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By Eupene GS

The valuation of exploration properties which contain no identified resources or reserves is the most subjective of all valuation tasks likely to be carried out by a geologist. The geoscience rating method proposed by Kilburn (1990) recognises this inherent subjectivity but also attempts to apply some discipline to the valuation process. Some other methods used for valuations of this type clearly lack discipline and are open to misuse and abuse. The Kilburn method essentially requires the practitioner to justify all aspects of the valuation process. The valuer must specify and, more importantly, quantify aspects which enhance or downgrade the intrinsic value of each property. The intrinsic value is called the ""base acquisition cost"" (BAC) and it represents the average cost to identify, apply for and retain a base unit of area of title. The BAC and base unit of area both vary with different types of exploration and mining title but remain constant for similar types of titles in the same mineral tenure regime. In the Kilburn Method the enhancement/ downgrading factors are determined by the geotechnical prospectivity (Kilburn Method) within the title. A modified version of the Kilburn Method presented here (""Modified Kilburn Method"") also focuses attention on other real variables besides the geotechnical attributes which influence valuations of this type, viz., competition for tenure and activity in the markets in which the exploration properties are being traded. The most active such market at present is the stock market. By utilising uniform BACs and base units of area (for similar titles) for all exploration properties (in practice in Australia this is only possible within a particular State or Territory), the method exposes the valuer's opinions of each of these variables to the scrutiny of the investor. The investor (or his professional adviser) is afforded the opportunity to directly compare valuations on different properties by different practitioners and can assess how the final valuation is weighted in respect of geotechnical prospectivity, competition for tenure, and stock/financial market sentiment. No other method currently employed in Australia to value mineral exploration properties affords the investor this `luxury', which some may argue is their right.

Jan 1, 1994

By Dan Brunner, Scott Thomson, Ben Lyddall, Duncan Thomson

Geosensing is used in oilfield drilling in conjunction with geophysical tools to support characterization of rock properties, geology, and reservoir conditions. This technology is now available to the mining industry and has been successfully applied to underground in-seam directional drilling in Australian coal mines for geologic exploration and methane drainage. The system utilizes a range of drill rig and wellhead mounted sensors which, combined with analytical software, produce real-time data from which 3D spatial features can be accurately modelled significantly in advance of mining. This innovation greatly expands on the information obtained from current in-seam directional drilling practices and provides for improved characterization of coal seams, including soft and weak zones, locations of geologic discontinuities, and analysis of formation flow. This paper provides a description of the geosensing system and the interpretation of actual data from long in-seam directionally drilled methane drainage boreholes at mines in Australia, and discusses how this system increases the value of directional drilling as an exploration tool for the coal mining sector, and the evaporite and hard-rock mining sectors where directional drilling is also applied.

Feb 1, 2024

By Ross Cutts

As a public servant geotechnical engineer, I observed how costly and valuable geotechnical field explorations are to the success of every project. Often however, the field exploration is a long and complex process that is made less efficient by the difficulty of retrieving and utilizing nearby internal or external historic geotechnical datasets. As an employee of a public agency, we would often start our investigations for every project from scratch, given the difficulty of locating and utilizing historic geotechnical data. This is an ethical and technical failing of our profession. When we start subsurface explorations from scratch, not only do we often duplicate investigations, we are also likely defaulting to reapplying tradi- tional test methods that yield con- servative geotechnical parameters, resulting in overly conservative and potentially costly construction. To address this issue while working as a public servant, I started a research program with Yunfeng Zhang, Ph.D., of the University of Maryland, to build a tool that could compile internal historic geotechnical data and extract additional value from it, using machine learning. This tool was able to provide, upon request, nearby historic geotechnical data, estimated soil parameters and recommendations for geotechnical test methods best suited for a given project site. This prevented common field ex- ploration problems such as, requesting duplicate data, requesting test methods that were not applicable for the project geology, not realizing presence of karsts, missing permits for wetlands, private property and others. This tool allowed for more efficient field investigations with regards to time and money saved. There was one problem with this tool: it could only be used by internal employees of a single state's depart- ment of transportation (DOT) for which this data was compiled. I realized at that point that it would be of tremendous value to make this concept universally accessible to the geotechnical engi- neering profession. I left public service to devote time to building a platform that would host historic geotechnical data from publicly funded sources throughout the country. The tool I helped build as a public servant was the foundation of Geosetta, a nonprofit company dedicated to serving the geotechnical profession. The nonprofit structure was adopted to prevent acquisition by a for-profit company and to ensure that Geosetta remains an independent steward of our profession's valuable data. Geosetta provides a GIS (geographic information system) platform that enables users to view historic geo- technical data and extract value from it with machine learning-based predictions and visualization tools. This data is provided in an open and interchangeable format called DIGGS, which stands for Data Interchange for Geotechnical and Geoenvironmental Specialists, making it easy for users to integrate it into their workflows. Geosetta is collaborating with the American Society of Civil Engineers' Geo-Institute and other sponsors to extract public data at no cost to the agency and provide the profession with free access to the existing data and access to advanced tools through a subscription to support the nonprofit mission.

