Optimisation, optimisation, optimisation!

[Guy Shelby]

Hi all
Optimisation phase of any project is ultimately a very exciting stage, as it means the company has gathered most of the inputs for the Feasibility study and they are on the last slog to maximise economic performance. So it is a really important stage so deserves to be under its own subject header.

Is quite apparent across boards that optimisation is not a hot topic per sae, it can even be almost a taboo subject. Is usual to see a company, in what seems a never ending cycle of optimising to try and eek out that last bit of economic performance necessary to get a new project over the line to produce its all important bankable feasibility study necessary for mine development funding.

With GGP and Hav DFS it is now in a completely different and almost unique situation. Yes, to satisfy funding facility terms, is dependant in the DFS but with Telfer inventory and revenue there are not those burdens placed fully on the target resource and reserves to carry all the mine development costs and then having to see the company have to give away most of the projects NPV to get it built like would be seen with just about every explorer developing its primary asset. It’s almost a miracle to see a new mine go into production these days, with most PI’s having usually long gone after the discovery phase on the Lasonde curve. Only long suffering investors usually get to experience optimisation so I’m sure many Greatland PI’s don’t truly appreciate the significance of the enviable position they are actually in due to the companies quick evolution to producer, although they have witnessed the dilution necessary in that respect to achieve that goal, but that goal has been uniquely transformational in fairness.

But hey, the Flowsheet design is certainly looking now to have the potential to see some significant optimisations in the DFS. From that 2nd decline and incorporation of bulk handling ore transfer, bitumen haul road that will be faster and smoother for road trains giving it longevity and be maintenance free. The other significant supporting study is looking into converting to a single train processing operation.

I’m sure there are other operational opportunities that can be streamlined or plant optimisations.

Are there any that have missed or potential other areas that could be incorporated to maximise profit?

Best, Guy
(Howezap lse)

[Hydrogen]

Thanks for this Guy!

Great to see this site now is attracting really connected and quality contributors and has become the go to site for serious investors.

Well done Liam

[Luxpagain]

And we seem to have long forgotten the decision to mine

Those were the days, pre SD

[Guy Shelby]

Appreciated that Hydro.

Why the fuss some might think? We got this amazing high grade ore body, just get it built and let the cash roll in.

But optimisation in UG mining is actually crucial due to the obvious complexities. They can and will interrogate 4 main areas, infrastructure layout, stope envelopes, production scheduling and the selection and utilisation of plant. Although these areas are all intrinsically linked. So there is huge scope to come up with the ultimate system to get the ore out and onto the ROM pad. The main reason to Optimise is to minimise input cost while maximising output ie. profit, while also reducing waste, which all in, will further exploit Havieron’s low AISC and drive up profitability.

What tends to be overlooked are the bigger challenges that come with underground mining unlike in open pit. UG is very unforgiving because once the infrastructure has been laid out and developed, the operation is 'locked-in' to the layout and any future changes can be very costly.

So therefore, optimising the development layout is critical for the future operation particularly if the viability of a second decline needs to be bought into the design planning and final mine plan.

These crucial design processes of the infrastructure will generally be from the desk study work, 3D modelled using algorithmic optimisation software.

How much will Ai be utilised to assist in ‘overall’ mine design would be an interesting question for the team to ask.

Guy

[Guy Shelby]

Listening again to latest vidcast the reasoning behind the decision looking into a single mill processing train becomes more clear. The bottleneck causing both mills having been run at 85% efficiency when working together appears to be upstream from primary crushers. Milling tends to be the usual bottleneck in the circuit, but shaun was quite clear in stating both crushers would be more efficient in running a single mill at 120%. There will of course be a trade off in overall throughput against cost savings in theory, with this under review will examine the economics.

It also means there will be increased flexibility in switching between dual crush/single mill and the dual train.

But, it opens a ‘theoretical’ type technical question. Can selective blasting be used as a pre concentration step for Havieron’ hard rock to increase fragmentation to smaller size material going to the ROM pad to help improve overall beneficiation efficiency?
Can appreciate an optimum and more precise blasting is required to create clean straight stope walls but was considering what technical or final recovery issues there could be from selective blasting the remainder of the stope, if at all feasible UG.

[Redirons]

One thing is for sure Guy, Shaun has built around him one of the most knowledgeable and experienced Team one could possibly wish for at GGP, so I have every confidence that as per the rest of Shaun’s strategy thus far, the rest will be actioned in the very best way possible for GGP and its shareholders. Exciting times!!!

