EDITED BY
M. K. G. Whateley & P. K. Harvey
Department of Geology
University of Leicester, UK
1994
Published by
The Geological Society
London
THE GEOLOGICAL SOCIETY
The Society was founded in 1807 as The Geological Society of London and is the oldest geological society in the
world. It received its Royal Charter in 1825 for the purpose of 'investigating the mineral structure of the Earth'.
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Definitions
RIDDLER,G. What is a mineral resource? 1
ARMITAGE, M. G. & POTTS, M. F. A. Some comments on the reporting of resources and
reserves 11
JAKUBIAK,Z. & SMAKOWSKI,T. Classification of mineral reserves in the former Comecon
countries 17
Data
GRmBLE, P. D. Fault interpretation from coal exploration borehole data using SURPAC2
software 29
HATTON,W. INTMOV; a program for the interactive analysis of spatial data 37
NATHANAIL, P. Reserve assessment of a stratified deposit with special reference to open-
ast coal mining in Great Britain 45
Deposit variability
NOTHOLT, A. J. G. Phosphate rock: factors in economic and technical evaluation 53
BELL, T. M. & WHATELE¥, M. K. G. Evaluation of grade estimation techniques 67
DOWD, P. A. Optimal open pit design: sensitivity to estimated block values 87
SCOBLE, M. & MOSS, A. Dilution in underground metal mining: implications for grade
control and production management 95
SIDES, E. J. Quantifying differences between computer models of orebody shapes 109
Finance
GORMAN,P. A review and evaluation of the costs of exploration, acquisition and develop-
ment of copper and gold projects in Chile 123
O'LEARY, J. Mining project finance and the assessment of ore reserves 129
Case histories
DOWD, P. A. The optimal design of quarries 141
AL-HASSAN, S. & ANNELS, A. E. Geostatistical estimation of manganese oxide resources
at the Nsuta Mine, Ghana 157
ANNELS, A. E., INGRAM, S. & MALMSTROM, L. Structural reconstruction and mineral
resource evaluation at Zinkgruvan Mine, Sweden 171
ARTHUR, J. & ANNELS, A. E. The application of geostatistical techniques to in situ
resource estimation in the sand and gravel industry 191
CAMERON, R. I. & MIDDLEMIS, H. Computer modelling of dewatering a major open pit
mine: case study from Nevada, USA 207
CRUMP, L. A. & DONNELLY, R. Opencast coal mining; a unique opportunity for Clee Hill
Quarry 219
BARRY, J., GUARD, J. & WALTON,G. Database management at the Lisheen deposit,
Co. Tipperary, Ireland 233
MITCHELL, C. J. Laboratory evaluation of kaolin: a case study from Zambia 241
O'LEARY, J. Cia Minera Los Pelambres: a project history 249
Preface
The theme of this volume is Mineral Resource various institutions, in conjunction with the
Evaluation. The chapters cover a wide range of financial organizations should set up an inter-
activities in this field and they describe some of national commission to recommend a standard
the methods that are currently in use to help in nomenclature with recognized definitions. As
the evaluation of mineral resources, including recommendations they would not be enforce-
exploration drilling, sampling, resource estima- able, but companies, Governmental organiza-
tion, mine design, financial evaluation and mine tions and individuals could then compare their
sampling and grade control. Case histories of preferred way of describing resources to the
mineral resource evaluation are also described, recommended nomenclature and at least sensible
with examples from all over the world, including and meaningful comparisons could then be
Canada, USA, Chile, Ghana, Sweden, Zambia, made.
Ireland, and of course, UK. The editors are particularly grateful to those
One notable aspect of this volume is the companies and organizations who provided
number of chapters which deal with mineral support for this volume either directly or
resource definitions. A mineral resource is a indirectly through their demonstrations of soft-
means to an end not an end in itself. The aim is ware, publications or services. In particular, they
to develop a mine which will maximize the Net would like to acknowledge the following:
Present Value (NPV) for the present share-
holders. It is therefore important to define Golder Associates Ltd
resources sufficiently accurately to convince the Datamine International
banks to lend the necessary 75-80% of the Hall & Watts Systems Ltd
money required for the capital expenditure to Pergamon Press
develop the mine. It would appear that the J. H. Reedman & Associates Ltd
banks are the final arbiters and maybe it is they Northern Exploration Services
who should be telling the mining companies how Crowe, Schaffalitzky & Associates Ltd
they should be describing their resources. Cambridge University Press
Perhaps the mining industry, through their Water Management Consultants Ltd
Michael K. G. Whateley
Peter K. Harvey
What is a mineral resource?
G. P. R I D D L E R
There has been much debate about the nomen- For the purposes of this paper the distinction
clature used when classifying mineral resources. between the classification of resources and
This has continued in the mining press recently reserves is made as follows. The term resources
following the publication of the latest attempt at refers to mineral deposits which can or at some
defining resources and reserves by the Institution time in the future may be mined economically.
of Mining and Metallurgy (IMM 1991). The term reserves is generally considered to
Mining has become a global business meaning represent that portion of resources the presence
that individual multinational mining companies of which is geologically assured and can be
operate in many different countries. Mineral mined economically now. Determination of
resource development has in recent years opened reserves would normally require a multidisci-
up to such companies in the former Soviet plinary feasibility study. Since the level of data
Union and Eastern Europe. The approach to required for determining reserves and resources
mineral resource classification, criteria and differs and the two classifications are used for
nomenclature still varies considerably from different purposes, the separate terms are fully
country to country (Armitage & Potts, this justified.
volume; Jakubiak & Smakowski, this volume).
In this era of global communication there is a Quantitative studies
need for some form of standardization.
It has always been important to distinguish Mineral resource evaluation and classification is
between reserves and resources. This paper deals one of a whole spectrum of quantitative studies
particularly with resource classifications because which have been an adjunct to decision making
resource assessment is a primary function of the for a long time. When considering how the
Minerals Group at the BGS. Some reference to approach might be harmonized between coun-
mineral reserves classification is made in this tries it is worth considering the findings of
paper to demonstrate their relationship to operational management research projects com-
mineral resources but mineral reserve classifica- pleted outside the minerals industry on the
tion is essentially the responsibility of mineral a p p r o a c h to quantitative studies ( H u x h a m
deposit developers and should be carried out at 1987).
the time an investment is made. This research suggests a staged approach
From Whateley, M. K. G. & Harvey, P. K. (eds), 1994, Mineral Resource Evaluation IL"
Methods and Case Histories, Geological Society Special Publication No. 79, 1-10.
2 G.P. RIDDLER
START
/ ,,.,,,,,
,,,,, .-'- Modelling-I~terpretati"'""""-'"'"..
oni
[ Dat'i" i i~;blem
• . - g ~
which provides a logical framework. Some and development policy, infrastructure and
relatively straightforward, obvious, but often other criteria would have to be added for
neglected guidelines emerge indicating how such reserve classifications (Riddler 1988).
studies may improve the potential for success in Problem structuring. This is the stage where
project implementation. These guidelines indi- the end-use must be considered and appropriate
cate how the quality of mineral resource data collection put in hand and can involve a
evaluation and classification may be improved wide range of specialized multidisciplinary input.
so as to avoid implementation failures at the The optimal approach will be chosen through
project development stage. consideration of various alternatives. It is
All quantitative studies start with the defini- probable that in many cases a particular
tion of the requirements of the study which are development project will not proceed as a result
governed to a great extent by the proposed end- of the output from this stage.
use. There are four main stages to quantitative Data anMysis/estimation/modelling/interpre-
studies, data collection, problem structuring, tation. This can involve a broad range of
data analysis/estimation/modelling/interpreta- techniques being applied to the data including
tion, and implementation/classification, all of statistics, simulation and linear programming.
which are interactive (Fig. 1). It is important that such techniques are
Data collection has been recorded since properly defined and explained because non-
biblical times, the Book of Numbers, appro- specialists can be led to assume that the
priately enough, describing population census, sophistication of a statistical technique ensures
used at the time for taxation or military service. the reliability of the inferences it provides. The
In the minerals industry we have become right questions should be asked and the answers
familiar with the use of sampling for assay and questioned as more information comes to hand
mineralogy by channelling, trenching or drilling through the interactive process.
as the means of data collection. Of course while An early example of this stage comes from the
this may be adequate for resource classification, work of John Graunt, a seventeenth century
additional qualitative and quantitative data on draper, who was probably the world's first
the external environment such as capital, labour, statistician. He was the first to be recorded as
commodity markets, local economics, planning making reasoned estimates on the basis of a
WHAT IS A MINERAL RESOURCE ? 3
specified method mainly because of a lack of these may be at the earliest opportunity so that
accuracy in previous classification in the data. resource and reserve estimates may take these
The requirement for his study had the added into account.
impetus in that the end-user was the King who Keep the implementation phase in mind from
wished that a weekly watch be kept on the rise in the start. That is, what is the end-use proposed
Plague deaths in the city of London so that he for the study, who is to be using it, where and
could receive early warning to decamp to the when? For example, some of the common uses
relative safety of the countryside (Kennedy of mineral resource and reserve evaluation data
1983). are given in Table 1.
In the minerals industry, this stage is applied
to the estimation of reserves and resources. Use Table 1. Some uses of mineral resources evaluation
of the results of this by non-specialists such as data
accountants, lawyers and planners is increasing.
Since the estimations have a direct bearing on Company annual reports
the commercial viability of mineral development Strategic planning
projects, and there is now legal precedent for
such viability to be taken into account in • exploration
planning decisions in UK, it is important that • development
• mineral supply
the limits of these estimations are clearly • location of resources of critical metals
understood.
Implementation/classification. Once data Investment planning
have been collected and estimates made,
reserves and resources can be identified and • bankable documents
classified. Implementation of mineral develop- • asset valuation
ments based on data models and this classifica- Awareness of mineral endowment
tion can then take place.
It is well known that implementation of Attracting inward investment
mineral development projects can fail because
inadequate attention is paid to some factor or
other during the process of estimation and Decide on the emphasis and level o f detail.
classification of reserves and resources through For example, is a resource assessment or a
the inadequacy of the approach or the level of reserve estimation required? The reserve estima-
data used to distinguish between them. tion requires much more detailed information.
Decide on the suitability o f effort on data
analyses for the purpose at hand. For example,
Avoiding project implementation failure
detailed mineralogy may be required for reserve
Based on such a staged approach to quantitative estimation on complex enriched copper deposits
studies, operational management research find- but not necessarily for resource assessments.
ings indicate that by following certain guidelines Keep models simple and be aware o f their
at the data~estimation~modelling~interpretation inadequacies and shelf-life. For example, about
stage, implementation failures may be avoided. AD 50, the Roman author Pliny records a site
The guidelines highlighted by the research can specific model for classification of reserves at
be related to minerals industry activities as one prospect, using the orientation of the deposit
follows. as a criterion. He stated that all easterly trending
Ensure that all relevant lines o f communica- deposits were profitable (Agricola 1556). This
tion relating to input data are kept open. For was probably perfectly adequate 2000 years ago
example, geologists may have the major input to for a specific local small-scale operation but is
a resource assessment but other disciplines such perhaps not a model which would have wide-
as metallurgy, mining engineering, mineralogy, spread application now.
environmental science or economics come into As t e c h n o l o g y and knowledge advance,
play when reserves are being estimated. models necessarily become more complex, but
Involve those who commissioned the study or they should still be clear, understandable to the
will use any product o f the analysis phase. The user and continuously reviewed.
end-user should be involved because the require- The qualitative external environment (Fig. 1)
ments of the study may change as it evolves. For can have a significant impact on the outcome of
example, local planning authorities may impose a quantitative study. If for example it changes or
local constraints and conditions on a develop- is not accounted for during the data analysis/
ment and it would be prudent to find out what estimation/modelling/interpretation stage of the
Table 2. A comparison of major resource classification systems
study then inadequacy and failure at implemen- investment required, a clear knowledge of how
tation will result, rendering the whole quantita- the mineral quantities are estimated, how
tive study useless. classifications are defined and what these mean
A good example of an external environment is essential. The problem is that there are many
factor on minerals industry activity is the effect different national approaches to the classifica-
that designated planning constraint areas may tion of mineral resources which are inconsistent
have on the classification of mineral resources or and of differing standards.
reserves. To illustrate this point a comparison of major
In the U K constraints on mineral related resource classification systems is given on Table
developments include national parks, urban 2. The opening up of Eastern Europe and the
areas, green belts, sites of special scientific former Soviet Union adds another dimension to
interest, national nature reserves, areas of nomenclature and classification criteria (Jaku-
outstanding natural beauty, agricultural land biak & Smakowski, this volume). Such a variety
and so on. These all affect planning consent of nomenclature for what may be equivalent
decisions. The impact of such constraints is classifications of reserves and resources begs the
illustrated by U K fuller's earth reserves. Re- question 'What is a mineral resource?'.
serves (1991) with planning consent amount to While the process involved in the data
0.78 million tonnes which represents only about analysis~estimation~modelling~interpretation
28% of what could be classified as a reserve. stage has to vary since the data are site/
72% of the 'available' fuller's earth is without technology/time specific, there is certainly scope
planning consent and must be classified as a for a harmonization of the nomenclature used to
resource as this amount although it may be describe the resultant classified categories of
mined economically, is not available to be mined mineral resources after that stage is complete.
nOW.
The point here is that no matter how sophis- Reserves
ticated the model for classifying reserves may be
it is only those reserves with planning permission Because of environmental planning constraints
that can sustain production now and it is only and the uncertainty over the issue of extraction
these that can be truly classified as reserves. permits, the classification of sustainable reserves
By adopting some form of standard approach, is getting more difficult.
methodology or framework that can be recog- For example, in U K the proposed Mineral
nized and understood by various users along the Planning Guideline (MPG6) for the aggregates
lines indicated by the operational management industry which is currently at the consultation
research into the approach to quantitative stage provides two options, the status quo and
methods, some of the more obvious problems Option 2, which proposes a 20% reduction in
can be anticipated. Resource and reserve aggregate production, a halving of the Company
estimates and classification may be improved land banks from l0 to 5 years (that is, halving
therefore and this will assist the successful reserves with planning consent).
implementation of mining projects by increas- Option 2 could be expected to force up prices
ing the quality of strategic management deci- and encourage the use of aggregates from
sions at all levels. superquarries in Scotland or elsewhere as well
as recycling and use of waste materials. On the
other hand it raises questions as to how much of
Approach to classification of resources and these alternative resources could be converted
into reserves because of external factors such as
reserves
planning and environmental constraints in the
Resources alternative supply areas as well as transportation
costs.
For the mineral supply process to continue it is Special interest groups can stop mineral
important to have a knowledge of available d e v e l o p m e n t projects after permitting, so
resources in particular regions. At a company should reserves only be classified after produc-
level such information is critical for decision tion commences?
making on worldwide exploration programmes Classifcation of reserves therefore has to be
and for strategic planning decisions which a dynamic process, with volumes switching in
address resource replenishment requirements and out of the demonstrated resource according
(Riddler 1988). to prevailing conditions at the time. Regardless
In view of the importance of these decisions of such classification, it should be possible to
with regard to the normally high level of envisage standardization of nomenclature.
6 G.P. RIDDLER
Classification and nomenclature: present and The latest initiative is being implemented
under the auspices of the CMMI (Council of
future Mining and Metallurgical Institutions) which
So what is happening to address the problem of has set up a working party to seek to establish a
such a varied nomenclature (Table 2)? Codes, set of definitions of reserves and resources for
guidelines and definitions for mineral resources international use.
and reserves abound and there is still much
scope for moving towards a common nomen- Resource assessment case history
clature.
The USBM/USGS between 1973 and 1980 The major input to resource assessments can
(McKelvey 1973; USGS 1980) produced a reasonably be expected to come from geologists.
resource/reserve classification system and subse- This case history relates to phosphorite deposits
quently in 1986 produced guidelines which were in the northern region of Saudi Arabia. The
broadly adopted by the minerals industry. strata comprised a layered carbonate sequence
Variations of this have followed. with three major phosphorite horizons. The area
In 1988 (with an update in 1992), the assessed was 107 000 km 2.
Australian IMM and the Australian Mining Data were collected from outcrop, trenching
Industry Council published their code followed and drilling.
by Guidelines in 1990 (Aus IMM 1988, 1990,
1992). In 1991, the SME published broadly
similar guidelines (SME 1991). Approach
At the Prospectors and Developers Interna-
tional Convention in Toronto in April 1993 the The general approach adopted for this resource
CIM announced that it was to produce its report assessment included:
on classification by mid- 1993.
The CIM has consulted many stakeholders. • compilation of historical and new drilling
Its system of classification will be designed to: and trenching data;
• preparation of contour plans of thickness,
• cover economic/non-economic criteria; grade, accumulation and overburden
• make allowance for commodity price thickness;
fluctuation; • definition of mining parameters
• have flexibility to allow reserves to move overburden thickness
in and out of resource categories; grade
• encompass all external environmental deposit thickness
criteria; stripping ratio;
• base resource/reserve classification on a • a literature search on resource assessment
feasibility study; nomenclature; the definitions used were
• utilize terminology from the Aus IMM, based on the most common relevant usage,
IMM, SME and AIME. and derive from the mineral endowment
Together with the Aus IMM and the SME concept of Harris and Agterberg (1981)
which are the professional bodies in currently and the resource classification system used
significant mining countries, the CIM are by USBM/USGS (1980)--the former
moving towards a standardized system of avoided economic issues and the latter
nomenclature which will have measured, indi- was widely used in the world mineral
cated, and inferred resources and proven and industry; the USBM/USGS system had
probable reserves. Along with the attendant been in use for some time and its
guidelines these appear to meet most require- advantages and limitations are realized
ments including US Stock Exchange Commis- and reported in the literature--one such
sion regulations. Another common feature is limitation being the lack of indication of
that all systems require a multidisciplinary mineral availability; this system, however,
feasibility study for the conversion of resources was primarily designed for resource assess-
into reserves with the consideration of economic, ment;
mining, metallurgical, marketing, environmen- • the definition of geological and chemical
tal, social, governmental factors, as well as terms;
statements on grade and dilution. • establishment of criteria for the resource
This of course raises the question as to who classification such as
judges the quality of the study and determines minimum grade (based on beneficiation
when there is enough information. technology)
W H A T IS A M I N E R A L R E S O U R C E ? 7
MINERALENDOWMENT
MINERAL
TOTALRESOURCES OCCURRENCES
IDENTIFIED UNDISCOVERED
DEMONSTRATED Hypothetical Speculative
MEASURED 1 INDICATED INFERRED
in in
ECONOMIC N R V E S INFERRED
known undiscovered
ii~i SUB-ECONOMIC
MINERAL ENDOWMENT
I
I ]
Total Resources Mineral Occurrences
P
F
Hypothetical Speculative
l
! I Increasing
Demonstrated Resources Inferred Resources Geological
Assurance
. . . .
Fig. 3. Hierarchy of the resource assessment produced for each phosphorite member.
The way forward This paper is published with the permission of the
Director of the British Geological Survey.
More information is required to classify mineral
reserves than mineral resources which involves
greater expense. Companies therefore will only References
define mineral reserves required to maintain AGRICOLA,G. 1556. De Re Metallica. [Translated by
production over a fixed forward period, which is H. C. Hoover & L. H. Hoover, Dover Publica-
relatively short. Mineral reserves are therefore tions Inc, New York, 1950].
perceived by the public as being short term, ARMITAGE, M. G. • POTTS, M. F. A. Some
limited and running out, which is not the case, comments on the reporting of resources and
because they usually form only a small part of reserves. This volume.
the overall mineral resource inventory. This is a AIMM/AMIC 1988/1992. Australian Code for Re-
porting o f Identified Mineral Resources and Ore
view expressed by the International Council on
Reserves. Report of the Joint Committee of the
Metals and the Environment (Crowson 1992).
Australasian Institute of Mining and Metallurgy
ICME point out that the confusion in the and the Australian Mining Industry Council.
distinction between mineral reserves and re- 1990. Guidelines to the Australian Code lbr
sources has led to the misguided public percep- Reporting o f Identified Mineral Resources and
tion that the world is running out of its mineral Reserves. The Joint Committee of the Australa-
resources. This is leading to international sian Institute of Mining and Metallurgy and the
policies which put more stress on protection Australian Mining Industry Council.
and conservation of mineral resources rather CROWSON, P. 1992. Mineral Resources: The InSnitely
Finite. The International Council on Metals and
than supporting more economical, environmen-
the Environment.
tally efficient methods of exploration, produc- HARRIS, D. P. & AGTERBERG, F. P. 1981. The
tion, use, recycling and disposal. appraisal of mineral resources. Economic Geol-
In conclusion, therefore, the importance of ogy, 75th Anniversary Volume, 897-938.
standardizing mineral resource and reserve HMSO 1982. Select Committee on the European
classification nomenclature must be stressed so Communities: Strategic Minerals: Session 1981-
that it may be more easily understood by users 82 20th Report.
and the public perhaps by adopting an approach HUXHAM, C. 1987. Quantitative M e t h o d s Unit 1.
similar to that suggested in this paper. University of Strathclyde Graduate Business
It is time for the minerals industry worldwide School.
IMM 1991. Definitions o f reserves and resources. The
through its professional bodies, to pursue and
Institution of Mining and Metallurgy.
co-ordinate efforts and arrive at a common KEYNEDV, G. 1983. Invitation to Statistics. Basil
approach to the classification and a consistent Blackwell, Oxford.
nomenclature for mineral resources so that the MCKELVEY, V. E. 1973. Mineral Resource Estimates
public no longer has to ask the question 'What is and Public Policy. US Geological Survey Profes-
a mineral resource?'. sional Paper, 820.
10 G. P. R I D D L E R
RIDDLER, G. P. 1988. Corporate Strategy for Mineral Deputy Ministry for Mineral Resources Technical
Exploration. MBA Dissertation, University of Record RF-TR-06-2.
Strathclyde Graduate Business School. SME 1991. A Guide for Reporting Exploration
--, VAN ECK, M., ASPINALL, N. C., McHUGH, J. J., Information, Resources and Reserves. SME
PARKER, T. W. F., FARASANI, A. M. & DINI, S. Planning Committee: Mining Engineering.
M. 1986. Sirhan-Turayf Phosphate Project--An USGS 1980. Principles o£a resource/reserve classilYca-
Assessment of the Phosphate Resource Potential tion for minerals. US Geo!vgical Survey Circular,
of the Sirhan-Turayf Region. Saudi Arabian 831.
S o m e c o m m e n t s on the classification o f resources and reserves
M . G. A R M I T A G E & M . F. A. P O T T S
Steffen Robertson and Kirsten UK Ltd, Summit House, 9-10 Windsor Place,
Cardiff CF1 3BX, UK
Abstract: Resource and reserve classification systems are used by stock markets,
investors, mining companies etc. in order to make their decision making apparently
more soundly based. In view of the subjectivity of geology and diversity of mining
methods, in producing and adhering to such systems those charged with the
responsibility of estimating reserves run the risk of inadvertently misleading these
people and of risking their own integrity. This is not to say that we should not have
classification systems at all, but more that they need to reflect the reality as much as
the requirement. There are additional problems at present because of the number of
classification systems currently in use and the widely different uses to which they are
commonly put. The worldwide acceptance of a single terminology of resource and
reserve classification would go some way to reducing these. Different classification
systems may be required for different applications. In addition, a move to a more
systematic quantitative assessment of confidence is proposed which may reduce some
of the problems inherent in such an imprecise science.
The Institution of Mining and Metallurgy of mineralization, that the systems attempt to
(IMM) has recently (1991) produced definitions describe. In attempting to cover so much with so
and guidelines for the reporting of resources and few categories the systems depend heavily on the
reserves. The system of resource and reserve judgement of the user. The constraints imposed
classification proposed joins a growing list of by the systems often force reporters of reserves
similar such systems already in use. The two to use hybrid terminology or to ignore them
most commonly used systems at present are that altogether. More importantly, even with the best
proposed in 1980 jointly by the Bureau of Mines and most honest will in the world, and even if
(USBM) and the US Geological Survey (USGS), the system being used is stated, the results are
and that proposed in 1989 by the Australasian open to misinterpretation and potential misuse.
institution of Mining and Metallurgy (AIMM) This paper describes the workings of the
and the Australian Mining Industry Council USBM/USGS, A I M M / A M I C and I M M sys-
(AMIC). Other systems in regular use include tems and discusses the differences between them
those proposed by the Association of Profes- and the potential problems with their use and
sional Engineers of Ontario (APEO), the Society interpretation. The U S B M / U S G S and A I M M /
for M i n i n g , M e t a l l u r g y a n d E x p l o r a t i o n A M I C systems are discussed as they are
(SMME), and the United States Securities and probably the most widely known of the systems
Exchange Commission (SEC), respectively. currently in use; the I M M system because it is
All these systems use slightly different the latest offering by a professional body. The
terminologies, but, more confusingly, give paper does not seek to comment as to which of
slightly different definitions for the main terms these is the 'better' system; they are all similar in
common to each, i.e. 'resource' and 'reserve', style and preference is largely individualistic.
and also 'measured', 'indicated' and 'inferred'. Instead it concentrates discussion on specific
The result is that figures assigned to these terms problems facing both the user, in trying to
in international literature, feasibility studies, and adhere to any such system, and the interpreter
consultants and company annual reports are (who may only have a limited knowledge of
unclear unless the system being used is stated. geology or mining) in trying to understand the
This is, unfortunately, rarely the case. meaning of the resulting classification. Although
More fundamental problems rest with the the paper stops short of proposing an alternative
diversity of mineral deposits, the progressive system, it does introduce a new approach to the
stages of exploration and exploitation, the subject which the authors consider would reduce
different mining methods, and the varying some of these problems.
degrees of confidence in continuity and grade
From Whateley, M. K. G. & Harvey, P. K. (eds), 1994, Mineral Resource Evaluation II: 11
Methods and Case Histories, Geological Society Special Publication No. 79, 11-16.
12 M.G. ARMITAGE & M. F. A. POTTS
Measured
Economics
I Increasing
l
geological
confidence
(APEO) and the Society for Mining, Metallurgy, a planning point of view, that a mine is able to
and Exploration (SMME), for example, use quantify the tonnages of ore that are in the
similar terms (e.g. ore reserve, geological different stages of preparation for mining i.e.
reserve, in situ reserve and mineable reserve; 'ore blocked out', and 'ore developed'. This was
and inferred, indicated and measured resources, covered by abandoned terminology such as 'ore
and probable and proven reserves respectively) in sight' which was in use when diamond drilling
but in a slightly different way again. was not the prevalent exploration technique but
The result is that reported resources and is not covered by modern systems such as those
reserves are at best unclear and at worst discussed in this paper here which all now use
misleading unless the system being used is their extremes at the exploration phase (using
stated. As mentioned in the introduction to previous systems there would be no 'proven' or
this paper, this is rarely the case as can be seen in 'possible' ore until mining commenced). This is a
a quick scan through any of the many mining weakness of such systems as despite this they are
publications. The problem would clearly be best still commonly used on operating mines for this
addressed by the adoption of one system, such as specific purpose. This results in the situation that
has been done by the Australian Stock Exchange blocks of ground classified as 'proven' in
and more recently the London Stock Exchange. feasibility documents are reclassified as 'prob-
There is little doubt that adoption of the able' on the commencement of mining, and/or in
A I M M / A M I C system by the Australian Stock the generation of locally adapted hybrid systems
Exchange has improved the standard of the of classification.
reporting of resources and reserves in that The use of such a few categories to cover a
country as can be seen in mining publications, wide variety of mineral deposit types and mining
in feasibility documents and in company annual methods causes additional problems. The classi-
reports. fication of vein gold deposits is a very different
In this regard, the authors randomly selected business to that of limestone deposits. It is hard
Annual Reports from 15 UK listed companies to see how a deep sub-outcropping shear zone
all of which reported and discussed resources gold deposit, which is planned to be mined from
and reserves. Of these only two indicated which a shaft, can have any 'proven' or 'measured'
classification system they had used (in both cases tonnage even using the newer definitions of the
the A I M M / A M I C system), two had instead systems discussed here until it has been exten-
described and used their own systems (for sively exposed in underground development.
example type 1 reserve, type 2 reserve etc.) and This is supported by the major difficulties with
the remainder gave no indication of resource or geological continuity recently experienced by
reserve definitions at all. mines such as Big Bell in Australia, and
Mining is a worldwide activity and many Goldstream, Nickel Plate and Silbak-Prem in
companies run, or fund, operations in different Canada (H. G. Taylor, pers. comm.). This
continents as well as different countries. Yet despite the owners of these properties having
though the problem has been addressed by completed sufficient studies to attract the
several national institutions and to some extent development capital required.
locally controlled, there can be little doubt that It is, however, also hard to envisage many
the terminology used worldwide for the report- investors risking money in a venture that at the
ing of resources and reserves is in a confused end of its full feasibility study has no 'Proved
state. It is the opinion of the authors that what is Mineral Reserve' or 'Proved Ore Reserve'. It is
required is one internationally accepted system necessary therefore for classification systems to
of resource and reserve classification. take account of the ability of different deposits
to achieve the various requirements of different
Problems with usage categories while an alternative would be to have
different systems for different types of deposits
The USBM/USGS, A I M M / A M I C and IMM and mining methods.
systems can be used to classify deposits in the In summary, therefore, it is regarded by the
process of being evaluated. They can be used to authors as important that any proposed inter-
classify tonnages of prospective mines from the national classification system should cover the
early exploration stage to the production of a requirements of all the uses to which it is likely
full feasibility document. In addition the USBM/ to be put and not just the requirements of
USGS system covers unexplored and even deposits during the build-up to mining. It should
unknown deposits and this can be used to also be able to be used to classify meaningfully,
classify a country's mining potential. and reflect confidence in the profitability of
In addition to the above it is important, from mining of, all deposit types using any mining
CLASSIFICATION SYSTEMS 15
style. At the same time it must still be simple, The effect of this can be reduced by the inclusion
and capable of being clearly understood by all of details regarding the geology and sample
those who are likely to use it. coverage. More fundamentally, however, as such
detail will be left out at some point and anyway
Problems with subjectivity is not meaningful to all parties concerned, there
may be some room for reducing the problem by
The three systems discussed here subdivide to a either increasing the number of categories or
similar degree. Each uses a handful of phrases to alternatively by making classification systems
describe confidence in the presence and econ- more end-use specific. Planned underground
omics of exploiting any type of non-petroleum mines for example have different requirements
mineral deposit (though the A I M M / A M I C regarding geological continuity than open pit
system has a separate terminology for coal mines. An alternative would be to introduce a
deposits) using any type of mining method. In way in which uncertainty regarding geological
so doing each has trodden a fine line between and grade continuity and its relevance to the
over-categorization and under-distinction. The proposed mining method could be ranked in a
result in all cases is a subjective system that relies more methodical manner. This is discussed more
heavily on experience and knowledge in its use. in the next section of this paper.
All the systems contain 'grey' areas within which
different geologists, in trying to adhere to any Summary
one system (even using the same information),
would classify the same body differently depen- Three main causes of concern with current
dent on their view of the geological continuity. classifications of resources and reserves have
This is not a function of the respective ability of been discussed. These are:
different geologists but rather because geology
is not a subject that can be easily boxed and • that there are several classification systems
because with mineable reserves one is predicting currently in use all of which use the same, or
not measuring. It is consequently hard to make very similar terminology, but all of which
realistic comparisons for quoted resources and give these terms significantly different
reserves for different deposits unless they have definitions;
all been produced by the same person or team or • that the most commonly used classification
they are supported by details regarding the systems were not designed to cover all the
geology and the extent of sampling. Clearly to situations in which they are now used;
simply report a resource or reserve figure and a • that, by attempting to categorize an area
corresponding classification is insufficient, and as subjective as geology, a certainty and
when used in this way, because of the subjectiv- distinction is implied t h a t c a n n o t be
ity of geology and the broadness of the current justified nor would be likely to be repeated
systems, a classification system may become a if the same work was u n d e r t a k e n by
liability. Despite this, the facility to compare different people.
deposits and rank anticipated benefits and
returns on investment is a major reason for These areas of concern can cause problems
having the classification in the first place. enough when viewed in isolation but when
Suggestions that geostatistical techniques on combined, however, the problems multiply. For
their own can quantify error and form the basis example, if a proven, probable and possible
of classification are flawed in most cases. reserve is reported without reference to either a
Certainly they can quantify grade uncertainty given system or the amount of supporting
and to a limited extent geological uncertainty, evidence, it can simply mean that in the view
but only down to the spacing for which there are of the writer the first reported tonnage is
data (i.e. the drillhole spacing). Where an considered better known than the second which
underground mine is being planned this is often is in turn better known than the third. In reading
insufficient to determine the variations in the report, not only do we not know on what
geometry and grade at the detail required to basis the given tonnages were allocated to the
predict mineability on a stope scale. various categories, we do not even know what
There will always be a subjective element in these categories mean.
the reporting of resources and reserves, yet in The first two areas of concern could be
placing too much emphasis on broad classifica- reduced if a single terminology for resource
tion systems we run the risk of both losing good and reserve classification which covered all the
information and of implying a confidence to the requirements of governments, mining compa-
resulting classification that cannot be justified. nies, banks and shareholders could be inter-
16 M. G. ARMITAGE & M. F. A. POTTS
nationally agreed. Different classification sys- each perceived area of uncertainty is given a
tems may be required for different applications quantitative rating reflecting its potential impact
but if so these should be compatible not on the calculated resource or reserve. The system
contradictory. The third area of concern is would need to give examples for each rating. For
inherent to the subject. A suggested method for example, regarding continuity a shear-zone gold
reducing this subjectivity is given in the follow- deposit in an Archaean greenstone belt inter-
ing section. sected by drillholes only would be an example of
a higher uncertainty rating than a chromite seam
An alternative approach to classification cropping out on the Bushveld Complex or the
Great Dyke. The respective ratings could then be
Most proposed classification systems, as well as cumulated (in a manner reflecting their relative
defining terms and categories, also highlight importance) and the sum used as the basis for
those aspects that should be considered by 'the categorization. A degree of subjectivity would
responsible person' in both calculating and still remain, but in asking all the relevant
categorizing the deposit grades and tonnages. questions, and giving examples for each rating,
These include the reliability of the geological the system would force all issues to be addressed
data and interpretation; the perceived geological and enable 'the responsible person' to estimate
continuity and deposit type; the drilling techni- better how the various factors relate to his/her
que and core recovery; the type of sampling, the deposit compared to how they do at other
sampling coverage and the reliability of the deposits elsewhere. The resulting classification
sampling method; the sample preparation and should then be more robust. There may also be
sample analyses; the variability of the assays; the an additional benefit here in that the classifica-
planned mining method and impact on reserves tion system could be used to target the
of mineability and selectivity; the impact of any exploration strategy better to the requirements
geotechnical problems; the processing route and of the type of deposit and planned mining
expected recovery; the total costs and conse- method.
quent likely cut-off grade; and land ownership The production of such a system would
aspects and mineralized extensions. require input from experienced workers in all
A major problem for 'the responsible person' fields of relevance to resource and reserve
when categorizing a calculated tonnage and classification. The result may be a reduction in
grade is in quantifying the effect, and relative the subjectivity of the process and an improved
importance, of all these on the confidence in the ability to compare resource estimates produced
figures calculated. In shear-zone gold deposits by different groups.
the major uncertainty may be geological con-
tinuity; in complex massive sulphide ores and
refractory gold ores, the recovery may be more References
uncertain; in highly folded and faulted ores then
mineability may be the key. Where 'the AUSTRALASIANINSTITUTE OF MINING AND METAL-
responsible person' has experience of many LURGY 1989. Australasian Code for Reporting
different deposit types there is more chance Identified Mineral Resources and Ore Reserves.
that more accurate estimates of these effects will Report of the Joint Committee.
be made. Where 'the responsible person' has MCKELVEY, V. E. 1972. Mineral resource estimates
and public policy. American Scientist, 60, 32-40.
more restricted experience then there is more THE INSTITUTIONOF MININGANDMETALLURGY1991.
potential for large errors of judgement. Ore and Reserves Working Party Report.
A solution may be to incorporate these US BUREAUOF MINES & US GEOLOGICALSURVEY
aspects more directly into the classification 1980. Resource/Reserve Classification System. US
process. The authors envisage a system in which Geological Survey Circular C831.
Classification of mineral reserves in the former Comecon countries
Z. J A K U B I A K 1 & T. S M A K O W S K I 2
From Whateley, M. K. G. & Harvey, P. K. (eds), 1994, Mineral Resource Evaluation IL" 17
Methods and Case Histories, Geological Society Special Publication No. 79, 17-28.
18 Z. JAKUBIAK & T. SMAKOWSKI
borne in mind that this practice has always been mineral deposits were divided into four groups
a matter of inventory rather than profit. on the basis of geological structure and complex-
With the adoption of the system in other ity of mineralization and into five groups on the
Comecon countries, it was inevitable that basis of a deposit type. In other countries,
additions and amendments had to be made in including Poland and Czechoslovakia, mineral
various countries to adopt the system to deposits were divided into three groups depend-
differing local conditions and requirements. ing on the size and on variations in form,
Generally, such amendments were minor and composition, type of mineralization and grade.
concerned only those categories of reserves that These groups were defined as follows.
were defined with a lesser degree of confidence, Group /--deposits characterized by simple
i.e. potential reserves. However, effects of these geometry and structure, uniform mineralized
additions and amendments have accumulated widths, generally in excess of an economically
over the years eventually creating significant marginal width, and a fairly uniform distribu-
divergences both in the terminology and in the tion of grade and deleterious constituents, e.g.
classification criteria. Numerous meetings and simple undeformed or weakly deformed strati-
conferences were held in an attempt to standar- form deposits or large intrusive massifs of a
dize the approach to potential reserves, the most uniform composition.
important of which was probably the conference Group II~deposits characterized either by
in Leningrad in 1976, but they have failed to simple structure but showing irregular distribu-
achieve their desired effect. Even the USSR, the tion of grade and deleterious constituents or by
creator of the system, finally revised its own complicated structure but characterized by
original classification and introduced an regular distribution of grade and deleterious
amended system in 1981 (Diatchkow 1993). constituents; mineralized widths in such deposits
Whilst divergencies developed in the classifi- commonly approach the marginal economic
cation of potential reserves, definitions of the width, e.g. stratiform deposits of variable width
main four categories of reserves, A, B, CI and or irregular mineralization contained in medium
C2, and their use have remained more or less as and small intrusive bodies.
they were originally expressed throughout the Group III--deposits characterized by com-
former Comecon countries. plex geometry, highly variable widths and/or
In preparing this paper, the writers relied grades and other deposits that do not fall in
mainly on Polish sources of information. Groups I and II, e.g. highly deformed and
variable stratiform deposits, polymetallic vein
Definitions deposits, weathering residues, detrital deposits,
salt domes, etc.
The Polish mining legislation defines the mineral
deposit as a natural or artificial mineral Principles of reserve classification
concentration exploitation of which can bring
an economic benefit (Z6ttowski 1964). The The reserve classification system of the former
economic benefit is not understood as the Comecon countries is based on two reference
ability to generate a profit but includes social axes (Table 1). The abscissa, from right to left,
benefits. indicates increasing degree of reserve identifica-
The term 'reserve' denotes a mineral inventory tion. The ordinate, going upwards, indicates
that comprises identified quantities of mineral increasing possibility of economic utilization of
(as defined above), some of which may be reserves.
economic and workable at a given time, and As seen in Table 1, geological reserves,
partly identified and/or postulated quantities of understood as the total mineral reserve inven-
mineralization which either cannot be recovered tory, are divided along the abscissa into
by known mining and processing methods or documented and prospective reserves, with the
because their geological occurrence is not latter subdivided into prognostic and theoretical
adequately known. The term 'resource' has not reserves. The key elements and definitions are as
been used despite growing pressure to restrict the follows.
use of the term 'reserve' to identified reserves Documented reserves. Reserves of which
which are subject to economic feasibility studies. parameters, including quantity, grade, quality
To determine the amount of data necessary to and depth of occurrence have been investigated
assign reserves to various categories prior to an on a specified grid base and which are appro-
investment decision, mineral deposits were priately documented. The density of the grid is a
divided into groups reflecting the form and vital element guiding the scope of investigations
complexity of mineralization. In the USSR required for various categories. Strict regula-
RESERVE CLASSIFICATION IN COMECON COUNTRIES 19
GEOLOGICAL RESERVES
DOCUMENTED PROSPECTIVE
I PROGNOSTIC THEORETICAL
A D2 D3 E
WORKABLE
(INDUSTRIAL)
UNWORKABLE
©
e~
tions have been passed in this respect and must D2--reserves inferred from indications and
be adhered to under all circumstances. Equally surface showings, such as outcrops, aur-
strict requirements have been maintained for eoles of disseminated mineralization, al-
reporting standards and documentation required teration haloes etc. and quantified on the
for each category. The documented reserves are basis of statistical analysis of reserves
subdivided into categories A, B, C1 and C2. known in close proximity;
Categories A and B are defined with a very high D3--unquantified reserves inferred by drawing
degree of confidence and fully assessed from the analogies with distant producing areas on
economic point of view. In fact, requirements for the basis of indirect indications alone.
the delineation of reserves in category A are
impossible to fulfil even at working mines until Theoretical reserves. Prospective and unquan-
reserves are nearly exhausted. It is a common tiffed reserves that are expected to occur in a
practice, therefore, to quote blocked out reserves given geological environment but that have not
as A + B . Reserves in categories C1 and C2 yet been discovered in the area studied or in its
require further work to improve the determina- proximity. Possibilities of the occurrence of such
tion of their parameters and quality as well as reserves are deduced from theoretical considera-
further work to determine the choice of appro- tions taking into account lithological, structural,
priate methods of access, exploitation and metallogenic and other relevant data. These
processing. This is particularly relevant to C2 reserves are denoted by the letter E.
reserves that are determined from isolated In the former USSR and in the majority of
openings and/or from widely spaced boreholes other countries that adopted this classification,
or outcrops. prospective reserves are divided into categories
P1, P2 and P3. Prognostic reserves in categories
P r o g n o s t i c reserves. Prospective reserves that D1 and D2 are equivalent to categories P1 and P2
are inferred from indirect indications, showings respectively and combined categories D3 and E
and isolated sampling (Ga/kiewicz 1962). They are roughly equivalent to category P3.
include three categories of reserves: The divisions along the ordinate apply to
D~--reserves inferred from indications (geo- documented reserves and to prognostic reserves
chemical, geophysical etc) and/or show- in categories D1 and D2. Factors governing the
ings and, sometimes, identified by isolated main division into economic and uneconomic
drillholes but not sufficiently to be included reserves are called criteria of balance and take
in category C2, e.g. a salt dome identified into account current mining methods and
by geophysical indications and confirmed practices, processing technology and economic
with a single borehole; feasibility criteria. Another set of criteria is
20 Z. JAKUBIAK & T. SMAKOWSKI
I /f-i'/o,~o~opi~aS-~/ /
I ------~a>,.....................
, , ~, ,<,~/ :.,--...i-'-/--4477
..........
....%
lYiego~ra
/ " //I o If
I ~-"~~'~--~---"'<'~.-:_.=I~
' z,4 ~tcoecaK/g.6tOJ
I
~ ERGIE _
~'.-..~.
~.-. . ~, 8¢0a ;,
_.--: ~ . :.-. : :. : ' - ~ ~ < -- ,: %7,....: . : . ~ ~ _ , ~
... zZ~Dzk:-::-~,o~?o~T.t, s:.~. ~:o. w./¢c~. . - . . . ° . •
N¢ /~oom
5W
3oo
LEV.~ 200
P!
m 100
LE V._ID_
Cz .~ C2 -100
LEV. L3
Fig. 2. Delineation of reserves in the Silver Vein, Ro~fiava, Slovakia (courtesy of Ing J. Poprefiak).
Table 2. Requirements for density of observation points for mineral reserve evaluation in Poland, after Zrltowski (1964), updated by the
Central Geology Authority regulations of 1980
Mineral Distance between observation points in metres
deposit Group
C2 C1 B A
of 2m. A factor of 0.1 was used to derive relevant to exploitation and treatment. The
tonnages, based on experience showing that one appraisal must be based on trial production or
in ten drillholes in similar areas is likely to ongoing production and on process testwork on
intersect mineralization satisfying these criteria. bulk samples. Reserve blocks must be bordered
Three areas, shown in Fig. 1 as A, B and C, were by outcrops, drillholes and workings at strictly
selected for more detailed exploration. Prognos- specified intervals.
tic reserves in Area A were assigned to category It is essential that the delineation of reserves is
D2 and prognostic reserves in Areas B and C, conducted on a specified grid. Detailed guide-
adjoining documented reserve areas and already lines in this respect have been legislated (Table
explored to a degree, were assigned to category 2). Although based on experience and common
DI. All prognostic reserves inferred between sense, a forced adherence to these guidelines has
depths of 500m and 1000m were assigned to been criticized and resisted. Even stricter legal
category D2. requirements regulate the type and scope of
Category C2--preliminary appraisal based documentation required for each category of
on: data obtained from geological maps; reserves, defining even such details as scales of
examination of outcrops and existing workings; geological maps required for each category of
geophysical interpretation; assays and small- reserves (zr~towski 1964).
scale sample testing; and, if justified, prelimin- A very positive feature of this classification is
ary technological and engineering studies. the fact that the divisions between various
Boundaries of the deposit are delineated by reserve categories have been designed with the
geological mapping and geophysical surveys and specific aim to control a decision tree in the
interpolated and/or extrapolated from isolated sequential process of mineral exploration,
outcrops, workings and drillholes. The degree of evaluation and mine development. Thus, deli-
identification is such that various interpretations neation of an area of prognostic reserves D
of the deposit are possible. If applicable, requires a decision whether to undertake
protective pillars should be outlined and detailed exploration, which, if successful, results
reserves contained in them estimated as a in the delineation of reserves in category C2; this,
proportion of the total reserves. Hydrogeologi- in turn, requires a decision whether to undertake
cal, engineering and other conditions should be preliminary evaluation. If successful, this eva-
outlined in general terms. An example from luation work results in upgrading all or part of
Slovakia (Fig. 2) shows a longitudinal section of the reserve to category C1 and prompts a
a complex Cu-Ag vein with subordinate anti- decision whether to undertake detailed evalua-
mony and mercury evaluated by diamond tion and to select parts of the deposit for such
drilling and underground development on the investigation. Conceptual studies of the deposit
spacing required for the delineation of reserves development and reserve utilization as well as
in category C~. However, as the variability of technical and economic preview of a mine design
width and grade proved to be more complex are carried out as part of the work programme.
than anticipated, reserves could only be classi- This phase, if successful, results in the delinea-
fied in category C2; a rim around it was tion of reserves in category B, which justifies the
annotated as a P~ resource, a step below last pre-production phase involving the selection
category C3. of workable reserves on the basis of a mine
Category Cl--appraisal assuring approxi- design and a long-term production scheduling.
mate elucidation of points (1) to (6) and all
other factors that are likely to affect the Criteria of balance
possibility of mining the deposit. Reserve
perimeters are delineated from outcrops, work- Most of the current reserve inventories in the
ings and drillholes laid out on a suitable grid, former Comecon countries predate 1992. Feasi-
with verification carried out to check geological bility criteria that defined conditions at which
interpretations and analytical results. these mineral reserves could be regarded as being
Category B--deposit delineation enabling suitable for commercially justified exploitation
unambiguous interpretation of points (1) to are called the criteria of balance (Z61towski
(6). The appraisal is based on geological data 1964; Kozubski 1965). They were formulated
collected on an infill grid, systematic analytical either for groups of deposits sharing the same
work, pilot plant testing and, in the case of characteristics or for single deposits by teams of
shallow or already exploited deposits, also on advisers working for ministries and other
trial mining and processing. government departments responsible for the
CategoryA--detailed deposit delineation and development of projects. Work of such advisers
unquestionable elucidation of all factors that are was regulated by a complex set of official
24 Z. JAKUBIAK & T. SMAKOWSKI
Table 3. Feasibility criteria for copper deposits in the Lubin-Glog6w district of Poland (from Wanielista & Butra
1991)
Depth Cut-off Minimal average metal Minimal metal content
interval grade content in a drillhole in a deposit
intersection or in or
underground profile in a documented area
(including Ag) (including Ag)
(m) (%Cu) (%Cu) (%Cu)
instructions, directives and guidelines designed • minimum average grade and/or maximum
to standardize the criteria used. In Poland, it was average content of deleterious constituents;
accepted to use the so-called simplified criteria • sample grade cut-off and maximum allowed
for the definition of undeveloped economic contents of deleterious constituents;
reserves in categories D2, D1 and C2 and, • weighted grade cut-off and m a x i m u m
occasionally, in C1 and the so-called detailed allowed contents of deleterious constitu-
criteria for the definition of undeveloped ents per intersection;
economic reserves in categories C,, B and A • requirements for physico-mechanical and
and for the definition of all categories of reserves chemico-technological characteristics of a
in working mines (Rutowski 1967). At various mineral deposit;
times preference was given either to criteria • minimum width;
based on capital expenditure requirements and • maximum depth of occurrence for mineral
payback period, i.e. mine development would go deposits c o n s i d e r e d for u n d e r g r o u n d
ahead when the d o c u m e n t e d reserve was mining and maximum stripping ratio for
adequate to generate revenue for the capital deposits considered for opencast mining;
expenditure repayment (ZdItowski 1964), or the • maximum thickness of barren and low-
criteria based on parameters of investment grade intercalations.
effectiveness and a marginal reserve value
(Wanielista 1976) or to criteria based on the Examples
so-called cost limits represented by maximum
production costs when getting the mineral from (1) Criteria of balance developed for copper
domestic sources (Poprefiak 1993a, b) or to deposits in the Lubin-Gl'og6w district of Po-
criteria determined by the condition that the land, established by a team working on behalf of
output value per unit must be at least equal to the Minister of Smelting in January 1978, were
current unit production costs (Wanielista & translated into three copper cut-off grades
Butra 1991). All these criteria are now being shown in Table 3 and a minimum mineralized
superseded by the use of discounted cash flow intersection width of not less than 2 m (Wanie-
techniques. lista & Butra 1991).
