Block size selection and its impact on

open-pit design and mine planning

by R.M. Jara*, A. Couble*, X. Emery, E.J. Magri, and
J.M. Ortiz

elements of interest, by-products and

impurities, the dilution percentage, the
selectivity and the rock density.
Synopsis A fundamental parameter of this model is
the choice of the block dimensions, since this
This work evaluates and characterizes the impact of the support size
will condition mining dilution and selectivity,
and mining dilution of a block model in the operation and selection
of equipment at an open pit mine. An exploratory analysis and affecting the operation and mining costs. The
geostatistical modelling of the grades assayed on a set of drill hole objective of this study is to quantify the
samples is performed, which allows constructing a grade model on a influence of the block size on the mining
dense grid by means of a conditional simulation. The grades are selectivity and its impact over the projects final
then averaged to greater selective mining unit supports in order to economic results (income, costs, and
proceed with the study and methodology. discounted cash flows), a topic that has not
First, the metal-tonnage curves are used to analyse the loss of been systematically studied in the literature so
selectivity on the in situ resources caused by a change of support. far.
Concerning the ore reserves and their mining sequence, defined in
the pit optimization and analysis process, the same curves prove
that the loss of selectivity is more accentuated. Second, the Definition and sources of mining
importance of the block boundary dilution produced during mining selectivity
operations is assessed. Its value depends on the amount of ore in
contact with waste, on the loading error of the equipment and on Mining selectivity is understood as the process
the ore loss/waste dilution criterion assumed by the planner. The of separating ore from waste. This concept is
dilution percentage and the differences between waste and ore strongly related to four effects that imply a
grades become higher when the block size decreases. For these degradation of the operational results. These
reasons, considering the dilution in the production plans makes are:
mining a small support more constraining. An adequate delimitation Support effectthe design and planning
of the orebody can improve the mining selectivity, leading to greater of the operation is developed on the
income. Finally, a study of the increase in mining cost that provides
basis of block models. The block support
a zero difference in NPV between the different block size options is
is more voluminous than that of the
carried out, in order to determine the maximum increase in mining
costs for which it remains profitable to mine at a smaller block size. assayed samples (drill hole cores). Now,
Keywords: Mining selectivity, support effect, block boundary the statistical distribution of the grades,
dilution, selective mining unit size, block model. in particular its dispersion and selectivity
index, depends on the volume on which
the grade is defined, which is known in
mineral resource/ore reserve evaluation
as the support effect.1,2,3 This support
effect has an impact on the amount of
Introduction material whose grade exceeds a given
cut-off (ore).
In mining projects, the design and production Information effectduring the operation,
programmes are developed on the basis of a grade control is based on the estimated
block model. This model requires defining,
assessing and assuring many important
parameters used in the feasibility study and
that may have relevant consequences over the
future results of the project. The selection of
* NCL Ingeniera y Construccion, Sociedad Annima.
such parameters is a complex engineering
Department of Mining Engineering, University of
decision due to their great economic impact on Chile, Santiago, Chile.
the mining operation, as they will significantly
affect the mine design and planning. For
example, concerning the block model, there are
many decisions involving the grades of the
Block size selection and its impact on open-pit design and mine planning
grade values of the elements of interest, not on the real bution (histogram) and allow the calculation of recovery
(unknown) block grades. This inevitably implies that functions (tonnage, metal content, mean grade, revenue)
some high-graded blocks are underestimated and sent associated with a specific cut-off grade. In the present study,
to dump, while other low-graded blocks are overes- the tonnage vs. cut-off, mean grade vs. cut-off and metal vs.
timated and sent to the processing plant. This tonnage curves are used. The last represents the metal
phenomenon is known as the information effect2,3 content (ore tonnage multiplied by its mean grade) as a
and results in losses of ore with respect to the ideal function of the ore tonnage, and is useful in analysing the
case where no block misclassification is made in grade support effect as it shows a hierarchy according to the block
control. This effect will not be analysed in this article; size. For example, if for the same mined ore tonnage, a block
the reader is referred to the specialized geostatistical model produces more metal than an alternative, then the
literature for a quantification of it.46 former model is more selective than the latter.
Geometrical constraintsmine design requires
imposing restrictions on the geometry that rules the Outline of the study
extraction of the blocks within the deposit, for
instance, overall pit slope angle, bench slope angle and The proposed methodology considers five stages that allow
berm width in open pit mining.7 A high-graded block the comparison of plans generated according to the block size
may be abandoned if the costs involved to reach this assumed by the planner.
block are too high, which implies a loss of ore with
respect to the ideal case of a free block selection. Step 1Real deposit simulation on a dense grid
Geometrical constraints are one of the modifying This stage consists of an exploratory study and variogram
factors considered in the international codes for analysis of a real data-set (sample assays from exploration
mineral inventory to move from in situ mineral drill holes, composited at 2 m, see Figure 1) from a copper
resources to ore reserves.8,9 deposit, followed by the generation of simulated grades
Dilutionthis term refers to the waste that is not honouring the spatial continuity and distribution of the data.
segregated from the ore during the operation, that is, The simulation corresponds to an interpretation of the
the waste material that is mixed with ore and sent to deposit with soft boundaries (soft grade transitions) between
the processing plant, which decreases the mineral the different rock types; in the following, it will be considered
grade and increases its tonnage.10,11 Such dilution as the true grade model. It has been performed using the
mainly depends on the equipment used in the mining sequential Gaussian algorithm15 over a mesh (minimum
operation, the blast hole pattern, the blasting and block for selection) of 2.5 x 2.5 x 2.0 m along the east, north
operational conditions, as well as on the regularity of and vertical directions, respectively.
the ore/waste contact (this last factor refers to the
precision in which the operation can cut the contact Step 2Analysis of the support effect on resources
between ore and waste). and reserves
These four effects on the mining selectivity can be The effect of averaging the simulated grades to blocks
described quantitatively by the so-called selectivity curves, (representing the selective mining units, or SMU) on the
which have been introduced in geostatistical selectivity of the mining plans is then analysed. For this
applications.2,1214 Such curves describe the grade distri- purpose, the following activities are considered:

Figure 1Location map of the available drill hole samples (plan view) and histogram of the assayed copper grades. The last bar of the histogram
represents the grades greater than 5.0% Cu
Block size selection and its impact on open-pit design and mine planning
T
definition of a set of selective mining unit sizes to be regularization from 5 x 5 x 4 m to 10 x 10 x 8 m. A variation r
analysed of the support is therefore more critical in the mining
a
regularization (reblocking) of the grades of the selectivity for small blocks than for big blocks.
simulated dense grid to these SMU Furthermore, when comparing the tonnage vs. cut-off n
calculation of the selectivity curves and comparison curves at the three supports, one observes only moderate s
with the reference case (original simulation over the differences for small cut-off values, whereas the curves are a
2.5 x 2.5 x 2.0 m mesh) considerably altered by the change of support for larger cut-
c
definition of the ore reserves for a set of technical and off values. That is, the impact of the block support on the
economic parameters; generation of a sequence of grade distribution is much more important for the high t
shells for the optimum pit limit for a given price series grades than for the low grades. i
calculation of the selectivity curves for each case and o
Support effect on the ore reserves
comparison of the results.
n
For each SMU size, an analysis of the ore reserves contained
Step 3Analysis of the economic impact produced by in a series of optimal pit shells for different commodity price
the support effect scenarios is made. The generation of these optimal shells P
To assess the economic impact of the SMU size, the following values each block according to its metal content and a
approach is considered: production costs and permits selecting the block as ore or
p
definition of the open pit mining sequence, with phases waste according to this valuation. Additionally, selectivity
previous to the definition of roads and accesses curves can be calculated over these optimized pit shells. e
(unsmoothed pit) The following comments can be made on the effect of the r
calculation of the cut-off grades to use in each case optimization process over the selectivity curves and the
study comparison between the resource and reserve levels:
definition of preliminary production plans When the block size increases, the ore tonnage
evaluation of the mining plans based on their cash increases and the average grade decreases. In this
flows. application, when increasing the block size from 5 x 5 x
4 m to 10 x 10 x 8 m, ore tonnage goes up from 118.6
Step 4Study of the block boundary dilution
This fourth stage aims at understanding and quantifying the
block boundary dilution and at analysing its economic
impact. The determination of the percentage of ore in contact Table I
with waste gives a good idea of the amount of dilution that Selective mining units to be analysed
may take place during operation. For the analysis, the
following activities are developed: Block size Multiplying factor Objective
selection of the ore blocks that belong to the final pit (m) Easting Northing Elevation
for each case study 2.5 x 2.5 x 2 1 1 1 Reference case
definition of possible loading error of the equipment 5x5x4 2 2 2 Estimating the impact of
used in the operation block size along three
directions
calculation of the percentage of dilution in each case
10 x 10 x 8 4 4 4 Estimating the impact of
evaluation of the mine plans based on cash flows, block size along three
taking into account the expected block boundary directions
dilution.
Step 5Sensitivity study
The last stage of this work consists of a sensitivity study on
several fundamental variables of the mine design and
planning, after applying the dilution factor to the mining
plans. The goal of the study is to determine the maximum
increase in mining costs for which it remains profitable (in
terms of NPV) to mine at a smaller block size.

