction
Pre-stripping is not explicitly handled by Opti-Cut, but it can be simulated by setting the minimum cut-off high in the period that would be considered for pre-stripping. The following lines in the Economics Text File would allow for pre-stripping.
MT MILL ORE 5 MTC Gold I 30 P3/0
Example
In this example:
MT refers to the method/rock-type line. MILL is the processing method, Mill. ORE is the rock-type code. 5 is the processing cost. MTC refers to the method/rock-type/cut-off line. Gold is the element code. That is the element to be found in the rock-type,
ORE.
I 30 P3/0
- I refers to the minimum cut-off, which is 30, until period 3 (P3). After that, there is no fixed minimum cut-off (0). In other words, the rock-type, ORE, must have at least a cut-off of 30 (say, grams per tonne) for it to be processed in the first two years. Thereafter, there is no fixed minimum and the economics determines whether the material will be processed.
Processing Recovery (non linear recovery)
Introduction
Opti-Cut has a facility whereby you can simulate non-linear recovery. To do this, Opti-Cut can subtract a threshold grade from the actual grade of the material before applying the recovery percentage. The sort of effective recovery percentage curves that result from this are illustrated below.
Recovery fraction at high grade
Effective recovery fraction
Different threshold grades
Grade
If a processing mill has a constant tailings grade, regardless of head grade, and all the other product is recovered, this is easily simulated by setting the recovery threshold to the expected tailings grade, and the recovery to 100%.
Cut-offs
Introduction
Opti-Cut searches for the set of cut-offs which maximize the NPV of the project. For each interval or period, Opti-Cut tries different cut-offs, and the NPV which results from them. It finally settles on the cut-off which gives the highest such value. If you supply a minimum or maximum cut-off, Opti-Cut restricts its cut-off search range accordingly.
Multiple cut-offs
If there are multiple cut-offs, then a number of cut-offs are required for each period or interval, and Opti-Cut tries a set of cut-offs for each step of the search.
More than one processing method
If more than one processing method is available for a particular type of rock, each group of that type of rock is tested against each of the methods in turn, in the order in which they appear in the Economics Text File. Any material in the group which is above the cut-off for a method is sent to that method and removed from the group before the next method is checked. Thus, the order in which methods are described in the Economics Text File can be important. For example, for a mill and heap leach operation, it is important to describe the mill first.
Cut-offs, Continued
The way multiple cut-offs
When multiple cut-offs are in use, Opti-Cut selects material for processing in the following way. If the sum of the grades divided by the corresponding cut-offs is greater than 1, then the material is processed. This is the same as using an equivalent metal. The following diagram illustrates this.
Element 1
Material processed Material not processed
Element 2
Part 5: Tutorials and Exercises Overview
Introduction
Opti-Cut is a large package with a wide range of facilities. You may not need to use all of these facilities, but you need to know what options exist and what they can do for you in order to be able to choose the appropriate facilities for your project.
In this part
This part contains four tutorials and four related exercises that are of increasing complexity and difficulty. Tutorial/Exercise Tutorial 1 - A Simple Run Through of the Main Programs Exercise 1 - Automating the Process Tutorial 2 - Four-D and Four-X Interfaces and Sequence Compaction Exercise 2 - Varying the Compaction Tutorial 3 - Using a Stockpile Exercise 3 - Adjusting Throughput Tutorial 4 - Multi-element Deposits Exercise 4 - Multi-element Stockpiles See Page 189 215 222 234 237 245 250 256
185 Part 5: Tutorials and Exercises 28 April, 1998
Preparation
Introduction
This topic contains some preliminary information that you may need to know in order to run the tutorials and exercises.
Disk space
You will need about 30 megabytes of disk space.
Directory and data files
The tutorials and exercises make use of a small set of demonstration data files that are supplied with your software. The instructions assume that you are working in the directory containing the tutorial data files. On a PC, this is usually directory C:\OC\TUTOR. Please check this by using the DIR command on a PC under DOS, the ls command under UNIX, or the appropriate action in one of the graphical operating environments (e.g. Windows). You should find at least the following files. File octut1.stx Description A Sequence Text File for a small mine. It contains details of the material to be mined. The sequence represents a small gold deposit. An Economics Text File. It contains information about the price and costs associated with the project in Tutorial 1. A Sequence Text File produced by Four-D. It is used in Tutorial 2. An Economics Text File. It contains information about the price and costs associated with the project in Tutorial 2. A Spreadsheet Definition File. It is used in Tutorial 2. A Sequence Text File for a two element copper/molybdenum deposit. It is used in Tutorial 4. An Economics Text File that contains information about the price and costs associated with the project. It is used in Tutorial 4.
octut1.etx
fdtut.stx octut2.etx
octut2.ssd octut4.stx octut4.etx
Preparation, Continued
Other files
In addition, you must have an initialization file, called:

oc.ini
in your current, or default, directory. This file, often called an ini file or a dot ini file, is usually supplied to you separately from the programs and tutorial data. You should also have the Batch Processing Program file,
oc.bat (or its UNIX equivalent)
in your program directory.

Viewing and printing print files
Opti-Cut Programs output the reports of their runs to what are called print files. You can view or print out a print file:
by loading it into a word processor or text editor
- or from the Command Line.
The following table shows how you can view or print out a print file from the Command Line. On a PC To view a print file, try:
EDIT <filename and extension>
On UNIX To view a print file, try:

more <filename and extension>
- or TYPE <filename and extension> | MORE
- or pg <filename and extension>
To print a print file try:

print octut1.prs
To print a print file, try:

lp octut1.prs
Preparation, Continued
In the tutorials and exercises
In the screen displays:
- the symbol indicates that you press the Enter key. UNIX computers, where case is important, it is usual to use lower case.
On a PC, the alphabetic case of the filenames you use is irrelevant. On Whenever an Opti-Cut program asks a question and shows a default
response in square brackets, pressing Enter will have the same effect as keying in that response. Note: there is a for more information section at the end of the tutorial or exercise if you require further explanation of a particular topic.
Running the programs
There are three ways that you can run the Opti-Cut programs:
interactively with the Batch Processing Program, or, using logged commands.
We will firstly go through the interactive method.
Important to keep files
It is important to keep the all of the files that you generate in the tutorials and exercises. This is because some of them are used again in the tutorials and exercises that follow.
Tutorial 1 - A Simple Run Through of the Main Programs Overview
Introduction
The object of this tutorial is to familiarise yourself with the general operation of the programs. In working through this tutorial you will carry out a straightforward optimization, and will also use the Print Results Program to obtain a print of the results of the optimization.
In this tutorial
This tutorial is divided up into the following topics. Topic Step 1: Producing the Sequence Binary File with the Sequence Input Program Step 2: Producing the Economics Binary File with the Economics Input Program Step 3: Doing the Optimization with the Optimization Program Step 4: Producing the Report using the Print Results Program Step 5: Re-running the Print Results Program to obtain the Marginal Cut-off Scenario File Summary What you have Learnt See Page 190 193 197 201 211 214 215
Step 1: Producing the Sequence Binary File with the Sequence Input Program
Introduction
The Sequence Text File (octut1.stx) you will use in this tutorial describes the grade information for the mining of one ore type, containing gold, in one increment. You will use the Sequence Input Program to create a Sequence Binary File from octut1.stx. A Sequence Binary File contains the information from the Sequence Text File in a form more suitable for optimization. Start up the Sequence Input Program (OCSE). If you are using: The Menu, choose the Sequence Input Program from the Menu. The Command Line, type: OCSE and press the Enter key (). It will display a heading similar to the one shown below, and will then ask for certain information.
Procedure
Use the following information in response to the prompts. Prompt Print file name Sequence Text File name Sequence Binary File name Use Call the print file octut1.prs Use the Sequence Text File provided, octut1.stx Call the Sequence Binary File octut1.sbi
Note: Opti-Cut has a list of default file extensions stored in oc.ini and will add the appropriate extension when you do not provide one. In this way you can simplify your data entry to simply octut1 for all responses. Refer to Files starting on page 42 for a list of default extensions.
If an output file already exists, as a result of a previous run, the program will complain and ask for the file name again. Enter the name again, but put a cross hatch (#) in front of it to indicate that you want to overwrite the existing file. Alternatively you can just enter the cross hatch, which will have the same effect. 190 Part 5: Tutorials and Exercises 28 April, 1998
Step 1: Producing the Sequence Binary File with the Sequence Input Program, Continued
What you see on the screen looks like the following. Note: we have added the Enter symbol to the following example screen to make it clearer where you press the Enter key. You will not actually see the symbol on the screen when you press the Enter key.
The program then starts its run, which takes less than a second. The screen report looks like this:
Step 1: Producing the Sequence Binary File with the Sequence Input Program, Continued
Examining the print file
Now examine the print file (octut1.prs) in detail by printing it out, or by viewing it on the screen with a system utility, text editor or word processor. See page 187 for guidelines on how to do this. The print file should look like the following.
Whittle Opti-Cut CREATE A SEQUENCE BINARY FILE Page 1 Rev 1.00 14:51 Licensed for use by <Your company name will appear here> 17-OCT-97 -----------------------------------------------------------------------------FILE INFORMATION Sequence Text File Sequence Binary File Raw sequence data SEQ Opti-Cut, One increment gold example EL GOLD 4 RO ORE ELP GOLD RO WASTE Increment summaries ****************************************************************************** Increment 1 1 Top Average Mining Adj 1.000 Average Processing Adj 1.000 Number of groups 18 Number of point grades 1 -----------------------------------------------------------------------------| Total Minimum Average Maximum Rock-Type Tonnage | Element Quantity Grade Grade Grade --------------- | -------------------------ORE 5,499,360 | GOLD 392,895 0.0200 0.0714 0.1970 WASTE 5,921,600 | Total: 11,420,960 | ****************************************************************************** Summary: Number of increments 1 Average Mining Adj 1.000 Average Processing Adj 1.000 Number of groups 18 Number of point grades 1 -----------------------------------------------------------------------------| Total Minimum Average Maximum Rock-Type Tonnage | Element Quantity Grade Grade Grade --------------- | -------------------------ORE 5,499,360 | GOLD 392,895 0.0200 0.0714 0.1970 WASTE 5,921,600 | Total: 11,420,960 | ****************************************************************************** Number of text lines read 52 : octut1.stx : octut1.sbi
A Sequence Binary File was created The run time was 0 hrs 0 mins 0 secs
Apart from page headings, the print file contains:

The names of the input and output files. A summary of the contents of each of the increments, showing the amounts
of rock, mineralised material and the grade for each of the elements. In this case, there is only 1 increment.
Step 2: Producing the Economics Binary File with the Economics Input Program
Introduction
The Economics Text File (octut1.etx) you will use in this tutorial covers a very simple milling operation based on one mill and one element. Time costs, processing costs and recoveries have all been specified. There are two throughput limits specified, one limiting mill capacity and one limiting mining capacity. You will use the Economics Input Program to create an Economics Binary File from octut1.etx. An Economics Binary File contains the information from the Economics Text File in a form more suitable for optimization.
Procedure
Start up the Economics Input Program (OCEC). It will display a heading similar to the one shown below, and will then ask for certain information.
Use the following information in response to the prompts. Prompt Print file name Sequence Binary File Economics Text File Economics Binary File name Use Call the print file octut1.pre Accept the default [octut1.sbi] offered by the system Use the Economics Text File provided, octut1.etx Call the Economics Binary File octut1.ebi
Again, you can simplify your responses to octut1, and let the system take care of the filename extensions. Note: you need to be aware of the extensions because the files are saved on disk using the full filename.
Step 2: Producing the Economics Binary File with the Economics Input Program, Continued
The program then starts its run, which takes only a second or two. The following message will appear on the screen during the run.
The number of decimal places used to print element grade information is specified in the Sequence Text File. It can be overridden in the Economics Text File and when this happens, a message like the one above, will be displayed. Note also that the number of decimal places finally used is also used to define the grade discrimination in the optimization.
Now take the time to examine the print file (octut1.pre) in detail (see page 187 for guidelines). The print file should look like the following.
Whittle Opti-Cut CREATE ECONOMIC DATA BASE Page 1 Rev 1.00 14:51 Licensed for use by <Your company name will appear here> 17-OCT-97 -----------------------------------------------------------------------------FILE INFORMATION Sequence Binary File Economics Text File Economics Binary File Raw data listing ECO OCTUT1 initial example TV 0 PL 12 TC A 500K DI 10 PR GOLD P 370 EL GOLD 3 --- Decimal places for GOLD in Sequence file (4) is altered to 3. RO WASTE M 1.25 RO ore M 1.25 MT MILL ore 8.00 MTP GOLD R 90.0 TL ROCK A 3M TL MILL a 500K : octut1.sbi : octut1.etx : octut1.ebi
Number of text lines read
31
-----------------------------------------------------------------------------Sequence description Economics description : Opti-Cut, One increment gold example : OCTUT1 initial example
***************************************************************************** Initial Capital 0 Terminal value 0 (resource fully consumed) Cut-Off Mode 1 ***************************************************************************** Economic Parameters for period 1 to the end: ----------------------------------------------------------------------------Period length 12 months | Time Costs 41,667 per month | Discount 10.0 % per year | Mining recovery 1.000 Inflation 0.0 % per year | Mining dilution 1.000 ----------------------------------------------------------------------------Price Sales Cost | Lv in Mining Environmental Product Per unit Per unit | Rock-typ Gnd Cost/Tonne Cost/Tonne ---------------------- | -------- ------------------GOLD 370.00 0.00 | ORE F 1.25 0.00 | WASTE F 1.25 0.00 ----------------------------------------------------------------------------Proc. RockProcessing Percent Threshold Minimum Maximum Method Type Cost/Tonne Element Recovery Linearity Cut-off Cut-off -------- -------- ---------- ------- -------- --------- ------- ------MILL ORE 8.00 GOLD 90.0 N/A N/A N/A ----------------------------------------------------------------------------Throughput limit ROCK 250,000 per month 3,000,000 per year Throughput limit MILL.Q 41,667 per month 500,000 per year ***************************************************************************** An Economics Binary File was created The run time was 0 hrs 0 mins 0 secs
Apart from page headings, the print file contains:

