MineSight

for Modelers

Geostatistics
Workbook

E005
Rev. B
 2002, 2001, 1994, and 1978 by MINTEC, inc.

All rights reserved. No part of this document shall be

reproduced, stored in a retrieval system, or transmitted
by any means, electronic, mechanical, photocopying,
recording or otherwise, without written permission from
MINTEC, inc.

All terms mentioned in this document that are known to

be trademarks or registered trademarks of their respec-
tive companies have been appropriately identified.

MineSight is a registered trademark of MINTEC, inc.

acQuire is a registered trademark of Metech Pty Ltd

Proprietary Information of Mintec, inc. Table of Contents

MineSight for Modelers Geostatistics

Table of Contents

Using This MineSight Workbook......... ..............................................................Intro-1

MineSight Overview............................................................................................Over-1

Geostatistics Overheads.........................................................................................1

Classical Statistics.................................................................................................1-1

Variograms..............................................................................................................2-1

Point Validation/Cross Validation for Variogram Evaluation..............................3-1

Declustering............................................................................................................4-1

Model Interpolation (Inverse Distance Weighting and Ordinary Kriging)..........5-1

Debugging Interpolation Runs.............................................................................. 6-1

Point Validation/Cross Validation of Estimation Methods and/or Search

Parameters...............................................................................................................7-1

Model Statistics/Geologic Reserves......................................................................8-1

Model Calculations..................................................................................................9-1

Quantifying Uncertainty........................................................................................10-1

Change of Support.................................................................................................11-1

Outlier Restricted Kriging......................................................................................12-1

Indicator Kriging to Define Geologic Boundary Above a Cutoff........................13-1

Muliple Indicator Kriging.......................................................................................14-1

Other Non-Kriging Interpolation Methods...........................................................15-1

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Table of Contents Proprietary Information of Mintec, inc.

Page TOC-2 Part #: E005 Rev. B

Proprietary Information of Mintec, inc. Using this Mintec Workbook

Using this Mintec Workbook Notes:

The objective of this workbook is to provide hands on training and experience with
the MineSight Operations package. This workbook does not cover all the capabilites of
MineSight, but concentrates on typical mine geologists duties using a given set of data.

Introduction to the Course

To begin, we would like to thank you for taking the opportunity to enrich your
understanding of MineSight through taking this training course offered by Mintec
Technical Support. Please start out by reviewing this material on workbook conventions
prior to proceeding with the training course documentation.

This workbook is designed to present concepts clearly and then give the user
practice through exercises to perform the stated tasks and achieve the required results.
All sections of this workbook contain a basic step, or series of steps, for using
MineSight with a project. Leading off each workbook section are the learning objectives
covered by the subject matter within the topic section. Following this is an outline of the
process using the menu system, and finally an example is presented of the results of the
process.

MineSight provides a large number of programs with wide ranges of options within
each program. This may seem overwhelming at times, but once you feel comfortable
with the system, the large number of programs becomes an asset because of the
flexibility it affords. If you are unable to achieve these key tasks or understand the
concepts, notify your instructor before moving on to the next section in the workbook.

What You Need to Know

This section explains for the student the mouse actions, keyboard functions, and
terms and conventions used in the Mintec workbooks. Please review this section
carefully to benefit fully from the training material and this training course.

Using the Mouse

The following terms are used to describe actions you perform with the mouse:

Click -press and release the left mouse button

Double-click - click the left mouse button twice in rapid succession

Right-click - press and release the right mouse button

Drag - move the mouse while holding down the left mouse button

Highlight - drag the mouse pointer across data, causing the image to reverse in color

Point - position the mouse pointer on the indicated item

Terms and Conventions

Part #: E005 Rev. B Page Intro-1

Using this Mintec Workbook Proprietary Information of Mintec, inc.

The following terms and conventions are used in the Mintec workbooks:
Notes:
Actions or keyboard input instructions - are printed in Times New Roman font,
italics, embedded within arrow brackets and keys are separated with a + when used in
combination, for example, to apply bold face to type is indicated by <ctrl+shift+b>.

Button/Icon - are printed in bold with the initial letter capitalized, in Times New
Roman font, for example Print, on a button, indicates an item you click on to produce a

hard copy of a file; or , the Query icon, is clicked on to determine which

polyline you need to edit.

Menu Commands - are printed in Arial font, bold, with a vertical bar, as an example
File I Open means access the File menu and choose Open.

Parameters - are printed in Arial font, lower case, in bullet format, as an example,

the project coordinate units (metric or imperial)

the project type (3-D, GSM, BHS, SRV).

Select - highlight a menu list item, move the mouse over the menu item and click the
mouse.

Questions or Comments?
Note: if you have any questions or comments regarding this training documentation,
please contact the Mintec Documentation Specialist at (520) 795-3891 or via e-mail at
market@mintec.com.

Page Intro-2 Part #: E005 Rev. B

Proprietary Information of Mintec, inc. MineSight Overview

MineSight Overview Notes:

Learning Objectives

When you have completed this section, you will know:

A. The basic structure and organization of MineSight.

B. The capabilities of each MineSight module.

C. Ways to run MineSight programs.

What Is MineSight?

MineSight is a comprehensive software package for the mining industry containing

tools used for resource evaluation and analysis, mine modeling, mine planning and
design, and reserves estimation and reporting. MineSight has been designed to take raw
data from a standard source (drillholes, underground samples, blastholes, etc.) and
extend the information to the point where a production schedule is derived. The data
and operations on the data can be broken down into the following logical groups.

Digitized Data Operations

Digitized data is utilized in the evaluation of a project in many ways. It can be used to
define geologic information in section or plan, to define topography contours, to define
structural information, mine designs and other information that is important to evaluate
the ore body. Digitized data is used or derived in virtually every phase of a project from
drillhole data through production scheduling. Any digitized data can be triangulated and
viewed as a 3-D surface in MineSight.

Drillhole Data Operations

A variety of drillhole data can be stored in MineSight, including assays, lithology and
geology codes, quality parameters for coal, collar information (coordinates and hole
orientation), and down-the-hole survey data. Value and consistency checks can be
performed on the data before it is loaded into MineSight. After the data has been stored
in the system, it can be listed, updated, geostatistically and statistically analyzed, plotted
in plan or section and viewed in 3-D. Assay data can then be passed on to the next
logical section of MineSight which is compositing.

Compositing Operations

Composites are calculated by benches (for most base metal mines) or mineral seams
(for coal mines) to show the commodity of interest on a mining basis. Composites can
be either generated in MineSight or generated outside the system and imported.
Composite data can be listed, updated, geostatistically and statistically analyzed, plotted
in plan or section and viewed in 3-D. Composite data is passed on to the next phase of
MineSight, ore body modeling.

Modeling Operations

Within MineSight, deposits can be represented by a computer model of one of two

types. A 3-D block model (3DBM) is generally used to model base metal deposits, such
as porphyry copper or other non-layered deposits. A gridded seam model (GSM) is used
for layered deposits, such as coal or oil sands. In both models, the horizontal
components of a deposit are divided into blocks that are usually related to a production
unit. In a 3DBM, the deposit is also divided horizontally into benches, whereas in a

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MineSight Overview Proprietary Information of Mintec, inc.

GSM the vertical dimensions are a function of the seam and interburden thicknesses. For
Notes: each block in the model, a variety of items may be stored.

Typically, a block in a 3DBM will contain grade items, geological codes, and a
topography percent. Many other items may also be present. For a GSM, the seam top
elevation and seam thickness are required. Other items, such as quality parameters, seam
bottom, partings, etc. can also be stored. A variety of methods can be used to enter data
into the model. Geologic and topographic data can be digitized and converted into codes
for the model, or they can be entered directly as block codes. Solids can also be created
in the MineSight 3-D graphical interface for use in coding the model directly. Grade
data is usually entered through interpolation techniques, such as Kriging or inverse
distance weighting. Once the model is constructed, it can be updated, summarized
statistically, plotted in plan or section, contoured in plan or section, and viewed in 3-D.
The model is a necessary prerequisite in any pit design or pit evaluation process.

Economic Pit Limits & Pit Optimization

This set of routines works on whole blocks from the 3-D block model, and uses either
the floating cone or Lerchs-Grossmann technique to find economic pit limits for
different sets of economic assumptions. Usually one grade or equivalent grade item is
used as the economic material. The user enters costs, net value of the product, cutoff
grades, and pit wall slope. Original topography is used as the starting surface for the
design, and new surfaces are generated which reflect the economic designs. The designs
can be plotted in plan or section, viewed in 3-D, and reserves can be calculated for the
grade item that was used for the design. Simple production scheduling can also be run
on these reserves.

Pit Design

The Pit Design routines are used to geometrically design pits that include ramps,
pushbacks, and variable wall slopes to more accurately portray a realistic open pit
geometry. Manually designed pits can also be entered into the system and evaluated. Pit
designs can be displayed in plan or section, can be clipped against topography if desired,
and can be viewed in 3-D. Reserves for these pit designs are evaluated on a partial block
basis, and are used in the calculation of production schedules.

Production Scheduling

This group of programs is used to compute schedules for long-range planning based
upon pushback designs (or phases), and reserves computed by the mine planning
programs. The basic input parameters for each production period include mill capacity,
mine capacity, and cutoff grades. Functions provided by the scheduling programs
include:

Calculation and reporting of production for each period, including mill production
by ore type, mill head grades and waste
Preparation of end-of-production period maps
Calculation and storage of yearly mining schedules for economic analysis
Evaluation of alternate production rates and required mining capacity

Page Over-2 Part#: E005 Rev. B

Proprietary Information of Mintec, inc. MineSight Overview

Ways to Run MineSight Programs

Notes:
MineSight consists of a large group of procedures and programs designed to handle
the tasks of mineral deposit evaluation and mine planning. Each procedure allows you
to have a great amount of control over your data and the modeling process. You decide
on the values for all the options available in each procedure. When you enter these
values into a procedure to create a run file, you have a record of exactly how each
program was run. You can easily modify your choices to rerun the program. To allow
for easier use, the MineSight Compass menu system has been developed. Just select the
procedure you need from the menu. Input screens will guide you through the entire
operation. The menu system builds run files behind the scenes and runs the programs for
you. If you need more flexibility in certain parts of the operations, the menus can be
modified according to your needs, or you can use the run files directly. The MineSight
3-D graphical interface provides a Windows-style environment with a large number of
easy-to-use, intuitive functions for CAD design, data presentation, area and volume
calculations and modeling.

Basic Flow of MineSight

The following diagram shows the flow of tasks for a standard mine evaluation project.
These tasks load the drillhole assays, calculate composites, develop a mine model,
design a pit, and prepare long-range schedules for financial analysis. There are many
other MineSight programs which can be used for geology, statistics, geostatistics,
displays, and reserves.

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MINESIGHT OVERVIEW Proprietary Information of Mintec, inc.

Flow of Tasks Initialize

for a Standard PCF Update
List

Mine Evaluation
Project
Enter
Scan
Drillhole Assays Load
Edit
List
Dump
Rotate
Add Geology
Statistics
Variograms
Plot Collars
Plot Sections
Special Calculations
3-D Viewing and Interpretation

Load
Edit
Composites List
Dump
Add Geology
Add Topography
Statistics
Variograms
Variogram Validation
Plot Sections
Plot Plans
Special Calculations
Sort
3-D Viewing and Interpretation

Initialize
Digitized Data Mine Model Interpolate
Add Geology
Add topography
List
Digitize Edit
Load Statistics
Edit Reserves
List Special Calculations
Dump Plot Sections
Plot Plot Plans
3-D Viewing Contour Plots
Sort
3-D Viewing & Solids Construction

Creat Pit Optimization Model

Run Pit Optimization
Pit Designs Pit Optimization Reserves
Pit Optimization Plots
Run Pit Design
Pit Design Reserves
Pit Design Plots
Reserves
3-D Views

Long Range
Planning & Short Range
Scheduling

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Proprietary Information of Mintec, inc. MineSight Overview

MineSight Capacities
Notes:
Drillholes
No limit to the number of drillholes; only limited by the total number of assays
in the system
99 survey intervals per drillhole
524,285 assay intervals per file
8,189 assay intervals per drillhole
99 items per interval
Multiple drillhole files allowed (usually one is all that is required)

Composites
524,285 assay intervals per file
8,189 composites per drillhole
99 items per composite interval
Multiple composite files allowed (usually one is all that is required)

Geologic Model
3-D block model limit of 1000 columns, 1000 rows and 400 benches
Gridded seam model limit of 1000 columns, 1000 rows and 200 seams
99 items per block
Multiple model files allowed (usually one is all that is required)

Digitized Point Data

4,000 planes per file - either plan or section
20,000 features (digitized line segments) per plane
100,000 points per plane
99 features with the same code per plane and a unique sequence number
Multiple files allowed
Pit Optimization (Floating cone/Lerchs-Grossman programs)
600 row by 600 column equivalent (rows * columns < 360000)
Multiple files are allowed

Reserves
20 material classes
20 cutoff grades for each material class
10 metal grades
Multiple reserves files allowed

Slice Files for Interactive Planning and Scheduling

2,000,000 blocks containing one item (the number of blocks allowed drops as
the number of items per block rises)
Unlimited benches and sections
30 items per block

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MineSight Overview Proprietary Information of Mintec, inc.

Blastholes
Notes: 524,285 blastholes per file with standard File 12
8,189 blastholes per shot with standard File 12
4,194,301 blastholes per file with expanded limit File 12
1,021 blastholes per shot with expanded limit File 12
99 items per blasthole
Multiple blasthole files allowed (usually one is all that is required)

Page Over-6 Part#: E005 Rev. B

Introduction to Geostatistics Classical Statistics

Objective: To make you familiar with the
basic concepts of statistics, and the
geostatistical tools available to solve
problems in geology and mining of an ore
deposit
Sample values are realizations of a random
variable
Samples are considered independent
Relative positions of the samples are
ignored
Does not make use of the spatial
correlation of samples

Geostatistics Topics

Sample values are realizations of random Basic Statistics

functions Data Analysis and Display
Samples are considered spatially Analysis of Spatial Continuity (variogram)
correlated
Value of a sample is a function of its
position in the mineralization of the deposit
Relative position of the samples is taken
under consideration.

Basic Statistics Statistics

Definitions
The body of principles and methods for
Statistics dealing with numerical data
Geostatistics Encompasses all operations from collection
Universe and analysis of the data to the
interpretation of the results
Sampling Unit
Support
Population
Random Variable

1
Geostatistics
Throughout this workbook, geostatistics will
refer only to the statistical methods and tools
used in ore reserve analysis
Sampling Unit
Part of the universe on which a measurement
is made (can be a core sample, channel
sample, a grab sample etc.; one must specify
the sampling unit when making statements
about a universe)
Population
Like universe, population refers to the total
category under consideration
It is possible to have different populations
within the same universe (for example,
population of drillhole grades versus
population of blasthole grades; sampling
unit and support must be specified)
Universe
The source of all possible data (for example,
an ore deposit can be defined as the
universe; sometimes a universe may not
have well defined boundaries)
Support
Characteristics of the sampling unit
Refers to the size, shape and orientation of
the sample (for example, drillhole core
samples will not have the same support as
blasthole samples)
Random Variable
A variable whose values are randomly
generated according to a probabilistic
mechanism (for example, the outcome of a
coin toss, or the grade of a core sample in a
diamond drill hole)
2
F requency Distribution F requency Distribution

Probability Density Function (pdf) Cumulative Density Function (cdf)

Discrete: Proportion of the population below a certain
1. f(xi) 0 for xiR (R is the domain) value:
2. f(xi) = 1 F(x) = P(Xx)
Continuous: 1. 0F(x) 1 for all x
1.f(x) 0 2. F(x) is non decreasing
2.f(x)dx = 1 3. F(-)=0 and F()=1

Example PDF

Assume the following population of

1
measurements: 0.9
0.8
1, 7, 1, 3, 2, 3, 11, 1, 7, 5 0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
0 1 2 3 4 5 6 7 8 9 10 11

CDF Descriptive Measures

Measures of location:
1
0.9 Mean
0.8
0.7 Median
0.6
0.5 Mode
0.4
0.3 Min, Max
0.2
0.1 Quartiles
0
0 1 2 3 4 5 6 7 8 9 10 11
Percentiles

3
Mean Mean

m = 1/n xi i=1,...,n What is the mean of the example population:

Arithmetic average of the data values 1, 7, 1, 3, 2, 3, 11, 1, 7, 5

m =?

Mean Mean

m= (1+ 7+ 1+ 3+ 2+ 3+ 11+ 1+ 7+ 5)/10= What is the mean if we remove highest

= 41/10= value?
= 4.1

Mean Median

m= (1+ 7+ 1+ 3+ 2+ 3+ 1+ 7+ 5)/9= M = x(n+1)/2 if n is odd

= 30/9= M = [x n/2+x(n/2)+1]/2 if n is even
= 3.33
Midpoint of the data values if they are sorted
in increasing order

4
Median Median

What is the median of example population? Sort data in increasing order:

1, 1, 1, 2, 3, 3, 5, 7, 7 ,11
M=?
M=3

Other Mode

Mode The value that occurs most frequently

Minimum
Maximum In our example:
Quartiles
Deciles Mode=?
Percentiles
Quantiles

Mode Quartiles

1, 1, 1, 2, 3, 3, 5, 7, 7 ,11 Split data in quarters

Mode = 1 Q1 = 1st quartile

Q3 = 3rd quartile

In example:
Q1=?
Q3=?

5
Quartiles Deciles, Percentiles,Quantiles

1, 1, 1, 2, 3, 3, 5, 7, 7 ,11 1, 1, 1, 2, 3, 3, 5, 7, 7 ,11
Q1= 1
Q3= 6 D1= 1
D3= 1
D9= 7

Mode on the PDF Mean on the PDF

Mode (also min)

Mean(=4.1)

Max

Median on the CDF Descriptive Measures

Measures of spread:
Variance
Standard Deviation
Interquartile Range

6
Variance Variance

S2 = 1/(n-1) (xi-m)2 i=1,...,n Example:

1, 1, 1, 2, 3, 3, 5, 7, 7 ,11
M=4.1
Sensitive to outlier high values S2= 1/9 {(1-4.1)2+ (1-4.1)2+ (1-4.1)2+ (2-4.1)2+ (3-4.1)2+
Never negative (3-4.1)2+ (5-4.1)2+ (7-4.1)2+ (7-4.1)2+ (11-4.1)2 } =
= 1/9 (9.61+ 9.61+ 9.61+ 4.41+ 1.21+ 1.21+ 0.81+ 8.41+
8.41+ 47.61) =
= 100.9/9 =
= 11.21

Variance Standard Deviation

s = s2
Remove high value:
1, 1, 1, 2, 3, 3, 5, 7, 7
Has the same units as the variable
M=3.33
S2= 1/8 {(1-3.33)2+ (1-3.33)2+ (1-3.33)2+ (2-3.33)2+ Never negative
(3-3.33)2+ (3-3.33)2+ (5-3.33)2+ (7-3.33)2+
(7-3.33)2 =
= 1/8 (5.43+ 5.43+ 5.43+1.769+ 0.109+ 0.109+ 2.789+
13.469+ 13.469) =
= 48/8 =
=6

Standard Deviation Interquartile Range

Example: IQR = Q3 - Q1
S2= 11.21
S = 3.348 Not used in mining very often

S2 = 6
S =2.445

7
Descriptive Measures Skewness

Measures of shape: Skewness = [1/n (xi-m)3] / s3

Skewness Third moment about the mean divided by
Peakedness (kurtosis) the cube of the std. dev.
Coefficient of Variation Positive - tail to the right
Negative - tail to the left

Skewness Skewness
Example: Remove high value:
1, 1, 1, 2, 3, 3, 5, 7, 7 ,11 1, 1, 1, 2, 3, 3, 5, 7, 7
M=4.1 M=3.3
Sk= 1/10 {(1-4.1)3+ (1-4.1)3+ (1-4.1)3+ (2-4.1)3+ Sk= 1/10 {(1-3.3)3+ (1-3.3)3+ (1-3.3)3+ (2-3.3)3+
(3-4.1)3+ (3-4.1)3+ (5-4.1)3+ (7-4.1)3+ (3-3.3)3+ (3-3.3)3+ (5-3.3)3+ (7-3.3)3+
(7-4.1)3+ (11-4.1)3 } = (7-3.3)3 } =
= 1/10 (-29.79-29.79-29.79-8.82-1.33 1.33+ 0.73+ = 1/10 (-12.17- 12.17- 12.17- 2.2- 0.03- 0.03+ 4.91+
24.39+ 24.39+328.51) = 50.65+ 50.65) =
= 277.2/10 = = 67.44/9 =
= 27.72 = 7.49

Positive Skewness Peakedness

Peakedness = [1/n (xi-m)4] / s4

Fourth moment about the mean divided by
the fourth power of the std. dev.
Describes the degree to which the curve
tends to be pointed or peaked
Higher values when the curve is peaked
Usefulness is limited

8
Coefficient of Variation Coefficient of Variation

CV = s/m In our example:

No units CV = 3.348/4.1 =0.817
Can be used to compare relative dispersion
of values among different distributions Remove high value:
CV > 1 indicates high variability CV = 2.445/3.33=0.743

Normal Distribution Normal Distribution curve

f(x) = 1 / (s 2) exp [-1/2 ((x-m)/s)2]

symmetric, bell-shaped
68% of the values are within one std. dev.
95% of the values are within two std. dev.

