Opti-Cut: User Manual

Opti-Cut
Whittle Cut-off Optimization Software
User Manual
April, 1998
1
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: +61 3 9899 3799

Facsimile: +61 3 9899 3755
email: whittle@whittle.com.au
web: www.whittle.com.au
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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
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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
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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
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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
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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
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
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
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
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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
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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 Opti-Cut adds another dimension to the existing Whittle optimization
does 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.
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About this Release
28 April, 1998
Part 1: Introduction
Overview
In this part This part contains the following sections.
Section See Page

Section A: How this Manual is Structured 11
Section B: Using this Manual 13
Section C: Opti-Cut Methodology 21
Section D: Opti-Cut, Your Computer and Other Whittle 24
Programs
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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: This part contains:

Introduction
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: This part provides:

Programs in the
An overview of:
Opti-Cut
Package - 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 This part provides details of the different files used by the programs, and their
File Formats formats.
See page 82.
Part 4: This part contains information about:

Techniques
Auxiliary files and computer techniques.
Economic factors.
Mining factors.
See page 136.
Continued on next page
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Section A: How this Manual is Structured, Continued
Part 5: These tutorials and exercises are designed to help you learn about Opti-Cut
Tutorials and and build up the necessary skills to use it.
Exercises
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.
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Section B: Using this Manual
Overview
In this section This section contains the following topics.
Topic See Page

Conventions Used in this Manual 14
Terminology 18
Abbreviations 21
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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.
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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.
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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.
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Program names As the user has two means of accessing Opti-Cut programs, that is via the
and Command Menu or from the Command Line, each of the programs in the Opti-Cut
Line names 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 Command Line name

Sequence Input OCSE
List Details OCLD
Compaction OCCO
Economics Input OCEC
Optimization OCOP
Print Results OCPR
Batch Processing OC
For more information, see page 53.
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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 This is the difference between the total cost of blasting, loading, hauling and
processing 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 A particular position in the mine, chosen by the user, for which all mining and
Position 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.
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Terminology, Continued
Rock This refers to all material, not just waste.
Sequence, A sequence is the order in which material is to be mined.

increment,
group
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
Increment 2
Sequence
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.
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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.
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Abbreviations
Abbreviations The following abbreviations are used in this Manual.
Abbreviation Term
NPV Net Present Value
GMP Generalised Mining Package
m million(s)
k thousand(s)
CAF Cost Adjustment Factor
IRR Internal rate of return
G&A costs General and Administration costs
PC Personal Computer
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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.
Kenneth F. Lane, The Economic Definition of Ore: Cut-off Grades in Theory and Practice, Mining Journal
Books Limited, London, 1988.
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Section C: Opti-Cut Methodology, Continued
Programs in the The Opti-Cut package consists of six separate programs, and a control
Opti-Cut program called the Batch Processing Program (OC), to automate their
package 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 For more information, see Part 2: Programs in the Opti-Cut Package, starting
information on page 30.
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Section D: Opti-Cut, Your Computer and Other Whittle
Programs
Overview
Topic See Page

Hardware and Software Requirements 25
Installing Opti-Cut on Your Computer 26
Four-D and Four-X Interfaces 28
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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,
Platforms
Opti-Cut will run:
under DOS, and,
in a DOS window under Windows 3.x, Windows 95, Windows NT and
OS/2.
UNIX Minimum requirements

workstations
16MB of memory, and,
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.
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28 April, 1998
Installing Opti-Cut on Your Computer
Installing PCs
Opti-Cut on This section details the procedure for installing Opti-Cut on your PC.
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 Action
1. Make sure you are in MS-DOS mode or you have a DOS window
open.
2. 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. Insert the disk labelled PC Version, Disk 1 of 2 into a diskette
drive.
4. 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.
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Installing Opti-Cut on Your Computer, Continued
Procedure (continued)
Step Action
5. 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.
6. 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
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 For more information, refer to the Read.me file located on PC Version, Disk
information 1 of 2.
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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 Action
1. 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.
2. 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=:
- 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.
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Four-D and Four-X Interfaces, Continued
Producing an To produce Opti-Cut files:

Opti-Cut
Run a single economic analysis for a single mining sequence (best, worst or
sequence
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.
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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 See Page

Chapter 1: Getting Started 30
Chapter 2: The Programs 53
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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 See Page

Program Description 32
Accessing the Programs 34
At the Terminal 38
Files 42
Getting the Most out of the Package 49
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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 The Sequence Input Program:

Input Program
reads the Sequence Text File which describes the physical resource and the
(OCSE)
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 The List Details Program:

Program
(OCLD) 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 The Compaction Program:

Compaction
Compacts the information contained in Sequence Binary Files and Sequence
Program
(OCCO) Text Files.
This can reduce:
- the size of files, and,
- the time taken for an optimization.
It also creates a print file.
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28 April, 1998
Program Description, Continued
The Economics The Economics Input Program:

Input Program
reads the Economics Text File containing information about an economic
(OCEC)
scenario
creates an Economics Binary File containing the information in a form more
suitable for optimization, and,
The The Optimization Program:

Optimization
reads the Economics Binary File as well as the Sequence Binary File
Program
(OCOP) (indirectly)
performs the optimization,
produces a Result Binary File, and,
The Print The Print Results Program:

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

Processing
controls the:
Program
(OC) - 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.
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28 April, 1998
Accessing the Programs
Introduction The programs can be accessed in two ways:

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

Menu
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.
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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.
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28 April, 1998
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 The user can select an item from the Menu or a submenu by:
items
Moving the highlighted bar with the:
- up () or down () arrow keys on the keyboard, and then,
- pressing the Enter key ().
Typing one of the letters or numbers highlighted in the Menu items.
For example, if you typed the letter L, the List Details Program would be
started.
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 ().
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28 April, 1998
The Command The programs can be accessed from the Command Line, by typing in the
Line 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 Program name

OCSE Sequence Input Program
OCLD List Details Program
OCCO Compaction Program
OCEC Economics Input Program
OCOP Optimization Program
OCPR Print Results Program
OC Batch Processing Program
Working out The Command Line name is made up of four letters:

the Command
The first two letters of the Command Line name are always OC,
Line name
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.
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28 April, 1998
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 All user interaction with Opti-Cut takes the form prompts for information, to
answers 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.
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28 April, 1998
At the Terminal, Continued
Selecting from a Sometimes Opti-Cut will display a list of options or items from which you can
list of items 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.
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28 April, 1998
Editing default Editing default answers

answers and
text
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 Function
End moves the cursor to the end of the text.
Home moves the cursor to the start of the text.
Left arrow moves the cursor one character to the left.
Right arrow moves the cursor one character to the right.
DEL deletes the character at the cursor position.
Backspace deletes the character to the left of the cursor.
INS toggles between insert and overtype mode.
Ctrl + Y deletes all the text.
Esc restores the text to the original default answer (see
Default answers, below).
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28 April, 1998
Overwriting Opti-Cut will not allow you to overwrite an existing data file with a new file
files 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 PC
program 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.
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28 April, 1998
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 .stx

Description A text file that describes the physical resource and
the proposed mining sequence.
Created by 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.
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28 April, 1998
Files, Continued
Sequence Binary File
Default extension .sbi

Description A binary file that carries the information from the
Sequence Text File, but in a form more suitable for
optimization.
Created by The Sequence Input Program.
You should never attempt to alter Sequence
Binary Files in any way.
Used by The List Details Program.
The Optimization Program (indirectly).
The Print Results Program (indirectly).
Economics Text File
Default extension .etx

Description A text file that contains detailed information about
an economic scenario and how the optimization is
to be done.
Created by Four-D or Four-X, or,
the user, with a text editor or a word processor

in pure text mode.
Used by The Economics Input Program to create an
Economics Binary File.
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28 April, 1998
Files, Continued
Economics Binary File
Default extension .ebi

Description A binary file that carries the information from the
Economics Text File, but in a form more suitable
for optimization.
Created by The Economics Input Program.
You should never attempt to alter Economics
Binary Files in any way.
Used by The Optimization Program.
The Print Results Program (indirectly).
Result Binary File
Default extension .rbi

Description A binary file that contains the results of an
optimization.
Created by The Optimization Program.
You should never attempt to alter Result Binary
Files in any way.
Used by The Print Results Program to produce the printed
report and spreadsheet output.
Spreadsheet Definition File
Default extension .ssd

Description A text file that controls the data that the Print
Results Program outputs to the Spreadsheet
Output File.
Created by The user, with a text editor or a word processor in
pure text mode.
Used by The Print Results Program.
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28 April, 1998
Files, Continued
Spreadsheet Output File
Default extension .sso

Description A text file that contains output from the Print
Results Program, in a form suitable for importation
into a spreadsheet program.
Created by The Print Results Program.
Used by The customer, for importation into a spreadsheet.
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28 April, 1998
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 .prs
List Details Program .prl
Compaction Program .prc
Economics Input Program .pre
Optimization Program .pro
Print Results Program .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 -
The following table shows how you can view or print out a print file from the
Command Line.
On a PC On UNIX
To view a print file, type: To view a print file, type:
EDIT <filename and extension> more <filename and extension>
- or - - or -
TYPE <filename and extension> | pg <filename and extension>
MORE
To print a print file, type: To print a print file, type:

print octut1.prs lp octut1.prs
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28 April, 1998
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.

extension
Log files for the:

Sequence Input Program .los
List Details Program .lol
Compaction Program .loc
Economics program .loe
Optimization Program .loo
Print Results Program .lop
For more information about using log files, see page 141.
Filenames and Opti-Cut has special facilities for handling filenames and extensions, to
extensions 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 (.).
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28 April, 1998
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.
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28 April, 1998
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 The following table sets out the minimum you have to do to find a life-of-mine
required cut-off strategy, using Opti-Cut.
Stage Description
1. 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.
2. Run the Sequence Input Program to create a Sequence Binary File.
3. Prepare a description of the economic conditions under which you
expect to operate, in the form of an Economics Text File.
4. Run the Economics Input Program to create an Economics Binary
File.
5. Run the Optimization Program to optimize the cut-offs.
6. 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.
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28 April, 1998
Getting the Most out of the Package, Continued
Getting the Unfortunately, the simple approach described above is unlikely to lead to the
most out of the best solution. This is because no allowance is made for experimentation or for
package sensitivity work.
Consider the following ideas.
Merging Some Sequence files, particularly those created by Four-D and Four-X,
increments contain a large number of small increments. Opti-Cut treats each of these
and/or periods 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 If the Sequence Text File or Sequence Binary File contains a large number of
point grades 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.
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28 April, 1998
Economics Text After the first run through, there are a number of different options in the
File options 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:
Optimization Program, and,
Print Results Program.
You can run them individually, or use the Batch Processing Program to
automate the procedure.
Balancing the Check the actual rock and process values and compare them with the
project 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?
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28 April, 1998
Sensitivity As with any results from an optimization process, you need to get a feel for the
analysis 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 For more information about getting the most out of the package, see Part 4:
information Techniques, starting on page 136.
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28 April, 1998
Chapter 2: The Programs
Overview
In this chapter This chapter describes the programs in detail. It contains the following topics.
Topic See Page

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
Acknowledge- The clip art included in this chapter is provided by permission of CorelDraw
ment Corporation, 1996. All rights reserved.
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28 April, 1998
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 Output

Sequence Input
Sequence
Text File
OCSE
Sequence
Binary File
Print File
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28 April, 1998
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 Prompt Action

Please enter a name
1. for the print file: Type in a name for the print file and press
Enter ()
Please enter the
2. name of the Sequence
Type the name of the Sequence Text File
Text File: and press
Please enter a name
3. for the Sequence
Type in a name for the Sequence Binary File
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.
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28 April, 1998
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).
For more Using the Menu or the Command Line

information 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
Sequence Text Files, see pages 42 and 83.
Sequence Binary Files, see page 43.
Print files, see page 46.
Tutorials and For practice in using the Sequence Input Program, see:
exercises
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.
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28 April, 1998
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

Files created
Print file - default file extension .prl.

