OFR-168-84 Geostatistics For Resource, Reserve Estimation

Since its inception in 1910, the Bureau of Mines has been the principal Federal agency involved in ore reserve estimations, using such traditional methods as polygons of influence and variations of inverse distance weighting While adequate for estimating the average are grades in a mining block or section, these methods do mot, however, provide a consistent way of quantifying the reliability of the estimates. This report describes a technique for enhancing ore reserve estimations using geostatistics, the methodology of which combines the spatial and random aspects of geologic phenomena into a formal theoretical framework for deriving the estimation variance of ore reserves. Correctly used, geostatistics enables confidence intervals to be placed around ore reserve estimates calculated from drill hole data. A geostatistical software system was obtained -From the U.S. Geological Survey and installed, aster slight modifications, on the Bureau's Wang computer. System testing and validation was conducted using a simple cast-book-type example. This was then followed by variogram analysis, point kriging and block kriging of data from a previously worked section of a uranium mine.