GOLD PYRAMID GROUP Mineral Resource Estimation

Mining And Petroleum

✓ Resource estimation is the process of creating a 3D of in situ mineralization based on the grade and tonnage and current geological
thinking of the subsurface material of interest. The resource may not be economic to extract.
✓ A reserve is that fraction of a resource that is demonstrated to be technically and economically recoverable.
✓ The goal of resource estimation is to combine the qualitative geological interpretation of the deposit (geological model) with the
sparse quantitative data (lithology, assay, density samples, etc) to create spatial predictions for the distribution of the mineralization that
help mining engineers plan, design and extract mineralization economically.
✓ Resource analysts depend on the geological modelling to define volumes (domains) that are stationary (no dominant trends, no
extreme grades, no mixed populations and the continuity between samples is the same wherever you are in the volume).
✓ I believe geological domaining is the most important step in resource estimation. When the geological domain is well defined, the
statistical side of geostatistical modelling is so simple.
✓ Estimation of resources and reserves requires the construction of long-term models (life of asset) for the entire deposit, which are
updated every 1–3 years of operation. Medium-term models may be built for planning one to 6 months into the future. Short-term models are
built for weekly or day-to-day decisions related to grade control or detailed planning.
✓ Constructing numerical models for long, medium or short-term resource assessment includes four major areas of work:
1. Data collection and management;
2. Geologic interpretation and modeling;
3. Grades assignment; and,
4. Assessing and managing geologic and grade uncertainty.
Resource Database
✓ The quality of a resource estimate is strongly dependent on the quality of the input data,
understanding of the geological environment hosting the deposit and the overall technical skill and
experience of the resource estimator.
✓ It is the one aspect that resource analysts, particularly with a good geological background,
can do well and where they will have the most significant impact on the resource model.
✓ The importance of oriented drill core for collecting geological information (Davis, 2014, this
volume) and good-quality core logging and testing to provide reliable geotechnical data for optimal
mine design (van As, 2014, this volume).
✓ The main principles for effectively constructing and administering a relational database
for mineral exploration and resource estimation are documented by Abzalov Applied Mining
Geology pp 177–183.
✓ The problem of sample data bias in resource estimation is examined by Gy and François-
Bongarçon (2014, this volume) in their introduction to qualitative sampling theory.
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Geological interpretation and geological modelling
✓ While powerful software is now used to rapidly interpret and model geology, the final interpretation
still requires the eye of an experienced geologist for validation. Cowan (2014, this volume) emphasizes that
although data acquisition, interpretation and modelling methods have improved significantly,
modelling software should not drive the interpretation process.
✓ The geological model is a representation of those variables that control the mineralization and the
foundation for the Mineral Resource and Ore Reserve estimation processes, so ensure interpretations make
geological sense. Hence, a model based on data of inadequate quality or quantity or a superficial
geological interpretation will deliver poorly informed financial decisions.
✓ Often uncertainty associated with tonnages and grades were either ignored or
mishandled. All numerical models have multiple significant sources of uncertainty
including the data, the geologic interpretation, and the grade modeling.
✓ To establish international standards for classifying mineral resources and reserves, it is
important to establish the level of confidence in the results and correctly assess the
error.
✓ Ensure you have a good understanding of the code under which you report where there
are several guides to good practice in Mineral Resource estimation including the CIM
guidelines (CIM, 2003) and the current JORC Code (2012). In particular, the codes
call on us to report according to principles of Materiality, Transparency and
Competence.

✓ Some of the most important data issues in the field include

(1) the location of drill holes, trenches, and pits;
(2) the type of drill holes used such as open-hole percussion, reverse circulation, or
diamond drill holes;
(3) the drilling equipment used;
(4) the sampling conditions such as the presence of highly fractured rock or
groundwater; and
(5) sample collection procedures (Core recovery or the sample weight should be
recorded. Geologic logging of the geologic characteristics of the samples should be
performed. Sample preparation and assaying procedures are critical. The related quality
assurance and quality control program is a fundamental element in the process).

