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SME 2011

VENTILATION SYSTEM DESIGN AND COMPUTER SIMULATION FOR AN UNDERGROUND METAL MINE

Presented by

Hongliang (Henry) Wang


Newmont USA Limited
3/7/2011

Table of Contents
1. Introduction: Exodus Project 2. Review of Newmonts Nevada Underground Mines and Mine Ventilation Systems 3. Ventilation System Design and Optimization for Exodus Project 4. Ventilation Simulation

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1.

Introduction: Exodus Project

EXODUS UG Project

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Exodus Underground Project

Ventilation Drift

North Lantern Pit

Lantern 3 Pit Push Back


Old Portal New Portal

Lantern Open Pits


4

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Exodus Deposit: Surface Exploration

Old Lantern Pit

Lantern 3 Pit

Inferred Resource: 800K Oz; 0.25 Oz/ton; 1000-1700 ft below surface.


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Exodus Deposit

Exodus Deposit: Underground Exploration

Exploration Drift: 6000 ft

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Exodus 0.1 Ore Shapes: Steeply Dipping

Exodus Project in 2010: Continue exploration, start mine development, bring to production in Q4; and deal with surface mining

Lantern 3 Pit: 2009~2010

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Mine Designs of Exodus Project


Block model evaluation; Mining methods selection, stope designs; Mine ventilation designs; Material handling study; Cut-off grade and cost analysis; Mine design optimization; redesign with updated block model;

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Mine ventilation designs


Ventilation for different Stages of Mine Life:


Exploration, Development, Pre-production, upper level ventilation, lower level ventilation, future growth;

Ventilation System Selection:


Exhausting vs. Forcing, Shaft vs. Ramping

Scheduling and sequencing of vent infrastructures:


Ahead of vs. parallel with production; Long vent raise vs. short vent raises in series;

Surface Mining:
Ramp, vent raises and escapeways to the active pit;

Computer Simulation and ventilating design optimization.

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2. Nevada Underground Mines Ventilation System Review


Mine Site
LEEVILLE (Shaft Mining) MIDAS

Annual Production
~1,5 M Tons; 500,000 Oz. 360,000 tons; 180,000 Oz. 600,000 Tons; 350,000 Oz. 400,000 Tons; 80,000 Oz. 430,000 Tons; 108,000 Oz

Ventilation System

Total CFM
1.2~1.4 M

Main Fan HP
2 x 2K (parallel)

Booster Push Pull Push Pull Exhausting Exhausting

~1.0M

Intake: 2 x 250 Exhaust: 3 x 250+ 125 Intake: 2 x 500 Exhaust: 2x450 3 x 250 (in series)

DEEP POST (Closed) CHUKAR (Temporally closed)

~800K

~250K

EXODUS
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400K (designed) 500

Leeville

Production Shaft

Ventilation Shaft

DPM Compliance: Bio-diesel, new engines, Electric haul trucks

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Leeville Main Fan

2M HP, 700 KCFM

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Greater Leeville
Production Shaft County Road

Ventilation Shaft NEW VENT SHAFT

26~32 2100 deep


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2.2 MCFM, ~$100M

Midas
EXHAUST RAISE Main Decline

NEW DEEP INTAKE RAISE 12, 1200 EXHAUST RAISE

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Chukar

Original Mine Designs: Two years mine life; three 250 HP fan in series. Mine Life Extension

OLD DECLINE

NEW DECLINE

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Deep Post
Barricks Post Betze Pit

Exhaust Raises

Main Fans

Intake Raises

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Short Summary of the Review


Ventilation systems are very expensive, capital and operating cost are high; ventilation system is difficult to set up or upgrade. Over ventilated ? not the case in most mines, where operations are fighting hard for ventilation due to poor efficiency of fresh air distribution. Ventilation management plan is critical for mine operations. New DPM regulation adds more challenges to mine operations, but ventilation improvement is often the ultimate solution.

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3. Exodus Project Mine Ventilation Design Options and Economic Analysis


Q1: What is the best way to design the mine? There might be 16 different scenarios: Cut-off grade (Oz/ton): 0.15, 0.18, 0.20, 0.22; Stope width (ft): 15, 20, 25, 30.

North Lantern Pit

Lantern 3 Pit: 2010~2011

Decline

Q2: How many reserves we can generate? 2010MY Model total resource: 800,000 ounces; average grade @ 0.25; Q3: What are the options for ventilation? 3/7/2011 How much air we need, what is the best way to establish the vent system so we can start production in Q4?