Criteria established in the 1960s were often (2) Hard coal deposits in the Upper Silesian
too lenient resulting in large funds having been Coal Basin are included in economic reserves if
authorized for the evaluation of deposits of they occur at a depth of less than 1250m and
dubious economic potential, i.e. low-grade iron satisfy a number of other criteria, including inter
ores in central Poland or small brown coal alia a minimal caloric value of 3000 kcal k g ' , a
deposits in the west of Poland. Increasingly more marginal width of 0.8 m, less than 1.3% S, less
stringent criteria have been applied since those than 20% ash, thickness of barren intercalations
days with a result that they have often been less than 5 cm.
tougher than criteria used for comparable
projects in free market economy countries. Criteria of workability
Regardless of the type of criteria used, the
results are converted to several easily understood Criteria of workability are determined for
parameters, the most i m p o r t a n t of which economic reserves in specific deposits that are
include: under exploitation or being considered for
development. These criteria are designed on the
• minimum quantity of economic reserve; following grounds:
RESERVE CLASSIFICATION IN COMECON COUNTRIES 25
• method of the deposit development; exploitation will not cause any unacceptable
• technical constraints of selected mining environmental changes and all changes
methods; resulting from exploitation and related
• technical constraints of selected processing activities will be acceptable or can be
and beneficiation methods; rehabilitated on completion of the exploita-
• technological and product quality norms; tion.
• environmental constraints of the mining,
benefication and the use of the mineral and Precision of resource estimates
its products and conditions of disposal and
utilization of waste; The most fundamental weakness of all mineral
• detailed economic analysis, involving fore- resource classification systems is the uncertainty
cast mining, processing and marketing costs as to how precise and accurate resource
and the forecast product price range over estimates are. Since the accuracy can only be
the relevant period; fully assessed through reconciliation with mine
• utilization of associated minerals and output records, i.e. after given blocks have been
protection of unworkable and uneconomic mined out, it cannot be defined during the
reserves. deposit evaluation contrary to recent claims by
some geostatisticians. It is therefore the question
The criteria are defined by an organization of precision that is more appropriate and should
carrying out the feasibility study in a document be addressed by every classification system.
called Deposit Development Project. The docu- Whatever calculation method is used, the total
mentation must be opinioned by the Commis- error is a function of three types of errors,
sion for Mineral Reserves and then submitted namely: (1) errors made in physical measuring of
for approval to the Ministry of the Environ- various parameters; (2) methodical errors in-
m e n t a l P r o t e c t i o n , N a t u r a l Reserves and herent to the calculation method used; and (3)
Forestry. errors resulting from the assumption that global
To ensure that economic reserves are reclassi- parameters of a deposit can be determined from
fied as workable, the feasibility study must spot measurements. Unfortunately, no calcula-
demonstrate that the following conditions are tion method can satisfactorily define the total
met: error. The problem has been discussed by Ga/-
kiewicz (1975), who suggested that the total
• mining and processing costs for a given error does not exceed 10% for estimates of
portion of a deposit or the average costs for reserves in category A, 30% for reserves in
the whole deposit, if it is to be mined category B, 50% for reserves in category C~,
simultaneously at different places, will not 70% for reserves in category C2 and 90% for
exceed the value of output; reserves in category D1. According to Niec
• quality of the ore and products of its (1982), however, precision of estimates attained
beneficiation will satisfy the consumer's in practice has actually been higher: 15% for
requirements; reserves in category B, 25% for reserves in
• geological and technical parameters of the category C1 and 40°/0 for reserves in category C2.
deposit, i.e. width, structure and continuity, The writers have found an interesting example
properties of wall rocks, gaseous conditions showing how prognostic reserves, estimated in a
etc. will not contravene with the require- number of brown coal deposits in the west of
ments of the selected mining method; Poland in 1981, compared with C1 and C2
• exploitation will not contravene with the reserves documented in the same deposits in
health and safety regulations in force; 1991 (Table 4).
26 Z. J A K U B I A K & T. S M A K O W S K I
Table 5. Correlation with the USGS and USBM 1976 classification system (after Smakowski 1978)
TOTAL M I N E R A L RESOURCES
N
z
~A
> 0 ,i!iii!iili
l!iiji
i ii!iiliii,ii!tii i,,
z z
° ~ °
m ~
~- z
Correlations with other resource and reserve reserves may be more comparable to indicated
resources rather than to probable reserves. A
classification systems complication here is that some mineral deposits
Correlations with other systems are difficult are too complex to be documented in categories
due to the relatively complex structure of the higher than C1, or even C2, before a decision is
Comecon system. Smakowski (1978) has dis- made on their commercial development and
cussed this topic at some length and compared because of that they are after all more compar-
the Polish variant of the system to the American able to probable reserves as defined by the
classification as presented by the US Geological USGS system (Poprefiak 1993a). However, it is
Survey (1976). This is shown in Table 5. He accepted that portions of documented reserves in
concluded that although documented reserves A, category C2 that are delineated with a lesser
B, C1 and C2 are broadly comparable to reserves degree of confidence are similar to inferred
in proven, probable and possible categories, the resources. Prognostic reserves in category D1
correlation is complicated by the fact that present similar difficulties. Small portions of
categories C2 and D1 straddle the fields of these reserves correspond to inferred resources
probable and possible reserves. Thus, although and some to hypothetical resources. There are
reserves in categories Cl and C2 are in large part no problems with reserves in categories A and B,
comparable to probable reserves, some reserves which equate to proven reserves, and with
of category C2, which by definition are deli- prognostic reserves in category D3 and theore-
neated on the basis of results obtained from tical reserves E, which together equate to
isolated workings, drillholes and outcrops, cover speculative resources.
the field of possible reserves. Furthermore, Correlation along the ordinate is self-expla-
reserves documented in categories C1 and C2 natory provided it is realized that the more
often do not have precisely identified perimeters recent criteria of balance used in Poland and in
and require further investigations to enable the some of the other countries of the former
selection of appropriate methods of access, Comecon have generally been stricter than
exploitation and processing. Smakowski (1978) feasibility criteria used in the USA.
therefore argues that, in some cases, these Put in the context of the I M M definitions of
RESERVE CLASSIFICATION IN COMECON COUNTRIES 27
Table 6. Classification o f mineral reserves and resources introduced in Czechoslovakia, now in force in the Czech
Republic and Slovakia
RESERVES RESOURCES
ECONOMIC:
RECOVERABLE
&
NONRECOVERABLE
UNECONOMIC
resources and reserves, categories A and B may allows reasonable assumptions of continu-
be taken as equivalent to measured mineral ity between observation points;
resources, whilst categories C1 and C2 are • grade, technical characteristics and spatial
broadly comparable to indicated mineral re- distribution of different types of material
sources. Prospective reserves straddle the fields are determined from small-scale testing and
covered by indicated resources and mineral spatial distribution of useful and deleterious
potential. Industrial reserves are comparable to constituents is known;
mineral reserves as defined by the I M M • geological and geotechnical conditions
definitions. relevant to mining are interpreted from
exploration work and inferred by analogy
Outlook with similar deposits.
On 1 January 1992, Czechoslovakia officially Possible reserves (Z-3) must satisfy the
abolished the Comecon-type mineral reserve folowing conditions:
classification system and introduced a new • shape, dimensions, setting and internal
three-tier system. According to this new classi- structure are interpreted from geological,
fication (Poprefiak 1993 b), reserves are classified geochemical and geophysical data and
as detected (Z-I), probable (Z-2) and inferred from outcrops and isolated drillholes and
(Z-3) (Table 6). Undiscovered mineral deposits, exploratory workings;
the existence of which is assumed from show- • grade and technical characteristics are
ings, indications and by analogy with similar determined from small-scale testing or by
geological environments, are denominated as analogy with similar mineral deposits;
prognostic resources. • distribution of useful and deleterious con-
Detected reserves (Z-I) are those portions of stituents is known only approximately;
mineral reserves that satisfy the following • geological and technical conditions deter-
conditions: mining the way of reserve exploitation are
• shape, dimensions, setting and internal derived from isolated data and by analogy
structure are verified by exploratory work- with similar deposits.
ings;
• grade, technical characteristics and types of Poland is considering the introduction of a
material are defined by small- or large-scale similar classification system. The most favoured
testing and space distribution of useful and option is to combine categories A and B as
deleterious constituents is proved; reserves under exploitation, categories C1 and C2
• geological and geotechnical conditions as reserves before exploitation, categories D1
determining the way the reserve can be and D2 as possible reserves and categories D 3
exploited are proved. and E as resources.
Probable reserves (Z-2) satisfy the following
conditions: The authors express their gratitude to Ing J. Poprefiak
and Dr M. P. Martineau of Samax Ltd, who assisted
• shape, dimensions, setting and internal with original data from Slovakia, to Mackay &
structure are interpreted from geochemical Schnellmann for the permission to use its computer
and geophysical data and confirmed by facilities and to W. G. Yuill for his valuable comments
such amount of exploratory work which on various aspects of this paper.
28 Z. JAKUBIAK & T. SMAKOWSKI
P. D. G R I B B L E
Mining Technology Consultants and Associates, 113 Roskear Road,
Camborne, Cornwall TR14 8BY, UK
Abstract: The use of isopach or contour plans for geological surfaces as the basis for
fault interpretation of coal data, even when a dense drilling pattern has been applied,
is often unsatisfactory. These plans tend to 'smooth' or underemphasize the effects of
faulting, making assessment of the likely fault pattern difficult.
Within the SURPAC2Software system a series of modelling tools is available to assist
with this interpretation process. An appropriately oriented grid is overlain on a
digital terrain model (DTM) of the geological surface in question to regularize the
data. The dip between data points is calculated, and a model of dip change created
using the DTM method. A new contour model, which highlights trends in dip
change, is produced, clearly showing likely fault traces and throw. This model may be
sectioned to illustrate more graphically the disturbed and undisturbed areas. The
fault model is then used as the basis for interpretation, to be compared with other
models of the geology, and known local and regional faulting trends. Use of the
macro facilities within SURPAC2allows a series of surfaces to be rapidly analysed to
build up a picture of likely fault continuity and pattern within the succession.
Once the fault pattern is established, it can then be used elsewhere in SURPAC2for
further modelling and evaluation. Application can be simple, such as the formation
of boundaries of faulted areas for estimation of mineable coal resource. More
complex modelling can be achieved by interaction between geological surfaces and
the fault surfaces defined by the interpretation process. A complete model of the
faults and their impingement on the coal and associated layers is formed, for further
use within the SURPAC2design tools.
Emphasis in the use of computing software geological, quality (analytical) and survey data
today seems to be towards the 'need' for for any given hole, together with geophysical
three-dimensional graphical applications and and similar data as required. The borehole data
realizations. Whilst SURPAC2 possesses these may be represented graphically, and changes to
capabilities, this paper sets out to show the geological (or any other) data held in the
straightforward possibilities for day-to-day database interactively modified. This is of great
application of the software. Here the need is to assistance during geological interpretation, par-
be able to update and model data rapidly, ticularly for seam or layered deposits.
perhaps whilst in the midst of a drilling For the purposes of this modelling applica-
programme, as an aid to fault interpretation tion, the data are extracted on the basis of
from the exploration borehole data. The aim is geological codes as stored in the database,
to maximize the usefulness of the data obtained previously defined by the user. Extraction may
from the drilling programme, and to provide also be based on quality (i.e. value), area, or
clear guidance for continuation or extension of borehole type as suits the purpose. The main
such a programme. All the processes described data structure used by the program is the 3D
below are carried out entirely with the SURPAC2 string modelling system, as originally described
software, many of them lending themselves to by Porter (1979) and Miller (1987), and data are
automatic processing using the macro system extracted from the database in this form.
provided by the software.
Initial modelling
Methods
The data for a given surface e.g. base of seam,
Data storage are extracted from the database using the
appropriate geological code, with the data set
Borehole data in SURPAC2 is stored within a produced having the x, y and z coordinates for
relational database which contains all the the base of the chosen lithological unit. The
From Whateley, M. K. G. & Harvey, P. K. (eds), 1994, Mineral Resource Evaluation 11." 29
Methods and Case Histories, Geological Society Special Publication No. 79, 29-35.
30 P. D. GRIBBLE
..... I 4,¢ov=
10000N
3~87
45
41.34 28
34.10
3275 3;55 18
50.14
37
14 41.80
13 42.35 19 26
38.12 47.60 48.17 31
10 3,.50
44.75 34
17 42.94
9750N 46.~5- 48.52
25 42.45 38 39
53.33 50.04 54.2
30
12 115 20 44.88 33
44.43 11 50.76 54.44 48.75
50.26 32
16 56.21
2t 54.68 23 4
53717 24 7.17 58.35
61.30 40
~ 22 58.23
5 6 61.90 28
57.63
Fig. 1. Borehole layout with elevation values in metres above sea level for base of seam.
10000N ~'~
100001
8 I
37buE
10000N
t ~z~0E 10000iiI
24
~34.1 35rn
30 / / yfC,~2:9 ~
57.6
Fig. 3. Smoothed contours in metres above sea level for base of seam and borehole collars.
borehole locations and the z (elevation) values ' s m o o t h ' or underemphasize the effect of
for the example database are shown in Fig. 1. faulting, making assessment of the likely fault
This type of data is typically modelled as a pattern difficult. In this example, the results are
contour or isopachyte plan. Such a plan is far from conclusive and do little to assist in the
created by forming a digital terrain model siting of future boreholes.
(DTM), by the construction of triangles formed
on sets of three data points. In this example, Further modelling
each point is the co-ordinate of the base of seam
derived from the borehole data, and the resulting Further modelling is carried out using a series of
D T M is shown in Fig. 2. The method of the modelling tools available within SURPAC2 t o
calculation uses only those data points avail- assist with the interpretation process. This uses
able, no mathematical interpolation or the the following steps. Firstly, grids of points are
original data points takes place. The 'digital overlaid on the D T M of the base of the seam, to
surface' produced consists of a series of regularize the data set. It should be noted that,
triangular facets. This DTM may be used for a as described below, this is used in an inter-
variety of purposes, in this example, the creation polative process, and does not make use of
of the isopachyte plan. The contour lines are gridding algorithms. In order to analyse these
calculated from the DTM, using methods similar data fully, both an east-west and a north-south
to those used by hand to create footwall contour biased grid are employed. This means that in the
plans. The results, smoothed for presentation second step of the modelling process described
purposes, appear in Fig. 3. below, calculations between points on the grid
The use of isopachyte maps or contour plan of are either in an east-west or a north-south
a geological surface for the interpretation of orientation. The different bias gives quite
faults, even when a dense drilling pattern has different results dependent on the orientation
been completed, often produces unsatisfactory of the faulting pattern, as later demonstrated.
results. The plan shown in Fig. 3 tends to The process of overlay interpolates the relevant
32 P. D. GRIBBLE
.....
~ / DUI:: 4UUU~ 4z=~ 1000C
1
\, 'k1 °
/J~ 4o~
..... • i
I SURPACSOFTWARE INTERNATIONAL
i B A S E O F SEAM
3750E EAST WEST DIP ANALYSIS
L~ i CONTOURS
Scale: 1:21001 Plan No. I Date: ---
(a)
,~1oui¢
. . . . . . . . . .
! 4uuu~. . . . . .
~¢ou1¢
!i 10000N 1000¢
~ ' ~ _8o
\
i
J
i I
i
I SURPACSOFTWARE INTERNATIONAL
iS NORTHBASE OF SEAM
SOUTH DIP ANALYSIS
750E T4000E CONTOURS
cale:1:22001PlanNo. I Date:
(b)
Fig. 4. Contours of dip from (a) the east-west dip model and (b) the north-south dip model.
FAULT INTERPRETATION SOFTWARE 33
10000
(a)
3500
3600
3700 3800
] ~ ~ 3900 4000 4100
4400
(b)
Fig. 5. 3D view of sections taken through (a) the east-west dip model and (b) the north-south dip model.
34 P. D. GRIBBLE
elevation value at each grid point according to location finalized in the key layers. The model-
its position within the triangle in which it falls. ling process can then be modified to show the
The purpose of the grid is to give regular data pattern of faulting as it intersects with each seam
points whose elevation relates directly to the or layer, without the need to carry out the entire
original data set, but which give further process described above for each horizon. The
possibilities for modelling, including the meth- method used in this instance is to model the fault
od described here. Secondly, the dip (or slope if planes themselves as DTMs. These DTM planes
preferred) value between each of the data points are then intersected with DTM models of the
on the grid is calculated for both east-west and seam surfaces, and lines of intersection auto-
north-south orientations, i.e. in the east-west matically produced. These can then be used as
example, the calculation of dip is made between boundaries for other applications as described
one point and its neighbour to the east. The below.
value obtained is plotted at the first of the two
points. These values effectively show the change Presentation
in dip across the model, and the values for
change in dip are again modelled as a DTM, The three-dimensional model of seams and
from which contours of changing dip are faults, formed using a combination of the
produced as shown in Fig. 4a and b. methods described above, may be enhanced by
The models of dip change show a pattern of use of colour rendering techniques. This pro-
plateaux, being the unfaulted areas separated by vides a powerful aid to interpretation and
zones of rapid dip change, the possible location presentation of the geology of the deposit under
of faults. In this example Fig. 4a shows the evaluation. In addition, cross sections showing
disruption of the seam highlighted by the east- boreholes, geology and faulting can be produced
west analysis, whereas the north-south analysis, to complement the three-dimensional represen-
shown in Fig. 4b, fails to pick up the full extent tations.
of the probable faulting. Figure 4a and b thus
illustrates the differences between the east-west Resource estimation
and the north-south biasing of grid points, with
the east-west analysis providing the better tool The fault patterns created above can be used to
to assist with interpretation in this example. The define boundaries which are then used for
differences between the two different analyses volume and quality calculation within the
are further illustrated by producing cross model, typically in the undisrupted coal areas.
sections from the two DTMs of dip change. Areas of influence around boreholes defining a
The resulting three-dimensional views are shown resource estimation boundary can be modified
in Fig. 5a and b, where once again, interpreta- using the limits determined by the faulting, using
tion is much better served by the east-west a simple shape intersection process. Volumes
analysis. Figures 4 and 5 demonstrate that the may then be calculated using DTM surfaces or
technique quickly provides a basis for further sections derived from the DTMs, as preferred.
drilling and interpretation.
In practice, use of the macro facilities within
the software allows for rapid analysis of a series Mine design
of surfaces so that a picture of likely fault
continuity and pattern within the succession can In addition to assisting in fault modelling, the
be built up. The final model can then be models of dip change may also be used to
compared with known local faulting and determine appropriate mining methods as a
regional trends to confirm validity. deposit changes along strike or dip. This would
be achieved by defining regions, typically by
isopachs, where the seam dip becomes unaccep-
Further applications table for a given method.
The fault boundaries patterns may also be
Once a fault pattern has been established, used as an aid to pit design in two key areas.
further tools within the software can be applied Firstly, in defining zones in which a constant
to the data. face angle would be maintained during pit
generation, and secondly, as an aid to the
Three-dimensional modelling interactive design of bench outlines. The fault
zones defined could also be used in the
In a multi-seam deposit, the major faults will be determination of underground development
quickly determined and their orientation and scheduling for longwall production.
FAULT INTERPRETATION SOFTWARE 35
Conclusions References
The methods described here have been used MILLER, D. R. 1987. String and Block Modelling in
effectively to define the faulting pattern in a well Mine Planning. ln: Computers in Mine Planning.
drilled area. Major fault zones were highlighted, ACADS Seminar, Melbourne, Australia.
PORTER, J. R. 1979. String Ground Model Surveys--A
as opposed to earlier interpretations which
new role for the Engineering Surveyor. ln: South
showed only a series of faults, thus drawing East Asian Survey Congress.
attention to the potential problem areas. Over-
all, routine application of the tools available
within SuRI'AC2 to an ongoing drilling pro-
gramme can provide guidance for further
drilling, prior to utilization of more advanced
computer modelling techniques.
INTMOV: a program for the interactive analysis of spatial data
W. H A T T O N
Exploratory data analysis is a key step in that these samples can be grouped together.
understanding the underlying variability in any Murray & Baker's MWINDOW routine was
spatial data. Any technique which uses spatial applied successfully to British Coal Opencast
interpolation to describe and quantify a mineral (BCO) seam thickness and quality data, but
deposit needs to be carefully chosen to suit the needed its output re-directing for plotting to the
type of inherent variability and the type of US EPA public domain Geostatistical Environ-
mineral deposit. A thorough understanding of mental Assessment software (Englund & Sharp
the spatial variability will help the investigator to 1988). Each run of the program also needed user
choose the correct assumptions for the spatial input of the deposit limits, source data file and
model. A rapid detection of local anomalies is the neighbourhood box size. Modelling many
highly desirable in any set of modelling routines. surfaces was a time-consuming exercise with
A technique which has been used in explora- plotting comparisons difficult. The time restric-
tory data analysis of spatial data is moving- tion was viewed as an extreme limit to the
windows statistics (Isaaks & Srivastava 1989; effectiveness of the exploratory technique. A
Murray & Baker 1991). Moving-windows statis- routine called INTMOV was developed in Quick-
tics are simply the determination of any statistic BASIC 4.5, running on an IBM PS2 model 70,
within a local spatial neighbourhood across a which would reduce the user input time by
deposit. The simplest window one can compute reading repetitive data input from a scratch file.
and display graphically is a rectangle. Local data It was also designed to speed plotting by
are assigned to a particular window and the combining the plotting routines into the same
summary statistics are calculated. Plots of module.
summary statistics of windows may reveal The major aim of rNTMOV was to maximize
trends and anomalies in the data set. A very the exploratory analysis time by reducing user
useful application for this technique is to check input and also increase the exploration time for
for stationarity in a deposit. The most widely the same user activity. There was also a
used geostatistical estimation procedures use requirement to check for stationarity through-
stationary random function models. The deci- out the life of a current exploration exercise and
sion to view a particular sample data configura- from case history data from sites as a 'post-
tion as an outcome of a stationary random mortem' exercise. Studying plots of the window-
function model is strongly linked to the decision statistics versus the numbers of boreholes drilled
From Whateley, M. K. G. & Harvey, P. K. (eds), 1994, Mineral Resource Evaluation II: 37
Methods and Case Histories, Geological Society Special Publication No. 79, 37-43.
38 W. HATTON
. . . . . .
~I
0.36
I • I I
0.82
I I I I
OWl STATS.
/
1.40
I I
M.W. No. 1
Mean 0.82
S.D. 0.14
100m
M.W. No. 1
Mean 0.82
S.D. 0.14
L.__._'_____L2IIOm.~y.2OOm.i_.___.L..L_._......
-
0.36 0.82 1.40
iiiiiii::::i:::::i£iiiEiiiiiiiiiiiifiiii)i{)!£iiii)) WINDOW2 STATS.
M.W. No. 1
Mean 0.82
S.D. 0.08
: : : : : : ; : : ; : : : I I I I I I I
. . . . . . . . . . . . .
0.36 0.78 1.40
Fig. 1. Graphical output from INTMOV.An example of moving-windows statistics for coal seam thickness. Plan
view 1 shows statistics calculated at 100 m by 100 m box sizes. Plan view 2 shows statistics calculated at 200 m by
200 m boxes• Histograms of plan view 1 statistics, global statistics and plan view 2 statistics are shown from top
right to bottom right.
permitted BCO geologists to make more in- and the two moving-window computations. This
formed decisions on when to stop exploration was achieved by writing all the graphical output
programmes. to one graphics screen, subdividing 5 zones of
output (Fig. 1). Two plan views can be plotted
Programme design from the basal strip menu options MW1 and
MW2 respectively, shown in the top left and
It became obvious that an enhancement was bottom left of the screen output. The histogram
needed to integrate the plotting of window for moving-windows computation 1 is displayed
statistics into the routine to reduce the user in the top right comer, with the parent or global
keystroke requirement and also improve the population centrally below and the moving-
ergonomics of data input for the window windows statistic computation in the bottom
computations. The reduction in keystrokes was right of the screen output.
easily achieved by reading the seam quality and Very rapid comparisons of differing window
thickness data from an ASCII file containing the size computations can be carried out quickly.
input file name, coordinate limits and the The colour coding of each neighbourhood is
neighbourhood box sizes for the current run. plotted in relation to standard confidence
Maximizing the a m o u n t of moving-window intervals in the parent or global distribution.
output to the user for each run was more For example if the window mean has a value
problematical, in that comparisons of differing greater than the global mean plus two standard
window-sized computations needed to be made deviations, then the local window box is painted
in plan on the same graphical display, along with red on the graphics screen. The colour legend for
the histogram output for the parent distribution the local window colours is represented by grey-
INTERACTIVE ANALYSIS OF SPATIAL DATA 39
scale in Fig. 1. The actual screen output uses a The remaining design feature which needed
colour coding system allowing the user to to be addressed was to include a method for
quickly spot any local statistics which are retrospectively looking at site surveyed data
anomalous in relation to the global average of from the British Coal Opencast Site Survey
the deposit. Comparisons between output area 1 System (BCOESS) and comparing this with data
and 2 with differing n e i g h b o u r h o o d sizes imported from the British Coal exploration
can be made efficiently, helping to ascertain database Geomodel (Knight 1986). The key to
critical distances in the auto-correlation. Rapid these linkages had to be speed and ease of data
interactive graphical techniques have been transfer into INTMOV. The following section
applied to v a r i o g r a p h y with good effect describes how this was achieved.
(Bradley & Haslett 1990) using dynamic data
links from map to scatterplot views, rigorously Intmov: structure, import and export data
testing variogram models quickly. In a more
simplistic way INTMOV has achieved similar Data import into INTMOV can be from two
results by displaying several differing views of sources of data. Borehole exploration data can
the same data. be extracted from BCO's Geomodel relational
database and transferred into INTMOV via ASCII
I I
1 flat data files, similar in format to a GEOEAS
DAT files. Seam thickness or analytical data is
obtained in this manner. Working site data is
held in the BCOESS system as A u t o C A D
I I drawing files. Worked seam thickness data sets
can be exported from the drawing files into D X F
BCOESS DATA
files and converted into the same D A T file
structure as the converted Geomodel data sets
(Fig. 2).
Seam quality Seam thickness Output of the processed moving-windows
Fig. 2. INTOMVdata structure. Imported data can come statistics for each plan view is automatically
from two sources; exploration data and site survey displayed to the graphics screen or optionally
data. driven out to a D X F plot file, which then
All/Center/Dynamic/Extents/Left/Previous?Window/<S cale(X)>: e
Regenerating drawing
Command:
Fig. 3. Plotted output from INTMOVshown in AutoCAD. Plot of all window statistics for seam thickness. Plot
shows zoomed view of window-statistics demonstrating window mean, standard deviation and the number of
samples used in window calculation.
40 W. HATTON
!! i 1 1 1 1 1 i ii
1 --
[]
0.5 --
0
I00 200 300 400 500 600 700 800 900 1000
BOREHOLE NUMBERS.
Fig. 4. Winplot output. Window means and standard deviations are plotted versus borehole numbers from
retrospective subset sampling of the total borehole numbers.
is automatically picked up and processed by tively using the SUBSEToption. SUBSETallows the
AutoCAD when the user terminates the INTMOV investigator to take the full data set as it exists
routines (Fig. 3). and produce snapshots of the data and window-
statistics at any sequentially ordered subset
Sequential views of the exploration and site number. These subset values can be written to
data scratch file and subsequently plotted with a
routine WINPLOT (Fig. 4). The window means
The ability to look at an exploration programme and standard deviations can be viewed retro-
at various key stages with increasing sample spectively through a drilling campaign very
numbers is of prime importance to any geologi- quickly, using case history data if required.
cal sampler. Many geostatistical studies have
concentrated on using various statistics and
utility functions to ascertain when there has Case study: moving windows applied to UK
been sufficient sampling to describe with coal seam thickness data
confidence the underlying variability of the
deposit (Rendu 1970; Journel 1973; Brooker The routine was applied to many seam thickness
1975; Scheck & Da-Rong Chou 1983; Aspine & and seam quality data sets from the UK Coal
Barnes 1989; Whateley 1991). In most of these Measures. One example is documented here,
studies the exploration programme has been using seam thickness data from East Pennine
critically reviewed by plotting some statistic Coalfield.
versus the number of samples drilled, whether The data sets were recorded and input into the
it is the estimation variance or some utility based Geomodel database, from which they were
primarily upon estimation variance does not exported into the necessary format for Intmov
matter. The underlying concept is to review and processing. Moving-windows statistics were
view the exploration data at regular time calculated for consecutive batches of 100 bore-
intervals. INTMOV was designed to allow the holes throughout the exploration. Each batch
user to do this in two ways, firstly in a was incorporated into the previous sample
progressive manner and secondly retrospec- cumulatively.
I N T E R A C T I V E ANALYSIS OF SPATIAL DATA 41
Skewness : -•1392
Kurtosis : 4.2778
Histogram
Data f-de: unknown• dat
Statistics
N Total : 827
240. M Miss : 0
N Used : 827
¢-j
:1: s
•i•t Mean : .411
:~
t t .,~ Variance • .005
/t
160. r t ,'-1 Std. Dev : •070
~s
-/
I x /A x, % C.V. : 16.952
g :i
t~
FI
/A
¢'A Skewness : -.139
F.~ #',4 Kurtosis: : 4.277
y~ ,/ " /A
• t - -
¢i
I1 Minimum • .160
80.
• s/A 25th % • .370
Mediam : .410
"~' / A
75th % : .460
•]
Maximum : .700
¢t
.3 .6
Thickness
m.
WINPLOT OF SEAM THICKNESS - MOVING WINDOWS STATS.
-- o7
w i n d o w size : 1 0 0 m by 100m.
-.6
MEANS
1 1 11 11 1
-.1
.2
I IAND
ODEVIAiIONS
!S
i I I I
100 200 300 400 500 600 700 800
Numbers of boreholes
Fig. 6. Plot of the window statistics versus borehole numbers for moving windows statistics calculated at 100 m
by 100 m boxes.
i
0.18
~I I i i
0.41
l i I I
OWl STATS.
U7U~.--I i
M.W. No. 1
Mean 0.41
S.D. 0.07
i i
Mea
~ No. 1
0.41
S.D. 0.07
...... L__k_L_k..L__.L_._]_k_._k_i_k_k_L
.....
......
i i i MOVINGWINDO~2
9"'"i""-i----t'""~'""%'-"-'~-"'"~'""-!'"'-'~'"'"t'""!'"'"i ......
...... i - ~ - ; - ~ m ~ 2 0 ~ r ~ i i i ~ .....
0.18 0.41 0.70
WINDOW 2 STATS.
M.W. No. 1
Mean 0.39
S.D. 0.04
I I I I I I I
0.18 0.39 0.70
Fig. 7. INTMOV output for seam thickness. Plan view 1 shows statistics calculated at 100m by 100 m box sizes.
Plan view 2 shows statistics calculated at 200 m by 200 m boxes. Histograms of plan view 1 statistics, global
statistics and plan view 2 statistics are shown from top right to bottom right.
C. P. N A T H A N A I L
Wimpey Environmental, Hargreaves Road, Groundwell, Swindon, Wiltshire SN2 5AZ, UK
Abstract. The assessment of reserves in a stratified deposit should define the areal
extent of the mineral, the spatial variation of thickness and quality and the ratio of
mineral to waste. The assessment of reserves at opencast coal mines in Great Britain
also involves the estimation of the extent of areas where coal is absent or of reduced
quality due to old mining activity, washout, alteration by igneous intrusions, lime
burning and faulting. The most appropriate estimation technique will vary from site
to site and, within an individual site, from seam to seam. Conventional non-spatial
statistics can be used where the extent of areas of lost coal is not definable. Area-of-
influence approaches such as Thiessen polygons are routinely used to estimate the
spatial extent of old workings from point observations at boreholes. The use of
indicator kriging may provide a refinement to this deterministic approach. Delaunay
triangulations are used by popular mine design software for area and volume
calculations. Kriging may also be used to model the variation of seam thickness and
quality. Whatever method of estimation is used, poor quality input data will result in
poor estimates. Metadata such as how, when and by whom information was collected
should be used to decide whether or not a particular piece of information should be
retained. Experience shows that each site must be treated as a unique entity with
techniques and software being modified to suit the site circumstances. A black box
'expert system' approach would fail to identify site specific features and result in
misleading estimates.
The assessment of reserves at opencast coal sites contractual seam and details allowances for
in Great Britain is conducted by the following areas where coal is absent due to washout,
organizations for the stated reasons: burning, workings or faulting. The SEQ is
produced in 'slow-time' and is, in effect, a bill
(a) British Coal Opencast (BCO)--establish of quantities. The quantities therein may reflect
reserves; a conservative estimate in order to minimize the
(b) opencast contractors--price tenders for risk of claims or an optimistic estimate, perhaps
BCO sites; to emphasize the viability of the site Coal may be
(c) licensed operators--establish reserves at also recovered from seams not included in the
licensed sites. SEQ and an estimate of this non-contractual
coal is needed.
This paper concentrates on the assessment of Since the estimation exercise is being carried
reserves which may be conducted in a limited out by an organization other than the one
time frame during the tendering period for a responsible for the collection of the data, the
BCO site. Reserve assessments at opencast coal quality of the data has to be assessed in order to
site involve four phases: determine which data elements to retain and
which to discard. A discussion on data quality
(a) data preparation; in geographical information systems (GIS), used
(b) assessment of contractual and non-con- to assist in the evaluation of data quality is
tractual quantities of coal; followed by a description of the preparation of
(c) assessment of overburden quantities; data and a discussion on the relative merits of
(d) preparation of methodology to enable different methods of interpolation.
forecasts of coal output.
Data quality in geographical information
The schedule of estimated quantities (SEQ)
produced by British Coal Opencast defines the systems
quantities of coal to be recovered from each De Freitas (1993) p r o p o s e d the following
From Whateley, M. K. G. & Harvey, P. K. (eds), 1994, Mineral Resource Evaluation II: 45
Methods and Case Histories, Geological Society Special Publication No. 79, 45-52.
46 C.P. NATHANAIL
relationship as being of some use in designing Accuracy is defined as the closeness of results,
ground characterization programmes: computations or estimates to true values, or
values accepted to be true ( N C G I A 1990).
(What we need to know - (what we already Precision is defined as the number of decimal
know) = (what we do not know). places or significant digits in a measurement
( N C G I A 1990). GIS work at high precision,
To the above, Chrisman (1991), recognizing mostly much higher than the accuracy of the
that not all information is equally reliable or data.
useful, would add 'how do we know what we The N C G I A (1990) advise that positional
know'. accuracy be tested with reference to an indepen-
Chrisman (1983) defined data quality as dent source of higher accuracy such as a larger
fitness f o r use. Q u a l i t y is a f u n c t i o n of scale map, the global positioning system (GPS)
positional and attribute accuracy, precision, or raw survey data. They point out that evidence
resolution, currency, logical consistency, com- internal to the GIS, such as unclosed polygons
pleteness and lineage (Lyons et al. 1989; and lines which overshoot or u n d e r s h o o t
D C D S T F 1988; N C G I A 1990). The proposed junctions, may also be used. Accuracy may be
US s t a n d a r d for the exchange of spatial computed from knowledge of the errors intro-
information ( D C D S T F 1988) recognized the duced at different stages of data capture. If the
above definition of data quality and required a sources of error combine independently, an
quality report to provide the data user the basis estimate of overall a c c u r a c y is given by
upon which to judge suitability (Chrisman summing the squares of each component and
1991). Researchers (see Goodchild & Gopal taking the square root of the sum.
1989) are aware of the need for the explicit The N C G I A (1990) suggest that attribute
incorporation of metadata, data about data accuracy must be analysed in different ways
(Rhind 1990) (Table 1), but the issues involved depending on the nature of the data. The scale
(Table 2) entail heavy computational require- of measurement employed (nominal, ordinal,
ments and have yet to be generally incorporated cardinal) is one aspect of this nature. For
in commercial software. continuous cardinal attributes accuracy may be
expressed as a measurement error (e.g. elevation
Table 1. Metadata: information about the information accurate to 1 m) or an estimation error. For
used in reserve assessments ordinal attributes accuracy is a function of how
appropriate, sufficiently detailed and well-
Pixel size defined the categories are. Attribute accuracy
Age of data may be tested by preparing a misclassiI~cation
Personnel involved matrix which compares the information stored
Agency of collection in the database with ground truth (Guptil 1989;
Method of collection N C G I A 1990).
Input equipment used
Precision of computations Logical consistency refers to the internal
Processing methods involved coherence of the data. F o r example, in a
Definitions of classes in different source documents database of borehole information, the elevation
of the top of a unit should be equal to the sum of
the elevation of the base of the unit and the
thickness of the unit. Furthermore, the elevation
Table 2. Quality-related issues in GIS (after Goodhild of the base of a unit should be equal to the
& Gopal 1989) elevation of the top of the underlying unit and
the sum of all thicknesses should equal the
a. Precision of GIS processing is effectively infinite.
b. All spatial data are of limited accuracy. borehole depth.
c. Precision of GIS processing exceeds accuracy of For completeness consistent data should be
data. available over the whole area of interest (Lyons
d. In conventional map analysis, precision is usually et al. 1989). This is of particular relevance in
adapted to accuracy. those raster GIS* which use a numerical code
e. Ability to change scale and combine data from restricted to a range of 0-55 in place of a
various sources and scales in a GIS means that character attribute, such as lithology. The link
precision is usually NOT adapted to accuracy. between code and text is made in an attribute
f. We have no adequate means to describe the
accuracy of complex spatial objects.
g. Objective should be a measure of uncertainty on *A raster GIS stores information in a series of grid or
every GIS product. picture elements. Vector GIS store spatial information
in terms of points, lines and polygons.
RESERVE ASSESSMENT IN STRATIFIED DEPOSITS 47
GeoMODEL
dBase IV
1
Vector GIS
1
Site Investigation Database
1
Grapher
(SID)
dBase IV
/
1
Thiessen Polygon
Generator
Unistat & Statgraphics
l
VarioC
= Excel=
value table. All possible attribute values must be engineering geological mapping, rules have been
included in the table or, less elegantly, a catch-all set up to determine the content of maps at
class such as 'other' must be provided. different scales ( U N E S C O 1976).
Lineage is a record of the data sources and of Lyons et al. (1989) define currencyas the date
the operations which created the database and of data collection. However, the rates at which
is often a strong indicator of accuracy. Rosen- the parameter and the accuracy of the measure-
baum (pers. comm.) discovered that strong ment techniques are likely to change also
directional trends in borehole data did not influence the c u r r e n c y of a dataset. F o r
reflect palaeo-glacial movement but rather the example, l i t h o l o g y does not c h a n g e very
three different drilling contractors who provided quickly, fracture intensity may increase due to
the data! stress relief effects on a recently exhumed rock
Resolution refers to the scale at which mass and the accuracy and resolution of remote
observations or measurements were made and observation methods such as downhole geophy-
therefore the scale at which, and purposes for sics has improved in recent years (MacAllum
which, it may be appropriate to use the data. In 1992).
48 C. P. NATHANAIL
/" /::~,...
,---<-"T . . . . . : , " .....,
/ . ,. ..-<., \ :: / ,.."',..
.... i .-" 3.
, '- . I /..,,' ~ - - ' ' "
,. ~'::~-..!:..~ . • ,,~ ...................... ~ . ~ d ..................... • •
• __. - - ' J / l X~.Tt'... ]
..........
~.. ,..,,
...',ci
/
:,".-b. ' ~ . " -- ..,- [ " // ] %,, ' X 1 '.,. -.7 . /
•.. ~..., / : ,, ,...,
,,;. /' "-:. ,' i ', .?>"
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .i.?. t. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a. Seam L 0 0 0 f. Seam Q 0 0 0
r'--~
/
/ ./.'/
/ ._/" \,
/" /- _...
/ ............ . I .< m :~ / 1 "" ~.. /
,<.~._.1:
i / / . / ,.....
" ..... - ~ ~ ,t ---" '..A ' , / / ' ---" ;
X .. /
',-... / "'~.. //
....£
b. Seam M 0 0 0 g. Seam R 0 0 0
. . . . . . . . . . . . . . . . irnlq -- "
i.d.s ,~e II.S lie • II. s
,l,e :lZ.'s
til
lli
,;~ ,,.2 15i
l?I 21S
IIol
II.
II.s t
lIi
,.. . . . . . . . T . . . . . . -,.
'\ :: /
a...._~i r ......
' ,
~
i
I"m
. . . . . . . . i ........ ;"
\',, i /
....< , \ i /"':-. ";.\ :i / /~- ~.
~ " .... ' \ i /,." ..... . / ....... /q.. \ : ,/.- . . ~ . . ~ "~,
'<. / : \
// : "x
e. Seam P 0 3 2 j. Seam V 0 0 0
Fig. 2. Anisotropy rosettes from a sequence of seams. Seams are in stratigraphical order with L000 at the base and
V000 at the top of the sequence.
50 C.P. NATHANAIL
I t I I I
I P -I I
-- --r" ",
:'~ ,-- C,
I x I I I I
. . . . . . . . . . . . . . . . . _/_,_ . . . . . . . . . . r - . . . . . . .
-- I I / ~\ I -- -- --Ix I
= I I I I I ~ I
i ~ l~'~"~- ~ Ii~- l ~ l l [ ) i i
- I ~ : ~ i i I I
I I I I I
- i i ~ i i i
I i" I ,. ~ I
I ii I I -_-k I " I I
! ~\ ~ i | i x~ i i
. . . . . . . . . . . . 3 - - ~ - -~" . . . . ~---i . . . . . . . . . . . . . . . . . . . . . . . . . .
iI ) , i
,
i
,-., F" - ~\,.
,_, t
-- i " i " i i
I I I
I i I I
Fig. 3. Probability contours of encountering old workings (thick line delineates boundary of contractual seam
area).
MCCARTHY, S. • TAYLOR, B. 1992. Land Survey National Centre for Geographic Information,
System User Manual version 3.1. Hall and Watts Santa Barbara, California.
Systems, Birdlip, Gloucestershire. RrtIND, D. 1990. The ubiquitous geographical infor-
NATHANAIL,C. P. & ROSENBAUM,M. S. 1992. The use mation system. Science and Public Affairs, 5, 57-
of low cost geostatistical software in reserve 66.
estimation. In: ANNELS, A. E. (ed.) Case histories UNESCO 1976. Engineering geological maps: A guide
and methods in mineral resource evaluation. to their preparation. UNESCO Press, Paris.
Geological Society, London, Special Publications ZYTIrqSKI, M. 1991 SID geotechnical database system:
63, 169-177. User manual version 2. MZ Associates, Car-
NCGIA 1990. Core curriculum: Introduction to GIS. marthen, Dyfed.
Phosphate rock: factors in economic and technical evaluation
A. J. G. N O T H O L T
Mineral Resource Consultancy, 12 Thornhill Road, lckenham, Uxbridge,
Middlesex UBIO 8SF, UK
Abstract: Phosphate rock in the mineral industry refers to the marketable, usually
beneficiated, product. Geologically, however, the term embraces a very wide variety
of rock types, of both sedimentary and igneous origin, as well as their weathering
derivatives. Phosphate deposits thus form in markedly different geological
environments and ore characteristics are so varied that a combination of nearly
identical factors applicable to their evaluation seldom exists. In spite of this diversity,
the phosphate component in most deposits is a member of the apatite group
represented by the two end members: fluorapatite, the main mineral in crustal
igneous rocks, and carbonate fluorapatite or francolite, by far the most important
phosphate component of commercial sedimentary deposits. The identification of the
correct apatite composition is important in assessing the quality of marketable
phosphate concentrates.
Evaluation usually begins with a detailed mineralogical, petrographical, and
chemical study of a representative sample of prospective phosphate ore to determine
the principal constituents in the ore and their mode of occurrence. The data obtained
establish the grade (P205 content) of the rock and its chemical quality and, hence, the
method and degree of beneficiation required to provide a commercially acceptable
phosphate concentrate. Beneficiation technology is such that often the most difficult
ore types (e.g. siliceous, dolomitic and Fe-Al-rich) can be upgraded satisfactorily, but
the problems become more acute when impurities occur as substitutions in the apatite
lattice. Quality rather than grade is often the deciding factor in determining the
viability of a given deposit, in addition to other technical and economic factors.
Phosphate rock (PR) is well known as the basis PR for practical purposes may be defined as
of a major mineral industry of worldwide naturally-occurring material containing one or
importance, its value residing in the fact that it more phosphate minerals and possessing chemi-
is a vital source of phosphorus (P) in the cal and physical characteristics that make it
manufacture of phosphate fertilizers and certain acceptable for commercial use as a source of
phosphate chemicals, notably detergents. Nowa- p h o s p h a t e ( N o t h o l t 1980). As such it is
days, most phosphate fertilizers are of the 'high- represented by an extremely wide variety of
analysis' type, their manufacture being based on rock types of both sedimentary and igneous
the acidulation of PR with phosphoric acid, origin. Grade or phosphate content is normally
which itself is produced by the reaction of PR expressed in terms of P205 determined by
with sulphuric acid. More than four-fifths of chemical analysis, although P205 does not
annual world PR production is used for this occur in nature as such. The grade of products
purpose, hence the overriding importance of may also be expressed as % BPL or bone
phosphoric acid as an intermediate in the phosphate of lime, reminiscent of the early days
phosphate fertilizer industry. of the world fertilizer industry when tricalcium
More than 34 countries produce PR in various phosphate, thought to be the chief component of
forms, world marketable production totalling animal bone, was the principal source of
some 140.4 Mt in 1992, of which about 21.9 Mt phosphate in fertilizer manufacture (% P205
entered international export markets. Nearly x 2 . 1 8 5 3 = % BPL; % B P L x 0 . 4 5 7 6 - % P205).
four-fifths of world production is derived from Commercial PR varies in grade from about 18%
deposits of sedimentary origin (phosphorites). P205 (about 39.3% BPL) to 38.6% P205 (about
Most of the remainder is obtained from various 84.3% BPL). PR entering world trade markets
igneous rocks, notably from alkaline igneous averages 28.5% P205 (about 63% BPL) or more.
intrusions, including carbonatites and their As mined, PR ranges in grade from nearly 4% to
weathering derivatives, and from deposits pro- about 39% P205.
duced by the weathering of phosphatic sedimen- Crustal rocks average about 0.1% P, equiva-
tary limestones. lent to about 0.23% P205. Because of its great
From Whateley, M. K. G. & Harvey, P. K. (eds), 1994, Mineral Resource Evaluation II: 53
Methods and Case Histories, Geological Society Special Publication No. 79, 53-65.