Support effect study

Support effect on the mineral resources

First, an analysis of the mineral resources of the deposit is
carried out for three different block size options (Table I).
The study of the selectivity curves associated with each block
model (in particular, the metal-tonnage curve, see Figure 2)
proves that the regularization from a 2.5 x 2.5 x 2 m block
model to a 5 x 5 x 4 m block model implies a greater loss of Figure 2Selectivity curves (metal vs. tonnage) associated with the
selectivity (loss of metal for a given ore tonnage) than the mineral resources for the different block sizes
Block size selection and its impact on open-pit design and mine planning
to 120.9 million tons, a 2.0% increase, and the mean The differences in metal quantities and cash flows
grade decreases from 1.16 to 1.09 % Cu, a 5.5% loss; between the two cases increase as time advances, until
accordingly, the metal content falls from 1.372 to period 6. After this year, the differences remain more
1.322 million tons, which represents a 3.7% loss. This or less constant. This is due to the fact that the highest
loss in metal content should be accompanied by a grades are mined out first and, as mentioned before,
significantly lower operation cost in order to improve the support effect more strongly affects the high
the overall economic evaluation of the project. Note grades.
that the previous results are obtained for the economic As stated in the previous section, the metal quantity at
envelop of the final pit, prior to scheduling. each period is greater in the 5 x 5 x 4 m block model
The optimization process accentuates the effect of the than in the 10 x 10 x 8 m block model, a situation that
support on the mining selectivity, that is, the variations generates a greater NPV in the first case.
of the metal contents between the three block models
are greater than in the case of the in situ resources. In Study of block boundary dilution
other words, the difference in mining selectivity of one
The percentage of ore material in contact with waste gives a
block model with respect to another becomes more
good idea of the possible dilution occurring in the mining
relevant when defining the economic exploitation
operation, depending on the precision with which such a
limits.
contact is cut by the equipment. To assess this dilution, a
The discounted cash flow (NPV without accounting for
simple exercise is proposed, for which it is necessary to know
investment) is lower as the block size increases. In this
application, it goes down 8.3% when the block size is the total area of the ore blocks in contact with waste blocks
changed from 5 x 5 x 4 m to 10 x 10 x 8 m. within the final pit, and the grade distribution of the waste
blocks adjacent to the ore. This calculation is carried out for
Analysis of production plans the final pits for each SMU size, by considering the edges of
the waste for each one of the block models in the east-west
This section aims at analysing the economic sequence of and north-south directions.
extraction of some of the nested shells calculated in the The length of the ore-waste contact is calculated by
previous optimization process, in order to simulate counting the number of waste blocks that are adjacent to an
production plans. Since each shell corresponds to a given ore block and by multiplying this number by the size of the
price, this criterion is equivalent to an ordering by increasing block. Some reasonable assumptions are required to
costs (expressed in US$ per pound of produced copper). determine the volume and tonnage of ore loss and/or waste
The extraction sequence is optimized by taking into
dilution produced by the operation.
account the production and economic parameters, so as to
maximize the net present value (NPV), determining which Error in the ore-waste contactit is the error produced
benches in each phase must be mined in each period. The in the operation stage when defining and loading the
planner can control the extraction of each phase by fixing the material that must be sent to the processing plant. It
following parameters: maximum and minimum bench can be expressed as the distance of material lost or
separation between phases and maximum vertical advance diluted from the ore-waste contact. Three scenarios are
per period. For each production plan, the marginal cut-off considered where 1, 2, and 3 metre errors are
grade for the corresponding design price is used, that is, the considered. The adequate error length should be
grade for which the recovered material pays its processing. defined jointly between the equipment operators and
Table II summarizes the results (produced metal quantities mine planning personnel.
and discounted cash flows) obtained for two cases: SMU size Dilution/ore loss criteriait defines whether the
of 5 x 5 x 4 m or of 10 x 10 x 8 m. The following can be contact error will be waste dilution or lost ore. Three
stated: possible criteria are:

Table II
Comparison of plans of production (in terms of metal content and NPV) associated with two block size options
(5 x 5 x 4 m and 10 x 10 x 8 m)
SMU size: 5.0 x 5.0 x 4.0 m SMU size: 10.0 x 10.0 x 8.0 m
Period Metal [kton] NPV [kUS$] Metal [kton] NPV [kUS$]
Incremental Cumulated Incremental Cumulated Incremental Cumulated Incremental Cumulated
1 68 68 39 810 39 810 59 59 30 851 30 851
2 177 245 108 414 148 224 168 227 102 489 133 340
3 165 410 76 964 225 188 167 395 84 340 217 680
4 144 554 48 567 273 755 131 526 37 324 255 004
5 148 702 36 716 310 471 137 663 30 578 285 582
6 139 840 33 009 343 480 135 798 29 200 314 782
7 143 983 38 164 381 644 134 932 32 633 347 415
8 125 1 108 33 849 415 493 130 1 062 33 868 381 283
9 51 1 159 16 678 432 171 63 1 125 19 612 400 895
Total 1 159 1 159 432 171 432 171 1 125 1 125 400 895 400 895
Block size selection and its impact on open-pit design and mine planning
T
Criterion no. 1 (100% loss)the objective of the decreases. This is explained by the support effect, r
operation is to minimize waste dilution, so that which implies a greater variability of the grades at
a
ore is lost so as to clean all possible dilution. The small block supports.
error in the contact is always a loss of ore. When increasing the cut-off grade that defines ore and
n
Criterion no. 2 (100% dilution)this is the waste, the percentage of ore that can be diluted by the s
opposite case of criterion no.1. One wants to effect of the ore-waste contact increases. a
recover all the ore, so that all the contact error is A suitable operation in the orebody limits can decrease c
included as waste dilution. the block boundary dilution to values less than the t
Criterion no. 3 (50% dilution50% loss)is a ones expected by the proposed methodology.
more realistic criterion and assumes that the i
errors are equal and compensate in such a way o
that all the ore loss is replaced by waste dilution. Analysis of the economic impact of block boundary n
For each case under study, one obtains correcting factors dilution
on the tonnages and the mean grades, which indicate the
expected dilution that will occur during the loading operation. In this section, an analysis of the economic impact of the P
As it can be seen, there is a wide range of possible results block size in the extraction of the ore reserves within the a
when combining the criteria of dilution/ore loss and the error optimal pit shells is carried out. To establish the real p
in the ore-waste contact (loading error). As an example of differences between the different supports analysed, the e
the matrix of results, Tables III and IV present a summary of previously calculated dilution factors are applied to the
preliminary production plans, providing new economic
r
the analysis considering loading errors of one metre and a
50% loss50% dilution criterion. Note that the expected results in each exercise and new comparisons incorporating
loading error is the same for all the SMU sizes analysed in the economic parameters.
this study in order to standardize the calculations and The criterion of waste dilution/ore loss and the loading
results. This criterion is not necessarily the most realistic for error to apply on the preliminary plans may naturally differ
all the cases, as in general the loading error is closely linked from place to place and the choice of its magnitude may be
to the selectivity of the operation and to the equipment used. left to the mine staff. The following analysis considers
Tables III and IV call for the following comments: assessing dilution factors for the tonnage and grade of a
The results vary according to the size of the selective block given a dilution/ore loss criterion and an error in the
mining unit assumed by the mine planner. On the one ore-waste contact (loading error). The loading errors are
hand, the percentage of ore in contact with waste defined in this case as a percentage of the block size, as it is
(hence, the percentage of dilution) is smaller when not the same to consider an error of 1 metre for a block of 2.5
increasing the SMU size, because the ore-waste contact m as for a block of 5 m or 10 m. In Table V, the values of the
becomes smoother and spatially more regular. On the dilution factors are given for the different block sizes,
other hand, the differences between the grades of according to the criterion of dilution/ore loss and the loading
waste and ore are amplified when the block size error to apply.