Stope Design and Optimization

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Mine Ventilation Design Option 1: Deep Vent Raise

1600 ft; 14~16ft 400 KCFM, 3000 FPM Estimated cost: $3~5M @ $950 gold price, 10% discount rate NPV with 0.2 cutoff designs:

-$6.5M

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Mining from Bottom Up

Mine Ventilation Design Option 2: Dual Decline

Dual Decline: ~10,000 ft, 16X16, $11M, @ $950 gold price, 10% discount rate NPV with 0.2 cutoff designs:

$45K

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Mining from Multiple Levels

Mine Ventilation Design Option 3: Vent Decline + Short Vent Raises

Main Fan

Vent Decline: 1400 ft, $1.5M

@ $950 gold price, 10% discount rate NPV with 0.2 cutoff designs:

Vent Raises: 12~14ft;~$500,00

$3.1M

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Mining from Multiple Levels

Tonnage-Grade Curve of the Block Model: Upside Potentials


Exodus Grade-Tonnage Curve (Design Shapes)
2,500,000 0.400 0.350 2,000,000 Tons and Ounces 0.300 0.250 0.200 1,000,000 0.150 0.100 0.050 0 0.00 0.000 0.30 Head Grade (oz/ton)

1,500,000

500,000

0.05

0.10

0.15 Cutoff Grade TONS OUNCES

0.20

0.25

GRADE

Case Base Case @900 Base Case @1100 0.18 Cutoff @1100 0.22 Cutoff @1100
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Tons 1,273,114 1,273,114 1,235,256 561,051 1,273,114 1,235,256 561,051

Grade 0.247 0.247 0.224 0.265 0.247 0.224 0.265

Ounces 314,479 314,479 277,188 148,846 314,479 277,188 148,846

$ $ $ $ $ $ $

NPV 11,015,807 44,646,905 25,510,228 16,310,246 17,785,952 2,876,978 3,493,655

Base Case @950 0.18 Cutoff @950 0.22 Cutoff @950

Mine Ventilation System Selection: Literature Review


Based on the location of the main fan(s) in the system. Haul Road
(a) The following arguments favor an exhaust system [1, 2]. Utilize haulage or hoisting openings as intakes, which is desirable for mine operations. In forcing system, main haulage route is in exhaust air. In case of fire or emergency, the primary escape way is in intake air (depended on the location of fire). In forcing system, the secondary escape way is in fresh air. (b) And the following arguments favor a forcing system [1, 2]. Deliver fresh air to working places, which is desirable for mine ventilation quality control. In exhausting system, intake air gets contaminated by underground traffic. Working places are independent of each other. In exhausting system, lower levels get experienced air from top levels.

Working Working Area Area

Haul Road

[1] Mine ventilation and air conditioning. Howard L. Hartman. [2] Engineering factors in the ventilation of metal mines. G. E. McElroy.

Working Area

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Exhausting or Forcing?

If the deposit grows significantly


Haul Ro ad

Main Fan

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CFM Requirement

Equipment List and CFM requirements @150 CFM/HP


Utilization CFM HP* Rate Requirement
80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 11,040 16,680 9,600 13,920 13,920 30,000 30,000 49,080 49,200 49,320 17,880 14,040 18,480 18,600 24,000 365,760

Equipment Type

Jumbo 92 Jumbo 139 Explosive Truck 80 Forklift 116 116 Forklift 250 Loader 250 Loader Haul Truck 409 Haul Truck 410 Haul Truck 411 Shotcrete Spray Truck 149 Service/Lube Truck 117 154 Bolter 155 Bolter Other Desiel Equipments 200 Total 3048

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Main Fans: 102 500HP

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Challenges

Reserve Uncertainties: only top half of the deposit was in reserve quality. Ground Condition Uncertainties: lack of Geotech information for the locations of the vent raises.

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Challenges
Nevadas weather: summer

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Nevadas weather: winter

4. Ventilation Simulation

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Courtesy of Mine ventilation and air conditioning, Howard L. Hartman.

Surface

Dual Vent Raises: 10, 250, Main Fan Performance: 415 KCFM, 6.5 H2O;485 HP; Annual opt cost: $350,000.

0.1 Ore Shape Short Vent Raises 12, 75,

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Main Fan Setting

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Surface Blasting vs. Underground Ventilation


Current Bench

300 ft

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Surface Blasting vs. Underground Ventilation

Questions ?

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