54 A . J . G . NOTHOLT
affinity for oxygen, the element P is not found in Most of the world production of PR comes
nature in a free or uncombined state combining from the open pit mining of sedimentary
readily in the form of orthophosphate, PO4, with deposits somewhat less than l m to over 10m
a number of cations, chiefly calcium. Many thick, a characteristic feature being the use of
phosphate-bearing minerals are thus known in large, capital intensive earth moving equipment
nature (Deer et al. 1962; McConnell 1973; epitomized by the electric walking dragline or
Nriagu & Moore 1984) and these are among the bucket-wheel excavator. These machines
the most complex and varied in the entire enable low grade but generally very extensive
mineral kingdom. However, by far the most deposits to be worked economically by virtue of
important is the apatite (calcium phosphate) their high recovery efficiency and large tonnage
group, accounting for almost all of the known throughput. The larger mines may have capa-
PR reserves and resources. Apatite is a wide- cities of around 35Mt per year or more of
spread accessory mineral in many igneous and marketable product. However, other favourable
sedimentary rocks, in various residual deposits, parameters such as location close to sites or
including those produced by intensive weath- areas of consumption, high ore grades, abun-
ering of sedimentary phosphatic limestones and dant and cheap labour, or negligible overburden,
of carbonatites, and as replacements of lime- can individually or collectively render very small
stone coral rock. Apatites thus form in a wide tonnage operations profitable. To permit high-
variety of environments, giving rise to composi- volume annual production rates over a reason-
tions that often differ markedly from the usually able period (at least 10 years) and at low-unit
assumed theoretical composition. cost, reserves for a major new mine must be
large, perhaps in the region of 50 Mt or more of
Geological and graphical factors recoverable ore (Everhart 1971 in Lehr &
McClellan 1974). It is self-evident that reserves
A complex set of interrelated economic, techni- must also be sufficiently large to sustain and
cal, environmental and political/social factors justify the cost of constructing processing plant.
determine the commercial potential of individual Unconsolidated, flat-lying deposits, such as
PR deposits (Cathcart 1968, 1980; Lehr & those of Tertiary age in the southeastern USA
McClellan 1974). Unfortunately, these deposits are among the easiest to mine. According to
vary so widely in terms of their overall geology, Cathcart et al. (1984), the total depth to which
ore characteristics, and amenability to beneficia- overburden and ore can be mined together is
tion, that nearly identical parameters are rarely, about 50 m and, because of the large size of the
if ever, applicable. Thus, only generalizations dragline buckets in use, the ore bed must be
may be offered regarding, for example, geologi- more than 1 m thick. As a rough guide, the
cal characteristics of the PR deposit, ore to practical upper limit of the ratio of overburden
waste and concentration ratios, ore quality and to phosphate ore, previously placed at about 3 : 1
grade, recovery efficiency, transportation costs, (Cathcart 1968), is now around 5:1 (Cathcart
location in respect of potential markets, and 1991). In addition, the phosphate concentrate
environmental constraints. Any of these variable should contain more than 29% P205, less than
factors can determine whether the deposit is a 5% FezO3+AI203, less than 1.5% MgO, the
non-economic phosphate 'resource' or becomes ratio of % C a O : % P 2 0 5 being also less than
an economic 'reserve'. 1.55: 1. Mining of stratified deposits may also be
The most favourable mining conditions by open pit methods where open geological
involve high-volume removal of both waste structures exist and in areas where the PR beds
(overburden) and ore and a large tonnage are sufficiently close to the surface. Deposits in
output of PR, followed by the efficient bene- structurally complex geological settings are more
ficiation or upgrading of ore to specific market- expensive to mine and may even be uneconomic
able products (Emigh 1973; Lehr & McClellan to exploit if drilling, blasting, ripping or other
1974; Cathcart 1980; McClellan 1980a). Under relatively expensive steps are required. In the
ideal circumstances, deposits comprise one or folded and faulted Permian phosphate deposits
more thick and reasonably level beds of high- of the Western US, for example, the ore bed
grade ore of uniform texture and mineral must contain more than 18% P205, less than 3%
composition, and a minimum of structural Fe203+AI203, less than 1.5% MgO, with a
deformation combined with shallow overbur- CaO : P205 ratio of less than 1.55 : 1 and the ore
den to allow easy open pit mining. However, zone more than about 1.5 m thick. The minimum
these ideal conditions are seldom encountered in size for a new deposit is placed at 20Mt
practice and various mining techniques have (Cathcart et al. 1984).
been developed to suit the nature of the deposit. Labour, mine equipment and energy costs are
PHOSPHATE ROCK: FACTORS IN ECONOMIC AND TECHNICAL EVALUATION 55
and, since its foundation in 1974, the Interna- may also occur as angular to subrounded
tional Fertilizer Development Center (McClellan polished clasts, or form replacements in shells,
1980a, b; McClellan & Clayton 1980; McClellan coral, and faecal pellets, as well as in fossil
& Gremillion 1980; McClellan & Hignett 1978; vertebrate bones and teeth. Apatite particles are
Roy & McClellan 1986; Van Kauwenbergh commonly stained by occlusions (endogangue)
1991; Van Kauwenbergh et al. 1990). This of finely divided Fe oxides and carbonaceous
paper draws heavily on the results of the matter, and colourless occlusions of silt-size
frequently innovative research carried out by grains (e.g. quartz), clay minerals, opaline silica
these organizations. and, occasionally, fossil fragments. Major
Methods which have been most effective in accessory minerals such as quartz, carbonates,
characterizing potential phosphate ores include feldspars, and heavy minerals (Table 2) are
petrographic and electron microscopy, chemical usually present as discrete grains. Non-pelletal
analysis, X-ray powder diffraction and infrared varieties of PR also occur, the prevalent type
spectroscopy (Lehr et al. 1967; McClellan & consisting of authigenic microcrystalline mud
Gremillion 1980; Zevin et al. 1988). Complete for which the term 'microsphorite', a shortened
evaluation is normally based on two or more of version of microcrystalline phosphorite, analo-
these techniques, XRD and infrared investiga- gous to 'micrite° in carbonate sediments, has
tions generally providing rapid preliminary been proposed (Riggs & Freas 1965). The
results in respect of widely varying samples. By sedimentary structures of microsphorite have
these means ore characteristics can be identified been described in detail by Riggs (1979).
and evaluated by first determining the composi-
tion of the apatite mineral present. The data Table 2. Generalized mineralogy of PR
obtained can then be combined with chemical
analysis of the whole rock to evaluate the Mineral Phases
significance of other constituents, the primary
Ore
objective being to determine how key impurities
Phosphate Apatite (fluorapatite-francolite)
are distributed between the apatite and gangue- (Ca, P)
mineral fractions and, ultimately, the most Gangue
appropriate beneficiation procedure. Theoreti- Phosphate
cal PaO5 values obtained for apatites can be used Ca, Fe, A1 Crandallite, millisite
to calculate the ratio of phosphate to gangue. In Fe, Al Wavellite, variscite, strengite
addition, the data can provide an indication of Silica Quartz, chalcedony, opal, cristobalite
the chemical quality of the PR concentrates Silicates Clay minerals, micas, feldspars, pyrox-
likely to be obtained. enes, amphiboles
Carbonate Calcite, dolomite, apatite
Evaporites Halite, gypsum
Petrographic examination Metallic impurities
Fe Magnetite, hematite, pyrite, goethite,
Phosphate rock, whether of igneous or sedimen- limonite
tary origin, is not a very distinctive rock. Hand A1 Clay minerals, micas
specimens can exhibit a wide variety of physical Mg Dolomite, magnesite, pyroxenes
properties and in many cases the presence of Ba Barite
phosphate can generally be determined only by Ti Rutile, ilmenite, anatase, perovskite
geochemical field tests using or based on that Organic matter Indigenous compounds, beneficiation
originally developed by the US Geological reagents
Survey (Shapiro 1952). In most sedimentary
PR deposits, apatite exhibits a variety of micro- Because of its submicroscopic size, optical
structures (Hewitt 1980) but it is usually micro- investigation of apatite in sedimentary PR gives,
to cryptocrystalline in form and occurs in unfortunately, only limited data. Satisfactory
complex aggregates of crystallites. This is in identification has generally to rely on X-ray and
marked contrast to the often medium to coarsely chemical analysis (Smith & Lehr 1966; Lehr et
crystalline mode of occurrence of apatite in al. 1967; McClellan & Gremillion 1980). Using
igneous and metamorphic rocks. Pelletal tex- large numbers of samples, statistical methods
tures, frequently without internal structure, are have been used to develop models which show a
common in major commercial deposits and have high degree of correlation between chemical
been described in detail (Mabie & Hess 1964; composition and crystallographic properties,
Trueman 1971; Cook 1972, 1976; Slansky 1986). such as indices of refraction and a and c unit-
Most pellets have a spherical or oval outline, cell dimensions (McClellan 1980b; McClellan &
frequently without internal structure. Apatite Van Kauwenbergh 1990). Microscopic study is
PHOSPHATE ROCK: FACTORS IN ECONOMIC AND TECHNICAL EVALUATION 57
a useful means of determining the index of ods. By far the most important is substitution of
refraction and its variation within grains. CO34 for PO4 3 which occurs essentially on a 1 1•
Weathering and/or leaching is a variable that basis (McClellan & Lehr 1969). Maximum
is often overlooked during evaluation, in spite of substitution amounts to between 6 and 7%
the fact that it can cause significant changes in CO2, with a corresponding decrease in the
physical and chemical properties of deposits amount of P205 from the theoretical maximum
being evaluated. The effects may be such that a of 42.2 in fluorapatite to about 34% P205 in the
deposit is rendered uneconomic, depending on most highly substituted francolite (Table 3). This
the nature and extent of the alteration. Improve- has important practical consequences since the
ment of grade by weathering is a characteristic degree of substitution determines the upper limit
feature of many deposits; in the western US, to which PR can be beneficiated. It is evident
mining of the Phosphoria Formation is re- also that P205 values, while indicating the
stricted to weathered zones which often extend amount of phosphate mineral, are not necessa-
to depths greatly exceeding 200m. The ore rily directly related to the amount of gangue
contains up to 8% P205 more than the deeper, present, but rather to the degree of carbonate
unweathered rock. Leaching of carbonate substitution in francolite.
cement in surface outcrops often results in a
soft, porous rock that readily disintegrates upon Table 3. Apatite parameters
handling, thus liberating the phosphate mineral.
A particularly deleterious effect is the conversion Fluorapatite~ . . . . . . . . ~Francolite
of apatite to less desirable Fe and A1 phosphates. Calo(PO4)6F2 Calo~-bNaaMgb(POa)6x(CO3x)Fo.4xF2*
* Recoverable
May have nutrient value
n.a., not available.
Impurities
Changes in composition from fluorapatite to
francolite (and vice versa) correlate with changes The shift within the last 20 years or so to the
in the a values, the lower the a-value the greater manufacture of high-analysis phosphate fertili-
the amount of carbonate and other impurity zers, based on the production of important
substitution, i.e. the less altered the francolite intermediates such as phosphoric acid and, on
(McClellan 1980 b). Increases in a-values indicate a much more limited scale, superphosphoric
the extent of alteration to produce forms of acid, has resulted in a corresponding emphasis
apatite approaching fluorapatite in composition on rock quality rather than mere grade (Anon
(Van Kauwenbergh et al. 1990). Francolites that 1986; Kouloheris 1977; Lehr 1984). As a mineral
have been progressively weathered/altered have raw material, PR has thus become predomi-
higher a-cell dimensions compared with less nantly process-specific, both physical and che-
altered forms (Cathcart and Botinelly 1991). mical characteristics (Table 4) playing a critical
The effects of such post-depositional changes role in determining the suitability of the PR for a
have been discussed also by Nathan (1984) and particular end-use. Such physical features as
Nathan et al. (1990). texture, hardness, porosity, particle size, crystal-
linity, and mode of occurrence (cement, coating,
grains), as well as the composition of both
Infrared (ID) studies
phosphate and accessory minerals (Table 2),
The infrared absorption spectrum of francolite including the distribution of such elements as
identifies both its composition and may, in Fe, A1, Mg, Na, the heavy metals, and toxic
addition, indicate the presence of extraneous elements, can individually or collectively deter-
phases and the degree of carbonate for phos- mine the process to be adopted and the
phate substitution (Lehr et al. 1967; McClellan composition and character of the phosphoric
& Gremillion 1980). A characteristic CO2 acid produced. With declining grades mined, a
absorption doublet occurs at 1453 and 1420 higher proportion of acid-soluble mineral im-
c m - 1, this varying in amplitude according to the purities is present.
amount of C032- substitution. A CO2 index can
thus be derived which is based on the ratio of Silica
intensities of the C-O and P-O absorptions, the
ratio being also directly proportional to the In general, the presence of silica (SiO2) as such is
weight ratio CO3:PO4 and independent of the not considered as deleterious except in that it
concentration of apatite. The CO2 index and acts as a diluent and renders the rock more
unit-cell a values for francolites show a linear difficult to grind. Indeed, if sufficient quantities
relationship. are present, silica aids the necessary removal of
PHOSPHATE ROCK: FACTORS IN ECONOMIC AND TECHNICAL EVALUATION 59
fluorine released from apatite during the western margin of the Khibiny intrusion near
preparation of 'wet-process' phosphoric acid Kirovsk, in the Murmansk region of north-
(Robinson 1980). Most ores consisting mainly western Russia. A variety of ore types have been
of quartz are usually amenable to economic identified but usually the main minerals are
beneficiation, usually involving flotation. Even apatite (10-80%), nepheline (15-20%), together
quite low grade feeds can be treated. The with titanite, aegirine-augite, feldspar and
method of beneficiating siliceous ores may vary titanaugite. Khibiny apatite-nepheline ores are
considerably, depending on whether they con- highly crystalline and show average grades
tain clastic quartz, chalcedony or opaline silica ranging from 6.64% to 31.43% P205 and
in the free state (as exogangue) or are intimately 8.21% to 32.72% SIO2. Despite a declining
mixed (as endogangue) with individual phos- grade, to around 14% in 1990 for example, the
phate pellets. As endogangue, usually one grain grade of the flotation concentrate produced has
of quartz occurs around which apatite is been maintained at the high level of 39.5% P205
concentrically distributed; less frequently, the (86% BPL) (Notholt 1985). The SiO2 content of
central nucleus comprises a grain of feldspar, a the concentrate obtained averages only 1.73%.
limestone fragment, or a dolomite rhomb. PR Worked on a much smaller scale are steeply
containing chalcedony and opaline silica tends dipping Precambrian stromatolitic deposits near
to be hard and dense, and to require careful Maton in Rajasthan, India. These contain an
grinding to liberate the phosphate, often result- average of 25.7% P205 and 38.1°/0 SiO2.
ing in excessive phosphate losses. The latter is Preliminary tests had shown that ore containing
often true where there is a fine intermixture of up to 40% SiO2 is amenable to beneficiation by
quartz and apatite. Coarse, angular quartz froth flotation, but attempts to reduce the silica
grains are abrasive and may erode plant content to below 10% resulted in a marked
equipment. Silica may be present also as decline in phosphate recovery. A conventional
silicates in, for example, PR with high clay flotation circuit is used to produce a PR
contents, i.e. high in A1203 and Fe203 (R203), concentrate containing 32% P205 but it has
and in many igneous phosphate deposits. been reported (Anon 1986) that uncertainty still
The beneficiation of low-grade siliceous exists about the ability to produce concentrates
phosphate ores is epitomized by the procedures with less than 10% SiO2.
adopted in central Florida, USA, where the
famous land-pebble deposits have been worked Iron and aluminium (R203)
since 1890. The apatite occurs as irregular
rounded pellets that generally range from clay Iron and aluminium are generally regarded as
to sand size and many of the coarser clasts are belonging to the same impurity category. They
compound, comprising three or more genera- are particularly troublesome in wet-process
tions of pellets cemented by phosphate (Cathcart phosphoric acid manufacture and PR high in
1991). Traditionally, the 'double-float' or Crago Fe203 and A1203 (R203) is not normally
(1940) flotation technique has been used to effect regarded as usable, mainly because it cannot be
a separation of phosphate (carbonate apatite) beneficiated satisfactorily (Hignett et al. 1976).
from the gangue, this being chiefly in the form of They also reduce the water solubility and overall
silt to clay size quartz constituting about one- quality of the fertilizers produced. Phosphate
third of the ore, and clay minerals (Lawyer et al. concentrates with up to 5-6% R203 may be
1975, 1982). More recently, what is claimed to be tolerated for superphosphate production. As a
a unique process for selective fatty-acid flotation guide, the R203:P2Os ratio in PR should be
of phosphate minerals from siliceous ores has around 0.10:1. Another problem results from the
been developed (Anazia & Hanna 1990; Hanna varied mineralogical forms in which either iron
& Anazia 1991, 1993) whereby Florida and or aluminium, or both, are present. In sedimen-
North Carolina PR containing from 7.7% to tary PR, scrubbing, desliming (to reduce Fe and
15.3% P205 and 62.3% to 77.2% siliceous A1 as silicates, i.e. clays), flotation and high-
gangue can be beneficiated to produce concen- intensity magnetic separation can all be effective
trates with 28.1% to 33.1% P205 and 4.1% to on a commercial scale.
9.9% SiO2. These grades are comparable with
those currently produced commercially. Non-phosphatic Fe/AI minerals. In many igneous
Most deposits of igneous or metamorphic and sedimentary deposits, iron may be present as
origin currently mined on a commercial scale are magnetite, hematite, limonite, goethite, ilmenite
also highly siliceous. By far the most important or pyrites. Igneous PR deposits consisting
of these are the remarkable apatite-nepheline essentially of magnetite-apatite mixtures can be
deposits worked since 1930 near the south- readily beneflciated by magnetic separation. In
60 A.J. G. NOTHOLT
South Africa, for example, a dry beneficiation complex silicates such as micas, feldspars,
process based on the use of super-conducting pyroxenes and various clay minerals. The clay
magnetic separators was developed to treat fraction occurring as exogangue in sedimentary
pyroxenite ore averaging about 6-7% P205 PR usually consists of silicate minerals such as
formerly worked at Phalaborwa, northern attapulgite, montmorillonite, kaolinite and mus-
Transvaal, and to recover phosphate from the covite and its presence in large amounts leadg to
slimes fraction of apatite tailings received from sludge problems in the storage of phosphoric
an adjacent copper operation (Roux 1985). In acid if the R203 content exceeds 3 to 5%. Higher
addition, very low ore grades can be accommo- amounts make superphosphate fertilizers sticky
dated. Pyroxenite, for example, averaging only and difficult to handle. Iron may also be released
2.8% P205 from a deposit delineated at Loch during acidulation from the oxide minerals
Borralan, Scotland, was upgraded by separating goethite and hematite. Silicates such as ortho-
the 180#m fraction by dry, high-intensity, clase, microcline and plagioclase are much more
magnetic separation. Although recovery was stable under conventional acidulation treatment
poor, 58%, a product containing 20% P205 and are much less likely, therefore, to have any
was achieved (Saavedra 1980 in Notholt et al. deleterious effects. Glauconite as separate grains
1985). Beneficiation to the required product in the endogangue is not common in higher
standards becomes more difficult or impossible, grades of sedimentary PR, although mixtures of
however, when Fe-minerals other than magne- glauconite and apatite have been recorded.
tite are present. For example, the brecciated and
ferruginous deposit formerly worked near Glen- Fe/Al phosphate minerals. Phosphate minerals,
over, South Africa, comprised mainly a capping other than apatite, containing significant
of secondary apatite in a matrix of finely divided amounts of either aluminium or iron, and in
hematite and goethite, the ore averaging 32.8% some cases both, are to be found chiefly in
P205 and 9.3% Fe203. Most of the hematite tropical or subtropical regions where they form
could have been removed by high-density by intensive laterization of phosphatic bedrock.
magnetic separation, as at Phalaborwa, but the These minerals are generally complex, hydrous
ore was upgraded only by screening the fine phosphates of A1 and/or Fe whose structure is
material and, as such, was unsuitable for not well known. Their presence in various rocks
phosphoric acid manufacture. However, Glen- can generally be established only by the use of
over rock proved well suited to the manufacture chemical or X-ray diffraction methods. The
of elemental phosphorus and the entire output supergene crandallites (including goyazite and
was used for that purpose. gorceixite) and wavellite are the only minerals of
In many magnetite-apatite deposits, magne- this type to have been found in phosphate
tite is usually regarded as the primary product deposits of commercial or potential economic
and there has been only limited recovery of importance. When pure, crandallite contains
apatite. Apatite is a characteristic mineral of the 34.29% P205, 36.93% A1203, and 13.55%
Kiruna iron ores worked for many years in CaO, the CaO:P205 ratio being about 0.39: 1;
northern Sweden, where the introduction of new pure apatite, which contains 42.20% PE05,
beneficiation flowsheets and the use of new 55.60% CaO, has a ratio of 1.32: 1. Thus, total
reagents proved effective in treating the fine- P205 values alone may give a false impression of
grained apatite-bearing ore. Apatite was recov- the potential value of a PR deposit. If the
ered from non-magnetic tailings averaging 13% CaO:P205 ratio is below 1.32, significant
P205, following low-intensity wet magnetic amounts of non-apatitic minerals may be
separation for the production of dephosphor- present. Computer analysis can be useful in
ized iron ore pellet fines (Fagerberg & Sandgren determining their distribution and extent if
1980) A concentrate with 35.9% P205 was analytical work includes a calculation of
obtained by flotation. Production of apatite CaO:P205 ratios. That crandallite and related
concentrate both at Kiruna and at Gr/ingesberg secondary minerals are deleterious components
in central Sweden has been variable, being in PR is emphasized by the fact that their
dependent on iron ore production. Apatite complete removal cannot be achieved by
production ceased in 1990. Most of the apatite conventional beneficiation procedures.
in the Kiruna deposits is of the hydroxy- The only deposits currently worked on a
fluorapatite variety, as confirmed recently by commercial scale as a source of phosphate are
Veiderma & Knubovets (1991). However, pure those in western Senegal, on Thins Plateau,
fluorapatite also occurs, as does chlorapatite where a lateritic zone developed over lower
with 1-2% C1 in some deposits (Frietsch 1974). Tertiary PR beds, contains finely crystalline
Both iron and aluminium may occur as augelite, crandallite and a cryptocrystalline
PHOSPHATE ROCK: FACTORS IN ECONOMIC AND TECHNICAL EVALUATION 61
mineral, pallite, the last having apparently research by the phosphate rock industry and
originated by the leaching of phosphatic mont- others (Anon 1975, 1979, 1986, 1991; Anazia &
morillonitic clays in the sedimentary succession. Hanna 1990; Baumann & Snow 1980; Hanna &
This mineral has been proved to be a variety of Anazia 1991; IMPHOS 1980; Lawver et al. 1975,
millisite (Capdecomme & Orliac 1967). The 1982; Llewellyn et al. 1982; Mougdil & Vasu-
deposits, which range from 3 to 60m in devan 1988; Parsonage 1986; Redeker 1984).
thickness, contain 28-30% P205, 8-11% CaO, However, the efficient separation of carbonate
6-10% Fe203, and 27-32% A1203. The ore is minerals from apatite in sedimentary PR ores
calcined to produce a clinker which is then continues to pose a challenging problem.
ground and marketed under the trade name of Carbonate minerals and apatite have identical
'Phospal' for direct application to acid soils, cations in the crystal lattice and very similar
usually as phosphate-potash mixtures. Phospal flotation properties, so that selective flotation,
'34' (95% passing through a 0.16mm screen) although technically feasible, has generally
contains 34% P205 (minimum), 35% A1203, proved difficult, requiring careful control. None
10.4% CaO, and 11.5% Fe203 of the conventional flotation techniques has
been able to reduce the dolomite content (as
Carbonate MgO) to below the I-1.5% level normally
required for phosphoric acid manufacture.
Carbonate exogangue is very common among Successful removal of dolomite from potential
sedimentary phosphate deposits, and probably ores on a commercial scale, in the southern
well over two-thirds of the world's PR resources extension of the Florida phosphate field, for
are of the carbonate-rich variety. Calcite example, would greatly extend dwindling re-
predominates but dolomite is locally very serves.
abundant in some deposits. Calcite, dolomite Almost all commercial operations treating
and magnesite, as well as highly substituted carbonate ores resort to high-temperature
apatites, cause foaming problems during the (800-900 °C) calcination followed by wet-chemi-
acidulation of PR. Moderate amounts of cal separation or slaking which aims to
calcium carbonate (up to 4 or 5% as CO2) are dissociate the carbonates present in both the
acceptable in superphosphate manufacture as a exogangue and the apatite. It is a technique
means of enhancing reactivity by making suitable for low-grade ores in which calcite is a
fertilizer porous and spongy. Drying is also major impurity, at the same time effectively
facilitated. eliminating traces of organic matter, although in
The CaO : P205 weight ratio is one of the most some cases the process may be regarded as too
important chemical factors affecting the eco- expensive if the ore contains less than about
nomics of PR processing, since this determines 25% P205. In the western US, calcination plants
acid consumption, each % CaO requiring some were installed which removed about 40-50% of
17.5 kg H2804 per tonne of PR (Becker 1989). In the calcium carbonate content, thereby raising
phosphoric acid manufacture, it determines also the grade from 28% to 32% P205. In this way, it
the a m o u n t of waste calcium phosphate has proved possible to use western US ore more
(phosphogypsum) which has to be filtered extensively for phosphoric acid manufacture, the
(Robinson 1980). A typical range for the ore having previously been regarded as too low
CaO : P205 ratio is 1.4 : 1 to 1.6 : 1, irrespective in grade and high in organic matter (averaging
of whether the PR is sedimentary or igneous in 2%) to be suitable for this purpose. A notable
origin, beyond which excess quantities of acid development was the installation, in 1965, of the
are required which may ultimately render the world's largest single phosphate kiln operating
entire process uneconomic. near Oron in the Negev Desert, Israel, capable of
The presence of magnesium (usually as producing 600 000 t per year of calcined product.
dolomite) is never desirable since it creates high In marked contrast, significant technological
viscosity in phosphoric acid and is the principal improvements have been achieved in respect of
source of insoluble phosphate precipitates pre- carbonate-rich ores of igneous origin. Apatite
sent in ammonium phosphate liquid fertilizers. and calcite were first separated successfully on a
Apatites may contain up to 0.7% MgO in their commercial scale by flotation at Jacupiranga,
structure and in such cases the magnesium S~o Paulo, Brazil, where carbonatite ore
content cannot be reduced by physical beneficia- averages about 5% P205 (about 12% apatite),
tion. Higher values of Mg occur in PR when, for 71% calcite and 7% dolomite (Silvia & Andery
example, bentonitic clay or glauconite is present. 1972). The technique has been applied commer-
The beneficiation of carbonate-rich phosphate cially to other Brazilian ores, including the
ores has been the subject of considerable weathered/leached deposits overlying the Arax~
62 A . J . G . NOTHOLT
and Catalfio complexes (Betz 1981). Similarly, a case, the commercial practice is to reduce or
flotation technique developed in Finland (Kiu- eliminate the chlorine content simply by washing
kolla 1986; White 1984) at Siilinjtirvi enables with fresh water. However, when present in
carbonatite ore grading only 3.8% P205 to be apatite, i.e. as endogangue, thermal methods
beneficiated to yield a 33% P205 concentrate. may be necessary to remove chloride. However,
Well-developed crystallinity appears to be a these are expensive procedures and not in
favourable factor in beneficiating these types of commercial use at present.
ore.
M i n o r trace elements
Organic m a t t e r
PR may contain 16 or so trace elements, mainly
Organic matter is almost always found as as heavy metals and REE elements. Minor
endogangue in phosphate pellets that have not constituents such as Mn, Fe, and Cu, are
been subjected to much secondary oxidation. It beneficial as micronutrients. However, all even-
is usually of marine planktonic origin and tually contribute to the precipitation of insoluble
composed essentially of humic acids. This phosphate compounds. Other elements, includ-
constituent causes foaming problems in phos- ing Cd, Pb, Cr, As, Hg, Se and V, are either toxic
phoric acid processes, causing serious choking of or potentially harmful in agricultural products.
filter cloths, as well as black discoloration of the Of these, cadmium in fertilizers based on PR has
products. In commercial practice, low-tempera- received much publicity in recent years because
ture calcination (450-500°C) is required to of environmental implications. At present the
remove organic matter in PR, a relatively low only commercial process for Cd removal is high
cost operation if maximum use is made of the temperature calcination (1500°C) and appears
fuel value of organic material. In N o r t h to be specific only to rock mined on Nauru in
Carolina, for example, the world's largest the Central Pacific (Anon 1986).
producer of calcined PR, ore averaging about
15% P205 is passed through fluid bed calciners
to remove water, oxidize the organic matter, and
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, CATHCART, J. B. & MCCLELLAN, G. H. 1990. phates. International Journal of Mineral Proces-
Mineralogy and alteration of the phosphate sing, 24, 235-245.
deposits o f Florida. US Geological Survey
Bulletin 1914.
Evaluation of grade estimation techniques
T. M. B E L L a & M. K. G. W H A T E L E Y 2
1C.L.M. Ltd (a member of the C.P. Holdings group of companies Ltd.) Nottingham Road,
Giltbrook, Nottingham, UK
2Geology Department, University of Leicester, Leicester LE1 7RH, UK
Abstract: A sample set was simulated from an exhaustive data set of silver values
derived from blast holes of the 5220 bench. The sample set was used to estimate the
ditribution of grade for the 5220 bench using a variety of estimating techniques. The
estimating processes were controlled by the knowledge of the statistical and spatial
distribution of the exhaustive data set. This approach was used to test the accuracy
and precision of the different estimation techniques. The results from the simpler
estimation methods (linear interpolation and triangulation) compared most closely to
the blast hole samples. The more complex techniques (inverse distance and kriging),
using weighting factors, were found to exaggerate the variance and smooth the inter-
quartile range.
The dilemma that any mining geologist or prior to deciding which estimation technique is
engineer faces is 'How do I estimate a mean to be used.
value that accurately reflects the quality of A slice has been taken through an ore body
material that I am trying to estimate? What and an exhaustive sample set precisely defines
fluctuations about the mean value can I expect the characteristics of that slice. From knowing
within a given environment?' There are many the actual statistical and spatial distribution of
estimation techniques available but which one assay values we attempt to redefine the slice
will work? Two aspects to grade estimation from a sub set of the data using this prior
include the calculation of a global estimate for knowledge. It is therefore possible to test the
determining the total quantity of material and effectiveness of different estimating techniques
calculating local estimates to aid mine planning and also illustrate how a sub set of samples can
and scheduling. Local estimation will require impoverish the results. Typically, attempting to
more detail and is often a precursor to create detail from limited information is always
calculating a global estimate. Calculating a dependent upon sample pattern and size. In an
local estimate requires the spatial nature of the environment of high variance with high value
data values to be correctly defined, and in a outliers, where spatial structure of the distribu-
mining environment is dependent upon geologi- tion of values is highly organized, estimation
cal control. Given that the spatial distribution is processes need to adopt a localized approach.
intrinsically linked to the statistical distribution, The sample data set is from the Trinity Silver
statistical inferences can be used to control Mine situated within Pershing County, N W
processes of grade estimation. The data derived Nevada (Fig. 1), located on the NW flanks of
from an estimation process should always the Trinity Range, 25km N N W of Lovelock.
honour and reflect the statistical variation and The mine was an open pit, heap leach silver
spatial distribution of the sample data set. mining operation extracting rhyolite hosted,
Techniques that characteristically smooth the disseminated, hydrothermal, silver oxide miner-
data may provide a good global estimate but alization. The geology and mineralization is
deliver invalid results as regard spatial distribu- described by Johnson (1977), Ashleman (1988)
tion and local estimation. Mining ore as waste and Bell (1989). The exhaustive data set used for
and vice-versa is always to be avoided. It is, this evaluation was taken from a single bench of
therefore, the aim of this paper to evaluate the the open pit. The 5220 level data set contained
accuracy and precision of methods of grade 1386 blast hole samples (Fig. 2). No spatial bias
estimation in a typical mining environment of or clustering effects are evident as the sampling
high variability of grade. It is always important pattern was at regular 4.5m centres. The
to have a thorough statistical, spatial and location of 51 boreholes, from the exploratory
geological understanding of the sample data set drilling programme, that intercepted the 5220
Black Rock
Desert
[
"i! x/x/," -- _
2
T25N i
RJOE R40E
~ Tertiary sediments ~ Triassic sediments ~ Permian sediments ~--~1 Cambrian sediments
I I Recent & volcanics (ALSG)
Quaternary ~ Jurassic p'~ CretaceousGranodiorite ~ Ordovician sediments f Thrusts
Fig. 1. Map of Nevada showing the location of the Trinity Silver Mine, Pershing County.
10200N l
10000N
9800N
Fig. 2. Outline of the worked open pit and pattern of blast hole samples for the 5220 bench.
EVALUATION OF GRADE ESTIMATION TECHNIQUES 69
level were used for simulation. Table 1 outlines symmetrical distributions and the linearity of a
the set procedures followed for the purpose of normal or log normal probability plot confound
this evaluation. This evaluation is based upon a the modelling process and question the assump-
single case study and therefore reflects the tions of applying a specific type of distribution
characteristics of this specific deposit. The to the data (Isaaks & Srivastava 1989). Changes
conclusions may be of assistance in evaluating in the characteristics of the cumulative frequen-
other deposits. cies of a data set over different intervals need
always to be explored and checked against the
possibility of multiple populations. It is evident
Table 1. Proceduresadoptedfor evaluating methods of from statistical information (Table 2, Fig. 3) that
grade estimation
the silver values (oz t-1) for the 5220 level neither
Global statistics c o n f o r m to a Gaussian nor Log N o r m a l
Descriptive distribution. If such distributions were modelled
Histogram over or under estimation, respectively, is likely
Probability plots to occur.
Population analysis The important features of the distribution are
Derived from global statistics captured by the univariate statistics (Table 2)
Descriptive statistics and illustrate immediately the problem of grade
Spatial distribution estimation for the 5220 bench. T h a t is a
Block model
Contour maps pronounced peak below the mean and a large
Indicator maps spread of data toward extreme high values (Fig.
Moving windows 3). The summary statistics provide measures of
Semi-variograms location, spread and shape. The mean A~
Link populations to spatial context content of the bench is recorded as 1.4oz t-,
Borehole simulation which is an accurate estimate for regular spaced
Triangulated model data for the calculation of the total silver
Linear interpolation of grades quantity of the bench. However, other estimates
Grade estimation of central tendency that are more resistant to
Triangles
Linear interpolation outliers (median, trimean, biweight etc.) invoke
Inverse distance caution with respect to the precision of the mean
Ordinary kriging (Fig. 4). The high variance describes the high
Estimation of errors variability of the data set and explains the poor
Error maps precision of the mean as a local or point
Mean squared error estimate. A strong positive skew with a long
Ore envelopes and spatial integrity tail of high values to the right is evident from the
high positive skewness ( + 4.37). The degree of
asymmetry is also supported by the coefficient of
Statistical assessment of the exhaustive variance (2.06).
data set The frequency histogram and probability plot
(Fig. 3) illustrate how the data are proportioned.
The purpose of a statistical assessment of the It is important to note that even though the data
data set is to derive assumptions about the values range from 0 to 32.8 oz f l Ag, only 23%
accuracy and precision of subsequent grade are > 1.3, 7.4% are > 5 and 2.7% are > 10 oz t-1.
estimates. This requires an understanding of The upper quartile indicates that 75% of the
the spread and character of the data. The entire data set lie between 0 and 1.14 oz t-lAg,
univariate statistics, histogram and probability and the mean which is higher does not then
plot provide us with insight into the character of reflect the majority of the data resulting in local
the statistical distribution of data values. The or point overestimation. It is obvious therefore
mean is of limited use if expected fluctuations in that the positive skew has a disproportionate
data values about the mean cannot be predicted influence upon grade estimation. Such a conclu-
within a given environment. The confidence of sion can be derived if the coefficient of variance
the global or local mean, as described by the exceeds 2 and therefore any local estimate within
variance, provides a measure of repeatability in the confines of the 5220 bench could generate a
time and space. The calculation of a mean and mean that is considerably different from the
its confidence limits is frustrated by the implica- global mean.
tion that variables from a geological environ- A skewed distribution of this nature with high
ment commonly consist of many quite small value outliers needs to be evaluated for potential
values and a few large ones. Deviations from modality and departures from a continuous
70 T.M. BELL & M. K. G. WHATELEY
Table 2. Statistics calculatedfor the 5220 bench, including total and sub-populations
distribution. Detailed exposure of the histogram clear structure to the data. N o random spread is
and probability plot can highlight transitions evident and grade classes define specific struc-
from one distribution to another. A marked tures. The bulk of the mineralized zone to the
change in frequency from one class to another, east forms an elongated linear structure with
or deviations of the cumulative frequency grade envelopes or shells surrounding high grade
polygon from a straight line provides the cores. Each shell describes a specific transition
necessary statistical support for population from one grade class to another. Alternatively
splitting. Often positively skewed data reflect discrete ore lobes or zones can be defined to the
the mixing of sub-populations or grade classes. west and contain values specific to a single grade
Any such conclusion and attempt to model class. Sub-populations can be located within
Gaussian distributions by population splitting specific lobes or envelopes the boundaries of
requires statistical, spatial and geological sup- which are clearly defined and represent areas
port. Processes of overprinting, enrichment and of high local variance. A 3D profile (Fig. 6)
depletion can provide geological support for the through the mineralized zones illustrates the
existence of sub-populations. The samples from transition from rapidly changing grade values to
the 5220 bench were split into five grade areas of stable grade. Peaks in the grade profile
categories. Statistical support is evident for (Fig. 6) or sharp changes in grade are the prime
breaks in the distribution at 0.4, 0.8 and 1.3 oz factor in causing poor grade estimates and
t-l; however, arbitrary breaks at 5 and 10 oz t 1 provide a case for spatially separating data for
were chosen to split the tail of the positive skew the purpose of calculating grade estimates.
and would require spatial or geological support. The indicator maps (Fig. 7) support the
The statistics (Table 2) and measures of central structural integrity of the sub-populations
tendency (Fig. 4) suggest that Gaussian distribu- illustrating the localized clustering of specific
tions were approximated. The variance and grade values. The 1.3 oz t 1 threshold defines the
skewness decreased for each class, compared to NE trend of the data whilst the 5 and 10 oz t-1
the global statistics, restricting expected fluctua- thresholds represent clusters of high values that
tions which should result in more reliable grade are continuous over shorter distances. There is a
estimates. The value of such an exercise comes if degree of scatter to the low values less than
the s u b - p o p u l a t i o n s prove to be spatially 0.4 oz f l . The semi-variogram parameters (Fig.
coherent. 9) quantitatively verify these observations. Such
clusters can be separated and evaluated as single
Spatial description of the exhaustive data set classes and grade estimates calculated for given
zones. Such a method would reduce the overall
A coded block model and contours of silver variance within each zone and provide a more
grade of the 5220 bench (Fig. 5a & b) illustrates reliable set of local grade estimates for the
EVALUATION OF GRADE ESTIMATION TECHNIQUES
400
350-
300-
250-
t-
200-
0"
L_
LL
150-
100-
50-
tlfll~ HII,~, H HIl,I, H ll~]lJll,l,I J~III~IH,t,WHIW~ H rtlll,l,I HrI,H H HIH Jlll~l,,IJl Hill H H
0 2 4 6 8 10 12 14 16 18
1 3 5 7 9 11 13 15 17 19
(a) Silver ( o z / t )
18-
16-
14-
~'~ 12-
" J 10-
>
8-
0 i i
o.o 0'.2 ' 0'4 ' 0'.6 018 1.0
0,1 0.3 0.5 0.7 0.9
(b) Cumulofive P r o b o b i l i l y
Fig. 3. Histogram (a) and normal probability plot (b) of the blast hole silver grades.
/
16-
/1
/1
14-
12-
/1
/1
._..10- :
c. /
q]ean
/
4- Jan
/
2-
/
0
>10 1.3 - 5 0.4 - 0 . 8 O r e ( > 1.3)
5 - 10 0 . 8 - 1.3 0 - 0.4 Total
Grade Classes
Fig. 4. Measures of central tendency calculated for the exhaustive data set and specified grade classes in o z t -1.
Ag oz/t
o,o - 0,4
[ ] 0.4 0,8
[] o.8 1.5
[] 1.3 - 5.o
[] 5.0 lO,O
(a) • .....
o,
~i
g
~
g ol
~i
g i
~!--4
. .~ t ) .~ ...........
-..... ~'~.......-_~+/ ....
:y!7 4
i.oooo ~~:~ ~ , : : , .::: : ,,,:~.
. . . . .--. ~ .... 1'4oooot
(b) I ei e
Fig. & The spatial distribution of silver grades on the 5220 bench; (a) block model coded according to grade
classes; (b) contours of silver grade at 0.5 ozt -~ contour interval.
shows no spatial clustering and conforms to a found to have negligible effect and is therefore
fairly regular pattern (Fig. 10), although a high not included.
proportion of drill holes are located within the
eastern ore zone.
Is it possible from a sample set that is biased Grade estimation and statistical comparison
toward high values to generate a simulated block
model that reflects the original blast hole The sample set is considered to be statistically
samples without spatially or statistically split- representative of the exhaustive data, although it
ting the sample set? To test this concept four is a small sample size (4% of the total). It is
different processes of grade estimation were used unlikely that the sample set will model the
to create assay block models for the 5220 bench, spatial variation in values accurately, especially
namely inverse distance, kriging, linear inter- given the sharp boundaries that exist between
polation and triangulation. Each method was grade zones. How accurate will estimated
restrained by search distances. The effect of block models be in providing a true picture
isotropy, extracted from the semi-variograms of of the grade distribution on the 5220 bench?
the blast hole samples, was applied only to the To evaluate the results (Tables 3 & 4) of the
inverse distance method. The power of the different grade estimation strategies four criteria
inverse distance method was also varied but were compared and assessed for replications.
74 T. M. BELL & M. K. G. WHATELEY
Fig. 6. Three-dimensional model of the blast hole silver grades showing the location of pronounced peaks in the
distribution of grade values.
(a) ,)
(c)
(d)
,,llllllllllllllllll
,,,,,,,,,,,,,,,,,,,,,,,,,,,
i
, , I : I I I I I I I ~ ' ~ Illill[lll[ll
,~llllllll:lllllllllllllllllll[lllllllllllllllllllllllll'
!!iiiiii!~iiiiiiii H ::'
:[iii[iiii]!!!iiiiii[i[[ii]iiiiiiiiiiiii!!l!l!][!I'
'IIIIIIIII ...................................
~iH~Lii[iii!![!!iii[[iiiiiiii[iiiiil!"
(e)
,~lllliiiii~iiiiiii2~'iiiiilllliiiiill
~,~:~
~'
Fig. 7. Indicator maps of Agoz t-~ at specifiedgrade boundaries; 0;) 0.4, (b) 0.8, (c) 1.3, (d) 5.0, (e) I0.0.
reasonably maintained although the percentage indicates that the extremes of the distribution
of blocks defined as ore has increased, mainly have been curtailed, thus the high grade cores
within the main eastern ore body. A high although maintained are less pronounced.
proportion of waste blocks will be flagged as
ore and to the west most of the ore would be E s t i m a t i o n o f error
mined as waste. Both linear interpolation and
triangles provide the best results in terms of ore The degree of error associated with each
waste definition. estimation strategy can be calculated by direct
The actual mean grade of the ore zone (Fig. comparison of each estimated block with the
l lb) is significantly overestimated by kriging actual mined block. Absolute errors can be
and inverse distance, and underestimated when calculated to give a + Ag difference. By calcu-
the search distance is increased. Triangles lating the square of the actual error the relative
provide the most accurate estimate (4.62 oz t-1) deviation from the actual can be ascertained.
compared with the actual (4.87oz t-l). The The measures of central tendency (Table 5) for
positive skew of all the models is significantly all estimations (mean and median) imply that the
reduced as high grade outliers become less majority of estimated blocks are only slightly
significant. Kriging and inverse distance pro- overestimated. The negative skew on the other
duce high variances similar to the blast hole hand implies a degree of underestimation
samples, and all methods except triangles particularly for the linear interpolated and
exaggerate the upper range of grade values triangulated models. The true picture is best
indicated by the higher median and upper illustrated by the histogram (Fig. 13) and
quartile. The low variance of the triangle model variance of absolute errors. The high variance
76 T. M. BELL & M. K. G. W H A T E L E Y
,10 ~
16 I
~ABOVE 8.0
e.o -8.0
4.0 -6.0
3.0 ---4.0
2.0 -3.0
i~l 1.0 -2.0
0.8 -1.o
:: 0.6 -0.8
0.4 -0,6
0.2 -0.4
BELOW 0,2
(a) 0 250 500 750 1000
,10 ~
~ABOVE 8.0
6.0 -8.0
4.0 -6.0
3.0 -4.0
2,0 -3.0
1.0 -2.0
:,~,~::, 0.8 - 1,0
'h .-::-:=:-: 0.6 -0.8
0.4 -0.6
0.2 -0,4
BELOW 0.2
(b) 0 250 500 750 1000
Mean Ag oz/t !
.................. A
StandardDevi=ion i,
4
i
]
I 'i
]
"\
/ \
o
/ \
f ~
/ ...........
x
t
/
'i
/ ......... \ Z
I I
00 2;0 ' 3001 ' 4 ; 0 ' 5 ; 0 . 600
. . . .700 8 ; 0 ' 9 ; 0 ' 10'00 1100
150 250 350 450 550 650 750 850 950 1050 1150
(c) Distance(m)
EVALUATION OF GRADE ESTIMATION TECHNIQUES 77
Mean Ag oz/t
Standard Deviation
O 4-
/
~ //"
100 200 300 400 500 600 700 800 900 1000 1100
150 250 350 450 550 650 750 850 950 1050 1150
(d) Distance
Fig. 8. Window statistics based on transformed grid oriented east-west with 30 m overlapping moving window.
(a) Contours of mean Ag oz t-1, (b) contours of standard deviation, (c) and (d) profiles 1 and 2 respectively of the
window mean and standard deviation showing the proportional effect and highlighting areas of expected high
error.
of the kriged and inverse distance models and of samples. The calculation of a point or block
the high proportion of extreme errors illustrate model from a sub set of the blast hole samples
that both techniques result in a proportion of (e.g. drilling results) will always result in a
blocks with high magnitudes of error, compared certain degree of overestimation because of the
with models derived from linear interpolation high variability and strong positive skew to the
and triangles. The error maps (Fig. 14) provide original data. Methods that reduce the magni-
further support with inverse distance (Fig. 14a- tude of error tend to be those that are simple
c) and kriging (Fig. 14d) creating almost equal (linear interpolation and triangles). Such meth-
proportions of over and underestimated blocks, ods were found to reduce the variance only to
causing a balancing of errors, but the magnitude the extent of minimizing the influence of high
of overestimation being greater. Increasing the grade outliers, which was acceptable. The more
search distance (Fig. 14 b-c) creates more over- complex techniques (kriging and inverse dis-
estimation whilst the linear interpolated (Fig. tance) exaggerated the variance by inappropri-
14e) and triangulated (Fig. 14f) models over- ately weighting extreme values but at the same
estimate low values and underestimate high time smoothing the inter quartile range of the
values but the magnitude is small. The statistics data. Global estimates are best achieved from
of the squared errors and the error fluctuation methods (linear interpolation and triangles) that
graphs support the above premise (Fig. 15). gave equal or reduced weighting to high grade
outliers and honoured the spatial distribution of
Conclusions the data points. Correct local grade estimates are
clearly dependent upon variability and spatial
A sample from a given population, provided distribution, quantitatively captured by the
that it is not biased, will generally reflect the anisotropy of assay values. Anisotropy applied
statistical nature of the population. Estimates to estimating is essential in maintaining statis-
derived from a sample data set should always tical and spatial structures. Local estimates for
maintain the statistical characteristics of that set mine planning and scheduling can be drastically
T. M. B E L L & M . K. G. W H A T E L E Y
Gamma (h)
13-
/
11-
3
/ +
-¢-
+
+
1
+
0 + + + ,
Gamma (h)
13-
f _~
j +
q-
12-
+ CO = 1.3C= 11.8A=310.0
11-
/ +
+
+
+
+
+
//
8
(b) 0
0 1~)0 2'00 3~)0 4~0 5~)0 6'00
Distance
Gamma(h)
11-
//f+
+
CO = 1.0C= 8.1A=130.0
+
+ +
+ +
(c)
0 1()0 2(20 3'00 4'00 5'00 600
Distance
EVALUATION OF G R A D E ESTIMATION TECHNIQUES 79
Gamma (h)
11- /~
6 /
3
2
1
+ + + ÷ + +
Gamma
11-
10- ,
/~ ÷
8 -~ + + + + + ÷ +
7 / ÷
÷
÷
CO = 1.5C= 8.2A=110.0
6 /
4
3
2
1
(e) 0
O lbO 2b0 3o0 400 5bo 6~1o
D~tance
Anisotropy Factors
1.4 / 3.9
/ ~ 1.6 ~~,a~-~
1.0
EllipseofAnisotropy
(f) ( /
Fig. 9. Spherical modelled semi-variograms for the silver assays of the 5220 bench. (a) N-S direction, ~ ) N E - S W
direction, (e) E - W direction, (d) S E - N W direction, (e) omnidirectional, (f) ellipse of anisotropy and anisotropy
factors.
80 T. M. BELL & M. K. G. W H A T E L E Y
I I I I I I I I I I
o
0 Conventionalpercussiondrilling
O Reversecirculationdrilling O O
N 10200 Diamonddrilling (9 (9 -
(9 ~ Outlineof final pit Q ~ f ' - ( 9 ~ O O (9
N 10000 (9
N 9800
o (9 (9
o
N 9600 o
o (9 (9
N 9400 (9 O (9 O (9 (9 -
(3 O O O
N 9200 O (3
0 200 ft
I
O 0 5~0m
I I 1 1 I I I I I I
E 8000 E 8200 E 8400 E 8600 E 8800 E 9000 E 9200 E 9400 E 9600 E 9800
Fig. 10. Location of drill holes and intercepts with the 5220 bench. Grades were simulated by linear interpolation
from a triangulation model of the blast hole samples.
Table 3. Statistics for different grade estimation strategies calculated for the 5220 bench (total data set)
Table 4. Statistics for the ore population (> 1.3 oz t-1) from different grade estimation strategies
2.5~ 14 7- -25
2- 1 -12 6. . . . .
-2O
-10 5. . . .
1.5- -15
~4----
-10
2. . . .
0.5-
1
el I i i
lID 'D (330 m) Krige lID ' lib 330 &) Krige
1/D (120 m) Linear Triangle 1/D (120 m) Linear Triangle
A r i t h m e t i c Mean
Variance
.............
Blast Hole Mean
Fig. 11. Calculated mean grade estimates and variance for different estimation processes. (a) Global population,
(b) ore population > 1.3 oz t-1.
82 T . M . BELL & M. K. G. W H A T E L E Y
. :: .::ii:!i ~.:
~9 o,/t
~i2~iL ~ -- ~ .......
~ >,oc,
~E?2o
(a) (b)
II ~,oo
(c) (d)
(e) (f)
Fig. 12. Block models of estimated grade values. (a) Inverse distance with an 80 m maximum search distance, (b)
inverse distance with a 130 m maximum search distance, (e) inverse distance with an 330 m maximum search
distance, (d) kriged model, (e) simple linear interpolation, (f) triangulation model.
E V A L U A T I O N OF G R A D E E S T I M A T I O N T E C H N I Q U E S 83
II I
0o 1 II
400-
300-
,~ Inverse Distance ID
EL 200 . . . . "////// 120m Search
• ~///.///ID. 330m Search
Linear
O ~ j ~ ~ r f ~ j ~ ~ ~ Triangles
-10 -8 -6 4 -2 0 2 4 6 8 10
-9 -7 -5 -3 -1 1 3 5 7 9
Error (oz/t)
Fig. 13. Histogram of absolute errors for the different estimation processes.
(ai) (aii)
(bi) (bii)
(ci) (cii)
1 Std. y 1 St.d.
(di) (dii)
E V A L U A T I O N OF G R A D E ESTIMATION T E C H N I Q U E S 85
(ei) (eii)
(fi) (fii)
Fig. 14. Error maps showing (/) blocks that are over or under estimated, (i/) zones of high error classed by
exceeding 1 standard deviation of the mean absolute error. (a) Inverse distance with an 80 m maximum search
distance, (b) inverse distance with a 130 m maximum search distance, (c) inverse distance with a 330 m maximum
search distance, (d) kriged model, (e) simple linear interpolation, (f) triangulation model.
40 •
2- 20
b
A t
P)
~b
O--- m
s
o
~o
~o
< -1-
-10t
-20
~3- 1/rD r
T
1/D (330 m)
T T
Krige
r 40 1~ r
r
1/D (330 m)
"[
~drige
T
1/D (120 m) Linear Triangle 1/D (120 m) Linear Triangle
(a) (b)
Fig. 15. Graphs representing the calculated mean (tick) and expected fluctuations (vertical bar) about the mean of
(a) absolute errors, (b) standard error.
86 T. M. BELL & M . K . G . WHATELEY
w r o n g if the spatial peculiarities are destroyed, BELL, T. 1989. Ore reconciliation and statistical
a l t h o u g h the global estimate can be correct. Yet evaluation of the Tt4nity Silver Mine, Pershing
County, Nevada. MSc Dissertation, University of
the calculation of a given ore envelope at a
Leicester.
stated cut off will be imprecisely located and ISAAKS, E. H. & SRIVASTAVA, R. M. 1989. An
subsequent global estimate of ore grade material Introduction to Applied Geostatistics. Oxford
will be i n c o r r e c t if spatial v a r i a b i l i t y a n d University Press.
structure are not h o n o u r e d . JOHNSON, M. G. 1977. Geology and mineral deposits
of Pershing County, Nevada. Nevada Bureau of
Mines and Geology. Bulletin 80.
WHATELEY, M. K. G. 1992. The evaluation of coal
References borehole data for reserve estimation and mine
ASHLEMAN, J. C. 1988. The Trinity Silver Deposit, design. In: ANNELS, A. E. (ed.) Case Histories and
Pershing County, Nevada. Unpublished Field Methods Mineral Resource Evaluation. Geologi-
Guide. cal Society, London, Special Publications 63, 95-
106.
Optimal open pit design: sensitivity to estimated block values
P. A. D O W D
Department o f Mining and Mineral Engineering, University o f Leeds, Leeds L S 2 9JT, UK
Abstract: This paper discusses two important, and often overlooked, aspects of
optimum open pit design: the information and support effects. Pit designs are
ultimately based on estimated block grades and, as such, their optimality can only
ever be approximate; as the errors of estimation of the block grades increase the pit
design will deviate more and more from true optimality. Estimation errors depend on
the amount of data available (information effect) and on the size of the block to be
estimated (support effect). There is a lower limit to the block size used in grade and
revenue block models for pit design and this lower limit is determined by the drilling
grid. The use of blocks which are significantly smaller than the drilling grid will
produce block models which will yield erroneous pit designs. Geostatistical
simulation is used to quantify these effects for a particular case and to demonstrate
the most effective way of dealing with small selective mining units at the planning
stage.
