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By H. C. Cooke

Geological examination of the underground workings of the Horne and Aldermac mines during the summer of 1927 has brought out the following facts: (1) That the ores tend to replace bodies of breccia or tuff rather than massive lava or dyke material; (2) That the faulting and folding at the Horne has had a pronounced effect in localizing the ore-bodies; (3) That there is a tendency in cert?-in cases for ore-bodies to be localized beneath gently dipping dykes, which acted as impervious roofs; (4) That there is a great difference in age between the chalcopyrite part of the ore-bodies and the pyrite-pyrrhotite portion. A statement of the development to date at the Aldermac mine is also included in the paper. ALDERMAC MINE The Aldermac property is made up of eight claims in the western half of Boischatel township, Quebec, including 747 acres in all. The mine itself is approximately three miles, 25 chains from the west boundary, and four miles, 55 chains from the north boundary, of the township.

Jan 1, 1928

By David S. Bolin, Bruce Kennedy, Leigh A. Readdy, Graham Mathieson

INTRODUCTION The estimation of ore reserves is a process that begins with the earliest exploration stages on a property and continues throughout any subsequent evaluation and exploitation of the deposit. During exploration and preliminary evaluation, the results of these reserve estimates constitute the basic data for prefeasibility studies and economic analysis. The decision to continue exploration and development or to abandon a prospect is often based upon these studies. During the active life of a mine, reserve computations are continuously revised to assist in development planning, cost and efficiency analyses, quality control, and improvement of extraction and processing methods. Accurate reserve estimates are also required when financing a project, purchasing or selling a property, and for accounting purposes such as depletion and tax calculation. It is important to remember that the reliability of ore reserve estimates varies progressively through time as more and more information becomes available. The lowest order of reliability of estimation of reserves exists at the time of discovery. The maximum level of certainty concerning the ore reserves within a deposit is reached when the deposit is completely mined out. Between these two extremes are variable levels of certainty as to the tonnage and grade of the resource. This is particularly true of that portion of the mineral resource that constitutes the "minable reserve," as this portion is dependent upon economic as well as geological and technological factors. In the following discussion, several of the factors affecting ore reserve computation and some of the commonly used methods of calculation are presented. The first part of the discussion is confined to classical methods of hand calculation utilizing level maps and sections. The second part of the discussion presents an overview of somewhat more sophisticated methods of geostatistics which have been developed within recent Years. Geostatistical methods frequently provide the best ore re- serve estimates for many deposits. However, a digital computer is required for such geostatistically derived estimates due to the number and complexity of the cornputations involved. For many properties the classical nongeostatistical methods are adequate, particularly in the early exploration stages. In fact, it is the author's contention that even at those properties where the geostatistical approach is employed for reserve estimation, the geological and engineering staffs should prepare an estimate by traditional means. This provides an internal audit for the reserves and at the same time requires a continuing close appraisal of geologic problems that influence the presently known geostatistically estimated reserves and production at the mine.

Jan 1, 1982

By Oscar Aguilar, Jin-ichi Nakamura, Kazuo Nakamura

Michiquillay deposit is porphyry copper type with over 500 million tons of 0.70% Cu ore. In order to reflect the true nature of the orebody as to shape and value distribution and to compensate for insufficient data in the outer perimeter and lower portion, "Triangular Interpolation Method" is used in the computation, wherein block grades are determined by "Plane Regression". The results thus obtained are compared with the data from additional investigation and are found to match well with each other. Aside of total Cu, assays of Fe, S, MoS2 and geological data such as alterations, rock types, faults, mineralogical compositions are also stored in the computer. By this system, their distribution and relation to alteration become clear and classification of ore into types affecting recovery become possible. The outputs of this system make clear the characteristics of the orebody and furnish valuable geological data on the orebody.

Jan 1, 1976

By Kennedy JT

This is a question that will be asked many times and by many individuals during the various evaluation stages of any new project. However, the question itself will often have different connotations to the different groups invariably involved in such an exercise. As examples, consider just three of the several different groups involved in the development of a new mining project - Financiers, Consulting Engineers and the Sponsors of the project (potential borrowers). To the Financiers, a 'bankable project' will be one against which they will be prepared to lend funds (but not necessarily all of the funds requested by the Sponsors). This usually means that in the first instance the technical information presented to the bank has satisfactorily covered all of the requisite areas to the levels of accuracy required. More importantly, the financial evaluation of the projected economic performance of the mine, as a whole, is considered sound and a set of arrangements under which the bank is prepared to advance loan funds have been structured which fully satisfy the bank's credit criteria. To Consulting Engineers preparing a feasibility study (or a part thereof), on behalf of the project Sponsors, the term 'bankable' invariably only refers to the technical completeness and the level of detail contained in the report which they are preparing. Their scope of work will not necessarily have been broad enough to fully satisfy a bank's requirements. It is unusual to see any specific references to overall project viability or profitability in Consulting Engineers' feasibility reports, other than those which are automatically associated with the use of the term 'ore'.