List Details
Sequence OCLD Print File

Binary File
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28 April, 1998
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.
OCLD
Step Prompt Action

Please enter a name
Enter ()
Please enter the
2. name of the Sequence Type in the name of the Sequence Binary
Binary File: 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.
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28 April, 1998
List Details Program (OCLD), Continued

Naming files
see pages 42 - 47.
File types
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28 April, 1998
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 As Opti-Cut can, if you wish, produce new cut-offs for the start of every
whether to use increment and period, it may be inconvenient to have increments which would
the Compaction take a month or less to mine. This is because, for operational reasons, you do
Program 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.
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28 April, 1998
Compaction Program (OCCO), Continued
Files Files used

Sequence Text File - default file extension .stx,
- or -
Files created
Print file - default file extension .prc.
Compacted Sequence Binary File - default file extension .sbi.

Compaction
Compacted
Sequence Sequence
Text File OCCO Binary File
OR
Print File
Sequence
Binary File
Using a The question of whether to compact a Sequence Text File or Sequence Binary
Sequence Text File is particularly relevant when it comes to compacting point grades. This is
File or a because Sequence Binary Files contain summary point grade information that
Sequence Sequence Text Files do not.
Binary File
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.
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28 April, 1998
Procedure Start up the Compaction Program.

If you are using:
The Menu, choose the Compaction Program from the Menu.
OCCO
Follow the 6 steps in the table below.
Step Prompt Action

Please enter a name for
1. the print file: Type in a name for the print file and
press the Enter key ()
Sequence information
2. may be input in one of If you want to:
two ways:
compact a Sequence Text File, type in:
1. Sequence Text File
2. Sequence Binary File 1 and press
Your choice [2]:
compact a Sequence Binary File, press:

to accept the default [2].
Please enter the name
3. of the Sequence Text Type the name of the:
File:
Sequence Text File,
- or - - or -
Please enter the name
of the Sequence Binary
File:
and press
Please enter a name for
4. the New Sequence Binary Type in a name for the new Sequence
File: Binary File and press
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28 April, 1998
Step Prompt Action

5. The program tells you If you:
that it can compact:
Want to compact the increment
increments, and/or information, press:
grade information.
It will then ask: to accept the default [Y]
Do you wish to compact Prompt Action
the increment
Please enter the Type in the desired
information? (Y/N) [Y]?
desired
increment increment tonnage.
tonnage:
Do not want to compact the increment

information, type:
N
Do you wish to compact
6. the grade information If you:
Want to compact the grade
(Y/N) [Y]?
information, press:

to accept the default [Y]
Prompt Action
Please enter the Type in the grade
grade
discrimination discrimination for
for each element 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).
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Process: If you are combining small increments into larger ones, the Compaction
combining Program does this first. It places each new increment boundary at the nearest
increments 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:
When combining point grades into grade ranges, the Compaction Program
combining point
grades
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 Finally the new, compacted Sequence Binary File is created.
report
The Compaction Program also produces a report which is located in the
print file.
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Naming files
see pages 42 - 47.
File types
Sequence Text Files, see pages 42 and 83.
Tutorials and For practice in using the Compaction Program, see:

exercises
Exercise 2 - Varying the Compaction, starting on page 234.
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28 April, 1998
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

Economics Text File - default file extension .etx.
Files created
Print file - default file extension .pre.
Economics Binary File - default file extension .ebi.

Economics Input
Economics
Text File OCEC
Economics
Binary File
Sequence
Binary File Print File
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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.
OCEC
Step Prompt Action

Please enter a name
Enter ()
Please enter the
2. name of the Sequence Type the name of the Sequence Binary File
Please enter the
3. name of the Type the name of the Economics Text File
Economics Text File: and press
Please enter a name
4. for the Economics Type in a name for the Economics Binary
Binary File: 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.
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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 !.

Naming files
see pages 42 - 47.
File types
Economics Text Files, see pages 43, 51 and 94.
Economics Binary Files, see page 44.
Tutorials and For practice in using the Economics Input Program, see:
exercises
189.
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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.

Optimization
Sequence Result
Binary File OCOP Binary File
Economics
Print File
Binary File
Print File
Note: the corresponding Sequence Binary File must be in your working directory.
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Optimization Program (OCOP), Continued
Procedure Start up the Optimization Program.

If you are using:
The Menu, choose the Optimization Program from the Menu.
OCOP
Step Prompt Action

Please enter a name
Enter ()
Please enter the
2. name of the Type the name of the Economics Binary File
Economics Binary and press
File:
Please enter a name
3. for the Result Type in a name for the Result Binary File
Do you wish to
4. optimize by period If you:
(Y/N) [Y]?
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
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28 April, 1998
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 Opti-Cut lets you choose to optimize by:

period or
period
interval?
- 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.
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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.
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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.
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Process: NPV The Optimization Program calculates the NPVs for a number of
discount modes discount modes.
These modes are described below.
Mode Description
Mode=1 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.
All cash flows occur at the start of the period.
All cash flows occur at the end of the period.
Note: Mode=3 is the default mode for reporting.
All capital injections occur at the start of the period.
Other cash flows occur at the end of the period.
increment.
Other cash flows occur at the end of the interval.
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.
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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.

Naming files
see pages 42 - 47.
File types
Economics Binary Files, see page 44.
Optimization techniques
How the optimization is achieved, see page 263.
Tutorials and For practice in using the Optimization Program, see:

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

Print Results
reads the Result Binary File,
Program
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.
Result Print Results

Binary File
OCPR Print File

Print File
Sequence
Binary File
Economics
Binary File
et
Sprea dshe e Spreadsheet
Definition Fil Output File
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28 April, 1998
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.
OCPR
Follow the 6 steps in the table below.
Step Prompt Action

Please enter a name for the
1. print file: Type in a name for the print file
and press Enter ()
Please enter the name of the
2. Result Binary File: Type the name of the Result
Binary File and press
3. The program will tell you: If you:
Want to produce an Opti-Cut
A report can be produced for
marginal cut-offs or Opti-Cut
optimized cut-offs report, press:
It will then ask:
Do you want to produce an
Opti-Cut report (Y/N) [Y]? to accept the default [Y] to
report optimized cut-offs
Do not want to produce an
Opti-Cut report, type:
N
to get the marginal cut-off
report
4. The program will tell you: If you:
Want to see interval entries,
An entry can be produced for each
interval or for each period
press:
It will then ask:
Do you want to see interval

entries (Y/N) [Y]?
Do not want to see interval
entries, type:
N
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Step Prompt Action

Do you want to output data for
5. spreadsheet use (Y/N) [Y]? If you:
Want to output data for
spreadsheet use, press:

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

6. The program will list a series of If you:
items and the default number of
Want to modify any of the
decimal places for each of those
decimal places, press:
items.
It then asks:

Do you want to modify any of
these values (Y/N) [N]?
REPORT DISPLAYS - NUMBER OF DECIMAL PLACES

Prompt Action
Small rock quantities 2 The - Choose the
Large rock quantities 0
program number of the
Small metal quantities 2
will item you want
and press .
Large metal quantities 0
display a
Small dollar values 2
numbered
Large dollar values 0 - Type in the
Grade for - <element> 3
list of
number of
Do you want to modify any of these these
decimal places
values (Y/N) [N] items.
(max. 8) and
press
- Continue this
process until you
have completed
all necessary
changes, then
type: 99 to exit.
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.
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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.
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Naming files
see pages 42 - 47.
File types
Result Binary Files, see page 44.
Spreadsheet Definition Files, see pages 44 and 117.
Spreadsheet Output Files, see pages 45 and 132.
Tutorials and For practice in using the Print Results program, see:
exercises
189.
Tutorial 3 - Using a Stockpile, starting on page 237.
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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 See Page

Chapter 1: Sequence Text File 83
Chapter 2: Economics Text File 94
Chapter 3: Spreadsheet Files 116
Text file There are limits to the numbers of various types of items that can be included
limitations in these text files.
See page 268 for details of these limits.
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Chapter 1: Sequence Text File
Overview
In this section This chapter contains the following topics.
Topic See Page

Background Information 84
The Way the Sequence Text File Describes the Physical 85
Resource
Sequence Text File Layout 87
Lines in Detail 89
Sequence Text File Guidelines and Examples 92
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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 The Sequence Text File can be created:

Sequence Text
By a GMP, Four-D or Four-X.
File is created
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 The Sequence Text File is used by:

that use the
The Sequence Input Program to create a Sequence Binary File.
Sequence Text
File Each Sequence Text File must be converted into a Sequence Binary File,
before it can be used for an optimization.
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.
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The Way the Sequence Text File Describes the Physical
Resource
Lines in the The Sequence Text File is made up of a number of lines of text, each
Sequence Text describing certain aspects of the physical resource.
File.
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
Sequence,
increment,
A sequence is defined as the material which is to be mined, in the order in
group 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
Increment 2
Sequence
Increment 3
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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.
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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.
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Sequence Text File Layout, Continued
Information Line types are followed by certain information.