Nov 1, 2023

By Stephen Mansfield

In open-pit mining operations, the drill and blast processes have a significant impact on the downstream operational performance of crushing and grinding of ores and recovery of metal. The blast pattern parameters, combined with the material properties, defines the run of mine fragmentation, which in turn drives the subsequent energy requirements for further processing and mill throughput. A common parameter used to describe a single hole or collection of holes is powder factor, the ratio of explosives to the quantity of material blasted. One often-neglected aspect of calculating powder factor is the explosives contained within the length of hole drilled into the top of the bench from the previous bench, known as subdrill. Explosives in the subdrill directly affect the bench below and thus do not contribute significantly to the results of the upper bench, even though they are traditionally included in the powder factor calculation. This paper presents geospatial data modelling methods that link individual holes from an upper bench to the bench below. This enables a new method for the calculation of powder factor, whereby the explosives in the subdrill from the bench above are included in the powder factor calculation of the bench below. This method allows for a clearer understanding of the impact of subdrill on fragmentation, and how variations in blast designs in the upper bench, i.e. hole diameter, burden, spacing, subdrill length, explosive type, primer position, etc., and accuracy of implementation, i.e. actual hole depths and explosive mass per hole, affect the powder factor and blasting results in lower benches.

Feb 6, 2023

By Jamey Rosen

A Project Information Management System (PIMS) was developed to manage and analyze QC data at the Herbert Hoover Dike Rehabilitation Dam Modification Cutoff Wall (owned by the Jacksonville District of the United States Army Corps of Engineers). A special feature of this PIMS was its geospatial component. Data collected from Bauer drill rigs were automatically “geoprocessed” into threedimensional features representing the predrill, jet grout, and Cutter Soil Mixing panel elements, as well as calculated verticality and overlap metrics. These features were visualized in interactive planimetric, profile, and 3D views that facilitated several quality control activities during the project.

By M. David

This paper addresses the problem of technological transfer in geostatistics. Expert systems have become popular in certain fields because the needs of the industry are not provided for by traditional concepts and systems of education. The explicit knowledge approach in developing expert systems is presented through two experiments. The first describes a dedicated system written in GOLDEN LISP and the second a shell, using INSIGHT2, which has more general applications. Using expert systems forces on the user a new approach to parameter definition, and as an example an original method for the research of any anisotropy axes is developed which might well be useful in traditional programming. Two examples of application to a coal and a gold deposit are given.

Jan 1, 1987

This paper describes a detailed geostatistical study of producing copper orebodies at Mount Isa Mines Limited in Queensland, Australia. As a result of this work, kriging has been adopted for grade estimation for final stope design at Isa Mine. Extensive variogram and back analysis studies indicate that one relative variogram model can be used to give optimal kriged grade estimates from production sampling throughout the 100 million tonne copper orebody complex. The kriging method replaces a computer technique used at [sa Mine based on inverse distance weighting using parameters chosen from experience.Comparative stope designs based on 10 million tonnes of ore indicate a 16% increase in minable ore tonnage at a grade well above the cut-off, as a result of the geostatistical work.Although this paper is written as a practical description with simple explanations of geostatistical concepts, the theory and use of relative variograms has been expanded. A possible link is suggested between relative variograms and first order kinetics of natural mineral concentration processes.

