The objective of the draw strategy in a caving mine is to maximise economic return by minimising waste dilution3 and maximising ore recovery4. The draw strategy must also include suitable controls for air blast and mud rush hazards and is highly constrained until continuous cave propagation has been achieved. This paper details a three-year project at the Ernest Henry Mine (EHM), which used cave flow simulation software to develop a draw strategy that increased the mine value by 32 per cent.Dilution and ore loss can be significant in sublevel cave (SLC) operations and result in poor recovery and considerable economic losses. To minimise dilution and ore loss, cellular automata software was used to simulate cave flow over the mine life. The optimisation project required mining footprints for various cut-off grades to be developed. Draw strategies for each mine footprint were then generated using a range of shut-off grades. Economic assessment of each scenario was then conducted to determine the mine footprint and corresponding draw strategy that generated the highest NPV (net present value). The iterative simulation process was improved by developing automated software functions in the flow modelling software to reduce time taken to generate and assess life-of-mine (LOM) draw strategy scenarios.In addition to improving the NPV of the mine, the optimisation project also enabled a decrease in the mine cut-off grade which increased the ore reserve and extended the mine life. Overall, an iterative process of mine planning, cave simulation, economic evaluation and geotechnical analysis was used to significantly increase the economic return of the SLC whilst ensuring caving risks were controlled to an acceptable level.CITATION:Campbell, A D and Power, G R, 2016. Increasing net present value by a third at an operating sublevel cave mine using draw strategy optimisation, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 167-174 (The Australasian Institute of Mining and Metallurgy: Melbourne).