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Geologic Control of Mineral Resource Estimation
✓ The nature of exploration information and the systematic manner in which it is obtained during detailed exploration and evaluation.
✓ The understanding of the geology in and around a mineral deposit.
✓ Geology affects the estimation procedure in a variety of ways that can be considered under several general and overlapping topics, as follows:
1) Geologic mapping and general geologic history. 2) 3D (geometric) modeling.
3) Ore deposit (genetic) models. 4) Mineralogic attributes. 5) Continuity (Spatial Variability) of grade.
“Geological maps are used in planning future exploration, directing development work and coordinating
Geological Mapping stoping” (Faddies et al., 1982, p. 43).
✓ Factual geologic information is obtained from surface rock exposures, trenches, drill core or cuttings, and
underground workings is the base from which a 3D image of a mineral deposit is developed.
✓ Geologic information is normally recorded on maps and cross sections at a scale appropriate to the aims.
Property geology might be mapped at a scale of 1:5,000, whereas mineral-deposit geology might be
mapped to a scale of 1:1,000 or even more detailed.
✓ The types of information that are recorded and displayed on maps include:
Detailed geologic plan of the open pit at Endako porphyry-type
(i) Rock types: Rock composition influences reactivity to molybdenum mine, central British Columbia. Note the different
mineralizing solutions and controls response to deformation. trends of principal veins from place to place in the deposit (i.e.,
different structural domains with gradational boundaries) and
Rock types (including mineralized ground) are one of the most premineral and postmineral dykes. Mineral zoning (not evident
fundamental pieces of geologic information; their chemical and on this diagram) is emphasized by a pyrite zone along the south
physical attributes and age relations provide the basic margin of the pit. After Kimura et al. (1976)
framework for understanding the geologic history of an area
(e.g., pre-ore and post-ore dykes or veins).
(ii) Faulting: Faults disrupt and complicate the lithologic record.
The ages of faults are important: premineralization faults
might be mineralized; post-mineralization faults might
disrupt a primary deposit and form a boundary across which it is
inappropriate to extend grades for block estimation purposes.
(iii) Folding: can provide ground preparation for some types of
deposits (e.g., saddle veins) and can disrupt a preexisting
mineralized zone extensively to produce a complex geometry. In
the case of shear folding of a tabular deposit, mineralization in
the fold limbs can be greatly attenuated, whereas a substantial
and augmented thickness can be present in the crests of folds.
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iv. Fracture/vein density and orientation: Sites where fractures have
controlled mineralization spatial density and evidence of preferred
orientation provide insight into localization of ore and preferred directional
controls.

iv. Evidence of primary porosity/permeability: Permeability for

mineralizing fluids can be controlled by structure [cf. (iv)] or by lithologic
character (e.g., reactive carbonate beds or breccias with substantial
interconnected porosity).

iv. Successive phases of mineralization: Many deposits are clearly the

product of more than one phase of mineralization. Sorting out the
characteristics of each phase (i.e., understanding the paragenesis of the
mineralization) and determining the extent to which various phases are
superimposed spatially (i.e., through detailed geologic mapping) important
to mineral resource estimation.

✓ Mineral deposits commonly are localized in highly altered areas that have
undergone extensive deformation or metamorphism; consequently, Cross-section shows the conjugated symmetric shear zone pattern
recognition of important pre-, syn-, and post-ore features can be attributed to coaxial deformation.
complicated and difficult to interpret without the guidance of more widely Structural controls on gold-quartz mineralisation within the Bendigo–Ballarat
based geologic information. Zone of the Victorian goldfield: upright folds disrupted by concordant and
discordant reverse faults with associated extension fractures spur veins , saddle
reefs and dilational jogs.
✓ Some mineral deposit might be modestly affected by regional metamorphism,
or extensively recrystallized in a contact metamorphic aureole associated with
a later intrusive body. An example is the Faro Camp, Yukon, where several
deformed and metamorphosed, shale-hosted Pb–Zn deposits occur in
different positions relative to metamorphic grades such that some deposits
are more coarsly recrystallized than others. So, a thorough understanding of
the regional and local geology, including details of structural, metamorphic,
igneous, and sedimentologic history, provide the basis for confidence in
making the many geologic decisions required in the more detailed physical
modeling of a mineral deposit.
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General Geometry of A Mineralized/Ore Zone
✓ The geometry of a mineralized zone and associated rock units generally is illustrated on a
series of cross sections or plans in a systematic fashion.
✓ Cross sections generally coincide with drill sections
but in some cases, cross sections might be
interpolated between drill sections and arranged
perpendicular to the principal direction of geologic
continuity of the deposit under investigation.
✓ The conceptual model of a mineral deposit changes in
response to additions to the geologic information
obtained during exploration and development.
✓ Geometric definition of a mineralized volume is
controlled by knowledge of the internal character of
the mineralization, a principal goal of detailed
deposit evaluation commonly referred to as
delineation. Extensive sampling is required during
delineation, and geologic characteristics provide the
principal control in sampling design, including
support, number, and disposition of samples.
✓ Samples are examined for geologic information,
assayed, and bulk density, for example, is an essential
variable for converting volume to tonnes and can vary
extensively within and between ore types.
✓ Physical characteristics (schistosity, fracture
density, etc.) of ore and wallrocks can have a
dramatic impact on dilution.
✓ Indirect indicators include water loss during
drilling (indicating the presence of major structural
weaknesses) and rate of penetration of drills (related
to physical strength of rock).
✓ Geology and detailed sampling thus can be seen as a
classic “feedback” situation (cf. Grace, 1986).
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“Assay values alone can never represent the compositional, structural and textural nature of the valuable minerals in a deposit”
Mineralogy (Kingston, 1992, p. 49).
✓ A detailed mineralogic study of a mineral deposit provides insight into mineral assemblages; relative abundances of minerals; and spatial
variations in the form of mineralization, grain size distributions, nature of mineral intergrowths, host rock variability, and so on.
✓ All of these can have significant bearing on mineral Resource estimation because they affect metal recovery and operating profits and
contribute to an understanding of short-range continuity of various types of mineralization. Rock Alteration Alteration Mineral-
Colour Texture
Grain
✓ Textural data should include routine information about average grain size, grain size Type Type intensity ization Size
distribution, grain shape, nature of gangue– grain boundaries, and types of intergrowths. VI AC 1 Mt G2 ah fg
✓ There are numerous examples in the literature of the importance of mineralogy in relation to VI AM 3 Py G3 ah fg
ore reserves. Gold shows 2 principal types are identifiable through mineralogic investigation VI AN 2 Mn G4 ah fg
– free-milling and refractory, both of which can be represented in a single deposit. VI BI 1 G5 ah fg

