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A variety of algorithms and methods are being used by the mining industry today to map mineral resource for reserve estimation. The traditional methods including Polygonal, Sectional and Inverse Distance methods are relatively easy to understand and implement. They have served industry well for several decades and should continue to do so for the large bulk mineable deposits with very regular geometries with relatively small variation in grade.

Jan 1, 1992

By R C. A Minnitt

The Witwatersrand Supergroup is host to the world’s largest gold deposits. The location, quantity, grade, continuity and other geological characteristics of a Mineral Resource are either known, estimated from specific geological evidence and knowledge, or interpreted from a well constrained and portrayed geological model. Establishing such a model is an integral part of the evaluation process in the Anglogold Ashanti (AGA) group, and is referred to as a Geoscience Business Model for the mining operations. The geological model established over the years has relied on detailed descriptions of the mineralisation, and understanding of the regional and local geology of the Witwatersrand sediments, in the West Wits and Free State goldfields. The processes of data collection in regard to underground stope and developing mapping, structural and sedimentological mapping, and the geological inputs to mine planning systems are described, together with aspects of drilling, sampling, grade control, and data management. Anglogold Ashanti’s Geoscience Department employs a complex and unique process to generate the Mineral Resource, including a 3D geological structure model of the orebodies which are usually highly faulted, and a robust mineralisation/facies model on which the decisions about domain boundaries are established. A Mineral Resource Inventory System (MRIS) has a dynamic graphic interface to the resource database that is used for compiling the resource statement. It is also used to determine the gold-called-for, as well as short and long-term planning. A unique estimation process using the extensive closely spaced stope face sampling database and the more widely spaced surface drilling information is used in combination in the Macro Co-Kriging estimation. The use of different support sizes in the C0-Kriging process is preceded by the equally unique ‘clusterisation’ and ‘acceptorisation’ procedures by which the data are quality controlled and assured prior to their use in the kriging process. The Mineral Resource and Ore Reserve estimates are classified according to the SAMREC code through a method that ensures that they are compliant, auditable, transparent and reconcilable with previous Mineral Resource and Ore Reserve statements.

Aug 22, 2011

By N. Madani, S. Abulkhair

In multivariate geostatistics, it is common to have different types of complexities between variables of interest. In this context, an inequality constraint is an example of complex bivariate relationships. Unfortunately, traditional co-kriging and co-simulation algorithms cannot reproduce this type of bivariate complexity, leading to the overestimation of disturbing elements. This paper proposes a new algorithm based on a hierarchical sequential Gaussian co-simulation framework, integrated with inverse transform sampling, to model inequality constraints between variables. First, the proposed methodology's validity was evaluated by applying it to a real case study from an iron deposit, with an inequality constraint between iron and aluminum oxide. Then the simulated results were compared with a conventional hierarchical co-simulation algorithm to investigate the effect of inverse transform sampling on the quality of the co-simulation. The results showed that the proposed algorithm can reproduce an inequality constraint between variables.

Sep 1, 2021

By D. Orynbassar, N. Madani

This work addresses the problem of geostatistical simulation of cross-correlated variables by factorization approaches in the case when the sampling pattern is unequal. A solution is presented, based on a Co-Gibbs sampler algorithm, by which the missing values can be imputed. In this algorithm, a heterotopic simple cokriging approach is introduced to take into account the cross-dependency of the undersampled variable with the secondary variable that is more available over the entire region. A real gold deposit is employed to test the algorithm. The imputation results are compared with other Gibbs sampler techniques for which simple cokriging and simple kriging are used. The results show that heterotopic simple cokriging outperforms the other two techniques. The imputed values are then employed for the purpose of resource estimation by using principal component analysis (PCA) as a factorization technique, and the output compared with traditional factorization approaches where the heterotopic part of the data is removed. Comparison of the results of these two techniques shows that the latter leads to substantial losses of important information in the case of an unequal sampling pattern, while the former is capable of reproducing better recovery functions.

Aug 1, 2021

By C. Meyer, J. J. Eidel

Major gaps in understanding hydro- thermal systems remain after a century of studying fossil ore deposits and active geothermal areas. The periodically rejuvenated concept of "stacking" ore deposit types has never been verified by a continuous sample. Basal and marginal regions of both “fossil" and "active" hydrothermal systems normally lie beyond the limits of economic exploration, remaining inadequately exposed. Incomplete scientific under- standing of he vertical transitions clearly limits the efficacy of exploration programs for hydrothermal ores of all types. The Continental Scientific Drilling Committee's (CSDC) Panel on Mineral Resources has defined dedicated research objectives and add-on experiments to industry or government drill holes of opportunity.