The names of the input and output files. A summary of the economic parameters and the periods to which they apply.
This will allow you to check that the economic scenario is set up correctly. Note: throughput limits can be entered as monthly or yearly data. Either way, the report always shows both.
Step 3: Doing the Optimization with the Optimization Program
Introduction
Now that the Sequence and Economics Text Files have been converted to binary files, the optimization can be performed.
Procedure
Start up the Optimization Program (OCOP). It will display a heading similar to the one shown below.
Use the following information in response to the prompts. Prompt Print file name Economics Binary File Result Binary File name Do you want to optimize by period? Use Call the print file octut1.pro Use the default [octut1.ebi] offered by the system Call the Result Binary File octut1.rbi Use the default [Y]
Note: although the Optimization Program does not ask for it by name, it uses the Sequence Binary File octut1.sbi, so it must still be present in the working directory. The name is recorded in the Economics Binary File.
Step 3: Doing the Optimization with the Optimization Program, Continued
The program goes through the entire resource to calculate the initial NPV. It shows the amount of an increment used in each period, and the cut-off used. The cut-offs shown are the marginal, unoptimized, cut-offs. The NPVs for the different discount modes are shown. Discount modes are explained on page 74. The program then shows the progress of the optimization on the screen, giving the NPVs achieved at the end of each iteration. The optimization print file contains a report of the processing done which is identical to the screen display. The report also contains the names of the input and output files. On the following pages there is a copy of the print file, octut1.pro.
Whittle Opti-Cut PERFORM THE OPTIMIZATION Page 1 Rev 1.00 14:51 Licensed for use by <Your company name will appear here> 17-OCT-97 -----------------------------------------------------------------------------FILE INFORMATION Economics Binary File Result Binary File Optimization by period FINDING THE MARGINAL CUT-OFFS Period 1 2 3 4 5 6 7 8 9 10 11 The NPV The NPV The NPV The NPV The NPV Increment End% 1 9 1 18 1 27 1 36 1 46 1 55 1 64 1 73 1 82 1 91 1 100 discount mode = 1 discount mode = 2 discount mode = 3 discount mode = 4 discount mode = 5 Ex-stock Process MILL MILL MILL MILL MILL MILL MILL MILL MILL MILL MILL 41,622,212 43,633,196 39,666,542 39,666,542 39,673,991 Rocktype ORE ORE ORE ORE ORE ORE ORE ORE ORE ORE ORE Element GOLD GOLD GOLD GOLD GOLD GOLD GOLD GOLD GOLD GOLD GOLD Cut-off 0.0270 0.0270 0.0270 0.0270 0.0270 0.0270 0.0270 0.0270 0.0270 0.0270 0.0270 : octut1.ebi : octut1.rbi
with with with with with
is is is is is
ITERATION Period 1 2 3 4 5 6 7 8 9 10 The NPV The NPV The NPV The NPV The NPV
1 OF THE OPTIMIZATION (Press ESC to stop at end) Increment End% 1 12 1 23 1 33 1 44 1 54 1 63 1 73 1 82 1 92 1 100 discount mode = 1 discount mode = 2 discount mode = 3 discount mode = 4 discount mode = 5 Ex-stock Process MILL MILL MILL MILL MILL MILL MILL MILL MILL MILL 42,462,419 44,510,038 40,463,671 40,463,671 40,478,598 Rocktype ORE ORE ORE ORE ORE ORE ORE ORE ORE ORE Change Change Change Change Change Element Cut-off GOLD 0.0517 GOLD 0.0496 GOLD 0.0475 GOLD 0.0452 GOLD 0.0428 GOLD 0.0403 GOLD 0.0376 GOLD 0.0348 GOLD 0.0318 GOLD 0.0286 is 1.998479% is 1.989585% is 1.989585% is 1.989585% is 2.007688%
is is is is is
ITERATION Period 1 2 3 4 5 6 7 8 9 10 The NPV The NPV The NPV The NPV The NPV
2 OF THE OPTIMIZATION (Press ESC to stop at end) Increment End% 1 11 1 22 1 33 1 43 1 53 1 63 1 72 1 82 1 91 1 100 discount mode = 1 discount mode = 2 discount mode = 3 discount mode = 4 discount mode = 5 Ex-stock Process MILL MILL MILL MILL MILL MILL MILL MILL MILL MILL 42,467,329 44,522,908 40,475,371 40,475,371 40,476,015 Rocktype ORE ORE ORE ORE ORE ORE ORE ORE ORE ORE Change Change Change Change Change Element Cut-off GOLD 0.0505 GOLD 0.0487 GOLD 0.0468 GOLD 0.0448 GOLD 0.0426 GOLD 0.0402 GOLD 0.0377 GOLD 0.0350 GOLD 0.0320 GOLD 0.0288 is 0.011562% is 0.028909% is 0.028909% is 0.028909% is -0.006383%
is is is is is
Whittle Opti-Cut PERFORM THE OPTIMIZATION Page 2 Rev 1.00 14:51 Licensed for use by <Your company name will appear here> 17-OCT-97 -----------------------------------------------------------------------------ITERATION Period 1 2 3 4 5 6 7 8 9 10 The NPV The NPV The NPV The NPV The NPV 3 OF THE OPTIMIZATION (Press ESC to stop at end) Increment End% 1 11 1 22 1 33 1 43 1 53 1 63 1 72 1 82 1 91 1 100 discount mode = 1 discount mode = 2 discount mode = 3 discount mode = 4 discount mode = 5 Ex-stock Process MILL MILL MILL MILL MILL MILL MILL MILL MILL MILL 42,467,329 44,522,908 40,475,371 40,475,371 40,476,015 Rocktype ORE ORE ORE ORE ORE ORE ORE ORE ORE ORE Change Change Change Change Change Element Cut-off GOLD 0.0505 GOLD 0.0487 GOLD 0.0468 GOLD 0.0448 GOLD 0.0426 GOLD 0.0402 GOLD 0.0377 GOLD 0.0350 GOLD 0.0320 GOLD 0.0288 is 0.000000% is 0.000000% is 0.000000% is 0.000000% is 0.000000%
is is is is is
A Result Binary File was created The run time was 0 hrs 0 mins 12 secs
Note: as the optimization is done using discount mode 1, other discount modes, because they are calculated differently, may occasionally decrease by a small amount when mode 1 increases. This occurs in iteration 2, above, in relation to discount mode 5 (highlighted).
Step 4: Producing the Report using the Print Results Program
Introduction
The Print Results Program must now be run to get details of the mining and processing operations. Note: the program may be run repeatedly, without having to re-run the optimization. In this way you can modify the type of report you require and add or modify spreadsheet output to suit your needs.
Procedure
Start up the Print Results Program (OCPR). It will display a heading similar to the one shown below.
Use the following information in response to the prompts. Prompt Print file name Result Binary File Use Call the print file octut1.prp Accept the default [octut1.rbi] offered by the system Accept the default [Y] for an Opti-Cut report
A report can be produced for marginal (economic) cut-offs or Opti-Cut optimized cut-offs. A report entry can be produced for Accept the default [Y] for interval each interval in the period or for the reporting period total. Spreadsheet output can be produced. Type N Note: although the Print Results Program does not ask for them by name, it uses the Sequence Binary File (octut1.sbi) and the Economics Binary File (octut.ebi), so they must still be present in the working directory.
Step 4: Producing the Report using the Print Results Program, Continued
What you see on the screen looks like the following. Note: we have added the Enter symbol to the following example screens to make it clearer where you press the Enter key. You will not actually see the symbol on the screen when you press the Enter key.
The user is then offered a chance to change the number of decimal places or scale the output for reporting purposes.
The report display formats do not need to be changed for this run, so accept the default answer, N, in response to the question, Do you want to modify any of these values?.
The detailed report is output to the print file, octut1.prp. If possible, please print this report out, as it contains a very wide range of information that we will now discuss in detail. For information about how to print out a print file from the Command Line, refer to page 187.
Preliminary information
The report contains the following preliminary information:

A record of all of the files that were used in the optimization. User descriptions of the sequence and the economics. A detailed listing of the economic parameters that apply for the first period.
Any changes which come into effect in later periods would be detailed in the body of the report. However, there are no such changes in this case. The preliminary information contained in octut1.prp is shown below.
Whittle Opti-Cut PRINT OPTIMIZATION RESULT SUMMARY Page 1 Rev 1.00 14:51 Licensed for use by <Your company name will appear here> 17-OCT-97 -----------------------------------------------------------------------------FILE INFORMATION Result Binary File Sequence Binary File Economic Binary File : octut1.rbi : octut1.sbi : octut1.ebi
Optimization was by period OPTIMIZED CUT-OFFS - DETAILED INTERVAL BASED INFORMATION INITIAL ECONOMIC CONDITIONS Economic values change during the life of the project. All changes will be highlighted at the start of the period to which they apply. ***************************************************************************** Initial Capital 0 Terminal value 0 (resource fully consumed) Cut-Off Mode 1 ***************************************************************************** Economic Parameters for period 1 to the end: ----------------------------------------------------------------------------Period length 12 months | Time Costs 41,667 per month | Discount 10.0 % per year | Mining recovery 1.000 Inflation 0.0 % per year | Mining dilution 1.000 ----------------------------------------------------------------------------Price Sales Cost | Lv in Mining Environmental Product Per unit Per unit | Rock-typ Gnd Cost/Tonne Cost/Tonne ---------------------- | -------- ------------------GOLD 370.00 0.00 | ORE F 1.25 0.00 | WASTE F 1.25 0.00 ----------------------------------------------------------------------------Proc. RockProcessing Percent Threshold Minimum Maximum Method Type Cost/Tonne Element Recovery Linearity Cut-off Cut-off -------- -------- ---------- ------- -------- --------- ------- ------MILL ORE 8.00 GOLD 90.0 N/A N/A N/A ----------------------------------------------------------------------------Throughput limit ROCK 250,000 per month 3,000,000 per year Throughput limit MILL.Q 41,667 per month 500,000 per year ***************************************************************************** Discount Mode 3 All cash flows at the end of the period. ***************************************************************************** Use spreadsheet output if you require more detailed information or want to plot the results
Whittle Opti-Cut PRINT OPTIMIZATION RESULT SUMMARY Page 2 Rev 1.00 14:51 Licensed for use by <Your company name will appear here> 17-OCT-97 -----------------------------------------------------------------------------Sequence details : Opti-Cut, One increment gold example Economic details : OCTUT1 initial example
Note that any throughput limits are shown both per month and per year. The output also contains summaries of the products, rock-types, processing details, throughput limits (and stockpiles if they are used).
Detailed information
The remainder of the print file consists of detailed information about the processing for each interval. The first interval is shown below.
OPTIMIZED CUT-OFFS - DETAILED INTERVAL BASED INFORMATION Metal Strip Optimal Costs and NPV Process Rock Units Process /Feed Element Income Discounted Period Element Input Tonnes Grade Cut-off Cash Flow Cash Flow ============================================================================== 1 Rock 1286326 1.57 -1607908 -1461734 MILL ORE 500000 -4000000 -3636364 GOLD 39241 0.078 0.051 13067163 11879239 Timecost expenditure -500000 -454545 Resource usage Start: 0.00% of increment 1 ---------- ---------365 days Finish: 11.26% of increment 1 6959255 6326596 Limiting factor : MILL
In this case, the interval is also a period, but this may not always be the case. For more information about periods and intervals, see page 71.
First line The first line for a typical interval is explained below.
OPTIMIZED CUT-OFFS - DETAILED INTERVAL BASED INFORMATION Metal Strip Optimal Costs and NPV Process Rock Units Process /Feed Element Income Discounted Period Element Input Tonnes Grade Cut-off Cash Flow Cash Flow ============================================================================== 1 Rock 1286326 1.57 -1607908 -1461734
In this line:
The period number. In this case, period number 1. The category Rock indicates that this line gives figures for all the material mined. The amount of material (ore and waste) mined in the interval. In this case, 1,286,326 tonnes. The stripping ratio (material-not-processed/material-processed). In this case, 1.57. The cost of mining all the material as waste. In this case, 1,607,908. The discounted cost of mining all the material as waste. In this case, 1,461,734.
Second line The second line contains processing-method/rock-type information. It is explained below. If more than one processing-method/rock-type is used, then more than one of these lines will be displayed.
OPTIMIZED CUT-OFFS - DETAILED INTERVAL BASED INFORMATION Metal Strip Optimal Costs and NPV Process Rock Units Process /Feed Element Income Discounted Period Element Input Tonnes Grade Cut-off Cash Flow Cash Flow ============================================================================== 1 Rock 1286326 1.57 -1607908 -1461734 MILL ORE 500000 -4000000 -3636364
In this line:
The processing method. In this case, the processing method is MILL. The rock-type. In this case, ORE. Tonnage milled. In this case, 500,000 tonnes (the mill limit) of this type of rock is fed to this processing method. The cost of processing the material. In this case, the cost of processing ore is 4,000,000. The discounted cost of processing the material. In this case, the discounted cost of processing ore is 3,636,364.
Third line The third line provides details of element production. It is explained below.
OPTIMIZED CUT-OFFS - DETAILED INTERVAL BASED INFORMATION Metal Strip Optimal Costs and NPV Process Rock Units Process /Feed Element Income Discounted Period Element Input Tonnes Grade Cut-off Cash Flow Cash Flow ============================================================================== 1 Rock 1286326 1.57 -1607908 -1461734 MILL ORE 500000 -4000000 -3636364 GOLD 39241 0.078 0.051 13067163 11879239
In this line:
The product. In this case the product is GOLD. If there are other products, then this line is repeated as required. Units of material input into the processing mill. In this case there are 39,241 units of metal input into the processing mill. The average grade of material input into the process. In this case the average grade is 0.078. The Opti-Cut cut-off for the interval. In this case, the Opti-Cut cut-off is 0.051, for this interval. The cash flow associated with this product. In this case, 13,067,163. The discounted cash flow associated with this product. In this case, 11,879,239.
Other lines The output can include details about:

selling costs capital expenditure time costs, and, stockpile additions and deductions.
This information will be located after the element production details, and may occupy several lines. This example, however, only contains time cost information. This information is located in the fourth line, and is explained below.
OPTIMIZED CUT-OFFS - DETAILED INTERVAL BASED INFORMATION Metal Strip Optimal Costs and NPV Process Rock Units Process /Feed Element Income Discounted Period Element Input Tonnes Grade Cut-off Cash Flow Cash Flow ============================================================================== 1 Rock 1286326 1.57 -1607908 -1461734 MILL ORE 500000 -4000000 -3636364 GOLD 39241 0.078 0.051 13067163 11879239 Timecost expenditure -500000 -454545
In the fourth line:
This is an additional expense category. In this case, time cost expenditure. The cash flow associated with this expense. In this case, 500,000. The discounted cash flow. In this case, 454,545.
Totals lines The printout for each interval ends with totals information.
In these lines:
The number of days in this interval. In this case, there were 365 days in this interval. Item limiting production. During this interval, production was limited by the MILL process. It is possible to be limited by more than one item. and Resource/increment usage with the starting and finishing percentage used. The net cash flow associated with this interval. In this case, 6,959,255. The discounted cash flow. In this case, 6,326,596.
Grand totals At the end of the report, the grand total figures appear, together with the mine life in years.
Metal Strip Optimal Costs and NPV Process Rock Units Process /Feed Element Income Discounted Period Element Input Tonnes Grade Cut-off Cash Flow Cash Flow ============================================================================== -----------------------------------------------------------------------------Rock 11420960 1.28 -14276200 -8935944 MILL ORE 4998568 -39988547 -24573853 GOLD 373572 0.075 124399568 77056899 Timecost expenditure -4998568 -3071732 Internal rate of return % N/A ---------- ---------Total number of years 10.00 65136252 40475371
The grand total of the discounted cash flows, given at the bottom right of the printout, is the Net Present Value of the mine. Note that this is the same as the NPV for discount mode 3 (the default mode) on page 200. Note: the internal rate of return is only shown if an initial capital expenditure is specified in the Economics Text File.
Comparison between cut-off scenarios
After the grand totals information, there is a section that compares the Opti-Cut results to those of a standard marginal cut-off evaluation.
NOTE:Comparing the above results with those based on marginal Cut-offs, (Total number of years 10.96, discounted NPV 39666542) shows that the Opti-cut method gives an improvement in NPV of 2.0 % This amounts to an increase in NPV for this project of 808829
In this case the additional discounted cash flow (or NPV) is 808,829, which represents a 2.0% improvement on operating with marginal cut-offs. To look at the marginal cut-offs more fully, you can re-run the Print Results Program and print out the marginal cut-off scenario. This is explored in the following topic.
Step 5: Re-running the Print Results Program to obtain the Marginal Cut-off Scenario
Introduction
To see how the Opti-Cut results compare with the marginal cut-off scenario, you can re-run the Print Results Program and print out the marginal cut-off scenario.
Procedure
Start up the Print Results Program. Use the following information in response to the prompts. Prompt Print file name Result Binary File Opti-Cut report Interval entries Spreadsheet output octut1a Accept the default [octut1.rbi] Type N (you will get the marginal cut-off results) Accept the default [Y] (as before) Type N (as before) Use
Comparison
The cut-offs and the discounted cash flows, for both scenarios, could be plotted against time, using a spreadsheet program. To do this easily, you would have needed to request spreadsheet output in both runs of the Print Results Program (in step 4 and above). However, to keep this tutorial as simple as possible, we got you to request no spreadsheet output. Instead, we have plotted the information for you. Spreadsheet output is explored in Tutorial 2 - Four-D and Four-X Interfaces and Sequence Compaction, starting on page 222.
Step 5: Re-running the Print Results Program to obtain the Marginal Cut-off Scenario, Continued
The following graph shows a comparison between optimized cut-offs and marginal cut-offs.
.06 .05 .04 Cut-off .03 .02 .01 .00 1
Comparison Between Marginal and Optimized Cut-offs
7 Period
11
Optimized cut-offs
Marginal cut-offs
The slight irregularities in the optimized cut-off curve are caused by the round of the cut-offs to 3 decimal places.
Step 5: Re-running the Print Results Program to obtain the Marginal Cut-off Scenario, Continued
The following graph compares discounted cash flows for optimized cut-offs and discounted cash flows for marginal cut-offs.
Comparison Between Discounted Cash Flows

