Practical applications of geology to resource reserve estimation 1

Practical applications of geology to resource

reserve estimation
The estimation of a reliable resource/reserve from a series of drill holes has always been a great concern of the
mining industry. The ability of a particular estimation technique to reliably predict the tonnage and grade of the
resource in question has often been identified as the main factor responsible for several mines failures. Several
estimation techniques have been applied in the past, these range from simple two dimensional polygons drawn on
cross or longitudinal sections to elaborate three dimensional block models utilizing complicated interpolation
parameters, yet the problem seems to persist.
It has been RPA's experience that the main problem in resource estimation does not necessarily lie with the
estimation method itself but with the basic application or mis-application of basic geological principles. The main
issue revolves around establishing continuity of mineralization and grade within a mineral deposit prior to estimating
the resource.
This paper summarizes the basic geological principles to be followed in resource estimation and highlights some of
the more common errors that arise when these principles are ignored.

INTRODUCTION
The estimation of a resource/reserve from a series of drill holes is probably the most demanding task that is required
of an exploration geologist. Difficulties in interpretation arise mainly because of the limited database that is often
available at the time of resource estimation. To better define the problem, consider a simple situation with a uniform
deposit extending for 300 m along strike, 200 m down dip with an average thickness of 2 m. This deposit has a total
3 contained volume of 120,000 m. If the deposit is drilled with BQ diamond drill core on a 30 m regular grid, the
geologist has less than 0.15 m3 of rock on which to base his estimate. It should therefore be noted that
resources/reserves are always estimated, and subject to possible error. The reliability of the estimate increases with
the level of geological knowledge of the deposit, and depends on the amount of data available and the characteristics
of the deposit.

DEFINING A GEOLOGICAL FRAMEWORK

General
Along with representative sampling and reliable assaying, a coherent geological interpretation is one of the main
components of resource estimation. Because of the impracticality of drilling a deposit at extremely close drill hole
spacing, the explorationists must interpolate the tonnage and grade of the deposit based on the small amount of
collected data and on their geological knowledge of the deposit. Drill hole spacing should be sufficient to make a
coherent interpretation of the geological framework within which continuity can be established. Continuity of both
the mineralized body and the grades can then be established with reasonable confidence.
There are no hard and fast rules on what drill hole spacing is needed for each category of resource or deposit type.
The key is to drill enough to develop confidence in the geological controls on mineralization and the continuity of
grades within them. It is not necessary to overdrill a deposit with drill hole spacing closer than necessary. After first
pass drilling of a deposit and a preliminary interpretation, a part of the deposit can be drilled in more detail to check
the reliability of the original interpretation. If the original interpretation is still valid with the more detailed drilling, it
may not be necessary to drill off the rest of the deposit in more detail. Variogram analysis of the data may also yield
valuable information on the appropriate drill hole density for a given deposit.
Practical applications of geology to resource reserve estimation 2