Jan 1, 1982

By Donald E. Scheck, Da-Rong Chou

The application of geostatistics to coal reserve analysis is discussed. One problem in particular, the selection of the optimum locations for exploratory drill holes, is considered in detail. A new interactive program to help the geologist determine the best locations is described and applied to a specific property. The steps in the process are described and then illustrated using a mine's actual data. First, a variogram is selected based on graphical displayed information from the known sample data. Kriging estimates are made for the region of interest and the blocks within the region. The location of future exploratory drill holes is selected based on the criterion of minimizing the region estimation variance for a given number of exploratory holes. The least number of exploratory holes required to meet a specified upper limit on the regional variance is also determined. The computer generated recommendations for the exploratory drill holes are compared to a manually prepared drilling plan. The post- drilling analysis of the results is compared to the predicted values.

Jan 1, 1983

By P Chapman, B Moosapoor

The objective of this paper is to present the potential applications of geostatistical analyses in planning CPTu investigations, as well as interpolation of CPTu data. The paper presents a case study of a geostatistical analysis of CPTu data undertaken between 2004 and 2017 for an upstreamraised TSF located in the Goldfields region of Western Australia. An initial model is developed using the 2004, 2009 and 2017 CPTu data. The model is used to predict in situ cone tip resistance (qc) measurements, as the interested primary variable, at the selected locations where 2019 CPTu were undertaken, and the results of the prediction and the actual data are compared.

Jul 1, 2021

By Stanley M. Miller

Analysis of discontinuous rock masses for engineering design purposes requires information about fracture characteristics. For such studies, fractures or other elements of the rock fabric (bedding, foliation, etc.) should be considered in a statistical manner because they generally have high frequencies of occurrence and are discontinuous over the design area. A practical design procedure includes defining structural domains as those areas which contain fractures with similar orientation patterns. Within a structural domain, the statistical distributions of fracture set characteristics (spacing, fracture density, dip, dip direction, etc.) may be computed from mapped data and then used to quantitatively describe the rock fabric. These distributions can then be randomly sampled (using Monte Carlo techniques) to simulate the rock fabric and to help define potential failure surfaces along fractures. 1 The prediction of failure geometries is an essential part of stability analyses used in designing rock slopes or underground openings. In current probabilistic design procedures, Monte Carlo techniques that rely upon the iterative generation and analysis of deterministic instability models do not incorporate spatial aspects of the random variation in fracture set characteristics, 1,2 but consider the characteristics to be spatially independent.

Jan 1, 1979

By Leach B. G

A geostatistical study was made of diamond drill hole intersections within 18CC stope block at the C.S.A. Mine, Cobar, N.S.W. The stope block is located in 18CC orebody which is a massive sulphide - multiple vein, Copper-Zinc type, lacking clear definition on gangue mineralogy, base-metal assays and total sulphide considerations. Of the variograms constructed for inter- section width and copper, lead and zinc grades and accumulations, only zinc displayed behaviour amenable to model fitting and kriging procedures. Zinc grades were calcu- lated for sub-blocks comprising the total stope block and comparison with equivalent grades determined by traditional methods showed them to be generally less extreme in the highest and lowest grade sub-blocks. The total-block grades derived by the two methods were almost the same. It is suggested that the failure of copper to show variogram continuity might reflect the difficulty in defining the actual 18CC orebody, a proposition which is supported by the poor continuity in the variogram of horizontal width. In the case of lead the poor continuity may be due to the frequent manner of occurrence of galena as coarse grained patches of limited extent. The results of the study, did not provide a convincing reason to depart from the traditi- onal methods of grade estimation at the C.S.A. Mine.