Optimal open pit design is essentially a computer estimated from different drilling grids and
based implementation of an algorithm which is compare these estimated 'optimal pits' with the
applied to a three-dimensional block model of true optimal pit based on the true grades of the
an orebody. smallest selective mining unit.
Almost all optimal open pit design algorithms,
with the exception of elementary methods Block size
applied to some stratiform deposits, are applied
to a regular, fixed, three-dimensional block Sensitivity to block size is perhaps one of the
model of the orebody. The orebody is sub- most misunderstood concepts in optimal open
divided into regular blocks and a value is pit design. Much has been written about the
estimated for each block. This value is almost choice of block size used in block models for
always the net (undiscounted) revenue that optimal pit design (Whittle 1989; Cai 1992) but
would be obtained by mining and treating the the discussions seem to revolve around the
block and selling its contents. Some methods, ability of different block sizes to describe the
such as parameterization (Francois-Bongarqon geometry of the pit and the orebody. There is an
& Guibal 1982; Francois-Bongargon & Mare- obvious advantage to be gained in the decreased
chal 1976; Matheron 1975a, b,c), use grade computing time which comes from a larger block
values in the block model. Stuart (1992) size; the disadvantage of the larger block is the
proposes an irregular three-dimensional model loss of definition of grade (and hence revenue)
in which the orebody is represented by a series of variations within the orebody. However, at the
arbitrary geometrical solids. Whilst such a pit design stage, such small scale definition of the
model is a useful way of representing highly orebody is usually illusory simply because it
irregular and complex-shaped stratiform depos- cannot be inferred from the relatively sparse
its it is doubtful whether sophisticated computer data available at the time.
algorithms are really necessary for the design of The overwhelming restriction on block size is
optimal pits in such cases. the amount of data available to estimate the
Whatever block values are used in optimal pit grades of blocks. The numerical grade, and
design they are based on estimated grade values hence revenue, values assigned to blocks are
and the reliability of these estimates depends on values that have been estimated from the
the amount of data available and the variability available sample data and they necessarily have
of the mineralization. an error associated with them. In general, for a
The purpose of this paper is to assess the given amount of data, the smaller the block size
effects of sparse data and of block size on the the greater is the error of estimation of its grade
design of open pits. By using a geostatistically and therefore the greater the unreliability of the
simulated orebody it is possible to design pits on revenue block model used in pit optimization.
the basis of different block sizes each with grades The consequences of ignoring this discrepancy
pagen > From Whateley, M. K. G. & Harvey, P. K. (eds), 1994, Mineral ResourceEvaluation II: 87
Methods and Case Histories, Geological Society Special Publication No. 79, 87-94.
88 P.A. DOWD
.............. _vV
! "-\
i I
i : \"
, I I ~
' ~" I ~
Fig. 1. The influence of support on recovery illustrated for two volumes v and V where V > v.
/r t
Real block qrades
/ \
/ Estimated block qrades
//
- - ,,., ,, , , ,, ~.-
,~-
Fig. 2. Effect of information on recoverability: conversion of histograms to grade/tonnage curves would give
similar effects to those shown in Fig. 1.
between true and estimated block grade (and are significantly smaller than this cannot be
revenue) values can be disastrous (David et al. estimated with sufficient accuracy to provide a
1974; Dowd & David 1976). reliable block grade/revenue model on which to
As a general rule of thumb the horizontal design the pit. An alternative approach (David
block dimensions should be limited to the size of et al. 1974; D o w d & David 1976) is to optimize
the drilling grid; blocks with dimensions which the pit design on the basis of conditionally
OPTIMAL OPEN PIT DESIGN 89
I 5 )
(
Fig. 3. Directed graph representing a two-dimensional model. Nodes represent blocks and arcs define mining
constraints.
simulated grades of smaller blocks. The small Support effect and information effect
scale block model of the orebody can be
simulated a number of times and an optimal In geostatistical applications the volume on
pit can be designed for each simulation thereby which grades are measured and/or estimated is
providing a probabilistic answer to a problem referred to as a support. All grades are values
which should, more realistically, be posed as averaged over a support. The volume-variance
probabilistic. relationship expresses the most significant effect
The limitations on block dimensions will also of measuring grades on different supports: the
limit the number of blocks in the orebody model. variance of a set of grades is inversely propor-
For example, a 1 km × 1 km area drilled on a tional to the volumes on which they have been
30mxl5m grid to a depth of 5 0 0 m is measured. The major consequence of this
effectively limited to a 110000 block orebody relationship for mining applications is the effect
model for blocks with a vertical dimension of it has on recoverability as illustrated in Fig. 1.
10m and a 220000 block orebody model for A block grade model for selective mining units
blocks of 5 m height. On the basis of the (e.g. 5 m × 5 m × 5 m ) will more accurately
information available it is illusory and highly reflect mining recoverability than will a block
misleading to subdivide the model into smaller grade model for large planning blocks (e.g.
blocks to account for supposed variations in 3 0 m × 1 5 m × 10m). In addition, the former
grade and geology. It may be argued that, during will yield a more accurate revenue block model
mining, ore and waste are discriminated on the which will in turn yield a pit design which will be
basis of much smaller selective mining units (e.g. closer to the true optimum.
planning blocks may be 30m x 15m × 10m and However, true grades are not known prior to
selective mining units may be 5 m x 5 m × 5 m). mining and the grade models used for evaluation
If this is so then the correct approach is either and design are estimated block grade models.
via simulation or by estimating recoverable The more information available the closer the
reserves for selective mining units within each estimated block grade models will be to the
planning block by well-documented geostatisti- corresponding true block grade models. The
cal methods. In the latter case there are two major difference between block grade models
estimates for each block, tonnage above cut-off based on different amounts of information (e.g.
grade and mean grade of tonnage above cut-off different drilling grids) is the variance of the
grade, which are then used in the calculation of estimated grade values as shown in Fig. 2. The
net monetary value of the planning block. consequence of this information effect in mining
90 P.A. DOWD
applications is a change in recoverability. some 20 years ago it has not fulfilled its early
It is precisely these two effects, information promise as a powerful tool in the mining
and support, which cause the problems in industry. There are two principal reasons for
assessing supposedly o p t i m a l open pit designs. this: firstly there has been some confusion on the
All 'optimal' open pit designs are based on part of many end-users (and some geostatisti-
estimated values of a given support and, as such, cians) as to the meaning and significance of
their optimality is always open to question. One simulated models and secondly, there are some
way of assessing the impact of the information shortcomings in the turning bands method
and support effects on the design of open pits which, although recognized early on, have been
is via geostatistical simulation of orebodies slow to be acknowledged and rectified.
(Journel & Huijbregts 1976). An orebody can Sequential methods, proposed by Journel &
be simulated to provide 'true' block grade Alabert (1989, 1990), are an application of
models for various block sizes; the grades of Bayes' theorem based on Devroye (1986). The
these same blocks can be estimated from n dependent events A i , i = 1 . . . . n can be
different drilling/sampling grids to provide sequentially simulated using the expression:
corresponding estimated block grade models
for each block size. Optimal open pits can then P ( A j ,A2 . . . . An) = P ( A , I A1 . . . . An-l) ×
be designed for each true and estimated block
grade model and the results can be compared. P(An-11A1, . . . An-2) . . . P ( A 2 IA~) × P(A1)
Actual Values
.............................
...~.~.~...~..~...~...........~..~....~..~...........~...~...~.~..~...~.......~...........`.....
I--1 ABOVE 7
II 6-7
II 5-6
II 4-5
3-4
2-3
1-2
0- 1
I I BELOW 0
Fig. 4. Optimal open pit design for block m o d e l 1.
OPTIMAL OPEN PIT DESIGN 93
Estimated Values
................
ii~iiiiiilililii~................
iiil
I [ABOVE 7
6-7
5-6
4--5
3-4-
l 2--3
1-2
O- 1
BELOW 0
Fig. 5. Optimal open pit design for block model 2.
illustrate the effects of using different block geostatistics. Computers and Geosciences 17,
sizes to design pits. Allowing for edge blocks, 1481-1500
1992. Geostatistical ore reserve estimation: a
the 5 m × 5 m × 5 m block grade m o d e l con-
case study in a disseminated nickel deposit. In:
tains more than 160000 blocks whereas the ANNELS, A. E. (ed.) Case histories and methods in
3 0 m × 1 5 m x 1 0 m m o d e l c o n t a i n s approxi- mineral resource evaluation. Geological Society,
m a t e l y 5000. As c o m p u t i n g t i m e for the London, Special Publications, 63, 243-255.
L e r c h s - G r o s s m a n n algorithm is approximately - - - & DAVID, M. 1976. Planning from estimates:
proportional to the square of the n u m b e r of sensitivity of mine production schedules to
blocks the 5 m × 5 m × 5 m block grade model estimation methods In: GUARASCIO, M.,
will incur a significantly higher computing cost DAVID, M. & HUIJBREGTS, C. D. (eds) Advanced
and yield results which have doubtful validity. geostatistics in the mining industry. NATO ASI
The impact o f the information and support SERIES C: Mathematical and Physical Sciences,
24, Reidel Pub. Co. Dordrecht, Netherlands, 163-
effects on pit design is clearly d e m o n s t r a t e d by
183.
the examples presented here. In particular, it is -- & ONUR, A. H. 1992. Optimizing open pit design
futile to subdivide the orebody into blocks which and sequencing. 23rd Symposium on the appli-
are significantly smaller than the drilling grid in caiton of computers and operations research in
an attempt to model the perceived variability of the mineral industries (APCOM). AIME, Little-
grades or orebody shape. ton, Co., 411-422.
The best way of incorporating the effects of FRANCOIS-BONGARI~ON, D. & GUIBAL, D. 1982.
selective mining units (smu) on pit design is to Algorithms for parameterising reserves under
use recoverable block grade models based on different geometrical constraints. 17th Sympo-
sium on the applicaiton o f computers and
one o f the m a n y geostatistical t e c h n i q u e s operations research in the mineral industries
available for estimating the smu-recoverable (APCOM). AIME, New York, 297-310.
reserves of a planning block. In the example -- & MARECHAL, A. 1976. A new method for
presented here each block in the m o d e l is optimum pit design: parameterisation of the final
3 0 m × 15m x 10m and is accompanied by the pit contour. 14th Symposium on the application
e s t i m a t e d g r a d e - t o n n a g e curve based o n a o f computers and operations research in the
5 m x 5 m × 5 m smu. The smu effect is included mineral industries (APCOM). AIME New York.
at no additional pit design computing cost; there JOURNEL, A. G. & ALABERT, F. 1989. Non-gaussian
is, however, an additional computing cost for the data expansion in the earth sciences. Terra Nova,
1, 123-134.
estimation of the block grade model. -- & -- 1990. New method for reservoir mapping.
Simulation is a powerful means of assessing JPT February 1990, 212-218.
the impact of information and support effects on -- & HUIJBREGTS, C. 1978. Mining Geostatistics.
pit design. It can also be used for other forms of Academic Press, New York.
sensitivity and risk analyses by varying geo- LERCHS, H. & GROSSMANN, I. F. 1965. Optimum
statistical and geotechnical parameters, costs, design of open pit mines. CIMBulletin 58, 47-54.
prices, recoveries, selective mining units and MATHERON, G. 1975a. Param6trage des contours
blasting patterns. optimaux. Note G6ostatistique No 128, Centre
de G6ostatistique et de Morphologie Math6ma-
tique, Internal Report N-403, Fontainebleau,
References France.
1975b. Compl~ments sur le paramdtrage des
CAI, W. L. 1992. Sensitivity analysis of 3-D model contours optimaux. Note G6ostatistique No. 129
block dimensions in the economic open pit limit Centre de G6ostatistique et de Morphologie
design. 23rd Symposium on the application o f math6matique, Internal Report N-401, Fontaine-
computers and operations research in the mineral bleau, France.
industries (APCOM). AIME, Littleton, Colorado, 1975c. Le param~trage technique des reserves.
475-486. Note G6ostatistique No. 134, Centre de G6osta-
DAVID, M. 1972. Grade tonnage curve: use and misuse tistique et de Morphologie math6matique, Inter-
in ore reserve estimation. Transactions o f the nal report N-453, Fontainebleau, France.
Institution o f Mining and Metallurgy 81, 129-132 STUART, N. J. 1992. Pit optimization using solid
, DOWD, P. A. & KOROBOV, S. 1974. Forecast- modelling and the Lerchs-Grossmann algorithm.
ing departure from planning in open pit design International Journal o f SurFace Mining and
and grade control. 12th Symposium on the Reclamation 6, 19-30.
application o f computers and operations research WHITTLE, J. 1989. The facts and fallacies oF open pit
in the mineral industries (APCOM). Colorado optimization. Whittle Programming Pty Ltd,
School of Mines, 2, F131-F142. North Balwyn, Victoria, Australia.
DEVROYE, L. 1986 Non-uniform random variate
generation. Springer-Verlag, Berlin.
DOWD, P. A. 1992. A review of recent developments in
Dilution in underground bulk mining: implications for production
management
M. J. S C O B L E a & A. M O S S 2
1McGill University, Montreal, Quebec, Canada H3A 2A7
2Golder Associates Ltd, Vancouver, British Columbia, Canada V5C 6C6
The recession of a decade ago caused Canadian tion. Until technology provides the tools to
underground mines to adopt workforce rationa- study and understand the basic processes more
lization, mechanization and new, predominantly effectively then design and control will tend still
bulk, mining methods in efforts to improve to be based on empirical techniques and
productivity and reduce costs. The advent of the intuition.
current recession saw a response which has Production control traditionally has been
turned more to new technology and total based on weight of rock rather than weight
quality improvement (Loring et al. 1992). Key of metal hoisted. This tended to encourage
measures of quality are recovery and dilution. inefficient mining practice. Despite dilution's
Recovery relates to the effectiveness of mining significance, most mines are unable to collect
design, measured by the proportion of the adequate data to calculate its value with any
known orebody to have been recovered. Dilu- precision, whether to m o n i t o r and control
tion relates to mining efficiency, measured by the production or to optimize stope design. Recent
proportion of waste introduced as part of the developments in underground communications
mining process. The two measures are inter- now offer the potential to improve dramatically
dependent: e.g. a particular recovery target may data collection, transmission and analysis of
only be attainable at the expense of a certain mine production monitoring and control sys-
level of dilution. Mine design is a process of tems. Such communications capability needs to
compromise involving dilution, recovery, pro- be exploited for quality improvement through
ductivity and cost criteria. Recent metal price the monitoring and control of dilution. The task
reductions have underscored further the need to remains, however, to identify the data, sensors
understand and thence minimize dilution. and analysis required for the design of such
Though excessive dilution and lack of recov- systems. A more scientific approach to mine
ery are two of the commonly quoted reasons for production management is now being sought.
mine failure, there has been limited effort until This paper attempts to clarify the nature of
recently by industry to understand better the dilution in bulk mining; its definition, causes and
factors that control dilution and recovery. This impact. It examines the principal controlling
is due to the complexity of the problem, poor factors associated with the exploration, devel-
accessibility to data and the level of judgement opment and stoping phases. The integration of
required for ore estimation and dilution predic- dilution monitoring and control into future mine
From Whateley, M. K. G. & Harvey, P. K. (eds), 1994, Mineral Resource Evaluation II: 95
Methods and Case Histories, Geological Society Special Publication No. 79, 95-108.
96 M.J. SCOBLE & A. MOSS
ORE LOST
DILl'ION
AFTER THE contained within geological limits as specified by
any particular cutoff grade. It can be considered
to account for the dilution arising from internal
waste, errors in ore estimation and from the
ORE LOST IN P l L ~ R S
DIL~ION
AFTER THE DESIGN OF M I N I ~
~
or mineable reserve, which is the ore contained
THE MINED I ' O E ~ S I T "
within the designed mining limits. This is
ORE DRILLED. BLASTED B ~ LOST
established during the design process and
accounts for the limitations of the mining
method, i.e. the recovery and dilution which
[ ~ ~ "I~'~FEEDTOTHE~NCE~'TOR are unavoidably associated with the particular
DIL~ION F R ~ OVERBREAK LOADED AND method designed. This dilution may be termed
TRANSPORTED TO THE CONCENTRATOR the planned dilution. It arises from the material
Planned
Ore reserves and dilution Dilution (B)
! I Development
Recovery -~- ~. ~ "~
" \ I \
_ ~ - ~. I ~ / ~ ~ . ~ oiluti°n ..... \
S TA GE OF MINE
Fig. 3. Concept of dilution as a function of mine age (after HBM & S 1990).
determined by the selectivity inherent to the mill. It is based on the mining reserves adjusted
particular mining method and the complexity of according to the ore loss and dilution expected
the orebody morphology. The variability in in the mining process and tends to be used for
planned dilution and recovery according to short term production forecasting. Ineffective
stoping method is evident in Table 1. These are drilling and blasting may result in fragmentation
broad estimates only; precise prediction of within or beyond the mining lines, i.e. under-
planned dilution is difficult and related to site- break or overbreak. Unplanned dilution is that
specific factors. additional material below cutoff grade that is
derived from three possible sources: blast over-
Table 1. Quality ranges of stoping methods break, which may arise directly from the
inadvertent fragmentation of rock outside the
Stoping method Recovery Planned dilution % mining lines; or secondly, the sloughing of
unstable wallrock, related to the following
Blasthole 90-95 5-20 factors: rockmass geomechanical quality and
Room-and-pillar 75-85 15-20
stresses, blast damage and time. Thirdly, backfill
Shrinkage 90-95 10-15
Cut-and-fill 93-97 10-30 may inadvertently be excavated from the stope
Sublevel caving 80-90 15-20 (in cut-and-fill stoping), or it may occur as blast
Block caving 80-90 15-20 overbreak or subsequent slough in any adjacent
backfilled stope walls (in delayed fill blasthole
stoping). Unplanned dilution is a measure of the
Alternatively, the following relationship has exploration, design and practice quality.
been suggested by O'Hara (1980) for preliminary Mine design often requires compromise
estimation of planned dilution as a percentage, between costs, productivity, recovery and
D, according to orebody width (W) and dip (X): planned dilution. The economic significance of
dilution is such that it is imperative that it be
D = 100/(K (W °5 sin (X))) monitored accurately and that mining tactics be
established to ensure the means exist to adapt
where K varies according to stoping method (i.e. and minimize unplanned dilution. Whilst some
blast hole = 100; shrinkage = 60; cut-and- planned dilution may be claimed to be unavoid-
fill = 45; room-and-pillar= 70). If stope walls able, mining should aim to avoid any unplanned
are regular and competent then dilution was dilution. Total dilution is the sum of planned
estimated to be only 0.7 of the above, whereas if and unplanned ilution, i.e. all waste beyond the
the walls are weak or irregular then it could be as defined orebody (the mining reserve). Such
high as 1.5 times these values. waste may have a grade, albeit sub-cutoff.
The final modification to the underground Overpull is the ratio of the actual tonnage of
resource creates what may be termed the material (ore and waste) extracted from a stope
extraction reserve. This is the tonnage and to the tonnage in the mining reserve.
grade of the ore expected to be actually As a mine ages, from pre-production devel-
extracted from the stopes for delivery to the opment through primary stoping to pillar
98 M.J. SCOBLE & A. MOSS
recovery and eventual mine closure, then the pulse is transmitted, the unit then listens using
tendency will be for variation in dilution and the coil as a receiving antenna. Almost all metals
recovery (Fig. 3). During early mining, dilution and some minerals have been found to be
can arise from processes associated with devel- detectable by such pulse indications. A 'multi-
opment, lack of knowledge of the orebody, and probe' logging system was successfully used to
the general learning curve associated with locate ore boundaries in open stope blast holes
operating a mine in a new environment. As at the Zincgruvan and Malmberget mines (Lule~.
primary stoping evolves then dilution should University 1991). The Geological Survey of
stabilize. In the final production phase, as pillar Canada is similarly developing multiparameter
recovery intensifies and ground conditions borehole logging technology (Killeen 1991). It
deteriorate, then dilution can be expected to has also developed a new spectral gamma-
increase at the expense of recovery. This gamma borehole logging tool intended to make
influence of age on the ability to control in situ assays of mineralization. Further poten-
dilution should be taken into account when tial relates to ground-penetrating radar in
planning the mining sequence. boreholes for defining structure and cavities.
Seismic and radiowave tomography is also being
Quality factors researched for three-dimensional mapping in
underground mines. Another supplement to
In addition to the complexity of the deposit, exploration data is from the monitoring and
dilution will be controlled by the quality of interpretation of blast-hole drilling performance
exploration, mine design and stoping practice. It parameters; trials have attempted to locate ore-
may therefore be considered in terms of the level waste contacts and define ore grades (Schun-
of quality achieved within these three categories. nesson 1990).
According to Pentilla (1989) geostatistics can
Exploration quality prove that there is an exploration drilling layout,
unique to each deposit, beyond which more
The exploration quality factors relate to the drilling will not improve the precision of the ore
quality of ground characterization, through estimation. It is also the view that usually much
mapping, drilling and sampling intended to more exploration is required to determine the
establish: ore boundaries accurately. Each deposit justifies
early resolution of a specific plan to delineate
• the grade distribution, ore limits and ore adequately the ore-body morphology, in addi-
body morphology; tion to the conventional tonnage and grade
• the rock density distribution; estimation.
• the petrological, structural and geomecha- Studies at the Viscaria copper mine showed
nical characteristics of the rockmass; how dilution and ore loss were influenced by
• the selection of cutoff grade and ore geological complexity in horizontal section as
classification. well as the availability of exploration informa-
tion (Puhakka 1990). Planned dilution was seen
Ore delineation is generally accomplished by to decrease from 15% to 5% when drilling was
mapping, sampling and analysis of development intensified from 25 to 7.5m spacing between
excavations and core from diamond drilling. The sections. It was less for ore bodies with complex
analysis of drill chippings or sludge, typically at irregular wall geometries than for those with
50% of the cost of core drilling, is a good source straight regular ore boundaries. In evaluating
of local supplementary data from exploration of the economics of different spacings, assuming
blast-hole drilling. These holes also provide the unplanned dilution was 10%, it was found that
opportunity to undertake borehole geophysical there was an optimum spacing of 12.5 m.
logging to characterize boundaries and weakness In order to evaluate the accuracy of ore
zones, ore types, grade distribution and waste (if location and its relation to dilution in vertical
mineralogy provides sufficient contrast between section, Inco's Thompson Mine studied geolo-
ore types and waste) and rockmass quality ahead gical sections mapped in detail from old cut-
of excavations. For example, Inco Ltd and and-fill stopes, representative of its five major
Fisher Ltd have jointly developed a borehole orebodies (Braun 1991). These sections enabled
tool to map ore intersections in blast holes (Inco construction of artificial drill intersections over a
pers. comm., 1992). It can be used in wet or range of 34, 17, and 8.5 m vertical spacing. These
break-through holes up to 50m long, at dips intersections were given to mine geologists to
from --45 to - 9 0 ° . It transmits high energy interpret ore outlines, which then were given to
magnetic pulses from a coil at 100 Hz. After each mine engineers to establish mining lines and to
DILUTION IN U N D E R G R O U N D BULK MINING 99
ACTUAL HYPOTHETICAL
CUT ANO FILL SUBLEVELS AND
GEOLOGICAL OIAMOND DRILL HOLES
SECTION
8UBLEVEL ~ ~.
~ ~ N N . ~ ~ ACTUAL CUT t F,LL
• C,°AL ~ ~ O ° T L , N E
HYPOTHETICAL
SUBLEVELAND r'c-'-~J / /~\
DIAMOND
8UBLEVEL
IO0"FOOT INTERPRETATION
INFORMATION SUPERIMPOSED ON
INTERPRETATION A C T U A L ORE OUTLINE
"L"lm
u.. ~G ~ . INTERPRETA ~ ' ,.
50-FOOT
INFORMATION
INTERPRETATION
25-FOOT
INFORMATION
INTERPRETATION
..,
~ACTUAL E
i
,.imG ~ / ~ f~'(' RILL .OLES INTERPRETATION~ . ,
estimate unplanned dilution. Figure 4 shows this productivity. For example, in changing from
procedure on a typical cross-section. It shows conventional 50 mm diameter blast-hole stoping
how ore loss (not drastically affected here) and to 165 mm diameter in-the-hole (ITH) blast-hole
planned dilution (significantly affected) may stoping, Heath Steel Mines Ltd in New Bruns-
vary according to information density. Calcu- wick reported that: stope development costs
lated average ore contact accuracies varied from decreased 5%; drilling yielded 6.2 t per m (ITH)
2.3m on either side of the orebody (34m versus 0.7 t per m (conventional); total drilling
spacing) down to 0.9m (8.5 m spacing). The and blasting costs per tonne improved 60%
average planned dilution varied from 52% (34 m (Ladner 1979). If, however, unplanned dilution
spacing) to 43.5% (8.5m spacing); the prior, is increased because of blast damage, drilling
actual cut-and-fill dilution had averaged 33%. inaccuracy or wall instability then the economic
The ore loss ranged from 9.4% (34 m spacing) to impact of the dilution that results must be
3.0% (8.5 m spacing). Using these results it was matched against the potential productivity and
seen that intensifying the spacing from 34 to cost benefits to determine the optimum design.
8.5 m resulted in an average reduction of 8.5% in The ore-body at the Whalesback Mine, for
dilution and 6.4% in ore loss. This translated, example, was considered to justify high dilu-
for a typical 33000t stope block, to a revenue tion, in order to achieve 100% recovery
benefit of $98 000 (the value of the ore lost plus (Graham 1968). Experience indicates that 1 m
the savings from avoiding the costs of mining of dilution due to blasting overbreak in blast-
and processing the waste). This was equivalent hole stopes is typical, with more in narrow ore
to 5 to 10 times the cost of normal 8.5 m spaced bodies (due to the effects of confinement). Blast
drilling). An important point made in conclusion damage at the slot tends to be greater due to the
was also that such an analysis, if undertaken higher powder factors required. Any damage
early in the planning of an orebody, could assist initiated at the slot tends to unravel from the
in the design of the development layout, so as to hanging wall as the stope is mined out. As an
also meet the requirements of the intended additional precaution, slot raises should be
exploration strategy. driven away from the hanging wall. There is
much interest in reducing blasting overbreak and
Mine design quality potential sloughing by using low density explo-
sives. The relative merits of vertical retreat
The mine design quality factors relate to the stoping with large diameter ITH drilling versus
effectiveness in designing the following: slot-and-dash stoping with tophammer and tube
drilling are currently a design issue. In narrow
• stoping method, sub-level interval, stope- stoping areas where stress-related hole closure
pillar layout, equipment, backfill; dictates the use of larger diameter blast holes,
• stope design (geometry, dimensions, se- and thus a high powder factor, column charges
quence, support-type, density, location); of low density explosives, e.g. polystyrene/Anfo
• drilling-blasting design (blasthole pattern, blends or low density nitroglycerin based
diameter, sequence, explosive type and slurries, have been replacing current products.
distribution). Sloughing from exposed stope surfaces will
contribute to dilution and can limit recovery.
The selected mining method and equipment The benefits of mining and backfilling at higher
will govern the extent of both planned and and consistent rates, minimizing wall exposure
unplanned dilution. The design of the sub-level life, are well recognized for dilution and ground
interval is a trade-off between the cost and time control. The size, geometry and sequence of
required for pre-production development and stoping, together with support requirements, are
the cost benefit of mining more selectively. Both design variables that are the subject of rock
reducing the sub-level interval and increasing the mechanics study. Three-dimensional, numerical
span of the drill drifts can improve quality in: modelling techniques (based on boundary
the knowledge of orebody morphology; the element, finite element and displacement dis-
control over drilling and blasting; and the continuity methods) are being increasingly used
responsiveness of mining lines to ore-body to evaluate the influence of such stope design
complexity. These quality improvements are variables on the redistribution of rockmass
more pronounced as the ore-body morphology stresses (Grant et al. 1993; Quesnel & Chau
becomes more complex in vertical section. 1993; Wiles & Nicholls 1993). Such tools are
Incentives to increase the size of stopes, valuable when effectively calibrated against data
equipment and blasts relate to the economies monitored from the mine by observation and
of scale which affect improved costs and instrumentation. The extent and location of
DILUTION IN UNDERGROUND BULK MINING 101
zones of reduced confinement in the vicinity of modified as experience is gained. The Mathew's
stopes are of particular concern as locations for method (Golder Assocs. 1981) has been taken as
sloughing. the basis for this approach since it is based on a
Current analytical methods for estimating the proposed relationship between the size of an
amount of slough are limited. An alternative exposed wall, a measure of rock quality and wall
approach is to use the stability graph method, performance (i.e. stability). It is suggested, on
based upon an empirical relationship linking the basis of experience, that:
stope cavity geometry, rock quality and struc-
tural stability (Golder Assocs. 1981; Bawden et unplanned dilution = f n (stope size, wall dip,
al. 1989; P o t v i n et al. 1989) The actual sub-level interval, drilling and blasting, rock
magnitude of sloughing is a function of several quality and ore-body complexity)
factors, principally time, rock-mass geomecha-
nical and structural integrity, ore-body dip and Mathew's method is based upon:
variability, size and shape of the stope, stress
distribution in the rock-mass, blast vibration wall stability = fn (stope size, wall dip, rock
levels and the type and quantity of support quality, stress and structure orientation)
installed. Undercutting of geological structure in
the hanging-wall presents a particular problem Relating the common parameters in these two
as the stope is mined out, often due to changes in functions gives:
structure orientation, lack of knowledge of unplanned dilution = fn (S, Q ', A, B, C, D,
where these occur and constrained selectivity t~,)
due to the sub-level interval. An empirical
relationship between the most important of where:
those factors that influence unplanned dilution S = hydraulic radius (wall area/wall peri-
and the quantity of dilution that occurs is meter);
proposed here. Initially, a very simple approach Q ' = a measure of rock quality, based on
has been adopted, which with time is being Barton (1976);
102 M.J. SCOBLE & A. MOSS
1000 f
f
/
/
f
f
f
I
. ==.'-O~
100
.,,t't"
,,,r
V / . ,. qlSi~ " / _ -I~l
,,,..,-
7 f J
o /3;0,
10 / ..," A~.O
Jn,U
/ / ., J
/- j ~DI I CC
I// /
1 I ,/ /
//
/
/
0.1
0 10 2O 30 40
HYDRAULIC RADIUS, m
Table 3. Mining trials', blocks 33, 34, 35 (after Platford et al. 1991)
Block number 35 34 33
* Distance at the toe; t mucked every blast; ~mucked swell only; § rock was stored as backfill; ]l calculated over
designed tonnes.
tion and various support groups in a factory. stoping. It has traditionally been intuitive and
Goldhar (1988) defined it as a combination of non-scientific, with little priority placed on
computer-aided design and computer-aided quality. This has arisen mainly because of the
manufacturing and flexible manufacturing sys- inability to generate reliably accurate and timely
tems including robotics. The use of computers information. Communications and sensor tech-
and communications links aims to create the nology development now offer the capability for
efficiency of high degrees of integration without the first time to manage the mining production
the rigidities associated with mechanical integra- process scientifically. Management is dependent
tion. upon the following quality control information:
Mining production monitoring and control grade and tonnage of ore (in situ, fragmented
aims to meet the following objectives: to ensure and in transit), productivity, dilution, recovery,
that mine (and mill) targets are met according to equipment availability-utilization, costs (labour,
measures of quality and quantity, as defined in materials, maintenance, power etc.), safety,
the mine plan; to update the mine model development and stoping excavation advances,
(geological excavation) and to permit re-evalua- environmental conditions and rockmass beha-
tion of the mine plan, according to actual viour. Management exerts control by reference
production data; and to interact with the other to mine plan targets relating to quality (in
component mine management systems. product, safety and environmental protection),
Production management takes responsibility productivity and economics.
for underground exploration, development and Dilution control is accomplished through a
DILUTION IN UNDERGROUND BULK MINING 105
• '
b',',LU,'4-4
' ~ "7~,;~,';:::,,,
'~,.s/..'~xiT.i~,;~
~4:~,' '~ ,',',VL,''%/''L, J' ~
'U '~' C~u ,', ,U ,---', ,'~
l; ,, ,~ ~, ,,,,
;-~ ~ , ~ /~
,
'~ ~ ,_~.
~ "t~ ::;ti '/-~ '/','d" ,'i
, ~ = ,o ,
I
/i x\! .....
+.,'
<-/7
,, ,%, / /
x f, . ,
<L~,,~ k~:~::"?'t~'i,"J:t?
C~7 ........~ .~_~- i ........ ~i ,..,i:,:::~-i.-i ,,':;',:,C"~7,,,::.'~:f,~/<'G~..i~,:.;{',.d,:'.,';:~,;'' )'~
:'.d
,. ,,<
MINE PLAN
sEQUENCE MININ G ~'~,7 '7,~, ,~',~ ,~',7
& SC'f.IEDULE
'k \ 'J'-
,3'!_d' "/'~%'Z~'"~,
..,
~--. z, s
?'-i)
.' '~-.~/-.:. %<, '::o ,, ,_, k.:._ s' ,:,' ,,7~; ,'7~ ,(-~, :--7, ,,,, ,7,'m~, "?'~/,-~
~,~ :~ 4 ,;{, ,'7 ,;:q f : ~ ,"~Y ':;, ,~7 '~,f:, '7 ,/~
:" [ D't+ 'Z~>q~ i""!<s?'#-~ ',7-~'~''.i~ 7,,'....
'DJ/~ ,Y ',:"~ ~=
process of reconciliation of information from the • the loading equipment--the tonnage and
five sources below. This permits an evaluation of grade removed from the stope.
mining performance which can be referred to the The objective should be to collect reliable and
mine plan objectives. The reconciliation allows a precise data during stope exploration, develop-
scientific analysis to explain the events of the ment and production, in order to exert control
production period under review, before deter- on each stope. The rationale for control should
mining the control response. The reconciliation be to optimize the quality of exploration, design,
process matches data for the period from: drilling and blasting. Once, however, the rock
fragmentation process is underway then there is
• the mine m o d e L - t h e predicted tonnes- little flexibility in the mining method itself to
grade for the planned excavation volume; accommodate control measures. Developing
• the drilling and blasting a c t i v i t y - - t h e tactical flexibility is an important area for
location and volume of rock actually future stoping method research. Once into
drilled and loaded, plus indications of its production, then control relates mainly to
grade distribution; blending and interaction with other stopes and
• the stope cavity--geometry (the actual development in governing the feed to the mill.
location and volume of rock excavated); Some flexibility is provided by the capability to
integrity (geomechanical quality and stabi- install support, or modify any remaining drilling
lity); evidence of remnant ore in the wall- and blasting, but the key is to ensure that the
rock; original design and practice are carried through
• the muckpile--geometry and grade (the to the highest of quality. Dilution control is also
volume and grade distribution of the critically dependent upon the attitude not only
fragmented rock in the stope cavity and of management but of the complete workforce.
drawpoints); The concept that the quality of tonnes of ore
106 M.J. SCOBLE & A. MOSS
hoisted outweighs the importance of the number damage may be evident in the cavity morphol-
of tonnes hoisted is paramount. ogy. The Noranda Technology Centre have
developed a laser-based cavity survey system
Sensor development (Miller et al. 1992). Such sensing needs to be
feasible by access through development excava-
Real time monitoring of stope production tions or boreholes. The integration of vision,
parameters should be an ambition so as to using a video camera with the survey tool, would
enable interaction with mine planning, probably also enhance the data interpretation by allowing
based on a GIS and 3-dimensional CAD system, the discrimination of any mineralization or
as well as with production control. A compre- symptoms of instability that were evident in
hensive underground communications system the cavity surface.
was installed at the Copper Cliff North Mine
of lnco Ltd, capable of voice, video and data Fragmentation sensing
transmission from stationary or mobile sources
from all parts of the mine (Baiden & Scoble Assessment of the size and shape distribution of
1992). Real time production control, however, the fragmented rock in the stope cavity and
awaits further sensor development to enable drawpoints serves to evaluate the quality of the
capture of the critical input data and to exploit blasting operation and its influence on down-
the full potential of such communications. stream productivity and economics. Image
analysis techniques have been developed to
Drilling evaluate fragmentation (Hunter et al. 1990). A
potential, as yet unrealized, is to link the
Surveying sensors are required to monitor the fragmentation block shape, size distribution
accuracy of drill set-up coordinates, collar and petrology to its source location, possibly
alignment, and trajectory deviation. Some from blast overbreak or sloughing. The identi-
initial efforts have been made to integrate fication, measurement and removal of sloughed
trajectory sensors into the drill string (Pathak backfill within the fragmentation is difficult and
& Dias 1987; Jenkins & Ball I991). Drill set-up justifies further attention.
and collaring in practice are controlled primi- It is important to develop effective grade
tively. Borehole tools exist to measure trajectory sensing for fragmentation, based on XRF or
after drilling, as a separate exercise, but these are other analytical techniques. Current practice of
still limited in accuracy, reliability, cost or grab sampling and/or estimation of grade from
productivity (Hendricks et al. 1991). visual estimation of sulphides content in muck-
piles or vehicles is inadequate.
Monitoring while drilling
Loading performance
Monitoring while drilling has received some
success in surface mines for characterizing It is important to emulate the advances made in
mineralization, rockmass quality and structure equipment performance monitoring technology
(Pollitt et al. 1991). It is based on the inter- in surface mines (Scoble et al. 1991). Accurate
pretation of the variation with depth of various load sensing is needed for load-haul-dump
drilling performance parameters, e.g. thrust, (LHD) and truck haulage at the stope. This
rotary speed, torque, penetration rate, vibration. should be combined with productivity and
health monitoring also to service production,
Explosives monitoring financial and maintenance control. Grade sen-
sing of L H D or truck loads would also
This should confirm that the explosives were contribute to dilution control.
loaded and distributed as per plan, and that their The stope environment has dictated that
initiation and performance was of acceptable reliable and precise measurement of the follow-
quality. ing is rarely possible: mineral width, grade,
tonnage, design grade and tonnes, actual tonnes
Cavity surveying and grade. This relates also to any other
variables on which they are based, such as %
The geometry of the blasted cavity should be overpull. In particular, any variable that is based
surveyed after blasts and subsequently over time on grade is likely to be imprecise. These include
whilst mucking still proceeds. This enables the mineral tonnes, design tonnes and actual tonnes,
quality of the design and practice to be which are calculated from volumetric measure-
evaluated. The control of structure and blast ments and grade measurements (ore estimates)
DILUTION IN UNDERGROUND BULK MINING 107
through the use of tonnage factor formulae. The standard of control will also be governed
Actual tonnage is likely to be less precise than by the flexibility designed into the stoping
the others because the volumetric measurements system itself, i.e. its ability to a d a p t to
in this case are traditionally based on bucket, unanticipated events, relating for example to
truck or skip counts. According to Pentilla ground instability or grade variation. There is a
(1989), geostatistics do not offer the means to need for more concerted efforts to develop
predict dilution, but account for statistical improved stoping methods. Dilution control is
inaccuracies in ore reserve estimation. Grade also dependent upon attitudes and motivation,
reduction occurs because of dilution and ore in order to apply effectively tactics and technol-
losses. Ore estimation traditionally overesti- ogy.
mates grade and underestimates tonnage. A
unique historical reduction factor per mine can
work if accurate ore reserve estimation and high The authors wish to acknowledge several geologists
exploration quality is achievable. It should be an and engineers whose assistance has helped to shape
aim, however, to develop technology for produc- this paper. Particular acknowledgement is given to
tion control which renders such needs redun- personnel of Inco Ltd, Ontario and Manitoba
Divisions, and the Hudson Bay Mining and Smelting
dant.
Co. Ltd, Manitoba. The views expressed are entirely
those of the authors.
Conclusions
Dilution has a significant effect on mine
economics and is now widely recognized as an References
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Quantifying differences between computer models of orebody shapes
E. J. S I D E S
International Institute for Aerospace Survey and Earth Sciences,
Kanaalweg 3, 2628 EB Delft, The Netherlands
Abstract: Several different methods have been used for the representation of orebody
shapes in computer systems including serial-slice, gridded seam, regular block,
mathematical functions, solid geometry, and boundary representation models. The
accuracy and precison of such models are affected by factors such as errors associated
with the original data used, natural variations, errors in data capture and processing,
etc.
In order to asses the relative importance of such factors it is necessary to quantify
differences in accuracy and precision between different model structures. To meet this
objective a new technique which relies on statistical study of a series of sample lines,
intersecting two or more different orebody models, is proposed.
Application of this technique on orebody models at the Neves-Corvo copper-tin
deposits in southern Portugal suggested that in certain circumstances regular block
models can give very poor estimates of the total volume of materials of different
geological types. In addition it was shown quantitatively that shape interpretations
close to the plane of drill-sections are better, in terms of accuracy and precision, than
interpretations for zones failing between the drill-section planes.
Over the past three decades, computerized may also contain inherent limitations to their
modelling techniques have gained widespread accuracy and precision. This aspect is often
acceptance in the field of orebody modelling for neglected because of the lack of agreed proce-
reserve estimation purposes. Nowadays most dures for estimating the errors associated with
large mines use sophisticated software packages predicting the location of orebody contacts, and
for creating, storing, editing and analysing the volumes of different geological or mining units,
orebody models used as the basis for mine within a deposit.
design and production scheduling. Initially such This paper suggests a simple approach for
packages were often developed in-house for quantifying such errors, and illustrates its
individual mines, or companies; however, nowa- application with examples from the Neves-
days several integrated geological modelling and Corvo deposits in southern Portugal. The work
mine planning packages are sold commercially presented is described in more detail by Sides
(see Gibbs 1991). (1992b).
Such packages offer a wide range of techni- Before describing the studies that were carried
ques for modelling orebody shapes and grade out, a review of the principal types of structures
variations, as well as a great variety of input and used for computer modelling of orebody shapes
output options. Selection of the most appro- is presented. This is followed by a discussion of
priate package, or method, to use on a particular possible types and sources of error inherent in
deposit is consequently a difficult task. In such models.
addition to the technical capabilities offered,
the main criteria used when selecting a package Computer modelling of orebody shapes
of this type are often the degree of user
friendliness, the types of graphic output pro- Sides (1992b) identified the following two
duced, and interfaces to existing databases or fundamentally different types of a p p r o a c h
other applications programs. which can be used for creating and handling
Most such packages contain options for three-dimensional representations of orebodies.
geostatistical estimation of orebody grades,
whereby the uncertainties associated with inter- (1) Geometric modelling: for dealing with
polation and extrapolation of spatially corre- properties which are best represented by sharp
lated values, can be quantified. Users of such boundaries. In such cases modelling concen-
packages often forget that both the input data trates on the identification and interpretation of
and the types of structures used for creating, the boundaries. These are then used to define the
storing and manipulating the computer models volumes occupied by material with different
From Whateley, M. K. G. & Harvey, P. K. (eds), 1994, Mineral Resource Evaluation II: 109
Methods and Case Histories, Geological Society Special Publication No. 79, 109-121.
110 E.J. SIDES
Table 1. Summary of the main types of modet structure used for geometric modelling (modified after Sides 1992b)
Serial-slice Polygonal shapes are interpreted on, and digitized from, a series of regularly spaced parallel
sections or plans. Each polygon is normally assigned a volume of influence halfway to the
next section.
Gridded-seam Multiple sub-parallel surfaces are represented by grids of elevations and/or thicknesses.
Block The volume being modelled is divided into a series of regular rectangular blocks in all three
dimensions.
Mathematical Discontinuities are represented as global, or piecewise, mathematical functions such as
polynomial trend surfaces, cubic B-splines, etc.
Solid Complex objects are represented by groups of geometric primitives (e.g. planes, cubes,
spheres, etc.) thus defining volumes with common properties.
Boundary Volume boundaries are represented by a collection of points (vertices), and planar surfaces
representations (facets).
geological characteristics. The divisions repre- types of computer model structure used for
sented are essentially thematic, and are usually geometric modelling are summarized in Table 1
identified by name or code (nominal or ordinal and Fig. 1.
measurement scales) rather than by numeric These techniques are discussed in more detail
values on a continuous measurement scale in Sides (1992b).
(interval or ratio measurement scales).
(2) Volumetric modelling." for dealing with model type schematic illustration
attributes which vary more or less continuously
within the volumes occupied by individual
geological units (as defined by geometric model-
ling). Such properties can normally be quantified
from sample measurements made on a contin-
uous numeric scale. These are usually analysed
and estimated using geostatistical or other
geomathematical techniques.
wE =========================:'~
==~ ' .'.':":':i:
;d T . . . . . . . . ==========================================
'"':'::i:i:i:i:i:i:i:!:!:i:!:i:i:i:i:i:i:i:::
J
,~ STRATIGRAPHICCONTACT
Fig.2. Schematic cross section showing locational error bands associated with different discontinuities in a
hypothetical deposit (from Sides 1992b).
Error types and sources variations can often be analysed and predicted
using geostatistical techniques (e.g. David 1977),
In general terms an error can be defined as a as well as using fractal geometry (Goodchild
difference between a measurement, or predic- 1980).
tion, and the most reliable estimate of the (d) Errors in data capture: e.g. mistakes made
(unknown) true value (Merks 1985). In this during input of information to databases by
context it is important to distinguish between digitizing or keyboard entry.
inaccuracies (caused by incorrect assumptions, (e) Computer processing errors: e.g. uncer-
or the use of inappropriate methods), and the tainties related to software and/or hardware
statistical uncertainties (related to the errors limitations; inherent limitations of model struc-
inherent in sampling, analysis and modelling). tures; etc.
The identification and control of errors asso-
ciated with ore reserve estimation are discussed Errors, such as those outlined above, result in
in general terms in Sides (1992a). inaccuracies and uncertainties associated with
By analogy with similar work done in relation predictions based on the resultant computer
to geographical information systems (Burrough models. From the point of view of modelling
1986), five main sources of error associated with shapes (in order to estimate volumes of different
the three-dimensional modelling of orebody materials present), three important aspects can
shapes can be recognized (Sides 1992b). be identified, namely:
and/or less clearly identifiable features have The Lombador deposit is a massive sulphide
much wider error bands. The width of such lens, up to 50 m thick, which was discovered in
error bands can be expected to increase with 1988 by surface drilling. Following the metho-
distance from sample points, as illustrated in dology used on the other deposits at Neves-
Fig. 2. Corvo, initial reserve estimates were based on a
gridded seam model. These gridded models were
Quantifying locational and volumetric errors derived from triangulated boundary representa-
tions of the footwall and hanging-wall contacts
In order to identify and control such errors, it of each ore lens (based on drillhole intersections
is essential to establish empirical methods of and geological interpretations digitized from
quantifying differences between different shapes. transverse cross sections and isobath plans).
Although there are many published reconcilia- This a p p r o a c h was a d o p t e d since it was
tion studies which present comparisons of considered that regular block models would
predicted and actual ore tonnage, relatively introduce significant uncertainty in the esti-
little work has been done on comparison of mates of ore volumes. The studies described
predicted and actual locations of ore mineraliza- below were carried out to try to verify this
tion. hypothesis in a quantifiable manner.
Houlding (1991) suggested two ways in which
the differences (errors) between a polygon A. SELECT THE
represented using two different modelling tech- DISCONTINUITIES
niques (a set of linear vectors, and a regular TO BE COMPARED
C ~ i d d e d s e a m - 4m b l o c k h e i g h t model
Data file: LOMBO4HX.EAS S,cat i s t i c s
I I ~ I I M To~al : 1081
H Miss : 0
H Used : 1081
Mean .017
Oar iance : 1.331
50. Std. Dev" 1.154
y.C.U. : 6659.699
Skewness : -.001
] { u p , c o s is : 1.792
Minimum : -1.999
25.
ZS,ch × : -.985
Median : .016
7 5 t h Y. : 1.020
Max imuw : 1.998
0.
-2 -1.25 .00 I . 25 ~-.5o
Difference in £ootwall position
Mean .013
Uar iance : 1.381
50. -- S,Cd. D o v : 1.175
×C.U. : 9168.377
Skeuness : -.056
K u r , c o s is : 1.774
Minimum : -Z.000
ZSth z : -1.026
Median .076
7S,ch z : 1.023
Maximum : Z.000
2 50 -I 2.50
Difference in }~angingwall p o s i t i o n
I I ~ I t H Total : 1081
100. M Miss : 0
M Used 1081
0. i
-5. -3. -1. 1. 3. 5
F i g . 4. C o m p a r i s o n of gridded seam and 4 m block height models for the Lombador deposit. Differences in
footwall (upper) and hanging-wall (middle) positions, and vertical thickness (lower) are shown (compiled from
S i d e s 1992b).
114 E.J. SIDES
t I B I I N Total : 1881
75., N Miss : 8
N Used : 1881
Mean -.868
U a r ia n c e : 47.273
50. • Std. Dev : 6.876
~. C . U . : 18145.820
Skewness : .838
Kurtos is : 1.832
Minimum : -11.995
25.. 2 5 t h ~. : -5.884
Median : -.35Z
75th ~. : 5.599
Maximum : 11.986
e:1; . 1o
. . .
o
. .
5 lO 1 .
M Total : 1881
l'
M Miss : 8
M Used : 1881
Mean : .857
m
m
Uariance: 45.548
Std. Dev: 6.749
m
C.U. : 11791.380
m
Skewness: -.821
Kurtosis: 1.862
Minimum : -11.994
ZSth w : -5.788
Median : .Z94
75th ~ 5.558
Maximum : 11.997
0.
-15 . -10. -5. 0, 5. 10
M Total : 1081
160. " M Miss : 8
m M Used 1881
Mean : .125
120. Oariance: 92.267
Std. Den: 9.606
C.U. : 7682.623
Skeuness: -.488
Kurtosis: 2.683
MiniMum : -23.117
25th w : -6.368
Median : 2.687
75th z 6.321
Maximum : 22.584
Fig. 5. Comparison of gridded seam and 24 m block height models for the Lombador deposit. DifferenCes in
footwall (upper) and hanging-wall (middle) positions, and vertical thickness (lower) are shown (compiled from
Sides 1992b).