Table III
Analysis of block boundary dilution and determination of the dilution factor on grades for a criterion of 50%
dilution50% loss. Blocks with size 5 x 5 x 4 m with a loading error of 1 m
Cut-off (% Cu) Ore within the pit Ore-waste contact 50/50 criterion
Number of blocks Ore grade (% Cu) Length (m) Waste dilution grade (% Cu) Diluted Grade (% Cu) Dilution factor
0.3 410 221 1.13 154 404 0.16 1.11 0.977
0.6 295 890 1.40 222 621 0.38 1.32 0.945
1.0 185 086 1.76 209 442 0.66 1.64 0.929
2.0 51 991 2.67 102 987 1.38 2.42 0.904

Table IV
Analysis of block boundary dilution and determination of the dilution factor on grades for a criterion of 50%
dilution50% loss. Blocks with size 10 x 10 x 8 m with a loading error of 1 m
Cut-off (% Cu) Ore within the pit Ore-waste contact 50/50 criterion
Number of blocks Ore grade (% Cu) Length (m) Waste dilution grade (% Cu) Diluted Grade (% Cu) Dilution factor
0.3 55 701 1.05 22 564 0.14 1.03 0.982
0.6 39 681 1.29 27 011 0.38 1.26 0.976
1.0 23 361 1.64 26 730 0.63 1.58 0.965
2.0 5 127 2.50 9 379 1.49 2.40 0.963
Block size selection and its impact on open-pit design and mine planning

Table V
Dilution factors on grades and tonnages for different levels of loading error and for different dilution criteria
Dilution FactorsBlock size 10 x 10 x 8 m
Loading error Criterion 50/50 Criterion 100% dilution Criterion 100% ore loss
Tonnage Grade Tonnage Grade Tonnage Grade
10% 0.0% -1.8% 4.1% -3.4% -4.1% 0.0%
20% 0.0% -3.5% 8.1% -6.5% -8.1% 0.0%
30% 0.0% -5.3% 12.2% -9.4% -12.2% 0.0%

Dilution FactorsBlock size 5 x 5 x 4 m

Loading error Criterion 50/50 Criterion 100% dilution Criterion 100% ore loss
Tonnage Grade Tonnage Grade Tonnage Grade

10% 0.0% -2.3% 5.3% -4.3% -5.3% 0.0%

20% 0.0% -4.5% 10.5% -8.2% -10.5% 0.0%
30% 0.0% -6.8% 15.8% -11.7% -15.8% 0.0%

Dilution FactorsBlock size 2.5 x 2.5 x 2.0 m

Loading error Criterion 50/50 Criterion 100% dilution Criterion 100% ore loss
Tonnage Grade Tonnage Grade Tonnage Grade

10% 0.0% -3.4% 7.8% -6.3% -7.8% 0.0%

20% 0.0% -6.8% 15.6% -11.7% -15.6% 0.0%
30% 0.0% -10.2% 23.5% -16.4% -23.5% 0.0%

For instance, Table V indicates that for a block size of 10 respect to the model with a block size of 10 x 10 x 8 m. When
x 10 x 8 m, when applying a criterion of 50% loss/50% applying the dilution factors to these preliminary plans, such
dilution and a loading error of 10% (i.e. 1 m length), a differences are narrowed and decrease to 6.0%. For both, the
corrective factor of 1.8% must be applied to the grade. The preliminary plans and plans with dilution, an exercise is
dilution preserves the total material amount; this implies that proposed, consisting in determining the percentage of
the dilution affects only the grade, not the tonnage. When increase of the mining cost that leads to the same NPV for the
applying the dilution factors to the preliminary production two block sizes.
plans, one obtains that the metal quantity at each period in The results indicate that the 10 x 10 x 8 m block model
the 5 x 5 x 4 m model is greater than the one of the10 x 10 x leads to an NPV similar to the 5 x 5 x 4 m block model if the
8 m model, a situation that generates a greater NPV in the mining costs of the former are 14% (preliminary plan) or
first case. However, the differences of NPV between one 10% (plan applying dilution) less than that of the latter. So,
support and another decrease from an 8.3% in the the deposit modelled to a block size of 5 x 5 x 4 m can be up
preliminary plans to a 6% in the plans with dilution. to 14% (10%) more expensive to mine than the deposit
modelled to a block size of 10 x 10 x 8 m. Over this figure, it
Sensitivity study is more profitable to mine at a block size of 10 x 10 x 8 m.