Std. normal distribution Normal Distribution Tables

mean = 0 and s = 1 The cumulative distribution function F(x) is

standardize any variable using: not easily computed for the normal
z = (x-m) / s distribution.
Extensive tables have been prepared to
simplify calculation
Most statistics books include tables for the
std. normal distribution

9
Example of cdf (normal) Lognormal Distribution
Find the proportion of sample values above 0.5 cutoff in a Logarithm of a random variable has a normal
normal population that has m =0.3, and s = 0.2
Solution: distribution
First, transform the cutoff, x0 , to unit normal. f(x) = 1 / (x 2 ) e -u for x > 0, > 0
z = (x0 - m) / s = (0.5 - 0.3) / 0.2 = 1
Next, find the value of F(z) for z = 1. The value of F(1) = 0.8413 where
from Table u= (ln x - ) 2 / 2 2
Calculate the proportion of sample values above 0.5 cutoff,
P(x > 0.5), as follows: = mean of logarithms
P(x > 0.5) = 1 - P(x 0.5) = 1 - F(1) = 1 -0.8413 = 0.16 = variance of logarithms
Therefore, 16% of the samples in the population are > 0.5

Conversion Formulas Lognormal Distribution Curve

Conversion formulas between the normal

and lognormal distributions:
Lognormal to normal:
= exp (+ 2 /2)
2 = 2 [exp( 2) - 1]
Normal to lognormal:
= log - 2 /2
2 = log [1 + (2 / 2)]

Three-Parameter LN Distribution Bivariate Distribution

Logarithm of a random variable plus a Joint distribution of outcomes from two

constant, ln (x+c) is normally distributed random variables X and Y:
F(x,y) = Prob {Xx, and Yy}
Constant c can be estimated by: In practice, it is estimated by the proportion
c = (M2 - q1 q2 ) / (q1 + q2 + 2M) of pairs of data values jointly below the
respective threshold values x, y.

10
Statistical analysis E rror Checking

To organize, understand, and/or describe
data
To check for errors
To condense information
To uniformly exchange information
Avoid zero for defining missing values
Check for typographical errors
Sort data; examine extreme values
Plot sections and plan maps for coordinate
errors
Locate extreme values on map; Isolated?
Trend?

Data Analysis and Display Tools Data Analysis and Display Tools

Correlation
Frequency Distributions Correlation Coefficient
Histograms Linear Regression
Cumulative Frequency Tables Data Location Maps
Probability plots Contour Maps
Scatter Plots Symbol Maps
Q-Q plots Moving Window Statistics
Proportional Effect

Histograms Histogram in text file

# CUM. UPPER
FREQ. FREQ LIMIT 0 20 40 60 80 100

Visual picture of data and how they are -----

86
34
-----
.093
.130
----- +......... +......... +. ........ +. ........ + ......... +
.100 +*****.
.200 +** .
+
+
48 .182 .300 +*** . +

distributed 73
86
80
.261
.354
.440
.400 +****
.500 +*****
.600 +****
.
.
.
+
+
+
84 .531 .700 +***** . +

Bimodal distributions show up easily 74

70
60
.611
.686
.800 +****
.900 +****
.751 1.000 +***
.
.
.
+
+
+
43 .798 1.100 +** . +

Outlier high grades 28

29
31
.828 1.200 +**
.859 1.300 +**
.893 1.400 +**
. +
. +
.+
25 .920 1.500 +* .+
19 .941 1.600 +* .
Variability 16
8
9
.958 1.700 +*
.966 1.800 +
.976 1.900 +
.
.
.
3 .979 2.000 + .
6 .986 2.100 + .
4 .990 2.200 + .
1 .991 2.300 + .
3 .995 2.400 + .
3 .998 2.500 + .
1 .999 2.600 + .
0 .999 2.700 + .
0 .999 3.500 + .
0 .999 3.600 + .
0 .999 3.700 + .
1 1.000 3.800 + .
---- ----- ----- + .........+ .........+ ......... + .........+ . ........ +
925 1.000 0 20

11
Histogram Plot Histograms with skewed data

Data values may not give a single

informative histogram

One histogram may show the entire spread

of data, but another one may be required to
show details of small values.

Histograms with skewed data Cumulative Frequency Tables

CUTOFF SAMPLES PERCENT MEAN C.V.
CU ABOVE ABOVE ABOVE

.000 2399.00 100.00 .5129 .8782

.200 1717.00 71.57 .6858 .6133
.400 1240.00 51.69 .8365 .4809
.600 840.00 35.01 1.0025 .3889
.800 522.00 21.76 1.1917 .3229
1.000 310.00 12.92 1.4012 .2663
1.200 205.00 8.55 1.5682 .2266
1.400 133.00 5.54 1.7165 .2106
1.600 72.00 3.00 1.9206 .2002
1.800 35.00 1.46 2.1697 .1966
2.000 21.00 .88 2.3614 .1947
2.200 11.00 .46 2.6118 .2006
2.400 6.00 .25 2.8667 .2134
2.600 2.00 .08 3.6550 .0174
2.800 2.00 .08 3.6550 .0174
3.000 2.00 .08 3.6550 .0174
3.200 2.00 .08 3.6550 .0174
3.400 2.00 .08 3.6550 .0174
3.600 2.00 .08 3.6550 .0174

Min. data value = .0000

Max. data value = 3.7000
Std. Deviation = .450
C.V. = Coeff. of variation = Standard deviation / mean
2399 Intervals used out of 2412

Probability Plots Probability Plot

Shows if distribution is normal or lognormal

Presence of multiple populations
Proportion of outlier high grades

12
Scatter Plots Scatter Plot

Simply an x-y graph of the data

It shows how well two variables are related
Unusual data pairs show up
For skewed distributions, two scatter plots
may be required to show both details near
origin and overall relationship.

L inear Regression L inear Regression

y = ax + b Different ranges of data may be described

a = slope, b = constant of the line adequately by different regressions

a = r (y/x) Cu<5, Mo<0.5

b = my - amx
y= 6.526x +0.127

L inear Regression Q-Q Plots

Quantile-Quantile plots
Straight line indicates the two distributions
have the same shape
Cu<0.5, Mo<0.05 45-degree line indicates that mean and
variance are the same.
y= 8.363x +0.049

13
Q-Q plot Covariance

Covxy= 1/n (xi-mx)(yi-my) i=1,...,n

Where
mx = mean of x values and
my = mean of y values

High Positive Covariance Covariance Near Zero

x-mx<0 x-mx>0

y-my>0
my
y-my<0

mx

Large Negative Covariance Covariance

It is affected by the magnitude of the data

Values:
Multiply x and y values by C, then
covariance increases be C2.

14
Covariance Correlation

C = 2097.5 Three scenarios between two variables:

Positively correlated
Negatively correlated
Uncorrelated

C=20.975

Correlation Coefficient Correlation Coefficient

r = Covxy / xy

r = 1, straight line, positive slope

r = -1, straight line, negative slope
r = 0, no correlation
May be affected by a few outliers
It removes the dependence on the
magnitude of the data values. = 0.99

Correlation Coefficient Correlation Coefficient

= -0.03 = -0.97

15
Correlation Coefficient
It measures linear dependence
= -0.08
Contour Maps
Moving Window Statistics
Divide area into several local areas of
same size
Calculate statistics for each smaller area
Useful to investigate anomalies in mean
and variance
Data Location Map
Symbol Maps
Each grid location is represented by a
symbol that denotes the class to which the
value belongs
Designed for the line printer
Usually not to scale
Proportional Effect
Mean and variability are both constant
Mean is constant, variability changes
Mean changes, variability is constant
Both mean and variability change
16
Proportional Effect Plot

17
Spatial continuity Spatial continuity

H- scatter plots A series of h-scatter plots for several

Plot the value at each sample location
versus the value at a nearby location
separation distances can show how the
spatial continuity decays with increasing
distance.
You can further summarize spatial
continuity by calculating some index of the
strength of the relationship seen in each
h-scatter plot.

Spatial continuity Moment of inertia

For a scatter plot that is roughly symmetric

about the line x=y, the moment of inertia
about this line can serve as a useful index of
the strength of the relationship.

= moment of inertia about x=y

= average squared distance from x=y
=1/n [1/2 (xi-yi)2]
=1/2n (xi-yi)2

Moment of inertia Variogram

Measures spatial correlation between
samples

Y (h) = 1 / 2n [Z(xi) - Z(xi+h)]2

X-Y

Semi-variogram will be referred as

(X-Y)/2
variogram for convenience
(X,Y)

18
Variogram Variogram parameters

Function of distance Range

Vector Sill
Depends on distance and direction Nugget Effect

Sample variogram output Data for computation

TYPE: NORMAL TRANSFORMATION: NONE VARIABLE: CU

FROM TO PAIRS DISTANCE DRIFT V(H) MEAN

1 0 - 50 2666 30.9 .2536E-01 .1030E+00 .7488E+00
2 50 - 100 9734 79.2 -.8209E-03 .2186E+00 .8056E+00
3 100 - 150 23036 126.4 -.2306E-01 .2490E+00 .7981E+00
4 150 - 200 32117 175.6 -.1505E-01 .2560E+00 .7652E+00
5 200 - 250 45989 225.4 .2757E-02 .2601E+00 .7419E+00
6 250 - 300 47351 275.1 -.2589E-01 .2508E+00 .7286E+00
7 300 - 350 51794 324.7 -.2560E-01 .2505E+00 .7417E+00
8 350 - 400 46522 373.8 -.3154E-01 .2434E+00 .7270E+00
9 400 - 450 40313 424.5 -.4489E-01 .2448E+00 .7113E+00
10 450 - 500 32113 473.7 -.4401E-01 .2270E+00 .6915E+00
.2790E+00 +
.2647E+00 + X
.2504E+00 + XX XXXX
.2361E+00 +
.2218E+00 + X X
.2075E+00 +
.1932E+00 +
.1789E+00 +
.1645E+00 +
.1502E+00 +
.1359E+00 +
.1216E+00 +
.1073E+00 + X
.9300E-01 +
.7869E-01 +
.6439E-01 +
.5008E-01 +
.3577E-01 +
.2146E-01 +
.7154E-02 +
- - - - - - - + - - - - - - - - -+
250. 500

Computation 1 Computation 2
For the first step (h=15), there are 4 pairs: For the second step (h=30), there are 3 pairs:
1. x1 and x2 , or .14 and .28 1. x1 and x3 , or .14 and .19
2. x2 and x3 , or .28 and .19 2. x2 and x4 , or .28 and .10
3. x3 and x4 , or .19 and .10 3. x3 and x5 , or .19 and .09
4. x4 and x5 , or .10 and .09 Therefore, for h=30, we get
Therefore, for h=15, we get
(30) = 1/(2*3) [(x1-x3)2 + (x2-x4) 2 + (x3-x5)2 ]
(15)=1/(2*4)[(x1-x2)2+(x2-x3)2+(x3-x4)2+(x4-x5)2 ] = 1/6 [(.14-.19)2 + (.28-.10)2 + (.19-.09)2 ]
= 1/8 [ (.14-.28)2 + (.28-.19)2 + (.19-.10)2 + (.10-.09)2] = 0.16667 [(-.05)2 + (.18)2 + (.10)2 ]
= 0.125 [(-.14)2 + (.09)2 + (.09)2 + (.01)2 ] = 0.16667 ( .0025 + .0324 + .0100 )
= 0.125 ( .0196 + .0081 + .0081 + .0001 ) = 0.16667 ( .0449 )
= 0.125 ( .0359 )
(30) = 0.00748
(15) = 0.00448

19
Computation 3 Computation 4

For the third step (h=45), there are 2 pairs: For the fourth step (h=60), there is only one pair:
1. x1 and x4 , or .14 and .10 x1 and x5 . The values for this pair are .14 and .09,
2. x2 and x5 , or .28 and .09 respectively. Therefore, for h=60, we get
Therefore, for h=45, we get (60) = 1/(2*1) (x1 - x5 ) 2
(45) = 1/(2*2) [(x1-x4 )2 + (x2-x5)2] = (.14-.09)2
= 1/4 [(.14-.10)2 + (.28-.09)2 ] = 0.5 (.05)2
= 0.25 [(.04)2 + (.19)2 ] = 0.5 ( .0025 )
= 0.25 ( .0016 + .0361 ) (60) = 0.00125
= 0.25 ( .0377 )
(45) = 0.00942 If we take another step (h=75), we see that there are
no more pairs. Therefore, the variogram calculation
stops at h=60.

Class Size Windows and Band Widths

Three possible options:

Lag distance = 50
0-50, 51-100, 101-151 etc..
Lag = 50, tolerance = 25
0-75, 75-125, 125-175 etc..
Lag = 50, strict tolerance = 25
0-25, 25-75, 75-125 etc..

Fitting a Theoretical Model Variogram models

Draw the variance as the sill (c + c0 )
Project the first few points to the y-axis. This is an Spherical
estimate of the nugget (c0 ). Linear
Project the same line until it intercepts the sill. This
distance is two thirds of the range for spherical Exponential
model. Gaussian
Using the estimates of range, sill, nugget and the
equation of the mathematical model under Hole-Effect
consideration, calculate a few points and see if the
curve fits the sample variogram.
If necessary, modify the parameters and repeat Step
Four to obtain a better fit.

20
Variogram Models Variogram Models

Sample Variogram Plot Types of Anisotropy

Geometric
same sill and nugget, different ranges
Zonal
same nugget and range, different sills

Anisotropy Modeling Anisotropy

Geometric

21
Modeling Anisotropy Modeling Geometrical Anisotropy: a recipe

Zonal Calculate variograms in different directions

Keeping nugget and sill the same, fit one-
dimensional models to the sample
variograms in all directions
Make a rose diagram of ranges and find the
direction of the longest range
If diagram looks like a circle, no anisotropy.
If diagram looks like an ellipse, there is
anisotropy. Use ellipse pattern in search
parameters.

Rose diagram Variogram Contours

45o
90o
0o

135o

Length of axes correspond to variogram ranges

Nested Structures Variogram types

Normal
Relative
Logarithmic
Covariance Function
Correlograms
Indicator Variograms
Cross Variograms

22
Relative Variogram Logarithmic Variogram
R (h) = (h) / [m(h) + c]2 Variogram using the logarithms of the data
instead of the raw data
c is a constant parameter used in the case of a
three- parameter lognormal distribution. y = ln x or
y = ln (x + c) for 3-parameter lognormal
Pairwise Relative Variogram:
Reduces or eliminates the impact of
PR (h) = 1/(2n) [(vi -vj ) 2 /((vi +vj )/2)2 ]
extreme data values on the variogram
structure
vi and vj are the values of a pair of samples at
locations i and j, respectively.

T ransformation from Logs Covariance Function Variograms

To transform log parameters back to normal values: C(h) = 1/N [vi vj - m-h . m+h ]
1. Ranges stay the same
2. Estimate the logarithmic mean () and variance (2). Use v1 ,...,vn are the data values
the sill of the logarithmic variogram as the estimate of 2 m-h is the mean of all the data values
3. Calculate the mean, () and the variance ( 2 ) of the
normal data:
whose locations are -h away from some
= exp ( + 2 /2) other data location.
2 = 2 [exp (2 ) - 1] m+h is the mean of all the data values
4. Set the sill of the normal variogram = the variance ( 2 ) whose locations are +h away from some
5. Compute c (sill-nugget) and c0 (nugget) of the normal
variogram:
other data location.
c = 2 [exp (clog ) - 1] (h) = C(0) - C(h)
c0 = sill - c

Correlograms Indicator Variogram

(h) = C(h) / ( -h . +h )
1, if z(x) < zc
-h is the standard deviation of all the data
i(x;zc) ={
values whose locations are -h away from
0, otherwise
some other data location:
where:
2-h = 1/N (vi2 - m2-h ) x is location,
+h is the standard deviation of all the data zc is a specified cutoff value,
values whose locations are +h away from z(x) is the value at location x.
some other data location:
2+h = 1/N (vj 2 - m 2+h )

23
Cross Variograms
CR (h) = 1/2n [u(xi)-u(xi+h)]2 * [v(xi)-v(xi+h)]2
Used to describe cross-continuity between
two variables
Necessary for co-kriging and probability
kriging
Cross Validation
Predicts a known data point using an
interpolation plan
Only the surrounding data points are used
to estimate this point, while leaving the data
point out.
Other names: Point validation, jack-knifing

Cross Validation Cross Validation Report

Variable : CU
The least amount of average estimation
error ACTUAL KRIGING DIFF

Either the variance of the errors or the Mean = 0.6991 0.7037 -0.0045
weighted square error (or variance) is Std. Dev. = 0.5043 0.3870 0.2869

closest to the average kriging variance. Minimum = 0.0000 0.0200 -0.9400

Maximum = 3.7000 2.1000 2.2100
The weighted square error (WSE) is given Skewness = 1.0641 0.5634 1.3559

by the following equation: Peakedness= 2.0532 -0.0214 7.0010

WSE = [(1/i 2) (ei)2 ] / (1/i2) Ave. kriging variance = 0.3890

Weighted square error = 0.0815

24
T he Necessity of Modeling
Suppose we have the data set below
It provides virtually no information about the
entire profile
Probabilistic Models
The variables of interest in earth science
data are typically the end result of vast
number of processes whose complex
interactions cannot be described
quantitatively.
Probabilistic random function models
recognize this uncertainty and provide tools
for estimating values at unknown locations
once some assumptions about the statistical
characteristics of the phenomenon are
made.
Random Variables
A random variable is a variable whose
values are randomly generated according to
some probabilistic mechanism.
The result of throwing a die is a random
variable. There are 6 equally probable
values of this random variable: 1,2,3,4,5,6
Deterministic Models
Depend on:
Context of data
Outside information (not contained in data)
Probabilistic Models
In a probabilistic model, available sample
data are viewed as the result of a random
process.
Data are not generated by a random
process; rather, their complexity appears as
random behavior
Functions of Random Variables
Since the outcomes of a R.V. are numerical
values, we can define another random variable by
performing mathematical operations on the
outcome of a random variable.
Example: if D is the variable defined as the result
of throwing a die, 2D can be the variable defined
as the result of throwing the die and doubling the
result.
25
Parameters of a Random Variable Parameters of a Random Variable

The set of outcomes and their corresponding The complete distribution can not be
probabilities is sometimes referred to as the determined from the knowledge of only a few
probability distribution of a random variable. parameters.

