Download or read book High-order Simulation of Geological Domains of a Gold Deposit and Its Effects on the Simultaneous Stochastic Optimization of a Mining Complex written by Daniel Morales and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: "In the last decade, strategic mine planning has evolved into a framework that simultaneously optimizes decisions of a mining complex, while considering different sources of uncertainty. A typically overlooked source of uncertainty corresponds to the volumes and boundaries of geological domains. Geological domains correspond to different kinds of materials defined by respective chemical or physical properties, such as ore and waste, oxides and sulphurs, or different lithologies. Along with their spatial distribution, geological domains can affect destination policies, recoveries, production, and finally, financial forecasts. The case study presented here quantitively measures the effects of simulated geological domains in the simultaneous stochastic optimization of a gold mining complex.Geological domains are traditionally modelled through wireframes made by experts, reflecting their best interpretation of available sparse data, while ignoring uncertainty and local variability. Categorical attributes are used to model geological domains, and their stochastic simulation accounts for uncertainty and reproduction of local variability. The ability of two-points simulation methods to reproduce complex patterns or the requirement of a training image in multiple-points simulation methods, have limited their implementation in mining environments. High-order simulation of categorical attributes presents a mathematically consistent framework that overcomes the mentioned limitations by using high-order spatial statistics from sample data and avoiding the requirement of the training image. The high-order simulation method allows obtaining equally probable realizations of geological domains in real life-sized mineral deposits.The case study at a gold mining complex shows two stochastic mine plans based on two sets of geological realizations respectively. Geological domains of the first set are modelled using conventional wireframes while in the second set, domains are simulated through the high-order method. Gold grades are simulated inside geological domains for both sets. The resulting mine plans are substantially different. While both plans present a similar quantity of metal recovered and years of lifespan, risk profiles are up to 40% wider, and the expected NPV is 20% higher for the case of simulated geological domains. These results stress the importance of considering the uncertainty related to geological domains to develop and optimize strategic mine plans"--