7 Cash flows (millions) 6 5 4 3 2 1 0 1 3 5 7 Period 9 11
Discounted cash flows for optimized cut-offs Discounted cash flows for marginal cut-offs
As can be seen, the Opti-Cut cash flows (shown in millions) are higher for the first 9 years and then fall off. The net result in this case is a 2.0% improvement.
File Summary
Introduction
The following diagrams give a summary of the files used by each of the programs in this tutorial. Input octut1.stx Program Sequence Input Program (OCSE) Output octut1.prs octut1.sbi
octut1.etx (octut1.sbi)
Economics Input Program (OCEC)
octut1.pre octut1.ebi
octut1.ebi (octut1.sbi)
Optimization Program (OCOP)
octut1.pro octut1.rbi
octut1.rbi (octut1.ebi) (octut1.sbi)
Print Results Program (OCPR)
octut1.prp octut1a.prp
(on the re-run of OCPR)
What you have Learnt
What you have learnt
In working through this tutorial, you have:

Learnt how to run four of the programs. Learnt what files are required by the programs. Seen how Opti-Cut takes note of the filenames that you use, and provides
them as defaults, to save you repeatedly re-typing them.

Seen how Opti-Cut can quickly generate a cut-off schedule for the operation
of the mine, with all its tonnages, grades, optimal cut-offs and cash flows.
Important to keep files
Although you have now completed this tutorial, it is important to keep the files that you generated, including the print files, because some of them are used again in the tutorials and exercises that follow.

The programs
The Sequence Input Program, see page 54. The Economics Input Program, see page 66. The Optimization Program, see page 69. The Print Results Program, see page 76. General information, see page 42. Naming files, see page 48. Sequence Text Files, see page 83. Economics Text Files, see page 94. Print files, see page 46. Viewing or printing a print file, see page 187.
Files
Other
- Cut-offs, see page 183. - NPV, see page 263. - Discount mode, see page 74.
Exercise 1 - Automating the Process Overview
Introduction
Tutorial 1 took you through the individual steps involved in an optimization. The programs are broken up in this way because it allows you to change, say, the economics or the spreadsheet codes and only repeat a part of the calculations. This exercise aims to show you how to automate the process, using the Batch Processing Program. The Batch Processing Program (OC) controls the following programs:

Sequence Input Economics Input Optimization, and, Print Results.
It automatically runs the programs in their required order. The Batch Processing Program is discussed in detail, on page 146. Let us assume that you want to see the effect of a change in the time costs for the project. To do this, you merely have to change the time costs information in the Economics Text File and re-run the programs.
In this tutorial
This exercise is divided up into the following topics. Topic Step 1: Copying and Editing the Text Files Step 2: Using the Batch Processing Program File Summary What you have Learnt See Page 217 218 220 221
Step 1: Copying and Editing the Text Files
Introduction
In this exercise we will again be using the text files:

octut1.stx, and, octut1.etx.
To preserve these files, they need to be copied.

Copying the files
If you are unsure about how to copy the files, refer to the following table. Step 1. 2. On a PC At the Command Line, type:
copy octut1.stx exer1.stx
On UNIX At the Command Line, type:

cp octut1.stx exer1.stx
At the Command Line, type:

copy octut1.etx exer1.etx
At the Command Line, type:

cp octut1.etx exer1.etx
Editing the Economics Text File
Now you need to edit the Economics Text File, exer1.etx, and change the time costs, in the line starting with TC, from 500K to 1M. Note: the programs allow you to use K for thousand and M for million. Follow the steps in the table below to edit exer1.etx. Step 1. 2. Action Open and view exer1.etx using a text editor or word processor in pure text mode.
The ninth line in the file is the time costs (TC) line.
Edit the text to read:

TC A 1M
3.
Save exer1.etx and exit from the text editor or word processor.
Step 2: Using the Batch Processing Program
Introduction
To run through all the programs required to get a final printed report we can use the Batch Processing Program.
Procedure
Start up the Batch Processing Program. If you are using:

The Menu, choose the Batch Processing Program from the Menu.
- Then type in:

exer1
and then press the Enter key .

The Command Line, type: oc exer1
and then press the Enter key . The batch procedure requires that all of the files have the same name and use the default extensions.
Step 2: Using the Batch Processing Program, Continued
The detailed report is printed to file exer1.prp. Take the time to examine the report in detail. The first interval is shown below.
The grand totals information and the comparison between the marginal cutoffs and the Opti-Cut cut-offs are shown below.
Metal Strip Optimal Costs and NPV Process Rock Units Process /Feed Element Income Discounted Period Element Input Tonnes Grade Cut-off Cash Flow Cash Flow ============================================================================== -----------------------------------------------------------------------------Rock 11420960 1.33 -14276200 -9008884 MILL ORE 4904791 -39238327 -24284610 GOLD 369486 0.075 123038837 76768787 Timecost expenditure -9809582 -6071153 Internal rate of return % N/A ---------- ---------Total number of years 9.81 59714729 37404139
NOTE:Comparing the above results with those based on marginal Cut-offs, (Total number of years 10.89, discounted NPV 36528158) shows that the Opti-cut method gives an improvement in NPV of 2.4 % This amounts to an increase in NPV for this project of 875981 -----------------------------------------------------------------------------The run time was 0 hrs 0 mins 0 secs
Comparing output: Exercise 1 and Tutorial 1
The output, in exer1.prp, shows a slightly different set of cut-offs from those in Tutorial 1. It also shows an improvement in profit above marginal cut-off evaluation of 875,981. This is a 2.4% improvement. In both cases, Opti-Cut has elevated the cut-offs in the early years, and they move down to the marginal cut-off towards the end of the project. The marginal cut-off for octut1 is 0.027 and for exer1 is 0.030. This information can be found in the Optimization Program print files octut1.pro and exer1.pro.
File Summary
Introduction
The following diagram gives a summary of the files used by each program in this exercise. Because all four programs were run, there will be new output as shown. Input exer1.stx exer1.etx (exer1.sbi) (exer1.ebi) (exer1.rbi) Batch Processing Program (OC) Program Output exer1.prs exer1.sbi exer1.pre exer1.ebi exer1.pro exer1.rbi exer1.prp
In working through this exercise you have:

Learnt how easy it is to edit text files. Seen how the Batch Processing Program can be used to simplify the
interaction, and the generation of output.

Seen how the Opti-Cut time-variable cut-offs will change with changes to
time-costs.

The Batch Processing Program, see page 146. Files
General information, see page 42. Sequence Text Files, see page 83. Economics Text Files, see page 94. Print files, see page 46. Viewing or printing a print file, see page 187.
Other
- Cut-offs, see page 183.
Tutorial 2 - Four-D and Four-X Interfaces and Sequence Compaction Overview
Unless you have already done so, we strongly suggest that you read through the whole Manual before working through the remainder of these tutorials and exercises. If you do not, you may find them hard to follow.
Introduction
The Whittle Four-D and Four-X programs can automatically provide you with a Sequence Text File based on a single economic scenario. fdtut.stx (provided) is the name of a Four-D sequence output.
In this tutorial
This tutorial contains the following topics. Topic Step 1: Producing the Initial Sequence Binary File with the Sequence Input Program Step 2: Producing the Compacted Sequence Binary File with the Compaction Program Step 3: Producing the Economics Binary File using a Log File Step 4: Running the Optimization using a Log File Step 5: Running the Print Results Program with a Log File and Spreadsheet Output What you have Learnt See Page 223 225 227 229 230 234
Step 1: Producing the Initial Sequence Binary File with the Sequence Input Program
Introduction
First you have to convert fdtut.stx to a Sequence Binary File, thus ensuring that it is properly checked and validated.
Procedure
Start up the Sequence Input Program. Use fdtut for all of your responses. Prompt Print file name Sequence Text File Sequence Binary File name fdtut fdtut fdtut Use
The program then starts its run, which takes less than a minute to complete.
Step 1: Producing the Initial Sequence Binary File with the Sequence Input Program, Continued
The print file, fdtut.prs, is very long. If you look at the end of the printed report, you will see a summary of the tonnages and grades for this Sequence file.
****************************************************************************** Summary: Number of increments 181 Average Mining Adj 1.000 Average Processing Adj 1.000 Number of groups 5779 Number of point grades 5779 -----------------------------------------------------------------------------| Total Minimum Average Maximum Rock-Type Tonnage | Element Quantity Grade Grade Grade --------------- | -------------------------WTHR 4,767,840 | GOLD 0 0.000 0.000 0.000 OXID 640,320 | GOLD 64,675 0.037 0.101 0.229 SULF 5,501,520 | GOLD 391,923 0.020 0.071 0.220 WASTE 5,153,760 | Total: 16,063,440 | ****************************************************************************** Number of text lines read 14043
A Sequence Binary File was created The run time was 0 hrs 0 mins 18 secs
In Opti-Cut, throughput limits are applied strictly to each increment within each period, and this sequence is made up of 181 increments. If the project had a duration of 5 years, then you would have, on average, 20 increments per period and therefore 20 intervals in which throughput limits were applied per period, each possibly with a different stripping ratio. In practice, normal short-term scheduling would allow these stripping ratios to be evened out over longer time periods. The data would therefore be better compacted into increments of, say, 4 million tonnes so that only one or two increments are active in each period.
Step 2: Producing the Compacted Sequence Binary File with the Compaction Program
Introduction
Because the Four-D file is generated block by block, it is better to compact it to provide a time-efficient sequence description for Opti-Cut.
Procedure
Start up the Compaction Program. Call the new compacted Sequence Binary File, octut2. Use the following information in response to the prompts. Prompt Print file name 1. Sequence Text File 2. Sequence Binary File Sequence Binary File name New Sequence Binary File name octut2 Accept the default [2] Accept the default [fdtut.sbi] octut2 Use
In this case, we wish to compact:

the increment tonnages to make bigger increments, and, the grade information because of the high number of point grades.
Use the following information in response to the prompts. Prompt Compact the increment information? Desired increment tonnage Compact the grade information? Use Accept the default [Y] 4m (m is million) Accept the default [Y]
Step 2: Producing the Compacted Sequence Binary File with the Compaction Program, Continued
The computer system reviews the grade range for each element and offers a suitable tolerance based on the grade discrimination specified in the Sequence file (defined as the number of decimal places in the EL line). However, because of the high number of point grades, and the fact that the Compaction Program uses a grade range and a weighted average to define grouped items, you can use a coarser discrimination without actually losing very much information. Use the following grade discrimination. Prompt Grade discrimination 0.01 Use
The original Sequence Binary File is checked and then reorganised into the increment and grade ranges specified. The new file is written out.
Step 3: Producing the Economics Binary File using a Log File
Introduction
When evaluating a project, it is very common to want to do a re-run with variations in the economic values. You may wish to set up a series of economic scenarios and run them one after another. Different scenarios can share the same Sequence file. You can log your keyboard responses to a log file which you can then edit and replay as required. This is explored below. octut2.etx (provided) needs to be converted to an Economics Binary File.
Procedure
Start the Economics Input Program. However, as we want to use a log file, enter a logging command instead of a print file name as the first response. Use the following information in response to the prompts. Prompt Print file name Use !LOG octut2.loe This can be shortened to: !L octut2 This tells the program to start logging your responses and to ask for the name of the print file again. Now, type in the following information in response to the prompts. Prompt Print file name Sequence Binary File name Economics Text File name #octut2 Accept the default [octut2.sbi] octut2 Use
Economics Binary File name #octut2 The # symbol is used to automatically overwrite an existing file. This is good practice for output files if you wish to re-run the log files.
Step 3: Producing the Economics Binary File using a Log File, Continued
Examining the log file
The log file, octut2.loe, contains a list of abbreviated prompts and your responses.
PrintFile SequenceBinaryFile EconomicsTextFile EconomicsBinaryFile #octut2 octut2 octut2 #octut2
The run can be repeated exactly, by starting up the Economics Input Program and then entering !use octut2.loe. Again, this can be shortened to !u octut2. Indeed, if you want to re-run the same log file that you ran with a program the last time, even if you have edited it in between, !u is sufficient, because Opti-Cut remembers log filenames as well. This makes it very easy to re-run programs.
Step 4: Running the Optimization using a Log File
Introduction
Again we can use the logging to allow faster repeat runs, or to set up log files for an overnight run.
Procedure
Start the Optimization Program.

As you did in step 3, enter the logging command instead of a print file name.
!L octut2 tells the program to start logging your responses and to ask for the name of the print file again. Note: the default log file extension for optimization is loo.
Then use the following information in response to the prompts.
Prompt Print file name #octut2
Use
Economics Binary File name Accept the default [octut2.ebi] #octut2 Result Binary File name Optimize by period? Accept the default [Y]
Step 5: Running the Print Results Program with a Log File and Spreadsheet Output
Introduction
Opti-Cut provides a reasonable report of the results. However, many users want to plot results or know more detailed information about ore, process and production details than can be included in a fixed report layout. Many of these extra values are calculated within the Print Results Program and are available in a Spreadsheet Output File, in formats that are suitable for input to most spreadsheet programs. There are two files involved in this:
The Spreadsheet Definition File. The Spreadsheet Output File.
The Spreadsheet Definition File
The Spreadsheet Definition File is a small text file that lists the particular items that you want to output. The Spreadsheet Definition File used in this tutorial is called octut2.ssd. It contains the following lines of text.
! Interval (intersection of period and increment) codes Int Period strip MILL.OXID.GOLD/CO Rock/tg Mill/ti INT VALUE/CD MILL.GOLD/UO ! Grand total codes ! Note that "blank" can be used to space out the columns so that the equivalent ! columns from the 'int' (or 'per') line up with their respective totals. Gra Blank strip Blank Rock/tg Mill/ti GRA VALUE/CD MILL.GOLD/UO
Step 5: Running the Print Results Program with a Log File and Spreadsheet Output, Continued
In this file:
Lines beginning with ! are comment lines. Any further information on the
line is ignored by the program.

Int indicates that the remaining codes on the line refer to interval amounts. Period indicates that we want to output the period number. Strip indicates that we want to output the stripping ratio. Mill.oxid.gold/co indicates that we want to output the cut-offs for
the oxide ore to be sent to the mill.