These probability distributions have Two random variables may have the same
parameters that can be summarized. mean and variance but their distributions
may be different.
Example: Min, Max etc

Parameters of a Random Variable Parameters of a Random Variable

The parameters can not be calculated by

observing the outcomes of a random variable. The two most commonly parameters used in
probabilistic approaches to estimation are the
From a sequence of observed outcomes all we can
calculate is sample statistics based on that set of data. mean or expected value of the random
Different set of data will produce different statistics. variable and its variance.
As the number of outcomes increases, the sample
statistics becomes more similar to their model parameters.
In practice, we assume that the parameters of our random
variable are the same as the sample statistics.

Expected value Variance of a Random Variable

The variance of a random variable is the

Expected value of a random variable is its
expected squared difference from the mean
mean or average outcome.
of the random variable.
= E(x)
2 = E (x-)2 = - (x-)2 f(x) dx
E(x) refers to expectation:
E(x) = - x f(x) dx
Std. dev. is
where f(x) is the probability density function
of the random variable x.

26
Expected value
Example:
Define R.V. L=outcome of throwing two dice
and taking the larger of the two values.
What is the expected value of L?
E(L)=1/36 (1)+3/36 (2)+5/36 (3)
+7/36(4)+9/36 (5)+11/36 (6) =
= 4.47
Covariance
The dependence between two random
variables is described by covariance
Cov(x1 ,x2) = E {[x1 - E(x2)] [x2 - E(x2)]}
= E(x1 x2) - [E(x1)] [E(x2)]
Expectation and variance
Properties:
C is a constant, then E(Cx) = C E(x)
If x1 , x2 , ..., xn have finite expectation, then
E(x1 +x2 ...+xn ) = E(x1) + E(x2) + ... + E(xn)
If C is a constant, then Var(Cx) = C2 Var(x)
If x1 , x2 , ..., xn are independent, then
Var(x1 +x2 ...+xn) = Var(x1)+Var(x2)+...+Var(xn)
Var(x+y) = Var(x) + Var(y) + 2 Cov(x,y)
Joint Random Variables
Random variables may also be generated in
pairs according to some probabilistic
mechanism; the outcome of one of the
variables may influence the outcome of the
other.
Independence
Random variables are considered
independent if the joint probability density
function satisfies:
p(x1 ,x2 ,...,xn) = p(x1) p(x2) ... p(xn)
i.e., probability of two event happening is
the product of each events probability
Weighted Linear Combinations of Random Variables
Estimate is an outcome of a random variable
that is created by a weighted linear
combination of other random variables.
Expected value and Variance (same
definition as before)
27
Random Functions
R.F. is a set of random variables that have
some spatial locations and whose
dependence on each other is specified by
some probabilistic mechanism.
Random Functions
Parameters commonly used to summarize
the behavior of the random function:
Expected value
Variance
Covariance
Correlogram
Variogram
L inear Estimators
all estimation methods involve weighted
linear combinations:
estimate = z* = wi z(xi) i = 1,...,n
The questions:
What are the weights, wi ?
What are the values, z(xi) ?
Parameters of R F
The set of realizations of a random function
and their corresponding probabilities are
often referred as the probability
distribution
Like the histograms of sample values,
these probability distributions have
parameters that summarize them
Reality vs Model
Reality:
sample values
summary statistics
Model:
possible outcomes with corresponding
probabilities of occurrence
parameters
It is important to recognize the distinction
between a model and the reality
Desirable Properties
Desirable properties of an estimator:
Average error = 0 (unbiased)
E (Z - Z * ) = 0
where Z * is the estimate and Z is the true value
of the random variable
Error variance (spread of errors) is small
Var (Z - Z * ) = E (Z - Z * )2 = small
Robust
Question:
How to calculate the weights so that they satisfy
the required properties?
28
Random Process Assumptions
Strong stationarity
Second order stationarity
Intrinsic hypothesis
Strong Stationarity
In order for a random function Z(x) to meet the
strong stationarity requirement, the following
properties must be satisfied:
E[Z(x)] = m, m = finite and independent of x
No gradual increase or decrease in grade for some
specified direction (no drift).
Var[Z(x)]= 2 , 2 = finite and independent of x
Constant parameter value of the underlying
density functions.
Intrinsic Hypothesis
The intrinsic hypothesis of order zero:
E[Z(x)] = m, m = finite and independent of
x E[Z(x+h)-Z(x)]=m(h)=finite and independent of x
E[Z(x+h)- Z(x)]2 = 2(h) = finite and
independent of x (variogram function)
We assume no drift , and the existence
and the stationarity of the variogram only.
If condition of no drift in a deposit cannot
be satisfied, the intrinsic hypothesis of
order one is invoked.
Stationarity
The independence of univariate and bivatiate
probability laws from the location x is referred
as stationarity.
(They may depend on separation distance h)
Second Order Stationarity
E[Z(x)] = m, m = finite and independent of x
E[Z(x+h). Z(x)] - m2 = C(h) = finite and independent of x
For each pair of random variables Z(x+h) and Z(x), the
covariance exists and depends only on the separation
distance h.
The covariance does not depend on the particular
location x within the deposit.
The stationarity of covariance implies the stationarity of
the variance as well as the variogram.
Under this assumption, the relationship between the
variogram and the covariogram is:
(h) = C(0) - C(h) = Var[Z(x)] - C(h)
Intrinsic Hypothesis
Intrinsic hypothesis of order one:
E[Z(x+h)-Z(x)]2=2(h) = finite and independent of x
The difference in the mean must be finite,
independent of the support point x, and depend
only on the separation distance h.
In performing local estimation using ordinary
kriging, the intrinsic hypothesis of order zero is
invoked. Universal kriging may be employed under
the first order hypothesis.
29
En suring Unbiasednes s En suring Unbiasednes s
Estimated value: Z* = i Z(xi)
Estimated error: R* = Z*-Zo = iZ(xi) - Zo Sum of weights, wi = 1
Average error: r = 1/n R*
Set expected value of average error to zero:
Two limitations:
E{r} = E{1/n R*} = 1/n E{R*} = 0 The average error is not guaranteed to be
To guarantee that E{r} = 0, make E{R*} = 0
zero, only the expected value
E{R*} = E{i Z(xi) - Zo}
= iE{Z(xi)} - E{Zo} The result is valid only if the linear
Using the strong stationarity requirement: combination belongs to the same statistical
E{Z(xi)} = E{Zo} = E{Z}
Therefore, population
E{R*} =iE{Z} - E{Z} = 0 =>
(i -1) E{Z} = 0 => i -1 = 0 => i =1

E stimation methods Polygonal

Traditional: Assigns all weight to nearest sample.

Advantages:
Polygonal Easy to understand
Triangulation Easy to calculate manually
Inverse distance Fast
Geostatistical: Declustered global histogram
Disadvantages:
Kriging
Discontinuous local estimates
Edge effect
No anisotropy
No error estimation

T riangulation Inverse Distance

Weight at each triangle is proportional to the
area of the opposite sub triangle. Each sample weight is inversely proportional to
Advantages: the distance between the sample and the point
being estimated:
Easy to understand and calculate manually
Fast z* = [ (1/dip) z(xi ) ] / (1/ dip) i = 1,...,n
Disadvantages: where
Not unique solution z* is the estimate of the grade of a block or a point,
Only three samples receive weights z(xi) refers to sample grade,
Extrapolation? p is an arbitrary exponent,
3d? and n is the number of samples
No anisotropy
No error control

30
Inverse Distance Inverse Distance

If p tends to zero =>local mean sample Advantages:

Easy to understand
Easy to implement
If p tends to => nearest neighbor method Flexible in adapting weights to different
(polygonal) estimation problems
Can be customized
Disadvantages:
Traditionally, p = 2 Susceptible to data clustering
p?
No anisotropy
No error control

Ordinary kriging Ordinary kriging

Definition:
Ordinary kriging is an estimator designed
primarily for the estimation of block grades
as a linear combination of available data
in or near the block, such that estimate is
unbiased and has minimum variance.
B.L.U.E. for best linear unbiased
estimator.
Linear because its estimates are weighted
linear combinations of available data
Unbiased since the sum of the weights
adds up to 1
Best because it aims at minimizing the
variance of errors.

Kriging Estimator Kriging Estimator

z* = wi z(xi ) i = 1,...,n Desirable Properties:

where Minimize 2 = F (w1, w2, w3,,wn)
z* is the estimate of the grade of a block or r = average error = 0 (unbiased)
a point, wi = 1
z(xi) refers to sample grade,
wi is the corresponding weight assigned to
z(xi),
and n is the number of samples.

31
E rror variance E rror variance

Using R. F. model, you can express the error 2R= 2z + (i j Ci,j ) - 2 i C i,o
variance as a function of R.F. parameters:
2R= 2z + (i j Ci,j ) - 2 i C i,o
Error increases as variance of data
where increases
2z is the sample variance
Error variance increases as data become
Ci,j is the covariance between samples more redundant
Ci,o is the covariance between samples and
Error variance decreases as data are
location of estimation. closer to the location of estimation
See Isaaks and Srivastava pg 281-284

Ordinary Kriging Kriging System (point)

Previous equation in matrix form:
Minimize error
2R= 2z + (i j Ci,j ) - 2 i C i,o
i = 1
Use Lagrange method (Isaaks and
Srivastava, pg 284-285).

Result:
Ci,o = (i Ci,j) +
i = 1

Point Kriging (cont.) Kriging System (block)

Matrix C consists of the covariance values Cij

between the random variables Vi and Vj at the
sample locations.
Vector D consists of the covariance values Ci0
between the random variables Vi at the sample
locations and the random variable V0 at the
location where an estimate is needed.
Vector consists of the kriging weights and the
Lagrange multiplier.

32
Block Kriging (cont.) Kriging Variance
In point kriging, the covariance matrix D
consists of point-to-point covariances. In block
kriging, it consists of block-to-point covariances. 2ok = CAA - [(i CiA) + ]
Covariance values CiA no longer a point-to-point
covariance like Ci0 , but the average covariance Data independent
between a particular sample and all of the points
within A:
CiA = 1/A Cij
In practice, the A is discretized using a number of
points in x, y and z directions to approximate CiA .

Block Discretization Advantages of kriging

Takes into account spatial continuity
To be considered:
characteristics
Range of influence of the variogram used in
kriging. Built-in declustering capability
Size of the blocks with respect to this range. Exact estimator
Horizontal and vertical anisotropy ratios. Calculates the kriging variance for each
block
Robust

Disadvantages of kriging Assumptions

No drift is present in the data

computer required (Stationarity hypothesis)
prior variography required Both variance and covariance exist and are
more time consuming finite.
smoothing effect The mean grade of the deposit is unknown.

33
E ffect of scale E ffect of shape

Nugget Effect E ffect of range

E ffect of Anisotropy Search Strategy

Define a search neighborhood within which
a specified number of samples is used

If anisotropy, use an ellipsoidal search

Orientation of this ellipse is important

If no anisotropy, search ellipse becomes a

circle and the question of orientation is no
longer relevant

34
Search Strategy Search strategy (cont.)
Include at least a ring of drill holes with enough
samples around the blocks to be estimated

Dont extend the grades of the peripheral holes to

the undrilled areas too far

Increasing vertical search distance has more

impact on number of samples available for a given
block, than increasing horizontal search distance (in
vertically oriented drillholes)

Limit the number of samples used from each

individual drillhole

Octant or Quadrant Search Importance of kriging plan

An easily overlooked assumption in every estimate

is the fact the sample values used in the weighted
linear combination are somehow relevant, and that
they belong to the same group or population, as the
point being estimated. Deciding which samples are
relevant for the estimation of a particular point or a
block may be more important than the choice of an
estimation method.

Declustering Declustering
Clustering in high grade area: Clustering in mean grade area:
Nave mean= Nave mean=
(0+1+3+1+7+6+5+6+2+4+0+1)/ (7+1+3+1+0+6+5+1+2+4+0+6)/
12 = 3 12 = 3

Declustered mean= Declustered mean=

[(0+1+3+1+2+4+0+1) + [(7+1+3+1+2+4+0+6) +
(7+6+5+6)/4] /9 = (0+6+5+1)/4] /9 =
=2 =3

35
Declustering Declustering
Clustering in low grade area:
Data with no correlation, do no need
Nave mean=
(7+1+6+1+0+3+4+1+2+5+0+6)/ declustering (pure nugget effect model)
12 = 3

Declustered mean= If variogram model has a long range and

[(7+1+6+1+2+5+0+6) + low nugget, you may need to decluster.
(0+3+4+1)/4] /9 =
=3.33

Declustering Cell Declustering

Each datum is weighted by the inverse of
the number of data in the cell
Cell declustering

Polygonal

Polygonal Declustered Global Mean

DGM = (wi . vi ) / wi i=1,...,n

where n is the number of samples, wi are

the declustering weights assigned to each
sample, and vi are the sample values. The
denominator acts as a factor to standardize
the weights so that they add up to 1.

36
Cross Validation
To check how well the estimation
procedure can be expected to perform.
Temporarily discard the sample value at a
particular location and then estimate the
value at that location using the remaining
values.
Cross validation
Check:
Histogram of errors
Scatter plots of actual versus estimate
Quantifying Uncertainty
One approach:
Assume that the distribution of errors is
Normal
Assume that the ordinary kriging estimate
provides the mean of the normal
distribution
Build 95 percent confidence intervals by
taking 2 standard deviations either of the
OK estimate
Cross validation
It may suggest improvements
It compares, does not determine
parameters
Reveals weaknesses/shortcomings
Cross validation
Remember:
All conclusions are based on observations
of errors at locations were we do not need
estimates.
We remove values that, after all, we are
going to use.
Quantifying Uncertainty
Kriging Variance
2ok = CAA - [(i CiA) + ]
Advantages
Does not depend on data
It can be calculated before sample data are
available (from previous/know variography)
Disadvantages
Does not depend on data
If proportional effect exists, previous assumptions
are not true
37
Quantifying Uncertainty Quantifying Uncertainty

Other approach
Incorporate the grade in the error variance
calculation:
Same Kriging Variance!!!
Relative Variance = Kriging Variance /Square
of Kriged Grade

Quantifying Uncertainty Quantifying Uncertainty

Combined Variance = sqrt (local variance * Relative Variability Index(RVI) =

kriging variance) SQRT(Combined Variance) / Kriged Grade
where local variance of the weighted average (2w ) is:
2w = w2i * (Z0- zi )2 i = 1, n (n>1)
where
n is the number of data used,
wi are the weights corresponding to each datum,
Z0 is the block estimate,
and zi are the data values.

Change of Support Change of Support

N=4
M = 8.825 N = 16
M = 8.825

38
Change of Support Change of Support

>10
N = 2 = 50% >10
M = 11.15 N = 5 = 31%
M =18.6

Change of Support Affine Correction

The mean above 0.0 cutoff does not
change with a change in support
The variance of block distribution
decreases with larger support
The shape of the distribution tends to
become symmetrical as the support
increases
Recovered quantities depend on block size
Assumptions:
The distribution of block or SMU grades has
same shape as the distribution of point or
composite samples.
The ratio of the variances, i.e., variance of
block grades (or the SMU grades) over that of
point grades is non-conditional to surrounding
data used for estimation.

Kriges Relation Kriges Relation (contd)

2p = 2b + 2 pb Total 2 = between block 2 + within block 2

2p = Dispersion variance of composites in the 2p = calculated directly from the composite or

deposit (sill) blasthole data
2b = Dispersion variance of blocks in the deposit
2 pb = Dispersion variance of points in blocks 2 pb = calculated by integrating the variogram
over the block b
This is the spatial complement to the partitioning of
variances which simply says that the variance of 2b = calculated using the Kriges relation:
point values is equal to the variance of block 2b = 2p - 2 pb
values plus the variance of points within
blocks.

39
Kriges Relation (contd) Calculation of A.C.
How to calculate 2 pb ? K2 = 2b / 2p 1

Integrating the variogram over a block provides
variance of points within the block
2 pb = block = 1/n2 (hi,j)
(from the variogram averaging):
K2 = [ (D,D) - (smu,smu) ] / (D,D)
= 1 - [ (smu,smu) / (D,D) ] 1
Affine correction factor, K = K2 1

Affine Correction (cont.) Affine correction of Variance

Use affine correction if:

(2p -2b) /2 p 30%

Indirect Lognormal method Indirect Lognormal method

Assumption: all distributions are lognormal; Disadvantage:
the shape of distribution changes with changes in If the original distribution departs from log
variance. normality, the new mean may require rescaling:
Transform: znew = (mold/mnew) zold
znew = azbold
a = Function of (m, new ,old ,CV)
b = Function of (new,old,CV), see the notes
CV: coefficient of variation = old / mold

40
Change of Support (other)
Hermite Polynomials:
Declustered composites are transformed
into a Gaussian distribution
Volume-variance correction is done on the
Gaussian distribution
Then this distribution is back transformed
using inverse Hermite Polynomials
Change of Support (applications)
Design a search strategy:
Decluster composites/variogram
Define SMU units
Apply change of support from composites to SMU
Calculate the SMU GT curves.
Guess at a search scenario
Krige blocks => create GT curves
Compare GT curves of block estimates to GT
curves of SMUs
Adjust search scenario etc..
GT: grade tonnage curves
C. of S. for Ore Grade/Tonnage Estimation
Change of Support (other)
Conditional Simulation:
Simulate a realization of the composite (or
blasthole) grades on a very closely spaced
grid (for example, 1x1)
Average simulated grades to obtain
simulated block grades
Change of Support (applications)
Reconciliation between BH model and
Exploration model:
Calculate GT curves of exploration model
Apply change of support from BH model to
Exploration model
Calculate the adjusted BH model GT
curves.
Compare GT curves of block estimates to
GT of adjusted BH model estimates.
Equivalent Cutoff Calculation
(zp - m) / p = (zsmu - m) / smu
zp = the equivalent cutoff grade to be applied
to the point (or composite) distribution
m = mean of composite and SMU distribution
p = square root of composite dispersion
variance
zsmu = the cutoff grade applied to the SMU
m = mean of composite and SMU distribution
smu = square root of SMU dispersion
variance
41
Equivalent Cutoff Calculation
zp = ( p / smu ) zsmu + m [1 - ( p / smu )]
The ratio p / smu is basically the inverse
of the affine correction factor K.
This ratio is 1.
Equivalent Cutoff
if the specified cutoff grade is less than the
mean, the equivalent cutoff grade becomes
less than the cutoff
if the specified cutoff grade is greater than
the mean, the equivalent cutoff grade
becomes greater than the cutoff.
Numeric Example
Let the mean of composites = 0.0445, and
the specified cutoff grade zsmu = 0.055
If the ratio p / smu = 1.23, what is the
equivalent cutoff grade?
zp=1.23 (0.055) + 0.0445 (1 - 1.23) =0.0574
Therefore, the equivalent cutoff grade to be
applied to the composite distribution is
0.0574.
Change of Support (applications)
Other:
Almost required in MIK
42
Simple Kriging Cokriging
Z*sk = i [Z(xi ) - m] + m i = 1,...,n Suitable when the primary variable has not
been sampled sufficiently.
Z*sk - estimate of the grade of a block or a Precision of the estimation may be
point improved by considering the spatial
Z(xi ) - refers to sample grade correlations between the primary variable
i - corresponding simple kriging weights and a better-sampled variable.
assigned to Z(xi ) Example: extensive data from blastholes
n - number of samples as the secondary variable - Widely spaced
m = E{Z(x)} - location dependent expected exploration data as the primary variable.
value of Z(x).