Jan 1, 1990

By Alan C. Noble

Ore reserve estimation is a multi- disciplinary process involving not only tonnage and grade estimation (resource estimation), but also consideration of technical and legal aspects such as mining the deposit, beneficiating the ores, and selling the product. This paper provides a background to under- standing resource estimation including geologic modelling, manual estimation methods, conventional computer methods. and geostatistical methods. Mine planning, metallurgical studies, legal/environmental, and marketing considerations are also discussed as they relate to estimating ore reserves.

Jan 1, 1991

By S N CARRAS

Ore reserve estimation is a procedure involving data collection, data storage and judgement and assumptions about geology mining and metallurgy. Calculations are based on these assumptions and an economic analysis on projected cash flows is carried out. Ore reserve estimation must therefore be subjective and will always depend on the extent to which the assumptions used in arriving at the estimate are correct. This paper is an attempt to summarise the many aspects that can contribute to ore reserve problems and to offer some suggestions on how to minimise these problems. For further details on specific concepts readers are referred to the detailed descriptions in the referenced papers.

Jan 1, 1992

By Mark Laffoon

Gold Fields Operating Co.-Chimney Creek has conducted numerous ore reserve modeling studies In order to optimize the estimates of the gold grades and tonnage distributions. Improved models continue to be produced for the major pits which Increase confidence levels required by Gold Fields management and provide the basis for more accurate long and intermediate term mine planning. Various kriging and non-kriging estimation techniques are used at Gold Fields -Chimney Creek Mine. This paper reviews the modeling histories and, current procedures used to construct these models with particular emphasis on the North Pit deposit.

Jan 1, 1991

By M. M. Oosterveld

"In South West Africa diamonds are mined from ancient beach deposits by the Consolidated Diamond Mines of South West Africa, Limited.To improve the control of mining production, a computer is used for the calculation of statistically more accurate and homogeneous ore blocks. Geological and sampling information has been digitized and stored on magnetic files.The figures derived for each block entail the calculation of the diamond size frequency distribution, the diamond density distribution and the ore reserve by using the density distribution.The diamond size frequency distribution is used for estimating the revenue in an ore block.A description is given of how a linear programming system can be used for production planning."

Jan 1, 2014

Computer-based block modelling of orebodies is now used at Renison Tin mine for the estimation of ore reserves. It is considered that this has resulted in improved reserve estimation for complex 'stratafault' orebodies. The results for all orebody types are more easily understood by the mine planning section and provide greater scheduling capability than those from the previous manual isoline reserve estimation method. A structural overview of the deposit can be gained by combining geological block models for the various orebodies. It is anticipated that upon completion of block modelling for all the orebodies the time spent on the annual ore reserve estimate will be significantly reduced.

Jan 1, 1990

By D. E. Ranta, Neil D. O’Donnell, Thad B. Ostrowski

Ore reserve estimation at the Syncrude Canada Ltd. open-pit oil sands mine in Northern Alberta has evolved since the project's inception. Early techniques followed a conventional petroleum reservoir analysis format, with relatively widely spaced drill holes and semiquantitative grade data. Experience has developed a more standard mining approach, including classification of geological materials by both lithology and sedimentary origin, timely and multi-purpose drill holes, precise analytical data, empirical recovery factors, a computerized geological data base, and an orebody block model. Future efforts will involve enhancement of existing techniques, use of geostatistical algorithms, quantification of confidence limits, and improved control of the ore model by geological parameters.

Jan 1, 1992

By Neil D. Donnell, O&apos

Ore reserve estimation at the Syncrude Canada Ltd. open-pit oil sands mine in Northern Alberta has evolved since the project's inception. Early techniques followed a conventional petroleum reservoir analysis format, with relatively widely-spaced drill holes and semiquantitative grade data. Experience has developed a more standard mining approach, including classification of geological materials by both lithology and sedimentary origin, timely and multi-purpose drill holes, precise analytical data, empirical recovery factors, a computerized geological data base, and an ore body block model. Future efforts will involve enhancement of existing techniques, use of geostatistical algorithms, quantification of confidence limits, and improved control of the ore model by geological parameters.