✓ Refractory ores, which contain much of the gold as small grains encased in minerals such as pyrite
and arsenopyrite, are of particular concern because the small grains are difficult to expose to chemicals
(e.g., Na or K cyanide) for dissolution. Hence, high metal recovery can be difficult or impossible.
✓ Additional benefits of mineralogic studies (e.g., Kingston, 1992; Gasparrini, 1983) of gold deposits
include the following:
(i) Recognition of cyanicide minerals, such as pyrrhotite, which react with cyanide solution and thus
increase the use of chemicals in the concentration process.
(ii) Recognition of oxygen-consuming minerals (e.g., orpiment, realgar, stibnite) that leave the pregnant
solution deficient in oxygen, thus inhibiting Au dissolution by cyanides
(iii) Identification of Au minerals that are weakly soluble or insoluble in cyanide solution (e.g., Au
tellurides, Ag-rich electrum) and hence are not recovered by cyanide treatment
(iv) Recognition of carbonaceous material (e.g., graphite) that absorbs cyanide solution in important
quantities.
All of these problems lead to higher than necessary operating costs, with the significant effect of increasing
the cutoff grade.

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Geological Models & Domains Domain contains
consistent Domain with
✓ There are much geologic information is gathered during the (homogeneous) a single
investigations performed at different stages of a mining project. geology grade
population
And the level of detail in the geologic description of a deposit
should increase as the project advances through its different
stages.
✓ These information is used to understand the genesis of the mineral
deposit, so it should explain the exploration model of the ore
deposit.
✓ Geologic investigations for resource development should
concentrate on defining mineralization controls.
✓ Economic factors are the most important ones affecting the
decision of whether or not to proceed with further geologic Histogram of data
investigations; therefore, most geologic work is orientated towards with mixed
populations
finding more mineral resources, and to some extent to more
detailed general exploration.
✓ The data are subset within different geological domains.
These domains may be based on a variety of geological controls Multiple Domains contain
such as structure, mineralogy, alteration and lithology. The (heterogeneous) geology

estimation domains are sometimes based on combinations of

two or more geologic variables, for which a relationship with grade
can be demonstrated.
✓ For example, in the case of an epithermal gold deposit, an
estimation domain can be defined as a combination of
structural, oxidation, and alteration controls.
✓ Each domain is characterized by more-or-less uniform geologic
characteristics. The boundaries between adjacent domains can
be sharp or gradational and either smoothly or highly irregular.
✓ The determination of the estimation domains to use is based
on geologic knowledge and should be supported by extensive Cross sections of the Boss Mountain molybdenite
statistical analysis (exploratory data analysis, EDA), including mine, central British Columbia, showing three
variography. geologically distinctive domains of mineralization
(i.e., breccia, stringer zone, and high-grade vein).

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