Abstract
Investment in mining projects, like most business ventures, is highly susceptible to risk and uncertainty. Effectively identifying, assessing, and managing these risks is crucial for making strategic investments and optimizing operational performance. Geological uncertainty is a primary factor contributing to unmet project expectations. To mitigate this, mining companies often require projects to follow standardized Resource confidence profiles during various development phases. This typically involves assessing a distribution of Measured, Indicated, and Inferred Resources throughout the mine plan. However, these Resource categories are generally defined based on drill spacing without adequately considering the associated uncertainty in Resource estimates. This paper presents a case study on the application of stochastic mine planning in an open-pit gold project. Unlike traditional deterministic mine planning, which relies on fixed inputs and assumptions, stochastic mine planning uses multiple simulated models of the orebody to account for inherent geological uncertainty. The results highlight the advantages of using such approach over traditional resource classification in supporting investment decisions.