Jan 1, 1988

By J. James Eidel

Geological interpretations generally require projections from direct observations at the earth's surface. Crustal projections include mineral deposits as well as the geochemistry of the crust and its fluids, structure and tectonics. Drilling offers opportunities for verification of the required projections, and is thus a required step in furthering crustal understanding. Like any new science, the direct observations that drilling provides commonly generate major surprises and stimulate totally new ideas. Drilling is costly. There are many critically important scientific problems with societal and potential economic benefits in mineral deposits which have not been drilled because the holes are difficult to justify as economically sound risks for private capital. Such holes, however, are highly justifiable research goals for government because of the significant new opportunity for ore deposit insight and exploration that they afford. The earth science community is prepared with excellent drilling projects for research in mineral deposits.

Jan 1, 1985

By Donald Bishko

Zoning is the legal means by which land use can be controlled. Although zoning laws have historically been quick to prevent quarrying, one is hard pressed to find zoning ordinances which specifically state that land should be used (or held in reserve) for quarrying and prevent other uses such as recreation, housing, etc. This situation is especially true when the mineral to be quarried has a low intrinsic value such as sand, gravel, and crushed stone. The chance of a gold mine surviving urban sprawl is probably considerably greater than that of a sand and gravel pit, even though it is possible that the dollar value of the sand and gravel' would exceed that of the gold mine. The research reported herein was concerned with two major topics: to delineate the real costs associated with the non-protection of our construction aggregate resources (growth minerals) and to develop a computer simulation model which would aid planners in making economically sound decisions. This paper describes the problems faced by the mineral aggregate industry and discusses the role of computer simulation in planning problems. It briefly describes a simulation model which has been developed and previously reported12 and discusses the results of a pilot study conducted on the Tri-City area (Albany, Schenectady, and Troy, New York). 3

Jan 1, 1970

By C. G. Carey, M. P. Mullins

BHPBilliton is a large (US$32bn market capitalization) diversified mining group. Significant organic growth is planned through the development of a number of mining, processing and oil and gas projects, totalling some US$5.2bn over the next three years. The investment standards underpin the capital approval process, and incorporate the requirements for range and risk analysis of key input variables, including mineral resources. Public reporting codes for mineral resources and ore reserves (such as JORC) stipulate deterministic reporting of estimates, but are generally silent on any requirement for range or risk assessment, although they acknowledge the risk and uncertainty in the production of resource estimates. In contrast, public reporting of petroleum reserves allow for the use of either deterministic or probabilistic estimation, and for the latter, mandate the level of confidence required for proven versus probable reserves. Conditional simulation techniques, popular in the petroleum industry, provide an ideal tool forrange and risk assessment of the range of outcomes of key resource parameters, such as tonnagesand grades. Examples of a diamond deposit and of a porphyry copper deposit are presented. The understanding and quantification of mineral resource risk through a technique such as conditional simulation provides quantified information on the potential upside or downside. These techniques should be more widely utilized in the high-risk minerals extraction industry. Keywords: mineral resources, conditional simulation, risk, capital investment standards, BHPBilliton.

Jan 1, 2003

By K. L. Ludeke

For many reasons it appears that deep-rooted, perennial shrubs offer potential for improved stabilization and provide maintenance-free vegetative cover to harsh sites where perennial grasses have not been successful. The very fact that a drought-adapted shrub has a massive root system that can use moisture from a greater volume of mineral waste soil materials suggests that long-range arid environment resource development may be greatly enhanced by utilization of desirable forage shrubs. An effort is underway to assemble information and plant materials of promising species from many arid regions of the world. Surprisingly, many of the better plants for arid sites are quite high in protein content, and with proper management, breeding, and selection may prove to be very desirable livestock feed. Advancements in arid-land solid waste stabilization hold favorable promise for many industries that mine and mill in arid regions for effective reclamation of disturbed areas. Particularly exciting is the possibility of establishment of high density maintenance-free vegetative cover of climax vegetation that reclaims the disturbed area back to its original land use. Because of high shrub productivity, stabilization potential, nutritional quality, and reclamation success, greater use should be made of shrubs in disturbed land reclamation associated with mining and milling operations in harsh arid environments.

Jan 1, 1984

Mineral Resource Throughput Management is based on the extraction of the maximum potential value from an ore reserve with the emphasis to generate maximum ROI and ROR (return on reserve). A steel producing company in India implemented MRTM to significantly improve their ROI and ROR. The value chain of this company consists of their own iron ore and coal mines, ore washing plants, sinter plants, steel plants, and sales and marketing division. The target for the mines was to produce at a stable and predictable rate and at specific quality requirements. These requirements were set to improve productivity and ROI of the steel plant. The implementation constituted the alignment of the reserve potential, total production chain, human resources and management culture at the mines with the requirements of the steel plant. Many typical mining practices were challenged and changed. Production targets regarding lump vs. fines ratio, consistent product tons, quality targets such as Fe, Al content and moist, and standard deviation on the quality targets were not achieved. A reverse distribution model with release mechanisms to satisfy the demand were developed and implemented at the mines. A stable and predictable flow of mine product with quality standards well within the required standard deviation targets were achieved. The contribution from the mines to significantly improve the Net Profit, ROI and ROR of the company were reached.

