Estimation and Exploitation in an Underground Narrow Vein Gold Operation - Nalunaq Mine, Greenland

Many narrow-vein gold deposits are characterised by a high to extreme nugget effect and the presence of coarse gold. They rank amongst the most difficult of deposits to produce an accurate and precise resource estimate. This contribution presents a case study from the Nalunaq Gold Mine in Southern Greenland. The mine commenced operation in May 2004 and is currently operating at a rate of 400 tonnes per day, to produce about 100 000 oz gold per annum from a total resource base of 1.2 Moz. Mineralisation is characterised by quartz veins that are hosted within a shear zone that is continuous over about 1000 m. The principal orebody is the Main Vein structure, which ranges up to 3 m in width, maintains an average dip of 35¦SE, and contains significant gold grades (1000s g/t Au). Gold particles are often visible, with 25 per cent being greater than 250 microns in size. Variography using underground development samples indicates a nugget effect of about 75 per cent. For the 2005 resource estimate, a 2D metal accumulation ordinary kriged block model was used to produce a global grade for the Target and South Blocks of the Main Vein. Grade control chip-channel samples are collected from æshantyÆ drive footwalls, and used as the basis for both the kriged block model and to determine the grade of individual stope blocks by peripheral weighted averages. Geology plays a key role in mining efficiency, given the locally variable nature of the ore zone.