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The auriferous Carbon Leader reef which is the subject of this study can be subdivided into two types of sedimentological units, each with its characteristic spatial variability. For the longwall mining method applied at Western Deep Levels gold mine, subdivision of the orebody improves the estimation of the actual error variance, but not the grade estimates themselves. This can only be achieved by choosing oreblocks of a size and shape that are maximal parallel to the longwall and minimal at right angles to it, within the limits of mining restrictions. While simple kriging is the only method that gives unbiased results, the difference between untransformed and logtransformed kriging is negligible.

Jan 1, 1987

By D. E. Ranta, George F. Weaton

Estimating the Iron Ore reserves of Minnesota are directly related to both the geology of the deposit and the Scandinavian heritage of its people. The flat lying deposits, when properly prospected, make estimating easy and accurate across wide areas of the Mesabi Range. It also makes taxation simple on the unmined reserves. The reserves are their heritage and all the people should benefit, not just the owners. Heritage also dictates that newly discovered ores were there before discovery, hence, subject to the omitted property tax and liable for six years back taxes.

Jan 1, 1992

By G. F. Weaton

1.1 The purpose of this paper is to show the way by which estimates are made of the tonnage and grade of iron ore and taconite reserves of Minnesota. 1.2 The procedures include those of estimating the open pit reserves of: (a) Natural iron ore, and (b) Taconite 1.3 The methods of estimation which will be discussed are primarily based on the information from exploring iron ore deposits. They consider the geology of the deposit as well as the contained mineral of potential value. 2.0 Some geologic, engineering, and economic principles. 2.1 Ore 2.11 "In the broad economic sense, and from a legal standpoint as well, ore is mineralized rock, which under appropriate conditions of time, space, technology, economics, and politics, can be mined, processed, and made to yield a saleable metal , or other mineral products at a profit."(Parks, 1957) Stated differently, metallic ore is rock material from which presently known methods of beneficiation, a merchantable concentrate, suitable for use in the manufacture of metals at a profit, can be produced. Crude ores as low as 0.38% metal, as in the case of copper and even lower in the case of the precious metals.

Jan 1, 1985

By Jean Michel Marino, Jean-Pierre Slama

"The computer methods used by the French Commissariat a l'Energie Atomique, which are applicable to any type of ore deposits, are:(i) Ore reserve estimation. The data are either the core analyses or gamma leggings. To determine the spatial distribution of the ore, three different methods of interpolation are used. Two of these are based on the least-squares theory and the third one is an application of the regionalized variable theory. The interpretations of the orebody by the geologists are introduced in the computer program as often as possible.(ii) Optimal open pit design. From the spatial distribution of ore, the three-dimensional outlines of the optimal pit are determined by a geometrical algorithm which allows different slopes varying with the azimuth.Finally, the optimization of annual successive plans arc discussed."

Jan 1, 2014

Western Mining Corporation has grown from a small gold exploration and mining company, funded by large established mining companies, into a large multi-commodity and multi-national mining company with shareholders who no longer have the same understanding of mining as the founders. Ore reserve calculation methods and reporting procedures have gradually changed throughout the group during this growth. These changes have been led by the newer mines, in particular the Kambalda nickel mines, where the need for more global, less conservative reserves were required to justify capital and forward sales contracts and to inform shareholders of the true worth of their company. This change in attitude to reserves has flowed back to the gold mines and has allowed a better informed management and investing public to plan for the future. Management of the calculation of reserves remains the responsibility of individual mining operations, but a corporate reporting and management structure exists through the office of the Director of Exploration and divisional chief geologists who strive to maintain standards of calculation and reporting. Specialist ore reserve geologists are starting to justify their place in the organisation, particularly at the larger operations. Reporting to the new AusIMM Standards is fully supported, although the amount of supplementary information requested will need to be considered carefully because of the large number of factors that make up even the simplest reserve.

Jan 1, 1990

In recent years stricter requirements imposed variously by the Companies Acts, auditors and the Stock Exchanges have resulted in annual financial statements of mining companies becoming more detailed, informative and useful. Standards of reporting on ore reserves have not kept pace with the improvements in financial information disclosure, despite the fact that ore reserves are usually the most important asset of a mining company. The ore reserve reporting practices of fifteen leading Australian mining companies are analysed against important specific criteria. In terms of detailed and meaningful disclosure, there is scope for major improve- ments in annual ore reserve reporting Practices.