following line
types
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 <description>

Line type <code> <numeric value> <additional information>
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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 Definition
Sequence SEQ <Description> <Description>
Description Up to 56 characters to describe the sequence. The
Line description is optional.
(SEQ)
Example: SEQ Simple single element sequence - 1 increment
Layout Definition
Element Line EL <Element code> <Element code>
<Decimals-grade>
(EL) <Decimals-total> 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>
totals of units of this element. Note that scaling is
allowed here.
Example: EL GOLD 2
Layout Definition
Rock-type Line RO <Rock-type code> <Rock-type code>
(RO) A code to identify a type of rock.
Example: RO WASTE
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Lines in Detail, Continued
Layout Definition
Element ELP <Element code> <Element code>
Presence Line This element code represents an element that occurs in
(ELP) the type of rock identified by the previous Rock-type
Line.
(optional)
This must be a previously defined element code.
Example: ELP GOLD
Layout Definition
Increment IN <Description> <Description>
Description Up to 56 characters to describe the increment. The
Line description is optional.
(IN)
Example: IN 1 Top
Layout Definition
Group Header GR <Rock-type code> <Tonnage> <Rock-type code>
Line
<Mining CAF> <Processing CAF>
A rock-type code, defined above.
(GR) <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
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Layout Definition
Element ELA <Element code> <Element code>
<Average grade>
Average The code of the element for the rock-type of this group.
(point grade) <Average grade>
Line The average grade of this element.
(ELA)
Example: ELA GOLD 3.7
Layout Definition
Element Range ELR <Element code>
<Element code>
Line <Minimum grade> The code of the element for the rock-type of this group.
<Average grade>
(ELR) <Maximum grade> <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
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Sequence Text File Guidelines and Examples
Rules and Please note the following rules when creating Sequence Text Files.
guidelines
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
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: Here is an example of the structure of a simple Sequence Text File.

structure
SEQ <Description>
RO <Rock-type code>
ELP <Element code>
RO <Rock-type code>
IN <Description>
GR <Rock-type code> <Tonnage> <Mining CAF> <Processing CAF>
ELR <Element code> <Minimum grade> <Average grade> <Maximum grade>
ELR <Element code> <Minimum grade> <Average grade> <Maximum grade>
ELA <Element code> <Average grade>
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Sequence Text File Guidelines and Examples, Continued
Example: Here is an example of a simple Sequence Text File.

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 ! start of increment
GR WASTE 3000
GR ORE 1000
ELR GOLD 0.0 0.5 1.0
GR ORE 2000
ELR GOLD 1.0 1.6 2.0
GR ORE 100
ELA GOLD 3.7
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.
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Chapter 2: Economics Text File
Overview
In this chapter This chapter contains the following topics.
Topic See Page

Economics Text File Layout 96
Lines in Detail 98
Allowed Value Types and Functions 109
Economics Text File Guidelines and Examples 114
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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 Files are created by:

Economics Text
Four-D or Four-X, or,
File is created
by the user, with a text editor or a word processor in pure text mode.
The programs The Economics Text File is used by the Economics Input Program to create an
that use the Economics Binary File.
Economics Text
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.
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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.
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Economics Text File Layout, Continued
Information Line types may be followed by:

following line
Description(s).
types
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
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.
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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 Abbreviation

Constants. C
Values which vary with period. P
Expressions, containing constants and expression X
variables.
Expressions, containing constants, expression G
variables and element grades.
Expressions, containing constants, expression Q
variables and quantities for an interval.
Note also: Items in angle brackets < >, should be replaced by appropriate
codes or values. The angle brackets should not be included.
Layout Definition
Economics Line ECO <Description> <Description>
(ECO) A description of the economic scenario of up to 56
characters. This description is optional.
Example: ECO Minimum economic conditions - base case
Layout Definition
Terminal Value TV <Terminal Value> <Terminal Value>
Line If only part of a resource is described in the sequence,
(TV) the estimated value of the remainder of the resource
should be given, in todays dollars.
(optional)
Allowed value types: C.
Example: TV 50m
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Layout Definition
Expression EV <Code for Variable> <Code for Variable>
<Value for Variable>
Variable Line A code for a value that you will use in an expression
later in this file.
(EV)
(optional)
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 Definition
Period Length PL <Number of Months> <Number of Months>
Line The number of months must be a whole number.
(PL) No decimal places.
Allowed value types: C, P, X.
Example: PL 12
Layout Definition
Time Costs TC <Time Unit> <Time Costs> <Time Unit>
Line A if time cost figures are per annum.
(TC) M if time cost figures are per month.
<Time Costs>
The costs which are time, rather than tonnage,
dependent.
Example: TC A 1.5m
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Layout Definition
Capital CI <unit> <Period or <Unit>
P if the capital injection is at the start of a period.
Increment Number> <Amount>
Injection Line
(CI) I if the capital injection is at the start of an
(optional) 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>
Example: CI 0 16m
Layout Definition
Inflation Line IN <Rate per Annum> <Rate per Annum>
(IN) The percentage inflation rate per annum.
(optional) This is used for reporting purposes only. Prices and
costs must still be given in constant dollars.
Example: IN 5
Layout Definition
Discount Line DI <Rate per Annum> <Rate per Annum>
(DI) The percentage discount rate per annum.
Example: DI 10
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Layout Definition
Product Line PR <Element code> P <Element code>
<Price per Unit>
The code of an element which is a product.
(PR)
PR <Element code> S <Price per Unit>
<Sales Cost per Unit>
The price obtainable for a unit of this product.
<Sales Cost per Unit>
The cost of selling a unit of this product. Optional.
Example: PR GOLD P 445.00
Layout Definition
Element Line EL <Element code> <Decimals> <Element code>
The code of an element to which cut-offs are to apply.
(EL)
<Decimals>
grades of this element. A maximum of 4 decimal places
is allowed.
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
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Layout Definition
Rock-type Line RO <Rock-type code> M <Mining <Rock-type code>
Cost>
Any rock-type code.
(RO) RO <Rock-type code> E
<Environmental Cost> <Mining Cost>
RO <Rock-type code> L 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 M 1.65
Layout Definition
Rock-type ROC <Element code> Y <Element code>
Element Cut-off or The code of an element.
Line This line identifies whether this element for this
ROC <Element code> N
(ROC) 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 N
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Layout Definition
Method/ MT <Method code> <Method code>
<Rock-type code> <Processing
Rock-type Line Cost> A code which identifies a particular processing method.
(MT) <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 Definition
Method/ MTP <Product code> R
<Recovery Percentage>
<Product code>
Rock-type/ The code for a product which is in the above rock-type.
Product Line MTP <Product code> N
<Non-linearity Threshold>
(MTP) 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.
Example: MTP GOLD R 94.0
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Layout Definition
Method/ MTC <Element code> I <Element code>
<Minimum Cut-off>
Rock-type/ A code for an element (already defined) pertaining to
Cut-off Line MTC <Element code> A the current rock-type.
<Maximum Cut-off>
<Minimum Cut-off>
(MTC)
The lowest allowable cut-off for this element when the
(optional) current rock-type is processed by the current method.
<Maximum Cut-off>
The highest allowable cut-off for this element when the
current rock-type is processed by the current method.
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 Definition
Throughput TG <Throughput Group code> <Throughput Group code>
<Throughput Def.>
Group Line A code to identify a quantity which is to be limited
during each period.
(TG)
<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
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Layout Definition
Throughput TL <Code> <Time Unit> <Code>
<Throughput Limit>
Limit Line A code that identifies an item which is to be limited in
each period. This can be an element, rock-type,
(TL)
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.
Example: TL ROCK A 1.4m
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Layout Definition
Global Mining MF D <Mining Dilution Factor> <Mining Dilution Factor>
Factors Line MF R <Mining Recovery Factor> When ore is mined, it is common for it to be diluted by
MF S extra waste. This factor gives the increase in ore
(MF) <Mining Stockpile Factor> tonnage overall. It must be greater than, or equal to,
(optional)
MF SL 1.0.
<Global Stockpile Limit>
MF DPRS Allowed value types: C, P, X.
<decimal places Rock small>
<Mining Recovery Factor>
MF DPRL
<decimal places Rock large>
The fraction of the material mined as ore which is
MF DPPS
actually input to the processing mill. This must be less
<decimal places Product than or equal to 1.0.
small>
MF DPPL
<decimal places Product <Global Stockpile Limit>
large>
The limit of the sum of all stockpile tonnages.
MF DPVS <decimal places Value
small> Allowed value types: C, P, X.
MF DPVL Once this limit is reached, material that could have been
<decimal places Value large> 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.
<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.
Example: MF S 0
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Layout Definition
Stockpile Line SP <Rock-type code> <Initial <Rock-type code>
Size> <Re-handling Cost>
The code for any type of rock which contains product.
(SP)
<Initial Size>
(optional)
The initial tonnage of this stockpile.
<Re-handling Cost>
The cost of re-handling stockpile material when it is
processed. Optional.
See page 173 for a detailed discussion of stockpiles.
Example: SP OXID 0 .5
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Layout Definition
Stockpile Detail SPD <Product code> R
<Product code>
Line SPD <Element code> I
Any product code applicable to the rock-type of this
stockpile.
(SPD)
<Minimum Grade>
SPD <Element code> A <Element code>
<Maximum Grade>
Any element code applicable to the rock-type of this
SPD <Element code> G
<Initial Grade>
stockpile.
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.
<Minimum Grade>
Material for this element that has a grade below this
figure will not be placed in this stockpile.
<Maximum Grade>
Material for this element that has a grade equal to or
above this figure will not be placed in this stockpile.
Optional.
<Initial Grade>
The initial grade of this stockpile.
This is only relevant if the initial tonnage in the SP line
is not zero. Optional.
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
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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 There are five different ways values can be input into an Economics Text File.
types
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 Description

Constant 0.5, 12k or 2.7M.
Where:
k is thousands.
m is millions.
Value which varies with the The letter p is used to indicate period, in the
period. 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: 1.3 + ev1*3.4
constants, and, where:

expression variables. 1.3 and 3.4 are constants, and,
ev1 is an expression variable, as defined in an
Expression Variable Line.
Expression containing: Example:
constants 4.7 + EV1 - GOLD.G/100
expression variables, and, In this example the .G tells the system to use the
element grades. grade information from element GOLD.
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Allowed Value Types and Functions, Continued
Allowed value types (continued)
Allowed value type Description

Expression containing: In the Economics Text File:
constants <rock-type>.Q (including the predefined total
expression variables, and, rock variable, ROCK) is used to indicate that the
quantities for an interval. 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 When creating an Economics Text File, the following arithmetic symbols can
symbols 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.
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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 Seven standard functions may be used in Economics Text Files. They are
functions described below.
Name and function Symbol Layout

Square root (X) SQ SQ(X)
This gives the square root of X.