Cokriging Cokriging-steps for Drill and Blasthole data

....................................... ..... ...........

Regularize blasthole data into a specified block size.
[8i]
[Cov{didi}] [Cov{dibj}] [1] [0]
....................................... .....
[Cov{x0di}]
...........
Block size could be the same as the size of the model
[*j]
[Cov{dibj}] [Cov{bjbj}] [0] [1]
.......................................
[Cov{x0bj}]
x ..... = ...........
blocks to be valued, or a discreet sub-division of such
[ 1 ] [ 0 ] 0 0
.......................................
d
.....
1
........... blocks. A new data base of average blasthole block
[ 0 ] [ 1 ] 0 0
.......................................
b
.....
0
........... values is thus established.
Variogram analysis of drillhole data.
[Cov{didi}] = drillhole data (dhs) covariance matrix, i=1,n
Variogram analysis of blasthole data.
[Cov{bjbj}] = blasthole data (bhs) covariance matrix, j=1,m

[Cov{dibj}] = cross-covariance matrix for dhs and bhs

Cross-variogram analysis between drill and blasthole
[Cov{x0di}] = drillhole data to block covariances data. Pair each drillhole value with all blasthole values.
[Cov{x0bj}] = blasthole data to block covariances
Selection of search and interpolation parameters.
[8i] = Weights for drillhole data

[*j] = Weights for blasthole data

Cokriging.
d and b = Lagrange multipliers

Universal Kriging Outlier Restricted Kriging

Determine the outlier cutoff grade
Assign indicators to the composites based on
the cutoff grade
0 if the grade is below the cutoff
1 otherwise
Use OK with indicator variogram, or simply
use IDS , or any other method to assign the
probability of a block to have grade above the
outlier cutoff.
Modify Kriging matrix.

43
ORK matrix Nearest Neighbor Kriging

Utilize nearest samples (assign more weight)

Non-Linear kriging methods Why Non-Linear

To overcome problems encountered with
Indicatorkriging outliers
Probability kriging To provide better estimates than those
Lognormal kriging provided by linear methods
Multi-Gaussian kriging To take advantage of the properties on non-
Lognormal short-cut normal distributions of data and thereby
Disjunctive kriging provide more optimal estimates
To provide answers to non-linear problems
Parametric (assumptions about distributions)
To provide estimates of distributions on a
or non-parametric (distribution-free)
scale different from that of the data (the
change of support problem)

Indicator Kriging Indicator Kriging

Suppose that equal weighting of N given samples is used The basis of indicator kriging is the indicator
to estimate the probability that the grade of ore at a function:
specified location is below a cutoff grade. At each point x in the deposit, consider the
The proportion of N samples that are below this cutoff following indicator function of zc defined as:
grade can be taken as the probability that grade estimated is 1, if z(x) < zc
below this cutoff grade.
i(x;zc ) =
Indicator kriging obtains a cumulative probability distribution
0, otherwise
where:
at a given location in a similar manner, except that it assigns
x is location,
different weights to surrounding samples using the ordinary
zc is a specified cutoff value,
Kriging technique to minimize the estimation variance.
z(x) is the value at location x.

44
Indicator Kriging
Examples:
Separate continuous variables into categories:
I(x) = 1 if k(x) 30, 0 if k(x) >30
Characterize categorical variables and
differentiate types:
I(x) = 1 for heterozygote, 0 for homozygote
Indicator Kriging (applications)
Some data may represent a spatial mixture of two
or more statistical populations (for example, clay
and sand.
Separate populations:
I(x) = 1 for clay, 0 for sand.
Then calculate the probability of an unsampled
location to be clay or sand.
Krige (local estimates) unsampled locations using
only data belonging to that population
Final estimate can be a weighted (by
probabilities) average of the local estimates.
Multiple Indicator Kriging
Same as indicator kriging but instead of one
cutoff, we use a series of cutoffs.
Indicator Kriging (applications)
Some drill holes have encountered a particular
horizon, some were not drilled deep enough, some
penetrated the horizon but the core or the log is
missing:
Use I(x) = 1 for drill hole assays above the horizon
and I(x) = 0 for assays below the horizon. Use
indicator kriging and calculate the probability of the
missing assays to be 1 or 0.
Indicator Kriging (applications)
Extreme values:
Separate population to 1 and 0 based on
outlier cutoff. Proceed then as though you
are dealing with two spatially mixed
populations.
Multiple Indicator Kriging
THE INDICATOR FUNCTION:
At each point x in the deposit, consider the
following indicator function of zc defined
as:
1, if z(x) < zc
i(x;zc ) =
0, otherwise
where:
x is location,
zc is a specified cutoff value,
z(x) is the value at location x.
45
Indicator Function at point x
Proportion of Values z(x) zc within area A
Local Recovery Functions
This approximation sums the product of
median cutoff grade and median (A;zc)
proportion for each cutoff grade increment.
The mean ore grade at cutoff zc gives the
mean block grade above the specified cutoff
value.
Mean ore grade at cutoff zc :
m*(A;zc) = q*(A;zc) / t*(A;zc)
T he (A;zc) function
(A;zc ) = 1/AA i(x;zc ) dx [0,1]
Local Recovery Functions
Tonnage point recovery factor in A:
t*(A;zc) = 1 - (A;zc)
Quantity of metal recovery factor in A:
q*(A;zc) = zc u d (A;u)
A discrete approximation of this integral is given by
q*(A;zc) = 1/2 (zj + zj-1) [*(A;zj) -*(A;zj-1) ] j=2,...,n
E stimation of (A;zc)
(A;zc) proportion of grades z(x) below cutoff zc within panel
A. (unknown since i(x;zc) known at only a finite number of
points).
(A;zc) = 1/n i(xj ;zc) j=1,...,n
or
(A;zc) = j i(xj ;zc) xj D j=1,...,N
where n is the number of samples in the panel A,
N is the number of samples in search volume D,
j are the weights assigned to the samples,
j = 1, and usually N >> n.
Ordinary kriging is used to estimate (A;zc) from the indicator
data i(xj ;zc). We use a random function model for i(xj ;zc),
which will be designated by I(xj ;zc).
46
Indicator Variography Median Indicator Variogram

I(h;zc ) = 1/2 E [ I(x+h);zc ) - I(x;zc ) ]2 Indicator variogram where cutoff corresponds

to median of data

m(h;zm ) = 1/2n [ I(xj+m+h);zm ) - I(xj;zm ) ]2

j=1,,n

Order Relations Advantages of MIK

It estimates the local recoverable reserves
within each panel or block.
It provides an unbiased estimate of the
recovered tonnage at any cutoff of interest.
It is non-parametric, i.e., no assumption is
required concerning distribution of grades.
It can handle highly variable data.
It takes into account influence of neighboring
data and continuity of mineralization.

Disadvantages of MIK Change of Support

It may be necessary to compute and fit a Function *(A;zc) and grade-tonnage
variogram for each cutoff.
relationship for each block is based on
Estimators for various cutoff values may not show
the expected order relations.
distribution point samples (composites).
Mine planning and pit design using MIK results
can be more complicated than conventional Selective mining unit (SMU) volume is much
methods. larger than sample volume, therefore, one
Correlation between indicator functions of various must perform a volume-variance correction to
cutoff values are not utilized. More information the initial grade-tonnage curve of each block.
becomes available through the indicator cross
variograms and subsequent cokriging. These form
the basis of the Probability Kriging technique.

47
Affine Correction
Equation for affine correction of any
panel or block is given by
*v (A;z) = * (A;zadj)
where
zadj=adjusted cutoff grade = K(z - ma)+ma
Use affine correction if:
(2p -2b) /2 p 30%
Grade Zoning (contd)
Determine how the grade populations are
separated spatially
Is there a reasonably sharp discontinuity
between the grades of the different
populations?
Or is there a larger transition zone between
the grades of the different populations?
Grade Zoning (contd)
Transition zone between grade
populations:
Grade Zoning
Grade zoning is usually applied to control
the extrapolation of grades into statistically
different populations
Often grade zones or mineralization
envelopes correspond to different geologic
units
Grade Zoning (contd)
Discontinuity between grade populations:
Grade Zoning (contd)
Discontinuity between the grade
populations is best modeled using a
deterministic model, i.e., digitized the
outlines
Transition zone between the grade
populations is best modeled using a
probabilistic model, i.e., indicator kriging
48
Grade Zoning (contd)
Characterizing the contact between
different spatial populations:
Calculate the difference between the
average grades within each population as a
function of distance from the contact:
Dzi = zi - z(-i)
Grade Zoning (contd)
If the average difference in grade Dzi vs
distance from the contact is small for small
distances but increases with increasing
distance, then there is likely a transition
zone between the different populations:
Grade Zoning (contd)
If the average difference in grade Dzi vs
distance from the contact is more or less
constant, then there is probably a
discontinuity between the different
populations :
Grade Zone Bias Check
Often mineralization envelopes lead to
biased ore reserve models. To check:
Interpolate using the nearest neighbor
(polygonal) method)
Use the search parameters corresponding to
the model of spatial continuity
Disregard all grade zoning
Compare at 0.0 cutoff grade, the tons and
grade of the polygonal model to those of the
mineralization envelope model.
49
Geostatistics Overheads Proprietary Information of Mintec, inc.

Notes:

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Proprietary Information of Mintec, inc. Classical Statistics

Classical Statistics Notes:

Prior to this section you loaded the drillhole data to MineSight. If you are calculating
statistics on the composites, you calculated the composites. In this section you can
compute classical statistics on the assays and composites. This is not required for later
work.

Learning Outcome
In this section you will learn:

How to calculate general statistics

How to produce a histogram

How to produce probability plots

How to produce scatter plots

How to calculate insitu statistics

How to calculate proportional effect

Classical Statistics
The most commom statistical operations available within MineSight are:

Mean and standard deviation

Histograms

Cumulative frequency plots

Correlations

Cumulative probability plots

Use classical statistics to:

Analyze data to determine descriptive parameters

Make inferences about an entire population based on samples

Some difficulties involved with the application of classical statistics to mineral

projects are:

Mineral deposit data is generally not independent. It is for this reason that
geostatistics was developed.

Different geologic zones may have different statistical populations. Mixing zones
may produce incorrect statistics.

Different types of samples have different volumes and should be kept separate
for analysis, e.g., drillhole assays and bulk samples.

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Although samples may be equal in size, they may not have an equal volume of
Notes: influence. Drilling tends to be closer spaced in higher grade areas so the statistics
may be indicating a higher proportion of ore than actually exists.

General Statistics
On the MineSight Compass Menu tab, <select the Group Statistics, and the
Operation Calculation; from the procedure list, select procedure p40101.dat - Statistics
(assays)>. Fill out the panels as described.

Panel 1 - Assay Data Statistical Analysis

This panel provides input for the items to be analyzed, an optional weighting item and
associated multiplier, and an optional selection item for limiting the data to be analyzed.
<Enter Cu as the base assay for cutoffs and also report the MO values. Weight the
statistics by -AI- (the assay length)>.

Panel 2 - Assay Data Statistical Analysis

This panel provides input for the basic statistical analysis parameters. A frequency
interval of .1 will be used and all values below 0 will be ignored. Well report 40
frequency intervals in this example, and use cu as the run and report file extensions.

Panel 3 - Optional Data Selection for Assay Statistics

This panel allows you to define portions of the data to include or exclude from the
analysis based on item values. There are also titling options for the resulting histogram
plot; enter a title such as Assay statistics weighted by length.

Panel 4 - 3D Coordinate Limits for Data Selection

This panel provides the option of limiting the area of data selection, either through
project coordinates or through the use of a boundary file.

Panel 5 - Histogram Plot Attributes

This panel provides options for setting up your histogram display and plot.

Results and Histogram Plot

The results of the statistical analysis are presented in the report file (rpt401.cu) in
tabular form and as a symbolic histogram.

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Notes:

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Classical Statistics Proprietary Information of Mintec, inc.

There is also information provided regarding the number of intervals excluded based
Notes: on the selection criteria input through the procedure panels:

Finally, a plottable histogram is also generated; this can be plotted using the M122MF
program, which is controlled with the MPLOT panel. The MPLOT panel can also be
used to create deferred plot files from the histogram.

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Proprietary Information of Mintec, inc. Classical Statistics

Exercise 1
Use procedure p40201.dat to generate composite statistics. Use the same parameters Notes:
as in the assays. Use item length as the weighting item. Compare histograms and
statistics.

Exercise 2
Generate composite statistics for those composites that have ALTR = 1 and 2 only.
Hint: this can be done with a change to Panel 3.

Exercise 3
Repeat the exercise for those composites that have ROCK = 1 and 2 only.

Exercise 4
Generate lognormal composite data statistics for those composites that have ROCK =
1.

Statistics within Geology Types

From the MineSight Compass Menu tab, <select the Group Statistics, and the
Operation Calculation; from the procedure list, select procedure p40201.dat - Statistics
(comps)>. Fill out the panels as described.

Panel 1 - 3-D Composite Data Statistical Analysis

This panel provides input for the file type, items for analysis, and optional weighting
and selection items. Using File 9, enter ROCK as the first item. This item will be used to
determine the cutoffs. Enter CU as the second item, which will be used for statistical
analysis. Keep item length as a weighting item.

Panel 2 - 3-D Composite Data Statistical Analysis

This panel provides input for the basic statistical analysis parameters. A frequency
interval of 1 will be used because the CU statistics will be reported at cutoffs of ROCK
item. Also <check the box Dont report the first items?. Use rck as the filename
extension for both the run and report files>.

Panel 3 - Optional Data Selection for Assay Statistics

This panel allows you to define portions of the data to include or exclude from the
analysis based on item values. There are also titling options for the resulting histogram
plot; enter a title such as 15-m bench composites by rock type.

Panel 4 - 3D Coordinate Limits for Data Selection

This panel provides the option of limiting the area of data selection, either through
project coordinates or through the use of a boundary file.

Panel 5 - Histogram Plot Attributes

This panel provides options for setting up your histogram display and plot.

Results and Histogram Plot

The results of the statistical analysis are presented in the report file (rpt402.rck) in
tabular form and as a symbolic histogram. Since the first item for analysis was ROCK,
the histogram is by rock type; thus, there are only two frequency intervals in the
histogram.

The report file tabulates the bench by bench mean and standard deviation for CU.

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Notes:

There is also information provided regarding the number of intervals excluded based
on the selection criteria input through the procedure panels:

The MPLOT panel will come up, allowing you the option of plotting the resulting
histogram. <Click the Exit button to exit without displaying the plot preview>.

Exercise
Generate composite Cu statistics within ALTR codes.

Probability Plots
On the MineSight Compass Menu tab, <select the Group Statistics, and the

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Proprietary Information of Mintec, inc. Classical Statistics

Operation Plot; from the procedure list, select procedure p41201.dat - Probability Plot
(Assays or Composites)>. Fill out the panels as described. Notes:
Panel 1 Select File or Drillholes to Use
<Select File 11 Assays to do the cumulative probability plot, and leave the First and
last survey ref# windows blank to use all assays>.

Panel 2 Parameters for Probability Plot

<Enter Cu for the item to be plotted, with a minimum value of 0.01 and a maximum
value of 10. Generate the first plot with lognormal transformation. Specify cu as the
filename extension for both the run and report files>. There are also titling options for
the resulting probability plot; enter a title such as CU probability plot - rock types 1
and 2.

Panel 3 Optional Data Selection

This panel allows you to define portions of the data to include or exclude from the
analysis based on item values. There are also options for a selection item and/or
boundary file for further data limiting. <Select ROCK item values 1 and 2 for plotting
by using the RANGE command>.

Panel 4 Optional Plot Files

This panel provides inputs for the overlay of existing plot files. Leave this panel
blank.

Panel 5 Optional Plot Parameters

This panel provides options for setting up your probability plot features. You can try
out different parameters until you get a display you like.

Results and Probability Plot

The MPLOT panel will appear, giving you the option to preview, plot directly to the
plotter, or generate a deferred plot file for later use. <Preview the plot, then close the
preview with the X and Exit the MPLOT panel>.

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Notes:

Exercise 1
Generate probability plots for those assays that have ALTR = 1 and 2 only. Hint: this
can be done with a change to Panel 3.

Exercise 2
Repeat the exercises using the composites.

Exercise 3
Overlay the composite probability plot on the assay probability plot and compare.
Hint: Output only the cumulative probability curve for composites and overlay it on the
full assay probability plot.

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Proprietary Information of Mintec, inc. Classical Statistics

Notes:

Exercise 4
Generate probability plots without using log transformation.

In situ Data Statistics

On the MineSight Compass Menu tab, <select the Group Statistics, and the
Operation Calculation; from the procedure list, select procedure p40301.dat - In-situ
Statistics (Composites)>. Fill out the panels as described.

Panel 1 - In-Situ Data Statistical Analysis

<Enter 9 for the file selection, and leave the First and last survey ref# windows blank
to use all assays>.

Panel 2 - In-Situ Data Statistical Analysis

This panel provides input for the basic statistical analysis parameters. <Enter Cu for
the composite grade to analyze. Accept the defaults for the other parameters, but specify
cu as the filename extensions for both the run and report files>.

Panel 3 - Optional Data Selection for Statistical Analysis

This panel allows you to define portions of the data to include or exclude from the

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Classical Statistics Proprietary Information of Mintec, inc.

analysis based on item values. You can also specify an optional boundary file in this
Notes: panel. <Use the RANGE command to specify ROCK Types 1 and 2 only>.

Panel 4 - Parameters for in-Situ Statistical Analysis

<Specify the parameters of the 3-D grid for the statistical analysis of Cu. Also specify
plot parameters for the selected slice to be plotted>.

Results and Contour Data Plot

The results of the in-situ statistical analysis are presented in the report file (rpt403.cu)
in tabular form.

When you close the report file, the MPLOT panel will come up, giving you the
opportunity to preview the contour data plot, send it to the plotter, or generate a deferred
plot file for later use.

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Notes:

Exercise
Generate In-situ statistics for assays in elevation range 2500 to 3000.

Correlation and Scatter Plots

<On the MineSight Compass Menu tab, select the Group Statistics, and the Operation
Calculation; from the procedure list, select procedure p41101.dat - Correlations
(Assays or Composites)>. Fill out the panels as described.

Panel 1 - Bivariate Analysis - Scatter Graph and Q-Q Plot

This panel provides inputs for the file type, interval selection and other options. We
will use File 11 assays and all the drillhole assay intervals; specify cu as the filename

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extension for both the run and report files. Leave the titling options blank for this
Notes: exercise.

Panel 2 - Bivariate Analysis - Scatter Graph and Q-Q Plot

This panel provides input for the items to be analyzed; <enter CU for the y-axis, and
MO for the x-axis of the plot. Specify zero as the minimum for both items, five as the
maximum for CU, and 0.5 as the maximum for MO>.

Panel 3 - Bivariate Analysis - Optional Plot Parameters

This panel provides input for the basic plot parameters; <enter a title such as copper
vs moly values, and specify a symbol type of 3 and pen number of 4. Specify a dashed
linetype for both the best fit and 45 degree reference lines>.

Panel 4 - Q-Q (Quantile-Quantile) Plot Options

This scatter plot exercise does not use the Q-Q options; leave this panel blank.

Panel 5 - Optional Data Selection

This panel allows you to define portions of the data to include or exclude from the
analysis based on item values. You can also specify an optional boundary file and/or
selection item in this panel. Use the RANGE command to specify ROCK Types 1 and 2
only.

Results and Scatter Plot

The report file shows a summary of correlation statistics for CU and MO grades.

There are also symbol plots for the scatter plot and histograms for each of the
specified analysis items.

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Notes:

When
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#: E005 Rev.the
B report file, the MPLOT panel will come up, giving you the Page 1-13
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Notes: opportunity to preview the scatter plot, send it to the plotter, or generate a deferred plot
file for later use.