The objective of this last section is to perform sensitivity

analysis on certain fundamental variables related to mine Conclusions
design and planning, before and after applying the dilution
factors defined earlier. Special attention is given to the range The following conclusions and comments can be made from
of mining costs that reproduces the difference of operation the present study:
costs due to the block size, as the preliminary plans do not
The support effect generates a loss of selectivity as the
incorporate the cost of extraction associated with the block
block size increases.
size, that is, the cost associated with the equipment to use in
The greatest impact of the support effect is centred on
the mine, its productivity and the drill pattern. Thus, we shall
determine the increase of mining cost that generates a zero the high-grade range, for which there is a greater loss
difference in NPV between the different block models. of metal content for a given ore tonnage.
From the preliminary production plans, one observes a The loss of selectivity is more important when passing
difference between the NPV associated with the sequence of from a model with blocks of 2.5 x 2.5 x 2 m to one of 5
extraction of different block models. For instance, this x 5 x 4 m than when passing from the latter to a model
difference reaches an 8.3% of greater discounted cash flow in of 10 x 10 x 8 m. Put another way, the support effect is
the case of the model with a block size of 5 x 5 x 4 m with more critical for small blocks than for large blocks.
Block size selection and its impact on open-pit design and mine planning
T
The pit optimization process accentuates the effect of 3. JOURNEL, A.G. and HUIJBREGTS, C.J. Mining Geostatistics. London, Academic
r
the support over the metal contents, that is, the Press, 1978. pp. 600.
a
decrease of metal content is greater than at the in situ
resources level.
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4. ROTH, C. and DERAISME, J. The information effect and estimating
The preliminary plans do not reflect the cost of s
recoverable reserves. Geostatistics 2000 Cape Town, Proceedings of the
extraction associated with the block size (cost
6th International Geostatistics Congress. Kleingeld, W.J., and Krige, D.G.
a
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(eds.). Cape Town. Geostatistical Association of Southern Africa, 2001.
blast drill pattern). Therefore, a study of the margin of t
vol. 2, pp. 776787.
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in NPV between the different cases of comparison has
i
been carried out. This study concluded that the deposit 5. JOURNEL, A.G. and KYRIAKIDIS, P.C. Evaluation of mineral reservesa o
modelled to a block size of 5 x 5 x 4 m is economically simulation approach. New York, Oxford University Press, 2004. 216 pp. n
profitable if its mining cost is less than 14% more
expensive than that of the deposit modelled to a block 6. EMERY, X. and SOTO TORRES, J.F. Models for support and information P
size of 10 x 10 x 8 m. effects: a comparative study. Math. Geology, 2005. vol. 37, no. 1, a
The calculation of block boundary dilution varies in pp. 4968.
function of the SMU size assumed by the planner. p
There exists a wide matrix of possible results when e
7. FOURIE, G.A. and DOHM, G.C. Open pit planning and design. SME Mining
combining the criteria of dilution/ore loss and the r
Engineering Handbook. Hartman, H. L. (ed.). Littleton, Colorado. Society
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The percentage of ore in contact with waste is greater 8. SAMREC. South African Code for Reporting of Mineral Resources and
when assuming a smaller block size. Therefore the Mineral Reserves (The SAMREC Code). Prepared by the South African
percentage of dilution increases when the block size Mineral Resource Committee SAMREC under the auspices of the South
decreases. Together with the support effect, this African Institute of Mining and Metallurgy, 2000. pp. 38.
dilution effect implies that mining small block models
is much more constraining and subject to ore losses
9. JORC. Australasian code for reporting of exploration results, mineral
than mining large block models.
resources and ore reserves (the JORC code), 2004 Edition. Prepared by the
The magnitude of the dilution factors on tonnages and
Joint Ore Reserve Committee of the Australasian Institute of Mining and
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analyzed model. A greater factor has to be applied to Metallurgy, Australian Institute of Geoscientists and Minerals Council of

the smaller block sizes, because the contact perimeter Australia (JORC), 2004. 21. pp.
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