QUANTIFYING DIFFERENCES IN OREBODY SHAPES 115
x
x
x
x
X X
X ~
X
X
x x\ X
X
x ' x ,x ~ ± ~
J
o 8 16 24 32 40
True thickness (gr idded seam)
I1- Io0~ difference ---2-- 25~ difference - - 3 - - 11~ difference
Fig. 6. Plot of difference (block model gridded seam) against true thickness (gridded seam) for 4 m block height
model of the Lombador deposit.
Block models with different height blocks, but These patterns can be explained by reference
the same lateral dimensions as the grid used for to the distribution of values obtained when the
the gridded seam model, were generated using throws of two dice are combined. In such tests
the information stored in the gridded seam the values for each die will show a rectangular
model. This allowed comparable values, for the distribution, since each value from 1 to 6 has an
gridded seam model and a corresponding regular equal chance of being selected. However, when
block model, to be extracted at each grid point. the values for two dice are c o m b i n e d a
Output files containing pairs of estimates for the symmmetrical distribution with a modal value
elevation of footwall and hanging-wall of the of 7 (1 in 6 probability), and tails at 2 and 12
main ore lens, and also its vertical thickness, (each with a 1 in 36 probability) is obtained.
were generated for different block height In terms of the graphs presented in Fig. 4, this
models. means that the actual elevation values are
The results obtained for 4 m and 24m block independent of the block height and start
height models are summarized graphically in elevations. However, when the two elevation
Figs 4 and 5, respectively. values are combined to give an estimate of the
The differences between the footwall and thickness a near-Gaussian distribution is ob-
hanging-wall elevations show similar patterns tained. The breakdown of this pattern in Fig. 5
in both cases with distributions which can be suggests that the values for top and base
characterized as rectangular in form. This elevation are no longer independent, reflecting
reflects the fact that the difference between the fact that the block height is now comparable
predicted thicknesses shows a very different to the thickness of the unit being modelled.
pattern, with that for the 4 m block height The variance of the thickness distributions
model having a near-Gaussian distribution, and shown in Figs 4 and 5 give an indication of the
that for the 24m block height model a more precision of the estimates of orebody thickness.
complicated bimodal distribution. These are obviously closely related to the
116 E.J. SIDES
x~ ×
12
-12
-24
0 12 24 36 48
True t_hickne£s (gridded seam)
--1-- 100~ difference - - 2 - - 25~ difference --3-- 10~ difference
Fig. 7. Plot of difference (block model gridded seam) against true thickness (gridded seam) for 24 m block height
model of the Lombador deposit.
resolution of the two different models (i.e. 4 m points tested fall along a set of parallel diagonal
and 24m respectively), and can be used to lines. This pattern reflects the fact that the error
quantify precision in terms such as 'thicknesses at any grid point can be one of two values:
estimated using this model are expected to be
within X metres of the true value at a 95% (a) e r r o r _ l = remainder (true thickness /
confidence level (where the value of X can be block height);
determined from the standard deviation of the (b) error_2 -- block height error 1.
distribution of thickness values)'.
In order to highlight differences in the The maximum absolute error is equal to plus,
precision of the estimates over the full range of or minus, the height of a single block. Extreme
thicknesses, the data were summarized in a series errors are less common than those close to zero,
of plots of difference versus true thickness. reflecting the conclusions arrived at during
Following trials using different types of graphi- consideration of Figs 4 and 5 (i.e. the errors
cal presentation (see Sides 1992b), the results should be normally distributed with a mean of
presented in Figs 6 and 7 were obtained. These zero). Consequently the points plotted tend to be
graphs plot the error (block model estimate more frequent close to the centre of each
minus the gridded seam estimate of thickness) diagonal line. The relationship of the parallel
against the gridded seam thickness (taken to be diagonal lines of data points to the isolines of
the best estimate of the true thickness, since it percentage difference illustrates how asymme-
was derived directly from triangulated boundary trical error distributions could be predicted in
representations having a much better resolution the case of the 24 m block height model.
than the grids used). Isolines of percentage The exact distribution of points along each
difference (i.e. error divided by true thickness diagonal line will depend on both the statistical
expressed as a percentage) are also shown. distribution of the true thickness values and on
In both cases the values for the 1081 grid how wide a range of values the diagonal line
QUANTIFYING DIFFERENCES IN OREBODY SHAPES 117
16:23: o 5t 5/92
195E _1950
Fig. 8. Comparison of orebody outlines for different reserve interpretations of the 845 level in the Gra~a orebody.
(Dashed line = 1988 indicated reserve interpretation; solid line -- 1992 measured reserve interpretation.) (After
Sides 1992b.)
crosses. By combining the known distribution of along strike. In such cases it is reasonable to
errors, the effects of changing block height can assume that interpretation of the orebody shape
be predicted in advance. This aspect is the in the planes of the drillhole sections should be
subject of continuing studies. better (i.e. more accurate and more precise) than
the predictions of the shape in zones falling
between section planes. A study was carried out
Influence of drillhole sections on shape to try to test this hypothesis using the method
prediction described earlier.
Data for this study were obtained from two
Statistical theory recommends that random different geological interpretations of the Gra~a
sampling should be applied in the selection of orebody at the Neves-Corvo mine (Richards &
samples for use in predicting the characteristics Sides 1991; Richards & Ferreira 1992). The first
of a given population (Sprent 1981). Never- interpretation, used in the estimation of indi-
theless it has long been accepted that the taking cated reserves in 1988, was based on under-
of geological samples for evaluation purposes is ground drilling on transverse sections at 25m
best done either on regular grids or along spacing. The second interpretation, used in the
parallel sets of sections (Popoff 1966). Amongst estimation of measured reserves in 1992, was
other reasons, this practice is based on the based on re-interpretation of the geology using
realization that the additional uncertainties stope mapping data, on level plans at 2 m
associated with trying to interpret the geometry vertical intervals. At this stage most of the ore
of geological discontinuities from randomly within the volume studied had been extracted.
sited, .or oriented, drillholes would outweigh The values obtained from these two sets of
any statistical advantages. Additionally, drill- interpretations are termed the indicated and
holes which intersect important discontinuities measured values, respectively, in the discussion
at a shallow angle give much less representative given below.
samples than those which intersect the main The orebody outlines compared were inter-
discontinuities orthogonally. preted on, and digitized from, level plans at 2 m
Consequently, inclined tabular orebodies are vertical intervals between the 840 and 860 levels.
often sampled by fans of drillholes, sited on An example of one of these level plans is shown
transverse vertical sections, at regular intervals in Fig. 8.
118 E.J. SIDES
Table 2. Differences in accuracy and precision of indicated reserve interpretations of the Gra+caorebody shape, as
obtained by comparison against measured orebody shape (recalculated after Sides 1992b)
M Total : 306
M Miss : 0
M Used : 306
Mean : 2.972
Uariance: 24.126
50. Std. Deu: 4.912
C.U. : 16S.281
Skewness: 1.474
Kurtosis: 4.464
Minimum : -9.890
25.
ZSth ~ : .000
Median : 1.58S
r 7Sth ~ : 3.$68
Maximum : 17.400
+ N Total : 388
H Hiss : 8
H Used : 388
Mean : 2.968
Uariance: 18.111
Std. Deu: 4.256
C.U. : 146.348
Skewness: 1.558
Kurtosis: 4.793
MiniMum : -4.510
ZSth z : .070
Median : 1.610
7Sth z : 3.390
Maximum : 18.780
r-a F-3
O.
-10. O. 10. 20.
Fig. 9. Differences in prediction of the location of the footwall of the Graga orebody along section lines (upper),
and between section lines (lower) (compiled from Sides 1992b).
QUANTIFYING DIFFERENCES IN OREBODY SHAPES 119
M Total : 388
M Miss : 8
M Used 388
Mean : -.937
Uariance: 59.882
Std. Deu: 7.686
~(~. • z C.U. : 819.958
Skewness: -.651
gurtosis: 5.33Z
Minimum : -Z6.898
:0. - ZSth z -3.538
Median : .3ZS
75th ~ : 2.988
Maximum : 25.888
o. ~ 1 ,
3o 20 10 0. 1o. 20. 3(~.
Di££e~ence in hangingwall position
t M Total : 308
M Miss : 8
,0. M Used : 388
Mean : -Z.699
Uariance 83.656
Std. Deu: 9.146
10, C.U. : 338.925
Skewness .527
Rurtosis: 5.3Z0
Minimun : -25.060
25th z : -7.470
Median : -2.3Z0
:0. 1 7Sth z : 1.870
Maximum : 33.690
0.
-30. -20. -10. 10, 20. 38,
Fig. 10. Differences in prediction of the location of the hanging-wall of the Graga orebody along section lines
(upper), and between section lines (lower) (compiled from Sides 1992b).
Differences between the two sets of orebody in Table 2. The differences in footwall and
shapes were obtained by determining the posi- hanging-wall positions are based on measuring
tions at which they intersected a set of north- the distance of the contact positions from the
south lines at 2.5 m intervals, between 4150E and centre of the measured orebody shape (along
4300E. This resulted in a set of 600 comparisons each test line). The differences shown are derived
which were split into two groups corresponding by subtracting the measured value from the
to zones close to drillhole sections (projection indicated value. In general the results presented
distances ~<6.25m) and zones falling between support the hypothesis that predictions of
section lines (projection distances >6.25m). orebody shape close to the planes of sampling
Graphs showing comparisons of the differences and interpretation are more accurate and more
in the prediction of the orebody footwall and precise than predictions for zones falling
hanging-wall positions, and the total horizontal between section planes. This is particularly true
width of the mineralized unit, are shown in for the hanging-wall position and also for the
Figs 9, 10 and 11. A summary of the overall horizontal thickness of the orebody.
differences in terms of accuracy (as reflected by
the mean and median differences), and precision Nevertheless, the opposite is true for predic-
(as reflected by the standard deviation, and the tions of the footwall position, although the
difference between 1st and 3rd quartiles) is given differences are not great. This is due to the fact
120 E.J. SIDES
I n d i c a t e d - Measured along s e c t i o n l i n e s
Graca 4150-4300E, 840-860, gseo3on.eas S t a t i s t i c s
I M Total : 380
M Miss : 8
M Used : 388
I M Total : 388
M Miss : 8
H Used : 388
Mean : 6.116
Oariance: 88.683
Std. Deu: 8.982
× C.O. : 146.877
Skewness: .844
Kurtosis: 2.918
20.
Minimum : -19.400
ZSth × : .160
Median : S.SOS
10. 7Sth × : 12.310
Maximum : 32.270
0, i , i
-30. 20 10 0 10. 20. 30.
Fig. 11. Differences in prediction of the horizontal thickness (north-south direction) of the Gra~a orebody along
section lines (upper), and between section lines (lower) (compiled from Sides 1992b).
that in the eastern part of the zone studied predicted location of the footwall is slightly
considerable structural complexity, which had south of its true location, and that of the
not been predicted by the underground drilling, hanging-wall slightly north of its true location.
was encountered during mining (see Fig. 8). This These biases work in opposite directions so that
resulted in a bimodal pattern of errors for the the overall effect is to give an even larger bias in
prediction of footwall position (Fig. 9). Conse- the estimates of the horizontal thickness of the
quently, conclusions based on the overall orebody.
statistics (presented in Table 2) may be unreli-
able. Conclusions
Table 2 also highlights the fact that there is,
on average, a bias in predicting the position of The importance of geometric modelling techni-
the two orebody contacts. Interpretation of ques in the representation of orebody shapes has
these differences is complicated by the fact that been illustrated. The need for empirical mea-
there is also an overall bias in the prediction of surements of the differences between different
the horizontal thickness (since the reference line predictions of orebody shapes, in order to
used is based on the centre of the measured identify and control errors inherent in the
orebody shape). Overall it would appear that the modelling process, has been stressed. A simple
QUANTIFYING DIFFERENCES IN OREBODY SHAPES 121
PATRICK GORMAN
Abstract: In recent years Chile has become the focus of activity for many multi-
national mineral resource companies. Undeniably they are attracted by the geological
potential, business/investment rules and lifestyle, all of which are excellent by most
standards.
In view of the continued interest in Chile a detailed profile of 36 gold and 27
copper projects and advanced prospects was prepared from a number of public
sources of data. From this list a representative selection of about 10 projects was
made and the costs associated with those projects were reviewed and evaluated.
Based on the data a modest reserve containing 31 tonne (1 M oz) of gold might be
discovered in Chile at a cost of US$ 225kg -1 Au (US$7 oz -j) or acquired for US$
772kg -1 Au (US$24oz 1) and then a mine constructed for US$ 1522kg -1 Au (US$
47 oz-1). The total average cost taken from initial reconnaissance to start-up of the
mine is equivalent to US$ 25723kg -l gold per year (800oz -1 Au per year).
Historically a medium-sized copper deposit in Chile containing 1 M t of fine copper
might have been discovered for US$ 6.5 t-1 Cu (0.3 US cents lb -1) or acquired for
US$ 10.3 t -I Cu (0.5 US cents lb- 1 ) and then constructed for US$ 64 t- 1 Cu (2.9 US
cents lb 1 Cu). The total cost to mine start-up is equivalent to US$ 3969 t-1 Cu per
year (US$ 1.80 lb 1 Cu per year). The recent purchases by Emablos/Minorco of
one-third of Collahuasi and Placer of 50% of Zaldivar have increased the prices paid
to acquire copper resources to US$ 60 and US$ 93 t-~ Cu in situ (2.7 to 4.2 US cents
lb -1) respectively. On the basis of the above figures, the cost of acquiring a gold
project in Chile is typically equivalent to US$ 24 oz-1 or 7.3% of the price of gold at
US$ 330 per ounce. Copper project acquisitions previously averaged the equivalent
of 0.5% of the price of copper at 95 US cents per lb, but this has reached 4.5% with
the price paid for Zaldivar. These guideline values have been prepared to give
explorationists, acquirers and developers useful empirical guidelines to help them to
decide whether they have the budget to consider entry to Chile or whether to look
elsewhere.
From Whateley, M. K. G. & Harvey, P. K. (eds), 1994, Mineral Resource Evaluation II: 123
Methods and Case Histories, Geological Society Special Publication No. 79, 123-128.
124 P. GORMAN
1Designed at 100 000 t.oz/yr, actual production in 1990 was 28,000 t.oz/yr.
* Estimate.
Gold equivalent.
La Coipa 6 27 47 1437~
E1 Indio 5 111 693t
Marte 19 61 1270
E1 Hueso 10 63 32 1347
San Cristobal 9 16 45 700
Choquelimpie 6 11 47 452t
Can Can 13 21 30* 850"t
Fachinal 8 6 33* 528"t
Lobo 2 33* 552*
Refugio 5 39* 629*
Andacollo 24 5 35* 580*
Weighted average 7 24 47* 800*
120.6 M oz.
29.9 M oz.
* Estimate.
t Gold equivalent.
Placer's purchase price to 1.9 US cents lb -1 Cu. holding fee in March of each year. This has
Therefore, whether it's big or small copper allowed certain companies to pursue a policy of
projects you are after, the cost in Chile, is now 'passive exploration', where ground is coveted
firmly in the region of 3 to 4 US cents lb-1 of for extended periods of time without much
copper with the advantage that if one selects a taking place. If the claims are dropped the
larger project with upside potential then sig- information that has been developed is not
nificant reductions in costs per Ib of copper are required to be made available to the incoming
achievable. party and involves extra time, effort and expense
to repeat data collection. This issue is being
Discussion discussed throughout the country and a solution
will eventually be found. In my opinion, Chile
The value of 4 US cents pound now being paid still offers good potential within its borders and
for copper reserves is only equivalent to 4.5% of is an ideal stepping stone to investigate adjacent
the revenue stream at a copper price of US$ 0.95 countries, such as Argentina and Peru. In Chile
lb -~. In the case of gold, an acquisition cost of the prices are already high and will probably get
US$24 oz 1 is equivalent to 7.3% of the revenue higher. I suggest spending what money is
stream at a gold price of US$330 per ounce. One available in applying good technical skills and
aspect that is currently slowing down copper and aggressively seeking out resources. Throughout
gold exploration in Chile and is contributing to Chile there are companies who have the
driving up prices, is the fact that the companies personnel, techniques and backing to increase
which hold mineral claims in Chile are not the odds of success. What Chile needs now is
required to undertake a minimum annual work more of these types of companies to explore for
commitment on their claims or lodge the results the next wave of projects suitable for develop-
of this work in the public domain. There is ment.
currently no obligation other than to pay the
Mining project finance and the assessment of ore reserves
J. O ' L E A R Y
Abstract: The estimation of ore reserves is one of the most critical activities in the
mining investments decision process. All other activities will depend eventually on
how well grades and the associated tonnages are computed. Unreliable estimates will
affect the financial viability of a project and while errors may not be 'life threatening'
to high profit margin projects errors on the scale commonly encountered can do
irreparable damage to a low margin business. In response to this, numerous
classification systems have been devised, the purpose of which is to impart from the
technical decision makers to the financial decision makers (in industry or the
financial community) the confidence that may be had from a reserve estimate.
Project finance is a difficult and misunderstood mechanism for providing finance
to major infrastructure projects. This is particularly true for the mining industry
where project finance is common. By definition, project finance is that form of
finance that the sponsor (typically a mining company) has segregated from the
general assets and corporate obligations of that company. The project borrowings
will be securitized, typically by the project assets and repayments will be derived from
the project cash flows. That is to say there is little or no recourse to the borrower
should the project fail. This form of finance can be attractive for the banks in that
interest margins can be three to four times higher than for corporate borrowing, but
attendant with their reward is the assumption by the banks of considerable risk.
As repayment will be derived from project cash flow the major risks being assumed
are that project revenues will not be up to that forecast or that project cost will be in
excess of that forecast or both and that the cash flow is insufficient to meet the
interest and principal repayments. Whereas there is considerable experience in
forecasting costs, revenue is more problematical in that it is dependent mainly on the
commodity price and the estimate of quantity of the metal produced. The commodity
price has its own special problems that are beyond the scope of this paper. The
quantity of metal is directly related to the forecast of mineable tonnes and grade i.e.
the statement in any one period of the mineable reserve.
The confidence of a reserve estimate is thus of direct interest to a bank involved in
a mining project finance. Traditionally the confidence was supplied through a
classification system and the terms 'proved', 'probable' and 'possible' and their
equivalents are a means of expressing the uncertainty (geological and other)
associated with a reserve estimate. There has been, however, much criticism of these
traditional statements of confidence and many of the criticisms of the traditional
classification schemes centre around the subjective nature of the definitions of
assurance and their misuse and abuse. Recently the need for quantitative definitions
has arisen in view of the trend to mining low-grade deposits where a high degree of
confidence in a reserve estimate is vital. Many argue that because a quantitative
approach can be taken then it should. With the development of geostatistical theory
starting in 1966, estimation techniques have evolved where the expected error of the
estimate can be calculated as an integral part of the estimation procedure. There is
therefore the possibility of not so much modifying the current classifications but
developing a new scheme aimed at the financial community where the levels of
confidence are related both to the estimation error and to the time period for which
the estimation is related.
From Whateley, M. K. G. & Harvey, P. K. (eds), 1994, Mineral Resource Evaluation 11." 129
Methods and Case Histories, Geological Society Special Publication No. 79, 129-139.
130 J. O'LEARY
imply an accuracy in prediction of one in a proceed. The accuracy required as the develop-
hundred to one in a thousand and it may be ment progresses will have to increase. Similar
forgotten that the calculation is by projecting progression is required for accuracy in cost
values from a small volume to a much larger estimates for project evaluation and ongoing re-
volume. There is a need, therefore, to place some evaluation of the reserves of an operating mine
sort of ranking on quotations of reserves to in the light of actual production statistics for
reflect these uncertainties inherent in reserve ongoing planning and investment.
estimation. In the past this has been satisfied by The specifications outlined above are especi-
classifications such as 'proven', 'probable' and ally relevant to organizations investing in mining
'possible', which have been recommended for operations. Investment companies may require
use in the mining industry by various profes- that a quantity of the reserves should fall into
sional organizations. In recent years these the 'proven' and 'probable' classes and this
definitions have been criticized in the light of quantity should be able to support the project
the availability of some of the newer statistically until the loans are paid back. Equity investors
based techniques of estimation, in particular will have similar requirements.
geostatistics. In order to appreciate the problems M a n y of the criticisms of the traditional
involved in classification some of the objectives classification schemes centre around the sub-
are considered. jective nature of the definitions of assurance and
The main purpose of any classification is to their misuse and abuse. Recently the need for
enable information to be transmitted easily and quantitative definitions has arisen in view of the
clearly from geologists and engineers to decision trend to mining low grade deposits where a high
makers in industry or government. At this stage degree of confidence in a reserve estimate is
two main objectives can be differentiated. On vital. Many argue that because a quantitative
one side the classification must provide informa- approach can be taken it should. With the
tion at a local mine level, and on the other a development of geostatistical theory starting in
more general objective associated with regional 1966, estimation techniques have evolved where
and national resources. the error of the estimate can be calculated as an
Governments require such information to integral part of the estimation procedure. There
assess the present and potential resources of a is therefore the possibility of modifying the
country or region. This is needed for long term current classifications or developing a new
planning, provision of infrastructure and land scheme where the levels of confidence are
use planning. It was to aid these objectives that related to the estimation error.
the general resource classifications, such as
U S B M / U S G S guide-lines, were developed. The
terminology used for resources, however, is Classification systems
commonly used in the mining industry.
For use in industry the objectives are more Broadly speaking classification schemes fall into
detailed. There are three objectives: two categories; those used in the mining industry
and those originally designed for classifying
(1) to give a measure of the amount of ore resources. Many consider that resource defini-
that can be reasonably relied upon to meet tions are not suitable for use in the mining
the production requirements of a project; industry. Some of the official guide-lines on
(2) to provide as far as possible a standard resource and reserve classification are included
procedure for estimating this amount; in Appendix 1. These are not exhaustive but give
(3) to provide a means of expressing the an idea of the variation in terminology and
uncertainties (geological and other) asso- scope of the definitions used.
ciated with an estimate.
Resource classification
Current classification systems use the qualitative
terms 'proven', 'probable' and 'possible', and The first official classification scheme was that
'measured', 'indicated' and 'inferred' in an of the US Bureau of Mines in 1943. This used
attempt to meet these objectives. the terms measured/indicated/inferred to define
These definitions are used in effect as a geologic assurance. Since then it has been
planning tool in devloping a project. As the modified twice, in 1974 and 1980. The system
investigation of a deposit progresses from is probably the best known of the resource
discovery to production, reserves are continu- classifications. Recovery is introduced by defin-
ously assessed to discover if enough material of ing 'reserve' as including only recoverable
the required quality is available for the project to material. The term 'reserve base' was intro-
MINING PROJECT FINANCE AND THE ASSESSMENT OF ORE RESERVES 131
I
[
f
R-1 R2 R3
Known deposits - Extensions of knnxvn Undiscovered
deposits - p r e l i m i n a r y
estimates
[
[
R-1-S
Sub economic
Of these different systems the USBM/USGS projects. Some fall within the definition of
definitions are probably the most widely used. project finance, whilst others rely upon innova-
tive and sometimes unusual financial structures
Classification o f geological assurance being put in place.
Project finance is a specialized form of finance
These largely developed from the original IMM that covers a wide range of financing structures,
classes of 'in-sight', 'probable' and 'possible' which all share one common feature: the finance
which were developed in 1902. Original mining is of a limited recourse nature. That is, financing
terms concentrated on geometric requirements, depends primarily on the successful operation of
so 'proved' ore had to be exposed on three sides. the project, and not on the credit support of the
The USBM/USGS introduced their definition in borrower, or the value of any security taken over
1943 because they found it impossible to classify the project assets.
national resources using the old, more restrictive An economic viability test should demonstrate
terms. Despite the differences in objectives of that the future project cashflows are capable of
resource and reserve classifications, the defini- sustaining the repayment of capital and interest,
tions of assurance appear to be very similar. whilst an independently conducted feasibility
Both types of classification use very general study should demonstrate the technical viability
terms to indicate the increasing accuracy that is of the project.
expected as the categories progress from possible Project finance lenders seek higher margins to
(inferred) to proven (measured). No specific reflect their risk exposure, and higher fees due to
requirements for sample spacing are given (with the invariably complex nature of the loan and
some exceptions) that being left to the engineer security arrangement, and documentation. Mar-
or geologist to define. gins and fees will also reflect the type of financial
Definitions recommended specifically for use structure that is put in place.
by the mining industry have been issued by the The major risks that are being assumed by
Australian IMM, the American Society of banks are as indicated in Table 1.
Mining Engineers and the Association of
Professional Engineers of Ontario (1986). These Table 1. Categories of mine project finance risk
use the terms 'proven', 'probable' and 'possible',
which have been accepted for reporting purposes Within the Outside company Within the
by the US Securities and Exchange Commission company's control & bank's control bank's control
and the Melbourne Stock Exchange. To the
knowledge of this author, the APEO (1986) Operating Reserve Syndication
Technical Commodity Funding
definitions are the only ones which recommend Cost/economic Transportation Legal
that the projections from sample points defining Management Environmental
each class be stated when quoting reserves, Sponsor Political
though most state that the data used for Design Force majeurel
analysis be described. Completion
Some attempts have been made to assign
quantitative limits to various classes. For
example the 1976 definitions of assurance issued For this the typical return to the banks is about
by the USBM/USGS included a specification in 1.5% over their cost of funds (Table 2).
the 'measured' class that
Table 2. Average interest rates for mining project
tonnage and grade are judged to be accurate transactions
within limits which are stated, and no such
limit is judged to be different from the Financial requirement Interest rate LIBOR +
computed tonnage or grade by more than
2O%. Acquisition 2.7%
Refinance 2.6%
However, no guidance is given on that con- Project finance 1.5%
fidence level at which this classification is to be Working capital 1.0%
made. Trade finance 0.9%
Revolving credit 0.5 %
General corporate 0.4%
Project finance
Various sources of finance are available to Project finance is a difficult and misunder-
sponsors seeking to develop or expand mining stood mechanism for providing finance to major
MINING PROJECT FINANCE AND THE ASSESSMENT OF ORE RESERVES 133
60.00%l
40.00%l
--= Discount Rate
Mining Rate
o,oo%__ , .......................
*--- Grade
~ -~.,o% - ~ o ~ o ~ o % ~soo%
Metal Price
-40.00%
-60.00%
infrastructure projects. This is particularly true in the project's 'value'. The situation is con-
for the mining industry where project finance is siderably worse for the forecast metal price. The
common. By definition project finance is that commodity price has its own special problems
form of finance that the sponsor (typically a that are beyond the scope of this paper. The
mining company) has segregated from the forecast of mineable tonnes and grade, i.e. the
general assets and corporate obligations of that statement in any one period of the mineable
company. The project borrowings will be reserve should be of considerable interest to the
securitized, typically by the project assets and geologist and engineer.
repayments will be derived from the project cash The problem for the financial community is
flows. That is to say there is little or no recourse that the classification systems are not set up in a
to the borrower should the project fail. This m a n n e r which allows them to assess the
form of finance can be attractive for the banks in confidence in a future cash flow stream and
that interest margins can be three or four times furthermore the classification rules are inter-
higher than for corporate borrowing, but preted differently by different consulting engi-
attendant with their reward is the assumption neers and sponsor companies. An example is a
by the banks of considerable risk. major N o r t h American gold producer that
As repayment will be derived from project defines 'proved' ore as 'a block estimated on
cash flow the major risks being assumed are that the basis of at least one sample no more than
project revenues will not be up to that forecast 75m from the block centre', whereas a South
or that project costs will be in excess of that American copper producer defines a block
forecast or both and that the resultant cash flow confidence + 2 5 % at the 95% confidence level
is insufficient to meet the interest and principal on an individual block basis to qualify in the
repayments of any project borowing. Whereas same category.
there is considerable experience in forecasting
costs, revenue is more problematical in that it is Project risk
dependent mainly on the commodity price and
the estimate of the quantity of the metal Given the foregoing it is not difficult to see that
produced, which in turn is directly related to the risks being assumed by the bank in a project
tonnage and grade. Figure 2 shows the sensi- financing are fundamentally related to the
tivity of a typical project return to its basic quality of the estimate of the reserves. In the
assumptions. A 10% variation in the realized majority of projects the cash flows are more
grade from that forecast results in a 30% change sensitive to the grade than to any other factor
134 J. O'LEARY
excluding the commodity price and in many cash flows, that is to have a series of production
cases this sensitivity can be two to three times as increments presented as part of the cash flows
large as, for example, capital cost. It is common which cover short periods for the initial years
practice nowadays for a consulting engineering and followed by increasingly larger periods as we
group or a sponsor mining company to quote move further into the future. The first year of a
uncertainties alongside their estimates of capital mine's life may be forecast monthly, in the first
and operating costs for a project. Recent quarter, followed by quarterly in the remaining
experience has indicated that they are prepared three quarters. Years two and three may be
to commit themselves to plus or minus 15% at forecast half yearly with annual plans for years
the 90% confidence level when presenting an S1 four and five. Eventually the forecast may be in
study. At the same time most mining feasibility five year increments when beyond year 15 or 20.
studies have at their base a reserve which uses During the planning process it is possible to
geostatistical or similar techniques such as assess the uncertainty of any such increment by
inverse distance weighting. Inherent in these using relative variance plans created as part of a
techniques are the concepts of kriging variance standard geostatistical estimation. Additionally
and estimation variances which in most cases are it is possible using standard techniques to
calculated and never used again. It is most approximate the standard error of such incre-
unusual for a consulting engineer or a sponsor ments. This can be followed through with a full
mining company to quote confidence in the calculation of the estimated variance of a
tonnage or grade profiles presented in feasibility particular increment once these have been
studies except in the more general terms even finalized. The resulting cash flow would not
though poor assessment of grades will have a only present schedules of tonnes, grades, prices,
large impact on the project should they be in costs and cash flows but also a schedule of
error. uncertainties associated with such a prediction.
Typically, cash flows are estimated annually Such a scheme would obviate the need for any
with large negative cash flows up front followed traditional classification systems and present the
by positive cash flows in later years when a mine banks with a clear picture of the uncertainty
reaches full production. An example of a typical associated with cash flow predictions.
project cash flow is given in Appendix 2. In
almost all cases such cash flows are presented in Appendix 1: selected classification systems
annual increments and ignore the basic require-
ments of both the mining company itself and the
financial institutions which is for more informa- A: US Bureau of Mines and US Geological
tion in the early years of the project and less
information in later years. This is especially true Survey
of projects with large working capital require- (Geological Survey Circular 831, 1980)
ments where it is very difficult to assess the
working capital requirement unless a project is Measured. Quantity is computed from dimensions
examined in monthly or perhaps quarterly revealed in outcrops, trenches, workings or drill holes;
increments in the early years. Most projects are grade and/or quantity are computed from results of
not sensitive to changes in their assumptions say detailed sampling. The sites for inspection, sampling
20 years in the future. An example of an and measurement are spaced so closely and the
alternative cash flow summary is also presented geological character is so well defined that size,
shape, depth and mineral content of the resource are
in Appendix 2. In this alternative the time slice,
well established.
for which the forecast is made, becomes larger as
the forecast period becomes more distant and a Indicated. Quantity and grade and/or quality are
confidence prediction made for each period. In computed from information similar to that used for
this example the time slice has been adjusted to measured resources but the sites for inspection are
make the prediction confidence a constant as far farther apart or otherwise less adequately spaced. The
as practical. degree of assurance, although lower than that for
Kriging is one tool amongst many which measured resources, is high enough to assume
allows the user to establish the uncertainties continuity between points of observation.
associated with any volume; more commonly it
Demonstrated. A collective term for the sum of
is associated to regular rectangular blocks but measured and indicated reserves or resources.
this need not be the case and it can be applied to
any volume, irregular or regular. The better Inferred. Estimates are based on an assumed con-
solution for financial institutions, particularly tinuity beyond measured and/or indicated resources
lending banks, is as described in the alternative for which there is geological evidence. Inferred
M I N I N G PROJECT F I N A N C E A N D THE ASSESSMENT OF ORE RESERVES 135
opportunities and the somewhat longer-range pro- interest the grades, limits and other appropriate
spects for raw material supply. Their low degree of characteristics of which are known with a specified
reliability should be reflected by reporting in ranges. degree of knowledge.
1A Proved mineral reserve is that portion of a measured 2B Indicated mineral resource is that portion of a
mineral resource as defined on which detailed technical mineral resource for which quantity and quality are
and economic studies have been carried out to estimated with a lower degree of certainty than for a
demonstrate that it can justify extraction at the time measured mineral resource. The sites used for inspec-
of the determination and under specified conditions. tion, sampling and measurement are too widely or
inappropriately spaced to enable the material or its
1B Probable mineral reserve is that portion of a continuity to be defined or its grade throughout to be
measured and/or indicated resource as defined on established.
which sufficient technical and economic studies have
been carried out to demonstrate that it can justify 3 Mineral potential describes a body of rock or
extraction at the time of the determination and under mineralization or other material or an area for which
specified economic conditions. evidence exists to suggest that it is w o r t h y o f
investigation but to which neither volume, tonnage
2 Mineral resource is a tonnage or volume of rock or nor grade shall be assigned.
mineralization or other material of intrinsic economic
138 J. O'LEARY
Production
East
Tonnes 1839 1839 1839 1800 900 0
Grade 1.37 1.32 1.32 1.31 1.31 0
West/central
Tonnes 0 591 1221 3600 4500 5400
Grade 0.00 1.32 1.27 1.08 1.10 1.06
Total
Tonnes 1839 2430 3060 5400 5400 5400
Grade 1.37 1.32 1.30 1.15 1.14 1.06
Copper recovery 0.92 0.92 0.92 0.92 0.92 0.92
Copper concentrate grade 0.38 0.38 0.385 0.385 0.4 0.4
Payable metals produced
Copper 22 246 28 339 35 177 55 029 54 305 50 738
Gold 61 77 95 148 140 131
Silver 2728 3475 4255 6657 6315 5900
Metals prices
Copper 0.950 0.950 0.950 0.950 0.950 0.950
Gold 330.000 330.000 330.000 330.000 330.000 330.000
Silver 3.500 3.500 3.500 3.500 3.500 3.500
Gross value of payable metals
Copper $46 591 $59 353 $73 675 $115 253 $113 737 $106265
Gold $643 $819 $1003 $1570 $1489 $1391
Silver $307 $391 $479 $749 $711 $664
Total $47 541 $60 563 $75 157 $117 572 $115 936 $108 320
Smelting and refining charges $13037 $17047 $21 061 $33222 $32200 $30268
Net smelter return $34 504 $44 533 $55 495 $87176 $86 785 $81 325
Operating costs
Mining $8457 $11903 $18 006 $21312 $17145 $12 744
Plant $6830 $8720 $10412 $16701 $17047 $17047
Eng & services $1250 $1652 $2080 $3672 $3672 $3672
G &A $2825 $2825 $2825 $2825 $2825 $2825
Concentrate transport $1061 $1359 $1666 $2611 $2479 $2320
Total $20423 $26459 $34989 $47121 $43 169 $38 607
Operating profit $14 694 $19 577 $25 592 $44 252 $43 616 $42 717
Production
East
Tonnes 919 919 1839 1800 1800 0
Grade 1.37 1.32 1.32 1.31 1.31 0
West/central
Tonnes 0 296 1221 3600 9000 16 200
Grade 0.00 1.32 1.27 1.08 1.10 i .06
Total
Tonnes 919 1215 3060 5400 10 800 16 200
Grade 1.37 1.32 1.30 1.15 1.14 1.06
Copper recovery 0.92 0.92 0.92 0.92 0.92 0.92
Copper concentrate grade 0.38 0.38 0.385 0.385 0.4 0.4
Payable metals produced
Copper 11 123 14170 35177 55029 108611 152214
Gold 30 39 95 148 281 393
MINING PROJECT FINANCE AND THE ASSESSMENT OF ORE RESERVES 139
References
ASSOCIATION OF PROFESSIONAL ENGINEERS OF ON- SABOURIN, R. L. 1984. Application of a geostatistical
TARIO 1986. Guidelines for Professional Engineers method to quantitatively define various categories
Reporting on Mineral Properties. Toronto, of resources. In: VERLY, G. et al. (eds) Geostatis-
Canada. tics for Natural Resource Characterisation Part 1,
AUSTRALIAN INSTITUTION OF MINING AND METAL- Reidel, 201-215.
LURGY AND AUSTRALIANMINING COUNCIL 1985. SCHANZ,J. J. 1980. The United Nations endeavour to
Reporting of Ore Reserves. standardise mineral resource classification. Nat-
BANFIELD, A. F. • HAVARD, J. F. 1975. Let's Define ural Resources Forum, 4, 307-313.
Our Terms in Mineral Valuation. Mining Engi- US BUREAUOF MINES AND US GEOLOGICALSURVEY
neering, July, 74-78. 1976. Mineral Resource Classification Systems of
FETTWEISS, G. B. 1979. World Coal Resources. the USBM and USGS. USGS Bulletin 1450-A.
Methods of Assessment and Results. Develop- -- 1980. Principles of a Reserve~Resource Classifica-
ments in Economic Geology, 10, Elsevier. tion for Minerals. USGS circular 831.
The optimal design of quarries
P. A. D O W D
Department of Mining and Mineral Engineering, University of Leeds, Leeds LS2 9JT, UK
This paper describes the various general approaches to the optimal design of pits
and quarries. Three types of deposit and corresponding numerical models can be
distinguished and in each case a particular method of optimization can be used. In
the most general case computer methods must be used to construct optimal pit/
quarry outlines on the basis of a regular, three-dimensional revenue/grade block
model. The paper includes a Fortran algorithm for a simple implementation of the
Lerchs-Grossmann method for optimal pit/quarry design.
Over the past 30 years a great deal of effort has (1) Stratigraphically confined deposits of
been expended in the metalliferous mining uniform quality or grade consisting usually of
industry on the optimal design and scheduling a single stratigraphic unit. In this case the model
of open pits, i.e. on the shape of the pit (the total consists of the estimated ore boundaries.
amount of ore and waste to be mined) and the (2) Stratigraphically confined deposits in
sequence in which individual parcels of ore and which the ore quality or grade varies through-
waste are to be mined. Optimization requires a out the deposit. For a single stratigraphic unit
criterion and this is usually defined as maximum the model will consist of the estimated average
net profit or maximum net present value. grade between the footwall and hangingwall for
The optimal design of pits and quarries should specified vertical increments (perhaps corres-
not be confused with computer aided design ponding to bench heights).
(CAD) techniques although computers are (3) Disseminated deposits or stratigraphic
usually required to implement optimal designs. deposits which are erratic and/or consist of
CAD design of pits and quarries is now supplied multiple units. This is the most general case. The
as an option in most quarry and pit evaluation model consists of the estimated grades of blocks
packages (e.g. SURPAC). These packages are into which the deposit has been subdivided
essentially computerized versions of hand drawn
methods of pit design and there is no intention Each deposit model is then converted to a
of providing an optimal design in the sense revenue model by applying costs and prices to
that any specified criterion is minimized or the ore and waste tonnages within the different
maximized. ore outlines.
Most software suppliers now offer the ability The most common optimization criterion is to
to interface with a proprietary open pit design design the quarry in such a way that the
package from a third-party supplier. The most extracted ore and associated waste will yield
well-known of these are the Whittle 3-D and 4-D the maximum net profit. Ideally, the optimiza-
packages (Whittle 1989). However, for low cost tion criterion should be the maximum net
industrial minerals operators the costs of such present value. However, it is not possible to
packages are often prohibitive. use this criterion as a direct part of an
The purpose of this paper is to introduce the optimizing procedure because it involves an
concepts of optimal quarry design and to insoluble circular argument. In order to define
stimulate the use of optimizing techniques by the net present value of a parcel of ore or
supplying a basic computer program for the mineral, the time at which the ore is mined must
implementation of general optimization. be known; however, the time at which a parcel of
ore is mined will not be known until the quarry
is designed but the quarry cannot be designed
Optimal pit/quarry design until the present values of all parcels of ore are
defined. A common approach to this problem is
Optimal design begins by building a model of to design the quarry on the basis of maximum
the mineralization. For this purpose three types net profit and then schedule the quarrying
of deposit and corresponding models can be operation within this shape so as to achieve
distinguished. maximum net present value.
From Whateley, M. K. G. & Harvey, P. K. (eds), 1994, Mineral Resource Evaluation II." 141
Methods and Case Histories, Geological Society Special Publication No. 79, 141-155.
142 P.A. DOWD
\
\
\ /
\ /
\ /
\ /
\ /
\ /
\ / d
N /
/
l
\
\ /
/
/
0\
Differentiating profit with respect to depth and setting to zero gives optimum mining depth:
The a p p r o a c h to optimization for each of the calculus can be used to determine the optimal
three categories of deposit is summarized in the depth and thus optimal pit shape. To illustrate
following sections. this consider the simple case s h o w n in Fig. 1.
Assume that the ore has constant width w and
Stratigraphically confined deposits of a strike length o f 1. Table 1 shows the derivation
o f the optimal mining depth. Similar, if m o r e
uniform quality or grade consisting usually complex, formulas can be derived for morerea-
of a single stratigraphic unit listically s h a p e d a n d o r i e n t e d s t r a t i g r a p h i c
deposits or sequences.
The simplest case is in the mining of dipping,
stratigraphically defined structures of u n i f o r m
quality or grade as shown in Fig. 1. As the pit Stratigraphically confined deposits in which
is deepened m o r e and more waste m u s t be the ore quality or grade varies throughout
removed. Here the pit shape can be defined as a the deposit
function of the net value of mining ore a n d waste
down to a given depth. Once the pit/quarry W h e n the ore is not of constant grade the
slopes are defined the object is to determine the determination of the o p t i m u m q u a r r y is not as
depth which gives the m a x i m u m profit. Simple simple.
T H E O P T I M A L D E S I G N OF Q U A R R I E S 143
\\ \\ \\ \\ N\ N\ 8o. ///////////1
\ \ \ \ \ //I I/I/////I
\\ \\ \\ \\ \\ N\ ii/i///ii/i
N \ \ \ \ \ . . . . / / / ' / / / / /
\ \ \ \ \ \ / / / / 1 / / - - /
\ \ \ \ \ \ / / / / / / / /
\ \ \ \ \ \ \ \ \ \ \ \ I / / I / / /./-/
/ / / I ,"//
, , \ , , , I/ /,',;:,,,
\ ". \\ .. \ \ \ \ \ ,. \ LI /_ _ _ / ' ;/ ,' ."'..':. .' '. ,/ ,
\ \ \ \ \ / ,~m/:... / . . / .
\ ,, \ \ ~_L/.:./..'/"
\\ \ \ \ / /7 / / /
Ore Waste
Depth volume volume stripping Grade recoverable Value
(m) (m 3) (m 3) ratio (%CaF2) tonnes of ore (0
Table 3. N e t p r o f i t calculations f o r p i t o p t i m i z a t i o n e x a m p l e
50 4.50 2010 9045 3.50 5252 18382 20049 52225 93 520 41295
60 4.60 403 1854 3.60 2308 8309 4596 16235 21448 5213
70 4.70 403 1895 3.80 2732 10382 5169 19 191 24 126 4935
80 4.85 403 1955 4.00 3156 12625 5745 22 358 26810 4452
90 5.00 403 2016 4.15 3581 14862 4824 23 869 22517 - 1352
100 5.15 403 2076 4.30 4005 17222 4503 26179 21016 -5316
110 5.30 403 2136 4.45 4429 19709 3447 27821 16086 - 11735
120 5.50 403 2217 4.60 4853 22 324 3675 31038 17156 - 13882
144 P.A. DOWD
The value of a removal cone is the total value equal to the net revenue value of the correspond-
of the blocks within it. The optimal quarry shape ing block. The vertices are connected by arcs in
is then the combination of removal cones with such a way that the connections leading from a
the highest total value. particular vertex to the surface define the set of
vertices (blocks) which must be removed if that
vertex (block) is to be mined. A simple, two-
-1 -1 -I -1 -I -1 dimensional example is shown in Fig. 7.
Vertices connected by an arc pointing away
-1 -1 -1 -1
from a vertex are termed successors of that
7 7
vertex, i.e. the vertex y is a successor of the
vertex x if there exists an arc directed from x to
y. The set of all successors of x is denoted Fx.
Fig. 5. Removal cone for first positive block. For example, in Fig. 7, Fx9 = {x2, x3, x4}. A
closure of a directed graph, which consists of a
set of vertices X, is a set of vertices Y c X such
that if x c Ythen F x c Y. For example, in Fig.
-1 -1 -1 -1 11 7, Y= {X1, X2, X3, X4, XS, XS, Xg, XI0 } is a closure of
the directed graph. The value of a closure is the
-1 -1 -1 -1 sum of the mases (revenue values) of the vertices
in the closure. Each closure defines a possible
pit; the closure with the maximum value defines
the optimal pit.
This method is the only method which can be
Fig. 6. Removal cone for combined positive blocks. proved rigorously, mathematically always to
lead to the correct optimal solution. However,
a number of recently published new methods
(Dowd & Onur 1992, 1993) have also made
There is a serious problem with moving cone similar claims but they remain to be indepen-
methods as illustrated by the simple example in dently verified.
Fig. 5 in which the numbers in the blocks are
the net profits obtained by mining them. The Mining sequence planning
removal cone for the first positive block, as
shown in Fig. 5, has a value of 7 - 8 = - 1 and Ideally, optimal quarry/pit limits should be
the block is rejected. Similarly, the removal cone determined on the basis of optimizing net
of the second positive block has a value of - 1 present value. However, the problem, as for-
and it too is rejected. However, if the two blocks mulated, is intractable. It is not possible to
are considered together as shown in Fig. 6 then assign a net present value to a block until it is
the removal cone for the pair of blocks has a known when the block is to be mined but the
value of 7 + 7 - 1 0 = + 4 and the two blocks can time at which a block is mined is not known
be profitably mined. until the pit is designed.
It is thus not sufficient to consider the removal The problem could be formulated as a
cone of each block independently of all other constrained scheduling problem thereby avoid-
removal cones which intersect it. Various ing the circular constraints referred to above.
techniques have been proposed to overcome However, such a solution is yet to be formulated
this problem but the numerous forms of the and/or achieved within reasonable computing
moving cone method remain heuristic algo- time. The most c o m m o n approach to the
rithms for which rigorous proofs of optimiza- problem is to design an optimal pit/quarry shell
tion are not possible and for which a counter using maximum (undiscounted) profit as the
example of non-optimization can usually be optimizing criterion and then to schedule the
found. blocks within this shell in such a way as to
maximize net present value. There is a growing
The Lerchs-Grossmann algorithm number of publications in optimal scheduling of
open pit mining (Onur 1992; Onur & Dowd
The Lerchs-Grossmann algorithm (Lerchs & 1993) but, in general, the problem has not
Grossmann 1965) converts the three-dimen- attracted the same amount of interest as the
sional grid of blocks in the orebody model into optimal open pit design problem. Some authors
a directed graph. Each block in the grid is have tackled the simpler but related problem of
represented by a vertex which is assigned a mass optimal overburden removal.
146 P. A. DOWD
~ q
7'
)<
)<
Fig. 7. Directed graph representing two-dimensionaldeposit model; nodes represent blocks and arcs define mining
constraints.
5
3 4 1
2
\ I L 1 I /
Time
period
Alternative
profit
1 Alternative
profit
2 Discount Discounted Discounted
rate alternative 1 alternative 2
The simple example shown in Fig. 8 illustrates sequences. The results are shown in Table 4.
the importance of net present value in the It can be seen from Table 4 that the best way
determination of mining sequences. In this of mining the orebody is to mine the most
example the same section of an orebody is profitable parts during the early stages of the
depleted in the same time period with a discount mining operation.
rate of 10% by using two different planning Open pit or quarry production scheduling is
THE OPTIMAL DESIGN OF QUARRIES 147
the development of a sequence of depletion et al. 1974; Dowd & David 1976; Dowd 1980).
schedules leading from the initial conditions of Such an assessment is called sensitivity analysis.
the deposit, to the ultimate pit limits. Production The assessment of the sensitivity of the pit/
scheduling may be long range or short range quarry design to probabilistic changes in all of
depending on the duration of the scheduling these variables is called risk analysis. One
periods. Long range production scheduling is powerful form of risk analysis is to use
mainly concerned with such items as ore geostatistical simulation (David et al. 1974;
reserves, stripping ratios and major investment Dowd & David 1976; Dowd 1980) to provide a
usually on a year by year basis. Short range series of alternative deposit models based on
scheduling, on the other hand, is the develop- different amounts and quality of data. Each
ment of a sequence of depletion schedules on a alternative deposit model can be combined with
daily, weekly or monthly basis, which complies different values of economic and financial
with restrictions imposed by the long range parameters to design a new pit/quarry and
plans, plant capacities, inventories, equipment calculate the resulting cash flow. An analysis of
availability and the exising mining operation. these cash flows will quantify the risk involved in
Regardless of the type of ore or mineral the project.
product mined, there are certain basic data that
are required in any production scheduling Practical implementation of optimal design
problem. These are: software
(1) the tonnage and grade of each block;
Commercial open pit design software packages
(2) specific gravity of ore and waste; can be purchased but these are generally very
(3) the revenue value of each block; expensive. In-house development of such soft-
(4) deposit block model;
ware can also be prohibitively expensive. In the
(5) present pit/quarry layout or overall opti- interests of stimulating the use of computer
mum limits of the pit/quarry to be aided optimal pit/quarry design a listing of a
scheduled;
Fortran program for the Lerchs-Grossmann
(6) mine life or production rate (depending on algorithm is given in the Appendix to this
whether short term or long term scheduling paper. This is a very elementary implementation
is used);
of the algorithm and it is intended as a basis for
(7) the maximum and minimum allowable further development rather than a final product.
grade to be mined or to be fed to the The program is written for fixed slopes which
processing plant in any time period; are governed by the block dimensions. In
(8) the maximum and minimum allowable addition it is assumed that a block revenue
production rate of waste and ore; model is available.
(9) working slope angle in the pit;
(10) minimum pit bottom dimensions;
(11) discount rate; Advantages of optimum quarry design
(12) preproduction rate and period (if required).