Jan 1, 1981

By Gooday PE, Brech GE

Ore reserve categories used by Pancontinental Mining fall into one of three fundamental groupings: Geological In Situ Reserves Mining Reserves Production Estimates The first of these describes the total reserve within stated parameters without implication as to its mineability. The second is that part of the Geological In Situ Reserve which is considered mineable under a specific mining plan. The third is the Mining Reserve adjusted with appropriate dilution and recovery factors and thus represents the best estimate of the tonnage and grade of production. This practical three category system mirrors the standard steps traditionally taken in ore reserve estimation and readily conveys the basis of the estimates. An important, but secondary classification can be added to qualify the level of confidence in these estimates using the terms: Proved (or Measured) Probable (or Indicated) Possible (or Inferred) These terms can be applied to any of the fundamental groupings, but it is generally implicit that the level of detail required to produce meaningful Mining Reserves or Production Estimates would require the basic Geological Reserve to be at a Proved or at least Probable level of confidence. The application of these classification systems by Pancontinental is illustrated by reference to the Paddington Gold Project. The methods of calculation are described including the use of geostatistics. Reconciliations of actual production with predictions from reserves are carried out monthly and annually. To date there has been an excellent correlation with Production Estimates, based on both manual and geostatistical calculations.

Jan 1, 1987

By C. Mosoane

ERPM was formed in 1893 and as a result of its age, a large volume of data exists in a paper-based format and it was decided to electronically capture data in one of two critical mining areas?namely at Far East Vertical (FEV) Shaft Area (Lower Areas) and Hercules Shaft Area (Upper Areas). The life of mine is dependent on tonnage and grade from these areas. Geostatistical evaluation of the gold reserves has been applied on an ad hoc basis in the Hercules Shaft Area and on a continuous basis in the FEV area. This is the first evaluation using geostatistics that was performed on the Upper Areas. This paper is based on the premise that regardless of cut-off grades, geostatistical estimation (kriging) estimates and locates reserves better than ?traditional? methods e.g. polygonal method, inverse squared distance method and it endeavours to estimate and locate the high grade reserves in the Main Reef Leader of Upper Areas.

Jan 1, 2003

By Owen Owens, W. P. Armstrong

The process of arriving at the size and grade of: (a) a newly-discovered body of mineralization, (b) a potential ore resource, (c) an orebody proposed for mining, or (d) the ore reserves in a mine, requires fundamental geological, and geometrical determinations as well as physical and chemical analyses. This paper outlines geological and geometrical features considered critical, in the authors' experience, in realistic reserve determination. These are discussed under the headings "The Four Cs". They include the Character, type or nature of the mineralization; the Continuity of various types of mineralization in the deposit; various key concerns in the Calculation besides the mathematics; and the Classification section which refers to basic considerations in classifying a mineral estimate. It is suggested that the responsibility for the calculation of a Resource or Reserve should be that of a geologist experienced in the ore type under review. Further, it should be the responsibility of the board of directors of the company owning the deposit to ensure that a sufficiently experienced person is chosen to carry out the process.

Jan 1, 1993

INTRODUCTION The difference between a mineral inventory or mineral reserve and an ore reserve was discussed in the introduction to Chapter 10. The term ore reserve implied mineral in place that is capable of being mined at a profit. Potential profitability of in situ minerals is dependent upon several economic parameters in addition to grade estimates for blocks of the mineral

Jan 1, 1980

The South Junction deposit of St Barbara Mines Limited was discovered in 1989 by the geologists of Ross Atkins Mining.The deposit occurs in the lower part of the Gabanintha Formation of the Lukes Creek Group in the Mt Magnet -Meekatharra greenstone belt. Country rock is predominantly talc-chlorite schist. Gold mineralisation is associated with north-south shear zones, quartz-carbonate-fuchsite alteration of the ultramafic rocks and in particular close to deeply weathered quartz-albite porphyry. For a detailed description of the geology of the South Junction Deposit see Fiala (1992).

Jan 1, 1993

By Singer RP

The Latrobe Valley brown coal deposits are one of Australia's major energy resources with measured and indicated reserves amounting to some 162 billion tonnes. Economically recoverable reserves are estimated at some 65 billion tonnes, 47 billion tonnes of which are classified as available for mining (VBCC (1983)). These deposits contain one of the lowest grade fuels used anywhere in the world. Typical Net Wet Specific Energy values range from 6 to 9 MJ/kg. Despite the low energy value of the raw coal, the Latrobe Valley deposits represent approximately 90% of Victoria's indigenous non-renewable energy resources. Utilisation of this vast primary energy resource has been a key factor in the economic development of Victoria.

Jan 1, 1990

By Gelding P. W, van Herk H

The Cattlegrid copper orebody is a concealed thin, tabular sheet localised near an unconformity between two sub- horizontal Precambrian sandstone units. It extends over an area of 1,000 m by 500 m within a wider area of mineral- isation. The ore consists of complex sulphides and is neither massive nor disseminated. It consists mainly of irregular fillings in pore space developed between clasts in sandstone breccias, in fault zones and joints and along stratification planes. Its habit is unique amongst Australian base metal ore bodies. During the pre-development period ore was outlined by percussion holes but in studies leading to investment decisions ore reserves were manually calculated from intercepts and assay results of cores from diamond drill holes. The methods used for estimating reserves in the pre-production and production periods are described and evaluated by comparing mine production during the first five ore production years with the forecasts made.