Integral part of (X) I I(X)
This gives the largest integer that is not greater than

X.
Log (X) LOG Log(X)
This gives the natural logarithm of X.

Log 10 (X) LOG1 Log1(X)
This gives the log to the base 10 of X.

Exponential (X) E E(X)
This gives the exponential (base e) of X.

Minimum (X1,X2,X3....) MI MI(X1,X2,X3...)
This gives the minimum of a list of values.

Maximum (X1,X2,X3....) MA MA(X1,X2,X3...)
This gives the maximum of a list of values.
This is the minimum number of letters that needs to be provided.

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Special Two special functions are also available for use in Economics Text Files.
functions These are described below.
Name and function Symbol Layout

Select (X, Y1, Y2, Y3, Y4,......Yn) SE SE(X, Y1, Y2,
Y3,...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) R R(X, Y1, Z1, Y2,
Z2, Y3,
Ranges selects one of the Y values, according to the Z3,...Yn)
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.
This is the minimum number of letters that needs to be provided.

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Problems with The flexibility provided by the use of functions can sometimes lead to
using functions 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.
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Economics Text File Guidelines and Examples
Rules and Please note the following rules when creating or editing Economics Text Files.
guidelines
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
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: Here is an example of the structure of a simple Economics Text File.

structure
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>
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>
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Economics Text File Guidelines and Examples, Continued
Example: Here is an example of a simple Economics Text File.

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.
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Chapter 3: Spreadsheet Files
Overview
In this chapter This chapter contains the following two sections.
Section See Page

Section A: Spreadsheet Definition File 117
Section B: Spreadsheet Output File 132
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Section A: Spreadsheet Definition File
Overview
Topic See Page

Spreadsheet Definition File Layout 119
Spreadsheet Definition File Codes 120
Spreadsheet Definition File Guidelines and Examples 126
The Application of Spreadsheet Codes 128
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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 The Spreadsheet Definition File is used by the Print Results Program, which
that use the reads:
Spreadsheet
Definition File 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.
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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.
Information Line types are followed by a series of codes.

following line
types
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.
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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 Description and allowed attributes

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

INCREMENT The resource increment starting and ending number, and
percentage used.
Allowed attributes: /EN /EP /SN /SP.
INFLATION The inflation percentage, per annum.
INTERNAL The internal rate of return, expressed as a percentage.
This applies only to grand totals.
LIFE Length of project.
This applies only to grand totals
<method> A processing method.
Allowed attributes: /C /CD /L /TF /TG /TI.
<method>.<element> A processing-method/element combination.
Allowed attributes: /C /CD /GF /GG /GI /UF /UG /UI /UO.
<method>.<type> A processing-method/rock-type combination.
Allowed attributes: /C /CD /PC /TF /TG /TI.
<method>.<type>. Period, interval and grand totals
<element>
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.
MINDIL The mining dilution factor.
MINREC The mining recovery factor.
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PERIOD The period number.
Allowed attributes: nothing or /FR /LM .
RESUSED
The accumulative percentage of resource used.
ROCK
The total material mined - ore and waste.
Allowed attributes: /C /CD /H /HD /L /R /RD /TG /TM.
SELLCOST
The total selling cost.
SP_<n>
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.
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.
STRIP
The stripping ratio - unprocessed material/processed
material.
TERMINAL
The terminal resource value.
TIMECOST
Fixed costs.
<type>
A rock-type.
Allowed attributes: /C /CD /H /HD /L /MC /R /RC /RD
/TF /TG /TI /TM /TR /TT.
<type>.<element>
A rock-type/element combination.
Allowed attributes: /C /CD /GF /GG /GI /GM /GR /UF /UG
/UI /UM /UO /UR.
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VALUE
The total cash flow.
WASTE
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.
Attributes Attributes consist of a slash (/) and one or two letters.

The table below lists the various attributes and their meanings.
Attribute Description
/C Cash flow.
/CD Cash flow, discounted.
/CO Cut-off/cut-over.
/EN End number of increment.
/EP End percentage of increment used.
/FR Fraction.
/GF Grade of material from the stockpile to processing.
/GG Grade of material in the ground.
/GI Grade of material from the increment to processing.
/GM Grade of material mined.
/GR Grade of material rejected.
/GS Grade of material in the stockpile, at the end of the
period/interval.
/GT Grade of material to the stockpile.
/H Stockpile handling cost.
/HD Stockpile handling cost, discounted.
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Attributes (continued)
/L Throughput or global stockpile limit.
/LM Length of period, in months.
/MA Maximum cut-off.
/MC Unit mining cost.
/MI Minimum cut-off.
/PC Processing cost at the Reference Position.
/PR Price per unit.
/R Total rehabilitation value.
/RC Rehabilitation cost.
/RD Total rehabilitation value, discounted.
/RP Processing recovery percentage.
/RT Processing recovery threshold.
/S Total sales cost.
/SC Sales cost per unit.
/SD Total sales cost, discounted.
/SN Start number of increment.
/SP Start percentage of increment used.
/SR Stockpile recovery percentage.
/TF Tonnes from the stockpile to processing.
/TG Tonnes in the ground.
/TI Tonnes from an increment to processing.
/TM Tonnes mined.
/TR Tonnes rejected from processing or stockpiling.
/TS Tonnes in the stockpile, at the end of a particular
interval or period.
/TT Tonnes input to the stockpile.
/UF Units of an element from the stockpile.
/UG Units of an element in the ground.
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Attributes (continued)
/UI Units of an element from an increment to processing.
/UM Units of an element mined.
/UO Units of an element output from processing.
/UR Units of an element rejected.
/US Units of an element in the stockpile.
/UT Units of an element to the stockpile.
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Spreadsheet Definition File Guidelines and Examples
Rules and Please note the following rules and guidelines when creating or editing a
guidelines 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.
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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 The codes, listed above, give you access to almost every value you could
of spreadsheet want.
codes
If you find their sheer number confusing, you may find it helpful to refer to the
diagrams in the following topic.
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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 From
Stockpiles See Stockpile Details diagram Stockpiles
INCREMENTS To From PROCESSES

Processes Increment
See Increment See Process
Details diagram Details diagram
Rejected material Product Output
In this diagram:
Stage Codes that can be used

Material is mined:
From an increment. See:
Increment Details diagram, page 129.
- Some material is rejected. See:
Increment Details diagram, page 129.
- Some material is processed. See:
Increment Details diagram, page 129,
and,
Process Details diagram, page 130.
- Some material is sent to the See:
stockpiles. Increment Details diagram, page 129
Process Details diagram, page 130,
and,
Stockpile Details diagram, page 131.
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The Application of Spreadsheet Codes, Continued
Increment This diagram shows all of the codes that can be used in relation to the
details increment stage of mining.
Grade <sp_n>.<e>/GT
Units <sp_n>.<e>/UT
To Stockpiles <e>/UT
Tonnage <sp_n>/TT
<t>/TT
STOCKPILE/L
Increment
GENERAL
Ave mining CAF AVMINCAF
Ave processing CAF AVPROCAF GRADE
Discount rate DISCOUNT <m>.<e>/GG
Increment details INCREMENT/EN/EP/SN/SP <m>.<t>.<e>/GG
Inflation rate INFLATION <t>.<e>/GG
Mine life LIFE
Mining dilution MINDIL To
Mining limit ROCK/L
Mining recovery MINREC Processes
Period length PERIOD
Period number PERIOD/LM
Resource usage % RESUSED
Stripping ratio STRIP TONNAGE
Terminal value TERMINAL <m>/TG
<m>.<t>/TG
<t>/TG
ROCK/TG
UNITS
<m>.<e>/UG
<m>.<t>.<e>/UG
<t>.<e>/UG
Grade <t>.<e>/GR
Rehab rate <t>/RC
Rejected Rehab cost <t>/R/RD LEGEND
Material Tonnage
ROCK/R/RD
<t>/TR
<e>
<m>
element / product
method
Units <t>.<e>/UR <sp_n> stockpile number "n"
<t> rock type
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Process details This diagram shows all of the codes that can be used in relation to the
processing stage of mining.
From Increments From Stockpiles

Grade <m>.<e>/GI Grade <m>.<e>/GF
<m>.<t>.<e>/GI <m>.<t>.<e>/GF
<t>.<e>/GI <t>.<e>/GF
<sp_n>.<e>/GF
Tonnage <m>/TI Tonnage <m>/TF

<m>.<t>/TI <m>.<t>/TF
<t>/TI <t>/TF
<sp_n>/TF
Units <e>/UI Units <e>/UF

<m>.<e>/UI <m><e>/UF
<m>.<t>.<e>/UI <m>.<t>.<e>/UF
<t>.<e>/UI <t>.<e>/UF
<sp_n>.<e>/UF
Process
Cut-offs <m>.<t>.<e>/CO/MA/MI
Process method limit <m>/L
Processing costs:total <m>/C/CD
<m>.<t>/C/CD
Processing costs:unit <m>.<t>/PC
Production limit <e>/L
Product price <e>/PR
Recovery <m>.<t>.<e>/RP/RT
Rock type limit <t>/L
Selling total cost <e>/S/SD
Selling unit cost <e>/SC
Cash <m>.<e>/C/CD
<m>.<t>.<e>/C/CD
<t>/C/CD
Product <t>.<e>/C/CD
Output VALUE/C/CD
IRR INTERNAL
Units <e>/UO
<m>.<e>/UO
<m>.<t>.<e>/UO LEGEND
<t>.<e>/UO <e> element / product
<m> method
<sp_n> stockpile number "n"
<t> rock type
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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
Tonnage <sp_n>/TT
From <t>/TT
Increments STOCKPILE/L
Units <sp_n>.<e>/UT
<e>/UT
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 <sp_n>.<e>/GS
Tonnage <sp_n>/TS
Units <e>/US
<sp_n>.<e>/US
Grade <m>.<e>/GF
<m>.<t>.<e>/GF
To Processes <t>.<e>/GF
<sp_n>.<e>/GF
Tonnage <m>/TF
<m>.<t>/TF
<t>/TF
<sp_n>/TF
Units <e>/UF
<m>.<e>/UF
<m>.<t>.<e>/UF
<t>.<e>/UF
<sp_n>.<e>/UF
LEGEND
<e> element / product
<m> method
<sp_n> stockpile number "n"
<t> rock type
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Section B: Spreadsheet Output File
Overview
In this section This section contains the following topics
Topic See Page