Deposit Continuity
Physical continuity of a mineral deposit is essential for it to be mined. A common error in resource estimation is to
“join the dots” or connect the best assays on drill sections without ensuring that geological continuity of the
mineralization is well established (Roscoe, 1991). This usually results in an overestimation of the grade and/or
tonnage of the deposit. This error can occur in either manual or computerized estimates if the geological framework
of the mineralization is ignored during the resource estimation process. The geological framework is established by
fitting the mineralization into a reasonable geological model so that continuity, geometry and dimensions can be
determined. It is necessary to establish whether one is dealing with a discrete mineral deposit or with an
uncorrelatable group of assays. A reasonable geological framework can be a stratigraphic unit, a host rock type, an
alteration zone, a structural or metamorphic feature. The geological framework must be consistent with the ore
deposit model being explored for, be it vein gold, volcanogenic massive sulphide, porphyry copper, sedimentary
iron, lead-zinc, etc.
Defining the geological continuity of a deposit is usually achieved by preparing geological cross sections and level
plans of the deposit. The orientation of the sections should be chosen both to maximize the data available and to
cross-cut the deposit in an orthogonal manner if possible. The initial interpretation must be tested by transferring it to
another set of sections or plans in a different orientation (Roscoe, 1997). This is necessary to confirm section to
section correlation and continuity. Modifications can be made until the interpretation fits both sets of sections and
plans. Computer plotting can speed up this process but the interpretation should be based on the geologist’s best
judgment of reality. These sections and plans will form the basis from which the resource and reserve will be
estimated. Hole to hole and section to section correlation must be reasonably well established in order to achieve a
reasonable resource estimation.
Figure 1 shows two sections at right angles to each other. Figure 1a is an east-west section that has been interpreted
from drill holes. There is good geological continuity from hole to hole on this section. Figure 1b is a north-south
section that has been constructed by transferring the interpretations from a number of east-west sections where they
intersect the north-south section. This exercise shows that the significant gold intersections and their host unit exhibit
good continuity from hole to hole and from section to section. The drill hole spacing is about 50 m. Subsequent
fill-in drilling provided more detail but did not significantly change the original interpretation.
Figure 2 is a drill section with many significant intersections within a broad alteration zone. Drill hole spacing is
variable. It can be seen that the intersections are difficult or impossible to correlate from hole to hole on this section,
and appear somewhat randomly distributed. A subsequent underground exploration program confirmed the lack of
continuity of mineralization and the deposit remains undeveloped.
Geological continuity is not always obvious or easy to establish from drilling only. Figure 3 depicts two very
different interpretations of the same drill section. Figure 3b, on the right, is a more recent interpretation that benefits
from two additional drill holes and from observations made in a test pit. It can be seen that the different
interpretations have implications for tonnage and grade estimations. For the more recent interpretation, the estimated
tonnage for the section was 27% lower and the grade 15% higher (Roscoe, 1993).
Practical applications of geology to resource reserve estimation 3

FIGURE 1a. E-W Section showing excellent continuity between drill holes. (after Roscoe, 1997)

FIGURE 1b. N-S Section with geology and intersection transferred from E-W drill sections. (after Roscoe, 1997)
Practical applications of geology to resource reserve estimation 4

FIGURE 2. Drill section showing drill hole intersections which are difficult to correlate. (after Roscoe, 1997)

FIGURE 3a. Earlier interpretation.

Practical applications of geology to resource reserve estimation 5

Figure 3b. More recent interpretation with additional drilling. (after Roscoe, 1993)

Resource Estimation
Estimation of the in situ mineral resource is usually the first stage of a two stage process of estimating an ore reserve.
The second stage involves applying mining and economic criteria to the resource to derive a mineable ore reserve.
Thus it is important at the resource estimation stage to use minimum grade and thickness width criteria that are
somewhat compatible with the expected mining criteria for economic cut-off grade and minimum mining width for
the anticipated mining method.
The resource estimation methodology used should be appropriate for the geometry of the deposit and the available
data. Some deposits are relatively planar and are resolvable into two dimensions, such as veins, bedding controlled
bodies, fault controlled bodies and other sheet-like bodies. For such 2D deposits, a longitudinal section can be
constructed. The longitudinal section is the primary tool for manual resource/reserve estimations. A separate
longitudinal section must be constructed for each individual mineralized deposit or lens.
The purpose of the longitudinal section or plan is to depict drill hole intersections and other data as they occur within
the plane of the mineralized body. It is critical that only correlatable information be plotted on a single longitudinal
section to fairly represent distribution of mineralization within the deposit. It is also equally important that all of the
data points, including low grade intersections, be plotted on the longitudinal section. Structures, such as faults traces
or fold hinge lines, can also be plotted on longitudinal section, as possible controls or limits to the mineralization.
A resource can be estimated from a carefully prepared longitudinal section or plan by a variety of methods, including
weighted averaging, polygonal blocking, triangulation, contour method, 2D interpolation by inverse distance, and 2D
kriging. In our experience, the polygonal blocking method has a tendency to overestimate both grade and tonnage,
particularly in gold deposits, and particularly where drill hole intercepts and other points are widely and/or
irregularly spaced. One of the most common errors in polygonal blocking is to set the polygonal radius equal to the
drill hole spacing. This can lead to unrealistic results if the drill hole spacing is greater than the geological continuity
of the mineralized body. It is our experience that for sparsely drilled deposits with significant assay variability, the
Practical applications of geology to resource reserve estimation 6

