Mining Dilution In Geostatistical Ore Reserve Estimation (7c5f8a4c-7cf8-429c-b9d9-a3ea851f72a2)

The importance of factoring mining dilution into feasibility stage ore reserve estimates is discussed. An example that relates the issue of mining dilution to the size of smallest volumes that can be mined selectively is given. Relationship between the size of the selective mining units (SMU's) and the variance of their average grade is presented. The concept of variance reduction and its use in factoring mining dilution into geostatistical ore reserve estimation is described. An approach to estimate variance reduction factor by way of conditional simulation is introduced.