Spreadsheet Output File Layout and Format 134
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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 The Spreadsheet Output File is created by the Print Results Program, using:
Spreadsheet
a Result Binary File, and,
Output File is
created a Spreadsheet Definition File.
Using the The Spreadsheet Output File is used by the customer and input into a
Spreadsheet spreadsheet package.
Output File
This allows for further analysis and plotting of the optimization results.
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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.
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Spreadsheet Output File Layout and Format, Continued
Changing the The following table describes the procedure for changing the format of the
format of the Spreadsheet Output File.
Spreadsheet
Output File
Step Action
1. Open and view the oc.ini file using a text editor or word processor.
2. 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.
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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 MILL
GOLD Rock Mill VALUE GOLD
Period strip /CO /tg /ti /CD /UO
0 0 0 0 0 -18900000 0
1 1.65 0.052 1989903 750000 12150343 62794
2 1.57 0.049 1929552 750000 10826542 61840
3 1.51 0.047 43025 17118 220994 1394
3 1.42 0.047 1774025 732882 6991123 48315
4 1.36 0.044 1771249 750000 6398566 48877
5 1.32 0.042 440806 189946 1454767 12272
5 1.51 0.042 1405785 560054 4150637 35934
6 1.47 0.000 1854854 750000 4994737 47749
7 1.43 0.000 755280 311075 1853257 19599
7 3.02 0.000 1755699 436374 2161138 27540
8 3.02 0.000 2313021 575540 2588409 36296
8 0 0.000 30240 30240 240549 2204
Grand totals:
MILL
Rock Mill VALUE GOLD
Blank strip Blank /tg /ti /CD /UO
0 1.74 0 16063440 5853229 35131060 404815
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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 See Page

Chapter 1: Auxiliary Files and Computer Techniques 137
Chapter 2: Economic Factors 152
Chapter 3: Mining Factors 171
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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 See Page

Auxiliary Files 139
Log Files 141
Running the Programs in Batch Files 146
Simplifying the Text Files to Improve the Speed of Processing 151
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Auxiliary Files
Introduction This topic discusses the various auxiliary files that:

come with the Opti-Cut package, or,
are created by the programs.
Initialization The initialization file (the ini file) is a text file. The Opti-Cut initialization
File 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.
- Currency - this sets the symbol to use for currency. The default is $.
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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.
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Log Files
Introduction: Log files are files that contain abbreviated prompts and answers. They can be
what are used to re-run a program using the previously logged set of prompts and
log files? 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 Here is an example of a log file for running the Optimization Program.
log file
PrintFile #octut1
EconomicsBinaryFile octut1
ResultBinaryFile #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 Opti-Cut has a different log file extension for each of the main programs.
extensions
Here is a list of default log file extensions.

extension
Log files for the:

Sequence Input Program .los
List Details Program .lol
Compaction Program .loc
Economics program .loe
Optimization Program .loo
Print Results Program .lop
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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 A full description of logging commands follows.

commands
!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
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.
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!USE Command
How to use Type:

!USE <filename>
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.
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.
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!DEMO Command
How to use Type:

!DEMO <filename>
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.
Abbreviation !D
Restriction You cannot use the !DEMO command if you are already
logging.
!ASK Command
How to use Type:

!ASK
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.
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Example: using If you type !LOG <filename> in response to any prompt, the program will
the !LOG start recording (or logging) your answers in <filename>.
command
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.
Tutorials and For practice using log files, see:

exercises
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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 The Batch Processing Program (OC) controls the programs:
Processing
Sequence Input
Program
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 ().
OC <project or run name>

Example:
oc octut1
where octut1 is the project or run name.
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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.
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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 check that the files exist
IF NOT EXIST TST91.SBI GOTO SBIERROR
IF NOT EXIST TST91.ETX GOTO ETXERROR
IF NOT EXIST TST91.LOE 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
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Using files as Another way to automate user input is to create a file containing the responses
redirected input required for the keyboard. Then to use this file as a redirected input file, under
files 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
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Using the The oc??.ok file (where oc?? is the Command Line name) is a file that is
oc??.ok file to created by each program when a run is completed successfully. This file is
check the run 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.
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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 If you find that the Opti-Cut runs are taking too long, then it may pay you to
descriptions 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.
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Simplifying the Text Files to Improve the Speed of
Processing, Continued
Compaction You can use the Compaction Program to reduce the number of groups and/or
and bias 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 File size OCOP time First cut-off NPV result
None 552,960 6 min 42 sec 0.055 35,019,822
0.001 73,728 1 min 12 sec 0.054 35,024,667
0.010 14,336 13 sec 0.054 35,023,659
0.020 10,240 9 sec 0.054 35,042,876
0.050 6,144 3 sec 0.054 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.
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Chapter 2: Economic Factors
Overview
Topic See Page

Constant Dollars 154
Prices 155
Costs - General 159
Costs - Specific 160
The Application of Costs 164
Cost Estimation Sheets 168
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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 Prices and costs only have to change if there are other factors apart from
and cost values inflation to be considered.
have to change
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 For more information about:

information
Prices, see page 155.
Costs, see page 159.
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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 Where there is no real change in price with time in todays dollars, you would
in price 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 Where there is a constant contract price over a period of time, in todays
contract price dollars we would suffer a decrease in value over time. The values entered into
over a period of Opti-Cut must be decreased by a rate to allow for inflation.
time
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.
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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.
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Prices, Continued
Steadily If you feel that the price of your product will decrease each year due to market
decreasing price 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.
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Prices, Continued
Constant and In another situation, the price of a product might remain constant for a period
then declining 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.
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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 Note: if you are a Four-D or Four-X user, costs for Opti-Cut are NOT
Four-X users calculated in the same way as they are for Four-D or Four-X.
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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.
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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.
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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 The rehabilitation cost is the cost per tonne of rehabilitating material of a
costs 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.
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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.
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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.
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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.
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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 As on-site administration costs will usually stop if mining is stopped, they
costs 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 Repayment (principal and interest) of a bank loan taken out to cover initial
initial costs 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.
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Bank loans for Although bank loan repayments themselves are not included, some of the
recoverable items that the loan was used to pay for may be included.
costs
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 It is often necessary to do grade control work on waste as well as ore. In this
costs 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.
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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 Total cost Per tonne

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 unit mining cost
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Cost Estimation Sheets, Continued
Processing costs The following is a processing cost estimation sheet.
PROCESSING COSTS Total cost Per tonne

Estimated tonnage
Crushing and grinding
Treatment plant reagents
Maintenance
Mill services
Ore handling (additional costs)
Stockpile management
Grade control
Total unit processing cost
Rehabilitation The following is a rehabilitation cost estimation sheet.

costs
REHABILITATION COSTS Total cost Per tonne

Estimated tonnage
Waste dump rehabilitation
Acid mine drainage measures
Revegetation
Total unit rehabilitation cost
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Cost Estimation Sheets, Continued
Selling costs The following is a selling cost estimation sheet.
SELLING COSTS Total cost Per unit

Estimated tonnage
Assaying and sampling
Smelting
Refining
Transporting
Marketing
Insurance
Supervision
Bullion transportation
Total unit selling cost
Time costs The following is a time cost estimation sheet.
TIME COSTS Per annum Per month

Administration salaries and wages
Supplies and services
Accommodation supplies and services
Communications
Insurance
Legal
Safety and training
Total time cost
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Chapter 3: Mining Factors
Overview
Topic See Page

Iteration 172
Stockpiles 173
Processing Throughput Factors 179
Pre-stripping 181
Processing Recovery (non linear recovery) 182
Cut-offs 183
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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.
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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 In Opti-Cut, there are two different ways in which stockpile material can be
material 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.
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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
Decisions made
on cash flow
Product
Stockpile From Opti-Cuts point of view:

grades
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.
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Multi-element The cut-off limits can be set for one or more elements. Material will be passed
stockpiles 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.
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Stockpile There are many variables associated with stockpiles.

variables
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 and cut-offs

stockpiles
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).
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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.
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28 April, 1998
More than one If possible, it will pay to have more than one stockpile. For example, you can
stockpile 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 Rehabilitation costs are not an issue with stockpiles because if the material is
costs in the stockpile, it is assumed that it will be processed and not sent to waste.
Tutorials and For tutorials and exercises using stockpiles, see:

exercises
Tutorial 3 - Using a Stockpile, on page 237.
Exercise 4 - Multi-element Stockpiles, on page 256.
178
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28 April, 1998
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 MILL OREA.Q/1.05 + OREB.Q

TL 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).
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28 April, 1998
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 THRFACT 1.05 P5/1.0

TG 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.
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28 April, 1998
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.
Example The following lines in the Economics Text File would allow for pre-stripping.
MT MILL ORE 5
MTC Gold I 30 P3/0
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.
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28 April, 1998
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%.
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28 April, 1998
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 If there are multiple cut-offs, then a number of cut-offs are required for each
cut-offs period or interval, and Opti-Cut tries a set of cut-offs for each step of the
search.
More than one If more than one processing method is available for a particular type of rock,
processing each group of that type of rock is tested against each of the methods in turn,
method 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.
183
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28 April, 1998
Cut-offs, Continued
The way When multiple cut-offs are in use, Opti-Cut selects material for processing in
multiple cut-offs 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
184
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28 April, 1998
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 See Page