Plot Proportional Effect

On the MineSight Compass Menu tab, <select the Group Statistics, and the
Operation Calculation; from the procedure list, select procedure p40301.dat - In-Situ
Statistics (Composites)>. Fill out the panels as described.

Panel 1 - In-Situ Data Statistical Analysis

<Enter 9 for the file selection, and leave the First and last survey ref# windows blank
to use all assays>.

Panel 2 - In-Situ Data Statistical Analysis

This panel provides input for the basic statistical analysis parameters. <Enter Cu for
the composite grade to analyze. Accept the defaults for the other parameters, but specify
cu as the filename extensions for both the run and report files>.

Panel 3 - Optional Data Selection for Statistical Analysis

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Proprietary Information of Mintec, inc. Classical Statistics

This panel allows you to define portions of the data to include or exclude from the
analysis based on item values. You can also specify an optional boundary file in this Notes:
panel. Use the RANGE command to specify ROCK Types 1 and 2 only.

Panel 4 - Parameters for in-Situ Statistical Analysis

Specify the parameters of the 3-D grid for the statistical analysis of Cu. Also specify
plot parameters for the selected slice to be plotted.

Panel 5 - Generate Contours for Selected Level

In this panel, <check the Contour Std Dev? box, use 0.1 as the minimum and 1.0 as
the maximum, with a 0.1 contour increment. Specify three digits to the right of the
decimal, pen number one, and a smoothing factor of zero. Accept the defaults for the
rest of the panel>.

Exit MPLOT Panel

Plot the correlation between the std and mean. On the MineSight Compass Menu tab,
<select Group Statistics, Operation Calculation; from the procedure list, select
procedure p41102.dat.>

Panel 1
<Enter dat403.cu as the ASCII input file. Use std (min 0, max 1) for the y axis and the
mean (min 0, max 0.8) for the x axis. Check the apply limits to input data and free
format switches. Use cu as the file extensions for the run and report file 7.>

Panel 2
<Std (y-axis) is the 4th column and mean (x-axis) is the 5th column in input ASCII
DATA, therefore, enter 4 and 5 respectively.>

Panel 3
<Enter a title (Mean vs. Std). Use a dash line for both best-fit and 45 degree line.>

Panel 4
Leave this panel blank.

Results and Scatter Plot

Preview plot:

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Notes:

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Proprietary Information of Mintec, inc. Variograms

Variograms Notes:
Prior to this section you calculated the composites. In this section you can develop
variograms of the composites. Following this, you can initialize the mine model and do
Kriging.

Learning Outcome
In this section you will learn:

How to make an h-scatterplot

Types of variograms within MineSight

Procedure for creating variograms

The Variogram
In geostatistics, geologic samples such as assays or thickness values are not
independent samples.

Samples in proximity to one another are usually correlated to some degree. As the
distance between samples increases this degree of correlation declines until the samples
are far enough apart where they can be considered to be independent of one another.

The variogram is a graph that quantifies the spatial correlation between geologic
samples. It is a plot with the average squared assay difference between all pairs of
samples h distance apart plotted along the y-axis (h), and the distance h plotted
along the x-axis.

Logically you would expect this squared difference (h) to increase as the distance h
between the sample pairs increases. Once you reach a distance where the sample pairs
are independent, the average squared difference is not related to the distance h
anymore and the curve levels off.

This distance where the samples are no longer correlated is called the range of the
variogram and the value of (h) where it levels off is called the sill. Theoretically the sill
is equal to the variance of samples.

The distance over which the samples are correlated can be and usually is different in
different directions. This is called Anisotropy and simply states that mineralization may
be more continuous in one direction than another. Therefore, variograms are computed
in different directions.

At DISTANCE h=0 (i.e., 2 samples at the same location) the sample values should be
identical. In reality they usually are not. This is described in geostatistics as the Nugget
effect. Its value should be small if correct sampling and assaying procedures are used.

Variogram Models
The variogram model is the equation of a curve that best fits the variogram generated
with your data. Variogram models (singel or nested) available in MineSight are:

Spherical

Exponential

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Linear
Notes:
H - Scatter Plots
On the MineSight Compass Menu tab, <select the Group Statistics, and the
Operation Plot; from the procedure list, select procedure p31101.dat - H-Scatter Plot>.
Fill out the panels as described.

Panel 1 - H-Scatter Plot

This panel provides input for the file type and item to be analyzed, as well as some
data selection parameters. <Select Cu as the item, using zero as the minimum grade and
three as the maximum grade to be plotted. Specify cu as the filename extension for
both the run and report files>.

Panel 2 - H-Scatter Plot Parameters

This panel provides the input for a number of plot parameters such as the plot title,
symbol type and size. <Enter a title such as Rock type 1 and specify 3 as the symbol
type, 0.05 as the symbol size, and 3 as the pen type>. Leave the rest of this panel blank.

Panel 3 - Optional Data Selection

This panel allows you to define portions of the data to include or exclude from the
analysis based on item values. There is also an optional selection item available for
further data limiting. Select only ROCK item value 1 for plotting by using the RANGE
command.

Panel 4 - Coordinate Limits

This panel allows you to limit the data further, either by specifying coordinates or a
boundary file. Leave this panel blank.

Panel 5 - Parameters to Determine Data Pairs

This panel provides input for the data pair selection parameters. <Specify a
Horizontal direction of 0 and a windowing angle of 90 degrees. Specify a vertical
direction of -90 and a windowing angle of 15 degrees. Select 0 and 15 as the minimum
and maximum pair distances, respectively>.

Results and H-Scatter Plot

The results of the data pair statistical analysis are presented in the report file
(rpt311.cu) in tabular form. There are also symbolic plots for H-Scatter and frequency
distribution histograms.

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Notes:

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Notes:

When you close the report file, the MPLOT panel will come up, giving you the
opportunity to preview the H-Scatter data plot, send it to the plotter, or generate a
deferred plot file for later use.

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Proprietary Information of Mintec, inc. Variograms

Notes:

Exercise
Generate h-scatter plots for pairs 0-50m apart in different horizontal directions.

Calculating Variograms and Modeling

On the MineSight Compass Menu tab, <select the Group Statistics, and the
Operation Calculation; from the procedure list, select procedure p30302.dat -
Variograms of composite data>. Fill out the panels as described.

Panel 1 - Experimental Variograms for 3-D Composites

This panel provides input for file type selection, analysis item and variogram type.
Use File 9 and normal variogram type to compute the initial variograms for the item
CU. Appropriate values for the minimum and maximum are zero and five, respectively.
Specify a filename extension of 001 for the report and output files

Panel 2 - Optional Variogram Parameters

This panel provides input for optional parameters such as title and selection item.
Specify a title such as Horizontal Variograms Rock type 1. Leave the rest of the panel
blank.

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Panel 3 - Optional Data Selection

Notes: This panel allows you to define portions of the data to include or exclude from the
analysis based on item values. Select only ROCK item value 1 by using the RANGE
command.

Panel 4 - 3D Coordinate Limits for Data Selection

This panel allows you to limit the data further, either by specifying coordinates or a
boundary file. Leave this panel blank.

Panel 5 - Parameters for Multi-Directional Variograms

This panel is used to enter the specific variogram parameters. Compute 4 normal
variograms (4x1), starting at horizontal angle 0.0 with 45 degree increments and at a
vertical angle 0.0. Use 10 intervals with 50m lag distance. Use 22.5 degree horizontal
windowing angle and 10 degree vertical angle.

Results and Variogram Plot

In the report file (rpt303.001), a summary appears for each variogram calculated.

The variogram value is under the column V(H). It is plotted along the y-axis on the
graph. The distance h is under the column DISTANCE. It is plotted along the x-axis
on the graph.

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Proprietary Information of Mintec, inc. Variograms

Modeling Variograms
Notes:
On the MineSight Compass Menu tab, <select the Group Statistics, and the
Operation Calculation; from the procedure list, select procedure p30002.dat -
Variogram Modeling>. Fill out the panels as described.

Panel 1 - Variogram File Input

This panel provides input for the MineSight variogram data file for modeling. Specify
the file we just created, dat303.001.

Results and Variogram Plot

Program M300V1 will display on the screen a list of the 4 directional variograms plus
the 2-D Global variogram and the 3-D Global variogram. <Click on 3-D Global and
then on Exit Panel>.

Exercise 1
Interactively fit a spherical variogram model to the experimental variogram by
following these steps:

1. <Select New Model from menu.

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2. Using the mouse, select Nugget location on y axis (Point 1).

Notes:
3. Using the mouse, select Sill & Range Values which are defined by the second point
that you specify.

4. Click right to display Model Parameter Values based on your selection>.

Exercise 2
Interactively modify the spherical variogram model you just created by following
these steps:

1. <Select Edit Model from the menu

2. Click on your Nugget Value (Point 1) and move it around with the mouse to a new
location. Click right to store the new location.

3. Select Edit Model again. Click on your Sill/Range Value (Point 2) and move it
around with the mouse to a new location. Click right to store the new location.

4. Select Edit Model and Fix Range

5. Point to the desired value for range on the X-axis (e.g., 500) and click.

6. Click on Point 2 and move it around. (Note that only the Sill Value is changing.)
Click right to store the new Sill.

7. Select Edit Model and Fix Sill (Make sure Fix Range is off)

8. Point to the desired value for Sill on the y-axis (e.g., .1) and click.

9. Click on Point 2 and move it around. (Note that only the Range is changing.) Click
right to store the new Range

10. Click on X to exit Variogram Modeling Program>.

Exercise 3
Try an exponential model and compare the fit (visually) with the spherical.

Exercise 4
Try to model the directional variogram at 0, 45, 90, and 135 degrees.

Exercise 5
If the directional variograms are difficult to model, add an absolute lag tolerance of
25. Dont use composite values above 3. Use extension 002.

Exercise 6
Try a different horizontal angle increment (30). Use extension 003.

Exercise 7
Try to compute variograms using different vertical angle orientations. Compare
horizontal variograms to the vertical ones. Use extension 004.

Exercise 8
Compute variograms using different variogram type options, such as correlogram.
Use extension 005.

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Proprietary Information of Mintec, inc. Variograms

Exercise 9
Run variograms (as in Exercise 5) for rock type 2. Use extension 006. Notes:
Exercise 10
Run variograms for different windowing angles and/or band widths. Check reports
and see how the number of pairs used changes.

Calculating Down-hole Variograms

On the MS Compass Menu tab, select the Group Statistics, and the Operation
Calculation; from the procedure list, select procedure p30101.dat - Down-hole
Variograms. Fill out the panels as described.

Panel 1 - File and Variogram Type Selection

This panel provides input for the source file; you have the option to use the assay or
composite files. You can also specify the variogram type in this panel. Use the assay file
11 for analysis with variogram type 1 for a normal variogram.

Panel 2 - Input Parameters

In this panel you can specify the item for analysis and optional minimum and
maximum values. Use Cu for variogram analysis, with the default values for min and
max. Specify the filename extension cu for the report and output files.

Panel 3 - Optional Variogram Parameters

This panel provides titling and selection item options. Specify a title such as
Downhole variogram - Rock type 1

Panel 4 - Optional Data Selection for Down-hole Variograms

This panel allows you to define portions of the data to include or exclude from the
analysis based on item values. Select only ROCK item value 1 by using the RANGE
command.

Panel 5 - 3D Coordinate Limits for Data Selection

This panel allows you to limit the data further, either by specifying coordinates or a
boundary file. Leave this panel blank.

Panel 6 - Parameters for Down-hole Assay Variograms

This panel provides input for the variogram parameters. Compute variograms for
each hole with horizontal direction 0, windowing angle 90, and vertical direction -90,
windowing angle 15. Use 20 intervals with 5m lag distance.

In the report file, a summary appears for each variogram calculated, as well as a
summary for a combined variogram.

The variogram value is under the column V(H). It is plotted along the y-axis on the
graph. The distance h is under the column DISTANCE. It is plotted along the x-axis
on the graph.

On the following page is the plot of the variogram points of the combined
variograms.

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Notes:

Exercise 1
Model the combined down-hole variogram. Pick up a nugget value.

Exercise 2
Calculate and model a down-hole variogram for rock type 2. Pick up a nugget value.

Exercise 3
Generate down-hole variograms using composite data.

Variogram Data Contouring

On the MineSight Compass Menu tab, <select the Group Statistics, and the
Operation Plot; from the procedure list, select procedure pvgctr.dat - Contour
Variogram Data>. Fill out the panels as described.

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Proprietary Information of Mintec, inc. Variograms

Panel 1 - GNV2CN Parameters for Variogram Data Contouring

This panel provides inputs for the source and destination files. Use the variogram data Notes:
file generated for ROCK1 (dat303.002), and specify the output file pts303.002. <Check
the box to Transform variogram values to percent of variance? and leave the rest of the
panel blank>.

Panel 2 - Setup Plot Parameters

This panel provides input for the plot parameters; <enter the values shown in the
following table>. Leave the remainder of the panel blank.

Minimum Maximum
2250 2750
Easting Easting
Minimum Maximum
5250 5750
Northing Northing

1000 Pl ot Scal e (RF Scal e, eg, 1000=1:1000)

0.7 Label Height for Grid Coordinates (CMs)

250 Grid Spacing (Metres)

Panel 3 - Generate Contours from Variogram Data

This panel provides input for the contouring parameters. <Use a minimum contour
value of 10, maximum 100, with a contour increment of 10. Display no digits to the
right of the decimal, using a pen number of four and smoothing factor of five. An
annotation size of 0.5, frequency of 20 and a Max triangle size of 200 are appropriate,
and dont check the box to overlay an ellipse>.

Panel 4 - Pen Specification and Optional User Plot Files

This panel provides inputs for the overlay of existing plot files. Leave this panel
blank.

Panel 5 Standard Title Box Set up

This panel provides inputs for titling your plot. Fill in appropriate title block
information.

Results and Contour Plot

The MPLOT panel will appear, giving you the option to preview, plot directly to the
plotter, or generate a deferred plot file for later use. <Preview the plot, then close the
preview with the X and Exit the MPLOT panel>.

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Notes:

Exercise 1
Overlay an ellipse to the variogram contours using a 200m major axis and a 125m
minor axis. What is the major axis orientation? Adjust lengths until the ellipse fits the
contours. If you find an orientation for which you dont have variograms, rerun the
variograms programs for the new orientation.

Exercise 2
Repeat for rock type 2.

Variogram Parameter File

On the MineSight Compass Menu tab, <select the Group Statistics, and the
Operation Edit; from the procedure list, select procedure pvgpar.dat - Variogram
Parameter File>. Fill out the panels as described.

Having studied the individual variograms, down-the-hole variograms, and the contour
maps for each rock type, decide on one set of variograms.

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Proprietary Information of Mintec, inc. Variograms

For example:
Notes:
Rock Range Range
Nugget Sil l Model type
typ e (major) (minor)

1 0.014 0.240 70 (10 ) o

40 (100 ) Exponential
o

2 0.007 0.085 80 (45 )o

60 (135 ) Exponential
o

Assume for the vertical axis the same ranges as the minor axis. If you use an
exponential model, use three times the range as search distances in the interpolation
programs.

Panel 1 - Variogram Parameter File

This panel provides input for the name of the variogram parameter file to set up and
an optional description line. <Write the variogram parameters to the output file
vario.rk1 and enter the description Variogram for rock type 1>.

Panel 2 Variogram Parameters

This panel provides entry for the variogram parameters: model type, nugget, sill,
range, and direction of major axis. <Enter the values for Rock type 1 from the table
above>, recalling that the sill in the table includes the nugget effect.

Results
The resulting variogram file will be brought up in the screen.

Exercise 1
Set up variogram parameter file for Rock Type 2.

Exercise 2
Set up variogram parameters for both Rock Types 1 and 2 in the same file. Hint:
specify the geology label as ROCK in the first panel.

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Notes:

Page 2-14 Part #: E005 Rev. B

Proprietary Information of Mintec, inc. Point Validation/Cross Validation for Variogram Evaluation

Point Validation/Cross Validation for Notes:

Variogram Evaluation
Prior to this section, you calculated the variograms and modeled them. In this section
you can use the Kriging method to determine the error between the estimated and the
actual known value of composite data at selected locations, using different variograms.
The theoretical variogram that produces the smallest error can be assumed as the better
fit.

Learning Outcome
In this section you will learn how to use point validation for variogram evaluation

Interpolation Controls
There is a large range of parameters for controlling the point interpolation.

Search distance N-S, E-W, and by elevation

3-D ellipsoidal search

Minimum and maximum number of composites to use

Maximum distance to the nearest composite

Use or omit geologic control

Inverse distance powers and variogram parameters

Point interpolation program M524V1 outputs the results for each composite used to
an ASCII file. These results are evaluated using program M525TS and the statistical
summaries are output to the report file.

In this case we will assume search parameters as indicated by the variograms. If a

specific search scenario has been determined for the model interpolation, it should be
used instead.

Point Validation
From the MineSight Compass Menu tab, <select the Group Statistics, and the
Operation Calculation; from the procedure list, select procedure p52401.dat - Point
Validation>. Fill out the panels as described.

Panel 1 - File and Area Selection

This panel provides input for the composite file type, area specifications, and optional
filename extensions. <Specify file 9, and accept the defaults for the rest of the panel>.

Panel 2 - Point Interpolation

This panel provides input for the item and search parameters to be used in
interpolation. <Interpolate the CU item using a search distance of 210 meters in all
directions and a minimum and maximum number composites of 3 and 15, respectively>.

Panel 3 - Optional Ellipsoidal Search Parameters

Ellipsoidal Search and use of anisotropic distances are optional. For this run, <enter

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major, minor, and vertical search distances of 210, 120, and 120, respectively. Enter
Notes: MEDS for the rotation angle specification and check the box to Use anisotropic
distances?>

Panel 4 - Optional Data Selection

This panel will only come up if you choose the anisotropic distances option on the
previous panel. The angles for this example are ROT = 10, DIPN = 0 and DIPE = 0.

Panel 5 - Optional Parameters

<Enter the name of the previously prepared variogram parameter file (vario.rk1)>.
If the variogram parameter file is not entered in this panel, you will be prompted to enter
the variogram parameters on subsequent panels.

Panel 6 - Optional Data Selection for Point Interpolation

This panel allows you to define portions of the data to include or exclude from the
analysis based on item values. There is also an optional selection item and geologic
matching item available for further data limiting. <Select only ROCK item value 1 for
plotting by using the RANGE command, and specify ROCK as the geologic matching
item>.

Panel 7 - Optional IDW powers and Other Parameters

<Use the default IDW powers for each case; generate a detailed report for case 3,
using a 0.1 frequency interval and 40 intervals>.

Results
This section of the report shows summary statistics for actual composite grades versus
the results from different interpolations.

This section of the report (on the next page) shows the statistics of the differences
between actual and kriging values The histogram is the histogram of the errors.

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Notes:

This section of the report file (on the next page) shows correlation statistics between
the actual and kriging values.

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Notes:

Exercise
Modify the variogram parameter file. Use nugget of 0.02. Rerun the point validation
procedure. Compare results (you should get a lower correlation and a higher standard
error).

Page 3-4 Part #: E005 Rev. B

Proprietary Information of Mintec, inc. Declustering

Declustering Notes:
Prior to this section you calculated the composites and sorted statistics. In this section
you will use cell declustering technique to decluster the composite data. This is not
required for later work.

Learning Outcome
In this section you will learn:

How to decluster composite values

How to produce a histogram of declustered composite values

Declustering
There are two declustering methods that are generally applicable to any sample data
set. These methods are the polygonal method and the cell declustering method. In both
methods, a weighted linear combination of all available sample values is used to
estimate the global mean. By assigning different weights to the available samples, one
can effectively decluster the data set.