The major advantages of implementing a
Various methods are available to solve the computer based optimal pit/quarry design
scheduling problem including linear program- algorithm are:
ming, goal programming and dynamic program- • Economic quarries are designed so as
ming (Dowd 1976; Dowd & Elvan 1987; Onur give maximum return on capi-
1992; Onur & Dowd 1993). tal;
• Technical quarries can be generated very
Sensitivity and risk analysis rapidly for a whole range of
changes in variables--costs,
The optimal pit/quarry is a function of a large prices, geological conditions,
number of variables, the most important of mining equipment, mining
which are grades, costs, prices, geomechanics method, in situ grades, wall
and wall slopes. Many of these variables are slopes, processing assump-
unknown and must be estimated. tions, etc;
In many cases the pit/quarry shape and the • Risk risk and sensitivity analyses
resulting profit will change dramatically when can be performed very rapidly;
grades, costs and prices change. By using a • Cost saving q u a r r y / p i t shapes can be
computer based optimal design package the generated very rapidly in a
sensitivity of the pit design to changes in the fraction of the time it takes to
values of these variables can be assessed (David design pits manually.
148 P.A. DOWD
* T h e d e p o s i t is d i v i d e d i n t o a t h r e e - d i m e n s i o n a l a r r a y of r e c t a n g u l a r *
* b l o c k s a n d a p r o f i t v a l u e is a s s i g n e d to each. T h e s e v a l u e s a r e s t o r e d *
* in a t h r e e - d i m e n s i o n a l m a t r i x V A L ( i , j , k ) w i t h d i m e n s i o n s : *
* numx - n u m b e r of r o w s *
* numy - n u m b e r of c o l u m n s *
* numz - n u m b e r of l e v e l s *
* T h e m a x i m u m v a l u e s of t h e s e d i m e n s i o n s are s e t in a p a r a m e t e r s t a t e - *
*ment to nx, n y a n d nz r e s p e c t i v e l y *
* L O G ( i , j , k ) is a m a t r i x w i t h t h e s a m e d i m e n s i o n s as V A L a n d w h i c h is *
* u s e d t o i n d i c a t e w h e t h e r b l o c k (i,j,k) is i n s i d e (=i) o r o u t s i d e (=0) *
* the pit *
* I P L A N ( i , j ) h a s d i m e n s i o n s IK a n d J K r e s p e c t i v e l y a n d d e f i n e s c o n t o u r s *
* of t h e o p t i m u m p i t b y s t o r i n g t h e p i t l e v e l at h o r i z o n t a l l o c a t i o n *
* (i,j) :
* If I P L A N ( i , j ) = 0 n o n e of t h e b l o c k s in c e l l (i,j) h a v e b e e n m i n e d . *
* If I P L A N ( i , j ) = k t h e b l o c k s in c e l l (i,j) on l e v e l k a n d a b o v e h a v e *
* been mined. *
* Other working matrices have dimensions : *
* I R O O T ( i k m , 2 ) , I T R E E ( n e m ) , I P A T H ( i p k m , 3), N D ( n e m , 2), D ( n e m ) , N O R M ( k n m ) *
* w h e r e ikm, nem, i p k m a n d k n m are e x p e r i m e n t a l ; a s u f f i c i e n t v a l u e for *
* e a c h of t h e s e is u s u a l l y n u m x * n u m y * n u m z / 2 0 *
Parameter (ikmax=2000,nemax=2000,ipkmax=2000,knmax=2000)
Parameter (nxmax=50, nymax=50, nzmax=10)
Dimension val(nxmax,nymax,nzmax),log(nxmax,nymax,nzmax),d(nemax),
1 iplan(nxmax,nymax),iroot(nemax,2),itree(nemax),
2 nd(nemax,2),ipath(ipkmax,3),norm(knmax)
data pi/3.14159263/
900 f o r m a t ( 4 0 f 9 . 1 )
905 F o r m a t ( i x , 4 0 i 2 )
910 f o r m a t ( / 2 0 x , ' T o t a l v a l u e of b l o c k s i n c l u d e d in p i t = ',
1 E15.5,//)
920 F o r m a t ( ' E n t e r t h e n u m b e r of b l o c k s in t h e x, y a n d z d i r e c t i o n s ' ,
1 ' respectively'/)
925 F o r m a t ( ' E n t e r t h e x, y a n d z d i m e n s i o n s r e s p e c t i v e l y of the',
1 ' blocks'/)
Read in d a t a
Write(6,920)
read(5,*) numx,numy,numz
write(6,925)
r e a d ( 5 , * ) ixdim, iydim, i z d i m
do 5 k = l , n u m z
do 5 i = l , n u m x
read(4,*) (val(i,j,k),j=l,numy)
continue
Do i0 i=l,numx
THE OPTIMAL DESIGN OF QUARRIES 149
do i0 j = l , n u m y
iplan(i,j)=0
i0 continue
do 15 i = l , n u m x
do 15 j = l , n u m y
do 15 k = l , n u m z
log(i, j,k)=0
if (val(i,j,k).eq.0.00) log(i,j,k)=l
15 continue
s=0.
ik=0
ne=0
nem=0
ipkm=0
ikm=0
knm=0
do 20 i = l , n u m x
do 20 j = l , n u m y
if (val(i,j,l).le.0) go to 20
s=s+val(i,j,l)
log(i,j,l)=l
iplan(i,j)=l
20 c o n t i n u e
Increment the level counter (k) by 1 and add the blocks on the Kth
level
k=l
25 if (k.ge.numz) go to 400
k=k+l
30 if (ik.ge.0) go to 35
32 ks=k
go to 380
35 itr=l
40 n t s = i r o o t ( i t r , I)
n d s = i t r e e (nts)
if (d(nds).gt.0.) go to 55
41 if (itr.lt.lk) then
itr=itr+l
go to 40
endif
42 itc=l
45 if (itc.gt.lk) then
ks=k
go to 380
endif
n t s = i r o o t (itc, i)
n d s = i t r e e (nts)
if (d(nds).le.0.) go to 50
lar=itc
i sw= 4
go to 340
150 P . A . DOWD
50 itc=Itc+l
go to 45
55 lar=itr
60 isw=l
go to 340
65 call coord(node,numx,numy,kl,j,i)
if (kl.eq.l) go to 350
70 ny=(ig-l)*numx*numy+(n-l)*numx+m
do 80 l=l,lk
lir=l
ntw=iroot(l,l)
ndw=itree(ntw)
if (d(ndw).gt.O.) go to 80
ntk=ntw+iroot(l,2)-i
do 75 it=ntw,ntk
na=itree(it)
nal=nd(na,l)
na2=nd(na,2)
if (ny.eq.nal) go to 95
if (ny.eq.na2) go to 95
75 continue
80 continue
go to 350
90 ny=(ig-l)*numx*numy+(n-l)*numx+m
cpm=val(m,n, lg)
log(m,n,lg)=2
ne=ne+l
nd(ne,l)=O
nd(ne,2)=ny
d (ne) =cpm
itree (ne) =ne
ik=ik+l
iroot (ik, i) =ne
iroot(ik,2)=l
if (Ikm.lt. Lk) ikm=ik
if (nem.lt.ne) nem=ne
lir=ik
95 nd(nds,l)=node
nd(nds,2)=ny
mbw=iroot(lir,l)
mew=iroot(lir,2)+mbw-i
mbs=iroot(lar,l)
mes=mbs+iroot(lar,2)-i
iroot(lir,2)=iroot(lir,2)+iroot(lar,2)
iroot(lar,l)=O
iroot(lar,2)=O
if (mew+l-mbs) 100,140,120
i00 ires=itree(mbs)
nl=mew+l
n2=mbs-I
do 105 n=nl,n2
nf=n2-n+nl
itree(nf+l)=itree(nf)
105 continue
itree(mew+l)=ires
do ii0 l=l,lk
if (iroot(l,l).eq.O) go to ii0
if (.not.(iroot(l,l).gt.mew.and.iroot(l,l).le.mbs)) go to Ii0
iroot(l,l)=iroot(l,l)+l
ii0 continue
if (mbs.eq.mes) go to 140
THE OPTIMAL DESIGN OF QUARRIES 151
mbs=mbs+l
mew=mew+l
go to i00
120 do 135 m = m b s , m e s
ires=itree(mbs)
nl=mbs+l
n2=mew
do 125 n=nl,n2
itree(n-l)=itree(n)
125 continue
itree(mew)=ires
mbw=mbw-i
do 130 l=l,lk
if (iroot(l,l).eq.O) go to 130
if (.not. ( i r o o t ( l , l ) . g e . m b s . a n d . i r o o t ( l , l ) . l e . m e w ) ) g o to 130
iroot(l,l)=iroot(l,l)-I
130 continue
135 continue
140 icon=l
go to 310
145 continue
ipa=ip
150 n=ipath (ipa, i)
if (n.eq.nds) go to 155
d(n) =d (nds) -d (n)
ipa=ipath (ipa, 3 )
if (ipa.ne.O) go to 150
155 lar=lir
isw=3
go to 340
160 if (node.ne.ny) go to 350
ipa=ip
165 nn=ipath (ipa, i)
d(nn) =d (nn) +d (nds)
ipa=ipath (ipa, 3 )
if (ipa.ne.O) go to 165
170 kn=l
norm (kn) =lir
175 do 180 k t = l , k n
if (norm(kt).eq.O) go to 180
lar=norm (kt)
isw=2
go to 340
180 continue
go to 30
185 continue
do 190 ip=l,ipk
if (ip.eq.l) go to 190
m d = i p a t h (ip, i)
nod=iabs (ipath (ip, 2) )
if (ipath(ip,2).it.O.and.d(md).le.O.) go to 195
if (ipath(ip,2).gt.O.and.d(md).gt.O.) go to 195
190 continue
norm (kt) = 0
go to 175
195 nd(md, i)=0
nd (md, 2 )=nod
nodl=nod
ipl=ip
200 iq=ipath (ip, 3)
m d l = i p a t h (iq, 1 )
d (real) =d (real) -d (md)
152 P.A. DOWD
if (ipath(iq,3).eq.O) go to 205
ip=iq
go to 200
205 do 230 i q = i p l , i p k
m c = i p a t h (iq, i)
ndc=iabs (ipath (iq, 2) )
n a f = i p a t h (iq, 3 )
if (ndc.eq.nodl) go to 215
ip=naf
210 if (ip.eq.ipl) go to 215
ip=ipath (ip, 3 )
if (ip.lt.ipl) go to 230
go to 210
215 do 225 n = n i t , n i t k
if (itree(n).ne.mc) go to 225
if (n.eq.nitk) go to 225
m e m = i t r e e (n)
nl=n+l
do 220 n z = n l , n i t k
itree (nz-l) =itree (nz)
220 continue
itree (nitk) =mem
go to 230
225 continue
230 continue
do 235 n = n i t , n i t k
if (itree(n).eq.md) go to 240
235 continue
240 iroot(lar, 2)=n-nit
ik=ik+l
iroot (ik, i) =n
iroot (ik, 2 )= n i t k - n + l
kn=kn+l
norm (kn) =ik
if (knm.lt.kn) knm=kn
if (ikm. it. ik) ikm=ik
go to 175
245 n = i p a t h (I, i)
s=s+d (n)
do 250 ip=l, ipk
n=ipath (ip, 1 )
nd(n, i)=0
nd (n, 2 )=0
d(n)=O.
n o d e = i a b s (ipath (ip, 2) )
call coord (node,numx,numy,kl,j,i)
log(i, j ,kl)=I
if (iplan(i,j).it.kl) iplan(i,j)=kl
250 continue
nel=ne
n=O
255 n=n+l
260 if (n.eq.ne) go to 280
if (nd(n,2).eq.O) go to 265
go to 255
265 nl=n
n2=ne-i
do 270 na=nl,n2
nd (na, I)=nd (na+l, i)
nd (na, 2) =nd (na+l, 2)
d(na) =d (na+l)
270 continue
ne=ne-i
THE OPTIMAL DESIGN OF QUARRIES 153
ml=nel
do 275 m=l,ml
if (itree(m).gt.n) i t r e e ( m ) = i t r e e ( m ) - i
275 continue
go to 260
280 if (nd(ne,2).eq.O) ne=ne-i
do 285 n = n i t , n i t k
itree(n)=O
285 continue
iroot(lar,l)=O
iroot(lar,2)=O
icon=2
go to 310
290 continue
if (nitk.eq.nel) go to 300
nl=nitk+l
do 295 n=nl,nel
itree(nit+n-nl)=itree(n)
295 continue
3O0 do 305 l=l,lk
if (iroot(l,l).it.nit) go to 305
iroot(l,l)=iroot(l,l)-nc
3O5 continue
go to 42
310 i=0
315 i=i+i
320 if (l.eq.lk) go to 335
if (iroot(l,l).eq.O) go to 325
go to 315
325 Ii=i
12=ik-i
do 330 ia=ii,12
iroot (la, i) =iroot (la+l, i)
iroot (la, 2) =iroot (la+l, 2)
330 continue
if (lir.gt.ll) lir=lir-i
ik=ik-i
335 if (iroot(Ik,l).eq.O) ik=Ik-i
if (ik.eq.O) go to 32
go to (145,290), icon
340 nit=iroot (lar, i)
nc=iroot (lar, 2 )
nitk=nit+nc-i
ipk=l
n n d = i t r e e (nit)
ipath (i, i) =nnd
ipath (i, 2) =nd (nnd, 2)
ipath (i, 3) =0
ip=l
345 node=iabs (ipath (ip, 2 ) )
nn=ipath (ip, i)
go to (65,350,160,350) ,isw
350 do 360 n = n i t , n i t k
n n d = i t r e e (n)
if (nnd.eq.nn) go to 360
if (node.ne.nd(nnd, l)) go to 355
ipk=ipk+l
ipath (ipk, 2 )=nd (nnd, 2 )
ipath (ipk, i) =nnd
ipath (ipk, 3) =ip
if (ipkm. it. ipk) ipkm=ipk
go to 360
355 if (node.ne.nd(nnd,2)) go to 360
154 P.A. DOWD
ipk=ipk+l
ipath(ipk,2)=-nd(nnd,l)
ipath(ipk,l)=nnd
ipath(ipk,3)=ip
if (ipkm.lt.ipk) ipkm=ipk
360 continue
if (ip-ipk) 365,370,370
365 ip=ip+l
go to 345
370 go to (41,185,450,245),isw
380 im=O
jm=O
sm=O
do 385 i=2,numx-i
do 385 j=2,numy-i
if (log(i,j,ks).gt.O) go to 385
if (val(i,j,ks).le.O) go to 385
if (val(i,j,ks).le.sm) go to 385
sm=val(i,j,ks)
im=i
jm=j
km=ks
385 continue
if (sm.eq.O.) go to 25
log(im, jm,km)=2
ne=ne+l
nd (he, i)=0
nd (ne, 2 )= (km-l) *numx*numy+ (jm-l) *numx+im
d (ne) =sm
itree(ne)=ne
Ik=ik+l
iroot(ik, l)=ne
iroot(ik,2)=l
if (nem.lt.ne) nem=ne
if (ikm.lt.lk) ikm=ik
nds=ne
itr=ik
go to 55
Print results
400 write(6,910) s
kollu=O
kol=O
koll=O
do 415 k=l,numz
do 410 j=l,numy
do 405 i=l,numx
if (log(i,j,k).eq.l) iplan(i,j)=k
if (log(i,j,k).eq.l.and.val(i,j,k).It.O) kol=kol+l
if (log(i,j,k).eq.l.and.val(i,j,k).gt.O) koll=koll+l
if (log(i,j,k).eq.l.and.val(i,j,k).ne.O) kollu=kollu+l
405 continue
410 continue
415 continue
write(6,*)'total number of blocks in pit',kollu
write(6,*)'number of positive blocks in pit',koll
write(6,*)'number of negative blocks in pit',kol
do 420 i=l,numx
write(6,905) (iplan(i,j),j=l,numy)
420 continue
stop
450 zz=l
write(6,900) zz,nem, lkm,node
THE OPTIMAL DESIGN OF QUARRIES 155
stop
end
subroutine coord(n,numx,numy,k,j,i)
kt=n/(numx*numy)
k=kt+l
if (n.eq.kt*numx*numy) k=k-i
del jt=(n-numx*numy*(k-l))/numx
j=jt+l
if ((n-numx*numy*(k-l)).eq.ik*jt) j=j-i
i=n-numx*numy*(k-l)-numx*(j-l)
return
end
application o f computers and operations research and sequencing. 23rd Symposium on the applica-
in the mineral industries (APCOM). Colorado tion o f computers and operations research in the
School of Mines, 2, F131-F142. mineral industries (APCOM). AIME, Littleton,
DOWD, P. A. 1976. Application of dynamic and Co., 411-422.
stochastic programming to optimize cutoff -- & -- 1993. Open pit optimization: I Optimal
grades and production rates. Transactions o f the pit design. Transactions o f the Institution o f
Institution o f Mining and Metallurgy, 85, A22- Mining and Metallurgy, 102, A95-A104.
A31. LERCHS, H. & GROSSMANN, I. F. 1965. Optimum
- 1980. The role of certain taxation systems in the
-
design of open pit mines. CIMBulletin, 58, 47-54.
management of mineral resources. In: JONES, M. O ~ R , A. H. 1992. Optimal open pit design and
J. (ed.) National and international management o f planning. PhD thesis, Department of Mining and
mineral resources. IMM, London, 329-335. Mineral Engineering, University of Leeds, UK.
& ELVAN, L. 1987. Dynamic programming - - & DOWD, P. A. 1993. Optimization of open pit
applied to grade control in sub-level open mine design: II Production scheduling and the
stoping. Transactions o f the Institution o f inclusion of roadways. Transactions o f the
Mining and Metallurgy, 96, A171-A178. Institution o f Mining and Metallurgy, 102,
-- & DAVID, M. 1976. Planning from estimates: A105-A113.
sensitivity of mine production schedules to WHITTLE, J. 1989. The facts and fallacies o f open pit
estimation methods. In: GUARASCIO, M., DAVID, optimization. Whittle Programming Pty Ltd,
M. & HUIJBREGTS, C. D. (eds) Advanced North Balwyn, Victoria, Australia.
Geostatistical estimation of manganese oxide resources
at the Nsuta Mine
S. A L - H A S S A N & A. E. A N N E L S
The Nsuta manganese deposit is located about 6.5km south of Tarkwa in the
southwestern region of Ghana. It is associated with a carbonate horizon within a
thick series of interbedded grey tufts and thin argillaceous horizons of Precambrian,
Upper Birimian age. The manganese oxide mineralization, produced by supergene
enrichment of the stratiform carbonate horizon, occurs as massive, patchy or bedded
accumulations of psilomelane, with numerous veinlets and cavity fillings of
pyrolusite. Due to the impact of folding and faulting and past mining activity
(open-pit), the remaining resources have a complex spatial distribution. The study
described is based on a portion of this deposit referred to as Hill D (South Crest).
Initial statistical studies revealed the existence of two assay populations which appear
to correspond to two geologically identifiable ore types that cannot be differentiated
at the present scale of mining. Two geostatistical methods (ordinary kriging and
indicator kriging) were used to evaluate the resource and the estimates so produced
were then compared. A wireframe model was used to constrain the three dimensional
geostatistical block model.
Manganese occurrences are known in almost all been estimated at the Nsuta mine using the
the Regions of Ghana, but the main deposits are cross-sectional method. The high grade ore,
found in the Western Region. However, the which contained up to 60% Mn, is now almost
Nsuta manganese deposit is economically the depleted and this has led to the beneficiation
most important. The other deposits are either of lower grade material. The low grade of the
too small or their grades are so low that they are mineralization, coupled with escalating opera-
currently uneconomic to exploit. ting costs and the volatility of metal prices,
The Nsuta manganese deposit is situated demands more careful short and long term
alongside the Sekondi-Kumasi railway line. It planning and, in particular, more accurate
is only about 6.5kin south of Tarkwa (Fig. 1), grade predictions.
one of the centres of extensive small scale gold The objective of this paper is to present and
mining in the country. The deposit occupies five discuss the results obtained from the application
hills, designated A, B, C, D, and E, which are of geostatistical techniques to the evaluation of
oriented along two lines with bearings of the manganese oxides within Hill D (South
N15°E-N20°E and which have been traced Crest) using samples from drill holes which were
continuously for about 4km. They are inter- logged between 1955 and 1960.
connected by saddles and some of them are In any geostatistical estimation exercise it is
divided into two p a r t s - - n o r t h and south crests. essential that a thorough understanding of the
The deposit was discovered in 1914 by the geology exists. In this case, there is a serious lack
then Gold Coast Geological Survey. Open pit of geological information on the deposit and
mining of the deposit started in 1916 and has thus the authors were forced to rely on the
been in operation since then. construction of a 3D wireframe model, based on
The manganese oxide ore is generally classi- the down-hole grade distribution, to control the
fied according to grade as: geostatistical block modelling of the deposit.
From Whateley, M. K. G. & Harvey, P. K. (eds), 1994, MineralResource Evaluation IL" 157
Methods and Case Histories, Geological Society Special Publication No. 79, 157-169.
158 S. AL-HASSAN & A. E. ANNELS
2 ° 00' 1 ° 56'
5 ° 20' . . . .
i 5 ° 20'
~[~ K]JMASI
>
SETTLEMENT
'/////A "BANSO
NSUTA
t
TAYLORKROM
5 ° 1 5' 5* 15'
ACHIM ~ i LEGEND
DEPOSIT
0 2 Km
I I MAJOR
Fig. 1. Location of the Nsuta manganese deposit (shaded block) and map of Ghana showing the location of Nsuta
(insert). (Reproduced from Kesse 1985.)
ESTIMATION OF NSUTA MANGANESE OXIDE RESOURCES 159
supercrustal rocks of this area are subdivided material remains. This grades downwards into
into two main groups, namely, the older a lower grade, porous ore (C) containing
Birimian Group and the younger Tarkwaian remnant quartz vein material. There is also a
Group. The Birimian is subdivided into Lower general downward increase in the amount of
and Upper Groups. Manganese occurs as a argillaceous impurities in the form of clays and
definite horizon within the Upper Birimian halloysite. At the lower levels the oxide is
(Soper 1979). interbedded with weathered beds of phyllite
Manganese carbonate forms the primary and tuff (D) (Service 1943).
source from which the manganese oxide has The overlying detrital ore is the result of more
been derived by weathering processes involving recent weathering and erosion of the manganese
laterization and supergene enrichment. The chief oxide bodies exposed at the surface. It consists
manganese oxide minerals are pyrolusite and of rounded boulders and small fragments of
psilomelane. manganese oxide mixed with lateritic clay and
covered by a layer of lateritic clayey soil.
The distribution of oxide mineralization is
complex due to folding and faulting of the host
Birimian rocks. The principal faults dip steeply
(60-90 °) and trend in three main directions, viz.
(a) east or slightly north of east; (b) north to
NNW, (c) N N E to NE. These directions
conform with the main directions of faulting in
the area underlain by the Birimian rocks (Service
1943). There are also post-Birimian intrusives
which cut through the manganese bearing
horizon and add to the complexity of the
horizon. These include metabasalts, metadior-
-'~^~^~..~.Sq:~\\\\\\\ " , ~- T\-,~q\\\~..ll ites and granite porphyries. Quartz veins are
abundant throughout the mine area where they
vary in thickness from 0.03-1.3 m.
Data organization
The data used in this study consist of samples
taken at an average interval of 1.5m (5 feet)
from 152 vertical boreholes drilled by both
~ ~ ~ ~ ~ , ~ "" ~, ~ ~, ~ ~., ~ " / , ~", ~ "A~
'churn drills and diamond drills. The holes were
drilled on a random stratified grid whose grid
dimensions are approximately 24 m x 24 m. NX,
BX and AX diamond drill bits were used giving
Fig. 2. Diagrammatic section through a typical an average core diameter of about 43 mm. The
orebody (modified after Service 1943). A, hard
lateritic ore; B, black ore leached of quartz; C, porous drilling strategy used in the mine usually
ore cut by quartz veins; D, compact ore with bands of involves the use of churn drills (150ram) until
phyllite and tuff. (Not to scale.) hard formations are encountered when the hole
is continued using diamond drilling. The logs
from the 152 holes contain the coordinates and
elevations of the borehole collars, a brief
The in situ oxides usually conformably overlie description of the geological units from which
the carbonate horizon but may be cross-cutting the samples were taken and the percent
and lenticular when associated with the meta- manganese (Mn).
tuffs. The areal distribution is closely linked to The initial data organization involved the
the structure of the underlying Birimian (Kesse production of five files: collar, lithological,
1976). A diagrammatic section through the assay, survey and drill files, using Lotus 123.
deposit is illustrated in Fig. 2. At the top there To facilitate the creation of section plots and
is an indurated and reconstituted lateritic cap orebody modelling, the local coordinate system
of manganese oxide (A) which overlies a high was transformed into a new coordinate system
grade, porous black ore (B) from which nearly by a clockwise rotation through 38° so that the
all traces of quartz veining have been removed new eastings are parallel to the average direction
by leaching and in which little argillaceous of the drill lines (section lines).
160 S. AL-HASSAN & A. E. ANNELS
\\\ ) /
i "
~ XX "
/ / ,
N
25O 350 450 550 850
EASTINGS (a)
Fig. 3. Location of drill holes (in local coordinate system) and superimposed grid (in rotated coordinate system).
Figure 3 shows the drillhole layout (in the form the collar in each borehole and for each
local coordinate system) together with the drill type. Attempts to composite the samples
superimposed mesh (in the rotated coordinate over 6m, corresponding to the bench height,
system). were abandoned since they failed to produce
Variable length samples were composited in sufficient number of samples to allow the
each lithological unit over 1.5 m depth intervals production of good semi-variograms.
ESTIMATION OF NSUTA MANGANESE OXIDE RESOURCES 161
132.0
~°o
501.0
237.0
12.0
Fig. 4. Wireframe model of the manganese oxide mineralization at Hill D (South Crest).
Morphology of the mineralized zone tors have the tendency to assign grades to blocks
that fall well outside the mineralized zone. The
The shape of the ore body is controlled by the selection of blocks within the model is achieved
folding and faulting of the host rocks and thus by appending the wireframe model (using
marked changes can occur. Service (1943) states Datamines's ' A D D M O D ' facility), in which
that the thickness of ore-grade material can vary each block is coded, to the block grade model
in the study area from about 21 m to 1.8m over and selecting only those blocks from the
a lateral distance of just 146 m. combined model which have been so coded.
Good geological data are necessary in order
to delineate precisely the morphology of the Statistical analysis
mineralized zone. However, as was mentioned
earlier, these data are not available and therefore Mixing of diamond drill and churn drill
the downhole assay profile had to be utilized to samples
delimit the ore body in section.
Envelopes (also called perimeters) of the A relationship exists between sample volume
mineralized zone were digitized from drill hole and shape (support) and the statistical distribu-
sections. These were then linked together by tion of samples. Increasing the support has the
triangulation to form a three dimensional effect of reducing the dispersion variance due to
wireframe model (Fig. 4). Since the envelopes the 'smoothing effect', and the distribution
were drawn in order to incorporate all of the becomes more symmetrical. The only statistic
mineralization in the drill holes without the which does not change is the mean (Isaaks &
application of a cut-off grade, this model is the Srivastava 1989; Dowd & Milton 1987).
best possible approximation of the morphology If groups of samples are to be combined for
of the mineralized zone in the absence of statistical analysis, then they should belong to
structural data. The obvious advantage of such statistically similar distributions. Thus, to in-
a model is that it can be used to constrain the vestigate whether the data produced by diamond
resource estimates. Unconstrained linear estima- and the churn drilling belong to statistically
162 S. AL-HASSAN & A. E. ANNELS
similar populations, F- and t- tests were carried that it is a complex population with a major
out on these two populations. These tests mode at about 55% Mn and a minor mode close
indicate that the diamond drill and churn drill to the 20% Mn. The presence of bimodality is
samples can be combined. The samples from the confirmed by the marked inflexion (Marsal
total database were then composited over 1.5 m 1987) at approximately 50% Mn in the normal
intervals from the collar (regardless of their probability plot (Fig. 5b).
geological unit or drill type) in preparation for This bimodality is probably closely related to
further statistical analysis. the genesis of the mineralization in that the
major mode reflects high grade supergene
enriched oxide (hereafter referred to as Type 1
oxide) while the minor mode represents material
from the less altered oxide with clay and the
Histogram reconstituted oxide in the tufts (hereafter
Data file: CD20.DAT S t a t is t i c s
referred to as Type II oxide).
N Total 2810
N Niss 8
IN Used
Nean
Variant:
2818
37.219
2f~3.672
Histogram
Data file: CD21.~q! St a t i s t i c s
N Total : 1883
Std. Dev: 16,238 ]N Miss : 8
x C,U. : 43.f,29 MUsed : 1883
300.
Slyness: -. 5,..,~
lurtosis: 1.934 Pean : 48,388
Variance: 79,243
MiniPa~ : 1.338 SLJ. Per: 8,9112
2Sth 7. 23.274 × c.q. : 18.488
Kedian 12.145 3~. Skmmess: -2.148
lm ~th 7. 51.~ lurtosis: 8.2~
) Naximm 61.188
"5
Minimum : 4.631
e. 2Sth z : 46,539
0 38 GO Median : 51.814
V~thz : 54,892
~ximm : fi1.188
N Total : 2818
N Niss : 8
N Used : 2818 Fig. 6. Histogram of Type I oxide sample values.
Pe.an : 37.219
Pea'iance: ~3.672
S'd. Oev: 16.238
x C.O. : 43.629
Skewness: -.K]~ To ensure that sample values come from a
Pamtosis: 1.934 homogeneous distribution, the two populations
Ninimm : 1.338
were separated by retrieval from the original
t 2Sth 7. : 23,274 database according to their lithological code.
1
~d i an 42.145 Figure 6 shows the histogram of the type I oxide
75th x : 51,838
J ~ximm : 61.188 which is negatively skewed indicating an inverse
log-normal distribution. The histogram of the
IO 38 ~ T g type II oxide is illustrated in Fig. 7a. This has a
Cumulative Percent
coefficient of skewness very close to zero (0.4)
and the near-straight curve of the normal
Fig. 5. Statistics for total oxide population. (a) probability plot (Fig. 7b) indicates that the
Histogram; (b) normal probability plot. distribution may be accepted as normal. The
negative skewness exhibited by the global
histogram is due to the dominance of the Type
I oxide.
Frequency distributions The negative skewness of the Type I oxide
is typical of the grade of highly concentrated
The histogram of the grade of the 1.5m elements such as iron (Journel & Huijbregts
composite samples is shown in Fig. 5a. It is 1991). According to Koch & Link (1970), this
apparently negatively skewed but with evidence type of distribution has a natural limit, Z, called
of bimodality. This is probably due to the fact the 'chemical barrier', and the frequency curve
ESTIMATION OF NSUTA MANGANESE OXIDE RESOURCES 163
Histogram
Data file: C1)22.Btq! ~t a t i s t i c s
Histogran
Data f i l e : C~2t.I~II Statistics
t:1 'I
1
1
~
Veeianc~:
S~d. ~e~:
x C.V. :
Skewness:
Ilue~ is:
Hinimm :
153.2~
12.379
52.652
.363
2.492
1.338
tGIl.
Va~lance:
Sid. )co:
x C.U. :
Skewness:
l~tosis:
Minimm :
.Z36
.486
18.9r~
.61t5
3.436
.737
14.2~ ZSth x : 2.287
22.326 Median : 2.499
~th x : 31.9711 7Sth x : 2.888
Maxiu : %A28 Maximum : 4.878
(I.
I1. O. 1. 2. 3. 4.
I~ Tlln)
Bate Plot
Normal P r o b a b i l i t ~ for
f i l e : CD22.DRT
tl~
Statistics
Nomal F r ~ b a b i l i t ~ P l o t f o r L ~
nata f i l e : CB2I.DRI~
11~)
Statistics
/ Nean
qariance:
: 23 All
153.23G
~/
t.,,,x4
..... Mean
Variance:
: 2.%4
236
_j##f
St& Dev: 12,379 Std, )ev: .486
.
/ x C,O. :
i
x C.0. : $2,652 18,958
Skewness: .1~ Skewness: ,68S
/ Median :
?Sthx :
Maxi~ :
22.326
31.978
%.428
Median :
7Sthx :
Naximm :
2.499
2.880
4.870
8.
t t0 30 ~711 t tl) 305970 9e 99
Fig. 7. Statistics for Type II oxide sample values. (a) Fig. 8. Statistics for the logarithm of transformed
Histogram; (b) normal probability plot. values of Type I oxide sample values. (a) Histogram;
(b) normal probability plot.
Geostatistics
of the logarithm of their transform ( Z - x ) is
normal; where x is the raw data variate whose Geostatistically, the two apparently different
distribution is inverse log-normal. The chemical component populations should be treated sepa-
barrier, Z, of Mn in pure pyrolusite (MnO2) is rately. One of the criteria for being able to infer
63.19%. the characteristics of the mineralization from the
Figure 8a shows the histogram of the natural characteristics of the samples is that there must
logarithm of the transform Tm,~ ( = 63.19 - Mn) be a sufficient degree of homogeneity in the
where Mn is the raw manganese grade of 1.5 m mineralization as measured by the samples
composite samples. It has coefficients of kurtosis (Dowd 1988). Thus, geostatistical modelling
and skewness of 3.4 and 0.7 respectively which should be done with homogeneous sample
are close to those of a perfect normal distribu- populations. However, the two types of miner-
tion. Also, the log-probability plot of Tmn (Fig. alization are mixed in many places, and are
8b) approximates to a straight line. It is not a therefore not easily separable at the present scale
three-parameter log-normal distribution since of mining (6m benches). Journel & Huijbregts
the calculated additive constant is - 2 . 2 and it (1991) suggest that the most practical approach
produces some negative values whose logarithms is to combine them and assume that, though the
cannot be obtained. Thus, Tin, is assumed to be global distribution is bimodal, the ore is
a two-parameter log normal variate. homogeneous at the scale of a 6 m bench.
164 S. AL-HASSAN & A. E. ANNELS
The estimates resulting from ordinary kriging The experimental absolute semi-variogram for
(OK) of a bimodal distribution are suspect as the vertical direction was also modelled with
this is a parametric (distribution dependent) a simple spherical model, with zero nugget
estimation method. Systematic over-, or under- variance (of. Fig. 10). The model parameters are:
estimation of local grade estimates may thus
result. Indicator kriging (IK), which is nonpara- C = 171(%) 2
metric (distribution independent) was thus used a = 20m
to evaluate the in situ manganese oxide resources
so that the results from these two methods could
be compared. §
The three-dimensional structure of the deposit
was investigated by calculating directional semi-
variograms on the horizontal plane and also
in the vertical direction. The four horizontal
directions considered were: N-S (0°), N E - S W
(45°), E - W (90°), and N W - S E (135°). These
directions refer to the rotated grid system. A lag
spacing of 24m, equal to the average drillhole
spacing, and an angular tolerance of 22.5 o were
~ o
,o
used for the horizontal semi-variograms while 50
i
1O0
i
150
l I
200
J
250
I
300
I
350
I
400
L
450
the mean vertical semi-variogram was calculated AVERAGE DISTANCE ( h ) / m
Ordinary kriging 5 10
AVERAGE DISTANCE ( h ) / m
15 20 25 30 35
however, the sample length of 1.5m is quite a to supergene processes. The amount of manga-
substantial proportion of the range (8%) and so nese being concentrated by these processes is
it cannot be considered as a quasi-point semi- highly variable because of differences in the
variogram. Using the 1D regularization graphs, underlying bed-rock and by local factors such as
the parameters of the point semi-variogram were faulting. The deposition and hence, the concen-
determined as: tration of manganese oxide, is more uniform in
the vertical direction than in the horizontal
Co = 5.46(%) 2 direction as transport of the element in percolat-
C = 171.7(%) 2 ing water was mainly in the vertical direction in
a = 18.5m the weathering profile. Hence the vertical semi-
variogram has a lower sill value than the mean
Readers interested in the practice of dereg- horizontal semi-variogram.
ularization are referred to Annels (1991) and
Journel & Huijbregts (1991). It is evident that Zoca/resource eva&at/on. Local block (24x
the zero nugget variance observed in the 2 4 x 6 m 3) estimates were calculated using the
regularized vertical semi-variogram model is DATAMINE software. The calculation was
due to the obscuring of micro-structures by the done using the total data population and the
'smoothing effect' resulting from 'compositing' parameters of the three-dimensional model. The
of the point values over the sample length. axes of the search ellipsoid used were 65 m, 65 m,
and 18.5m in the X, Y and Z directions
Three-dimensional model. Although the point respectively. The output from this program
vertical model has practically the same nugget contains the coordinates (XC, YC, and ZC) of
variance as the mean horizontal quasi-point the centre of each block, the kriged estimate, the
semi-variogram, it has a smaller spatial vari- kriging variance and the block identifer (IJK).
ance. This suggests that zonal anisotropism
exists (the direction of zonality is in the Indicator kriging
horizontal plane). The three-dimensional point
support model adopted consists of an isotropic This method involves the use of the indicator
structure with a nugget variance and a longer values obtained from the total samples and the
range anisotropic structure which is only raw sample values of the two sub-population
relevant in the horizontal plane. The general separated on the basis of a threshold value.
equation of the three-dimensional model (Jour- The indicator values are obtained by applying
nel & Huijbregts 1991) is: the threshold value (COG) as:
obtained for the high grade population. They regression parameters, shown in this figure, are
are, however, more erratic, which may be close to those expected for perfect correlation,
attributable to the low number of pairs used to and thus the model satisfactorily characterizes
produce some of the points. They exhibit simple the spatial variability of the oxide grade.
structures, with the vertical semi-variogram
having a shorter range than the mean horizon-
tal semi-variogram. The parameters of the three- Scatter Plot
dimensional point model adopted are: Fr~,t data f i l e S I . ~ T
Co = 12.73(%) 2 ~" ! //
C = 66.55(%)2
ax = ay = 80m
a~ = 34.5m {{Pain : 2818
÷ ÷
Slope : 1.~
(iii) Indicator values. Semi-variograms from Intercept -.149
the indicator values show similar, but better, Correl. coeff, : ,957
structures to those of the global sample popula- Nean (ACTOAL - ~1'7~) : -0.07
tion (used for ordinary kriging). The point ~ {~,emoau- m'v~{. : 3.04
{lean(AcI~ WI'VXL)" 22.4
vertical semi-variogram of the indicator values krigin9 vui~ : 35.4
has the same nugget variance but a lower sill
value than the quasi-point horizontal semi-
variogram model. A zonal anisotropic model
has, therefore, been adopted. The second struc- ~STIJItL
ture is not relevant in the vertical regionaliza- Fig. 13. Cross-validation of semi-variogram para-
tion. The parameters of the three-dimensional meters for the total data set using OK.
model are shown below:
Co = 0.025
G = o.181 G = 0.035 Scatter P l o t
a, = 19.5ma2 = 75m Cvon data {'ile lqvBV~t.I~T
had no high grade estimates the kriging variance Fig. 14. Scatter plot of IK block grade estimates on
obtained from the low grade estimator was OK block grade estimates.
taken as the estimator of the block kriging
variance, a~(Vii).
Comparison of the OK and IK estimates
Model validation
The summary statistics of the block estimates
Using the back-estimation technique, which has obtained from both OK and IK are shown in
been clearly explained by Dowd & Milton Table 2. It is evident that there is little difference
(1987), the three-dimensional models were in the grade estimates. This observation is
cross-validated. Figure 13 shows an example supported by the near perfect correlation
representing the scatter plot of the actual against observed in the scatter plot, shown in Fig. 14,
the estimated value using the OK. The linear of IK estimates (IKEST) on OK estimates
168 S. AL-HASSAN & A. E. ANNELS
We would also like to thank the Ghana National ISAAKS, E. H. & SRIVASTAVA, R. M. 1989. An
Manganese Corporation, Nsuta, for their technical introduction to applied geostatistics. Oxford
support and permission to use this data. The support University Press, Oxford.
of the geology staff at the mine is gratefully acknow- JOURNEL, A. G. & HtmBREGTS, C. 1991. Mining
ledged. Geostatistics. Academic Press, London.
KESSE, G. O. 1976. Manganese Ore Deposits of
Ghana. Ghana Geological Survey Bulletin, 44,
13-35.
References
1985. The Mineral and Rock Resources of
ANNELS, A. E. 1988. An Introductory Course in Ghana. A. A. Balkema/Rotterdam/Boston.
Geostatistics--Lecture Notes. University Col- KocH, S. G. & LINK, R. F. 1970. StatisticalAnalysis of
lege, Cardiff (unpublished). Geological Data. John Wiley & Sons, Inc.
- - - 1991. Mineral Deposit Evaluation--A Practical MARSAL, D. 1987. Statistics for geoscientists. Perga-
Approach. Chapman & Hall. mon Press.
DIXON, C. J. 1979. Atlas of Economic Mineral PARKER, H. M. 1991. Statistical Treatment of Outlier
Deposits. Fletcher & Sons Ltd, UK. Data in Epithermal Deposit Reserve Estimation.
DOWD, P. A. 1988. Basic Geostatistics for the Mining Mathematical Geology, 23, 175-199.
Industry. MSc Course notes, Leeds University ROYLE, A. G. & HosGrr, E. 1974. Local estimation of
(unpublished). sand and gravel by geostatistical methods.
- - 1992. Geostatistical ore reserve estimation: a case Transactions of the Institution of Mining and
study in disseminated nickel deposit. In: ANNELS, Metallurgy (Section A: Mining industry), 82,
A. E. (ed.) Case Histories and Methods in Mineral A53-A62.
Resource Evaluation. Geological Society, Lon- SERVICE, H. 1943. The Geology of Nsuta Manganese
don, Special Publications, 63, 243-255. Ore Deposits. Gold Coast Geological Survey
-- & MILTON, D. W. 1987. Estimation of a section Memoirs 5, 5-28.
of the Perseverance Nickel deposit. In: MATH- SOPER, M. A. R. 1979. The Geology o f Nsuta
ERON,G.&ARMSTRONG,M.(eds) Geostatistical Manganese Deposit and surrounding Districts
Case Studies. D. Reidel Publishing Company, (Draft for Geological Society of Ghana Book
Dordrecht, Holland, 39 67. 'The Geology of Ghana'). Unpublished.
Structural reconstruction and mineral resource evaluation at
Zinkgruvan Mine, Sweden
A . E. A N N E L S , 1 S. 1 N G R A M 1 & L. M A L M S T R O M 2
o
L I I
development are designed to cope with a range project will be assessed (Datamine 1992).
of degrees of deformation from relatively simple It is hoped that this exercise will allow the
open folds to complex structures which are also production of new databases containing the
highly faulted. The aim is to preserve the areas assay information from diamond drill core and
of ore-blocks at the expense of some distortion chip samples whose 3D coordinates have been
so that tonnage estimates are unaffected. At the transformed by the unrolling and reconstruction
same time, blocks defined on these unrolled process. This will allow more accurate direc-
plans for local resource estimation will be easily tional variography of the metal accumulations
identifiable in that they will be bounded, where and thicknesses because, hopefully, the samples
possible, by mine levels and mining block will be in the same relative positions as they were
boundaries. immediately prior to deformation with only
The Zinkgruvan deposit in south-central minor angular changes in directional vectors
Sweden was chosen as a suitable subject for between pairs of samples. Such changes are
study in that comprehensive assay databases are acceptable given the tolerance angles usually
available and good geological control on the applied during variography (e.g. 10 to 22.5°).
orebody has been achieved by detailed under- From this study, kriging of irregular polygons
ground mapping. In particular, it was decided to should be possible to estimate the resources of
concentrate on the eastern or Nygruvan section individual mining blocks or stoping areas in the
of the orebody which shows the necessary range mine and to determine the global reserves of the
of styles and intensities of deformation on which Nygruvan deposit. More accurate information
the various methods could be tested. As well as will also be available to assess the efficiency of
utilizing 'in-house' semi-computerized techni- current sampling practices and their ability to
ques, thv ability of Datamine International's produce ore reserve estimates to the required
new 'Unfold' facility to achieve the aims of the level of precision.
STRUCTURAL RECONSTRUCTION, SWEDEN 173
~? i ~i ~~~ii!i'_?:!!:.
~~ ~ : ~ i : ~ . < .-~i " ! ' : . ~ : ~ / ::
~!~i!i!~i~i~i~i~!~i~ii!~!~i:'.:~i~....i!i~i~i~!i!-:::::~.::~!i!:~i~7.
i~i:i~ii:ili!~{il:i!~i~i~:":!~:i!~i,.:~+,+"
+` ++:s~oM
[~i!!i~ Felsic metctvo(ccln,c J ~ Mef~bosite Disseminated Zn-Pb ore
Fig. 2. General geological map of the Zinkgruvan mine area (after Hedstr6m et al. 1989).
Introduction to the Zinkgruvan Deposit the Zinkgruvan area consist of three litho-
stratigraphic groups (Hedstrom et al. 1989);
Zinkgruvan is a stratiform massive Zn-Pb-Ag the Metavolcanic Group is in the lowest
deposit which is situated in the southernmost stratigraphic position, followed by the Meta-
part of the Bergslagen ore province in south- volcano-Sedimentary Group, and finally at the
central Sweden (Fig. 1). It has a strike length of top of the stratigraphic succession is the Meta-
approximately 4.6km and has been proven to Sedimentary Group. This succession is, however,
depths of 1300 m. It is estimated that the original structurally inverted as the orebodies lie within
in situ tonnage was close to 40 million tonnes. In the overturned northern limb of a syncline
1857 the Vieille Montagne Company acquired whose axial plane dips in a northerly direction.
the deposit and started mining on a large scale. The Zinkgruvan Z n - P b - A g orebodies are
Today, the deposit is exploited in two under- tabular, sheet-like and have thicknesses which
ground workings, the Nygruvan mine and the range from a few metres to a maximum of 25 m.
Knalla mine (Fig. 2). Two mining methods are A NNE-trending fault system exists in the region
applied, the first of which is drift and benching and two major fault zones with this trend can be
and the second, cut and fill. Production in 1992 observed in the Zinkgruvan area. One of these
reached 650000 metric tonnes of ore grading subdivides the ore deposit into two sections; the
10.1% Zn, 2.4% Pb and 59 ppm Ag. Knalla mine in the west and the Nygruvan mine
in the east. The other fault zone interrupts the
Geology o f the deposit continuity of the ore in the Nygruvan mine (Fig.
2). In this mine, the dip averages close to 70 °,
The Bergslagen ore province is in an area of while at the Knalla mine and in the western parts
supracrustal and plutonic rocks formed during of the Nygruvan mine, the variation is much
the Sveco-fennian orogeny. The predominantly larger due to intense folding.
rhyolitic volcanic rocks are dated at 1.88Ga The ore zone occurs in the Metavolcano-
(Welin et al. 1980). The supracrustal rocks of Sedimentary Group, in which the dominant rock
174 A. E. ANNELS E T A L .
Ag ppm
2O
Pb°/.
, ,-a'-'--I I -Pc_
Zn */0
15
1
j-.- p --.~ H
I
5M
l ~ SkQrn
Fig. 3. Variation across the ore zone in the eastern part of Nygruvan mine. M, main ore bed; P, parallel ore bed
(after Hedstrrm et M. 1989).
Ag ppm
lZ,O
type is a metatuffite. Intercalated with the 120,
metatuffite are calc-silicate rocks, marbles, 100,
quartzites and tuffaceous metasediments. The
80,
ore minerals, sphalerite and galena, are hosted
by a quartzitic metatuffite. 60.
The ore zone itself can be divided into two z,O, ~
units, the Parallel Ore and the Main Ore (Fig. 3). 20.
The Parallel Ore, which is situated about 5-10 m
stratigraphically below the Main Ore, is not Pb %
mined at the present time. The Main Ore
horizon is more or less continuous along the
whole deposit. However, there are some differ-
ences between the eastern and the western parts Zn%
which are described below.
A typical stratigraphic section across the Main 20
Ore in the middle and eastern part of the 1.5
Nygruvan mine (Fig. 3) consists, close to the
stratigraphic footwall, of two to three layers of
disseminated sulphide. Varying amounts of 5
sulphides give rise to a pronounced stratifica- F
tion which is consistent along strike and down .H
dip. The layers have a thickness of around 1 m
and a combined Zn plus Pb grade of up to 15 %.
They are separated by a barren metatuffite. A i i
5H
unit of calc-silicate and carbonate bedded,
quartzitic metatuffite appears at a higher strati- Fig. 4. Variations across the ore zone in the western
part of the Nygruvan mine. For legend see Fig. 3.
graphic level with less than 6% combined Zn (after Hedstrrm et al. 1989).
STRUCTURAL RECONSTRUCTION, SWEDEN 175
Ag pprn
~00
120
100
80
60
~0
20
F
Pb%
35
30
20
Zn%
20
15
10
5
I
5H
Fig. 5. Variation across the ore zone in the Knalla mine. For legend see Fig. 3.
plus Pb and a width of 1-2 m. At the top of the developed here and the calc-silicate and carbo-
Main Ore unit there is an up to 8 m thick, nate bedded, quartzitic metatuffite are missing
massive, Zn-Pb bed which is overlain by a skarn and disseminated sulphides are now found in
layer. The massive ore has a combined grade of only one layer or are totally missing. The
up to 55%. The skarn, whose main constituent is massive ore is also more variable in thickness
diopside, is around 1.5m thick but it contains ranging from less than 1 m up to 15 m. A slight
only a few percent of Zn and Pb though the increase in galena can also be observed.
grade does increase towards the contact with the Further to the west, in the Knalla mine, the
massive ore (Fig. 3). Disseminated pyrrhotite is Parallel Ore has disappeared and the layers
abundant in the skarn. The skarn is also more stratigraphically below the massive ore are also
or less continuous throughout the whole deposit missing (Fig. 5). The Main Ore horizon here
which makes it an ideal marker for unrolling consists of layers of massive sphalerite and
purposes. Individual beds and layers are galena ore intercalated with metatuffite and it
generally continuous and consistent in grade varies between 0 and 20 m in thickness with the
over distances of several hundred metres in both most rapid changes occurring along strike. A
the strike and dip directions. further increase in galena is also evident. The
A stratigraphic section through the ore zone skarn is even more variable in width and
in the western part of the Nygruvan mine is encloses a calcite layer with disseminations of
shown in Fig. 4. The Parallel Ore is not so well galena. Current drilling in the deeper parts of the
176 A. E. ANNELS E T A L.
BI.OCK A .
i. B .
BL . .
ttc
BL D .
8508
f~j M20
VEL400 02
LEVEL 244 ~ . R a ~ B . . ~ U 4 . ~ LI ~ L
! '~---~- ~ ~ L E V E L 24x
8260
!
]60M
8100
2360 2520 2680 2840 30(}0 3160 3320 3480 3640
Fig. 6. Structure contour plan of the ore-skarn contact for the Nygruvan Mine, constructed using level and sub-
level geological plans.
Knalla mine indicates the existence of a more tion of the original dimensions of the deposit as
complex style of mineralization. laid down on the sea floor.
