A large open pit is planned at the site of an existing underground mine._x000D_
Strategic planning work has been undertaken to investigate the project value associated with an expansion of underground operations in conjunction with the proposed pit. Previous analysis determined that any depletion of the available pit resource that changes the optimum pushback sequence has a significant negative impact on overall project value._x000D_
Therefore, to investigate the viability of an underground expansion requires a system to identify the stope resource that would add value to a combined operation if mined ahead of the pit. The key solution to this problem was to generate a resource model variable that defines the blocks, which have greater discounted value if mined by stoping rather than by the open pit. A key assumption was that the open pit is the main driver of overall project value._x000D_
From the identified potential underground resource, series of mineable stope shells were generated at a range of cut-offs. This stope reserve data formed the input to a mixed integer program based software tool that was developed and used to optimise the underground mining plan, at conceptual level, for various project configurations. A dynamic programming tool was then applied to evaluate the optimum value of a combined open pit and underground operation._x000D_
The overall objective of this project was to determine the strategic plan that yields the optimum value for a combined underground-open pit operation. The results provided a clear focus and direction for more detailed design and planning.