Traditional Pit Optimisation
Traditional pit optimisation techniques focus predominantly on value as the basis for pit selection. The risk for any pit selection is rarely quantified or considered.
Macro Economic Environment
The Quantified Strategies value at risk technique utilises a database of historical economic data to quantify correlations between parameters
(eg: prices and costs) combined with probabilistic forward price parameter sets to allow the probabilistic quantification of the value of potential ore left in the ground, or conversely over-stripped waste.
The resulting risks to the project achieving the expected value are presented as a VaR.
Final Pit Selection
VaR provides a tool for mining engineers and mining executives on the potential value, along with the associated VaR, for all decisions around staging and final pit selection.