A structure contour plan of the ore-skarn
Structure of the Nygruvan Orebody contact has been constructed using level and
sub-level geological plans for the whole of the
In the N y g r u v a n section of the mine, the Nygruvan ore body and the result is summarized
orebody has a strike length of about 1.8km in Fig. 6. This was only possible due to the high
and, in areas which have not undergone intense degree of lateral continuity of the orebody below
folding, has dips which generally lie between 68 the 400m level. The Parallel Ore, although
and 70 ° to the northeast. Where folding is present in the Nygruvan section, has not been
intense, dips can become sub-vertical. Below included in this study as it would complicate the
the 400 m mine level, the ore-skarn contact has a unrolling exercise and, there are no plans to
high degree of continuity. Unfortunately, geolo- mine it at the present time.
gical mapping in the upper mine levels was poor There are two main areas of deformation
and there is thus a low level of confidence in any within the Nygruvan section, each associated
interpretation of the geological structure at these with a set of closely spaced faults which cause
levels. It was thus decided to perform the considerable dislocation of the ore zones. Before
unrolling exercise between the 502m level and reconstruction can be achieved, it is necessary to
the 800m level, the deepest mined level in this determine whether the faults are the cause of the
section of the mine. A clearly distinguishable tuff folding or vice versa, and also the magnitude of
layer is intercalated within the ore zone which the throw on the faults. The amplitude of the
shows intense small scale isoclinal folding, folding increases to the southeast with most
indicating that a significant contraction has deformation and shortening occurring in the
occurred in the spatial dimensions of the ore strike direction. The most complex fold occurs
zone over and above that caused by the large between, X = 3240 and X = 3400, in fault block
scale folds. This shortening of the ore zone by D (see Fig. 6) where the ore horizon is folded
this small scale isoclinal folding will not have back on itself in the strike direction in addition
any significant impact on the validity of the to being faulted. This area will require careful
geostatistical study of the in situ resource but treatment during unrolling to ensure that
would have to be taken into account if unrolling distortion is minimized. A second area, which
were contemplated for the purposes of a lies between X - 2760 and X = 2920 in fault
palaeogeographic interpretation or a determina- block B, contains a much less complex fold
STRUCTURAL RECONSTRUCTION, SWEDEN 177
structure with associated faults, and should pose parts of the orebody if no significant grade
less of a problem during unrolling. The adjacent changes have been observed. When the reserves
areas are relatively undeformed and can be used are being estimated for a stope, the grade is
to represent the situation where open folding determined by weighting the length weighted
exists. grade of a line of chip samples by its 'volume of
influence' which is determined by the distance
between mine levels. A minimum stoping width,
Data collection and ore evaluation methods which is determined by the mining method to be
at Zinkgruvan employed, is also taken into account. For
example 'cut and fill' stopes require a minimum
The purpose for which samples are collected, width of 3.0 to 4.1 m. A stope overbreak of 20-
and the sampling technique and density used, 27% is also applied depending on the mining
depends on the stage that different areas of the method. The end product of the calculation is
mine have reached in their development and the value of the ore expressed in Swedish Krona
evaluation. per tonne.
In the exploration phase, information is The total tonnage of a stope is calculated by
obtained by core drilling and the analysis of using the distance between the levels on VLP
core samples. The spacing of the drill holes and the horizontal cross sectional areas of the
depends mainly on the complexity of the orebody on the two bounding mine levels. This
geology. In the western part of the ore deposit, method is, however, only possible in areas where
where the folding is much more intense, the the ore thickness and the grade are relatively
spacing can go down to 40 m while in the eastern uniform and where structural complexity is not
part the spacing is up to i00m. The ore reserves too great. Global mine reserves can then be
calculated from this drilling are done by manual calculated by volume weighting these stope
polygon methods on a vertical longitudinal grades and accumulating the tonnages
projection. Mapping of the stope backs is done on a
In the exploitation phase, when more exact regular basis at a scale of 1:400 but if more
information is needed on the location of assay detailed information is needed it is undertaken at
hanging-walls and footwalls and on the thick- a scale of 1 : 200. In addition to the core drilling,
nesses and grades of the potential ore zone, chip systematic chip sampling and mapping are also
sampling, sludge drilling, geological mapping used for ore reserve calculation.
and 'down-the-hole' geophysical surveys (nat-
ural gamma, g a m m a - g a m m a and magnetic Structural unrolling: previous work
susceptibility logging) may be used. One of the
most important reasons for this work is grade To date there has been little published in the
control, i.e., to ensure that overbreak during scientific literature regarding the unrolling of
stoping is kept to a minimum and that the grades stratabound and stratiform deposits prior to the
of the ore remain above the economic threshold. geostatistical evaluation of their in situ resource.
Chip sampling is undertaken by marking a line However, an important paper by Sides (1987)
across the width of the ore zone in the back of describes an unrolling technique which was
the drive or stope; this is then divided into developed during reserve estimation at Rio
lengths depending on the lithology and miner- Tinto Minera's Bama and Brandelos copper
alization. These lines are spaced at intervals of mines in north west Spain. These deposits
15-20 m along strike so that every stope on every consist of stratabound mineralized stockworks
main level is sampled. The samples are collected within a metamorphozed ophiolite complex
using a hand-held air-pick. A series of 15 mm which has been subjected to a relatively open
diameter circular holes are drilled to a depth of style of folding.
10 mm over the sample length. The cuttings are In order to unfold the mineralized horizon, an
sucked into the bag of a vacuum cleaner which is interpreted median plane was selected as the
changed for every new sample. Sampling is structural reference plane (see Fig. 7). To
undertaken from the footwall to the hanging- account for lateral as well as vertical displace-
wall following the pre-marked line. Footwall ments, the reference plane was interpreted from
and hanging-wall formations are also sampled to two sets of sections oriented N-S and E-W. Two
the maximum width of the excavation. The sets of control points were created (N-S, E-W),
samples are then analysed for Zn, Pb, Ag, Cu with points being marked at 25 m intervals in
and Fe. This sampling strategy means that the both directions from two reference lines. To
spacing of lines of chip samples between m i n e calculate the unrolled position of a point (A) not
levels can be up to 150 m in the more uniform located on the reference plane, a line is projected
178 A. E. ANNELS ET AL.
400M 400M
300M BOOM
ZOOM 200H
Fig. 7. Median plane used as the re~rence plane for unrolling (~omSides 1987).
~j
I s I S
S
S
J J
s J ] J,
,#'
h
s I
HORIZONTALPLAN PROJECTION
( X . . . . . . -X
N-S M l c r o p l o n e
E---X----X-
0 25 50 100 125m
LAYER4 /
/ i
i s/ s'
t/ i" /
B;~ B 2 LAIRS
i s
Stratlgraphlccoordinate (SC) of point Q:
SC(Q0=4+A,Q#A;B; X
SC(Q~--4+A,Q~X~ X
SC<Q~HS
,C<Q~,H~____C~>H
/H
,, X Dip Plane
Fig. 10. Method to determine stratigraphic and down dip co-ordinates of a data point (based on David 1988).
180 A.E. ANNELS E T AL.
orthogonally onto the reference plane from the To determine the down dip unrolled coordi-
point so as to intersect it at point B (see Fig. 8). nate of data points the intercepts of this
A triangular 'microplane' is then defined from perpendicular line within the two bounding
the closest three control points, on the two stratigraphic horizons are calculated relative to
bounding section lines, first using the control adjacent control points on each horizon (again
points for the N-S direction (j), and then using by linear interpretation) (Fig. 10). As the
the control points for the E - W direction (i). geological distances around the folds from a
Two of the control points (i or j ) will lie on the reference line to the control points on each
same i or j coordinate line while the third will horizon are known, this allows the unrolled
have a different unrolled i or j coordinate. The coordinates of the data points to be calculated.
local trend of the microplane is determined using If a point lies between sections then linear
the two common control points, (e.g., 2 and 3 on interpolation is undertaken between sections.
Figs 8 and 9), so that the projected point (B) No account is given by David (1988) as to the
may be extrapolated parallel to this local trend separation, or frequency of points used to
to point C on Fig. 9, which lies between control control the unrolling (control points) or as to
points 1 and 2 on the same section line. The whether their selection is based on a user defined
unrolled coordinate (i or j ) for point C is then or rigid grid.
determined by linear interpolation between the
values of the adjacent control points on the Structural unrolling at Nygruvan
section line. The new unfolded Z coordinate (k)
is the projection distance (A-B) which is Figure 6 shows that the Nygruvan orebody can
calculated and then assigned a positive or be subdivided along strike into four blocks, each
negative value depending whether the point is separated by a fault. The deformation intensity
above or below the median reference plane. and style in each differs significantly and thus an
Transformed unfolded coordinates (i, j and k) ideal situation presents itself to test various
were then used to calculate semi-variograms for unrolling methods. At this preliminary stage of
copper % in the usual way. As a result, Sides the project, two areas were selected for further
(1987) found that a significant lowering of the study, namely fault blocks B and C on Fig. 6. At
nugget effect was achieved for horizontal a later stage, fault block A, which is intermediate
directional semi-variograms indicating that the between B and C in terms of intensity of
error introduced by not unfolding the control deformation, and fault block D, which is an
points was not insignificant. example of extreme deformation, will be un-
An additional method to unroll deformed ore rolled.
bodies is described by David (1988). This uses
the interpolation of distances between sections, Unrolling method 1: minor folding
and may be used only on cylindrical simple folds
containing geologically distinguishable strati- This method of unrolling is suitable for areas in
graphic horizons. Three axes are defined; a which only minor deformation has taken place,
strike axis, and two axes within sections and in which open folds exist (or the limbs of
perpendicular to the strike direction. One of such folds). Fault block C, between X = 2 9 5 0
the latter is the dip direction of an average dip and X = 3300 m in Fig. 6, is ideal in this respect.
plane for the whole orebody, while the other is The orebody thickness, or strained thickness
perpendicular to this plane. resulting from deformation, is not considered in
The first stage in the unrolling procedure is this planar geometric unrolling procedure, which
the construction of a perpendicular line from the uses the ore-skarn contact as a marker horizon.
reference plane through each data point (Fig. This contact lies on the stratigraphic hanging-
10). To determine the stratigraphic coordinate wall of the orebody, and was chosen as it is a
(SC) of a data point (Q), its position on the clearly defined contact which can be easily
perpendicular line drawn from the reference dip located in underground exposures and in drill
plane relative to the closest overlying strati- core. Structure contours of the o r e - s k a r n
graphic layer must be determined. The actual contact shown on Fig. 6 are based on geological
value calculated, by linear interpretation, is the mapping along mine levels and sub levels.
distance below this layer to the data point This unrolling method is based on a grid of
expressed as a ratio of the distance between fixed points which are unrolled from baselines
this layer and the immediately underlying layer selected perpendicular to the unrolling directions
(e.g. a point half way between layers 4 and 5 (Fig. 11). A set of grid lines, approximately
would be allocated a stratigraphic coordinate normal to the strike, are superimposed over a
value of 4.5). plan of ore-skarn structure contours (labelled
STRUCTURAL RECONSTRUCTION, SWEDEN 181
B C D E F G H
LEVEL808
LEVEL 773
LEVEL 746
LEVEL 738
LEVEL 719
LEVEL 659
LEVEL 625
LEVEL 602
LEVEL 570
LEVEL773 LEVEL 5,5O
LEVEL746
LEVEL738 LEVEL 502
LEVEL719
LEVEL625
LEVEL602
LEVEL570 ~ ~
LEVEL560
LEVEL502 ~
A" B" C" D' E' F" G" H' I' J'
A B
Yclrectlonba~e~e x.
a) ~, 570 m
f ~0q+X,),fV,+Y,)
O"('Y1"I'Y~ 41
- Xc
550 m
Xf,,,,geologlcaldlstance 0,Y1 I'~ ~..~N-- X,,Y,
Y~,lope chtance
X Controlpoint X, ~- ~ ~ ~ - - ~ X g 502 m
X x,.o
d Xi,0
Ref~ence contour ~
0~0
b) A"A
~V, untoll~l I o e o t ~
* ®
g~d po~
Reference contour
Fiq. 12. (a) Explanation of algorithim used in unrolling method 1. (b) Accumulation of X and Y geological
distances to calculate unrolled coordinates of an unrolled point.
182 A.E. ANNELS E T A L .
X~O0
_ ~VEL
~8
8t;~0 1900
773
746
733
8a00 _ 719
659
8700
B700 ~ 602625
570
LEVEL
86OO
~ -
83O0 i I I I I I I I I I I I
A'-A through to J'-J in Fig. 11). Each grid line referred to as the reference contour. The first
and mine level contour intersect at a point whose control point (now a datum point) on each mine
three dimensional coordinates (x, y, z) can be level contour was used to construct the baseline
determined; the z coordinate being determined for unrolling in the x direction (in this case line
from the elevation of each mine level. A grid of A'-A).
control points is thus established whose spacing The geological distance is the true distance
is regular in only one direction, i.e., in the strike between two stratigraphically equivalent points
direction of the orebody. In the down-dip measured around the foldcd structure. The
direction along grid lines, e.g., A'-A, the grid distance between each control point along a
spacing is irregular being controlled by the mine level contour is measured in a direction
contour separation, which is ultimately con- away from the y direction baseline (commcncing
trolled by the mine level and sub-level separation from datum points along line X - A in Figs 11
and dip. Two baselines were selected so that the and 12a). For processing purposes, this distance
control points could be unrolled in the x and y is associated with the control point to which it
planes, relative to a set of datum points. The first was measured. The geological distance is thus
of these baselines was the highest mine level greater than, or equal to, the direct point to
contour which was used for unrolling in the y point distance. All geological distances between
direction (i.e. mine level - 5 0 2 m) and hereafter control points along each mine level contour are
STRUCTURAL RECONSTRUCTION, SWEDEN 183
2755 2880
8 5 2 0 _ _ 8520
H I
F F J
C E K L
LEVEL658
~G' ,
I2VEL 602
LEVEL575
IF" L 548
E" •
D" ~ LEVEL504
8445 _ _
B" C" 25M I ~ 8445
2755 288O
F
Fig. 15. Unrolling method 2 for more complex structures using linking of user defined geologically equivalent
control points. Fault block B Nygruvan.
thus accumulated in the x direction, thus to produce a graphical output. The original and
unrolling the control points along the strike of unrolled plots produced are presented in Figs 13
the orebody. and 14.
To unroll the control points in the down-dip
direction onto a horizontal plane in the y Limitations of the method
direction, distances are measured from the first
control point on a mine level contour to the This method of unrolling has, however, a
corresponding first control point in the next number of limitations which restrict its use to
mine level contour below (moving down grid line areas of minor deformation. For example, once
A'--A, in Figs 11 and 12a). The first distance that a grid orientation has been selected on a
is measured is that between level - 5 0 2 m and geological basis, measurements of distances
- 5 5 0 m (e.g. a-b in Fig. 12a), then the exercise between control points are in a set direction so
is repeated between - 550 m and - 570 m (e.g. that when a change in orebody orientation
b-c in Fig. 12a) and so on. This is then repeated occurs the distances between the control points
for each grid line. Because the orebody is are not those in the strike and dip direction of
inclined, the slope distance (Y;) must be the deposit. Unrolling then takes place in
calculated, using the measured horizontal dis- directions across the dip and strike. The
tance, and vertical mine level separation. It is problem is particularly serious when the ore-
assumed that the segment of ore between each body orientation becomes sub-parallel to the
pair of control points is planar. These distances grid lines, so that large strike lengths of ore
are then accumulated from the reference contour occur between control points on adjacent grid
( - 5 0 2 m), producing an unrolled grid in the y lines, reducing the resolution of the structure.
direction. The unrolled x, y coordinates of each Also, the unrolling of overturned fold limbs is
control point are thus the accumulated x and not easily achieved by this method.
accumulated yincrements as in Fig. 12b. A plan The selection of grid dimensions is critical in
can now be constructed of the unrolled control that a large grid dimension will only provide a
points in the x-y plane with the z coordinate small number of control points on the structure,
being equal to the elevation of the reference while a small grid dimension will provide many
contour. All the data acquired were compiled more control points and thus much greater
and manipulated on an EXCEL spreadsheet from resolution of orebody structure.
which an ASCTIfile was produced of the unrolled Geologically equivalent points are not selected
coordinates. This file was then input to SURFER between mine level contours due to the rigid
184 A.E. ANNELS E T AL.
%. ~ X . . . . . XX XXX
,~4m
575 m
method to enable the unrolling of more complex
structures. Fault block B from the Nygruvan
orebody (Fig. 6) was deemed a suitable fold
structure on which to test this method. In this
case, the user defines control points on each
mine level contour, moving down-dip to each
successive mine level contour, and linking each
control point with structural tie-lines (Fig. 15).
The control points which are linked along lines
A ' - A through to L'-L, are defined by the
geologist and are not restricted to a rigid grid
system. It is now possible to link geologically
equivalent control points together down the dip
842o __ I I I I I I of the orebody which later will be unrolled
2790 2830 2870 2910
together. A random grid of control points is thus
Fig. 16. Unrolled plan of control points in Nygruvan created defining irregularly shaped grid blocks.
fault block B using unrolling method 2 and employing Geological distances are measured between the
fixed baselines of datum control points in the X and Y control points along mine level contours and
directions. slope distances are calculated in the down-dip
direction between linked control points as in
U n r o l l i n g m e t h o d 2: c o m p l e x f o l d i n g method 1. These slope distances are accumulated
along lines A L A to L'-L.
This modification is a development of the first Two separate attempts were made to unroll
STRUCTURAL RECONSTRUCTION, SWEDEN 185
the fault block B fold after the control points Limitations of the method
had been linked and geological distances
measured. It soon became apparent that the The initial control grid is irregular in both
choice of baseline, and control points to use as directions and thus each unrolled grid block also
datum points, is critical. Initially, all control has an irregular shape. As a result, it will be
points along line A'-A and the - 5 0 4 m mine difficult to relate these blocks to mining blocks
level contour were used as datum points (Fig. on the original pre-unrolled grid. A second grid
15). Unrolling was achieved by accumulating the may have to be overlaid on top of the irregular
measured geological distances away from both control grid to define mining blocks which can
baselines of datum points, in the x and y then be unrolled using vectors associated with
directions. The resulting unrolled plan (Fig. 16) the original unrolling grid.
can be compared with the pre-unrolled structur- This method has successfully unrolled a thin
al plan of control points on mine level contours folded tabular orebody but thought must be
(Fig. 15). As can be seen, the two plans remain given to the effect that the thickness of the ore
basically similar, except that the unrolled plan is horizon and the type or classification of the fold
stretched in the x and y directions. The form of structure has on the unrolling process.
the unrolled levels is influenced by the shape of
the baseline datum ( - 5 0 4 m level). A second Unrolling of borehole intersection points
attempt was then made to unroll this particular
fold using only datum points along line AL-A. The methods described above have enabled the
The - 5 0 4 m contour was thus unrolled in a structure of the orebody to be unrolled, but what
straight line by the accumulation of measured is actually required is the production of unrolled
geological distances in the x direction. Each coordinates for drill hole or face samples which
successive lower contour was then unrolled may lie structurally above the ore-skarn contact.
relative to the datum points along A'--A and This exercise has not yet been undertaken but is
the now straight - 5 0 4 m contour, again by the next phase of the project. Initially, it will be
accumulation of measured and calculated geo- necessary to project the mid-points of these
logical distances. The resulting unrolled struc- samples orthogonally (or parallel to the dip of
ture can be seen in Fig. 17. The wide spacing the axial plane depending on the mechanism of
between contours is a function of the orebody fold formation) onto the the pre-unrolled
dip (approximately 70 ° ) when rotated onto the reference plane. The four control points at the
horizontal - 5 0 4 m reference plane. corners of the quadrilateral containing each of
51x2
. ~{~..~.-control point
550mA /~//4'
\ 6~_."
\\dl ,, " """ I" FOR POINT 'A':
~, i
\ / g.3 - - - - ~ " -" .,,XS x 3 T, XA = E ( E X , ) * ( 1 / d ~ ) n
E(1/d,)"
Y,yA = S(Yy,)*(1/d,) n
¢ ,X
r~(1/d,) °
Fig. 18. Method by which unrolled coordinate of a drill hole or sample point may be calculated using inverse
distance weighting methods.
186 A. E. ANNELS E T AL.
SECTION 2 ssSISS~
"~DOWN DIP
,SECTION 1 ~, ~ AX~ B
S/ l l/ %
--~~ACROSS j / ~)
,,ii ,'I @'°r/ON2
it
"'---j SECTIONAL
INTERPRETAI"IONS
~./~L~C_~O/V PLANV1EWOFSECTIONS
!
Fig. 19. Coordinate axis in the unfolded coordinate system (UCS).
the projected points will then be located and the centre line between the hanging-wall and foot-
distances to each calculated (Fig. 18). Inverse wall of the orebody and axis C is oriented along
distance weighting methods will then be applied strike of orebody.
to the incremental vectors in both the x and y 01~ HOI~ItON
directions at each of the four points. This will
SECTION2
then allow the accumulated x and y increments
at the sample point to be estimated giving the
unrolled coordinates of the point relative to the
reference baselines.
A~
AM
A.
H2
Is
I,
B. ~= 16
s*
Q~
H5
~rvl 4 ~!~i~.!¸~¸¸¸ i~!~i?~ ¸ ~!.i~i~i~:i~i~i~i~i-
i M5
f ~:i~¸ t
f
!i : ¸: I .¸.
.; / ~ i# •
C. ~iiii,i~!ili!!iii!iii!~,¸,
FF
~M
D.
FM
X User d e f i n e d link p o i n t
• Dligltlsed p o i n t
F.
• Point inserted a u t o m a t i c a l l y
e- - - ~ H W . t o FW. link l i n e
Fig. 21. Linking of control points between hanging-wall and footwall in DATAMINE'Unfold'.
made between hanging-wall and footwall strings, (2) 'adjusted'--the normalized value is multi-
which are user defined during digitization in plied by the appropriate average axis length;
exactly the same way as when tagging a wire (3) 'true length'--length measured from the
frame model. Points are linked which are UCS origin;
considered to have the same down-dip UCS (4) 'world co-ordinate system'--in standard x,
coordinates and to be geologically equivalent y , z coordinates.
(Fig. 21), though linking can also be done
automatically using a DATAMINE algorithm. To calculate the coordinates of any point Q,
Any point within the stratified unit will lie based on the A, B and C axes, DATAMINE
within one of these hexahedrons, and its 'Unfold' takes every digitized point on the
coordinates can thus be transformed into the hanging-wall and creates a corresponding point
UCS, which may be scaled in one of four ways: on the footwall, taking account of the links
defined by the user (see Fig. 21). This is achieved
(1) 'normalized'--unrolled distances are cal- by measuring the digitized distance from the first
culated as a ratio of the reasured distance (along linked point on the hanging-wall to the second
each axis) to the total axis length giving a value (e.g. AH H1 H2 BH in Fig. 21) and calculating the
between 1 and 0; ratio between the distance from the first linked
188 A.E. ANNELS E T AL.
UH
..'~ AR,
s, ..'" )k,Q111\
" " ~ R ,/ 1~ 1~1 ~ UF
/
.~," ~1 ,"'& ,,
,, ,, °%
& ," %
, ,40/ / ~,
l l ~ l l l l l
/
/ I ,' 88Cl10N 2
,' I
I
:
!' I ,
I
' I ,
iI I
!
/ ! ,J
I
I I i
,
I I
R1 SECTION 1
Fig. 22. Linking of control points between adjacent sections to calculate the UCS-C coordinate in
DATAMINE'Unfold'.
point to the first digitized point (e.g. AH H0 as A series of quadrilaterals is thus created in
below: section, and it is now possible to calculate the
UCS A and B coordinates, for point Q. A
R = AHH1/AHH1H2B H median plane containing points M1, M2, M3
etc, is created down the section of the stratified
This same ratio is then applied to the footwall unit as in Fig. 21. Coordinate A (in the direction
so that a new point can be created on this string of the across strike axis) is then calculated for
(e.g. I1 ). In this case: point Q by first identifying the quadrilateral
within which the point falls, i.e., CH, CF, I6, H6
AFI1/AFF1BF = R (shaded area). A straight line is drawn through
Q intersecting the hanging-wall and footwall
All digitized points on the hanging-wall are such that the ratio of each end length CHQH/
then treated in the same way to create a new CHH6 is the same as CMQM/CMM6 The normal-
set of equivalent points on the footwall. This ized value of the A coordinate for point Q is:
process is then repeated by creating new points
on the hanging-wall from digitized points on the
footwall. AN = QHQ / QHQp
STRUCTURAL RECONSTRUCTION, SWEDEN 189
and the normalized value of the B coordinate is: Conclusion and future work
The research described in this paper has been for concrete specifications were used (i.e. BS:812
carried out at a site in south-central Essex which and BS:882).
is characterized by Quaternary fluvio-glacial From a total drillhole database of 527 bore-
braided river gravels and sands overlain by a holes, three separate datasets were eventually
chalky boulder clay. The gravels are Beestonian produced to analyse the effect of various drilling
in age and the overlying till is the Anglian patterns and densities in different areas of the
Lowestoft lodgement till which covers large site. The drill hole location map (Fig. I) covers
areas of East Anglia and the East Midlands. an area of 3.5km by 1.5km. The close spaced
The area is a major producer of aggregate for drilling in the west of the area is the site of the
the south east of England, mostly from the 'research drilling'. The remainder of the bore-
unconsolidated Quaternary gravels of Essex, holes were drilled on an approximately 100m
Suffolk and Norfolk. A relatively small amount grid spacing and represent a standard evaluation
is also produced from offshore areas around the drill grid for the company undertaking the
coasts of these counties. The original aim of the evaluation.
research was to assess drilling and sampling The 'research drilling' database consists of 197
practices within the sand and gravel industry boreholes, with spacings down to 25 m together
and the application of standard geostatistical in with an additional 30 redrills which were sited
situ evaluation techniques to deposits of loose 1 m from the original hole. The 100 m database
aggregate. consists of 382 boreholes including holes in the
The gravels are predominantly composed of research area left after removal of those which
flint and quartzite with minor amounts of did not correspond to a 100 m random stratified
sandstone and volcanic rock. The principal end grid. The resulting dataset was regarded as a
use is in concrete production and for the purpose typical evaluation drilling grid.
of this research, the British standards relevant Data from borehole records were used to
From Whateley, M. K. G. & Harvey, P. K. (eds), 1994, Mineral Resource Evaluation II." 191
Methods and Case Histories, Geological Society Special Publication No. 79, 191-205.
192 J. ARTHUR & A. E. ANNELS
N
X X 0 500m lO00m A
x x
x x x
x w
x x x x
x x x x
# x x x xX
xX x x
x x x x
x x x x x x x Xx x x x x x x x x x x x x
x
x x x x x x x x :,,r xX x x x x x x x x x
x x x It x x )x x x x x x
x x ~1 x x x x x x x x x x x
x x [ ~ t x x x x
x x x x x x x x x
7 I x ~ x x
N x ~x, ] x x x x
I.- x x x
x x x x x
X
~ x x x x x X X
X x
x t.--
x x x x x x x x x X X X X
x x
x xX x (2~ff'~ x x x x
x zttl x
x ~ x x x x x x x x
x x
x
x x x x x x x x x x x x x
x x 1.1.17
x x x x x x x Cln~" x x x x x x x
~gw
Z~-- x x x Xx x
x x
.<Lkl x
X
w~
produce cross-sections and contour plots of sent for analysis with a false line number in
elevation and horizon thicknesses. These plots order to disguise their origin.
provided the first steps towards the production The drill hole grid in the research area was
of a geological model for the site. Statistical and designed in order to obtain the minimum
geostatistical analyses were then carried out on requirement of at least 30 sample pairs in each
thickness values for gravel and overburden and of the four principal directions up to a lag value
the stripping ratio. Gradings values were of 7 with a 25 m lag spacing north-south and
produced according to the specifications laid east-west and a 36 m spacing in the N E - S W and
out in BS:812 and geostatistical analysis was N W - S E directions. This was regarded as the
then carried out in an attempt to correlate the minimum required to obtain an accurate model
results with those produced by geological for the semi-variograms.
modelling of the site.
Precision of drilling and sampling
Drilling and sampling methods
Use of the same drilling method and up to six
Drilling was carried out using shell and auger drilling crews allowed a measure of continuity to
cable percussion rigs with an 8inch (200mm) the data. There are, however, serious problems
bailer. A 30 kg sample was bagged for every 1 m, with the shell and auger method of drilling as
or part thereof, drilled in mineral. In the detailed by Barrett (1989), who states that loss of
research area 30 boreholes were redrilled fines (< 75 #m) can be considerable during the
approximately 1 m from the original site to drilling process. The shell and auger method
provide data on the precision of the drilling normally relies on the presence of water within
and sampling methods employed. the hole and the gravel is fluidized by the
The 1 m samples from each hole were stored upward motion of the bailer within the water
on site, logged and a hole composite was column. The fluidized sample is then collected
produced for the mineral horizon. If a layer of during the downward stroke. However, to
clay interburden appeared in the gravel or other prevent the bailer filling with water there are
clear evidence of a natural break, then this was several drainage holes which allow the water to
reflected in the compositing of samples from the escape; this water invariably carries with it a
hole. In these cases it was necessary to produce proportion of the finer material from the gravel.
more than one composite. Thirty complete sets Additional losses of fines also occur when they
of 1 m samples were split before compositing and are driven into the side walls and base of the hole
two duplicate composites produced for each of by the surging action of the bailer. When the
these holes. Thirty hole composites were also sample is brought to the surface it is decanted
split to form duplicate samples. All these onto a sampling board (commonly a sheet of
additional composite samples were bagged and corrugated iron) which allows excess water to
RESOURCE EVALUATION IN SAND & GRAVEL INDUSTRY 193
140 • DRILLING
~ 120 [] SAMPLING
Z
O 100 [] ANALYTICAL
(J
IJLI
~:
Q.
80
60
o ~ u~
o o "-: ,- ~. ©
V c~ o ~ o oo
c; o
SIEVE SIZE ( m m ) P- u~
Fig. 2. Histogram of precision values from the three duplicate sets for sieve sizes between 75 mm and 76 #m.
Duplicate population 1 2 3 4 5 6 7
Redrills v/ v/ x x V V V
Sample duplicates x/ v/ "v/ x V V x
Composite duplicates x/ x/ x V V d x
drain off, again carrying with it fine material. allow a direct comparison. The results showed
During this process large cobbles tend to roll off that, on average, there was a loss of 75% of the
the sample pile into the field. Contamination fines ( < 7 5 # m ) using standard wet drilling
from the previous sample can occur if care is not techniques. This figure may also underestimate
taken in cleaning the sampling board. Settling of the total loss due to the possible loss of fines
the sample occurs within the sample bags which during the dry drilling itself. The thick over-
can result in sample bias unless thorough mixing burden (average 9 m) prevented the digging of
is undertaken before production of composites. trial pits on the site to assess directly the in situ
Drainage from burst sample bags also results in fines content. Only seven boreholes were
further loss of fine material from the sample. redrilled dry so the average values are not
To assess the loss of material during the statistically valid; however, they gave consis-
drilling process, dry holes were drilled at seven tently higher values for the content of silt and
locations adjacent to previously drilled holes to fines in all the dry holes as was expected.
194 J. ARTHUR & A. E. ANNELS
0
LOCAL VARIATION OVER
SHORT DISTANCES V~THIN
0
SAMPLE BAGGED FOR
EVERY lrn DRILLED
O
SAMPLE SPLITTING TO
FORM DUPLICATE
THE GRAVEL SHEET IN MINERAL SAMPLES FOR 30 BOREHOLES
j_.~.m ~1~
COMPOSITE SPLITTING
TO FORM DUPLICATE
COMPOSITES FOR
30 BOREHOLES
1
O
PRODUCTION OF
BOREHOLE COMPOSITES
+
VARIATION DURING THE SIZE GRADING
i~_',-/~ ~= "" / PROCESS
Fig. 3. Flow chart highlighting areas in the drilling and sampling process where errors occur.
Inaccuracies in the values for the fine-grained site duplicates. The individual errors are sum-
fractions will have a knock on effect for values marized below:
of the coarser grain size fractions. Values are
measured as a percentage passing a certain sieve (1) sample collection at the rig (including
size so if a fine size fraction is recorded as 2% drilling);
passing but has suffered a 75% loss, the (2) compositing of original samples;
remaining 6% will have to be assigned to the (3) reduction of original samples to produce
coarser fractions. If several size fractions are duplicates;
being undersampled the effect on the coarser (4) reduction of composites to produce
fractions will be even more pronounced. duplicates;
The precision and associated errors were (5) reduction of composites at analytical
calculated using the equations presented by laboratories;
Garrett (1969) (Fig. 2). The flow diagram (Fig. (6) analytical variation;
3) shows that seven potential sources of error are (7) local variation between redrill sites (at 1 m
possible in the sampling procedure while Table 1 spacing).
shows the combination of individual errors
likely within each of the three sets of duplicate The precision is generally good for samples
samples. The duplicates studied represented from the 75mm fraction down to the 600#m
redrills, original sample duplicates and c o m p o - fraction with a value below 10%. However, as
RESOURCE EVALUATION IN SAND & GRAVEL INDUSTRY 195
ELEVATION (masl) OF U P P E R G R A V E L S U R F A C E
1 >44
I ~ 42-44
40-42
38-40
36-38
34-36
32-34
<32
ELEVATION (masl) B A S E M E N T S U R F A C E
I >38
36-38
34-36
32-34
30-32
28-30
i I <28
N
1 km
Fig. 4. Topographic plots showing features on the upper surfaces of the basement and gravel sheet.
the grain size diminishes from 600 #m to 75 #m basement and gravel surface topography. Bore-
the precision deteriorates dramatically to around hole sections were then produced using SUR-
100%. The precision of thickness values from PAC.
the redrills is good at 8.53%; however, this gives The upper surface of the London Clay shows
no indication of the true magnitude of the errors a marked change in elevation in the centre of the
(accuracy). The poor precision results for the drilled area. The average elevation changes from
fine fraction samples confirm the presence of 35.2 m in the west to 30.6 m in the east (a.m.s.l.).
errors in the size grading data due to problems A marked break in slope forms a distinctive
induced by sampling procedures. feature running N N W across the centre of the
area (Fig. 4) which may indicate the presence of
Geological analysis a palaeo-river terrace or it may even be a natural
settling feature due to the presence of a buried
All boreholes were completed in the London channel in the underlying Chalk (McGregor &
Clay basement, and the collars were surveyed to Green 1983).
provide an accurate elevation for each of the The orientation of linear depressions in the
intersected horizons. Two-dimensional contour east of the area lie in a roughly N N E to N E
plots of gravel and overburden thickness were direction corresponding with palaeocurrent
produced along with 3D plots showing the directions measured from foresets in surround-
196 J. ARTHUR & A. E. ANNELS
AVERAGE DIP DIRFCTICJN upper surface of the gravel shows only a slight
drop in elevation from west to east and is
generally flat lying with few, obvious, topo-
graphic anomalies. The exception to this is in the
west where a linear zone of thinner gravel
f occurs. The thinning of the gravel sheet
coincides with a thickening of the overlying
boulder clay and is unrelated to features of the
basement topography. The zone is narrow in the
west (50-100m wide), but widens towards the
east to in excess of 500 m. In the 3D surface plots
this zone has been identified as an erosional
scour. In places the gravel sheet has been
completely removed and the underlying base-
ment surface also shows evidence of scouring
and erosion.
The erosive channel probably formed between
the closing stages of the deposition of the
Kesgrave Gravel sheet and the onset of the
Anglian Glaciation. Reworking of the upper
Fig. 5. Pole concentrations from dip directions layers of the Kesgrave Gravels has been
measured on foresets within the Kesgrave gravel sheet. recognized elsewhere and the deposits formed
have been classified as the Barham Sands and
Gravels. These deposits only occur locally and
ing workings (Fig. 5) and from published are not laterally extensive, generally occupying
literature on the Kesgrave Gravels (Rose et al. hollows in the surface of the Kesgrave Gravels
1976; Rose & Allen 1977). and occasionally interbedded with the lower
The greatest thickness of gravel occurs in the layers of the Anglian Boulder Clays (Rose &
east of the area and coincides with a depression Allen 1977; Hey 1980). It is possible that the
in the basement topography. However, the scour channel seen here is the source for some of
5O
40
30
20
10
Fig. 6. Histogram showing mean concentrations for 20 lithological groups present within the gravel (20-5 mm)
and sand (5 mm-75 #m) fractions.
RESOURCE EVALUATION IN SAND & GRAVEL INDUSTRY 197
the reworked gravels located in the overlying and extension variance calculations can all
boulder clay, the lower layers of which contain a indicate the magnitude of the influence of the
high proportion of gravel and sand indicating surrounding sample points on the final block
some reworking immediately prior to the estimate.
deposition of the glacial tills. In the east, the The use of geostatistics allowed the spatial
gravel sheet also shows signs of erosion over a characteristics of the deposit to be taken into
wide, NE-trending zone (Fig. 4) in which a thin consideration during the estimation excercise.
gravel sheet of possibly Barham age occurs By the very nature of a fluvial gravel deposit, a
intermixed with the boulder clay. Petrographic high degree of variability in thickness would be
analysis was carried out on all composites from expected throughout the site. In any fluvial
the 25m spacing drill grid, and two separate system there are different zones corresponding
datasets constructed for the gravel fraction (20- to erosion, deposition, areas of slack water,
5 mm) and sand fraction (5 mm-75 #m). Twenty abandoned meanders, flood plain deposits, bars,
lithological groups were identified and the mean channels, etc. (Reading 1986; Selley 1976). In all
% contents are summarized in Fig. 6. Litholo- cases, where the semi-variograms could be
gies dominant in the gravel fraction include flint, modelled, a spherical model was used.
massive quartz (quartzite) and sandstone. In the It was decided to approach the resource
sand fraction the dominant mineralogies are evaluation from two directions. The first was
quartz, metaquartzite and flint (Reading Uni- the calculation of the in situ tonnage for the
versity 1992). gravel sheet. The quality of the gravel is defined
The high flint content of the mineral reflects by the size grading analysis and, to a lesser
the path of the drainage system from the west extent, by the petrographic analysis of the
where it would have been draining off the material. This data was treated separately at
Cretaceous chalk escarpments around the the initial stage of the evaluation.
London Basin. Igneous and metamorphic clasts Part of the geostatistical evaluation involved
occur in both size fractions. Hey & Brenchley the production of a structural model for the data
(1977) conclude that the most likely source (directional semi-variograms) which, it was
for this material is the Ordovician volcanic seq- hoped, would identify geological trends and so
uences of North Wales. Glacial drainage systems allow verification of the earlier interpretation of
may have transported this material either incor- the borehole sections. Most of the work was
porated into an ice sheet or as a bedload in carried out using the mining software package
glacial meltwater drainage systems. However, SURPAC, allowing the production of borehole
clasts of similar rock types are found in con- cross-sections, contour plots of various hori-
glomerates of the Sherwood Sandstone Group zons, extraction of data from specific zones of
(formerly known as Bunter Pebble Beds) in the the site and the production of statistics and semi-
East Midlands and the erosion of these seq- variogram models.
uences may be the direct source of the igneous
material present in the Kesgrave Gravels. Thickness data
5oI
45
40
35
3O
2S
2O
15
10
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
THICKNESSim)
Fig. 7. Histogram of gravel thickness values from all boreholes drilled in the research area.
7o -
I
8o +
~
40
30
9 10 11 12 13 14 15 16 17 18 19 20
THICKNESS (rn)
Fig. 8. Histogram of gravel thickness values from all boreholes lying on a 100 m spacing.
shows a greater range in thickness values with a an average thickness of 5.42m from 68 bore-
maximum of over 14m occurring in the north holes and the southern sheet had a thickness of
east of the site; this fact is reflected by the higher 5.95m from 80 boreholes. These compare with
data variance. an average thickness for the whole of the
research area of 5.09 m.
Research area
Geostatistical analysis. The effect of sub-divid-
The deposit was originally split into various ing the research area was to reduce the data
zones defined on the basis of thickness and the variance for each of the resultant populations
borehole data in these zones was analysed as and this in turn had a marked effect on the semi-
individual populations. In the research area, variograms produced for each of the datasets.
however, it was decided that, as the gravel sheet Omni-directional semi-variograms were first
thickness was fairly uniform, only the erosive produced before the calculation of directional
channel should be treated separately. The limits semi-variograms in each of the four principal
of the eroded zone were set on a statistical basis directions. Annels (1991) states that semi-
at the 4.3m contour (Fig. 9). The average variogram values should not be regarded as
thickness for the 48 boreholes in this central accurate beyond a lag distance equivalent to half
zone was 2.04m. The northern gravel sheet had the total length or width of the sampled area; in
RESOURCE EVALUATION IN SAND & GRAVEL INDUSTRY 199
x ×
c,
Fig. 9. Contour values for gravel thickness in the research area. Shaded area corresponds to eroded zone with
thickness values of less than 4.3 m.
this case a maximum lag distance of 300m and 135 °, which cut across the scour channels at
would be indicated. high angles, exhibited a shorter range of around
The semi-variogram for the total data from 140m. The variance of these plots was higher
the research area shows a drop in the sill beyond than that for the omni-directional semi-vario-
a distance of about 250 m but this is not evident gram and they exhibited a high degree of scatter
in any of the other plots from the sub- around the sill value reflecting the presence of
populations. This may be the result of 'hole hole-effect in these directions (Fig. 10).
effect' which is described by H o h n (1988) as 'an There were not enough data points within the
oscillation of the semi-variogram that reflects eroded channel to produce accurate directional
pseudoperiodicity of the variable'. In the case of semi-variograms. Also, the shape of the north-
the research area, this could be a reflection of the erly and southerly portions of the research area,
scour channel which passes through its centre. only allowed semi-variograms in the 045 °
The semi-variogram, based on data with values direction to be accurately defined.
less than 4.3 m excluded, has no apparent hole Cross-validation of the semi-variogram model
effect and the data variance is also much produced from the total dataset produced
reduced. acceptable results with a kriging variance of
The directional semi-variograms were pro- 2.67 (data mean = 4.99m), all the data points
duced for the total dataset in an attempt to lying in the zone of erosion were overestimated
define any structural features within the gravel producing a slight positive skew to the error
sheet. The two plots for 045 ° and 090 °, which histogram. However, when the semi-variogram
run in the general direction of the channel, model for the data from which the eroded zone
exhibited the longest ranges at 170m and 210m samples had been extracted was cross-validated
respectively. These two plots also had a generally the kriging variance was found to have dropped
lower variance than the omni-directional semi- to 0.66 (data mean = 5.98m) giving a much
variogram. The plots for the directions of 000 ° more accurate estimation for the data.
200 J. ARTHUR & A. E. ANNELS
r- 6.00
1 of the two. The maximum thickness in the west
is l l . 9 m compared to 14.65m in the east. The
< o
o ¢ o ° data variance is also lower than that in the east
o
< J but in both cases, when the data from the eroded
(D 4.00 / °
zone (4.3m) is removed, the data variance
decreases. This has the effect of producing a
°
i strong positive skew in the eastern dataset unless
200 1
i the high values are also deleted. Neither of the
resultant data populations exhibited a log-
normal distribution and it was decided to carry
0.00
out the geostatistical study using untransformed
0.0o 100.00 2O~.O0
:~~ data.
LAG DISTANCE (m)
x \ \ x~'~'co ~ GRAVELTHICKNESS<4m
Fig. 11. Contour values for gravel thickness across the total area showing 100 m spaced boreholes. Shaded zones
correspond to areas with thickness values below 4 m and greater than 8 m.
RESOURCE EVALUATION IN SAND & GRAVEL INDUSTRY 201
Table 2. Summary of statistical and geostatistical properties of gravel thickness data for each of the subareas
identified on the basis of geological interpretation of the borehole data (see Fig. 11).
Data Population Mean Variance Skewness Kurtosis Nugget Co- Range (al) Nugget
(no. of samples) variance variance effect
(C0) (C£)
Total dataset 5.98 7.57 --0.15 3.37 3.2 4.0 480 0.8
(386)
Total dataset 6.73 4.75 0.366 4.38 1.8 1.6 250 1.125
> 4.3 m (323)
Western zone 6.04 6.67 - 0.42 3.14 1.8 4.0 280 0.45
(263)
Eastern zone 5.85 9.54 0.227 3.49 3.0 7.0 400 0.43
(123)
Western zone 6.63 4.25 --0.06 3.51 1.0 1.8 230 0.55
> 4.3 m (230)
Eastern zone 7.07 5.43 1.284 4.82 Pure nugget effect
>4.3m (91)
Eastern zone 6.37 1.77 -0.24 3.06 Pure nugget effect
>4.3 < 8 m (8)
GRAVEL THICKNESS SEMI-VARIOGRAM The semi-variogram for the western area, with
10.00 100m SPACED DATA
the data from the eroded zone removed, were
a l m o s t isotropic. The omni-directional semi-
8.00 ] o variogram had a range of 230m whilst direc-
~ ~
~.
~ .
•
. . .
o
.
o o
¢ -
tional ranges varied from 210m to 220m. Sill
/
/ ¢
¢ values, in each case, were relatively constant and
600 //
!/ nugget effect values showed a limited range from
= 0.35 to 0.44.
Cross-validation of the parameters deter-
4.gO
1 //" . mined for both data populations from the
western area indicated that they were satisfac-
tory in that their mean error values are close to
2.001 zero and the mean kriging variances are similar
to the data variances (Fig. 13). The conclusion is
that, although the presence of the eroded zone is
0.00 i i having an effect on the quality of the semi-
0.00 400.00 800.00 1200.00 1600.00 2000.00•
variograms, those produced from the uncut data
LAG DISTANCE (m) produce good cross-validation results. The
reason for this is that the number of data
Fig. 12. 100m spaced borehole semi-variograms for points falling within the eroded zone is relatively
gravel thickness values.
small compared to the total data population.
However, it should be noted that all boreholes
The western area contained significantly more with a gravel thickness of zero were over-
data points and good directional semi-vario- estimated and in some cases were given values
grams could thus be produced (Fig. 12). Those in excess of 6 m. Ideally, eroded zones should be
produced from the uncut dataset had an average defined at an early stage in the evaluation and
nugget effect of ~ = 0.45, a nugget variance of treated separately but in this case there were
1.8 and an omni-directional range of a = 280 m. insufficient data points within the zone to allow
The directional semi-variogram for 135° exhib- estimation o f its geostatistical parameters.
ited the longest range at 380m while that for Extraction of this data p r o d u c e d u n i f o r m
045 ° exhibited a nested structure with ranges of variance values for the main body of the gravel
260 m and 380 m. sheet indicating its uniformity in the western
202 J. ARTHUR & A. E. ANNELS
~000 GRAVEL THICKNESS RESEARCH AREA 1600 GRAVEL THICKNESS 100m SPACED DATA
CROSS VALIDATION CROSS VALIDATION
800 ÷ +
÷ ÷ 12.00 1
~++ ++ +
+ . ÷
6.00 ÷ j ÷ * * , * * ÷÷÷+ ÷
÷ +÷ ÷'*~.÷*~,_,. + ÷ + ÷÷.m. +
+
÷ 800
. ÷,~ . , ÷ ¢
4 00 ÷ ¢ t~. ¢ "~'~++
+ + ++ <~
+ ~+ +
÷+ + + + ÷ ÷ L~r'~
÷÷ ÷ ÷+
200 +
÷ ÷
. ÷..% + v . :~ + - 3 "++ ". ;
1~. + +
+ CORRELATION COEFFICIENT = 0688 .11. CORRELATIONCOEFFICIENT = 0615
0.00 . _ _ 0.00 ~ ....... , :
000 200 400 600 800 1000 000 4.00 800 1200 1600
ACTUAL DATA VALUES ACTUAL DATA VALUES
Fig. 13. Cross-validation plots for gravel thickness omni-directional semi-variograms from the research area
boreholes and 100m spaced boreholes.
looq~
70
60
G
50-
INCOMPOSITED) i
40
20 ?
10 I
L
E
E E
,q
Fig. 14. Histograms for mean grading data from the research area, 100m area and the uncomposited raw data
values.
area. This again provides evidence for the best and all sieves met the requirements o f BS:410.
depositional origin of the thinning of the gravel A total of 529 samples were graded from 405
sheet along the central axis o f the area. boreholes, from both the research area and the
surrounding R M C exploration area. Once again
Size-grading data analysis two datasets were constructed corresponding to
the 187 boreholes sampled in the research area
Size-grading analysis o f the aggregate was and the 251 boreholes from the 100m spaced
carried out to British Standard BS:882:1983. grid over the whole site.
Sieve sizes corresponded to BS:812: part 1"1975 Fifteen individual size fractions were calcu-
RESOURCE EVALUATION IN SAND & GRAVEL INDUSTRY 203
120.80 i
~' • * • o o
o •
• •
t O
O O
80.00 __
O
O
O
O
80.00 - O O
< O O
i
(.9 4o.80
40.00 ~
Fig. 15. Omni-directional semi-variograms for 10mm size fraction (% passing) from the 25m spaced borehole
datasets.
was close to zero, and the error histograms geological nature of the deposit although
showed a normal distribution. However, a large the geological cause has not yet been
number of data points are either under- or identified.
overestimated resulting in a high variance of the (5) C o n t o u r plots of h o r i z o n thickness,
error distribution. Regression analysis also palaeotopography and size grading dis-
reveals a very poor correlation between mea- t r i b u t i o n indicate possible zones of
sured values and kriged estimates. channel flow, erosion, deposition and
Cross-validation was carried out on data from secondary reworking.
several subsets including the western area (6) Petrographic studies show a high percen-
defined earlier and the northern part of the tage of far-travelled material including
research area, north of the zone of erosion. In volcanic rocks indicating the probable
all cases, the cross-validation continued to give influence of glacial action in the produc-
poor results with little or no correlation between tion of the bedload for the channel system.
estimates and real values. (7) Better geological control is needed before
further geostatistical work can be carried
100,00
lOmm FRACTION - CROSS VALIDATION out on the size grading data. Subdivision
of the deposit into both lateral and
vertical zones should be carried out to
allow production of vertical semi-vario-
grams.
~_1 ÷+ ¢.÷ 4. 4. 4. (8) Thickness data can be modelled effectively
4. ÷j.÷4. ÷ ~ 4. + using geostatistical m e t h o d s and the
• 4. .4. . 4 . ~ ; . ÷ + 4.4. quality of the depth presentation data
÷,e g ts.4.~ ~.t 4. * ÷ * "
÷ -..*..5,~'~,.7. 4. produced by the shell and auger rig is
¢9 60.00 4 + 4. .~.~ ~*4..it"
considered acceptable. However, grading
• ÷: 4. 4.