Rock/TG indicates that we want to output the total tonnes mined. Mill/TI indicates that we want to output the total tonnes input to the
process.
Value/cd indicates that we want to output the NPV of the project cash
flows.
Mill.gold/uo indicates that we want to output the gold production from
the mill.
The items in the GRA lines are similar but apply to grand totals rather than
intervals. The item, Blank, has the effect of leaving a blank column in the output. This can be useful to maintain continuity between interval, period and grand total data. As you can see, the codes can be in upper case and/or lower case, or a mixture of both. There are many other codes that we could have used. See page 120 for details of these codes.
The Spreadsheet Output File contains the output itself. It can be:
viewed on the screen printed out, or, input to a spreadsheet program.
An explanation of spreadsheet files starts on page 132, and a detailed description of the output formats available starts on page 134.
Procedure
Start the Print Results Program and enter the logging command instead of a print file name, as you did in steps 3 and 4. The default log file extension for the Print Results Program is lop. Then use the following information in response to the prompts. Prompt Print file name Result Binary File name Opti-Cut report Interval entries Spreadsheet output Spreadsheet Definition File name Spreadsheet Output File name Modify number of decimal places? The run is very quick.
Use #octut2 Accept the default [octut2.rbi] Accept the default [Y] Accept the default [Y] Accept the default [Y] octut2 #octut2 Accept the default [N]
Examining the spreadsheet output
Now take the time to examine the Spreadsheet Output File, octut2.sso.
The Spreadsheet Output File (octut2.sso) should look like the following.
Sequence : Produced by FDAN from best case scheduling of pit 27 Filename : octut2.sbi Economics: OCTUT2 - created from Four-D Tutorial 1 Filename : octut2.ebi Intervals: MILL OXID GOLD /CO 0 0.052 0.049 0.047 0.047 0.044 0.042 0.042 0.000 0.000 0.000 0.000 0.000
Period 0 1 2 3 3 4 5 5 6 7 7 8 8 Grand totals:
strip 0 1.65 1.57 1.51 1.42 1.36 1.32 1.51 1.47 1.43 3.02 3.02 0
Rock /tg 0 1989903 1929552 43025 1774025 1771249 440806 1405785 1854854 755280 1755699 2313021 30240
Mill /ti 0 750000 750000 17118 732882 750000 189946 560054 750000 311075 436374 575540 30240
VALUE /CD -18900000 12150343 10826542 220994 6991123 6398566 1454767 4150637 4994737 1853257 2161138 2588409 240549
MILL GOLD /UO 0 62794 61840 1394 48315 48877 12272 35934 47749 19599 27540 36296 2204
Blank 0
strip 1.74
Blank 0
Rock /tg 16063440
Mill /ti 5853229
VALUE /CD 35131060
MILL GOLD /UO 404815
The spreadsheet file shows the Sequence and Economics descriptions and then prints details for each of the intervals. Note the use of the BLANK spreadsheet code to maintain column alignment when there is not an equivalent grand total code. Note also that we could have chosen to report by period rather than by interval (period/increment combination).
In working through this tutorial, you have:

Seen how Sequence Binary Files can be compacted. Learnt how to use log files. Seen how spreadsheet output can greatly facilitate work with Opti-Cut.

The programs
The Sequence Input Program, see page 54. The Compaction Program, see page 60. The Economics Input Program, see page 66. The Optimization Program, see page 69. The Print Results Program, see page 76. General information, see page 42. Sequence Text Files, see page 83. Economics Text Files, see page 94. Print files, see page 46. Log files, see page 141. Spreadsheet Definition Files, see page 117. Spreadsheet Output Files, see page 132. Viewing or printing a print file, see page 187.
Files
Exercise 2 - Varying the Compaction
Introduction
In Tutorial 2 you used compaction to reduce:

The number of increments.
You reduced the number of increments to give more realistic grouping of the mining units.
The number of groups.
You reduced the number of groups to reduce the optimization time. Clearly, if we combine the point grade groups into sets with a width equal to the required grade discrimination of 0.001, it cannot have any significant effect on the result. However, we suggested gathering the point grade groups into grade ranges which were 0.01 wide, ten times the required grade discrimination. Is that too much, or can we go further? In this exercise you will repeat Tutorial 2, but will make the following changes.
Exercise 2a
For the purposes of this exercise, compact the increments, but do not compact the point grades. First copy octut2.etx to exer2a.etx. Then run the Compaction Program using:
fdtut.sbi as the input Sequence Binary File, and, exer2a.sbi as the name for the output, compacted Sequence Binary File.
Next, use the Batch Processing Program to run through the remaining programs to get a final printed report.
Exercise 2b
For the purposes of this exercise, compact the increments, and use a compaction width of 0.05 for the point grades. First copy octut2.etx to exer2b.etx. Then run the Compaction Program using:
fdtut.sbi as the input Sequence Binary File, and, exer2b.sbi as the name for the output, compacted Sequence Binary File.
Next, use the Batch Processing Program to run through the remaining programs to get a final printed report.
Exercise 2 - Re-running Tutorial 2 and Varying the Compaction, Continued

Examining the print files
Examine the print files from Exercise 2a and 2b to find the optimization times and the cut-off and NPV results. Using these, together with the results from Tutorial 2, draw your own conclusions about compaction.

The programs
- The Compaction Program, see page 60. - The Batch Processing Program, see page 146.
Files
Copying files, see page 217. General information, see page 42. Print files, see page 46. Spreadsheet Definition Files, see page 117. Spreadsheet Output Files, see page 132. Viewing or printing a print file, see page 187.
Other
- NPV, see page 262. - Cut-offs, see page 183.
Tutorial 3 - Using a Stockpile Overview
Introduction
Having successfully compacted the Sequence file, run the optimization and produced the report the next question is, will a stockpile improve this project?
In this tutorial
This tutorial contains the following topics. Topic Step 1: Copying and Editing Files Step 2: Using the Batch Processing Program Step 3: Doing a Cash Flow Analysis What you have Learnt See Page 238 240 242 245
Step 1: Copying and Editing Files
Introduction
To find out whether a stockpile will improve this project you need to add stockpile information to the Economics Text File.
Copying files
To preserve the tutorial information, copy:

octut2.sbi to octut3.sbi, and octut2.etx to octut3.etx.
Stockpile information
The mine in this project contains two types of rock from which we want to extract the product, GOLD, namely,
Oxide ore (rock-type code OXID), and, Sulphide ore (rock-type code SULF).
Each type of rock should be assigned a stockpile. The Opti-Cut cut-offs for these types of rock vary from approximately 0.052 to 0.026. This would suggest that stockpiling intermediate grades above, say, 0.025 could be beneficial.
Step 1: Copying and Editing Files, Continued
Add the following lines to end of the Economics Text File (octut3.etx) to add an OXID stockpile and a SULF stockpile.
MF S 0 SP OXID 0 .5 SPD GOLD R 100 SPD GOLD I .025 SP SULF 0 .5 SPD GOLD R 100 SPD GOLD I .025
In this example:
MF S 0
- MF S refers to the Global Mining Stockpile Factors Line. - 0 indicates that in this case, stockpile usage is included in the rock throughput limit.
SP OXID 0 .5, and SP SULF 0 .5
- SP refers to the Stockpile Line. - 0 indicates that there is no initial stockpile, in relation to both OXID and SULF. - .5 indicates that the re-handling costs are set at 50 cents per tonne, in relation to both OXID and SULF.
SPD GOLD R 100
- SPD refers to the Stockpile Detail Line. - GOLD R 100 indicates that the product, GOLD, will not be adversely affected by exposure, and so 100 percent recovery (R) is possible. That is, the mill recovery, when processing material from the stockpile, is the same as if it was material directly from the mine.
SPD GOLD I .025
- SPD refers to the Stockpile Detail Line. - GOLD I .025 indicates that minimum cut-off for the element, GOLD, is set at 0.025. Since there is no other stockpile for this ore type, there is no need to set the maximum cut-off.
Step 2: Using the Batch Processing Program
Introduction
To run all the programs required to get a final printed report we can use the Batch Processing Program. Start the Batch Processing Program, using the filename octut3. If necessary, refer to page 218 for instructions. The programs will take several minutes to run.
Procedure
The results are located in the print file, octut3.prp. The grand totals information and the comparison between the NPV for the marginal cut-offs and the Opti-Cut cut-offs (located at the end of octut3.prp) are shown below. Tutorial 3 Results
Metal Strip Optimal Costs and NPV Process Rock Units Process /Feed Element Income Discounted Period Element Input Tonnes Grade Cut-off Cash Flow Cash Flow ============================================================================== -----------------------------------------------------------------------------Rock 16063440 2.49 -20079300 -14536776 MILL OXID 640320 -6979488 -5563735 GOLD 64675 0.101 22733265 18966839 MILL SULF 5486291 -43890326 -28349473 GOLD 391579 0.071 130395670 87856950 Stockpile additions 1530343 Stockpile deductions 1530343 -765171 -369294 Timecost expenditure -4087815 -2704705 Total capital expenditure -18900000 -18900000 Internal rate of return % 67.47 ---------- ---------Total number of years 8.18 58426835 36399805
NOTE:Comparing the above results with those based on marginal Cut-offs, (Total number of years 8.17, discounted NPV 34734180) shows that the Opti-cut method gives an improvement in NPV of 4.8 % This amounts to an increase in NPV for this project of 1665626 ------------------------------------------------------------------------------
Step 2: Using the Batch Processing Program, Continued
Compare with Tutorial 2 results, located in print file, octut2.prp. Tutorial 2 Results
Metal Strip Optimal Costs and NPV Process Rock Units Process /Feed Element Income Discounted Period Element Input Tonnes Grade Cut-off Cash Flow Cash Flow ============================================================================== Rock 16063440 1.74 -20079300 -13192400 MILL OXID 611980 -6670584 -5778685 GOLD 63429 0.104 22295307 19321182 MILL SULF 5241249 -41929989 -27219610 GOLD 382842 0.073 127486271 83524028 Timecost expenditure -3905664 -2623454 Total capital expenditure -18900000 -18900000 Internal rate of return % 60.63 ---------- ---------Total number of years 7.81 58296042 35131060
Comparing the reports shows that:

The stockpiles were processed after all the resource was consumed (see
increment 7, octut3.prp).
An additional 273,382 tonnes were processed.
That is, (Tutorial 3 Total Mill) MINUS (Tutorial 2 Total Mill). (640,320 + 5,486,291) - (611,980 + 5,241,249) = 273,382.
There was a $1,268,745 increase in NPV.
That is, (Tutorial 3 Total NPV) MINUS (Tutorial 2 Total NPV). 36,399,805 - 35,131,060 = 1,268,745. With a 3.7% improvement in project NPV, the stockpile option would have to be seriously considered.
The stockpile option allows the cut-offs to be raised higher at the start of the
project, since the material is not lost, and produces higher cash flows at the start of the project.
The stockpile usage lasts 2.04 years.
See increments 7 (end), 8 and 9 in octut3.prp.

The project length, 8.18 years, is then only a little more than one based on
marginal cut-offs (8.17 years).
Step 3: Doing a Cash Flow Analysis
Introduction
The cut-offs and discounted cash flows can be plotted for the Opti-Cut results as well as for marginal cut-off results. Re-run the Print Results Program, sending the output to octut3a, to obtain the marginal cut-off results. Plot the results from octut3 and octut3a using a spreadsheet program.
Procedure
Sulphide ore cut-offs
A comparison between optimized cut-offs and marginal cut-offs for sulphide ore is shown below.
Comparison Between Optimized and Marginal Cut-offs

.07 .06 .05 Cut-offs .04 .03 .02 .01 .00 1 3 5 Period Optimized cut-offs Marginal cut-offs 7 9
From the graph, it can be seen that:

There is a substantial drop in optimized cut-offs around period four. This is
because the Opti-Cut scenario is mill limited for the first four years. In years five, six and seven, the rock limit comes into play, which causes the cut-offs to drop in an attempt to maintain mill feed.
Years eight and nine are occupied entirely with stockpile consumption, so a
cut-off is not displayed.

The marginal cut-off scenario has the same rock limit in the eighth and ninth
years.
Step 3: Doing a Cash Flow Analysis, Continued
Annual rock tonnages
A plot of the annual rock tonnages (in millions) shows the peak usage for both the optimized and marginal cut-off scenarios.
Comparison Between Rock Tonnages

3.5 Rock tonnage (millions) 3.0 2.5 2.0 1.5 1.0 0.5 0.0 1 2 3 4 5 Period 6 7 8 9
Rock tonnages for optimized cut-offs Rock tonnages for marginal cut-offs
As can be seen, there has been spare rock capacity in the first five years of the project. If this could have been used to perform some pre-stripping for period 6, then the rock limit could have been avoided, with consequent better grades through the mill and an increased cash flow. Exercise 3, below, will explore ways of achieving this.
Step 3: Doing a Cash Flow Analysis, Continued
Discounted cash flow
A comparison of the discounted cash flows for optimized cut-offs and marginal cut-offs is shown below.
Comparison Between Discounted Cash Flows

16 14 Cash flows (millions) 12 10 8 6 4 2 0 0 2 4 Period 6 8 10
Discounted cash flows for optimized cut-offs Discounted cash flows for marginal cut-offs
The Opti-Cut stockpile scenario has created a mine life of a similar length to the marginal cut-off scenario. However, this graph clearly shows that the higher cash flows at the start of the project have more than compensated for the reduction in cash flows at the end of the project.
In this tutorial you have learnt how to apply a simple stockpile simulation and see if there is an increased NPV. In this tutorial re-handling costs were included. However, in a practical situation the increase in NPV has to be weighed against the availability of a stockpile area and costs of providing the facility.

Copying files, see page 217. General information, see page 42. Economics Text Files, see page 94. Print files, see page 46. Viewing or printing a print file, see page 187.
Other
- Stockpiles, see page 173. - NPV, see page 262.
Exercise 3 - Adjusting Throughput Overview
Introduction
In Tutorial 3 we found that the project was limited by the mining throughput limit in period 6. Two methods of lessening the impact of the mining throughput limit are explored below.
In this exercise
This exercise is divided up into the following topics. Topic Exercise 3a - Making Stockpile Usage Independent of Rock Limit Exercise 3b - Altering the Mining Throughput Limit See Page 247 248
Exercise 3a - Making Stockpile Usage Independent of Rock Limit
Introduction
It was mentioned that the stockpile may, or may not, impact on the mining throughput limit. If the stockpile is independent of this limit, then additional stockpile material may be used in periods 6 and 7, when the plant is rock limited.
Procedure
Copy:
- octut3.sbi to exer3a.sbi, and, - octut3.etx to exer3a.etx.

Edit the Economics Text File (exer3a.etx) and change the mining factor
stockpile code from MF S 0 to MF S 1. Note: - MF S 0 is used for the case where the stockpile usage is included in the rock throughput limit. - MF S 1 is used for the case where stockpile usage is independent of the rock limit.
Run the Batch Processing Program.
Is there much advantage to be gained here? If you run this example you will find that the stockpile is used to make up the mill capacity. This gives a further 0.2% improvement in NPV.
Exercise 3b - Altering the Mining Throughput Limit
Introduction
The rock throughput limit was not exceeded in the first 5 years of operation and there may have been spare truck capacity to do pre-stripping during this time. Rather than create a new Sequence file that reflects this pre-stripping, you can alter the mining throughput limits to cope with this, if you feel it applies to your situation.
Procedure
Copy:
- octut3.sbi to exer3b.sbi, and, - octut3.etx to exer3b.etx.