Tutorial 1 - A Simple Run Through of the Main Programs 189
Exercise 1 - Automating the Process 215
Tutorial 2 - Four-D and Four-X Interfaces and Sequence 222
Compaction
Exercise 2 - Varying the Compaction 234
Tutorial 3 - Using a Stockpile 237
Exercise 3 - Adjusting Throughput 245
Tutorial 4 - Multi-element Deposits 250
Exercise 4 - Multi-element Stockpiles 256
185
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 The tutorials and exercises make use of a small set of demonstration data files
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 Description
octut1.stx A Sequence Text File for a small mine. It contains details
of the material to be mined. The sequence represents a
small gold deposit.
octut1.etx An Economics Text File. It contains information about
the price and costs associated with the project in Tutorial
1.
fdtut.stx A Sequence Text File produced by Four-D. It is used in
Tutorial 2.
octut2.etx An Economics Text File. It contains information about
the price and costs associated with the project in Tutorial
2.
octut2.ssd A Spreadsheet Definition File. It is used in Tutorial 2.
octut4.stx A Sequence Text File for a two element
copper/molybdenum deposit. It is used in Tutorial 4.
octut4.etx An Economics Text File that contains information about
the price and costs associated with the project. It is used
in Tutorial 4.
186
28 April, 1998
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 Opti-Cut Programs output the reports of their runs to what are called print
printing files.
print files
You can view or print out a print file:
by loading it into a word processor or text editor
- or -
The following table shows how you can view or print out a print file from the
Command Line.
On a PC On UNIX
To view a print file, try: To view a print file, try:
EDIT <filename and extension> more <filename and extension>
- or - - or -
TYPE <filename and extension> | pg <filename and extension>
MORE
To print a print file try: To print a print file, try:

print octut1.prs lp octut1.prs
187
28 April, 1998
Preparation, Continued
In the tutorials In the screen displays:

and exercises - the symbol indicates that you press the Enter key.
On a PC, the alphabetic case of the filenames you use is irrelevant. On
UNIX computers, where case is important, it is usual to use lower case.
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 There are three ways that you can run the Opti-Cut programs:
programs
interactively
with the Batch Processing Program, or,
using logged commands.
We will firstly go through the interactive method.
Important to It is important to keep the all of the files that you generate in the tutorials
keep files and exercises. This is because some of them are used again in the tutorials
and exercises that follow.
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28 April, 1998
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 See Page

Step 1: Producing the Sequence Binary File with the Sequence 190
Input Program
Step 2: Producing the Economics Binary File with the 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 211
Marginal Cut-off Scenario
File Summary 214
What you have Learnt 215
189
28 April, 1998
Step 1: Producing the Sequence Binary File with the
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.
Procedure Start up the Sequence Input Program (OCSE).

If you are using:
The Menu, choose the Sequence Input Program from the Menu.
OCSE
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 Use
Print file name Call the print file octut1.prs
Sequence Text File name Use the Sequence Text File provided,
octut1.stx
Sequence Binary File name 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
28 April, 1998
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:
191
28 April, 1998
Examining the Now examine the print file (octut1.prs) in detail by printing it out, or by
print file 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 : octut1.stx
Sequence Binary File : octut1.sbi
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
------------------------------------------------------------------------------
--------- ------- | ------- -------- ----- ----- -----
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
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.
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28 April, 1998
Step 2: Producing the Economics Binary File with the
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.
Prompt Use
Print file name Call the print file octut1.pre
Sequence Binary File Accept the default [octut1.sbi]
offered by the system
Economics Text File Use the Economics Text File
provided, octut1.etx
Economics Binary File name 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.
193
28 April, 1998
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.
194
28 April, 1998
Examining the Now take the time to examine the print file (octut1.pre) in detail (see page
print file 187 for guidelines). The print file should look like the following.
Whittle Opti-Cut CREATE ECONOMIC DATA BASE Page 1
Rev 1.00
------------------------------------------------------------------------------
FILE INFORMATION
Economics Text File : octut1.etx
Economics Binary File : octut1.ebi
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
------------------------------------------------------------------------------
Sequence description : Opti-Cut, One increment gold example

Economics description : 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. Rock- Processing 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
195
28 April, 1998
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.
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28 April, 1998
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.
Prompt Use
Print file name Call the print file octut1.pro
Economics Binary File Use the default [octut1.ebi]
Result Binary File name Call the Result Binary File
octut1.rbi
Do you want to optimize by period? 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.
197
28 April, 1998
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.
198
28 April, 1998
Program, Continued
Whittle Opti-Cut PERFORM THE OPTIMIZATION Page 1

Rev 1.00
------------------------------------------------------------------------------
FILE INFORMATION
Economics Binary File : octut1.ebi
Result Binary File : octut1.rbi
Optimization by period
FINDING THE MARGINAL CUT-OFFS
Period Increment End% Ex-stock Process Rocktype Element Cut-off

1 1 9 MILL ORE GOLD 0.0270
10 1 91 MILL ORE GOLD 0.0270
11 1 100 MILL ORE GOLD 0.0270
The NPV with discount mode = 1 is 41,622,212
ITERATION 1 OF THE OPTIMIZATION (Press ESC to stop at end)

10 1 100 MILL ORE GOLD 0.0286
The NPV with discount mode = 1 is 42,462,419 Change is 1.998479%

10 1 100 MILL ORE GOLD 0.0288
The NPV with discount mode = 5 is 40,476,015 Change is -0.006383%
199
28 April, 1998
Program, Continued
Whittle Opti-Cut PERFORM THE OPTIMIZATION Page 2

Rev 1.00
------------------------------------------------------------------------------

10 1 100 MILL ORE GOLD 0.0288
A Result Binary File was created
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).
200
28 April, 1998
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.
Prompt Use
Print file name Call the print file octut1.prp
Result Binary File Accept the default [octut1.rbi]
A report can be produced for Accept the default [Y] for an
marginal (economic) cut-offs or Opti-Cut report
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.
201
28 April, 1998
Program, Continued

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
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?.
Examining the The detailed report is output to the print file, octut1.prp.
print file
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.
202
28 April, 1998
Program, Continued
Preliminary The report contains the following preliminary information:

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
------------------------------------------------------------------------------
FILE INFORMATION
Result Binary File : octut1.rbi
Economic Binary File : 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. Rock- Processing 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
203
28 April, 1998
Program, Continued
Whittle Opti-Cut PRINT OPTIMIZATION RESULT SUMMARY Page 2

Rev 1.00
------------------------------------------------------------------------------
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 The remainder of the print file consists of detailed information about the
information processing for each interval.
The first interval 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
==============================================================================
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.
204
28 April, 1998
Program, Continued
First line
The first line for a typical interval is explained below.

==============================================================================
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.
205
28 April, 1998
Program, Continued
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.

==============================================================================
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.
206
28 April, 1998
Program, Continued
Third line
The third line provides details of element production. It is explained below.

==============================================================================
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.
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28 April, 1998
Program, Continued
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.

==============================================================================
1 Rock 1286326 1.57 -1607908 -1461734
MILL ORE 500000 -4000000 -3636364
GOLD 39241 0.078 0.051 13067163 11879239
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.
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28 April, 1998
Program, Continued
Totals lines
The printout for each interval ends with totals information.

==============================================================================
1 Rock 1286326 1.57 -1607908 -1461734
MILL ORE 500000 -4000000 -3636364
GOLD 39241 0.078 0.051 13067163 11879239
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.
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28 April, 1998
Program, Continued
Grand totals
At the end of the report, the grand total figures appear, together with the mine
life in years.

==============================================================================
------------------------------------------------------------------------------
Rock 11420960 1.28 -14276200 -8935944
MILL ORE 4998568 -39988547 -24573853
GOLD 373572 0.075 124399568 77056899
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 After the grand totals information, there is a section that compares the
between cut-off Opti-Cut results to those of a standard marginal cut-off evaluation.
scenarios
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.
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28 April, 1998
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.

Prompt Use
Print file name octut1a
Result Binary File Accept the default [octut1.rbi]
Opti-Cut report Type N (you will get the marginal cut-off
results)
Interval entries Accept the default [Y] (as before)
Spreadsheet output Type N (as before)
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.
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28 April, 1998
Marginal Cut-off Scenario, Continued
The following graph shows a comparison between optimized cut-offs and

marginal cut-offs.
Comparison Between Marginal and Optimized

Cut-offs
.06
.05
.04
Cut-off
.03
.02
.01
.00
1 3 5 7 9 11
Period
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.
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28 April, 1998
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
6
Cash flows (millions)
0
1 3 5 7 9 11
Period
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.
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28 April, 1998
File Summary
Introduction The following diagrams give a summary of the files used by each of the
programs in this tutorial.
octut1.stx Sequence Input octut1.prs

Program octut1.sbi
(OCSE)
octut1.etx Economics Input octut1.pre

(octut1.sbi) Program octut1.ebi
(OCEC)
octut1.ebi Optimization Program octut1.pro

(octut1.sbi) (OCOP) octut1.rbi
octut1.rbi Print Results Program octut1.prp

(octut1.ebi) (OCPR) octut1a.prp
(octut1.sbi) (on the re-run of OCPR)
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28 April, 1998
What you have Learnt
What you have In working through this tutorial, you have:

learnt
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 Although you have now completed this tutorial, it is important to keep the
keep files files that you generated, including the print files, because some of them are
used again in the tutorials and exercises that follow.

information
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.
Files
- 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.
Other
- Cut-offs, see page 183.
- NPV, see page 263.
- Discount mode, see page 74.
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28 April, 1998
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 See Page

Step 1: Copying and Editing the Text Files 217
Step 2: Using the Batch Processing Program 218
File Summary 220
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28 April, 1998
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 If you are unsure about how to copy the files, refer to the following table.
files
Step On a PC On UNIX
1. At the Command Line, type: At the Command Line, type:
copy octut1.stx exer1.stx cp octut1.stx exer1.stx
2. At the Command Line, type: At the Command Line, type:

copy octut1.etx exer1.etx cp octut1.etx exer1.etx
Editing the Now you need to edit the Economics Text File, exer1.etx, and change the
Economics Text time costs, in the line starting with TC, from 500K to 1M.
File
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 Action
1. Open and view exer1.etx using a text editor or word processor in
pure text mode.
2. 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.
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28 April, 1998
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 .
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.
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28 April, 1998
Step 2: Using the Batch Processing Program, Continued
Examining the The detailed report is printed to file exer1.prp.

print file
Take the time to examine the report in detail.
The first interval is shown below.

==============================================================================
1 Rock 1317225 1.63 -1646532 -1496847
MILL ORE 500000 -4000000 -3636364
GOLD 39570 0.079 0.052 13176675 11978796
The grand totals information and the comparison between the marginal cut-
offs and the Opti-Cut cut-offs are shown below.

