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Computer Based Resource Estimation
Computer Based Resource Estimation
INTRODUCTION
It has long been accepted practice amongst mine
John Duke1 is Principal Geologist – Metals, geologists to provide 'conservative' resource
Patrick Hanna2 is a Senior Geologist – Coal,
estimates. It is easier, the geologist argues, to accept
both with ECS International Pty Ltd.
Patrick Hanna is also a member of the JORC that some ore was missed in the estimate than to
Committee. admit to mine management and the mining engineers
that the estimate 'over stated' the resource. The mine
ECS International Pty Ltd is an Australian-owned geologist does not usually have to wait very long
software and consulting company. ECSI specialises in before mining reveals what is actually in the ground.
geology and mine planning for all types of mineral Additionally, the accumulated knowledge of the
commodities. ECSI can be contacted via email at existing mineralisation provides a solid basis for the
jhd@ecsi.com.au or fax on +61 2 48 613 902. predictive resource model on which the estimate is
made.
On an exploration project however, the exploration
ABSTRACT
geologist is often prone to provide a more 'optimistic'
Following the Busang fiasco, more detailed resource estimate. There is usually a long lead-time
guidelines were appended to the latest revision to development and hence to any reconciliation of the
of the JORC Code released in September 1999. resource to mine production. Consequently the
Although the definitions and terminology knowledge base for the resource model is very
essentially remained unchanged, the additional limited and grows only by further exploration.
information in the guidelines has highlighted a Whether the resource estimate is conservative or
number of issues for consideration by geologists optimistic, either way it is not necessarily the 'best'
undertaking computer-based resource estimate based on the available data and geological
estimations. understanding. According to the JORC Code, what
The three main issues are: investors and mine management need are resource
• Data Integrity - details such as drilling and estimates which are as accurate as possible so they
logging techniques, sampling procedures, can realistically assess the geological 'risk' of the
assay tests, site visits, data recording and project.
aggregation methods need to be considered. For many years now the resource geologist, whether
• Geological Interpretation – is the Competent attached to an existing mine or assigned to an
Person applying the appropriate software exploration project, will carry out resource estimation
interpretation to the deposit in accordance using specialised 'resource modelling' software. This
with the regional setting. Are the correct implies that the resource geologist not only works to
computer-based tools being applied and are understand the deposit but can use the appropriate
they producing the desired result (without software methods to model it accurately. Applying
compromise) to the satisfaction of the the appropriate methods involves both having access
Competent Person? to those methods in the available software and being
able to use them to generate a realistic and accurate
• Modelling Technique – the importance of the
model.
relevant experience of the Competent Person
not only in regard to the geology, but also DATA INTEGRITY
with respect to the modelling algorithms and The 1999 JORC Code provides us with guidelines
resource calculation methods of the computer (refer to Table 1 of the JORC Code) which are
software system involved. recognised as industry standard procedures for
At the end of the day, it is essential that the resource estimators. The first 9 points are concerned
Competent Person undertake a reality check on with the integrity of the geological data, such as,
the resource estimation itself. They should also logging, sampling, assaying and data location.
check that the borehole spacing is in accordance There are two important criteria to consider whilst
with the level of continuity for each critical developing a geological database for resource
parameter (such as structure, grade, impurities, estimation, Materiality, and Transparency. It is
etc) for which the resources are categorised. essential that the geologist remains focussed on these
1
Computer-based Resource Estimation In Accordance With The 1999 JORC Code
criteria when designing and compiling a geological It is also important that the database agrees entirely
database. with the final geological model. Some systems use an
Geologists should recognise the fact that the database extract summary file of the database to generate a
will evolve with a project as it develops from model. Often, a geologist may edit the extract file to
exploration to development through to the mining update the model, but neglect to update the database
stage. At all stages it is important that the investors, with the same edits. This is regarded as poor practice,
project managers and the mine planners are aware of as it often complicates an independent audit of the
the impact of geology on the viability of mining the resources. The best method to check the integrity of
resource. the database is to plot the data onto sections and
plans of the final model (Figure 2).
For these reasons it is essential that geologists know
why data was collected, which data is relevant to the The database should well documented, as it will
project and the reliability of the information. inevitably be scrutinised by external auditors. The
documentation should note, among other things, the
When compiling the database, geologists should extent of validation, assumptions, any shortcomings
ensure adequate data validation has been conducted. of the data, verification of laboratory results and
It is the authors’ opinion that geologist should not listings of the data, such as the borehole names,
only sign-off on a Resource Statement, but that they stratigraphic sequence, etc.
should be prepared to sign-off on the database itself
and that this should become a standard practice for Ultimately, the database will be the basis for which
the industry. the geologist will communicate:
Today’s geologists need to fully understand how data • The level of confidence an investor can “bank
can be manipulated with the software system they are on” from the Resource estimate reported.
using to store the data. A database should be all • Relevant information to the mine planners who
encompassing, integrating all types of information will determine a reserve estimate based on the
including lithology, analytical data, downhole geological conditions.
geophysical logs, geotechnical logs, hydrogeological
data, gas data, etc. Every piece of geological
information that has an impact on the project should
be retrievable from the database to be placed on
appropriate plans or cross-sections, even if it is not
related to a borehole (Figure 1).
Comments such as micro-faulting, H2S odour emitted
from borehole, and lost water circulation in borehole
(possible breccia/fractured zone), should be stored in
an appropriate form in the database.