Jan 1, 1979

By D. Rucker

Flow models are used to predict the extraction efficiency of metals in rock piles. These models typically use hydraulic parameters obtained through column studies, which assume that the material in the column wholly represents the entire pile and the parameters can be upscaled several orders of magnitude for model evaluation. This assumption fails for parameters that are spatially variable or scale dependent. To overcome these issues, measurements made directly on the heap at the appropriate model scale can be made with the electrical resistivity method. The method aims to map the variations in the electrical resistivity, which can be associated with moisture content, degree of fines, metal content, and leachate concentration. We present an example of calibrating the resistivity with borehole measurements of moisture using geostatistics to show how the resistivity method can be used to obtain a spatial moisture distribution. It was shown that cokriging the resistivity and moisture together gives a more reliable distribution.

Jan 1, 2010

By Michael J. Friedel

As part of a study aimed at understanding the hydrology of in situ leach mining (ISLM), the Bureau of Mines, in cooperation with the Cyprus Casa Grande Corporation and the University of Arizona, is investigating dynamic transmissivity conditions during ISLM of a copper oxide ore deposit. Spatial and temporal variations in ore zone transmissivity during two years of ISLM operations at the Cyprus Casa Grande mine are evaluated during sixteen intervals of steady-state injection and recovery well operation. Direct inversion of an analytical hydrologic model is used to obtain estimates of transmissivity at 58 well locations during these intervals. Univariate statistical and geostatistical methods are used to describe the temporal and/or spatial relationships that exist between transmissivity and other ISLM parameters, including average well injection pressure, average sulfuric acid concentration in leach solution, and the relative configuration of injection and recovery wells. Average transmissivity during the sixteen steady-state time intervals varies between 6.00 x 10-6 m2/min. (6.46 x 10-5 ft2/min.) and 3.61 x 10-8 m2/ min. (3.89 x 10-7 ft2/min.). A trend toward decreas¬ing transmissivity is evident during two year of ISLM operations. This decreasing trend is found to correlate with a decreasing sulfuric acid concentration in injected leach solution, and suggests increasing geochemical precipitation within the deposit. Geostatistical analyses reveal a dynamic and anisotropic transmissivity structure within the target ore zone, that is dependent upon spatial and temporal changes in injection pressure and well configuration.

Jan 1, 1992

By Robert M. Owen

Geochemical exploration for marine placers involves the acquisition, processing, and interpretation of geochemical data. Recent technological advances such as in-situ analysis systems and microcomputers have greatly improved our ability to acquire and process data, but their full benefits cannot be realized until we also develop improved methods for reducing and interpreting large amounts of raw geochemical data. Toward this end, our research has sought to identify existing and/or develop new geostatistical techniques for use in marine placer exploration. Each technique has been tested by evaluating its performance in the analysis of existing data sets. The data sets typically include the results of chemical analyses of suites of sediment samples collected from areas of known or suspected platinum and gold placers along the Bering Sea coast of Alaska. Results to date indicate that three geostatistical methods (subpopulation partitioning analysis, comparative factor analysis, and end-member compositional factor analysis) are useful in identifying elemental groups which can serve as "pathfinders" in the search for marine placers, and are also helpful in discerning the generic geochemical basis under lying observed statistical correlations between pathfinder elements and placer minerals. Existing methods of modelling sediment dispersal patterns have been examined with a view toward adapting them to the specific problem of understanding placer formation in

Jan 1, 1986

By R. Cao

Geostatistics was initially developed in the mining sector, but has been extended to other geoscience applications, including forestry, environmental science, soil science, and petroleum science and engineering. This paper presents methods, workflows, and pitfalls in using geostatistics for hydrocarbon resource modelling and evaluation. Examples are presented of indicator variogram analysis of categorical variables, lithofacies modelling by sequential indicator simulation and hierarchical workflow, porosity modelling by kriging and stochastic simulation, collocated cokriging for integrating seismic data, and collocated cosimulation for modelling porosity and permeability relationships. These methods together form a systematic approach that can be effectively used for modelling natural resources.

Jan 1, 2014

By Royle A. G

The paper describes a geostatistical structural analysis of an 80 square mile lease of the Athabasca tar sands. Each step of the analysis is presented with the ultimate objective of condensing the principal structural characteristics of the chosen regionalised variables into the opera- tional form of the variogram model. The variogram model is then used to form kriged local and global estimates, with the corresponding estimation errors.