Jan 1, 1979

Ore Reserves estimation for the two producing copper orebodies at Isa Mine, Mount Isa, Queensland is discussed. The principal estimation techniques used and discussed are first, a computer based inverse power distance weighted assay meshing technique, and second, a manual arithmetic averaging technique. The principles involved in these techniques are compared, and their areas of application indicated. A general comparison of the estimation of reserves with eventual production is presented.

Jan 1, 1979

The orebodies at Kambalda are complexly faulted, folded and intruded. It is realized that the ore reserve calculations will be wrong and steps are taken to minimise the errors. The calculations are a combination of computer data handling and manual input. Initially Geological Ore Reserves are calculated and then production data and experience are used to produce a Planned Mining Reserve. At all stages maximum professional judgement is incorporated. The basis of the calculation is the polygonal method of area estimation, and production reconciliations together with the style of data available indicate that it is a most suitable technique. It is also a tech- nique that is easily communicated to all levels from operators to management.

Jan 1, 1979

The reliable estimation of ore reserves in mineral sand deposits depends on drilling methods and assay techniques that have been specially developed within the industry. Improvement of these techniques is a continuing process, as variations within and between deposits are highlighted during the actual mining operation. Constant monitoring of metallurgical losses along with mineral production allows comparison of mineral tonnages accounted for by mining, with original calculated reserves. A review of ore reserves in the Jerusalem Creek field from scout drilling in the sixties, through mining in the seventies, shows the progression from understatement prior to mining, to the present when more than two thirds of the reserves have been depleted.

Jan 1, 1979

By LESTER W. STRAUSS

FOR fifteen months after the other dominions of the British Empire and the entire so-called sterling 11loc loosed the shackles that bound the111 to the gold standard, South Africa, giant among gold-producing nations, remained stubbornly attached to gold at the traditional ratio of 85 shillings in currency to one ounce of gold. But eventually even South Africa had to heed the dictates of trade and the obvious interests of its great gold-mining industry. In December, 1932, South Africa's currency severed its golden bonds. Today the South African pound is 011 a par wit11 the British pound.

Jan 1, 1935

By Armine F. Banfield

The Purpose of the Paper It is fitting that the first paper of a session on the Financial Aspects of Mining should be on the basic data upon which any financial discussion of a mining project must be based. The history of a mining project starts with exploration in an area considered geologically favorable for mineralization and culminates in the discovery of a body of valuable mineral material commonly known as a mineral deposit. Subsequently more detailed exploration establishes the approximate size, shape, tonnage and average grade of the deposit by surface and/or underground drilling, -surface trenching and/or underground workings. Some preliminary metallurgical testing and other studies, as required, are made at this time. Development work is then carried out to provide representative samples for determining flowsheet and metallurgical balances, preparing the deposit for production and establishing more firmly the grade and mining characteristics of the deposit. A feasibility study is then made of the engineering aspects of the project including the estimation of operating coats, the capital required to place the deposit into production, profit and return on investment. A valuation of the deposit

Jan 1, 1972

By Hugh K. Taylor

"With some justification, people have long complained about the indefinition of ore reserves. Perhaps they were led to expect too much; from former and easier definition practices in the once common underground mines with exposed and available assets, where the obsolete term 'ore in sight' was at least partly literal. But such mines have become rarer, and their underground development less affordable. For most projects, valuations and its definitions have thus been advanced from actual to prospective mines, leaving a very wide gulf between 'what is there' and 'what may happen to it'. This brings the double challenges of reduced geological and technical assurance and the protraction of economic uncertainties.This paper avoids the popular field of regional resources, being confined to what may possibly be mined within single or closely grouped deposits. For these, many estimates of tonnage and grade must be made, defined and declared long before assessment of feasibility; and the uncertainties of the latter make it an unsound base for defining the earlier quantities. Despite the best of intentions, implied or inferred promises may proveimpossible to honour.A simpler framework of definitions is suggested, to some extent reverting to an earlier dependence on supporting work rather than on opinions of economic assurance or future events that are more properly the functions of production and cash flow schedules."

Jan 1, 1994

By Owen Owens, W. P. Armstrong

Abstract- The process of arriving at the size and grade of: (a) a newly-discovered body of mineralization, (b) a potential ore resource, (c) an orebody proposed for mining, or (d) the ore reserves in a mine, requires fundamental geological, and geometrical determinations as well as physical and chemical analyses. This paper outlines geological and geometrical features considered critical, in the authors' experience, in realistic reserve determination. These are discussed under the headings "The Four Cs". They include the Character, type or nature of the mineralization; the Continuity of various types of mineralization in the deposit; various key concerns in the Calculation besides the mathematics; and the Classification section which refers to basic considerations in classifying a mineral estimate. It is suggested that the responsibility for the calculation of a Resource or Reserve should be that of a geologist experienced in the ore type under review. Further, it should be the responsibility of the board of directors of the company owning the deposit to ensure that a sufficiently experienced person is chosen to carry out the process.

Jan 1, 1993