In feasibility studies the choice of optimum cut-off grade is typically based on an evaluation of tonnage grade curves and manual design of stopes at one or two cut-off grades. In the industry these stope designs are usually based on break-even cut-off grades, but there is little consensus on what cost and price assumptions ought to be included._x000D_
A new tool for automated stope design has been developed that generates sets of stope shapes for a nominated range of cut-off grades, or depending on the nature of the mineralisation, cut-off values based on net smelter return calculations in the block model._x000D_
The stope design procedure includes constraints in stope and pillar geometry for the selected mining method and can be used to evaluate sublevel interval and sensitivities to other design parameters in the specific geological and geotechnical environment._x000D_
These nested stopes' are analogous to nested pits' in open cut design, and can be used as a key input in the hill of value' methodology for the evaluation of the optimum cut-off grade in underground design. The results of many consulting studies indicate that a break-even cut-off grade will not be the optimum cut-off grade._x000D_
A particular benefit of the new stope design tool is that the design rules used to establish stope shapes in the feasibility study can then be used in mine production, in an optimal and repeatable method._x000D_
This methodology is being advanced in the AMIRA P884 PRIMO project, which is a new research collaboration coordinated by AMIRA International. The project has brought together active research groups in Australia and Canada, with the goal of developing a flexible framework and set of software tools for optimisation in underground mine design.