[Guy Shelby]

One of the 4 main areas they will be looking at is the choice of plant. Drills,shovels, loaders etc. Electric or diesel powered. With a bulk ore handling solution, being a particular area they are focussing on for efficient extraction out of the mine. It makes sense that these would all require validating before production scheduling can be finalised.

Railveyor, as part of a bulk ore handling solution alongside a second decline could be a very complementary option. This was one picked up on by Bamps and we discussed it briefly over on the dark side.

Its system integrates with leading brands of multi types of loaders. Railveyor’s TrulyAutonomous system can sense adequate load weight for transport and dispatch a train to collect the payload. The system matches the Train speed to the loading rate to optimize material flow then sending it on its way to the load discharge loop. Can be any lengh to handle the volume, fully electric with motors all along circuit with energy regeneration when trains return on decline. Furthermore its green credentials will score toward an A rating for sustainability in its ESG framework which is going to be really important and will help toward reducing the companies carbon footprint.

Railveyor can potentially get it from the ore body to a stockpile anywhere, due to its lightweight infrastructure that can be moved anywhere easily, as it just sits on a stone sub base. No concrete needed that conventional conveyers rely on.

It’s certainly would be an ultra modern solution befitting of a modern new world mine the scale and quality of Havieron.

https://www.railveyor.com/what-is-railveyor/technology/

[Guy Shelby]

Production scheduling is another one of the key areas they will evaluate and plan for, but goes largely unnoticed as much is not usually published externally, and will be ongoing beyond the release of the next Hav study and continue to be evaluated throughout mining operations.

Basically, working out the best way to mine it, in what sequence and timing of mining operations to optimise recovery, at the lowest cost, but also with safety of workforce paramount without reducing operational efficiency.

Production scheduling would typically include:
Operational Planning: A detailed plan that includes drilling, blasting and hauling.
Equipment: How much of and of what is needed for the various tasks and scheduling their use to avoid downtime.
Management of workforce: Scheduling workforce shifts so the right skill sets are in the right place at the right times.
Safety Considerations and protocols put in place to minimise risks.
Production Targets: Setting goals for the amount of material to be extracted within specific timeframes to align with the operational capacity

So effective scheduling is crucial for maximising economic performance which makes it an important aspect of the whole optimisation phase as all of those aspects of the mining operation need to be choreographed to get it right, and get it right first time so costs don’t spiral out of control.

Can really begin to appreciate why bringing in management with the necessary ‘experience’ is crucial for the transition from explorer to producer/developer.

[Guy Shelby]

One of the main objectives of optimisation is to streamline all aspects of mining operations to drive up profitability, one of the areas to be targeted will be an ore sorter at or near to the mine face after primary crushing at Havieron to divert barren or material with no or little economic worth before hauling by road train to Telfer.
This type of Pre-concentration can be really beneficial, particularly if the goal is to just reduce the volume of ore being transported to processing. But, by implementing pre-concentration techniques, lower-grade material can be also separated from higher-grade ore before it is transported, which can also lead to several advantages:

Reduced Transportation Costs: By hauling less material, the costs associated with transportation can be significantly lowered, a major part of the ‘overall’ operational expenses.

Increased Processing Efficiency: Sending only higher-grade ore to the processing plant can improve efficiency, as the plant can focus on material that is more likely to yield a higher return.

Lower Environmental Impact: Reducing the amount of waste material transported and processed can also lessen the environmental footprint of the mining operation, as there will be less tailings produced and less energy consumed in processing.

Improved Resource Recovery: Pre-concentration can enhance the overall recovery by allowing for more targeted processing of the ore that contains higher concentrates.

Flexibility in Operations: With an ore sorter in place, the operation can be more flexible in terms of managing ore grades and blending strategies, potentially optimizing the overall output.

However, the feasibility and effectiveness of pre-concentration would depend on various factors, including the ore’s amenability to be sorted, the technology available for pre-concentration of which the are a few types of sensor array based mechanical chute diverter or compressed air jet to consider and the economic considerations of implementing such a system as they will inevitably be a trade off in some recovery losses to factor in, operating cost etc. A detailed ore sorting feasibility study would be necessary to assess the potential benefits and costs associated with pre-concentrating Havieron ore.

Unlikely this supporting study would be made available to the market as ‘any’ ore sorting step would simply be incorporated into the flowsheet design in the DFS making these operational and economic advantages go largely unnoticed by the average investor.