In this section you will be using the cell declustering method which divides the entire
area into rectangular regions called cells. Each sample received a weight inversely
proportional to the number of samples that fall within the same cell. Clustered samples
will tend to receive lower weights with this method because the cells in which they are
located will also contain several other samples.

The estimate one gets from the cell declustering method will depend on the size of the
cells specified, If the cells are very small, then most samples will fall into a cell of its
own and will therefore receive equal weights of 1. If the cells are too large, many
samples will fall into the same cell, thereby causing artificial declustering of samples.

Declustering Composite Data

On the MineSight Compass Menu tab, <select the Group Statistics, and the
Operation Calculation; from the procedure list, select procedure p52301.dat -
Decluster Data>. Fill out the panels as described.

Panel 1 - Declustering Composite Data

This panel provides input for the item to decluster and an optional selection item.
<Enter Cu as the composite data item to be used with zero as the minimum value; use
40 intervals with a 0.1 frequency interval. Enter 50 as the filename extension for both
the run and report files>.

Panel 2 - Optional Data Selection for Composite Declustering

This panel allows you to define portions of the data to include or exclude from the
analysis based on item values. Leave this panel blank to use all the values of Cu.

Panel 3 - Declustering Composite Data

This panel allows you to adjust the grid size for declustering. <Specify x, y, and z cell
sizes as 50, 50, and 15, respectively>.

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Results
Notes: The report file shows summary statistics for the original and the declustered samples.

Exercise 1
Obtain declustered data using cell sizes 45 x 45 and 40 x 40.

Exercise 2
Create a graph of the cell sizes vs mean values. The cell size that gives the lowest
value should be the best choice.

Exercise 3
Try declustering using Rock Type 1 only.

Histogram of Declustered Data

On the MineSight Compass Menu tab, <select the Group Statistics, and the
Operation Calculation; from the procedure list, select procedure p40204.dat - ASCII
Data Stats>. Fill out the panels as described.

Panel 1 - ASCII Data Statistical Analysis

<Enter ASCII output (for cell size equal to 45 - file dat523.45) from the previous
procedure. Use CU as Grade item label, and check the box for Free format read>.

Panel 2 - ASCII Data Statistical Analysis

<Enter column number for item to analyze from the ASCII file - in this example, it is
column 6>.

Panel 3 - ASCII Data Statistical Analysis

This panel provides input for the analysis parameters. <Use a minimum value of zero,
frequency interval of .1 with 40 intervals. Enter 45 as the filename extension for both
the run and report files, and enter a title such as Declustered data (cell size 45)>.

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Panel 4 - Histogram Plot Attributes

Set up the Histogram Plot Attributes as desired. Notes:
Results and Histogram Plot
The report file presents the declustered data analysis in tabular and symbolic
histogram form.

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Notes:

When you exit the report file, the MPLOT panel will appear, giving you the option to
preview, plot directly to the plotter, or generate a deferred plot file for later use.
<Preview the plot, then close the preview with the X and Exit the MPLOT panel>.

Page 4-4 Part #:E005 Rev. B

Proprietary Information of Mintec, inc. Model Interpolation

Model Interpolation Notes:

Prior to this section you calculated and sorted the composites. You initialized the
mine model and added any necessary geology. In this section you can use inverse
distance weighting to add grades to the mine model. This is required before displaying
the model, calculating reserves or creating pit designs.

Learning Objective
In this section you will learn:

The types of interpolations available

The use of controls on the interpolation

How to interpolate grades with MineSight

Types of Interpolations
There are several methods of interpolation provided to you.

Polygonal assignment

Inverse distance weighting

Relative elevations

Trend plane

Gradients

Kriging

Interpolation Controls
There is a large range of methods for controlling the interpolation available.

Search distance N-S, E-W, and by elevation

Minimum and maximum number of composites to use for a block

Maximum distance to the nearest composite

Use or omit geologic control

IDW Interpolation
On the MineSight CompassMenu tab and <select the Group 3D Deposit Modeling,
and the Operation Calculation; from the procedure list, select the procedure p62001 -
IDW Interpolation.> Fill out the panels as described.

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Panel 1 - M620V1/V2 IDW Search Parameters

Notes: This panel provides input for the composite files to use, the area to interpolate, and
optional filename extensions. For this example, use model 15, composite file 9, and
specify idl as the filename extension for both the run and report files.

Panel 2 - M620V1/V2 IDW Search Parameters

<Specify a 3-D search to use all composites within 210m horizontally (based on
variograms) horizontally and 50m vertically of a block. Use an inverse distance power
of 2, specify the closest composite is within 100 meters, and allow a minimum of 3
composites and a maximum of 16>.

Panel 3 - Interpolation Control Items

This panel lets you to specify the items and methods for interpolation. <Interpolate
the CU and MO composites using inverse distance weighting to the model items CUID
and MOID respectively. Also, interpolate the CU composites to the model item CUPLY
using polygonal assignment. Store the distance to the nearest composite in item DISTP,
and the maximum number of data in item NCMPI. Use the RESET option for this first
interpolation pass; for multiple passes, use the OMIT option>.

Panel 4 - Store Local Error

This panel provides options for the stroage of local interpolation error values. Leave
this panel blank for this example.

Panel 5 - Optional Search Parameters

Ellipsoidal Search and use of anistropic distances are optional. <Use an ellipsoidal
search of 210 by 120 by 120. Enter MEDS for the rotation angle specification and check
the box to Use anistropic distances?>.

Panel 6 - Optional Data Selection

This panel will only come up if you choose the anistropic distatncces option on the
previous panel. The angles for this example are ROT = 10, DIPN = 0 and DIPE = 0.

Panel 7 - Optional Geologic Codes

This panel provides options for up to three block limiting items and two code
matching items. Use only Rock Type 1 by specifying Rock as a block limiting item and
entering the value 1 as the corresponding integer code. Also use ROCK as a code
matching item.

Panel 8 - Optional Data Selection

Since we have already limited the interpolation through block and code matching, we
can leave this panel blank.

Results
The results of the interpolation are saved to the model file 15; to view the results,
create a model view in MineSight 3-D.

Exercise
Rerun for Rock Type 2. Change search distances and use option omit. Change the
following panels:

Panel 1 - M620V1/V2 IDW Search Parameters

<Change the filename extensions for both the run and report files to id2>.

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Panel 2 - M620V1/V2 IDW Search Parameters

<Specify a 3-D search to use all composites within 240m (based on variograms) Notes:
horizontally and 50m vertically of a block>.

Panel 3 - Interpolation Control Items

Use the OMIT option for this second interpolation pass.

Panel 5 - Optional Search Parameters

<For this run, change the major, minor, and vertical search distances of 240, 180,
and 180 respectively>s.

Panel 6 - Optional Data Selection

The angles for this example are ROT = 45, DIPN = 0 and DIPE = 0.

Panel 7 - Optional Geologic Codes

Use only Rock Type 2 by specifying ROCK as a block limiting item and entering the
value 2 as the corresponding integer code.

Again, the results for the interpolation of Rock type 2 can be checked by creating a
Model View in MineSight 3-D.

Ordinary Kriging
Ordinary kriging is an estimator designed primarily for the local estimation of block
grades as a linear combination of the available data in or near the block, such that the
estimate is unbiased and has minimum variance. It is a method that is often associated
with the acronym B.L.U.E. for best linear unbiased estimator. Ordinary kriging is
linear because its estimates are weighted linear combinations of the available data,
unbiased since the sum of the weights is 1, and best because it aims at minimizing the
variance of errors.

The conventional estimation methods, such as inverse distance weighting method, are
also linear and theoretically unbiased. Therefore, the distinguishing feature of ordinary
kriging from the conventional linear estimation methods is its aim of minimizing the
error variance.

Kriging with MineSight

Before producing an interpolation using kriging, you developed a variogram. Three
types of variograms are allowed:

Spherical

Linear

Exponential

On the MineSight CompassMenu tab, <select the Group 3D Deposit Modeling, and
the Operation Calculation; from the procedure list, select procedure p62401.dat -
Ordinary Kriging>. Fill out the panels as described.

Panel 1 - M624V1: Kriging Search Parameters

This panel provides input for the model and composite files to use, the area to
interpolate, and optional filename extensions. For this example, use model file 15,
composite file 9, and specify kr1 as the filename extension for both the run and report

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files.
Notes:
Panel 2 - M624V1: Kriging Search Parameters
<Specify a 3-D search to use all composites within 210m (based on variograms)
horizontally and 50m vertically of a block. Specify that the closest composite must be
within 100 meters, and allow a minimum of 3 composites and a maximum of 16>.

Panel 3 - Interpolation Control Items

This panel allows you to specify the items and method for interpolation. Interpolate
the CU composites using kriging to the model item CUKRG. Use the RESET option for
this first interpolation pass; for multiple passes, use the OMIT option.

Panel 4 - Optional Input Parameters/Composite Type

Use this panel to specify the variogram parameter file (if used), and optional block
discretization parameters. Specify the storage of the kriging variance in item CUKVR.

Panel 5 - Variogram Parameters

This panel provides entry for the variogram parameters: model type, nugget, sill,
range, and direction of major axis. <Enter the values for Rock type 1 from the table in
the Variograms section of the workbook,> recalling that the sill in the table includes the
nugget effect.

Panel 6 - Optional Search Parameters

Ellipsoidal Search and use of anisotropic distances are optional. For this run, <enter
major, minor, and vertical search distances of 210, 120, and 120, respectively. Enter
MEDS for the rotation angle specification and check the box to Use anisotropic
distances?>

Panel 7 - Optional Data Selection

This panel will only come up if you choose the anisotropic distances option on the
previous panel. The angles for this example are ROT = 10, DIPN = 0 and DIPE = 0.

Panel 8 - Optional Block Limiting and Geologic Matching

This panel provides options for up to three block limiting items and two code
matching items. Use only Rock Type 1 by specifying ROCK as a block limiting item
and entering the value 1 as the corresponding integer code. Also use ROCK as a code
matching item.

Panel 9 - Optional Data Selection

Since we have already limited the interpolation through block and code matching, we
can leave this panel blank.

The results of the interpolation are saved to the file 15 - you can check the results
visually by creating a Model View in MineSight 3-D.

Exercise
Repeat calculations for Rock Type 2. Use variograms calculated in Section 2. Change
search distances as you did for IDW.

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Proprietary Information of Mintec, inc. Debugging Interpolation Runs

Debugging Interpolation Runs Notes:

Learning Outcome
In this section you will learn how to debug your interpolation runs.

You will learn how to:

make a list of the composites used for interpolating a block,

make a visual representation of your search parameters, and

find out how small changes in search parameters affect your interpolation.

Kriging Debug Procedure

Exercise 1
<Run procedure p624db.dat (M624V1 procedure with debug option built in).> Fill
panels as described in the following:

Panel 1 M624V1: Kriging Search Parameters

This panel allows you to select the desired model file (file 15, msop15.dat), the
desired composite file (file 9, msop09.dat), the area to interpolate (for this example,
bench 35, row 75, column 85) and filename extensions (well use dbg for this
example).

Panel 2 M624V1: Kriging Search Parameters

This panel accepts input for the search distances and parameters for this and
subsequent examples, well use the search parameters and variogram parameters used
for rock type 2. <Enter a search distance of 240m in the x and y directions. Use 240m
as well as for maximum distance, 50m in the z direction and a maximum 3D distance for
closest composite of 100m. Specify a minimum of 3 composites and a maximum of 16
composites to interpolate a block.> Leave the rest of the panel entries blank.

Panel 3 Interpolation Control Items

This panel provides input for the items to be interpolated. For this example, well
interpolate the composite CU values into the model item CUKRG, using the kriging
option (calc type 0). Accept the defaults for the rest of the panel.

Panel 4 Optional Input Parameters/Composite Type

This panel provides input for the variogram parameter file, if you have one if not,
the variogram parameters are entered on a subsequent panel. This panel also provides
other optional interpolation parameters; leave this panel blank for this example.

Panel 5 Variogram Parameters

This panel accepts the variogram parameters if no variogram parameter file has been
previously entered. Use the following parameters:

Sill (without Directions

model nugget Ranges
nugget) (MEDS)
EXP 0.007 0.078 80/60/60 45/0/0

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Panel 6 Optional Limiting and Search Parameters

Notes: This panel accepts a number of optional search parameters relating to block limiting,
anisotropic distances and search ellipses. <Enter rock type 2, use geologic matching for
rock type, enter en ellipsoidal search of 240m by 180m by 180m. Use MEDS rotation
angles and turn on the anisotropic distances option.>

Panel 7 Optional Data Selection

<Define the ellipsoidal orientation. Enter 45 degrees for first rotation and 0 degrees
for the other two.>

Panel 8 Optional Composite Data Selection

This panel allows you to define portions of the data to include or exclude from the
analysis based on item values, and outlier definition options. Select all available data by
leaving this panel blank.

Panel 9 Input Parameters for ellipsoid generation.

You can type in the names of the output files and objects. Leave blank for this
exercise.

Examine Results
<Open file rpt624.dbg.> This is a list of the composites used:

DIST EAST NORTH ELEV VALUE DH

84.24 2628.40 5432.60 2435.0 0.6300 53
86.58 2628.40 5432.60 2450.0 0.3700 53
93.25 2628.40 5432.60 2465.0 0.3100 53
93.25 2628.40 5432.60 2405.0 0.4700 53
103.42 2628.40 5432.60 2390.0 0.6100 53
103.42 2628.40 5432.60 2480.0 0.4100 53
103.69 2728.30 5439.10 2480.0 0.7300 54
132.10 2618.80 5558.90 2435.0 0.0100 61
133.60 2618.80 5558.90 2420.0 0.0000 61
133.60 2618.80 5558.90 2450.0 0.0100 61
138.02 2618.80 5558.90 2465.0 0.0000 61
138.02 2618.80 5558.90 2405.0 0.0100 61
145.09 2618.80 5558.90 2390.0 0.0000 61
145.09 2618.80 5558.90 2480.0 0.0000 61
158.24 2829.60 5537.40 2435.0 0.3300 62
159.50 2829.60 5537.40 2420.0 0.2300 62

Block (75, 75) Calculated = 0.3906

Note all of the composites are well inside the 240m maximum search distance.
Distances reported are adjusted by anisotropy. If you want to see the real distances,
rerun procedure without the anisotropic option on. You should now notice that the
order of the composites has changed.

Exercise 2
<Rerun procedure. This time apply a max distance of 120m. Change the ellipsoidal
search distances to 120x90x90.> What do you notice?

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Proprietary Information of Mintec, inc. Debugging Interpolation Runs

Exercise 3
<Rerun procedure. This time apply a max distance to the closest composite equal to Notes:
50m.> What do you notice?

Exercise 4
<Rerun procedure. Change max distance to the closest composite back to 100m. This
time apply max number of composites to be used equal to 7.> Check report and study
results:

DIST EAST NORTH ELEV VALUE DH

77.99 2728.30 5439.10 2480.0 0.7300 54
84.20 2628.40 5432.60 2435.0 0.6300 53
85.52 2628.40 5432.60 2450.0 0.3700 53
89.38 2628.40 5432.60 2465.0 0.3100 53
89.38 2628.40 5432.60 2405.0 0.4700 53
95.47 2628.40 5432.60 2390.0 0.6100 53
95.47 2628.40 5432.60 2480.0 0.4100 53

Exercise 5
<Rerun procedure using the outlier options from the last panel. Use an outlier value
of 0.70. Use max distance for outliers equal to 75.> Open report:

DIST EAST NORTH ELEV VALUE DH

84.20 2628.40 5432.60 2435.0 0.6300 53
85.52 2628.40 5432.60 2450.0 0.3700 53
89.38 2628.40 5432.60 2465.0 0.3100 53
89.38 2628.40 5432.60 2405.0 0.4700 53
95.47 2628.40 5432.60 2390.0 0.6100 53
95.47 2628.40 5432.60 2480.0 0.4100 53

It seems like there are no more composites available. <To add one more (7 total)
increase max distance to 240m as well as the ellipsoidal searches to 240x180x180:

DIST EAST NORTH ELEV VALUE DH

84.20 2628.40 5432.60 2435.0 0.6300 53
85.52 2628.40 5432.60 2450.0 0.3700 53
89.38 2628.40 5432.60 2465.0 0.3100 53
89.38 2628.40 5432.60 2405.0 0.4700 53
95.47 2628.40 5432.60 2390.0 0.6100 53
95.47 2628.40 5432.60 2480.0 0.4100 53
99.08 2618.80 5558.90 2435.0 0.0100 61

Exercise 6
Rerun procedure using the octant/quadrant search options.>

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Ellipsoidal Search
Notes:
Exercise
<Run procedure p624db.dat to build some ellipses and view them in MineSight 3-D.>
Do not use octant/quadrant options.

In MineSight 3-D, you can import ellipse as a MineSight object (import file
ellips.msr). Adjust properties of object if needed.

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Proprietary Information of Mintec, inc. Pt Validation/Cross Validation of Est Methods - Search Parameters

Point Validation/Cross Validation of Notes:

Estimation Methods and/or Search
Parameters
In this section you will use inverse distance weighting and Kriging methods to
determine the error between the estimated and the actual known value of composite data
at selected locations. Then, you will decide which method is more appropriate. You will
also validate search parameters.

Learning Outcome
In this section you will learn:

The types of interpolations available in point validation

The use of controls on the interpolation

How to interpolate point grades with MineSight

Types of Point Interpolations

Each composite is interpolated using different powers of inverse distance weighting
method and Kriging. The results are then summarized showing the differences between
the estimated and actual known data values. The following interpolations are done by
default by the program.

Inverse distance weighting (IDW) of power 1.0

IDW of power 1.5

IDW of power 2.0

IDW of power 2.5

IDW of power 3.0

Kriging

Interpolation Controls
There is a large range of parameters for controlling the point interpolation.

Search distance N-S, E-W, and by elevation

3-D ellipsoidal search

Minimum and maximum number of composites to use

Maximum distance to the nearest composite

Use or omit geologic control

Inverse distance powers and variogram parameters

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Point interpolation program M524V1 outputs the results for each composite used to
Notes: an ASCII file. These results are evaluated using program M525TS and the statistical
summaries are output to the report file.

Point Validation
On the MineSight Compass Menu tab, <select the Group Statistics, and the
Operation Calculation; from the procedure list, select procedure p52401.dat - Point
Validation>. Fill out the panels as described.

Panel 1 - File and Area Selection

This panel provides input for the composite file to use, and for the area of the model
to validate. <Select the composite file 9 and leave the rest of the panel blank>.

Panel 2 - Point Interpolation

This panel provides input for the validation item and search parameters. <Enter the
Rock type 1 search parameter values for the CU item (210m horizontal, 50m vertical,
210m 3D). Use 3 as the minimum number of composites and 16 as the maximum.>

Panel 3 - Optional Ellipsoidal Search Parameters

Ellipsoidal Search and use of anisotropic distances are optional. For this run, <enter
major, minor, and vertical search distances of 210, 120, and 120, respectively. Enter
MEDS for the rotation angle specification and check the box to Use anisotropic
distances? >

Panel 4 - Optional Data Selection

This panel will only come up if you choose the anisotropic distances option on the
previous panel. The angles for this example are ROT = 10, DIPN = 0 and DIPE = 0.

Panel 5 - Optional Parameters

<Enter the name of the previously prepared variogram parameter file (vario.rk1)>. If
the variogram parameter file is not entered in this panel, you will be prompted to enter
the variogram parameters on subsequent panels.

Panel 6 - Optional Data Selection for Point Interpolation

This panel allows you to define portions of the data to include or exclude from the
analysis based on item values. There is also an optional selection item and geologic
matching item available for further data limiting. <Select only ROCK item value 1 for
plotting by using the RANGE command, and specify ROCK as the geologic matching
item>.