contour method offers a more realistic resource estimation than simple polygonal blocking on a longitudinal section
(Roscoe et al., 1991).
Figure 4 illustrates the problems that can occur with polygonal blocking when the polygon radius extends beyond the
grade continuity of the mineralized zone or when the polygon radius is set equal to the drill hole spacing. In Figure
4a, the mineralized zone was drilled at a 50 m drill hole spacing. The mineralized zone appears to be continuous,
extending for about 100 m along strike and 150 m down dip. Figure 4b displays the same zone after a second phase
of drilling at 25 m drill holes spacing. The second drilling program reduced the in situ tonnage of the mineralized
zone by about 45%. It is very likely that drilling the zone at a 10 m drill hole spacing would further reduce the in situ
tonnage.
Some mineral deposits are geometrically complex or very wide, and are not amendable to 2D treatment using
longitudinal sections. Some other method must be used to estimate resources, such as the cross sectional method or
3D block modelling. With the prolific expansion in personal computer capabilities combined with developments in
mining software, 3D block modelling by inverse distance interpolation or kriging has become a very popular method
of resource estimation. New 3D modelling software greatly enhances the ability to view deposits in three dimensions
and have placed a powerful tool in the hands of the geologist. It is important, however, as noted above, to establish
continuity of mineralization and grades within an appropriate geological framework before proceeding with a
computer generated resource estimation. This is commonly achieved by constructing a digital block model whereby
each block is assigned a rock or alteration code based on the geological interpretation. Grades are then interpolated
into the blocks within each geological unit using only samples that are representative of that specific geological
code. This is particularly important where mineralization is restricted to particular geological units and where grade
distribution is different in different units. The geological framework is used to constrain in situ blocks to specific
geological units, thus preventing extrapolation of grades to units interpreted to be unmineralized, which can
overestimate the tonnage and excessively dilute the grade.

Figure 4a. Polygonal blocking based on 50 m drill hole spacing.

Practical applications of geology to resource reserve estimation 7

Figure 4b. Polygonal blocking based on 25 m drill hole spacing.

CONCLUSIONS
A reliable estimate of the in situ resource depends on an adequate number of reasonably spaced drill holes,
representative and unbiased sampling, reliable assays, reasonable and coherent geological interpretation of the
deposit geometry and continuity, and appropriate resource estimation methods. The reliability of the estimate
increases with the level of geological knowledge of the deposit, and depends on the amount of data available and the
characteristics of the deposit.
The number of drill holes and their spacing depend on the type of mineralization, deposit geometry, geological
complexity and continuity, assay variability and sensitivity to nugget effect, reliability of sampling and mining
method considered. The in situ resource estimation must incorporate all aspects of the geological framework and
should always be based on the geologist’s best judgment of reality.

REFERENCES
ROSCOE, W. E., 1991.
Geological Framework for Reserves. Proceedings of a Seminar on Sampling and Ore Reserves, Prospectors and
Developers Association of Canada, Toronto, Ontario, pp. 55-64, March 23, 1991.
ROSCOE, W.E., GOW, N., and AGNERIAN, H., 1991. The Contour Method. The Northern Miner Magazine, v. 6,
no. 7, pp.47-50, September/October 1991.
ROSCOE, W. E., 1993.
Defining the Resource and the Reserve. Proceedings of the International Congress on Mine Design, Kingston,
Ontario, pp. 181-188, August, 1993.
ROSCOE, W. E., 1997.
Practical applications of geology to resource reserve estimation 8

Delineation of Resources After the Discovery. Proceedings of a Short Course given by the Prospectors and
Developers Associations of Canada, March 8, 1997.
Article Sources and Contributors 9

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