The Ore Reserve Problem

Pure gold was hidden in the quartz, they said, 'Twas proved by dreams and signs, and rods divining, By chemic tests, and spirits of the dead, In fact by everything-except by mining. " from R.E. White, "The Mining Town," Alta California, August 18,1873 Textbooks in mining engineering have traditionally covered ore reserve estimation and mine valuation in a single volume. Indeed, Examination and Valuation of Mineral Property by R. D. Parks (1957), having been the standard of the profession for over 20 years, is a classic example. However, the state of knowledge in these two fields has grown tremendously. Most mining engineering curricula now cover these topics in separate courses, and in practice, these tasks are usually performed by different individuals. Thus, this trend now suggests the need for separate, specialized publications rather than a single volume for both topics. Because of the separate development of the science of ore reserve estimation, it is important to state at the beginning what this chapter does not cover. It does not address in detail the design of sampling programs, sampling methods, or the processing of samples or sample data compilation. There are a number of suitable references available on these topics, including Peters (1978), Gy (1979), as well as the previously cited book by Parks. Furthermore, this chapter does not cover in any substantial detail either the traditional methods for using sample data to calculate ore reserves or the more recently developed geostatistical methods. The traditional methods are thoroughly covered by Popoff (1966) and more concisely by Barnes (1980). Among the more useful references for statistical applications in ore reserve estimation are Barnes (1980), David (1977), and Clark (1979). A thoughtful review of the entire science and art of ore reserve estimation is provided by King, McMahon, and Bujtor (1982). In spite of the fact that expansion of knowledge now calls for separate books on ore reserve estimation and financial evaluation, neither publication can ignore the important interrelationships between the two fields. In regard to this text, the unique and crucial role of ore reserves can not be omitted entirely; however, the field is now simply too extensive to treat here in any comprehensive manner.