Jan 1, 1977

By J. C. Danza Errico

The bauxite deposits on the Pocos de Caldas Plateau in the state of Minas Gerais, Brazil, were formed by the differential weathering and leaching of alcaline rocks in a ring structure. Their action on steep topography formed heterogeneous ore posture and chemical grades. Variographic analysis of several of these deposits show nested structures that are probably related to ore genesis. Kriged ore reserves estimation are presented with emphasis on the data pro cessing method that was employed. Programs were written in APL. Its intrinsic use of matrices contributed to faster programming and less computer time. In many cases looping was eliminated. The high resolution graphic resourses of APL. workspace facilitated programming of variogram analysis, fitting, and regularization. APL sub-routines are presented for variogram calculation and kriging.

Jan 1, 1986

By R. C. Bryan, D. B. Jamison

This paper describes a procedure for minimizing the operational costs associated with blending sodium in coal at a surface mine in the Powder River Basin. Mine site blending is performed by adjusting daily production rates for high- and low-sodium pits. These adjustments are designed to produce a consistent sodium value called the blending target. The mine's contractual limit for sodium is sufficiently close to the field average value that any decrease in the sodium blending target may result in an opportunity cost, if the number of potentially minable tons is reduced. Conversely, any increase in the blending target may result in a higher sampling cost if more information is required to keep the blend within contractual limits. Blending parameters were defined using a geostatistical block model of sodium content that was based on analyses of hundreds of in-pit sample holes. Variograms for these data were used to compute the marginal costs of opportunity and sampling for a series of hypothetical in-pit drilling patterns. These marginal costs provided a basis for selecting optimum values for key parameters such as the blending target, production variance and in-pit sampling density. The benefit of implementing these optimized parameter values is that operational costs of sodium blending will be minimized over the long-term. At the mine where this procedure was developed, each dollar spent to increase the sampling density to the optimum value was shown to generate a $10 savings in opportunity cost.

Jan 1, 1991

By C. Özgen Karacan

The formation of the gas emission zone in longwall mining and the potential amount of gas in this zone are factors of local geology and spatial variability within this geology. Therefore, geostatistical methods can be used for modeling and prediction of gas amounts and for assessing its uncertainty in the gas emission zone of longwall mines. This study used core data obtained from 64 exploration boreholes drilled from the surface to the bottom of the Pittsburgh coal seam in a mining district in the Northern Appalachian basin. After identifying important coal layers for the gas emission zone, semivariogram modeling was conducted for different coal seams to define the distribution and continuity of various attributes. Sequential simulations were performed for stochastic assessment of these attributes to calculate gas-in-place (GIP) in each coal seam. GIP calculations for coals of various gas emissions zones were combined and ranked for their cumulative distribution function to find GIP in the caved zone and in the fractured zone at the 5%, 50%, and 95% quantiles. Fifty percent quantile results were later used to isolate a panel from the whole area and create a mosaic representation corresponding to the daily advance rate of the longwall face. This approach helped to estimate the daily emissions of this panel from the caved zone and from the fractured zone. Results showed that gas-in-place in the Pittsburgh coal seam, in the caved zone, and in the fractured zone showed spatial correlations that could be modeled and estimated using geostatistical methods. This study showed that gas-in- place volumes in the study area may be as high as 12.3 Bscf and as much as 3.5 MMscf per acre of mining.

Jan 1, 2012

Knowledge of true block grades is obtained from a mathematical model of an orebody, simulated with sample grades normally distributed and spatially correlated according io a spherical semi-variogram model.The superiority of kriging to the polygonal method of estimation is demonstrated on this modelled deposit by comparing the true values with the kriged and polygonal estimates obtained from sampling the deposit. Finally, selection of blocks of the deposit on the basis of the estimated values, shows that if kriging is used, what is predicted is largely mined, whilst if the polygonal method is used large biases can occur depending on the position of the cut-off grade.

Jan 1, 1978