Panel 7 - Optional Parameters

Use the default IDW powers for each case; generate a detailed report for case 3, using
a 0.1 frequency interval and 40 intervals.

Results
This report (on the next page) shows summary statistics for actual composite grades
versus the results from different interpolations.

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Notes:

This section of the report shows the statistics of the differences between actual and
kriging values The histogram is the histogram of the errors.

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This section of the report file shows correlation statistics between the actual and
Notes: Kriging values.

This section of the report file shows correlation statistics between the actual and
inverse distance values.

Exercise
Change some of the search parameters and rerun the above procedure. What do you
observe?

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Proprietary Information of Mintec, inc. Model Statistics/Geologic Reserve

Model Statistics/Geologic Reserves Notes:

Prior to this section you added the grades, topography, and necessary geology into the
mine model. In this section you will summarize the mine model data with frequency
distributions and calculated the geologic resources.

Learning Outcome
In this section you will learn:

How to calculate grade and tonnages above different cutoffs

How to calculate grade and tonnages between cutoffs

How to produce a histogram plot of model values

How to generate reserves by bench or geological resources

How to generate probability plots from the model

Model Statistics
From the MS Compass Menu tab, <select the Group Statistics, and the Operation
Calculation; from the procedure list, select procedure p60801.dat - Statistics (Model)>.
Fill out the panels as described.

Panel 1 - 3D Model Data Statistical Analysis

This panel is used to specify the model file for analysis - file 15 in this example.

Panel 2 - 3D Model Data Statistical Analysis

This panel provides input for the item(s) to be analyzed, along with optional
weighting and selection items. For this example, <use CUID as the first (base) item;
also enter the items CUKRG, CUPLY, and MOID. Weight the results by the TOPO item
with a multiplier of 0.01>.

Panel 3 - 3D Model Data Statistical Analysis

This panel is used to enter the frequency analysis parameters; use a minimum of zero,
and 40 intervals with an interval size of 0.1. <Enter cu1 as the filename extension for
both the run and report files>.

Panel 4 - Optional Data Selection

This panel allows you to define portions of the data to include or exclude from the
analysis based on item values.< Select ROCK item values 1 and 2 by using the RANGE
command. Enter 16.2 as multiplier for resource calculation>. This is the Ktonnage/
block for our project.

Panel 5 - 3D Model Data Statistical Analysis

This panel provides the opportunity to limit the data selection based on model
parameters, as well as titling options. Let the area selection default to the entire model,
but enter a title such as Inverse Distance Weighting.

Panel 6 - Histogram Plot Attributes

Set up the Histogram Plot Attributes as desired.

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Results and Histogram Plot

Notes: This section of the report file (rpt608.cu1) shows the grade and tonnage of CUID,
CUKRG, CUPLY and MOID values at specified cutoffs.

This section of the report file shows the tonnage and grade of CUID values at each
bench. The grade is reported at whatever the minimum value specified on Panel 3.

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Notes:

When you close the report file, the MPLOT panel will come up, giving you the
opportunity to preview the contour data plot, send it to the plotter, or generate a deferred
plot file for later use.

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Notes:

Exercise
Generate model statistics for items from IDW, polygonal and Kriging methods
separately. Use the same cutoff intervals. We will use the data output files from each run
to make grade tonnage plots. Use filename extensions cui, cup, and cuk respectively.

Grade/Tonnage Plots
From the MineSight Compass Menu tab, <select the Group Statistics, and the
Operation Plot; from the procedure list, select procedure pgtplt.dat - Grade/Tonnage
Plots>. Fill out the panel as described.

Panel 1 Select Files or Parameters

We will plot grade/tonnage curves from polygonal, IDW and kriging methods on the
same graph. Specify the data files produced in the previous section for each of these
options: dat608.cup, dat608.cui,and dat608.cuk. Differentiate between the curves with
contrasting symbol and linetypes, and enter an appropriate title such as Polygonal vs
IDW (+) vs Kriging (#).

Results and Grade/Tonnage Plot

The MPLOT panel will appear, giving you the option to preview, plot directly to the
plotter, or generate a deferred plot file for later use. <Preview the plot, then close the
preview with the X and Exit the MPLOT panel>.

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Notes:

Plot IDW and Kriging Histograms Together

On the MineSight Compass Menu tab, <select the Group Plotting, and the Operation
Plot; from the procedure list, select procedure anyplt.dat - Grade/Tonnage Plots>. Fill
out the panel as described.

Panel 1 Plotting panel

<Enter scale and x, y limits (plotting units, not project units)>. Plotting files are
USERF. Use appropriate shift commands, as shown in the figure on the next page.

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Notes:

Results and Histogram Plot

The plot is opened in program M122MF. <To exit, click the X>.

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Model Statistics At and Between Cutoffs Notes:

On the MineSight Compass Menu tab, <select the Group Statistics, and the
Operation Calculation; from the procedure list, select procedure p60802.dat - Statistics
at User Cutoffs (Model)>. Fill out the panels as described.

Panel 1 - 3D Model Data Statistical Analysis

This panel provides input for file selection - use file 15 for this example.

Panel 2 - 3D Model Data Statistical Analysis

This panel provides input for the item(s) to be analyzed, along with optional
weighting and selection items. For this example, use CUID as the first (base) item;
weight the results by the TOPO item with a multiplier of 0.01.

Panel 3 - 3D Model Data Statistical Analysis

This panel provides input for the item parameters and cutoff grades. <Enter zero as
the first interval and minimum, check the box to not accumulate intervals, and enterci2'
as the filename extension for both the run and report files>. The CU cutoffs for this
example are 0.2, 0.4, 0.5, 0.75, 1.0, and 1.5.

Panel 4 - Optional Data Selection for Model Statistics

This panel allows you to define portions of the data to include or exclude from the
analysis based on item values. <Select ROCK item values 1 and 2 by using the RANGE
command. In addition, enter 16.2 as multiplier for resource calculation>. This is the
Ktonnage/block for our project.

Panel 5 - 3D Model Data Statistical Analysis

Calculate the statistics for all benches by accepting the default values, and enter a title
such as IDW at user cutoffs/non cumulative.

Panel 6 - Histogram Plot Attributes

Set up the Histogram Plot Attributes as desired.

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Results and Histogram Plot

Notes: This section of the report file shows the grade and tonnage of CUID values at user
specified cutoffs. Note that the figures are for between the cutoffs. The results are
presented in a tabular form and as a symbolic histogram.

This section of the report file has a bench-by-bench breakdown of CUID values.

When you exit the report file, the MPLOT panel will appear, giving you the option to
preview, plot directly to the plotter, or generate a deferred plot file for later use.
<Preview the plot, then close the preview with the X and Exit the MPLOT panel>.

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Notes:

Model Correlations
<On the MineSight Compass Menu tab, select the Group Statistics, and the Operation
Calculation; from the procedure list, select procedure p61801.dat - Correlations
(Model)>. Fill out the panels as described.

Panel 1 - 3-D Model Data Correlation Analysis

This panel provides input for file selection, filename extensions, and titling options.
<Select the 3D model file (file 15), and specify a filename extension of cu for both the
run and report files>.

Panel 2 - 3-D Model Data Correlation Analysis

This panel provides input for model item selection and axis values. <Enter CUID for
the y-axis and CUKRG for the x-axis of the plot. Use a minimum of zero and a
maximum of three for both axes>.

Panel 3 - 3D Model Data Correlation Analysis

<Calculate the statistics for all benches by accepting the default values, and enter a
title such as IDW vs Kriging>.

Panel 4 - Optional Data Selection for Model Correlations

This panel allows you to define portions of the data to include or exclude from the
analysis based on item values. There is also an option for a selection item for further
data limiting. <Select only ROCK item value 1 by using the RANGE command>.

Results and Correlation Plot

This section of the report file (rpt618.cu) shows the summary of correlation statistics
between CUID and CUKGR values.

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Notes:

When you exit the report file, the MPLOT panel will appear, giving you the option to
preview, plot directly to the plotter, or generate a deferred plot file for later use.
<Preview the plot, then close the preview with the X and Exit the MPLOT panel>.

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Exercise
Calculate the correlations between polygonal and Kriging grades. What do you Notes:
observe?

Probability Plots
On the MineSight Compass Menu tab, <select the Group Statistics, and the
Operation Plot; from the procedure list, select procedure p61901.dat - Probability Plot
(Model)>. Fill out the panels as described.

Panel 1 - 3D Model Cumulative Probability Plot

This panel provides input for file selection, area specification, and filename
extensions. Select the 3D model file (file 15), and allow the rest of the panel to default.

Panel 2 - 3D Model Cumulative Probability Plot

This panel provides input for the model item and limits and titling options. <Select
the item CUKRG, using a minimum value of zero and a maximum value of three. Enter
a title such as Probability plot for kriging estimate>.

Panel 3 - Optional Data Selection for the Probability Plot

This panel allows you to define portions of the data to include or exclude from the
analysis based on item values. There is also an option for a selection item for further
data limiting. Select all model data by leaving this panel blank.

Panel 4 - Pen Specification and Optional User Plot Files

This panel provides the opportunity to overlay other plotfiles on this plot. Leave this
panel blank for this exercise.

Panel 5 - Optional Plot Parameters

This panel provides input for various plot parameters; fill this panel out as desired.

Results and Probability Plot

The MPLOT panel will appear, giving you the option to preview, plot directly to the
plotter, or generate a deferred plot file for later use. <Preview the plot, then close the
preview with the X and Exit the MPLOT panel>.

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Model Statistics/Geologic Reserves Proprietary Information of Mintec, inc.

Notes:

Exercise
Create separate probability plots for Rock Types 1 and 2. Compare results.

Page 8-12 Part #: E005 Rev. B

Proprietary Information of Mintec, inc. Model Calculations

Model Calculations Notes:

In this section you will calculate block values for item EQCU and store them in the
model.

Learning Outcome
In this section you will learn how to perform calculations using information stored in
the model.

Model Calculations
<From the MineSight Compass Menu tab, select the Group Statistics, and the
Operation Plot; from the procedure list, select procedure p61201.dat - User-Calcs
(Model)>. Fill out the panels as described.

Panel 1 - Mine Model/Surface File Data Items to be Used

This panel provides input for the model file type, area specification and filename
extensions. <Specify file 15, and leave the rest of the panel blank.>

Panel 2 - Mine Model/Surface File Data Items to be Used

This panel provides input for the model items to use in the calculation. Since we will
calculate EQCU values from values stored for CUID and MOID, we need to enter these
three items. <Enter zeros for optional values to substitute for undefined values.>

Panel 3 - Optional Data Selection for M612RP Calculations

This panel allows you to define portions of the data to include or exclude from the
analysis based on item values. You can also specify an optional boundary file in this
panel. <Use the RANGE command to specify ROCK Types 1 and 2, and CUID values
between 0 and 99.>

Panel 4 - Define Special Project Calculations for M612RP

In this panel the model calculation(s) are defined; if more than ten calculations are
required, check the box at the bottom of the panel. For this exercise, we will <define
EQCU = CUID + MOID * 5 and leave the box unchecked.>

Panel 5 - Optional Storage of Items Back to the Model

This panel provides input for specifying the item(s) in the model where the result is
to be stored. For this exercise, well <store only the EQCU item.>

The results are stored directly to the specified item in the model file. To check the
results visually, simply create a Model View in MineSight 3-D.

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Model Calculations Proprietary Information of Mintec, inc.

Notes:

Page 9-2 Part #: E005 Rev. B

Proprietary Information of Mintec, inc. Quantifying Uncertainty

Quantifying Uncertainty Notes:

Prior to this section you calculated the distance to the closest composite and the
Kriging variance.

Learning Outcome
In this section, you will learn how to quantify your confidence in the results of the
block model calculations.

We will use different approaches:

distance to the closest composite,

Kriging variance,

combined Kriging variance,

and Relative Variability Index.

Distance to the Closest Composites Calculations

<Assign the value of 1 to model item ZONE, when DISTP = 0 to 39 > (since we used
the same search distances for IDW and Kriging, item DISTP represents the distance to
the closest composite for both methods).

Distance of 39m corresponds more or less to 25% of the model. Fifty percent of the
model was assigned distances up to 57m, and 75% up to 77m. Distances are not true
(they are anisotropic).

On the MS Compass Menu tab, <select the Group 3D Deposit Modeling, and the
Operation Calculation; from the procedure list, select procedure p61201.dat - User-
Calcs (Model)>. Fill out the panels as described.

Panel 1 - Mine Model/Surface File Data Items to be Used

This panel provides input for the model file type, area specification and filename
extensions. Specify file 15, and leave the rest of the panel blank.

Panel 2 - Mine Model/Surface File Data Items to be Used

This panel provides input for the model items to use in the calculation. Since we are
not actually doing any calculation this run, leave this panel blank..

Panel 3 - Optional Data Selection for M612RP Calculations

This panel allows you to define portions of the data to include or exclude from the
analysis based on item values. You can also specify an optional boundary file in this
panel. <Use the RANGE command to specify DISTP values between 0 and 39, and
CUID values between 0 and 99>.

Panel 4 - Define Special Project Calculations for M612RP

In this panel the model calculation(s) are defined; if more than ten calculations are
required, check the box at the bottom of the panel. For this exercise, we will <define
ZONE = 1 and leave the box unchecked>.

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Panel 5 - Optional Storage of Items Back to the Model

Notes: This panel provides input for specifying the item(s) in the model where the result is
to be stored. For this exercise, well store only the ZONE item.

Repeat the procedure for:

Zone = 2 when DISTP = 40 to 57

Zone = 3 when DISTP = 57 to 77

Zone = 4 when DISTP >77

These values for ZONE will be used to define proven ore (ZONE =1 or 2), probable
ore (ZONE =3) and possible ore (ZONE =4).

Exercise
Make a model view of item ZONE in MS2 to check the results of the code
assignment.

Kriging Variance
Make a model view of the item CUKVR as it was calculated by running procedure
P62401.DAT. Use cutoffs of 0.039, 0.055 and 0.087 (quartiles).

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Proprietary Information of Mintec, inc. Quantifying Uncertainty

Notes:

Combined Kriging Variance

Rerun the Kriging procedure for each rock type. Calculate combined variance instead
of Kriging variance. Store in item CUKCV. Make a model view. Use cutoffs of 0.005,
0.010, and 0.021 (quartiles).

Relative Variability Index

Rerun the Kriging procedure for each rock type. Calculate RVI instead of Combined
variance. Store in item RVI. Make a model view. Use cutoffs of 0.22, 0.34, and 0.65
(quartiles). What do you notice?

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Quantifying Uncertainty Proprietary Information of Mintec, inc.

Notes:

Page 10-4 Part #: E005 Rev. B

Proprietary Information of Mintec, inc. Change of Support

Change of Support Notes:

Prior to this section you had the composite and 3-D model files initialized and loaded.
You also calculated the classical statistics and the grade variograms of the composites.

Learning Outcome
In this section you will learn:

What change of support means

How to determine indicator cutoffs

How to calculate block variance for different size blocks

What is Kriges relationship of variance

How to determine change of support correction factor

How to do global change of support correction

Change of support methods

Change of Support
The term support at the sampling stage refers to the characteristics of the sampling
unit, such as the size, shape and orientation of the sample. For example, channel
samples and diamond drillcore samples have different supports. At the modeling and
mine planning stage, the term support refers to the volume of the blocks used for
estimation and production.

It is important to account for the effect of the support in our estimation procedures,
since increasing the support has the effect of reducing the spread of data values. As the
support increases, the distribution of data gradually becomes more symmetrical. The
only parameter that is not affected by the support of the data is the mean. The mean of
the data should stay the same even if we change the support.

Global Correction
There are some methods available for adjusting an estimated distribution to account
for the support effect. The most popular ones are affine correction and indirect
lognormal correction. All of these methods have two features in common:

1. They leave the mean of the distribution unchanged.

2. They change the variance of the distribution by some adjustment factor.

Kriges Relationship of Variance

This is the special complement to the partitioning of variances, which simply says
that the variance of point values is equal to the variance of block values plus the
variance of points within blocks. The equation is given below:

sp2 = sb2 + s2pgb

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Change of Support Proprietary Information of Mintec, inc.

Calculation of Block Variance

Notes:
<On the MineSight Compass Menu tab, select the Group Statistics, and the Operation
Calculation; from the procedure list, select procedure psblkv.dat - Block Variance>.
Fill out the panels as described.

Panel 1 Block Variance Calculation

This panel provides input for the variogram parameter file, block size and
discretization factors. Use the existing variogram parameter file vario.rk1 and discretize
by a factor of four in both horizontal directions, and a factor of three vertically.

Results
The output report file summarizes the following:

Exercise 1
Change block size to 10x10 and re-run the procedure. What change do you see in the
block variance?

Exercise 2
Change block discretization to 10x10x5 and see the effect on the block variances of
20x20 blocks.

Exercise 3
If you have another variogram parameter file, try running the procedure with it. What
do you observe?

Page 11-2 Part #: E005 Rev. B

Proprietary Information of Mintec, inc. Change of Support

Change of Support on Composite Values

Notes:
On the MineSight Compass Menu tab, <select the Group Statistics, and the
Operation Calculation; from the procedure list, select procedure p40201.dat - Statistics
(Composites)>. Fill out the panels as described.

Panel 1 - 3-D Composite Data Statistical Analysis

This panel provides input for the composite file type and item to analyze. Enter
composite file 9 and specify CU as the base assay for analysis and histogram
generation.

Panel 2 - 3-D Composite Data Statistical Analysis

This panel provides input for the histogram frequency parameters and filename
extensions. Use a minimum value of zero, and report 40 intervals with an interval of
0.1. Enter a filename extension of cu for the run and report files, and check the change
of support option.

Panel 3 - Change of Support Parameters

This panel provides input for the output data file and the block variance. Send the
results of this run to file block.dat, and use the block variance from our earlier kriging
run (0.177).

Panel 4 - Optional Data Selection for Composite Statistics

This panel allows you to define portions of the data to include or exclude from the
analysis based on item values. Titling options are also provided on this panel. Select
only ROCK item value 1 by using the RANGE command, and enter a title such as 15-
m bench composites - rock type 1'.

Panel 5 - 3-D Coordinate Limits for Data Selection

This panel allows you to limit the data further, either by specifying a portion of the
project area or a boundary file. Leave this panel blank.

Panel 6 - Histogram Plot Attributes

This panel provides options for setting up your histogram display. Set up the
Histogram Plot Attributes as desired.

Results
Look into the file BLOCK.DAT using Notepad or another text editor. The first
column in this file displays the theoretical block grades after the change of support
correction is made. The second column contains the original data as input.

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Change of Support Proprietary Information of Mintec, inc.

Notes:

Distribution of Theoretical Blocks

On the MineSight Compass Menu tab, <select the Group Statistics, and the
Operation Calculation; from the procedure list, select procedure p40204.dat - ASCII
Data Stats> . Fill out the panels as described.

Panel - 1 ASCII Data Statistical Analysis

This panel provides input for the source data file, item label, an optional weighting
item, and other parameters. Use Block.dat as the input file, BLK as the grade item label,
and check the box to read as free format.

Panel 2 - Free Format Specs

This panel accepts the position of the input item(s) by column. Select Column #1 to
read the grade item.

Panel - 3 ASCII Data Statistical Analysis

This panel provides input for the statistical analysis parameters, filename extensions,
and titling options. Use a minimum value of zero with 40 frequency intervals, size 0.1.
Enter the filename extension blk for both the run and report files, and specify a title
such as Theoretical blocks.

Panel 4 - Histogram Plot Attributes

This panel provides options for setting up your histogram display. Set up the
Histogram Plot Attributes as desired.

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Proprietary Information of Mintec, inc. Change of Support

Results and Histogram Plot

The report file presents the ASCII data analysis in tabular and symbolic histogram Notes:
form.