Jan 1, 1985

By Neil Schofield

"The Pine Creek gold mineralization is associated with saddle reefs and quartz and quartz sulphide veining within the Enterprise Anticline. The anticlinal structure is complex and the mineralization was considered prior to development to be dominantly strata controlled. Gold grades vary up to 160 gin 1.5 m core samples with coefficients of variation in excess of three.The estimation of ore reserves for such a deposit must account for both the geological complexity and the extreme variability of gold grade.This paper describes the structural and variogram analysis of the gold grades and demonstrates the importance of incorporating the geological model in such an analysis. Variogram interpretation is greatly improved and greater insights into the finer geological structure areprovided. Part 2ofthis work presents the application of multigaussian kriging to reserve estimation for deposits with highly variable grade and which consequently demand highly selective mining operations. IntroductionThe Enterprise Gold Mine is situated some 220 km southeast of Darwin in Australia's tropical north. Gold is believed to have been discovered there in 1869 during the construction of the overland telegraph line.From 1894to 1915, some 75 000 ounces of gold were produced from 121 000 tonnes mined mainly by Chinese leaseholders. From 1906 to 1915, government-sponsored drilling led to the sinking of the Enterprise Shaft to 79 m and several drives were developed. Mining ceased because of war.Since late 1980, Goldfields Exploration Pty. Ltd. had explored on several mining tenements near Pine Creek under joint venture with the title holders, Enterprise Mines NL. This work culminated in the development of the current mine which opened on October 29, 1985.Feasibility studies to determine the economic viability of mining were based on ore reserves generated by project geologists using a sectional polygonal approach tuned to the interpreted geological control of the mineralization.The study motivating this two-part paper covers are-estimation of the recoverable reserve s using the geostatistical approach of multigaussian kriging developed at Stanford University, (Verly, 1984)."

Jan 1, 1988

By Neil Schofield

"The estimation of recoverable ore reserves for feasibility in precious metal deposits such as Pine Creek must account not only f or the extreme variability of the ore grade but also for the complexity of the geology. Compatible models f or both must be adopted. Further, very selective mining demands reserve estimates be based on small selection units whose individual grades cannot be estimated reliably from the exploration drilling data.Multigaussian kriging is one method based on a multivariate normal model for estimating recoverable reserves under such conditions. In this paper, a non-mathematical description of the multigaussian model is presented together with its application to the Pine Creek Gold Deposit. The results, when compared to the first year of production, are encouraging for the model but not without surprises.Together, Part 1 and Part 2 of this study combine a detailed and geologically conditioned variogram analysis with an appropriate estimation method for a highly variable low-grade gold deposit. This and other studies of gold deposits familiar to the author show convincingly both that while the appropriate geostatistical skills and techniques are necessary to tackle the question of reserves, equally important but often discounted is the need for an appropriate and compatible geological model. IntroductionThe Pine Creek gold mineralization is associated with saddle reefs, and quartz and quartz- sulphide veining within the Enterprise Anti cline. The anticlinal structure is complex and, prior to mining, the mineralization was considered to be mainly strata controlled. Grades vary up to 160 grams in l .5rn core samples with coefficients of variation in excess of three.The estimation of the recoverable reserves for such a depo sit must account for both the geological complexity and the extreme variability of the gold grade.Part 1 of this work presented the geological model for the deposit and summary statistics 0 f the gold data. A detailed structural and variogram analysis considered both gold grades and the normal score (or gaussian transform) of these gold grades for different composite sizes."

Jan 1, 1988

Gold mineralization like other low concentration high value commodities has gained the notoriety of being difficult to sample. This adversely affects the confidence that can be placed in resource estimates and ore reserves. As an example, it is not uncommon to find differences of the order of 30% between duplicates of a single sample sent to two different commercial laborartories. Two halves of drill core generally show marked differences in grade. Again differences of 50% are not uncommon in halved core. In the context of this type of "error" within the base data used for the resource estimate, many of the subtleties of computation methods and expert judgement of resource categories, are almost a case of shutting the gate after the horse has bolted. Managers, financiers and consultants must question the quality of the base data upon which resource estimates are made. They must insist that standard and duplicate samples are used to measure the accuracy and precision of commercial analytical laboratories, that sampling practices have been checked for possible bias and give tolerable repeatability. Further they must ensure there can be a realistic confidence in the estimates by correctly using these measures of data quality to quantify risk.

Jan 1, 1990

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