Jan 1, 2007

Mineral Resource Throughput Management is based on the extraction of the maximum potential value from an ore reserve with the emphasis to generate maximum ROI and ROR (return on reserve). A steel producing company in India implemented MRTM to significantly improve their ROI and ROR. The value chain of this company consists of their own iron ore and coal mines, ore washing plants, sinter plants, steel plants, and sales and marketing division. The target for the mines was to produce at a stable and predictable rate and at specific quality requirements. These requirements were set to improve productivity and ROI of the steel plant. The implementation constituted the alignment of the reserve potential, total production chain, human resources and management culture at the mines with the requirements of the steel plant. Many typical mining practices were challenged and changed. Production targets regarding lump vs. fines ratio, consistent product tons, quality targets such as Fe, Al content and moist, and standard deviation on the quality targets were not achieved. A reverse distribution model with release mechanisms to satisfy the demand were developed and implemented at the mines. A stable and predictable flow of mine product with quality standards well within the required standard deviation targets were achieved. The contribution from the mines to significantly improve the Net Profit, ROI and ROR of the company were reached.

Jan 1, 2007

By James R. Dunn

The mineral industry" has made and will continue to make important contributions to the growth of our economy. However, the industry is presently under continuous and increasingly severe attacks by organizations and individuals interested in the preservation of our environment. Yet neither the public interest value of preservation nor the public interest value of our mineral industry is known. In the absence of such values, judgments about best land use where minerals are involved are nearly always made on emotional grounds. An example of the sort of problem that has been created is in the New York Metropolitan Area. Because of institutionally-created shortages stemming largely from zoning decisions and building over deposits, the effective cost of fine aggregate delivered at dockside at Manhattan rose from $2. 65/cubic yard in July, 1969, to $4.10/cubic yard in May, 1970, this in spite of approximately ;l0,000 years of reserves on Long Island. The cost of fine aggregate for New York City alone has "Increased over $S million annually within one year, with the cost increase for the Tri-State Metropolitan Area (coastal Connecticut, New Jersey, and New York)" exceeding $10 million annually. The ab0ve situation has created a cost increase which is clearly the result of non-conservation of a mineral resource. That is, in readily measurable values, it Is costing the public about $10 million per year because good conservation practices were ignored-a public-interest loss. Admittedly, this is not the whole story because the public is simultaneously obtaining other values from the land surface that would otherwise have had to be dedicated, temporarily to be sure, to mineral recovery-a public-interest gain. However, the point is that we do not know where the balance lies-the net public interest value; it may lie one way for deposits zoned out of existence by a growing suburb, another for areas designed as permanent greenbelts, and still another for areas under new highways

Jan 1, 1971

By M. H. Govett, G. J. S. Govett

"The current American ""energy crisis"", occurring in the midst of a global debate on the adequacy of mineral supplies to support present and projected levels of world consumption, has focused attention on Canada as a major world producer of minerals. Exports of minerals account for approximately one-third of Canadian foreign earnings; more than half of these exports are to the United States. Although the United States is a net importer of most industrially important metals, with the exception of nickel and zinc, only a small part of American mineral imports are from Canada; these imports are minerals for which geographical proximity and strategic considerations are important. In the short-term, Canada is more dependent on her exports to the U.S. than America is on imports from Canada. It is argued that Canada, far from indulging in economic nationalism to preserve her resources, should expand her exports while the markets are available."

Jan 1, 1973

By A. L. Hornbaker

Management of mineral resources through land-use planning procedures is not a new concept, particularly at the local level of government. Colorado may well be one of the first states, however, to vigorously attempt to evaluate on both the state-wide and regional basis, mineral resource potential and to make certain that potential for mineral resources is included as one of the primary factors considered in the local land-use decision-making process. Less than a decade ago the only consideration given to mineral resource extraction, particularly aggregate resources, was whether or not they could be produced at the particular time they were needed. This attitude has now shifted to the other extreme, not only in Colorado, but other states as well, so that other interests, especially housing projects, mountain subdivisions, recreational and wilderness areas are gaining prime consideration in land-use decisions. Ideally, in a more acceptable median position, mineral resource potential would receive definite consideration at the local level.