When you exit the report file, the MPLOT panel will appear, giving you the option to
preview, plot directly to the plotter, or generate a deferred plot file for later use. Preview
the plot, then close the preview with the X and Exit the MPLOT panel.

Volume-Variance Correction on Composite Data

On the MineSight Compass Menu tab, <select the Group Statistics, and the
Operation Calculation; from the procedure list, select procedure pcmpvc.dat - Volume-
Variance (Composites)>. Fill out the panels as described.

Panel 1 - Volume-Variance Correction on Composite Grades

This panel provides input for the source composite file, interval specification, and
filename extension naming options. Accept the default file 9, and check the box to
bypass file 12.

Panel 2 - Volume-Variance Correction on Composite Grades

This panel provides input for the analysis item, destination item, and an optional
selection item. Use the CU item as the source, and store the results in item CUBLK.
Check the box to store results, and select the affine correction option (default).

Panel 3 - Optional Data Selection for Composites

This panel allows you to define portions of the data to include or exclude from the
analysis based on item values. Titling and boundary file options are also provided on
this panel. Select only ROCK item value 1 by using the RANGE command.

Panel 4 - Volume-Variance Correction Parameters

The Volume-Variance Correction factor will be block to point variance ratios:
0.17699/0.257 = 0.689; also enter the average grade of the composites (0.7053).

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Change of Support Proprietary Information of Mintec, inc.

Results
Notes: The report file (rpt508.lvc) contains a summary of the Volume-variance correction
results.

Exercise 1
Run stats on item CUBLK to look at the new distribution. Use extension AFF.

Exercise 2
Run the Volume-Variance Correction using the indirect lognormal method. Use 0.72
for the coefficient of variation. (Store back to CUBLK, run statistics, use extension
ILM.)

Exercise 3
Combine all histograms in one plot:

original data (plt402.cu)

hermite polynomials transformation (plt402.blk)

affine correction (plt402.aff), and

indirect lognormal method (plt402.ilm)

On the MineSight Compass Menu tab, select the Group Plotting, and the Operation
Plot; from the procedure list, select procedure anyplt.dat - Plot any USERF/DATAF. Fill
out the panels as described.

Plotting Panel
Enter scale and x,y limits (plotting units, not project). Plotting files are USERF. Use
appropriate shift commands.

Results
The plot should look like this:

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Proprietary Information of Mintec, inc. Change of Support

Notes:

Volume Variance Correction on Model Data

<From the MineSight Compass menu set Select Group Name = STATISTICS, Operations
Type = Calculation, and Procedure Desc. = Volume-variance - pmodvc.dat>

Panel 1 Select the File to Use

Leave this panel blank.

Panel 2 Select Items to be Used

Select indirect lognormal correction option. Use item CUKRG. Store back to item
CUKGG.

Panel 3 Optional Data Selection

Select Rock Type 1.

Panel 4 Volume-Variance Correction Parameters

Use a correction factor of 1.08. Assume that your SMU unit is 10 x 10 x 15. If you

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Change of Support Proprietary Information of Mintec, inc.

run procedure psblkv.dat for this size of a block, you should get a block variance of
Notes: 0.19157; therefore the correction factor should be 0.19157/0.17699 = 1.08. The average
model grade for Rock Type 1 is 0.6917 and the c.v. is 0.5025.

Results

Exercise 1
Run stats on item CUKGG to lookat the new distribution.

Exercise 2
Plot grade tonnage curves of CUKGG and CUKRG items to compare the original and
adjusted grade distribution.

Page 11-8 Part #: E005 Rev. B

Proprietary Information of Mintec, inc. Outlier Restricted Kriging

Outlier Restricted Kriging Notes:

Learning outcome
In this section you will learn about outlier restricted kriging and how to set it up in
MineSight.

Outlier Restricted Kriging (ORK)

ORK requires two major steps. The first step consists of assigning to each block the
probability P(x) or the proportion of the outlier data within the block. This value is
between 0 and 1. The second step involves the assignment of the weights to each data
point within the search volume of the block. These weights are assigned in such a way
that the sum of the weights for the outlier data is equal to the probability or proportion
which is determined from the first step. The weights for the other data add up to 1 -
P(x). Thus, the sum of all the weights is 1, as it should be for an unbiased estimator.

Determine the outlier cutoff grade

<Select Group Statistics, Operations Plot. Run procedure p41201.dat - Probability
Plot (assays or composites).

Make a CU probability plot and determine the outlier value. Use only benches 2540
to 2600.> For the next steps we are going to assume a cut off grade for outlier equal to
1.2 (there seem to be a deviation from a straight line in the probability plot around this
grade).

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Outlier Restricted Kriging Proprietary Information of Mintec, inc.

Calculate indicators
Notes:
In order to calculate the probability of each block to be above grade 1.2, we are going
to assign indicator values to the composites:

0 if the grade is below 1.2,

1 if otherwise.

This step requires that you have an additional item in file 9 to store the indicators with
min =0, max =1 (or more) and precision = 1.

<Select Group Composites, Operations Calculations. Run procedure p50801.dat -

User Calcs (Composites)

Use item ROCKX. For benches 2540 to 2600 assign value zero to item ROCKX (use
rock types 1 and 2). Then assign value ROCKX=1 for Cu>1.2>

Calculate probabilities
Assign the probability of occurrence of outlier grades to the blocks. This step
requires that you have an additional item in file 15 to store the probabilities. The item
should be initialized with min =0, max =1, precision = 0.01 or 0.001. Use Inverse
Distance Weighting to assign the probabilities.

<Select Group 3D-Modeling, Operations Calculations. Run procedure p62001.dat -

IDW interpolation

Use the same search parameters used in previous runs. Add one more item to
interpolate (CUIND using ROCKX). Interpolate only benches 24 to 28. Use OR1 and
OR2 as extensions for run files and reports.>

Perform ORK
<Select Group 3D-Modeling, Operations Calculations. Run procedure p62401.dat
Ordinary Kriging

Use the same search parameters used in previous runs. Replace model item to
interpolate to CUPLY. Interpolate only benches 24 to 28. Use OR1 and OR2 as
extensions for run files and reports. Add the ORK options in the last panel (use item
ROCKX from composite file and item CUIND from model).>

Compare results with regular kriging

Compare results from ordinary kriging and outlier restricted kriging. Run model
statistics and create grade-tonnage curves.

Page 12-2 Part #: E005 Rev. B

Proprietary Information of Mintec, inc. Indicator Kriging to Define Geologic Boundary above a Cutoff

Indicator Kriging to Define Geologic Notes:

Boundary above a Cutoff

Learning outcome
In this section you will learn:

- How to calculate the indicator function (0 or 1) based on a grade cutoff

- How to calculate the probability of a block having a grade value above the Cutoff

- How to view the probabilities (from block model) in MineSight

Indicator Kriging
The basis of the technique is transforming the composite grades to a (0 or 1) function.
All composite grades above cutoff can be assigned a code of 1 whereas all the
composites below can be assigned a code of 0. Then a variogram can be formed from
the indicators which can be used for Kriging the indicators. The resulting Kriging
estimate represents the probability of each block having a grade value above the cutoff.

Assign Indicators
On the MineSight Compass Menu tab, <select Group Composites, Operation Type
Calculations. Run procedure p50801.dat -User-Calcs (comps) to assign indicators to
item altrx.>

Panel 1 Labels of Composite Items to use

<Enter item altrx as the item to store the indicators.>

Panel 2 Optional Data Selection

<Enter a RANGE for the calculation on rock type 1 and 2 and cu grade 0 to 99.>

Panel 3 Limits for Data Selection

Leave this panel blank.

Panel 4 Special Project Calculations

<In this panel you need to assign an initial code of 0 to item altrx.Repeat the
procedure, but this time enter a range for cu from 0.3 to 99, and use altrx =1.>

Variogram of Indicators
On the MineSight Compass Menu tab, <select Group Composites, Operation type
Calculation. Run Procedure p30302.dat-Variograms (comp).>

Panel 1 Experimental Variograms for 3-D Composites

<Enter ALTRX as the item to use. Create a normal variogram. Use extension alt.>

Panel 2 Optional Variogram Parameters

Leave this panel blank

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Panel 3 Optional Data Selection

Notes: <Use both rock types.>

Panel 4 3-D Coordinate Limits for Data Selection

Leave this panel blank

Panel 5 Parameters for Multi-Directional Variograms

<Compute 4 normal variograms (4x1), starting at horizontal angle 0.0 with 45 degree
increments and at a vertical angle of 0.0. Use 10 intervals with 50 m lag distance. Use
22.5 degree horizontal windowing angle and 10 degree vertical windowing angle.>

Model the Indicator Variogram

On the MineSight Menu tab, <select Group Composites,Operation Type
Calculations. Run procedure p30002.dat- Variogram Modeling. Pick the 3-D global
variogram from the list and exit panel. Make a new model (nugget = .068, sill = .234,
range = 370).>

Page 13-2 Part #: E005 Rev. B

Proprietary Information of Mintec, inc. Indicator Kriging to Define Geologic Boundary above a Cutoff

Krige Indicators
Notes:
On the MineSight Menu tab, <select Group 3D Deposit Modeling I Operations Type
Calculations. Run procedure p62401.dat - Ordinary Kriging.>

Panel 1 Files and Model Specification Area

<Use extension alt.>

Panel 2 Krige Search Parameters

<Enter a search distance of 370m in the x and y directions as well as a maximum
distance. Enter 50m in the z direction and a maximum 3D distance for closest
composite of 100m. Specify a minimum of 3 composites and a maximum of 16
composites to interpolate a block.>

Panel 3 Interpolation Control Items

<Use composite item ALTRX to interpolate item CUIND.>

Panel 4 Optional Input Parameters

Leave this panel blank.

Panel 5 Variogram Parameters

<Use figures from previous exercise.>

Panels 6, 7, 8
Leave those panels blank.

View Results in MineSight

<Create a view of item CUIND. Set up intervals of 0 to 1 with an increment of 0.1.
Black out all cutoffs except 0.5. What you will see is a probabilistic boundary of model
values above 0.3.>

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Notes:

Page 13-4 Part #: E005 Rev. B

Proprietary Information of Mintec, inc. Multiple Indicator Kriging (M.I.K.)

Multiple Indicator Kriging (M.I.K.) Notes:

Prior to this section, you must have initialized and loaded the composite and 3-D
model files. You must also have calculated the classical statistics and the grade
variograms of the composites.

Learning Outcome
In this section you will learn:

How to determine indicator cutoffs

How to calculate indicator variograms

How to model indicator variograms

How to determine indicator class means

How to assign indicators to composite data

How to setup indicator variogram parameter files

How to calculate affine correction

How to do multiple indicator Kriging run

How to calculate indicator Kriging reserves

Overview
Multiple Indicator Kriging (M.I.K.) is a technique developed to overcome the
problems with estimating local recoverable reserves. The basis of the technique is the
indicator function which transforms the grades at each sampled location into a [0,1]
random variable. The indicator variograms of these variables are estimated at various
cutoff grades. The technique consists of estimating the distribution of composite data.
The distribution is then corrected to account for the actual selective mining unit (SMU)
size. This yields the distribution of SMU grades within each block. From that
distribution, recoverable reserves within the block can be retrieved. Accumulation of
recoverable reserves for these blocks over a volume gives the global recoverable
reserves for that volume.

Uses of Indicators
Indicators can be used to:

deal with outliers

model multiple populations

estimate categories (descriptive or qualitative variables)

estimate distributions

estimate confidence intervals

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Multiple Indicator Kriging (M.I.K.) Proprietary Information of Mintec, inc.

Incremental Statistics
Notes:
<On the MineSight Compass Menu tab, select Group Statistics, and the operation
Calculation. Run procedure p40201.dat - Statistics (composites).

Run statistics on item CU, using 100 increments of 0.02. Use extension IK1 for
reports and run files. Check the option not to accumulate the intervals. Do that only for
rock type 1.>

Results:

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Proprietary Information of Mintec, inc. Multiple Indicator Kriging (M.I.K.)

Notes:

Determine M.I.K Cutoffs

<On MineSight Compass Menu tab, Select Group MIK, operations calculations. Run
procedure pikcut.dat - MIK Cutoff Analysis.>

This procedure is used to analyze where the M.I.K. cutoffs should be for a given
grade distribution and the number of M.I.K. cutoffs specified. The basis of analysis is
the metal contained in each indicator class. It is possible that the user may try this
procedure several times until he or she is satisfied with the results.

Panel 1 M.I.K. Cutoff Grade Determination

<Enter the histogram file output from M402V1 for composites (dat402.ik1).> This file
must have been generated using statistics within cutoff option. <Enter 10 as the number
of M.I.K. cutoffs desired.>

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Multiple Indicator Kriging (M.I.K.) Proprietary Information of Mintec, inc.

Results:
Notes:

Calculating Indicator Variograms

<On the MineSight Compass Menu tab, select Group MIK and Operations Type
Calculation. Run procedure p30303.dat- Indicator Variograms>

Panel 1 Compute Indicator Variograms

<Use Composite item CU to compute the variograms. Use extension MIK.>

Panel 2 Optional Variogram Parameters

Specify the cutoffs at which indicator variograms are to be computed:

Cutoffs 0.42 0.56 0.68 0.78 0.88 0.98 1.12 1.30 1.46 1.66

Panel 3 Optional Data Selection

Limit the data input to Rock Type 1 only.

Panel 4 Optional Coordinate Limits

You have the option of limiting the area of data selection. Leave this panel blank.

Panel 5 Parameters for Multi-Directional Composite Variograms

<Compute 2 indicator variograms (2x1), starting at horizontal angle 0.0 with 90
degree increments and at vertical angle 0.0. Use 10 intervals with 50m lag distance.>
There will be a set of indicator variograms for each of the 10 cutoffs. There will also be
a set of variograms for the grade item. This is the last set. In the report file, a summary

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Proprietary Information of Mintec, inc. Multiple Indicator Kriging (M.I.K.)

appears for each variogram calculated. This is a 3-D omni-directional variogram for the
first indicator cutoff (IND1). Notes:

Modeling Indicator Variograms

<On the MineSight Compass Menu tab, select Group MIK,Operations Type
Calculation. Run Procedure p30002- Variogram Modeling.

Use the output from previous procedure as input (dat303.mik). Program M300V1
will display on the screen a list of the 2 directional variograms plus the 2-D Global
variogram and the 3-D Global variogram for each indicator. Click on 3-D Global on
each of the 10 indicators and then on Exit Panel.

Model the 10 variograms.>

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Notes:

Variogram Parameter File

<On the MineSight Menu tab, select Group MIK , Operations Type Edit. Run
Procedure pvgmik.dat - MIK Variogram Parameter File.>

Panel 1 Output and Description File

Variogram parameters will be written to the output file specified (vario.mik). Use 10
cutoffs. The mean beyond the last cutoff is 2.0 whereas the max value is 3.7. Affine
correction factor must be equal to or greater than 1 (use 1.15).

Panel 2 Variogram Parameters

<Enter the parameters for the first cutoff. Continue to set up the variogram
parameters for the other indicator cutoffs.> You can use the figures from the table.

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Proprietary Information of Mintec, inc. Multiple Indicator Kriging (M.I.K.)

Notes:
Variogram
Cutoff Mean Nugget Sill-nugget Range
type
0.42 0.1907 3 0.05 0.20 75
0.56 0.4802 3 0.05 0.20 75
0.68 0.6132 3 0.05 0.20 63
0.78 0.7241 3 0.06 0.18 63
0.88 0.8232 3 0.06 0.17 57
0.98 0.9199 1 0.05 0.15 51
1.12 1.0279 1 0.03 0.13 41
1.30 1.2050 1 0.03 0.10 41
1.46 1.3727 1 0.03 0.06 41
1.66 1.5539 1 0.02 0.03 32

Multiple Indicator Kriging

<Select Group Name MIK I Operations Type Calculations. Run procedure
p62402.dat - Multiple Indicator Kriging.>

Panel 1 Select Files / Area

<Use MIK as file extensions.>

Panel 2 M24IK Search Parameters

<Specify a 3-D search to find all composites within 400m horizontally and 50m
vertically of a block. Use 100m as maximum distance to the closest composite. Use a
minimum of 3 and a maximum of 16 composites.>

Panel 3 MIK Interpolation Control Items

The program computes the grade and the percent of ore above the specified cutoff for
each block and stores them into the 3-D block model. <Use zero as cutoff grade. Store
grade to item CUPCT. Store block% to item PCT. Specify that the block% item is a
percent item. Use composite item CU.>

Panel 4 MIK Input Parameters

MIK variogram parameters file must be specified (vario.mik). <Use 5 as min number
of composites in a class interval for the program to use local means.>

Panel 5 Optional Data Selection

Include Rock Type 1 data only.

Panel 6 Optional Search Parameters

Leave this panel blank.

Panel 7 Optional Geologic Codes

Kriging will be done in Rock Type 1 blocks only. Use geologic matching (item
ROCK).

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Multiple Indicator Kriging (M.I.K.) Proprietary Information of Mintec, inc.

MIK Reserves
Notes:
<On the MineSight Compass Menu tab, select Group MIK, Operations Calculations.
Run procedure p60801.dat - Statistics (model).>

Panel 1 3-D Model Data Statistical Analysis

<Use file 15.>

Panel 2 Model Data Statistical Analysis

Since MIK computes ore percent in each block, a second weighting item is necessary
for MIK cutoffs greater than 0. <Use item CUPCT with items TOPO and PCT as
weighting items (0.01 multipliers).>

Panel 3 Model Data Statistical Analysis

<Use 40 increments of 0.1. Use extension IK0.>

Panel 4 Optional Data Selection

<Enter 16.2 as multiplier for resource calculation.> This is the Ktonnage/block for
our project. <Limit statistics on rock type 1.>

Panel 5 Mine Model Statistical Analysis

<Calculate the statistics for the whole model.>

Panel 6 Histogram Plot Attributes

Report:

Page 14-8 Part #: E005 Rev. B

Proprietary Information of Mintec, inc. Other Non-Kriging Interpolation Methods

Other Non-Kriging Interpolation Methods Notes:

Learning Outcome
In this section you will learn:

How to use the Trend Planes method of interpolation

How to use the Gradient interpolation technique

Trend Plane Search Interpolation

M621V1 uses a similar interpolation scheme to M620V1. However, the search is
along the dip and strike of a trend plane specified by a mine model code associated with
a certain plane strike azimuth and plane dip angle as well as with certain distances along
the strike, dip and off the plane.

The program can be run from procedure p62101.dat. The procedure can be found in
MineSight Compass Menu, under Group 3d modeling I Operations Calculations.

Exercise
<Run procedure p62101.dat.> Try to use the same interpolation parameters as you
did with Inverse distance and Kriging methods.

Gradient Interpolation Technique

M625V1 uses gradients to neighboring points for weighting the sorted composites
during interpolation of mine model values. M625V1 uses the tangent plane or gradient
method to interpolate block values in a mine model. Tangent planes are calculated
between all composites and a specified number of neighboring composites. Each plane
must satisfy the following conditions:

the plane must pass through the function value at the point in question (i.e., through
the Z (grade) value),

and the angles the plane makes with vectors or lines to all of the various points in
the neighborhood must be minimized.

The angles are weighted by a function of how far or near the various neighboring
points are from the point of interest. After the tangent planes are generated, block values
are calculated from neighboring composites (now with gradients). User needs to
specify how many neighbors are used in this calculation. The gradient information for
each composite is evaluated at the block location and the calculation of the block value
is weighted by the distance from the block to each composite.

Exercise
<Run procedure p62501.dat under Group 3D Modeling I Operation
Calculations.> Try to use the same search parameters as in previous methods.

Part #: E005 Rev. B Page 15-1

Other Non-Kriging Interpolation Methods Proprietary Information of Mintec, inc.

Notes:

Page 15-2 Part #: E005 Rev. B