Edit the Economics Text File (exer3b.etx) and change the rock
throughput limit to: TL ROCK A 3M P6/4M Where: TL ROCK A 3M 6/4M is the Throughput Limit Line. is the total amount of material mined. indicates that throughput limits are per annum. indicates that the throughput limit is 3 million until period 6 (year 6) when it becomes 4 million, and remains at 4 million thereafter.
Run the Batch Processing Program. Continued on next page
Exercise 3b - Altering the Mining Throughput Limit, Continued
Examining the print files
Examine the print files (exer3a.prp and exer3b.prp) and compare the results of the two alternatives.

Other
- Stockpiles, see page 173. - NPV, see page 262. - Processing throughput factors, see page 179.
Tutorial 4 - Multi-element Deposits Overview
Introduction
Until now, all examples have been based on single element deposits. One of the things that Opti-Cut handles very well is multi-element deposits. Data can be entered into the Sequence Text File in a variety of ways to simulate real situations. One typical situation, at the initial evaluation stage, is to take tabulated drilling information. The following table shows the tonnage and average copper and molybdenum grades at various grade intervals.
Molybdenum (%) 0.00-0.025 0.025-0.050 0.050-0.075 0.075-0.100 3,530,882
Background
Copper (%) 0.00-0.10 0.10-0.20 0.20-0.30 0.30-0.40 0.40-0.50 0.50-0.60 0.60-0.70 0.70+
* T C M T C M T C M T C M T C M T C M T C M T C M
0.100+
393,047 .1255 .0166 681,207 .2501 .0115 1,192,161 .3413 .0126 543,456 .4529 .0062 481,906 .5516 .0124 371,244 .6476 .0133
319,877 .1648 .0323 494,463 .2589 .0290 621,113 .3239 .0419 247,007 .4574 .0358 306,961 .5650 .0384 275,364 .6303 .0294
228,856 .1583 .0607 310,102 .2530 .0639 408,209 .3617 .0604 77,359 .4578 .0563 202,690 .5453 .0679 230,834 .6547 .0638 2,511,126 1.0241 .0592
135,482 .1886 .0881 215,195 .2291 .0900 134,212 .3565 .0906 57,327 .4669 .0877 105,853 .5614 .0849 88,653 .6521 .0851
57,983 .1408 .1157 27,485 .2561 .1222 30,440 .3698 .1402 30,894 .4558 .1150 86,051 .5738 .1520 91,176 .6387 .1231
* T=tonnes, C=average copper % grade, M=average molybdenum % grade

Overview, Continued
This data can be entered into the Sequence file using a group for each cell and using either ranged or point grades as appropriate. The file octut4.stx contains this information. The file octut4.etx contains the economic scenario. In particular, it contains information about:

the mining, treatment and marketing costs plant capacity product recovery copper and molybdenum prices, and, fixed costs.
Note: because the grades have been entered as percentage grades, the prices and selling costs have been divided by 100 to bring them into line. It would probably be clearer to enter actual physical grades and use actual prices. The point is that, as long as the units are consistent, Opti-Cut can handle them.
Procedure and Discussion
Procedure
Run the Batch Processing Program either from the Menu or from the Command Line. Use the project name octut4. The output is contained in octut4.prp. The grand totals information is shown below.
Metal Strip Optimal Costs and NPV Process Rock Units Process /Feed Element Income Discounted Period Element Input Tonnes Grade Cut-off Cash Flow Cash Flow -----------------------------------------------------------------------------Rock 14488615 1.19 -15357932 -8732172 MILL ORE 6614164 -23281858 -12461064 CU 4539482 0.686 62349782 34388185 MO 364684 0.055 20301986 11084652 Selling costs -2644736 -1457420 Timecost expenditure -6966920 -3728879 Internal rate of return % N/A ---------- ---------Total number of years 8.82 34400322 19093303
As can be seen, there is a substantial benefit, in economic terms, in using the optimized cut-offs. The project duration has been substantially shortened. The copper percentage cut-off grades range from 0.623 to 0.364 during the life of the mine, while the molybdenum cut-offs range from 0.150 to 0.087.
Procedure and Discussion, Continued
What material should be passed to the MILL?
What material should be passed to the MILL? Let us look at the details for the first period, as an example.
OPTIMIZED CUT-OFFS - DETAILED INTERVAL BASED INFORMATION Metal Strip Optimal Costs and NPV Process Rock Units Process /Feed Element Income Discounted Period Element Input Tonnes Grade Cut-off Cash Flow Cash Flow ============================================================================== 1 Rock 2129732 1.84 -2257516 -1963058 MILL ORE 750000 -2640000 -2295652 CU 586689 0.782 0.623 8058176 7007109 MO 44258 0.059 0.150 2463862 2142489 Selling costs -340035 -295682 Timecost expenditure -790000 -686957 Resource usage Start: 0.00% of increment 1 ---------- ---------365 days Finish: 14.70% of increment 1 4494487 3908249 Limiting factor : MILL
If we have material containing only copper, then in the first period, if the
grade is greater than 0.623%, it would go to the MILL.

Similarly, material containing only molybdenum with a grade greater than
0.15% would be accepted.

Material containing both elements can be treated on an equivalent metal
basis and be accepted or rejected, based on either the copper or molybdenum cut-off.
Equivalent metal
The equivalent metal is calculated as follows: Copper equivalent grade
Cu Cuequiv = Cugrade + Mograde x co Moco
Molybdenum equivalent grade
Moco Moequiv = Mograde + Cugrade x Cuco
Where co means cut-off. Thus, for the first period:

Material is accepted if the copper equivalent grade is greater than the copper
cut-off of 0.623%. - Alternatively Material is accepted if the molybdenum equivalent grade is greater than the
molybdenum cut-off of 0.15%. This can be displayed graphically where all material with grades to the right of the sloping line is processed.
0.15
Molybdenum
Copper
0.623

General information, see page 42. Sequence Text Files, see page 83. Economics Text Files, see page 94. Print files, see page 46. Viewing or printing a print file, see page 187.
Other
- NPV, see page 262.
Exercise 4 - Multi-element Stockpiles Overview
Introduction
In Tutorial 4, the first pass through the data showed that cut-off grade optimization achieved a satisfactory improvement in NPV, however, the mine life was shortened. This may or may not present a problem, depending on other opportunities and uses for the plant and/or infrastructure. It is, however, worthwhile investigating what would happen with one or more stockpiles.
Options
This exercise investigates the following three alternatives:

The use of a single stockpile containing all material above the marginal cut-
off of the principal element.

The use of the copper cut-off grade to separate the stock into two or three
piles giving a low/high or low/medium/high structure.

Since this is a multi-element deposit you could control both elements and
have two, three or four stockpiles. The question is whether the increase in NPV outweighs the additional costs of grade control and stockpile management. Note: in a multi-element situation selection for processes, such as the mill, is based on the combined values of the element 1 and element 2 produced. However, when selecting material for stockpiles, Opti-Cut can only use cut-offs which both apply individually, so it is necessary to break the stockpiles into grade ranges for one element and a series of stepped values for the other in order to approximate the sloping line of the mill cut-off.
In this Exercise
This exercise contains the following topics. Topic Exercise 4a: Single Stockpile Exercise 4b: Multiple Stockpiles Exercise 4c: Using Both Elements to Control Stockpiles See Page 257 259 260
Exercise 4a: Single Stockpile
Introduction
Let us start with the simplest case of a single stockpile containing all material above the marginal cut-off of the principal element.
Copying the files

octut4.sbi to exer4a.sbi, and, octut4.etx to exer4a.etx.
Upon examining the print report (octut4.prp), it can be seen that the copper cut-off varies from 0.62 to 0.36. This would suggest that stockpiling intermediate grades above, say, 0.40 could be beneficial. To add a stockpile, add the following lines to the Economics Text File, exer4a.etx.
MF S 0 SP ORE SPD CU SPD MO SPD CU 0 R R I .15 100 100 .40
From the Economics Text File it can be seen that:

There is no initial stockpile (Stockpile Line). Re-handling costs are set at 15 cents per tonne (Stockpile Line). It is assumed that the material will not be adversely affected by exposure and
so 100 percent recovery is possible (Stockpile Detail Line).

The element minimum cut-off is set to 0.40, and since there is no other
stockpile, there is no need to set the maximum cut-off (Stockpile Detail Line).
Another assumption that is important is whether the stockpile handling is
independent of the mining throughput limit, or whether the stockpile handling uses up some of the mining handling resources. This is controlled by the Global Mining Stockpile Factors Line. At this stage, we will assume that it is included in the mining handling.
Exercise 4a: Single Stockpile, Continued
Procedure
Next, run the Batch Processing Program. The programs will take several minutes to run.
Examining the report output will show that:

The stockpile was processed after all the resource was consumed. An additional 113,798 tonnes were processed for a 525,761 increase in NPV. The stockpile added about two months to the life of the project.
Exercise 4b: Multiple Stockpiles
Introduction
Now we will look at the second alternative, namely where the copper cut-off grade is used to separate the stock into two or three piles, giving a low/high or low/medium/high structure.
Copying the files

octut4.sbi to exer4b.sbi, and, octut4.etx to exer4b.etx.
Edit the Economics Text File by adding the following lines.
MF S 0 SP ORE SPD CU SPD MO SPD CU SPD CU SP ORE SPD CU SPD MO SPD CU SPD CU SP ORE SPD CU SPD MO SPD CU 0 R R I A 0 R R I A 0 R R I .15 100 100 .40 .50 .15 100 100 .50 .60 .15 100 100 .60
Procedure
Run the Batch Processing Program. Examine the print file.
Exercise 4c: Using Both Elements to Control Stockpiles
Introduction
The third option is to control both elements.
Copying the files

octut4.sbi to exer4c.sbi, and, octut4.etx to exer4c.etx.
Edit the Economics Text File by adding the following lines.
MF S 0 SP ORE SPD CU SPD MO SPD CU SP ORE SPD CU SPD MO SPD CU SPD CU SPD MO SP ORE SPD CU SPD MO SPD CU SPD CU SPD MO 0 R R I 0 R R I A I 0 R R I A I .15 100 100 .35 .15 100 100 .20 .35 .02 .15 100 100 .00 .20 .06
The following diagram illustrates the relationship between the lowest mill cutoff without stockpiles (the sloping line) and the proposed stockpile limits.
0.10 0.087 0.08
SP_3
Molybdenum
0.06
SP_2
0.04
SP_1
0.02
0.00 0.0
0.1
0.2
0.3 0.3640.4
0.5
Copper
Exercise 4c: Using Both Elements to Control Stockpiles,

Continued
Procedure
Run the Batch Processing Program. Examine the print file.

Other
- Stockpiles, see page 173.
Appendices Overview
In this part
This part contains the following appendices. Appendix Appendix A: NPV, Discount Rate and Inflation Appendix B: How the Optimization is Achieved Appendix C: Program Limits Appendix D: Error Messages Appendix E: Requests for Program Enhancement See Page 262 263 268 269 274
262 Glossary 28 April, 1998
Appendix A: NPV, Discount Rate and Inflation
NPV
Opti-Cut searches for an optimal resource usage based on an initial NPV (Net Present Value) and then iterates the solution to find the overall best NPV. Calculating NPV A projects NPV is found by deducting the initial cash outlay from the present value of all future net cash inflows. The present value of a future net cash inflow is obtained by discounting at the required discount rate. Thus, NPV is given by:
NPV
Where C Rt n k
Rt C t t =1 (1+ k )
= the initial (or capital) cash outlay for the project. = annual net cash inflows generated by the project, in period t. = the life of the project. = the discount rate.
This formula assumes that all cash flows occur at the end of the year. See Discount modes on page 74. Discount rate The discount rate should include two factors:
the real money rate
- and a factor for risk.
When deciding on a discount rate for the calculation of NPV, do not include an allowance for inflation. In financial terms, you should use the real rather than the notional discount rate.
Inflation
The inflation rate factor is only used to inflate cash flows to expected future dollars at the reporting stage (that is, when the Print Results Program is run). All costs must be entered in todays dollars (see page 154 for more information).
Appendix B: How the Optimization is Achieved Overview
Introduction
There are a number of different techniques involved in optimizing cut-offs. These techniques are explained in this Appendix.
In this section
This section contains the following topics. Topic Special Costs The Steps Involved in Optimization See Page 265 268
Special Costs
Introduction
In his book, The Economic Definition of Ore: Cut-off Grades in Theory and Practice, Lane explains that there are four types of costs: 1. Cash costs which are proportional to quantities mined and processed. Example: fuel costs. 2. Cash costs which are proportional to time. Example: site maintenance costs. 3. A pseudo cost which we call the delay cost. 4. A pseudo cost which we call the change cost. The two pseudo costs behave like time costs. That is, they are proportional to the time taken, rather than to the amount mined or processed. These costs are called pseudo costs because they never appear in any accounts. Nonetheless, they have an important influence on cut-offs.
Mining Journal Books Limited, London, 1988. 265 Glossary 28 April, 1998
Special Costs, Continued
Delay costs
Delay costs occur when the mining of the remaining resource is delayed, causing the NPV to be reduced. Example Consider a scenario where we have a resource consisting of ten million tonnes of ore and waste. We have fixed the way that we are going to exploit the last nine million tonnes of the resource, and hence the consequent cash flows in today's dollars. However, we are considering two different methods of exploiting the first million tonnes, namely:
Method A. Method B.
If Method B takes six months longer than Method A, then, in addition to having a different cash flow from A, it will also delay all the cash flows from the exploitation of the last nine million tonnes by an extra six months. That is, the exploitation of the last nine million tonnes starts six months later if we choose Method B. If the discount rate is 12 percent (1 percent per month), the Net Present Value of the last nine million tonnes will be decreased by about six percent (because of the 6 month delay). There is therefore an effective cost of one percent of the NPV of the last nine million tonnes for every month that we spend exploiting the first million tonnes. Since the delay cost depends on the time taken rather than on the tonnes exploited, it is a type of time cost and it is called the delay cost. If we wish to maximize the NPV of our project, we must allow for the delay cost when making decisions, even though it never appears in any accounts.
Special Costs, Continued
Change costs
Change costs arise when delay causes mining to occur when economic conditions are different, thus changing the cash flow. Example Cash flows are higher if we exploit our resource when the price of the product is high. Conversely, cash flows are lower if we exploit our resource when the price of the product is low. Thus, using the previous example, if we delay the exploitation of the last nine million tonnes to a period of lower prices, we reduce the cash flows for the nine million tonnes, and hence the NPV of this nine million tonnes. Since this effect will generally get bigger with increasing delay, we again treat it a type of time cost, and we call it the change cost. It is different from all other time costs because, if the price of the product increases with time, it can be negative. That is, it can be advantageous to delay part of the project. Note: if the economic circumstances are constant, the change cost is zero.
Mill limited project
If the project is mill limited, both the delay and the change costs should be added to the processing cost when calculating the cut-off. Consequently:
The delay cost, which is always positive, increases the cut-off. The change cost can increase or decrease the cut-off, depending on whether
the economic circumstances are deteriorating or improving, respectively. As the resource is used up, the NPV of the remainder of the resource tends to fall, and is zero when no further resource remains. Since both the delay and the change costs are dependent on the remaining NPV, they too tend to fall. In general, therefore, optimized cut-offs start high and progressively decrease throughout the life of the project.
The Steps Involved in Optimization
Introduction
Simultaneously optimizing the cut-offs for an entire project that spans a number of years, while taking into account the complications of multiple rocktypes, processing methods and products, is a formidable task which is impractical with present day computers. Lane has shown that it is possible to break the problem down, by optimizing each year separately within a larger optimization loop. While we do not use Lanes algorithm, the principle of breaking the problem into a number of smaller problems has been retained. A simplified description of what we do, in a whole run on a project with one element, is as follows.
The process
We first calculate the marginal cut-off for each increment, taking into account any economic circumstances which change with time, and store these cut-offs as a reference set. We then search for a new cut-off for the first increment which maximizes the NPV of the whole project. While we are doing this, we keep the cut-offs for the other increments constant. As we vary the cut-off for the first increment, the time taken to mine it varies, and this changes the time at which we start mining the remaining increments. Thus, due allowance is automatically made for the delay cost and any change cost. Having found the best cut-off for the first increment, we do a similar search for the best cut-off for the second increment. We continue this procedure until we have dealt with all the increments. Since, by changing the cut-offs for the later increments we have changed their NPVs and thus any delay and change costs associated with them, the cut-off for the first increment is no longer optimal. Consequently, we have to go back to the beginning and optimize the first increment again. This iterative approach is continued until no further increase in NPV can be obtained. Three or four passes, in which we optimize the cut-off for each increment, are usually sufficient. In reality, we may be finding cut-offs for several elements, and for each period or for each interval (a period/increment intersection), but the principle is the same. The approach hinges on our ability to calculate the NPV of the whole project very quickly, and we have put a lot of software development work into that aspect.
Kenneth F. Lane, The Economic Definition of Ore: Cut-off Grades in Theory and Practice, Mining Journal Books Limited, London, 1988. 268 Glossary 28 April, 1998
Appendix C: Program Limits
Current limits
The current limits are as follows. Item Number of elements and products Number of cut-offs Number of rock-types Number of processing methods Number of processing-method/rock-types Number of expressions Number of intervals or periods Number of throughput limit groups Number of throughput limits Number of stockpiles Number of spreadsheet codes in a line Note: these limits may change in future Opti-Cut revisions. To view a list of the current program limits For users with revision 1.00 or above: 1. Run the Print Results Program. 2. At the prompt, Please enter a name for the print file, type: ? and then press the Enter key. A list of current program limits will then be displayed and the program automatically terminates. Limit 10 100 30 30 30 20 999 10 10 20 50
Appendix D: Error Messages Overview
Introduction
A package such as Opti-Cut that runs on a wide range of machines, can produce a wide range of error messages if things go wrong.
Types of error messages
The error messages produced by Opti-Cut fall into three broad categories. These are:
data checks problem traps, and, system error messages.
In this section
This section contains the following topics. Topic Data Checks Problem Traps System Error Messages See Page 271 272 273
Data Checks
Introduction
Opti-Cut never assumes that the data that it is given is correct, and it does whatever checks it can as soon as it can. The Sequence and Economics Text Files are checked for consistency and completeness. Any errors that Opti-Cut detects are reported on the screen and in the print file.
Error messages
Data check error messages, produced by Opti-Cut, are recognisable because they all start with three asterisks (***) and are displayed in capital letters. We have tried to make the meaning of these messages self-explanatory, so there is little point in listing them here. Note: there is a limit to the power of data checking. If you inadvertently give it wrong data that could still be valid, Opti-Cut cannot detect the error.
Problem Traps
Introduction
The programming of Opti-Cut is defensive to the point that it does not even trust itself to do the right thing! There are nearly three hundred points in the code where the programmer's understanding of the problem and the integrity of the program itself are checked.
Error messages
If any of the programs ever stop and display the message:
PROGRAM ERROR ? IN ??????
where the question marks are replaced by various letters, you should inform Whittle Programming immediately, giving the details of the message and the circumstances under which it appeared.
System Error Messages
Introduction
Opti-Cut, like all application packages, uses the facilities of the computer operating system when:
starting up creating input and output, and, stopping.
It also uses the facilities of a FORTRAN compiler. When either the operating system or the compiler detects an error, it usually issues a message and stops the run, without giving the Opti-Cut code the opportunity to take any action. Consequently their error message is all you get. Since Opti-Cut can run on a variety of operating systems and compilers, there is very little that can be said to help you deal with these messages, except to suggest that you take the wording very literally. If you report one of these system messages to Whittle Programming, please be sure to include details of any computer gobbledegook that accompanies it.
System Error Messages, Continued
Error messages
Common system error messages are described below:

Out of disk space and Unable to write file error messages.
The most common problem is to run out of disk space. The message this produces can be anything from Out of disk space to the less helpful Unable to write file. If this happens, you will have to clear something off your disk before you can run successfully. If, after getting one of these messages, you find that there appears to be ample free disk space, it is important to note that the Opti-Cut programs often use temporary files, which the system automatically deletes when the program stops. As a consequence, it is quite possible for there to be free disk space after the run, even though the message indicated that there was none left.
Unable to open file error message.
On a PC, another confusing error arises with the message Unable to open file. This is usually caused by the Files= line in the CONFIG.SYS file being omitted or set to too low a number.
Cant read error message.
It also possible to get a Cant read error. This could be caused by another program already reading the file. For example, if an automatic backup program is making a backup of the file, an Opti-Cut program may not be able to access the file at that point in time.
Appendix E: Requests for Program Enhancement
Requests
From time to time, users may feel that additional features or functions would make their life easier. We certainly want to make your task as easy as possible. We are responsive to users needs and all requests will be considered and implemented wherever possible. The more detailed an explanation you can give, the better your chances of having it implemented. Please photocopy this page and fax to Whittle Programming on one of the following facsimile numbers: International Facsimile USA Facsimile Canada Facsimile Name: Company: Suggestion: (61 3) 9857 8800 1 800 942 2460 1 800 665 4312
Glossary
ASCII text file
American Standard Code for Information Interchange. A document file in ASCII format, containing text and punctuation, carriage returns and tab stops but carrying no formatting information.
Argument
A value to which mathematical procedure, function, etc, applies.
Average mining CAF
This is a weighted average. See Positional CAFs.
Average processing CAF
This is a weighted average. See Positional CAFs.
Binary file
A disk file containing information that is purely for computer use, and that cannot be displayed on the screen, printed, or edited as text. See Cost adjustment factors, below.
CAF
Capital Expenditure Capital Injection
Opti-Cut deals with two types of capital expenditure:

initial, and, replacement.
You need to input an initial capital expenditure to obtain internal rates of return (IRR). See Initial capital expenditure and Replacement capital expenditure below.
Cash flow
The net cash income generated by the operation of a mine or some component of it.
Change cost
The change in project value caused by delaying the start of exploitation into a period where the economic parameters are different. This pseudo cost affects the optimization. See page 267 for more information.
Glossary, Continued
Constant
A value that is fixed and unchanging for the purposes of a particular calculation. Example: 0.5, 12k or 2.7M. Where k is thousands m is millions.
Cost adjustment The cost of mining and the cost of processing can vary with position in the pit. factors Opti-Cut deals with this by using positional cost adjustment factors (CAFs).
Cost of mining
In this Manual, unless the context indicates otherwise, the cost of mining is the cost of blasting, loading and hauling a tonne of rock of a particular type as waste, at the Reference Position. The cost of mining this type of rock as waste in any other position is obtained by multiplying the cost of mining the same rock at the Reference Position by the positional mining CAF for the group in question.
Cost of processing
This is the difference between the total cost of blasting, loading, hauling and processing a tonne of a particular type of rock as ore, and the total cost of blasting, loading and hauling the same type of rock as waste, both at the Reference Position. The cost of processing this type of rock at any other position is obtained by multiplying the cost of processing the same rock at the Reference Position by the positional processing CAF for the group in question.
Cut-off
A grade below which material is not processed.
Cut-over
A grade above which material is processed by one method and below which it is processed by another method.
Delay cost
The change in project value caused by the extra discounting of all cash flows when the exploitation of a project is delayed. This pseudo cost affects the optimization. See page 266 for more information.
Glossary, Continued
Discount mode
The Optimization Program calculates the NPVs for a number of discount modes. These modes are described below. Mode Mode=1 Description NPV is determined on the assumption that: Period-based capital injections occur at the start of the period. Increment-based capital injections occur at the start of the increment. Other cash flows occur continuously throughout the interval, as though each days cash flow was discounted with the fraction for that day. NPV is determined on the assumption that: All cash flows occur at the start of the period. NPV is determined on the assumption that: All cash flows occur at the end of the period. Note: Mode=3 is the default mode for reporting. NPV is determined on the assumption that: All capital injections occur at the start of the period. Other cash flows occur at the end of the period. NPV is determined on the assumption that: Period-based capital injections occur at the start of the period. Increment-based capital injections occur at the start of the increment. Other cash flows occur at the end of the interval.
Mode=2 Mode=3
Mode=4
Mode=5
The optimization aims to maximize the NPV, which is calculated using Mode=1. This means that the NPV calculated with the other modes may not be quite optimal. However, the difference is usually insignificant, and the Print Results Program uses the highest value found at any time in any case.
Glossary, Continued
Discounted cash flow
A dollar that we get today is more valuable to us than a dollar that we expect to get next year. When estimating the value of a project, it is common to reduce expected future cash flows by a certain percentage per year, to allow for interest and risk, etc. This process is called discounting. The sum of all expected discounted cash flows is called the Net Present Value (NPV). For more information about NPV, discount rate and inflation, see page 262.
Economic scenario
A set of economic values and process definitions which may change over time, that constitutes one possible economic environment for this project.
A binary file which carries the information from the Economics Text File in a form more suitable for optimization.
Economics Text File
A text file that carries detailed information about the economic scenario and how the optimization is to be done.
Element
A substance in the mineralised material which is of interest to the study, and for which grades are available.
Expression
A series of constants, variables and functions linked by mathematical symbols which indicate how they are to be combined to produce a final value. Opti-Cut allows the user to specify expressions which depend on grades or on throughput quantities. Grade dependent expressions can be used for costs, recoveries and so forth. Throughput dependent expressions can be used in defining complex throughput limits.
Four-DTM
A Whittle Programming computer package. It allows rapid simulation of the mine life for different mining sequences and economic scenarios. Four-D explicitly deals with the effect of time on the value of cash flows.
Glossary, Continued
Four-XTM
A Whittle Programming computer package. Four-X has all the facilities of Four-D, and operates in a similar way. However, unlike Four-D it will handle up to ten elements, where each may or may not be a product and each may or may not be the subject of a cut-off. Costs and recoveries can vary with the grade of any of the elements.
Function
A mathematical function that performs a specified mathematical action. See Time costs.
G&A costs
Generalised Mining Package
This may be used to prepare the mining sequence file for Opti-Cut and, probably, to complete the details of the design after the final optimization. Generalised Mining Package see above.
GMP
Grade
The units of an element in a tonne of mineralised material.
Grade discrimination
The smallest difference in grade which is significant for an element.
Grade range
When material is assumed to be of different grades within a certain range, we call this a grade range. Contrast with Point grade, below.
Glossary, Continued
Group
A section of an increment which is all of one type of rock and which has particular grade characteristics. A group has a tonnage, and grade information for each element in the rock-type. The grade information can, in each case, be either in the form of an average grade or a range consisting of minimum, average and maximum grades. If more than one element is involved, grade ranges should be sufficiently narrow for it to be assumed that there is no correlation between the grades of different elements within the group. Multiple groups of the same rock-type can be used to represent any grade distribution to arbitrary accuracy. Each group carries mining and processing CAFs.
Handling costs
Material handling costs should be included in the cost of mining and may be included specifically for stockpile re-handling costs.
Head grade
The grade of the ore input into the mill.
Increment
A section of a sequence which can be assumed to be mined as a unit. That is, in any time period a given fraction of everything in an increment will be mined. Increments are defined by the Sequence file. Usually, each increment:
contains different quantities of material, and, is mined and processed at a different rate.
An increment consists of one or more groups. For more information about the relationship between:
Intervals, increments and periods see Interval, below. A sequence, a series of increments and groups, see Sequence, below.
Inflation
Inflation is specified as an annual percentage rate.
Initial capital expenditure
The amount spent before the first day of operation of the mine. This amount is not discounted.
Glossary, Continued
Initialization File
A small text file that is used to retain a record of the most recently used filenames and extensions, so that the programs can offer sensible default filenames. It also contains license, and other information. This file is named oc.ini. For more information, see page 139.
Internal rate of return (IRR)
The discount rate (percentage) at which the NPV of the project is zero.
Interval
Tonnages and grades are reported at the end of each period or at the end of each period and each resource increment. We use the term interval to describe time intervals which end wherever a period or an increment ends. The following diagram shows the relationship between periods, increments and intervals.
Periods Increments Intervals Time
Language File
A binary file which contains the necessary information for translating the English text that appears on the screen, and in the print files, into another language. The file, if present, is called oc.lng. See page 140 for more information.
Log file
A text file of abbreviated prompts and responses that can be used to re-run a program. See page 141 for more information
Marginal cut-off A cut-off which maximizes cash flow from the mine, having regard to mill
costs and time costs but not to delay and change costs.
Continued on next page 282 Glossary 28 April, 1998
Glossary, Continued
Maximum cut-off grade
A cut-off specified by the user. The Optimization Program will not raise a cut-off or cut-over above this limit.
Minimum cut-off grade
A cut-off specified by the user. The Optimization Program will not lower the cut-off or cut-over below this limit.
Mining dilution
When mining ore, it is common to inadvertently mine some waste also. Opti-Cut can apply an overall dilution factor that increases the tonnage of each group processed, but leaves the element content of the group unchanged. Example A 5% dilution would require a mining dilution factor of 1.05. This factor affects Cut-offs and Cut-overs. Mining Dilution
Dilution
Waste Ore
Mining recovery
Not all the ore that you intend to process actually reaches the processing mill. If, for example, 5% is lost, then the mining recovery factor is 0.95. Both the tonnage and the element content of each group processed are multiplied by this factor. Mining recovery affects optimized cut-offs and cut-overs only indirectly.
Model
A model is an idealised representation of a real-life system. In the case of Opti-Cut, the model includes the sequence in which the resource (waste and mineralised material) will be mined, the rate at which mining can proceed, the capacity of processing plants, costs and many other details.
Glossary, Continued
Net Present Value
See Discounted cash flow.
NPV
Net Present Value. See Discounted cash flow.
Operator
A symbol expressing a mathematical procedure. Operators include: +, -, *, /.
Overheads
See Time costs.
Parse
In a spreadsheet program, to arrange text into columns of cells.
PC
IBM Personal Computer or compatible clone.
Period
A time interval to which particular economics and throughput limits apply. The user defines the length of a period. For more information about the relationship between intervals, increments and periods see Interval, above.
Point grade
When material is assumed to be entirely of one grade, we call this a point grade. Contrast with Grade range, above.
Positional CAFs
Opti-Cut allows for the variation of mining and processing costs with position in the pit by the use of positional mining and processing cost adjustment factors (CAFs) which are part of the description of a group. These factors should be 1.0 for a group in the Reference Position, but can have any value in other positions. The mining cost per tonne, which applies at the Reference Position, is multiplied by the positional mining CAF of each group to obtain the mining cost at that position Processing costs are obtained in a similar manner by using the positional processing CAF.
Glossary, Continued
Price
The amount obtained for one unit of a particular product. There is a separate price for each product.
Print files
Print files are files in which the different programs store the results of their runs. These files can be viewed or printed out by the user. Opti-Cut has a different print file extension for each of the main programs. See page 46 for a list of print files and default file extensions.
Processing cost
See Cost of processing.
Processing recovery
The percentage of product that is extracted by a particular processing method. See also Processing recovery threshold.
Processing recovery threshold
A grade that is subtracted from the grade before the processing recovery percentage is applied. See page 182 for a detailed explanation.
Product
An element which may be extracted for sale.
Project life
The time span of the project or the model scenario, measured in years.
Pure text mode
Operation of a word processor in a mode which causes it to store the file in pure ASCII without any formatting controls.
Reference Position
A particular position in the mine, chosen by the user, for which all mining and processing costs are calculated. If the costs are different in other parts of the mine, this is handled by positional CAFs for mining and/or processing in each group.
Rehabilitation cost
The cost, per tonne, of rehabilitating material of a particular type of rock after it has been dumped as waste.
Glossary, Continued
Reject material
Mineralised material that could be processed, but is not, due to the current cut-offs.
Replacement capital expenditure
From time to time, in the operation of a mine, it is necessary to refurbish major pieces of equipment, and this often involves expenditure that is well in excess of normal maintenance costs. We refer to this as replacement capital expenditure. These items are discounted. See Discount mode, above.
Result Binary File
A binary file containing details of the optimization.
Rock
This refers to all material, not just waste.
Rock-type
Different types of rock are identified in Opti-Cut by rock-type codes of up to eight characters.
Sales cost
See selling cost.
Scaling factors
Scaling factors are input as a negative value from one to six. This means a scaling by a factor of from 10 to 1,000,000.
Selling cost
The costs associated with selling a unit of a product. There is a separate selling cost for each product.
Glossary, Continued
Sequence
The material which is to be mined, in the order in which it is to be mined. A Sequence consists of one or more increments. An increment contains one or more groups. The relationship between a sequence, a series of increments and groups is shown below.
Increment 1
Groups
Sequence
Increment 2
Increment 3
A binary file which carries the information from the Sequence Text File in a form more suitable for optimization.
Sequence Text File
A text file that describes the physical resource and proposed mining sequence. For more information, see page 83.
Spreadsheet Definition File
A small text file that lists the items which are to be output to a Spreadsheet Output File during a run of the Print Results Program.
A small text file containing columns of selected values created from a run of the Print Results Program. The items that are to be included are listed in a Spreadsheet Definition File.
Stockpile
An accumulation of ore set aside for later processing. A rock-type and one or more grade ranges are specified for each stockpile.
Glossary, Continued
Stockpile feed
The amount of stockpile material which is fed to a processing plant.
Stockpile recovery
This is the percentage of the element that can be recovered. It is there to allow for the effects of stockpile degradation over time due to exposure to wind, air and rain. When material from a stockpile is processed, the recovery used is the product of the stockpile recovery and the processing recovery.
Stripping ratio
The ratio of the tonnes not processed (including any sent to stockpiles) to the tonnes processed.
Text file
A file containing alphanumeric characters that can be displayed on the screen, printed, and edited as text. When we refer to a text file, we refer to a file in ASCII format. See ASCII, above, for more information.
Terminal Value
The value, if we were to start mining it today, of the resource remaining when the current processing finishes. This will be zero if the entire resource is included in the sequence.
Three-DTM
A Whittle Programming computer package. Three-D finds the three dimensional open pit outline which maximizes the total undiscounted cash flow. It can be used for mines with a life of up to three years. Beyond three years, the discounting of future cash flows starts to affect the ultimate pit outline which has the highest NPV.
Glossary, Continued
Throughput limit
A quantity which must not be exceeded in a period. This may be based on:

the material mined (ROCK) elements rock-types methods, or, user specified throughput groups.
A period is terminated when any of these limits is reached.

Time costs
Costs that continue during mining, regardless of the amount mined, processed or sold. These are often called overheads or G&A (General and Administration) costs.
Units
The units used for quantities of rock, elements, and currency are arbitrary, but only one unit is allowed for each. Different elements can have different units. Note: although the program and Manual refer to Tonnes throughout, Tons or Short Tons can be used, provided they are used everywhere.
UNIX
A multi-user, multi-tasking computer system. A symbol, such as x, y or z, representing an unspecified member of a group of objects, numbers, or the like.
Variable
Waste
Material that contains no product, or so little that it is not worth processing.
Withdrawals
Material taken out of a stockpile.
Workstation
UNIX style computer.
Index
Page numbers in bold type contain extensive and/or highly relevant topic information.
Special characters and keys

! comment lines............................................................................................................................................................... 92 ! in output report ............................................................................................................................................................. 68 ! logging commands ...................................................................................................................................................... 142 !ASK........................................................................................................................................................................ 144 !DEMO.................................................................................................................................................................... 144 !END ....................................................................................................................................................................... 142 !LOG ....................................................................................................................................................................... 142 !USE.................................................................................................................................................................143, 228 # overwriting files ........................................................................................................................................................... 41 & continuing a line.......................................................................................................................................................... 92 Enter symbol ............................................................................................................................................................... 14 * scaling factors .............................................................................................................................................................. 80 *** error message ......................................................................................................................................................... 271 [ ] use of square brackets............................................................................................................................................... 14 < > use of angle brackets............................................................................................................................................... 15
A
Abbreviations used.......................................................................................................................................................... 21 Allowed value types ...................................................................................................................................................... 109 Argument...............................................................................................................................................................111, 276 Arithmetic symbols ....................................................................................................................................................... 110 Autolog facility ............................................................................................................................................................. 148
B
Batch operation ............................................................................................................................................................. 146 Batch Processing Program reference ......................................................................................................................................33, 146, 187, 218, 220 Blank spreadsheet code ...................................................................................................................................................... 120 Bold type, use of ............................................................................................................................................................. 16
C
.csv as a Spreadsheet Output File extension................................................................................................................... 135 Cant read error message............................................................................................................................................... 274 CAF.......................................................................................................................................... see Cost adjustment factors Capital injection position in file.......................................................................................................................................................... 100 reference ....................................................................................................................................... 74, 96, 115, 165, 278 spreadsheet code ...................................................................................................................................................... 120 Capital replacement position in file.......................................................................................................................................................... 100 reference .................................................................................................................................................................. 165 spreadsheet code ...................................................................................................................................................... 120 Change cost.................................................................................................................................................... 267, 268, 276 Comma delimited format............................................................................................................................................... 134 Command line................................................................................................................................................................. 37 Command Line names................................................................................................................................................17, 37 Comment lines ................................................................................................................................................................ 92
290 Index 28 April, 1998
Compaction reference ....................................................................................................................................... 50, 60, 152, 225, 235 Constants definition ................................................................................................................................................................. 277 reference ........................................................................................................................ 92, 98, 109, 110, 111, 114, 279 Cost adjustment factor positional mining position in file....................................................................................................................................................... 90 reference ............................................................................................................................................................. 162 spreadsheet code ................................................................................................................................................. 120 positional processing position in file....................................................................................................................................................... 90 spreadsheet code ................................................................................................................................................. 120 reference ...........................................................................................................................................................159, 277 Cost of mining definition ................................................................................................................................................................. 277 position in file.......................................................................................................................................................... 102 reference .............................................................................................................. 90, 161, 162, 167, 168, 205, 277, 281 spreadsheet code ...................................................................................................................................................... 124 Cost of processing position in file.......................................................................................................................................................... 103 reference ..............................................................................................................................90, 159, 162, 169, 206, 277 spreadsheet code ...................................................................................................................................................... 124 Costs stockpile reference ................................................................................................................................................... 175 Cut-off multiple cut-offs....................................................................................................................................................... 184 reference ................................................................................................................ 49, 96, 183, 198, 207, 210, 219, 283 spreadsheet code ...................................................................................................................................................... 123 stockpile reference ................................................................................................................................................... 176 Cut-off grade Maximum and Minimum definition ............................................................................................................................................................ 283 position in file..................................................................................................................................................... 104 reference ...................................................................................................................................................... 121, 252 Cut-over definition ................................................................................................................................................................. 277 reference .................................................................................................................................................................. 283 spreadsheet code ...................................................................................................................................................... 123
D
Data checks................................................................................................................................................................... 271 Default answers .........................................................................................................................................................39, 40 Delay cost .............................................................................................................................................. 266, 267, 268, 277 Dilution ................................................................................................................................................ see Mining dilution Discount mode ................................................................................................................................................. 74, 139, 200 Discount rate position in file.......................................................................................................................................................... 100 reference ..................................................................................................................................................... 96, 115, 282 spreadsheet code ...................................................................................................................................................... 120 Discounted cash flow definition ................................................................................................................................................................. 279 reference .................................................................................................................................................................... 80 spreadsheet code ...................................................................................................................................................... 123
E
.ebi .............................................................................................................................................see Economics Binary File .etx ................................................................................................................................................see Economics Text File Economics Binary File creation...................................................................................................................................................................... 66 definition ................................................................................................................................................................. 279 reference ............................................................................................................................ 44, 66, 69, 95, 189, 193, 227
Economics description position in file............................................................................................................................................................ 98 Economics Input Program................................................................................................................................................ 66 Economics Text File conversion.................................................................................................................................................................. 66 definition ................................................................................................................................................................. 279 example ................................................................................................................................................................... 114 format ........................................................................................................................................................................ 96 functions .................................................................................................................................................................. 109 reference ............................................................................................................................ 43, 51, 66, 95, 155, 217, 238 Economics Text File line types CI - Capital Injection Line ......................................................................................................................... 100, 114, 115 DI - Discount Rate Line............................................................................................................................. 100, 114, 115 ECO - Economics Line................................................................................................................................ 98, 114, 115 EL - Element Line..................................................................................................................................... 101, 114, 115 EV - Expression Variable Line.................................................................................................................... 99, 155, 180 IN - Inflation Line .................................................................................................................................................... 100 MF - Global Mining Factors Line............................................................................... 106, 176, 239, 247, 257, 259, 260 MT - Method/Rock-type Line............................................................................................................ 103, 114, 115, 181 MTC - Method/Rock-type/Cut-off Line ............................................................................................................. 104, 181 MTP - Method/Rock-type/Product Line ..................................................................................................... 103, 114, 115 PL - Period Length Line .............................................................................................................................. 99, 114, 115 PR - Product Line............................................................................................................... 101, 114, 115, 155, 156, 158 RO - Rock-type Line ................................................................................................................................. 102, 114, 115 ROC - Rock-type Element Cut-off Line .................................................................................................................... 102 SP - Stockpile Line ............................................................................................................ 107, 108, 239, 257, 259, 260 SPD - Stockpile Detail Line ....................................................................................................... 108, 239, 257, 259, 260 TC - Time Costs Line.......................................................................................................................... 99, 114, 115, 217 TG - Throughput Group Line..................................................................................................................... 104, 179, 180 TL - Throughput Limit Line ....................................................................................................... 105, 114, 115, 179, 248 TV - Terminal Value Line.......................................................................................................................................... 98 Error messages.............................................................................................................................................................. 270 Expression Variable position in file............................................................................................................................................................ 99 reference ............................................................................................................................................. 96, 155, 180, 269 spreadsheet code ...................................................................................................................................................... 120 Expressions definition ................................................................................................................................................................. 279 reference ....................................................................................................................................... 97, 98, 109, 111, 269 Extensions ............................................................................................................................................. see File extensions
F
File types ........................................................................................................................................................................ 42 Filenames and extensions................................................................................................................................................ 47 Fixed delimited format.................................................................................................................................................. 134 Four-D definition ................................................................................................................................................................. 279 interface..................................................................................................................................................................... 28 reference ....................................................................................................................................... 52, 60, 152, 160, 222 Four-X definition ................................................................................................................................................................. 280 interface..................................................................................................................................................................... 28 reference ....................................................................................................................................... 52, 60, 152, 160, 222 Functions ...................................................................................................................................................................... 111
G
.G grade .................................................................................................................................................................109, 112 Glossary........................................................................................................................................................................ 276 Grade discrimination definition ................................................................................................................................................................. 280 reference .................................................................................................................................................................... 63
H
Handling costs .............................................................................................................................................................. 281 Hardware and software requirements............................................................................................................................... 25
I
Increments combining .................................................................................................................................................................. 64 reference .................................................................................................................................................................... 72 Inflation position in file.......................................................................................................................................................... 100 reference ........................................................................................................................................... 155, 167, 263, 281 spreadsheet code ...................................................................................................................................................... 121 Initial capital........................................................................................................................................see Capital injection Initialization File reference ..................................................................................................................................................... 47, 139, 282 Installation ...................................................................................................................................................................... 26 Internal rate of return definition ................................................................................................................................................................. 282 reference .................................................................................................................................................................. 210 spreadsheet code ...................................................................................................................................................... 121 Interval definition ................................................................................................................................................................. 282 reference ....................................................................................................................................... 71, 72, 119, 134, 269 spreadsheet use ........................................................................................................................................................ 126 Italics, use of................................................................................................................................................................... 15
K
k (thousands) .....................................................................................................................................................21, 92, 217 Keyboard prompts and answers ....................................................................................................................................... 38 Keyboard special keys..................................................................................................................................................... 40
L
.loc...................................................................................................................................................................see Log files .loe ..................................................................................................................................................................see Log files .lol ...................................................................................................................................................................see Log files .loo ..................................................................................................................................................................see Log files .lop ..................................................................................................................................................................see Log files .los...................................................................................................................................................................see Log files Lane, Kenneth F.......................................................................................................................................................22, 265 Language file ................................................................................................................................................................ 282 reference .................................................................................................................................................................. 140 License entitlement ....................................................................................................................................................... 282 License file ............................................................................................................................................................187, 282 Life of project spreadsheet code ...................................................................................................................................................... 121 Lines per page............................................................................................................................................................... 139 Log file commands................................................................................................................................................................ 142 definition ................................................................................................................................................................. 141 example ................................................................................................................................................................... 141 extensions ................................................................................................................................................................ 141 in batch mode........................................................................................................................................................... 148 reference .................................................................................................................................................................. 141
M
m (millions) .......................................................................................................................................................21, 92, 217 Maximum cut-off grade............................................................................................................................. see Cut-off grade
Menu Files submenu............................................................................................................................................................ 35 Options submenu ....................................................................................................................................................... 36 Selection submenu ..................................................................................................................................................... 35 Minimum cut-off grade ............................................................................................................................. see Cut-off grade Mining dilution definition ................................................................................................................................................................. 283 position in file.......................................................................................................................................................... 106 spreadsheet code ...................................................................................................................................................... 121 Mining recovery definition ................................................................................................................................................................. 283 position in file.......................................................................................................................................................... 106 spreadsheet code ...................................................................................................................................................... 121
N
Naming files ................................................................................................................................................................... 48 Net present value ...................................................................................................................................................see NPV Non-linear recovery....................................................................................................................................................... 182 NPV - net present value .............................................................................................................................................51, 74 reference .................................................................................................................... 198, 263, 266, 267, 268, 279, 288
O
Out of disk space error message .................................................................................................................................... 274 Oc??.ok file......................................................................................................................................................... see ok file OCCO........................................................................................................................................... see Compaction Program OCEC .................................................................................................................................... see Economics Input Program OCLD............................................................................................................................................see List Details Program OCOP ......................................................................................................................................... see Optimization Program OCPR ..........................................................................................................................................see Print Results Program OCSE ...................................................................................................................................... see Sequence Input Program ok file ....................................................................................................................................................................140, 150 Optimization Program ..................................................................................................................................................... 69 Overwriting files ............................................................................................................................................................. 41
P
.prc ................................................................................................................................................................ see Print files .pre ................................................................................................................................................................ see Print files .prl................................................................................................................................................................. see Print files .pro ................................................................................................................................................................ see Print files .prp ................................................................................................................................................................ see Print files .prs ................................................................................................................................................................ see Print files Period definition ................................................................................................................................................................. 284 position in file............................................................................................................................................................ 99 reference ............................................................................................................................50, 60, 71, 74, 119, 124, 134 spreadsheet use ........................................................................................................................................................ 126 pn/ ............................................................................................................................................................................... 155 Point grades definition ................................................................................................................................................................. 284 reference ......................................................................................................................................... 50, 60, 91, 152, 280 Positional mining factors .......................................................................................................... see Cost adjustment factors Positional processing factors..................................................................................................... see Cost adjustment factors Pre-stripping .................................................................................................................................................. 181, 243, 248 Print files ........................................................................................................................................................................ 46 Problem traps................................................................................................................................................................ 272 Processing cost.................................................................................................................................. see Cost of processing Processing method more than one .......................................................................................................................................................... 183 position in file.......................................................................................................................................................... 103 reference ...........................................................................................................................................................121, 285 reference ...........................................................................................................................................................206, 269 spreadsheet code ...................................................................................................................................................... 124