Jan 1, 1977

By K. Nielsen

The paper presents a brief overview of the mineral industry in Norway, followed by a description of the mineral policy and relevant legislation including the roles of the Norwegian Directorate of Mining and Geological Survey of Norway in this context. The discussion then proceeds to describe the land use planning framework on a national, regional and local level, the interaction between land use planning and the Directorate of Mining and the Geological Survey respectively, and how this impacts on the mineral industry and the exploitation of mineral resources. Some recent Norwegian examples of land use planning conflicts are also presented.

Jan 1, 2005

By J-M Rendu

Substantial progress has been made over the last ten years in the development of uniform national and international standards covering the definition, estimation and public reporting of mineral resources and mineral reserves. Agreement between the major participating countries has been reached, which includes the requirement that a Competent Person prepare and approve publication of mineral resources and reserves. Most national regulatory organisations have accepted the new standards and have included them in the rules that must be followed by mining companies operating under their jurisdiction. These developments are the result of a concerted effort on the part of professional societies, national regulatory agencies, international organisations, and many dedicated individuals. The historical development of these standards is summarised in this paper. Accepted definitions of mineral resources and mineral reserves are discussed, as well as the definition and role of the Competent Person. Additional effort is needed before the international standards are fully understood, accepted and followed by mining companies, regulatory agencies, the investment community and the general public. Steps being taken toward development of an International Code are outlined.

Jan 1, 2002

By W. E. Wrather

DURING the war the mineral industry, and metal mining in particular, extended itself more than any other to attain the limit of its productive capacity. Likewise, probably no other industry went quite so far toward jeop¬ardizing its own economic future through depletion of material reserves. Once we looked to Europe for most of the manufactured goods we needed. Our own limited mineral requirements were easily supplied from mines near the Eastern seaboard. With expansion and industrialization, our mineral needs increased in proportion, and the centers of mining activity moved westward to Michigan, Wisconsin, Minnesota, and the Tri-State district, where seemingly inexhaustible high-grade deposits of iron, copper, lead, and zinc ores were opened and rapidly developed.

Jan 1, 1946

By Ana Chiquini, Clayton V. Deutsch

The most common approach used in the mining industry for mineral resources modeling is to estimate the grades using ordinary kriging and report the recoverable resources based on this deterministic estimated model. Mineral resources calculated with kriging are a smooth representation of the actual distribution of grades and do not provide an assessment of uncertainty. Unlike kriging, simulation reproduces the variability of the grades in the mineral deposit and provides an assessment of uncertainty. Reporting mineral resources directly on high-resolution simulation results would assume perfect knowledge of the grade at the time of mining and selectivity at the scale of the data. There will always be uncertainty left at the time of mining, so assuming perfect knowledge of the grade in the future is incorrect. There are two concerns when geostatistical simulation is used for resources modeling: the information and the mining selectivity effects. A new framework for resource estimation is proposed with two separate modules to address those concerns. The information effect is accounted for by anticipating the additional production data that will be available at the time mining to guide the destination for the mined material. The mining selectivity effect is addressed by mimicking the grade control procedure to get mineable dig limits at a chosen selectivity, represented by a minimum mineable unit size. In addition to a prediction of recoverable resources that will be closer to the material mined in the future, the framework proposed provides an assessment of local and global uncertainty for risk management.

May 26, 2020

By J. Douglas Causey

In 1984, at the request of the Bureau of Land Management, the Bureau of Mines studied 9,600 acres of the 12,350-acre Antelope Creek Wilderness Study Area (MT-065-266) in order to evaluate its mineral resources. Within this report, these 9,600 acres are referred to as the study area. The Antelope Creek Wilderness Study Area, Phillips County, MT, adjoins the north end of the Charles M. Russell Wildlife Refuge. Considered part of the Missouri River Breaks, the area straddles the edge of a thrust fault zone that has deformed the Mesozoic strata in the west half of the area. Shale, siltstone, and sandstone of Cretaceous Age are exposed in the area. Coal beds averaging 3.0 ft thick occur in the Judith River Formation. About 0.20 million short tons of coal were mined from the Judith River Formation adjacent to the west boundary of the area; no production is known in the study area.

Jan 1, 1986

By Phillip R. Moyle

In 1985 the U.S. Bureau of Mines evaluated the mineral resources of tie Bruneau River and Jarbidge River study areas, Owyhee County, ID, for the U.S. Bureau of Land Management. The study areas, separated by a narrow corridor, include 90,000 acres of the 107,020-acre Bruneau River Wilderness Study Area (ID-111-17) and 47,000 acres of the 75,340-acre Jarbidge River Wilderness Study Area (ID-17-11). They lie 26 miles and 55 miles, respectively, due south of Mountain Home, ID. Approximately 38 placer claims for gold and 182 lode and placer claims for jasper, agate, and limestone were located within and adjacent to the study areas from 1893 to 1981. Currently, there are eight mining claims for jasper at Indian Hot Springs along the corridor between the study areas.

Jan 1, 1987