==============================================================================
------------------------------------------------------------------------------
Rock 11420960 1.33 -14276200 -9008884
MILL ORE 4904791 -39238327 -24284610
GOLD 369486 0.075 123038837 76768787

------------------------------------------------------------------------------
Comparing The output, in exer1.prp, shows a slightly different set of cut-offs from those
output: in Tutorial 1. It also shows an improvement in profit above marginal cut-off
Exercise 1 and evaluation of 875,981. This is a 2.4% improvement.
Tutorial 1
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.
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28 April, 1998
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.
exer1.stx exer1.prs
exer1.etx exer1.sbi
Batch Processing exer1.pre
(exer1.sbi) Program exer1.ebi
(exer1.ebi) (OC) exer1.pro
(exer1.rbi) exer1.rbi
exer1.prp
220
28 April, 1998
What you have In working through this exercise you have:

learnt
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.

information
The Batch Processing Program, see page 146.
Files
Other
221
28 April, 1998
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 See Page

Step 1: Producing the Initial Sequence Binary File with the 223
Step 2: Producing the Compacted Sequence Binary File with 225
the Compaction Program
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 230
Spreadsheet Output
222
28 April, 1998
Step 1: Producing the Initial Sequence Binary File with the
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 Use
Print file name fdtut
Sequence Text File fdtut
Sequence Binary File fdtut
name
The program then starts its run, which takes less than a minute to complete.
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28 April, 1998
Step 1: Producing the Initial Sequence Binary File with the
Examining the The print file, fdtut.prs, is very long.

print file
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
------------------------------------------------------------------------------
--------- ------- | ------- -------- ----- ----- -----
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 |
******************************************************************************
A Sequence Binary File was created
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.
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28 April, 1998
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.
Prompt Use
Print file name octut2
1. Sequence Text File Accept the default [2]
2. Sequence Binary File
Sequence Binary File name Accept the default [fdtut.sbi]
New Sequence Binary File octut2
name
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.
Prompt Use
Compact the increment Accept the default [Y]
information?
Desired increment tonnage 4m (m is million)
Compact the grade Accept the default [Y]
information?
225
28 April, 1998
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 Use
Grade discrimination 0.01
The original Sequence Binary File is checked and then reorganised into the
increment and grade ranges specified. The new file is written out.
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28 April, 1998
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.
Prompt Use
Print file name !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 Use
Print file name #octut2
Sequence Binary File name Accept the default [octut2.sbi]
Economics Text File name octut2
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.
227
28 April, 1998
Step 3: Producing the Economics Binary File using a Log
File, Continued
Examining the The log file, octut2.loe, contains a list of abbreviated prompts and your
log file responses.
PrintFile #octut2
SequenceBinaryFile octut2
EconomicsTextFile octut2
EconomicsBinaryFile #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.
228
28 April, 1998
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 Use
Economics Binary File name Accept the default [octut2.ebi]
Result Binary File name #octut2
Optimize by period? Accept the default [Y]
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28 April, 1998
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 The Spreadsheet Definition File is a small text file that lists the particular items
Spreadsheet that you want to output.
Definition File
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
230
28 April, 1998
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.
Spreadsheet The Spreadsheet Output File contains the output itself.

Output File
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.
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28 April, 1998
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 Use
Result Binary File name Accept the default [octut2.rbi]
Opti-Cut report Accept the default [Y]
Interval entries Accept the default [Y]
Spreadsheet output Accept the default [Y]
Spreadsheet Definition File octut2
name
Spreadsheet Output File name #octut2
Modify number of decimal Accept the default [N]
places?
The run is very quick.
232
28 April, 1998
Examining the Now take the time to examine the Spreadsheet Output File, octut2.sso.
spreadsheet
output
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 MILL
GOLD Rock Mill VALUE GOLD
Period strip /CO /tg /ti /CD /UO
0 0 0 0 0 -18900000 0
1 1.65 0.052 1989903 750000 12150343 62794
2 1.57 0.049 1929552 750000 10826542 61840
3 1.51 0.047 43025 17118 220994 1394
3 1.42 0.047 1774025 732882 6991123 48315
4 1.36 0.044 1771249 750000 6398566 48877
5 1.32 0.042 440806 189946 1454767 12272
5 1.51 0.042 1405785 560054 4150637 35934
6 1.47 0.000 1854854 750000 4994737 47749
7 1.43 0.000 755280 311075 1853257 19599
7 3.02 0.000 1755699 436374 2161138 27540
8 3.02 0.000 2313021 575540 2588409 36296
8 0 0.000 30240 30240 240549 2204
Grand totals:
MILL
Rock Mill VALUE GOLD
Blank strip Blank /tg /ti /CD /UO
0 1.74 0 16063440 5853229 35131060 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).
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28 April, 1998
What you have In working through this tutorial, you have:

learnt
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.

information
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.
Files
- Log files, see page 141.
- Spreadsheet Definition Files, see page 117.
- Spreadsheet Output Files, see page 132.
234
28 April, 1998
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.
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28 April, 1998
Exercise 2 - Re-running Tutorial 2 and Varying the
Compaction, Continued
Examining the Examine the print files from Exercise 2a and 2b to find the optimization times
print files and the cut-off and NPV results.
Using these, together with the results from Tutorial 2, draw your own
conclusions about compaction.

information
The programs
- The Compaction Program, see page 60.
- The Batch Processing Program, see page 146.
Files
- Copying files, see page 217.
- Spreadsheet Definition Files, see page 117.
- Spreadsheet Output Files, see page 132.
Other
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28 April, 1998
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 See Page

Step 1: Copying and Editing Files 238
Step 2: Using the Batch Processing Program 240
Step 3: Doing a Cash Flow Analysis 242
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28 April, 1998
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 The mine in this project contains two types of rock from which we want to
information 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.
238
28 April, 1998
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.
239
28 April, 1998
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.
Procedure 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.
Examining the The results are located in the print file, octut3.prp.
print file
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

==============================================================================
------------------------------------------------------------------------------
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
Total capital expenditure -18900000 -18900000
Internal rate of return % 67.47 ---------- ----------

------------------------------------------------------------------------------
240
28 April, 1998
Step 2: Using the Batch Processing Program, Continued
Compare with Tutorial 2 results, located in print file, octut2.prp.
Tutorial 2 Results

==============================================================================
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
Total capital expenditure -18900000 -18900000
Internal rate of return % 60.63 ---------- ----------

------------------------------------------------------------------------------
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).
241
28 April, 1998
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.
Procedure 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.
Sulphide ore A comparison between optimized cut-offs and marginal cut-offs for sulphide
cut-offs ore is shown below.
Comparison Between Optimized and Marginal

Cut-offs
.07
.06
.05
Cut-offs
.04
.03
.02
.01
.00
1 3 5 7 9
Period
Optimized cut-offs Marginal cut-offs
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.
242
28 April, 1998
Step 3: Doing a Cash Flow Analysis, Continued
Annual rock A plot of the annual rock tonnages (in millions) shows the peak usage for both
tonnages the optimized and marginal cut-off scenarios.
Comparison Between Rock Tonnages

3.5
3.0
Rock tonnage (millions)
2.5
2.0
1.5
1.0
0.5
0.0
1 2 3 4 5 6 7 8 9
Period
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.
243
28 April, 1998
Step 3: Doing a Cash Flow Analysis, Continued
Discounted cash A comparison of the discounted cash flows for optimized cut-offs and
flow 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 6 8 10
Period
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.
244
28 April, 1998
What you have In this tutorial you have learnt how to apply a simple stockpile simulation and
learnt 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.

information
Files
Other
- Stockpiles, see page 173.
245
28 April, 1998
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 See Page

Exercise 3a - Making Stockpile Usage Independent of Rock 247
Limit
Exercise 3b - Altering the Mining Throughput Limit 248
246
28 April, 1998
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.
247
28 April, 1998
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 is the Throughput Limit Line.
ROCK is the total amount of material mined.
A indicates that throughput limits are per annum.
3M 6/4M 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.
248
28 April, 1998
Exercise 3b - Altering the Mining Throughput Limit, Continued
Examining the Examine the print files (exer3a.prp and exer3b.prp) and compare the results
print files of the two alternatives.

information
Files
Other
- Processing throughput factors, see page 179.
249
28 April, 1998
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.
Background 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 (%)
Copper (%) * 0.00-0.025 0.025-0.050 0.050-0.075 0.075-0.100 0.100+
0.00-0.10 T 3,530,882
C
M
0.10-0.20 T 393,047 319,877 228,856 135,482 57,983
C .1255 .1648 .1583 .1886 .1408
M .0166 .0323 .0607 .0881 .1157
0.20-0.30 T 681,207 494,463 310,102 215,195 27,485
C .2501 .2589 .2530 .2291 .2561
M .0115 .0290 .0639 .0900 .1222
0.30-0.40 T 1,192,161 621,113 408,209 134,212 30,440
C .3413 .3239 .3617 .3565 .3698
M .0126 .0419 .0604 .0906 .1402
0.40-0.50 T 543,456 247,007 77,359 57,327 30,894
C .4529 .4574 .4578 .4669 .4558
M .0062 .0358 .0563 .0877 .1150
0.50-0.60 T 481,906 306,961 202,690 105,853 86,051
C .5516 .5650 .5453 .5614 .5738
M .0124 .0384 .0679 .0849 .1520
0.60-0.70 T 371,244 275,364 230,834 88,653 91,176
C .6476 .6303 .6547 .6521 .6387
M .0133 .0294 .0638 .0851 .1231
0.70+ T 2,511,126
C 1.0241
M .0592
* T=tonnes, C=average copper % grade, M=average molybdenum % grade
250
28 April, 1998
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.
251
28 April, 1998
Procedure and Discussion
Procedure Run the Batch Processing Program either from the Menu or from the
Command Line. Use the project name octut4.
Examining the The output is contained in octut4.prp.

print file
The grand totals information is shown below.

------------------------------------------------------------------------------
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

------------------------------------------------------------------------------
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.
252
28 April, 1998
Procedure and Discussion, Continued
What material What material should be passed to the MILL?

should be
passed to the
Let us look at the details for the first period, as an example.
MILL?

==============================================================================
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
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.
253
28 April, 1998
Equivalent The equivalent metal is calculated as follows:

metal
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.
254
28 April, 1998
Molybdenum
0.15
Copper 0.623

information
Files
Other
255
28 April, 1998
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 See Page

Exercise 4a: Single Stockpile 257
Exercise 4b: Multiple Stockpiles 259
Exercise 4c: Using Both Elements to Control Stockpiles 260
256
28 April, 1998
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 To preserve the tutorial information, copy:

files
octut4.sbi to exer4a.sbi, and,
octut4.etx to exer4a.etx.
Editing the Upon examining the print report (octut4.prp), it can be seen that the copper
Economics Text cut-off varies from 0.62 to 0.36. This would suggest that stockpiling
File 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 0 .15
SPD CU R 100
SPD MO R 100
SPD CU I .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.
257
28 April, 1998
Exercise 4a: Single Stockpile, Continued
Procedure Next, run the Batch Processing Program.

