Who should attendThis course is designed for professionals involved in mak-ing decisions regarding mining projects during exploration, evaluation, development, and operations, including man-agers, financial analysts, mining engineers, metallurgists, geologists, and public policy makers.

InstructorsJean-Michel Rendu graduated as a mining engineer from École des Mines de Saint Etienne, France, and obtained a Master’s and a Doctorate in mining engineering from Co-lumbia University, New York. In 2001 he retired as Vice President Resources and Mine Planning of Newmont Min-ing Corporation, with responsibilities for estimation and public reporting of resources and reserves, and for mining engineering services worldwide. He is currently working as an independent consultant. He is the author of approxi-mately 50 publications on mining, and authored textbooks on geostatistics and cut-off grade estimation. He is an elect-ed member of the U.S. National Academy of Engineering, a Fellow of AusIMM and SAIMM and a Registered Mem-ber of SME. He was recognised by SME as a Distinguished Member and a Krumb Lecturer, and received two SME Pres-ident’s Citations, the SME Daniel C. Jackling Award, and the AIME Mineral Economics Award. He received the American Mining Hall of Fame Medal of Merit Award in 2009.

Venue detaIlsMcGill University Department of Mining and Materials Engineering 3450 University Street, Frank Dawson Adams Building, Room 126, Montreal Quebec Canada H3A 0E8 admcrc.mining@mcgill.ca

logIstIcs Lectures are given from 9 AM (refreshments at 8:30 a.m.) to 5 PM with two 15 minute coffee breaks and a 1 hour lunch break.

COSMO - Stochastic Mine Planning Laboratory, a global centre for leading-edge research and graduate education in “orebody modelling and strategic mine planning with uncertainty”, is supported by AngloGold Ashanti, Barrick Gold, BHP Billiton, De Beers, Newmont Mining, Vale, and the Canada Research Chairs Program, NSERC, and CFI.

COSMO – Stochastic Mine Planning Laboratory Mining Engineering

http://cosmo.mcgill.ca

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Jean Michel Rendu, USA

September 3-5, 2014Montreal, Canada

Registration Deadline - August 19, 2014

Send registrations to: Carol LeeRegistrations Coordinator, CIM3500 de Maisonneuve Blvd. W.

Westmount, QC H3Z 3C1Tel.: 514.939.2710, ext. 1343

Fax: 514.939.2714E-mail: clee@CIM.ORG

Registration online at www.cim.org/mcgill

CIM, SME, AusIMM, and SAIMM o Members: $2,400.00 CND (Excluding taxes)

o Non-members: $2,800.00 CND (Excluding taxes)

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I will bring a laptop: Yes o No oSPECTRUM SERIES VOL. 17 CD o or BOOK oPayment:Visa o MasterCard o Amex o Cheque o *Wire Transfer o

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*For information on wire transfer please contact CIMRegistration includes course notes, lunch, and morning and afternoon tea. Participation in this course may be a valid activity towards con-tinuing professional development with up to 26 contact hours. Participants receive a Certificate of Completion.Notification of Cancellation received in writing up to August 19, 2014 (minimum of 10 working days before the course) will incur a 20% cancellation fee. No refund will be made after this time. An alternative participant may be nominated.

WWW.cIm.org/mcgIll

An Introduction to Cut-off Grade Estimation:

Theory and Practice in Open Pit and

Underground Mines (with a new section on blending optimization

strategy)

The 2010 AusIMM Spectrum Series Vol. 17: “Advances in Orebody Modeling and Strategic Mine

Planning I: Old and New Dimensions in a Changing World” is included

with the course materials

PLEASE NOTE it is strongly recommended that

participants bring a laptop.

The New 2014 SME Book: “An Introduction to Cut-off

Grade Estimation” is included with the course materials

➧ Cut-off grade when volume of sales is fixed

➧ Releasing capacity constraints: a base metal example

Cut-off Grade and Mine Planning

➧ Open pit mine: economic valua-tion of a pushback

➧ Underground mine: economic valuation of a stope

➧ Similarities between open pit and underground mine planning

➧ Block and panel caving

➧ Relationship between mine selectivity, deposit modeling, ore control, and cut-off grade

Which Costs should be Included in Cut-off Grade Calculations?

➧ General considerations

➧ How specific costs influence cut-off grade calculations

➧ Other costs and benefits

Blending Strategy

➧ Blending two material types

➧ Blending three material types

➧ Blending to maximize tonnage

➧ Remarks concerning an increasingly complex blending problem

Closing Remarks

content and objectIVesCut-off grades are essential in determining the economic feasibility and mine life of a project. The fundamentals of cut-off grade calculation, first established by Ken Lane forty years ago, are revisited. In this course it is shown how direct and indirect costs, opportunity costs imposed by operation-al constraints, and other factors, such as political risk, legal, environmental, and regulatory requirements, must be taken into account. Mathematical equations are developed and graphical analytical methods are displayed, which can be used to solve most cut-off grade estimation problems. It is shown how minimum cut-off grades are estimated and how they must be modified to take into account constraints imposed by mine or mill capacity, or by limits on sales vol-umes. Multiple practical examples are given, illustrating the role of cut-off grades in mine planning, in allocating materi-al to different processes, in optimizing mill operating condi-tions, and in poly-metallic deposits. Examples also show the relationship between cut-off grades and the design of push-backs in open pit mines, the development of new stopes in underground selective mining, and the optimization of block sizes in caving methods. The relationship between mine selectivity, deposit modeling, ore control and cut-off grade is also discussed. A new section has been added in which graphical and mathematical solutions are introduced to optimize blending strategies. Included in the course of registration is a copy of the instructor’s book “An Introduc-tion to Cut-off Grade Estimation”.

course outlIneIntroductIon

General Concepts

➧ Mathematical formulation: Utility Function

➧ Cut-off grade and grade-tonnage relationship

➧ Direct profit and loss

➧ Net Present Value

➧ Opportunity costs and benefits

➧ Other costs and benefits

➧ Cut-off grade and blending strategy

Breakeven Cut-off Grade

➧ Cut-off grade between ore and waste

➧ Cut-off grades in open pit mines

➧ Cut-off grades in underground mines

➧ Cut-off grade between two processes

➧ Cut-off grade with variable recovery

➧ Constant tail model of variable recovery

➧ Breakeven cut-off grade and polymetallic deposits

➧ Opportunity cost of not using the optimum cut-off grade

➧ Cut-off grade and low grade stockpiles

➧ Cut-off grade and optimization of processing plant oper-ating conditions

Capacity Constraints and Opportunity Costs

➧ When marginal analysis no longer applies: a gold leaching operation

➧ Capacity constraint and increase in cut-off grade

➧ Decreasing cut-off grade over time: a strategic objective

➧ Cut-off grade below marginal cut-off grade

➧ Cut-off grade optimization with opportunity costs: practical considerations

Geologic Constraints and Opportunity Costs

➧ Cut-off grade when processing capacity is fixed

➧ Cut-off grade when mining capacity is fixed

an IntroductIon to cut-off grade estImatIon: theory and PractIce In oPen PIt and underground mInes