Abstract
Any financial evaluation of a project requires realistic assumptions of throughput rate and grade as well as mining rate of ore and waste. A realistically diluted resource model provides a basis for developing realistic production schedules and financial outcomes for a project. There are many different methods of applying dilution and ore loss and the method chosen should be suitable to the deposit type, mining and processing methods, and the level of study. Deposit types vary in the distribution of mineralisation, thickness, dip, strike and continuity of mineralization. Mining considerations include the selective mining unit (SMU), bench height, mining equipment size and configuration, and grade control strategy. Processing considerations include the processing throughput rate, blending, ore sorting techniques and recovery. This paper discusses the most common methods used to apply dilution and ore loss, presents case studies, and introduces some of the new and emerging techniques. Methods to reduce dilution and ore loss are also discussed and include equipment fleet selection, blasting techniques, improved mine planning, grade control practices, and ore tonne and grade reconciliation processes.