The programs will take several minutes to run.
Examining the Examining the report output will show that:

print file
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.
258
28 April, 1998
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.

files
octut4.sbi to exer4b.sbi, and,
octut4.etx to exer4b.etx.
Editing the Edit the Economics Text File by adding the following lines.
Economics Text
File
MF S 0
SP ORE 0 .15
SPD CU R 100
SPD MO R 100
SPD CU I .40
SPD CU A .50
SP ORE 0 .15
SPD CU R 100
SPD MO R 100
SPD CU I .50
SPD CU A .60
SP ORE 0 .15
SPD CU R 100
SPD MO R 100
SPD CU I .60
Procedure Run the Batch Processing Program.
Examining the Examine the print file.

print file
259
28 April, 1998
Exercise 4c: Using Both Elements to Control Stockpiles
Introduction The third option is to control both elements.

files
octut4.sbi to exer4c.sbi, and,
octut4.etx to exer4c.etx.
Editing the Edit the Economics Text File by adding the following lines.
Economics Text
File
MF S 0
SP ORE 0 .15
SPD CU R 100
SPD MO R 100
SPD CU I .35
SP ORE 0 .15
SPD CU R 100
SPD MO R 100
SPD CU I .20
SPD CU A .35
SPD MO I .02
SP ORE 0 .15
SPD CU R 100
SPD MO R 100
SPD CU I .00
SPD CU A .20
SPD MO I .06
The following diagram illustrates the relationship between the lowest mill cut-
off without stockpiles (the sloping line) and the proposed stockpile limits.
0.10
0.087 SP_3
0.08
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
260
28 April, 1998
Exercise 4c: Using Both Elements to Control Stockpiles,
Continued
Procedure Run the Batch Processing Program.
Examining the Examine the print file.

print file

information
Files
Other
261
28 April, 1998
Appendices
Overview
In this part This part contains the following appendices.
Appendix See Page

Appendix A: NPV, Discount Rate and Inflation 262
Appendix B: How the Optimization is Achieved 263
Appendix C: Program Limits 268
Appendix D: Error Messages 269
Appendix E: Requests for Program Enhancement 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:
n
NPV = Rt C
t =1 (1+ k )
t
Where C = the initial (or capital) cash outlay for the project.
Rt = annual net cash inflows generated by the project,
in period t.
n = the life of the project.
k = 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).
263
Glossary
28 April, 1998
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.
Topic See Page

Special Costs 265
The Steps Involved in Optimization 268
264
Glossary
28 April, 1998
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.
266
Glossary
28 April, 1998
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 If the project is mill limited, both the delay and the change costs should be
project 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.
267
Glossary
28 April, 1998
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 rock-
types, 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 Limit
Number of elements and products 10
Number of cut-offs 100
Number of rock-types 30
Number of processing methods 30
Number of processing-method/rock-types 30
Number of expressions 20
Number of intervals or periods 999
Number of throughput limit groups 10
Number of throughput limits 10
Number of stockpiles 20
Number of spreadsheet codes in a line 50
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.
269
Glossary
28 April, 1998
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 The error messages produced by Opti-Cut fall into three broad categories.
messages
These are:
data checks
problem traps, and,
system error messages.
Topic See Page

Data Checks 271
Problem Traps 272
System Error Messages 273
270
Glossary
28 April, 1998
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.
271
Glossary
28 April, 1998
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.
272
Glossary
28 April, 1998
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.
273
Glossary
28 April, 1998
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.
274
Glossary
28 April, 1998
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 (61 3) 9857 8800

USA Facsimile 1 800 942 2460
Canada Facsimile 1 800 665 4312
Name:
Company:
Suggestion:
275
Glossary
28 April, 1998
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 This is a weighted average.

CAF
See Positional CAFs.
Average This is a weighted average.

processing CAF
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.
CAF See Cost adjustment factors, below.
Capital Opti-Cut deals with two types of capital expenditure:

Expenditure
initial, and,
Capital
Injection 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.
276
Glossary
28 April, 1998
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 This is the difference between the total cost of blasting, loading, hauling and
processing 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.
277
Glossary
28 April, 1998
Glossary, Continued
Discount mode The Optimization Program calculates the NPVs for a number of
discount modes.
These modes are described below.
Mode Description
increment.
Other cash flows occur continuously throughout the interval, as
though each days cash flow was discounted with the fraction
for that day.
All cash flows occur at the start of the period.
All cash flows occur at the end of the period.
Note: Mode=3 is the default mode for reporting.
All capital injections occur at the start of the period.
Other cash flows occur at the end of the period.
increment.
Other cash flows occur at the end of the interval.
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.
278
Glossary
28 April, 1998
Glossary, Continued
Discounted cash A dollar that we get today is more valuable to us than a dollar that we expect
flow 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 A set of economic values and process definitions which may change over time,
scenario that constitutes one possible economic environment for this project.
Economics A binary file which carries the information from the Economics Text File in a
Binary File form more suitable for optimization.
Economics Text A text file that carries detailed information about the economic scenario and
File 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.
279
Glossary
28 April, 1998
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.
G&A costs See Time costs.
Generalised This may be used to prepare the mining sequence file for Opti-Cut and,
Mining Package probably, to complete the details of the design after the final optimization.
GMP Generalised Mining Package see above.
Grade The units of an element in a tonne of mineralised material.
Grade The smallest difference in grade which is significant for an element.

discrimination
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.
280
Glossary
28 April, 1998
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 The amount spent before the first day of operation of the mine. This amount is
expenditure not discounted.
281
Glossary
28 April, 1998
Glossary, Continued
Initialization A small text file that is used to retain a record of the most recently used
File 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.
Internal rate of The discount rate (percentage) at which the NPV of the project is zero.
return (IRR)
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.
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.
282
Glossary
28 April, 1998
Glossary, Continued
Maximum A cut-off specified by the user. The Optimization Program will not raise a
cut-off grade cut-off or cut-over above this limit.
Minimum A cut-off specified by the user. The Optimization Program will not lower the
cut-off grade 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 Not all the ore that you intend to process actually reaches the processing mill.
recovery
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.
283
Glossary
28 April, 1998
Glossary, Continued
Net Present See Discounted cash flow.

Value
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.
284
Glossary
28 April, 1998
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 The percentage of product that is extracted by a particular processing method.

recovery
See also Processing recovery threshold.
Processing A grade that is subtracted from the grade before the processing recovery
recovery percentage is applied.
threshold
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 A particular position in the mine, chosen by the user, for which all mining and
Position 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 The cost, per tonne, of rehabilitating material of a particular type of rock after
cost it has been dumped as waste.
285
Glossary
28 April, 1998
Glossary, Continued
Reject material Mineralised material that could be processed, but is not, due to the current
cut-offs.
Replacement From time to time, in the operation of a mine, it is necessary to refurbish major
capital pieces of equipment, and this often involves expenditure that is well in excess
expenditure of normal maintenance costs. We refer to this as replacement
capital expenditure.
These items are discounted. See Discount mode, above.
Result Binary A binary file containing details of the optimization.

File
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.
286
Glossary
28 April, 1998
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
Increment 2
Sequence
Increment 3
Sequence A binary file which carries the information from the Sequence Text File in a
Binary File form more suitable for optimization.
Sequence Text A text file that describes the physical resource and proposed mining sequence.
File
Spreadsheet A small text file that lists the items which are to be output to a Spreadsheet
Definition File Output File during a run of the Print Results Program.
Spreadsheet A small text file containing columns of selected values created from a run of
Output File 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.
287
Glossary
28 April, 1998
Glossary, Continued
Stockpile feed The amount of stockpile material which is fed to a processing plant.
Stockpile This is the percentage of the element that can be recovered. It is there to allow
recovery 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.
288
Glossary
28 April, 1998
Glossary, Continued
Throughput A quantity which must not be exceeded in a period.

limit
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.
Variable A symbol, such as x, y or z, representing an unspecified member of a group of

objects, numbers, or the like.
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.
289
Glossary
28 April, 1998
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
Capital replacement
position in file.......................................................................................................................................................... 100
reference .................................................................................................................................................................. 165
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
Cost of processing
position in file.......................................................................................................................................................... 103
reference ..............................................................................................................................90, 159, 162, 169, 206, 277
Costs
stockpile reference ................................................................................................................................................... 175
Cut-off
multiple cut-offs....................................................................................................................................................... 184
reference ................................................................................................................ 49, 96, 183, 198, 207, 210, 219, 283
stockpile reference ................................................................................................................................................... 176
Cut-off grade
Maximum and Minimum
definition ............................................................................................................................................................ 283
position in file..................................................................................................................................................... 104
reference ......................................................................................................................................................121, 252
Cut-over
definition ................................................................................................................................................................. 277
reference .................................................................................................................................................................. 283
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
Discounted cash flow
definition ................................................................................................................................................................. 279
reference .................................................................................................................................................................... 80
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
291
Index
28 April, 1998
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
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
292
Index
28 April, 1998
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
Initial capital........................................................................................................................................see Capital injection
Initialization File
reference ..................................................................................................................................................... 47, 139, 282
Installation ...................................................................................................................................................................... 26
Internal rate of return
definition ................................................................................................................................................................. 282
reference .................................................................................................................................................................. 210
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
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
293
Index
28 April, 1998
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
Mining recovery
definition ................................................................................................................................................................. 283
position in file.......................................................................................................................................................... 106
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
294
Index
28 April, 1998
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
Rejected material
Replacement capital ........................................................................................................................see Capital replacement
Result Binary File
definition ................................................................................................................................................................. 286
reference .........................................................................................................................................................44, 69, 76
Rock
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
Sensitivity analysis...................................................................................................................................................52, 151
295
Index
28 April, 1998
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
296
Index
28 April, 1998
/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
297
Index
28 April, 1998
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
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
Using the package ........................................................................................................................................................... 31
V
Value
298
Index
28 April, 1998

Opti-Cut: User Manual

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Opti-Cut

Whittle Cut-off Optimization Software

Whittle Programming Pty Ltd (A.C.N. 065 377 004)

Telephone: +61 3 9899 3799

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

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

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

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 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

Exercise 1 - Automating the Process.......................................................................................................... 216

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

Appendix A: NPV, Discount Rate and Inflation........................................................................................ 263

Appendix C: Program Limits .................................................................................................................... 269

Appendix D: Error Messages..................................................................................................................... 270

Appendix E: Requests for Program Enhancement ................................................................................... 275

Main features The main features of Opti-Cut are:

Application Opti-Cut can be applied to:

In this part This part contains the following sections.

Section See Page

Part 1: This part contains:

Part 2: This part provides:

See page 82.

Part 4: This part contains information about:

See page 136.

Continued on next page