Processing method threshold position in file.......................................................................................................................................................... 103 Processing recovery fraction .......................................................................................................................................... 182 reference .................................................................................................................................................................. 182 Processing recovery percentage position in file.......................................................................................................................................................... 103 Processing throughput factors ........................................................................................................................................ 179 Product position in file.......................................................................................................................................................... 101 reference ..............................................................................................................................96, 155, 157, 158, 207, 269 Program Enhancement................................................................................................................................................... 275 PROGRAM ERROR ? IN ?????? ................................................................................................................................... 272 Program limits .............................................................................................................................................................. 269 Program names ............................................................................................................................................................... 17 Programs accessing.................................................................................................................................................................... 34 exiting ....................................................................................................................................................................... 41 functions .................................................................................................................................................................... 32 reference .................................................................................................................................................................... 53 Prompts and answers.................................................................................................... see Keyboard prompts and answers
Q
.Q quantity ............................................................................................................................................. 104, 110, 179, 180 Quote delimited format ................................................................................................................................................. 134
R
.rbi.................................................................................................................................................... see Result Binary File Recovery.........................................................................................................................see Mining or Processing recovery Reference position definition ................................................................................................................................................................. 285 reference ..............................................................................................................................90, 102, 159, 162, 277, 284 Rehabilitation definition ................................................................................................................................................................. 285 reference ........................................................................................................................................... 159, 162, 169, 178 spreadsheet code ...................................................................................................................................................... 124 Rejected material spreadsheet code ...................................................................................................................................................... 123 Replacement capital ........................................................................................................................see Capital replacement Result Binary File definition ................................................................................................................................................................. 286 reference .........................................................................................................................................................44, 69, 76 Rock spreadsheet code ...................................................................................................................................................... 122 Rock-type position in file.....................................................................................................................................................89, 102
S
.sbi................................................................................................................................................see Sequence Binary File .ssd ..................................................................................................................................... see Spreadsheet Definition File .sso .......................................................................................................................................... see Spreadsheet Output File .stx...................................................................................................................................................see Sequence Text File scaling factors ................................................................................................................................................................. 80 Selecting from a list of items ........................................................................................................................................... 39 Selling cost definition ................................................................................................................................................................. 286 position in file.......................................................................................................................................................... 101 reference ........................................................................................................................................... 159, 163, 170, 208 spreadsheet code ...................................................................................................................................................... 122 Sensitivity analysis...................................................................................................................................................52, 151
Sequence Binary File creation...................................................................................................................................................................... 55 definition ................................................................................................................................................................. 287 reference .........................................................................................................................................................43, 61, 95 Sequence compaction .................................................................................................................................. see Compaction Sequence Input Program.......................................................................................................................................54, 57, 76 Sequence Text File format ........................................................................................................................................................................ 87 reference ............................................................................................................................................. 42, 52, 61, 84, 85 Sequence Text File line types EL - Element Line................................................................................................................................... 89, 92, 93, 226 ELA - Element Average Line........................................................................................................................... 91, 92, 93 ELP - Element Presence Line .......................................................................................................................... 90, 92, 93 ELR - Element Range Line.............................................................................................................................. 91, 92, 93 GR - Group Header Line ................................................................................................................................. 90, 92, 93 IN - Increment Description Line ...................................................................................................................... 90, 92, 93 RO - Rock-type Line ....................................................................................................................................... 89, 92, 93 SEQ - Sequence Description Line.................................................................................................................... 89, 92, 93 Special keys .................................................................................................................................................................... 40 Spreadsheet Definition File attributes.................................................................................................................................................................. 123 /C - cash flow................................................................................................................ 120, 121, 122, 123, 129, 130 /CD - cash flow, discounted............................................................................120, 121, 122, 123, 127, 129, 130, 231 /CO - cut-off/cut-over ................................................................................................................... 121, 123, 130, 231 /EN - end number of increment ............................................................................................................ 121, 123, 129 /EP - end percentage of increment used ................................................................................................ 121, 123, 129 /FR - fraction ...............................................................................................................................................122, 123 /GF - grade of material from the stockpile .............................................................................121, 122, 123, 130, 131 /GG - grade of material in the ground ........................................................................................... 121, 122, 123, 129 /GI - grade of material from the increment (to processing) ............................................................ 121, 122, 123, 130 /GM - grade of material mined ............................................................................................................. 122, 123, 129 /GR - grade of material rejected ........................................................................................................... 122, 123, 129 /GS - grade of material in the stockpile at the end of the period/interval ............................................... 122, 123, 131 /GT - grade of material to the stockpile ........................................................................................ 122, 123, 129, 131 /H - stockpile handling cost ..........................................................................................................................122, 123 /HD - stockpile handling cost, discounted .....................................................................................................122, 123 /L - throughput limit.............................................................................................. 120, 121, 122, 124, 129, 130, 131 /LM - length of period, in months......................................................................................................... 122, 124, 129 /MA - maximum cut-off ....................................................................................................................... 121, 124, 130 /MC - unit mining cost ......................................................................................................................... 122, 124, 129 /MI - minimum cut-off.......................................................................................................................... 121, 124, 130 /PC - processing cost at the reference position ...................................................................................... 121, 124, 130 /PR - price per unit............................................................................................................................... 120, 124, 130 /R - total rehabilitation ......................................................................................................................... 122, 124, 129 /RC - rehabilitation cost ....................................................................................................................... 122, 124, 129 /RD - total rehabilitation value, discounted........................................................................................... 122, 124, 129 /RP - processing recovery percentage.................................................................................................... 121, 124, 130 /RT - processing recovery threshold...................................................................................................... 121, 124, 130 /S - total sales cost ............................................................................................................................... 120, 124, 130 /SC - sales cost per unit........................................................................................................................ 120, 124, 130 /SD - total sales cost, discounted .......................................................................................................... 120, 124, 130 /SN - start number of increment ........................................................................................................... 121, 124, 129 /SP - start percentage of increment used ............................................................................................... 121, 124, 129 /SR - stockpile recovery........................................................................................................................ 120, 124, 131 /TF - tonnes from the stockpile (to processing) ......................................................................121, 122, 124, 130, 131 /TG - tonnes in the ground............................................................................................. 121, 122, 124, 127, 129, 231 /TI - tonnes from the increment (to processing).............................................................. 121, 122, 124, 127, 130, 231 /TM - tonnes mined.............................................................................................................................. 122, 124, 129 /TR - tonnes rejected (from processing or stockpiling ........................................................................... 122, 124, 129 /TS - tonnes in the stockpile, at the end of a particular interval or period .............................................. 122, 124, 131 /TT - tonnes input to the stockpile ................................................................................................ 122, 124, 129, 131 /UF - units of an element from the stockpile .................................................................. 120, 121, 122, 124, 130, 131 /UG - units of an element in the ground.................................................................................120, 121, 122, 124, 129 /UI - units of an element from the increment to processing.....................................................120, 121, 122, 125, 130 /UM - units of an element mined .......................................................................................................... 122, 125, 129
/UO - units of an element output from processing .................................................. 120, 121, 122, 125, 127, 130, 231 /UR - units of an element rejected ........................................................................................................ 122, 125, 129 /US - units of an element in the stockpile ............................................................................................. 120, 122, 125 /UT - units of an element to the stockpile ..............................................................................120, 122, 125, 129, 131 codes................................................................................................................................................. 119, 120, 123, 128 definition ................................................................................................................................................................. 287 format ...................................................................................................................................................................... 119 keywords.................................................................................................................................................................. 120 <element>.................................................................................................................................... 120, 129, 130, 131 <expression>....................................................................................................................................................... 120 <method>.............................................................................................................. 121, 127, 129, 130, 131, 230, 231 <method>.<element> .................................................................................................... 121, 127, 129, 130, 131, 230 <method>.<type>......................................................................................................................... 121, 129, 130, 131 <method>.<type>.<element>......................................................................................... 121, 129, 130, 131, 230, 231 <type> ......................................................................................................................................... 122, 129, 130, 131 <type>.<element> ........................................................................................................................ 122, 129, 130, 131 AVMINCAF ................................................................................................................................................ 120, 129 AVPROCAF ................................................................................................................................................ 120, 129 Blank ................................................................................................................................................... 120, 230, 231 CAPEXINI................................................................................................................................................... 120, 129 CAPEXREP................................................................................................................................................. 120, 129 DISCOUNT ................................................................................................................................................. 120, 129 INCREMENT .............................................................................................................................................. 121, 129 INFLATION................................................................................................................................................. 121, 129 INTERNAL.................................................................................................................................................. 121, 130 LIFE ............................................................................................................................................................ 121, 129 MINDIL....................................................................................................................................................... 121, 129 MINREC...................................................................................................................................................... 121, 129 PERIOD....................................................................................................................................... 122, 129, 230, 231 RESUSED ................................................................................................................................................... 122, 129 ROCK................................................................................................................................... 122, 127, 129, 230, 231 SELLCOST.................................................................................................................................................. 122, 129 SP_<n>........................................................................................................................................ 122, 129, 130, 131 SP_<n>.<element>....................................................................................................................... 122, 129, 130, 131 STOCKPILE ........................................................................................................................................ 122, 129, 131 STRIP.......................................................................................................................................... 122, 129, 230, 231 TERMINAL................................................................................................................................................. 122, 129 TIMECOST ................................................................................................................................................. 122, 129 VALUE................................................................................................................................. 123, 127, 130, 230, 231 WASTE ....................................................................................................................................................... 123, 129 line types GRA .................................................................................................................................................... 119, 127, 231 INT..............................................................................................................................................................119, 231 PER .................................................................................................................................................................... 119 reference ............................................................................................................................................... 44, 80, 118, 230 Spreadsheet Output File creation...................................................................................................................................................................... 76 definition ................................................................................................................................................................. 287 example ................................................................................................................................................................... 136 format ...................................................................................................................................................................... 134 reference ......................................................................................................................................45, 118, 133, 230, 287 Stockpiles cut-offs..................................................................................................................................................................... 177 definition ................................................................................................................................................................. 287 grades ...............................................................................................................................................................108, 174 Mining factor ........................................................................................................................................................... 106 multi-element........................................................................................................................................................... 175 old175 position in file.......................................................................................................................................................... 107 recovery percentage.................................................................................................................................................. 108 reference ................................................................................................................................51, 96, 131, 173, 269, 288 re-handling costs ...................................................................................................................................................... 107 rock-type code.......................................................................................................................................................... 107 spreadsheet codes..............................................................................................................................................122, 123 tutorial ...................................................................................................................................................... 237, 250, 256
Stripping ratio definition ................................................................................................................................................................. 288 Spreadsheet code...................................................................................................................................................... 122 System error messages .................................................................................................................................................. 273
T
Terminal Value definition ................................................................................................................................................................. 288 position in file............................................................................................................................................................ 98 reference .............................................................................................................................................................96, 167 Termination of optimization ............................................................................................................................................ 74 Three-D definition ................................................................................................................................................................. 288 reference ...................................................................................................................................................................... 9 Throughput factor...............................................................................................................see Processing throughput factor Throughput Group position in file.......................................................................................................................................................... 104 reference ......................................................................................................................................96, 124, 269, 284, 289 Throughput limit definition ................................................................................................................................................................. 289 exercise.................................................................................................................................................................... 246 position in file.......................................................................................................................................................... 105 reference ..................................................................................................................................51, 71, 96, 179, 269, 284 Time costs definition ................................................................................................................................................................. 289 position in file............................................................................................................................................................ 99 reference ...................................................................................................................... 96, 160, 163, 166, 167, 170, 265 spreadsheet code ...................................................................................................................................................... 122 Tutorials and exercises.................................................................................................................................................. 185
U
Unable to open file error message.................................................................................................................................. 274 Unable to write file error message ................................................................................................................................. 274 Underlining, use of.......................................................................................................................................................... 16 Units definition ................................................................................................................................................................. 289 reference ...........................................................................................................................................................158, 251 spreadsheet code ...................................................................................................................................................... 124 Using the package ........................................................................................................................................................... 31
V
Value spreadsheet code ...................................................................................................................................................... 123

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Opti-Cut

Whittle Cut-off Optimization Software

Copyright 1998 Whittle Programming Pty Ltd. All rights reserved.

email: whittle@whittle.com.au web: www.whittle.com.au

High Level Table of Contents

PART 3: DETAILED FILE FORMATS ..................................................................... 82

PART 4: TECHNIQUES ......................................................................................... 137

PART 5: TUTORIALS AND EXERCISES .............................................................. 185

3 High Level Table of Contents 28 April, 1998

GLOSSARY............................................................................................................ 276 INDEX..................................................................................................................... 290

4 High Level Table of Contents 28 April, 1998

Detailed Table of Contents

ABOUT THIS RELEASE............................................................................................ 9 PART 1: INTRODUCTION ....................................................................................... 10

PART 2: PROGRAMS IN THE OPTI-CUT PACKAGE ............................................ 30

PART 3: DETAILED FILE FORMATS ..................................................................... 82

5 Detailed Table of Contents 28 April, 1998

PART 4: TECHNIQUES ......................................................................................... 137

PART 5: TUTORIALS AND EXERCISES .............................................................. 185

6 Detailed Table of Contents 28 April, 1998

7 Detailed Table of Contents 28 April, 1998

GLOSSARY............................................................................................................ 276 INDEX..................................................................................................................... 290

8 Detailed Table of Contents 28 April, 1998

About this Release

What Opti-Cut does

The main features of Opti-Cut are:

from Whittle Four-D or Four-X, or a sequence can be defined by the user.

throughput limits and stockpiles.

Opti-Cut can be applied to:

9 About this Release 28 April, 1998

Part 1: Introduction Overview

10 Part 1: Introduction 28 April, 1998

Section A: How this Manual is Structured

This part contains:

This part provides:

the Opti-Cut package. See page 30.

This part contains information about:

See page 136.

11 Part 1: Introduction 28 April, 1998

Section A: How this Manual is Structured, Continued

This part contains information about:

See page 262.

12 Part 1: Introduction 28 April, 1998

Section B: Using this Manual Overview

13 Part 1: Introduction 28 April, 1998

Conventions Used in this Manual

14 Part 1: Introduction 28 April, 1998

Conventions Used in this Manual, Continued

Angle brackets < >

Continued on next page

15 Part 1: Introduction 28 April, 1998

Conventions Used in this Manual, Continued

Bold type is used in this Manual:

Print file name

Call the print file octut1.prs.

To emphasise important words or to highlight filenames.

In this Manual, underlining is used in:

16 Part 1: Introduction 28 April, 1998

Conventions Used in this Manual, Continued

Program names and Command Line names

17 Part 1: Introduction 28 April, 1998

An element which may be extracted for sale.

18 Part 1: Introduction 28 April, 1998