Costean
data
Figure 5. Section through a complex gold vein Figure 6. Alternative geological interpretations of a
deposit showing the hangingwall and footwall sedimentary uranium deposit affect the grade
surfaces derived from vein ’envelope’ intercepts continuity in the resource model.
interpreted from a variety of exploration data.
Alternative Interpretations Using Geology to Control Estimation
It is sometimes useful to compare alternative The use of geology in guiding and controlling
interpretations, especially in an effort to arrive at the mineral resource estimation is particularly relevant to
best resource estimate. In the gold vein example both folded and faulted deposits. For example, in
a 3D block model vein ‘envelope’ and a 2D gridded modelling a steeply dipping gently folded base metal
high-grade vein interpretation were compared. The lode (see Figure 7) use was made of transformed
3D approach, whilst easier to define, caused blocks (a proprietary method called Z-Grid Control –
problems of “smearing” high-grade and low-grade see Cram and Duke 1992) to control grade estimation
gold estimations. The definition and correlation of within the fold.
2D high-grade veins (see figure 5) to generate a vein
model resulted in a much more accurate and useful
model for mine planning than the block model
derived from the envelope interpretation.
Interpretation 1.
ESTIMATION AND MODELLING TECHNIQUES
Zero thickness
As discussed in some detail in our earlier paper
Wedge
of high
intercept at (Duke and Hanna, 1997) geological interpretation
margin of
Interpretation 2.
grade deposit involves the geologist in using all relevant data to
define geological domains which differentiate the
various types of mineralisation in the deposit and
Sub-economic which stand up to the scrutiny of statistical and
High
grade grade intercept variogram analysis. The resource model is then built
extends at margin of
half way deposit by filling these domains with blocks and estimating
to low block grades in such a way as to accurately reflect the
grade
intercept geologist's understanding of spatial distribution
within each domain.
It is important that block models are constrained by and practical considerations. Practically, the
the controlling geological elements of the deposit, maximum scan distance should provide for sufficient
such as lode boundaries, structure and spatial samples in each search ellipsoid in order to generate
distribution of grades and other attributes. These a valid block grade in each block. Geologically, the
controls are incorporated into the computer model maximum scan distance is in the direction of greatest
using such tools as wireframes, triangulated and grade continuity as determined by the geologist’s
gridded surfaces and grade estimation procedures knowledge of the data.
adapted to emulate grade distributions. Block Size Vs Borehole Spacing
As a ‘rule of thumb’ blocks should be no smaller than
Choosing the Appropriate Estimation Technique a quarter of the average data spacing in each
Having defined the geological domains during the direction. Some grade estimation techniques, such as
geological interpretation stage, choosing the indicator kriging, require larger block sizes. However
appropriate estimation techniques involves finding if regularised blocks are used in folded domains, such
ways of modelling the spatial distribution of grades as the complex gold vein shown in Figure 5, then the
and other attributes within the domains. blocks will need to be much smaller than one quarter
the average data spacing in order honour the folded
Data Analysis Within Domains geometry of the lode.
A study of the spatial distribution of assay data that Model Validation - The Reality Check
lies within each domain usually increases the
geologist's understanding of the nature of To validate the resource model there is no substitute
mineralisation and provides the basis for determining for comparing between the model and the relevant
grade estimation strategies. This study involves borehole data plotted systematically on a full set of
examination of data spacing, and trends in values plans and sections. It is particularly useful for this
displayed on sections, plans and in 3D, along with checking to be carried out both by the Competent
statistical and variogram analysis. Person who will sign off on the resource estimate and
a geologist who has good knowledge and geological
Treatment of Extreme Grade Values understanding of the deposit (if not the same person).
If extreme grade values exist within a single domain, Check Estimates
there is a danger that these values will cause undue
influence on local grade estimation. Strategies to A check estimate is carried out as a way of validating
rectify this include cutting high grades, multiple the model on which the resource estimate is based. It
estimations using different search parameters for is important that the check estimate is carried out
different grade ranges and use of indicator kriging. using an entirely different method (often a more
These extreme values are often due to smaller scale manual method such as polygonal or sectional
structures such as mineralised stockwork veins, method) so that it provides a valid basis for
which are discontinuous and impossible to domain comparison. In the case of the complex gold vein
separately. deposit it proved to be very important that the 3D
block model of the vein envelope be checked against
Interpolation Parameters the 2D vein model. In fact, it was the 2D vein model
Grade interpolation methods include inverse distance that proved to be the most accurate and useful model.
weighting and kriging. Kriging is a geostatistical Previous Estimates
method of allocating optimal weights for local
estimation based on the variogram model. Grade Previous estimates must be used as a means of
interpolation parameters include such parameters as checking and comparing any resource estimate.
scan distance, sample/sector selection criteria and Differences need to be explained satisfactorily which
anisotropic ratios and rotation. Anisotropic control is maybe attributed to such factors as a revised
particularly useful for modelling deformed deposits geological interpretation, additional data or
(Figure 7). It is particularly important to use the differences in modelling method.
appropriate set of search strategies for each domain. Reconciliation and Mine Production Records
Maximum Scan Distance The real test of a resource model’s validity is how it
Choosing the maximum scan distance for grade reconciles with what is actually mined. In practice
estimation in any domain involves both geological however it is often difficult to provide accurate
reconciliation data, as the first step is to compare the
reserve estimate with production so as to eliminate Figure 7 General relationship between exploration
the differences between predicted and actual mining results, Mineral resources and Ore Reserves in the
losses and dilution. 1999 JORC Code
Measured Proved
REFERENCES