÷ data is very inaccurate due to the sampling
methods employed by this type of drilling.
4 C O R R E L A R O N C O E F F I C I E N T = 0.356 Even at the close spacing of 25m, the
~'~ variation in data quality is too high to be
. . . . . I
~.~ ~ ~ lOO.OO able to predict values for specific blocks of
ACTUAL DATA VALUES
ground.
Fig. 16. Cross-validation correlation from 10mm size Thanks are due to I. Williams and R. Fox at RMC
fraction semi-variograms in the research area (25 m (UK) Ltd for their continued support of this project; to
spacing). RMC (UK) Ltd and NERC for the financial backing;
the staff at M & B Geotechnical Laboratories for
carrying out the size grading analysis; B. Blackwell at
Conclusions the Building Research Establishment and the staff of
the Sedimentological Research Unit at Reading
(1) The coarse fraction (20-5 mm) exhibits a University for the petrographic work; and finally to
normal distribution while the fine fraction the drillers without whom none of this work would
(5mm-75#m) exhibits a log-normal dis- have been possible.
tribution.
(2) 100 m spaced data semi-variograms show
no structure indicating that boreholes are References
too far apart to produce reliable estimates ANNELS, A. E. 1991. Mineral Deposit Evaluation: A
of the areas between them. Practical Approach. Chapman & Hall.
(3) Cross-validation of 25 m data semi-vario- BARRETT, W. L. 1989. Detailed site investigation
gram models gave very poor correlation procedures for aggregate resources. Bulletin o f
results between measured data values and the Institution o f Mining and Metallurgy, Miner-
kriged estimates. als Industry International, 988, 21-25.
(4) The use of a poor sampling method is BRITISH STANDARDS INSTITUTIONBS 410. Specifica-
probably causing 'geostatistical noise' tions for test sieves.
obscuring the true nature of the semi- -- BS 812:1975. Methods for sampling and testing
o f mineral aggregates, sand and fillers.
variogram structures for the size grading
- - BS 882:1983. Aggregates from natural sources for
data. There is also a probable breakdown concrete.
in stationarity within the deposit causing GARREYr, R. G. 1969. The Determination of sampling
excessive drift in the semi-variogram. This and analytical errors in exploration geochemistry.
breakdown is caused by the complex Economic Geology, 64, 568-569.
RESOURCE EVALUATION IN SAND & GRAVEL INDUSTRY 205
HEY, R. W. 1980. Equivalents of the Westland Green READING UNIVERSITY 1992. Petrographic examination
Gravels in Essex and East Anglia. Proceedings of of sand and gravel samples. Unpublished report,
the Geologists" Association, 91, 279-290. Postgraduate Research Institute for Sedimentol-
-- & BRENCHLEY, P. J. 1977. Volcanic pebbles from ogy, University of Reading.
Pleistocene gravels in Norfolk and Essex. Geolo- ROSE, J. & ALLEN, P. 1977. Middle Pleistocene
gical Magazine, 114, 219-225. stratigraphy in south-east Suffolk. Journal of the
HOHN, M. E. 1988. Geostatistics and Petroleum Geological Society, London, 133, 83-102.
Geology. Van Nostrand Rheinhold. & HEY, R. W. 1976. Middle Pleistocene
MCGREGOR, D. M. & GREEN, C. P. 1983. Post- stratigraphy in southern East Anglia. Nature, 263,
depositional modification of Pleistocene terraces 492-494.
of the River Thames. Boreas, 12, 23-33. SELLEY, R. C. 1976. An introduction to Sedimentol-
READING, H. G. 1986. Sedimentary environments and ogy. Academic Press.
facies. BlackweU Scientific Press.
Computer modelling of dewatering a major open pit mine: case study
from Nevada, USA
R. I. C A M E R O N & H. M I D D L E M I S
Water Management Consultants Ltd, 2/3 Wyle Cop, Shrewsbury SY1 1UT, UK
Abstract: Operations began in 1985 at Amax Gold Inc.'s Sleeper Mine in Nevada,
and the major open pit has been one of the largest North American gold producers.
The orebody in Tertiary volcanic rocks is overlain mainly by the Desert Valley basin
fill gravels. Natural groundwater levels at the mine are around 10-15m below
surface, and dewatering has been a major activity since initial overburden stripping.
With a final projected mine depth of 215 m, a properly designed and cost-effective
dewatering scheme, fully integrated with the mine plan, was required. Field
investigation and numerical computer modelling proceeded in parallel, the feedback
between the two activities being essential to the optimization of the dewatering
scheme.
The basis of effective dewatering has been the interception of groundwater in the
overburden before it can reach the pit. This paper describes the groundwater model,
based on the USGS MODFLOWcode, which was specifically designed to develop a
wellfield design for optimum dewatering. The model enabled the determination of the
most cost-effective wellfield configuration, pumping rate and distance from the pit.
Subsequent field observations showed that real drawdowns were within 5% of those
predicted.
The interceptor model has also been used to investigate the dewatering rate and
cost implications of expanding the pit in the direction of the wellfield; and the
implications of power failure at the wellfield for determination of standby generating
capacity.
From Whateley, M. K. G. & Harvey, P. K. (eds), 1994, Mineral Resource Evaluation 11." 207
Methods and Case Histories, Geological Society Special Publication No. 79, 207-217.
208 R.I. CAMERON & H. MIDDLEMIS
WNW ESE
Elevation ~ '~'.'r"
m ~ ......... ~ ............................ ~ - - . ~ - ~ - ~
120o ~!:::t ~:~
110 0- ...... "' ::. :::~..~.:::,. . . . . . . . . =.:.-.:-:"-:: ;~?.'.':':.;'";.'-.' __~.,._.,. !i~
lO0O ~ ~ i i : , .:- c-:-:,.-,. . . . . . . . . . ,. . . . . . : - : - _ . - . - : :
900. ' ~ ~..~.~.":'::~" - ] ~,:): : : ~::::-:" : : ' . . ~ : : : ::: " ::::: ~:: , ::; ~
17; i ~ - .-z,~-rl:' ;? - ;., ~ ,;~-.'.: .-,. . :. ~ ~;..:,,
, : ::-~!~' . . 7 . - - : - : . . -. . . :,. ::. ~-.~. . . . . . . -. - - - :K- '
...,-.. ~ ~.~_ .~.,~r~,, .,,:.,:., .., ..:,....: ~,. • ,...:....~,~ . ..... ..... , ..., . .... ~,
800 . . . . •.~.. . . , . .'~", ;:. ." : " . . . ... ... . . . .=~ ~ ~ ", .~. . . - , .. . .r ... ... ... :.. ; , , . : , - ", : . . , ...........
.,, ~ ' ~ ...... :" ....... . ,:, . . I " . . ~ , , . " .:. . ~ . , :~ , ; ~~.: ~. ' . : - i . . . ... . . . : ". ....
. - .- . . ".,. .. . .. . .. . .. . .-. . " . .....
.. ~\ \ \ \
7 0 0 - .........
, ' " ' . ' . ................
¢';.; , , , . ';'., .' . :.:. . ..'. . : ~, "~ . :'.~: ;.:;":'-, *. [" .; - : . . . :".". .- : ' " " . ; ' " ' ' . - ' , ' ......
" : ~ : ..
" ". . . . .:.: .i . - . - :. :. . . . . . . . .~. ". " :~
, . , ~ o . . . . . .d. . . . . .~~ ~\~
H o r i z o n t a l Scale L, : : ', V o l c a n i c b e d r o c k (Tertiary) ~ Basin fill material, ~ L...... ine sil . . . . d silty c l a y s
predominantly gravels, F :.
V e r t i c a l E x a g g e r a t i o n co.8:1 Metasedimentry b e d r o c k (-friassic) s a n d y gravels and i. : Intermediate sand aquifer
c e m e n t e d s a n d s and ~ F l u v i o - l a c u s t r i n e sands, c l a y e y
F----F M a j o r N N E - S S W basin vw~ Possible air fall t u f f layer gravels ~ s a n d s and s a n d y g r a v e l s
and r a n g e fault
Valley basin to thicknesses estimated at 1800- field were continuously fed back to the ground-
2500 m. water model, and the modelling results were in
Natural groundwater levels are around 10- turn used to guide the field programme. In this
15m below ground level in the vicinity of way, dewatering was optimized in the context of
Sleeper, and dewatering became a major activ- a well-understood hydrogeological environment
ity from the early days of overburden stripping and a calibrated, robust model.
and has continued since then. Initially this was The basis of the models used was the United
carried out on an engineering basis, employing States Geological Survey (USGS) three-dimen-
sump pumps and peripheral wells in the volcanic sional, finite-difference groundwater flow code
bedrock, but with a planned open pit depth of MODFLOW (McDonald & Harbaugh 1988). This
around 215m it was clear that a properly is an industry standard of its type, well
designed and optimized dewatering scheme was documented and quality-assured. Moreover,
required which was integrated with the mine the USGS themselves are developing a regional
plan, and which enabled dry workings to be model of Desert Valley using MODFLOW, SO
maintained at minimum pumping rate and comparison between results is facilitated. The
minimum cost. specific conditions of Sleeper and the require-
The dewatering scheme was developed in a ments of simulating dewatering and recovery
parallel programme of field investigation and necessitated some modifications to the basic
numerical computer modelling. The field pro- model code, which were written and tested by
gramme encompassed structural geology sur- Water Management Consultants.
veys, geophysics, hydrochemistry and the Two basic models have been developed. The
development of a comprehensive groundwater first, and the main subject of this paper, is a
monitoring network, in addition to an ongoing model designed specifically to develop an
programme of pilot well and production well optimum dewatering scheme, concentrating on
drilling to provide the basis for dewatering and the hydrogeological regime in the vicinity of the
to keep ahead of the mine plan at all stages. mine itself. This is referred to as the interceptor
Details of the field work are beyond the scope of model, because the basis of effective dewatering
this paper, but aspects have previously been has been the use of wells in the overburden to
reported (Beale & Tyler 1990). Results from the intercept groundwater before it can percolate
DEWATERING AN OPEN PIT MINE 209
Range Front
Model Column 18 20 25
9000
8500
Pit 10
15
==
>-
=_
20
8000 e-
• • • • • O • •
25 ¢0
m-
7500
30
.c_
0
n-
E
E i
=o Model grid in vicinity of pit
'4-- 35
i ROW 1 and Column 33 define
boundary conditions only /
=nd =fo .or =how,? . |
i
into the bedrock and reach the pit. Two further Interceptor model
developments of the interceptor model are also
described, the first investigating the additional The original objectives of the interceptor well
dewatering rates and costs of increasing the size modelling were:
of the pit; and the second investigating the
implications of a loss of power supply resulting • to investigate the potential cost savings to
in the dewatering pumps switching out. be achieved by using interceptor wells in the
The second model is a regional model of long term mine dewatering scheme;
Desert Valley, which seeks to place the Sleeper • to determine the optimum and most
Mine dewatering in the overall context of the economic wellfield configuration for the
valley hydrogeological system and the other mine dewatering scheme, including dis-
demands which are placed upon it. This model tances from the pit and well spacings;
is yet to be reported on fully, and is only • to allow initial predictions to be made of
introduced in this paper. pumping rates required from the gravels
210 R. I. CAMERON & H. MIDDLEMIS
1300--
Sleeper
1200- elevation
._g
1100-
Calibration period ~ Production (forecas
period
Stress Stress Stress
Period 1 Period 2 Period 3
1984 I I 1986 I I 1988 [ I 1990 I I 1992 I ] 1994 I I 1996 [ I 1998 I
Year
Fig. 4. Forecast and modelled pit floor elevations.
and from the bedrock over the life of the (Fig. 2). The lacustrine silts and intermediate
mine. sands have been disregarded, since they were
already virtually completely dewatered around
It was originally envisaged that the interceptor the north and west of the pit and no longer
well modelling would take the form of a formed a significant part of the active system.
conceptual investigation, using different simpli- The west edge of the pit represented the eastern
fied model configurations and a range of limit of the basal gravels. To reduce model size
wellfield designs. The optimum configuration and running time, the area covered by the model
derived from this model evaluation would then was assumed to have bilateral symmetry, about
be passed forward to the regional model for an axis running east-west through the Sleeper
further development. However, during initial pit. Consequently, the pit in the model is
development of the interceptor model, the bisected and lies across the southern boundary
practical requirements of the mine for results of the model.
which could be used to assist in siting the early Figure 3 shows the rectilinear finite difference
wells meant that the model had to be modified model grid in the vicinity of the mine. This is the
away from the 'conceptual', developing consid- final version of what was a lengthy evolutionary
erably in the direction of the regional model. process. The model grid ultimately comprised
This came about as a natural process resulting 33 columns and 47 rows, with cells ranging in
from the continuing feedback and the acquisi- size from 6 1 0 0 m x 1500m approximately on
tion of new data from the mine hydrology field the outer part of the model domain where
programme. As a result, the conclusions of the high resolution was not required, down to
interceptor well modelling p r o g r a m m e are 61 m x 30 m on the western edge of the pit itself
consistent with known field conditions. Conse- where there was a need for considerable detail in
quently they have been of considerable practical defining the groundwater flow regime at the
value in terms of the interceptor well drilling eastern edge of the basal gravels adjacent to the
program. Moreover, the contribution of the pit wall. The model domain covered a total area
interceptor well model to the regional model of 2 3 . 5 k m x 9.1km, the long dimension being
calibration process will allow a high degree of effectively doubled when taking into account the
confidence to be placed on the function of the reflection boundary. The modelled pit dimen-
regional model as a management tool for the sions were 550m east-west and 1460m n o r t h -
remaining life of the mine. south, including the reflected image.
The model consists of two layers, an upper The model must incorporate specified bound-
high permeability layer representing the basal ary conditions to enable the solver to produce a
gravels, and a lower low permeability layer unique solution to the equations describing
representing the Tertiary volcanic bedrock groundwater flow in the defined model area.
DEWATERING AN OPEN PIT MINE 211
1500--
1000
Total
500 -
L_ Interceptor wells
B a s e c a s e peripheral w e l l s
(base case does n o t a d e q u a t e l y
dewater north western corner
of gravels)
_
i . Peripheral wells
t........~, j . I j
J
0
11986I ] ! I ] 1991 I 1 i I q 1996' I I
'
[ I
!2001
I
Year
Calibration period ~ Production (forecast)
pedod
The axis of symmetry bisecting the pit east-west Aquifer parameters for the modelling were
is a no-flow (barrier) boundary which enables based on results from the hydrology field
the northern (real) half of the model to reflect an programme, and were intended to be standard-
identical southern (virtual) half. Streamlines in ized as far as possible. This made it much easier
the vicinity of this boundary run parallel to for the interceptor model to fulfil its principal
it. The eastern (Range Front) boundary is also function as a conceptual investigation tool, as
no-flow since it is known that the gravels are opposed to attempting to incorporate all the
absent east of the pit and only limited recharge aquifer geometry and parameter detail that was
occurs there. The northern and western bound- known. Had this latter approach been adopted,
aries were initially both specified as free-floating calibration would have been much more difficult
heads, producing (in the model) inflows on and the robustness of the model (which made it
those boundaries dependent on the gradient so valuable as a guide to the field dewatering
and permeability conditions. In practice, these programme) would have been lost. Aquifer
flows are negligible at the model margins, parameters adopted were:
where gradients formed in response to stresses
(dewatering abstractions) at the pit are insignifi- bedrock transmissivity: 160 m 2 per day N - S
cant. In the final model version the northern 16 m 2 per day E - W
boundary was specified as fixed head to assist in bedrock storage coefficient: 0.0001
numerical stability; again, however, the draw- bedrock specific yield: 0.01
downs at the boundary were so slight that fixed gravels hydraulic conductivity: 20 m per day
head inflows were negligible. gravels specific yield: 0.1
In order to produce a series of groundwater
flow solutions over time, each model run The anisotropy in the bedrock transmissivity
comprises a number of stress periods. Within of 10:1 is a function of the structural fabric of
each stress period, abstraction conditions the aquifer.
(including wells and fixed head cells) remain Calibration of the model was achieved for the
constant. Different stress periods must be used if period up to 1989 by simulating peripheral well
abstraction conditions change, for example the drawdowns by means of fixed head cells around
production runs comprised three stress periods the pit (taking into account known well pumping
for the interval 1989-1999 to accommodate levels and efficiencies) and matching the out-
successive levels of the pit and their respective flows thus generated in the model with the
dewatering conditions (Fig. 4). known pumping rates. As part of this process,
212 R.I. CAMERON & H. MIDDLEMIS
1250--
Pit
/
face
1225--
.=,
® 1200--
~,, 12401n~terlc8gtmr°fW°emlalStPt°f Pit . ~ ~
the contribution of groundwater from the were developed for the simulated base case,
gravels into the bedrock in the vicinity of the incorporating capital and operating costs of the
pit was controlled by means of the vertical dewatering scheme for the 10 year mine life.
conductance term in the model between the two In practice, however, bedrock peripheral wells
layers, using the observed head differential (from alone would never be a sound solution because
piezometers situated in different horizons) as a of the need to dewater the gravels adjacent to the
basis for calibration. The modelled flows of pit wall to a safe level that would always keep
about 540 1 s-1 were acceptably close to the the face dry. This safety level is defined with
actual total peripheral well pumping rate at that reference to a critical point, which is the
time (Fig. 5). elevation of the gravels/bedrock interface at the
pit wall. The actual margin of safety used in the
WeHfield optimization interceptor model was 6 m vertically below a
critical point elevation of 1222m. This, there-
To provide a basis for cost comparison and fore, represented the target elevation for heads in
optimization between the use of peripheral wells the gravels for the production runs of the model,
in the bedrock only, and a combination of to be achieved by 1991 when saturated gravels
peripheral wells and a new interceptor wellfield would, without interceptor wells, be exposed in
in the gravels, it was necessary to use the model the high wall. The critical point and safety level
to extend simulated dewatering from bedrock are shown diagrammatically on Fig. 6.
peripheral wells beyond 1989, using the forecast Having established a satisfactory base case,
pit floor levels shown in Fig. 4. The simulated successfully calibrated to actual pumping rates
pumping rates for this 'base case' are shown on and observed water levels, a matrix of produc-
the dashed line in Fig 5, although it is important tion runs was undertaken using standardized
to note that the base case does not achieve wellfield configurations. For cost benefit analy-
complete dewatering of the gravels in the sis, well pumping rates were determined by
northwestern corner of the pit. Although the fixing heads in the well cells, at a variety of
pit deepens, actual flow rates do not increase distances from the pit, at a point between the
significantly because the bedrock is becoming 1989 calibrated heads and the base of the
dewatered over a wide area and groundwaer gravels, leaving 50% of the gravels saturated.
gradients are becoming less steep towards the A saturated thickness must be left in the model
pumping wells. However, the cost of that cell to accommodate true aquifer drawdown at a
pumping does increase because of the greater well point (the model cell head is only an average
heads involved. Net present value (NPV) costs over the whole cell, and a correction must be
DEWATERING AN OPEN PIT MINE 213
applied based on pumping rate, aquifer perme- pit wall will not succeed in satisfactorily
ability and cell size to obtain total aquifer dewatering the gravels;
drawdown at a well); and well losses due to 2 total interceptor well pumping rates of less
non-Darcy (turbulent) flow in the vicinity of the than about 8 5 0 1 s - " will not produce
well. sufficient dewatering of the gravels;
The cost benefit calculations took account of 3 a wellfield in an arc, with outer wells (near
well siting and drilling, pumps and wellhead pit corners) at 120m distance and inner
connections, and power costs. They did not wells (near pit mid point) at 180m,
include the costs of survey work, general pumping between 880 and 9501 s-1 in
exploration drilling, pipelines or staff. For total, appears to be the optimum idealized
peripheral wells, it was assumed for cost benefit condition--this modelled pattern is shown
analysis purposes that all wells are constructed in Fig. 3, and its results in Fig. 6.
to a depth of 270 m, with eight exploration wells 4 total interceptor well pumping rates of over
for each production well of 501 s-1 long term 10401 s-1 result in too much interference in
capacity and 60% well efficiency. For intercep- the wellfield, with individual wells becoming
tor wells, capital costs for the cost benefit ineffective due to reduction in saturated
analysis assumed that two exploration wells are gravels thickness;
needed for each production well of 301 s-1 long 5 the total capital and operating cost of the
term capacity and 70% well efficiency. interceptor system realizes NPV savings of
It was evident from the cost analysis that wells at least US$3 million compared to base case
located at a distance of 370 m from the pit wall costs over the 10 years mine life; subsequent
represented roughly the breakeven point at field work indicates that savings exceed this
which the cost of an interceptor well scheme amount considerably.
becomes as expensive as the 'base case' (bedrock
peripheral wells only). The closer to the pit the Implementation and wellfield operation
interceptor wells are, the bigger the potential
savings over the base case situation, because of Once operational, results from the initial inter-
the reduced number of wells and reduced ceptor wells suggested that the early effects of
pumping rate required. However, there is also dewatering conformed generally to the predic-
a breakeven point near the pit at which tions made by the model. In particular, the
dewatering becomes ineffective due to insuffi- interaction between the interceptor wells and
cient saturated thickness and therefore low bedrock production wells had already reduced
specific capacity in the gravels. Clearly, a heads in the eastern extremities of the gravels to
balance situation must exist with an optimum below the required target elevation set for the
wellfield configuration which meets the dewater- end of 1990. By April 1990, water levels in some
ing requirements for the gravels, but at mini- areas of gravels within the pit had fallen by over
mum cost, and thereby providing maximum 9 m since the beginning of the year.
savings. At 120 m from the top of the pit wall in the
Having established the cost effectiveness model, the gravels/bedrock interface occurs at
threshold using standardized pumping based an elevation of 1202m. At 180m from the top of
on fixed heads in the model, it was no longer the pit wall in the model, the interface occurs at
necessary to continue to use such idealized an elevation of 1195m. Wells were generally
pumping characteristics of the wellfield optimi- sited in accordance both with the distances from
zation evaluation. Subsequent new production the pit wall suggested by the model, and the
runs therefore utilized well cells based on defined associated real gravels/bedrock interface eleva-
pumping rates (and therefore variable heads) tions. The first interceptor wells were targeted to
rather than fixed heads and varying pumping intersect bedrock between 1192 and 1198 m, to
rates. hit the base of an obvious cliff line in the buried
Pumping rates in the interceptor model were bedrock surface, which is semi-continuous
generally reduced after 1991 since the required immediately to the west of the mine and
dewatering had been achieved in the required possibly represents the line of a major N N E -
time. From 1991 onwards, merely sustaining the SSW 'range front direction' fault. The actual
water levels (as opposed to dewatering further) target elevations for interceptor well drilling will
allowed overall pumping rates to fall (Fig. 5). vary somewhat due to irregularities in the
It is not intended to detail the results of all the bedrock surface, irregularities in the elevation
optimization runs, but general conclusions are: of the critical point, and the presence of buried
canyon aquifers immediately to the west of the
1 wells at a distance closer than 120 m to the pit wall. Generally, the target elevation for
214 R.I. CAMERON & H. MIDDLEMIS
drilling needed to be somewhat lower towards average, the drawdown per unit pumping rate
the north end of the pit since the elevation of the of interceptor wells predicted by the model was
bedrock surface, and hence the elevation of the within 5% of observed values. Therefore,
critical point, generally falls to the north. The although the model lacks the absolute physical
presence of shallow fracture zones within the realism of the exact geometry of the gravels/
bedrock beneath the gravels has also been bedrock interface, confidence in the use of the
investigated as a possible means to site inter- model is enhanced by field verification.
ceptor wells closer to the pit, while at the same The water produced from the dewatering
time ensuring a sufficient saturated thickness is system is of good quality and is discharged to
available to sustain the required pumping rates a temporary wetland system created in the centre
for the life of the mine. of the valley, which has become a haven for
The initial interceptor wells have generally wildlife. State and Federal authorities are
been drilled at 180m spacing, with some involved in the wetland project, which is serving
variation depending on buried topography of as a beneficial use in environmental terms, as
the bedrock. This allows, if required, infilling well as forming a high recharge area to help
between the present wells to 90m or 60m minimize semi-regional drawdown effects.
spacing. The detailed wellfield configuration
and pumping regime depends on detailed Pit expansion
localized hydrogeological conditions, as well as
logistical considerations on site. Following the successful implementation of a
Interceptor wells drilled to date have generally dewatering scheme guided by the interceptor
penetrated layers of coarser gravels (especially at model, the outline feasibility of dewatering
the base of the gravels), with permeabilities up to operations in the event of the pit west wall
60-80 m per day, some three to four times higher being moved up to 150m to the west was
than the global gravels permeability of 20 m per investigated. This study provided for the
day used in the model. These localized high identification of locations for additional inter-
permeability zones mean in effect that some ceptor wells and the evaluation of the increased
interceptor wells have much higher specific pumping rates and costs required to dewater the
capacities. Interceptor wells have been com- expanded pit. Clearly, the maximum extension
pleted with specific capacities of over 0.0191 s- 1 of the westwall 'pushback' would completely
m -1 of saturated gravel, more than double the engulf most of the existing designed wellfield.
specific capacity of 0.0091 s l m -1 initially Assuming that dewatering to achieve the
assumed. Pumping rates from early interceptor pushback constraints would be required by late
wells were around 50-601 s-1, against 30-451 s-~, 1992, simulation of the additional dewatering
which was used in the model runs. was specified to take place in the third of the ten
At the higher specific capacities encountered, years of simulation, after two years of dewater-
actual pumping water levels will be higher than ing according to the previously specified scheme.
those predicted by the model. The specific Figure 7 shows how the interceptor wellfield
capacity of the wells will, however, require would have to be expanded to maintain dry
close monitoring and control over the life of working conditions in a pit expanded by
the mine if problems of low pumping water different amounts. The only pushback case
levels and declining yields in individual wells are which can make some use of the existing
to be avoided. If high specific capacities can be interceptor wells is the 30m case. Greater
maintained, however, it may eventually mean pushbacks require deeper dewatering, which
that fewer interceptor wells are required, with means that there will not be sufficient saturated
higher individual pumping rates. In any event, thickness of gravels under the existing inter-
the high specific capacities which are currently ceptor wells to permit the pumping rates
being achieved in the interceptor wells will allow required. With increasing pushback distance,
for considerable flexibility in the pumping an increase is required in both the pumping rate
regime. and number of interceptor wells to meet the
In November 1989, the total actual pumping dewatering goals. For 150 m pushback, the total
rate at Sleeper was 6001 s-~, of which 50% was pumping rate would increase to over 20001 s-1,
pumped from the basal gravels and 50% was nearly double the rate with the existing design,
pumped from the bedrock. Following imple- and with a corresponding cost implication.
mentation of the interceptor well scheme, 72%
of the pumping rate was being derived from the Security of power supply
basal gravels and 28% was being derived from
the bedrock, close to that predicted (Fig. 5). On An additional requirement of the interceptor
DEWATERING A N OPEN PIT MINE 215
Range Front
11 Model Column 15 20 30
2
9000
8500
Pit I 10
IIILI,5
20
8000
7500
6O
90
150
model was to investigate the impact on ground- very end of the power supply grid, so any power
water levels of a loss of power supply at the disruption is likely to affect operations at Sleeper
mine, to enable a decision to be made as to immediately. Information regarding the esti-
whether to maintain expensive standby genera- mated duration of the power outage should be
ting capacity on site, or bring in emergency available to mine management within a few
generators should the need arise. Sleeper is at the hours of the event. Consequently, the rewatering
216 R.I. CAMERON & H. MIDDLEMIS
1250--
Gravels head
7 days Start \
\
Pit I
- - Critical point
Top gravels .... -" "~,.~ . ~ _ _ - __.../7 \__ ................... -/--Safety level
•~ 1200-
/
Bedrock/gravels interface
~.," Bedrockh e ~ d ~ \
/
/ /
Start ~\
1150- z/~
I 41 1 l 77100 0 I l l0 2I
7300 7 O0 7500 7600 78 0 7900 8000 81 0 8 O0 8300 8400 8 O0
Metres from model origin
Fig. 8. Predicted recovery of aquifer heads at seven days after power outage.
of the gravels and bedrock aquifers in and power outage simulations at different times
around the Sleeper pit was simulated following through the life of the mine, as restarting the
one, three, and seven day periods of power dewatering scheme should achieve the safety
outage. level constraints by about three months after a
In order to evaluate the rate of rewatering power outage of seven days duration.
effectively, some modifications were made to the In the areas of very fractured and permeable
model, changing the aquifer type for the gravels bedrock (generally beneath the western side of
layer in certain rows from unconfined to semi- the pit), pumping rates are being set to dewater
confined/unconfined, to represent the effect of the bedrock to maintain heads at some 15-30 m
the overlying silts on the hydrogeological below the level of the pit floor. This allows for
regime. The piezometric heads in the dewatered drainage of the lower permeability bedrock
gravels begin to exceed the elevation of the top beneath the eastern side of the pit. It was
of the gravels about 300 m west of the pit, at the determined that the recovery of heads in the
feather edge of the Lahontan clays (Fig. 8). West bedrock beneath the pit over seven days of
of this point, the gravels are specified as semi- power loss is relatively insignificant at about
confined. The rewatering of the gravels near the 15 m, and is not sensitive to the actual stage in
pit from aquifer storage in the semi-confined the mine life that the power outage occurs.
gravels close to the pit produces higher heads
than if the gravels were represented as being Regional model
unconfined everywhere. Higher heads mean that
the gravels exposed in the pit wall are more A regional groundwater flow model has also
likely to rewater during the power outage, and been developed to quantify the impacts of the
the stability of the high wall may be at risk as a dewatering operation and mine closure activities
result. on the natural hydrologic system of Desert
Figure 8 shows predicted recovery in the Valley. Results from the model identified that
gravels aquifer after a pump shutdown of seven the regional impacts were limited to the close
days. Water levels have risen above the safety vicinity of the mine (Fig. 9).
level and are approaching the critical point.
There is therefore a risk of the gravels becoming Conclusions
saturated in the pit wall in places. This risk is
greater if zones of permeability greater than Dewatering at the Sleeper Mine in Nevada
20 m per day are widespread. became a major activity from the early days of
It is understood that the return frequency of overburden stripping of basin fill gravels and
long duration power outage events is very low. lacustrine deposits which are saturated from 10
This being so, there was no need to carry out to 15 m below surface. With the open pit gold
DEWATERING AN OPEN PIT MINE 217
KingsRiverValley
Pine Forest Valley (inflow boundary)
Jackson Mountains (outflow boundary} ~ /
(high recharge to gravels)~ J
_ 1275.~
1250~I
12o0- I ~0 80
o2 60
L. A . C R U M P & R. DONNELLY
A R C L t d ( C e n t r a l ) , Shepshed, Leicestershire
Abstract: Clee Hill Quarry is an active hardstone (dolerite) quarry located 5 miles to
the east of Ludlow, Shropshire. The quarry is in Carboniferous Coal Measures which
have been intruded by a thick (c. 60 m) conformable fine-grained olivine-dolerite sill.
The whole sequence is now folded into a broad synclinal structure and is extensively
faulted. The area is blanketed by glacial deposits, 2-12m thick. Historically,
quarrying operations have been closely allied to the geological structure being
confined to the margins of the syncline where the dolerite is devoid of overlying Coal
Measures. In 1973 a programme was undertaken to assess the viability of using Coal
Measures material for the production of lightweight aggregate. This programme was
initiated because virtually all remaining, albeit substantial, planned reserves of
dolerite were overlain by considerable thicknesses of Coal Measures and glacial
deposits. While initial results from a technical viewpoint were encouraging, the
project was abandoned for commercial reasons. The Coal Measures sequence
overlying the dolerite sill comprises in excess of 30 m of mudstones, siltstones and
sandstones as well as four recognized coal seams. Piecemeal mining of this coal had
taken place on the Clee Hills for centuries, and in the area for future quarrying
abundant evidence was available at surface of former bell-pit workings. In the early
1980s a decision was taken to evaluate the coal deposits at Clee Hill Quarry. The area
for detailed assessment was defined using existing borehole data and evidence from
old workings identified from site survey and aerial photographs. Exploration in two
separate phases comprised the drilling of 44 open holes with spot coring and borehole
geophysical logging. Coal quality was determined by analysing all relevant borehole
core samples. Although coal reserve estimates assumed a high degree of past shallow
mining activity, the economic viability of working the coal seams by opencast
methods was established. In 1986 a planning application was submitted to Shropshire
County Council to work and remove all coal overlying the dolerite, over a 3 year
period. The proposal would allow exploitation of a valuable mineral asset, release
substantial reserves of hardstone (dolerite) and allow restoration at an early date of
large areas of former mining and quarrying dereliction. Planning permission was
obtained in August 1988. Negotiations with the Opencast Executive of British Coal
culminated in the granting of a licence to work both British Coal (vested) and ARC
(alienated) coal. Coal mining was commenced in October 1988. Predictions of seam
thickness and faulting were consistently accurate and vindicated the site investigation
programme. In two aspects more detailed/accurate information would have been
useful. Firstly, with regard to coal quality, borehole core samples did not accurately
reflect in situ moisture content. Secondly, the extent of old workings in the upper coal
seams was significantly overestimated. Neither aspect significantly affected the
viability of the project. The mining phase including the major restoration works was
completed in July 1992.
Clee Hill Q u a r r y , located 5 miles to the east o f progress o f resource e v a l u a t i o n at Clee Hill
L u d l o w , S h r o p s h i r e (Fig. 1), is a n a c t i v e Q u a r r y over the p a s t thirty years a n d relating it
h a r d s t o n e (dolerite) q u a r r y o w n e d a n d o p e r a t e d to the d e v e l o p m e n t o f the quarry.
by A R C L i m i t e d (Central R e g i o n ) a w h o l l y
o w n e d subsidiary o f H a n s o n plc. Geology
T h e q u a r r y is n o w a m a j o r source o f con-
s t r u c t i o n materials for the w h o l e o f the W e s t T h e Clee Hills f o r m a d i s c r e t e o u t l i e r o f
M i d l a n d s region. T h e stone also meets specialist C a r b o n i f e r o u s rocks w h i c h o c c u p y the core o f
r e q u i r e m e n t s in areas as far afield as S o u t h a b r o a d N E - S W t r e n d i n g (Caledonide) synclinal
Wales. structure. T h e simplified geological succession is
This p a p e r is a case h i s t o r y t r a c k i n g the illustrated in Fig. 2.
From Whateley, M. K. G. & Harvey, P. K. (eds), 1994, Mineral Resource Evaluation 11." 219
Methods and Case Histories, Geological Society Special Publication No. 79, 219-232.
220 L.A. CRUMP & R. DONNELLY
4, Brid(Je~rth
A Brown CIW
h
/
j~'" A TIT1(RSTON(CL[E
/
/
KEY
/
191,7 PLAIIIIIII6 COIlS(lIT
DounoAItY /
1901i CONS(NTILUARliY k..
O(VELOPII(EIBIT&llEA
I
.J
o
"/
/
./ "
.//.. / 2
/
J
•/ .// /
~" /..// ~,---,,,
,," o,usr~/,, " ~ ~ v ,
The Upper Carboniferous Coal Measures The Coal Measures rest unconformably on
comprise an alternating sequence of predomi- the sandstone, conglomerates and marls of the
nantly shales/mudstones, with subordinate sand- Lower Old Red Sandstone Clee Group. These in
stones and thin coal seams which have been turn overlie the red marls and sandstones of the
intruded by a thick (c. 60m) conformable Ditton Series and Downton Series. Silurian
olivine-dolerite sill. Wenlock Limestones and Shales and the Pre-
OPENCAST COAL MINING AT CLEE HILL 221
cambrian Stretton Series outcrop to the north- The youngest sediments, glacial deposits,
west. cover the whole area. The traditional interpreta-
tion (Greig et al. 1968; Hains & Horton 1969) of
the 'glacial materials' on the Clee Hills is that
they comprise predominantly of solifluction
GLACIAL DEPOSITS QUATERNARY deposits (head). However, although consider-
(Head and Till?) able thicknesses of deeply weathered head have
been observed overlying the dolerite in the Clee
COAL MEASURES UPPER Hill Quarries, the Coal Measures sequence is
INTRUSIVE DOLERITE CARBONIFEROUS often overlain by material resembling a glacial
COAL MEASURES (WESTPHALIAN)
till, which by implication would belong to an
CLEE GROUP DEVONIAN older (Anglian?) glaciation.
DITTON SERIES (LOWER O.R.S.)
DOWNTON SERIES
Historical background
Fig. 2. Clee Hill geological succession
The Clee Hills contain a wealth of potentially
exploitable rocks and minerals, including lime-
stone, dolerite (locally known as dhustone) iron
ore and coal. These have been extensively and
Where the dolerite sill is unprotected by variously worked during the past eight hundred
overlying Coal Measures, it has been subjected years.
to deep (tropical?) weathering during the The earliest recorded industrial activity in the
Quaternary (warm interglacial periods). The area is coal mining (Jenkins 1983). In 1235
uppermost 2-3 m are commonly weathered to a Wigmore Abbey received five shillings for the
thoroughly decomposed orange-red residue with sale of coal at Caynham on Titterstone Clee.
occasional blocks of less weathered dolerite Piecemeal mining continued on the Clees for
(roche). For considerable depths (30-40m) centuries and by the early eighteenth century a
below the surface, the dolerite may also be large number of shallow 'Bell Pit' workings were
weathered along discontinuities, principally sub- in existence. During the nineteenth century coal
vertical joints and high-angle faults. This deep became much more important commercially as
weathering may be pervasive or only affect the only suitable source of local power for the
exposed joint surfaces with little detrimental increasing development and rapid mechaniza-
effect in terms of aggregate quality. tion of stone quarrying. Coal mining became
When fresh, the dolerite is dark blue-grey or progressively rationalized and in 1858 a railway
blue-black in colour, displays concoidal fracture was constructed from Ludlow to Clee Hill for
and exhibits a fairly well developed system of development of the coal trade. By 1860 a
columnar jointing. Petrographically the rock is number of deep underground pits had devel-
fine-grained consisting of olivine phenocrysts oped around the hills.
set in a groundmass of plagioclase feldspars Stone gradually replaced coal as the most
(labradorite-bytownite) and augite with minor important product and in 1910 output from the
magnetite and rutile. Analcite may occasionally Clee Hill quarries exceeded 400 000 tonnes per
be found interstitially in the freshest dolerite. annum with over two thousand employed in the
Olivine shows complete to partial serpentiniza- industry. The last working colliery in the area,
tion whilst plagioclase may be albitized and Barn Pit, was closed at about the time of the
replaced by carbonate. General Strike in 1926.
Radiometric dating suggests an age of Historically, quarrying operations have been
295 Ma (Westphalian D) for the West Midlands closely allied to the geological structure, being
dolerite sills (Kirton 1984). The Coal Measures confined to the margins of the syncline where the
are equivalent to Westphalian A-C. The sills are dolerite escarpments are devoid of overlying
therefore considered to have been intruded into Coal Measures. This was recognized in the
ductile unconsolidated Westphalian C Coal planning consent granted in 1947, which
Measures prior to or during folding. Lateral included all the major quarries in the Clee Hill
offshoots of the sill into the Coal Measures, the complex (Belfry, Titterstone, Dhustone and
presence of chilled margins and narrow bands of Incline; Fig. 1) and covered an overall area of
coarse-grained material within the sill, and 251 ha (620 acres). Until relatively recently,
palaeomagnetic evidence confirm an intrusive quarrying continued to be controlled by this
origin. pattern of dolerite outcrop.
222 L.A. CRUMP & R. DONNELLY
Quarrying and resource evaluation: (iii) Seismic survey proved the most successful
geophysical technique. The equipment used a
1950-1972 facsimile seismograph, with a 3 kg sledgeham-
mer and steel plate as the source of energy and
During the 1950s and 60s, the reserve situation single fixed geophone as detector. As a control, a
progressively deteriorated as quarrying was 25 m outcrop line was first 'shot' in Dhustone
forced into areas with either significant Coal Quarry and this showed dolerite velocity
Measures overburden or deep weathering. increasing with depth. Quantitative interpreta-
Quarry production faces were frequently char- tion of the survey lines was made and profiles of
acterized by a mixture of fresh and weathered rock-head deduced. Reported depths correlated
dolerite. Contamination of the rock pile follow- reasonably well with those given from check
ing blasting was common and consequently led boreholes.
to a high percentage (20-25%) of waste. In summary, the surveys were only partially
Titterstone Quarry closed in the late 1950s successful because of the general presence of
and in the mid-1960s, Incline Quarry ceased an upper layer of weathered dolerite and the
working due to increasing thickness of Coal varying thickness of overlying glacial deposits,
Measures overburden-sandstones and shales. which contain a high proportion of dolerite
Quarrying at Dhustone was also severely boulders. Both factors tend to mask the deeply
restricted to the south by Coal Measures shale incised weathered or faulted zones. A general
and mudstones. Main production moved to interpretation of the results of the various
Belfry Quarry which was in fact 'Hobson's surveys concluded that the area immediately
Choice', since although overlying Coal Mea- surrounding the Belfry Quarry was probably
sures were absent, workings were hampered by faulted and areas of sound, comparatively clean
extremely variable rock quality due to weath- dolerite would be limited in extent.
ering, faulting and a policy of not stripping
overburden as a separate advance operation.
From the mid-60s through to the early 70s, Quarrying and resource evaluation:
quarry development at Clee Hill was broadly 1972-1993
based on the findings of a number of separate
geophysical surveys centred on the Belfry Dolerite
Quarry area. Early core drilling at Clee Hill
was unsuccessful (and expensive) and for There was a reluctance over a long period of
geological control considerable reliance was time to assess the overall situation by core
placed on percussion (open hole) drilling and drilling (with cost being the most important
sampling, and on the experience of Clee Hill factor). However, in 1972 a major new initiative
management and drillers in interpreting the was taken to evaluate the Company's hardrock
results. resources. The programme was instigated by the
In 1963 combined ground magnetic, resistivity fact that virtually all remaining, albeit very
and seismic refraction surveys were undertaken substantial, planned reserves of dolerite were
over an area of approximately 12.5 ha north of overlain by considerable thickness of Coal
Belfry Quarry (Brown et al. 1963). Measures and/or glacial deposits which were at
(i) The magnetic survey comprised closely that stage unquantified. The object of the survey
spaced readings, taken along pegged lines, using was to define long term reserves of good quality
an Elsec Proton magnetometer. Whilst there clean dolerite, with economic overburden/miner-
was a strong magnetic susceptibility contrast al stripping ratios.
between overburden and unweathered dolerite Initially it was decided to investigate the area
in laboratory trials, many field readings actually between Incline and Dhustone quarries where
fell within a common range. Results indi~zated outcrop contacts of dolerite with the overlying
the whole survey area was underlain by dolerite, Coal Measures record dips of 20-30 towards the
but the technique was of little use qualitatively. southeast and northwest respectively, indicating
(ii) In the ground resistivity survey, measure- a synclinal area between the two quarries.
ments of ground resistance were made using Assuming a constant dip, Coal Measures in
both constant separation and expanding elec- excess of 90 m could overlie the dolerite in the
trode layouts. The theory that unconsolidated centre of the syncline. However, it was reasoned
damp overburden would have a lower electrical that beneath the Coal Measure, fresh unweath-
resistivity than the crystalline dolerite was ered dolerite would be present.
sound. However, in practice, the resistances During the period July 1972 to June 1973,
were highly variable and the results inconclusive. geological work comprised a core drilling survey
OPENCAST COAL MINING AT CLEE HILL 223
• --","~ '".:'. ':, ~ !,. :." ' ' -yV /×-/~--'-'~ ~. '7,7 .... -,, , ,':
'¢" ,"/
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'- :
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:"~ \<~: "";"" " ~ '~ /--' H-~"<'-~"k"+"'< r-~'-~t-~Z " ' "":".;'.~. ~i'::..... :'"":"""
" :':-;~ .... ". :.'~, q.'--" l--:~!t ~, ',.'-+-"3.-~ ,.~'; ',' .'k- _-i ....,_..,;,.::.. . :.::,-
.... .-- 7~'~-~..'.'~'.;" :>.,-: , v--.--_ Z ...... ..,. , , ,-,--. 'k::~ ....:.-
: .... /~"-.-.-# ,, ;,;, ,';'-:..--.. ~.4',_~ ...... -'dS'.', 'V~ , "~ .'.:'" -
~;.:;:. ;W:,'~" ,'~ 7 '~fi=-'.---'--.--~-X ,'~%','<~-S " , ..... }1~.4
.... ...... tf.::,- ............
•. .... -" ':....~,2klIl fl / ," "-~ ~ t / ~--...._',.':',-"._'.~q:'~.,.:~:.'. '., ,"; ...........
/ "'[ ><, ~--%?<x'0\ i/
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, (.4 i ...... ! . . . . . . . ,
odll
. ,.I v,.":;:~-;"
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- ~ ~ / \ t k" i 1 >~ " "" I! '! dV" il a \ " ", ","
. " i:" " :. " ,'~.,~ { ' . "
T\I'. "'t" -+' v l t l ~ : / lii~i ~"~: ,t\ -"" ....
./ .¢-.
....I
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" '
..".:::;i..::
'/'
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." ~.,.> /
I
/
\
.... k
- .,/ .......//" j;"
i'j
.-.
/;" .
..... Origlnlll s~rfica ¢orlto4Jrs
BH O~eritecored boreholes
Fig. 3. Clee Hill overburden (glacial deposits and Coal Measures) isopachs.
224 L.A. CRUMP & R. DONNELLY
Table 1. Summary of borehole information for the area between Dhustone and Incline Quarries
over approximately 30ha within and between tial dolerite displacements were mirrored by
Dhustone and Incline quarries, and a seismic changes in the thickness of the Coal Measures
refraction survey of 10ha in the area east/ overburden.
northeast of Belfry Quarry. The theory that good quality, clean, massive
Using an A R C drill rig, 31 boreholes were unweathered dolerite existed beneath Coal
drilled with a total metreage of c. 1200m. Measures was proved correct. In the area
Drilling generally involved open holing through between Dhustone and Incline Quarries, eight
the overlying Coal Measures and coring of the boreholes proved massive unweathered dolerite
underlying dolerite. Of the 13 boreholes drilled with very limited zones of broken material. Two
between Dhustone and Incline, eight boreholes boreholes (on the margin of the syncline and
accurately determined the full thickness of both devoid of overlying Coal Measures) proved
Coal Measures and dolerite. alternating broken and massive material.
Table 1 summarizes borehole results and Material representative of boreholes showing
shows the relative thickness of glacial deposits, different grades of weathering and frequency of
Coal Measures and dolerite between Dhustone jointing/fracturing was sampled and subjected to
and Incline Quarries. For borehole locations see a full range of physical and mechanical tests.
Fig. 3. The results showed very little variation, indi-
The drilling survey proved that the area cating good quality rock suitable for general
between D h u s t o n e and Incline quarries is structural and roadstone purposes and having
underlain by a well-defined faulted asymmetric identical properties to those of current produc-
syncline. The dip on the upper dolerite contact tion material. Broken dolerite did not produce
with Coal Measures rapidly flattens out from the inferior quality chippings.
margins to the central part of the syncline. The In summary, the borehole survey was success-
synclinal fold appears to close both to the south- ful in proving over 20 million tonnes of
west and in the area to the N E between predominantly massive, clean dolerite in an
Dhustone and Belfry Quarries. area between Dhustone and Incline quarries.
A maximum thickness of 30.24m total over- This area was defined for future quarry devel-
burden was proved. The underlying dolerite sill opment. The resource was, however, overlain by
was very consistent with an average thickness of approximately 6.5× 106 m 3 of Coal Measures
57.0m. Contours drawn on the base of the and glacial materials.
dolerite indicated widespread faulting. Substan- During this period of exploration, production
OPENCAST COAL MINING AT CLEE HILL 225
continued to be concentrated from faces estab- led to an extension of the 1973 borehole survey,
lished at the northern end of Belfry Quarry. and at four locations the Coal Measures were
Results of advance (pre-production) percussion core drilled to determine their precise composi-
drilling were inconclusive and it was originally tion, in particular the amounts of mudstone
intended to extend the core drilling survey to this present.
area. However, to save time and expense a Predictably, drilling proved the Coal Mea-
further seismic refraction survey was undertaken sures to be highly variable, both laterally and
adjacent to the current production area. The vertically, due to the characteristic rhythmic
survey concluded that the area east and south- style of sedimentation. Five main rock types
east of Belfry was underlain by dolerite relatively were recognized: sandstone, siltstone, brown-
close to surface, but much of it would be highly grey-blue mudstone, black carbonaceous mud-
weathered and broken and likely to contain a stone and coal. It was concluded that a high
high dirt content. Further east and northeast percentage of the Coal Measures sequence was
another Coal Measures basin would appear to mudstone, and sandstone did not form a major
be present (Roberts 1964). part of the succession.
Two complete sets of core samples were
Coal Measures (lightweight aggregate) submitted to a commercial lightweight aggre-
gate producer and a number of tests were carried
Preliminary test work on the suitability of Clee out on mudstones from different depths. They
Hill Coal Measures as a potential source of raw indicated the material was suitable for the
material for lightweight aggregate production manufacture of good quality lightweight aggre-
was undertaken as early as 1970. Initial results gate and a bulk sample (approximately 4t) of
were very encouraging. These results combined blue-grey mudstone was dug from a shallow pit
with the now recognized overburden problem and subjected to pilot plant trials. A quantity of
226 L.A. CRUMP & R. DONNELLY
coal from South Wales (Abernant Middlings) It was concluded that 60% of Coal Measures
was used for fuel. The initial results from sequence would produce good quality light-
borehole samples were substantiated and the weight aggregate and a further 20% (siltstones
Clee Hill blue-grey mudstone readily sintered to and silty mudstones) would produce material of
a good quality lightweight aggregate-type pro- a somewhat inferior but still acceptable quality.
duct (Thrasher 1974). A further 10% coal could fulfil part of the fuel
Following the successful plant trials, it was requirement and a remaining 10% would be
decided in early 1974 to extend the investigation waste sandstone.
to gain detailed information over a much wider During the mid-1970s despite all the above
area. During the period April-August 1974 an site investigation, laboratory test work, plant
additional 15 boreholes (c. 272 m, in part cored), trials and evaluation, the lightweight aggregate
were drilled to base of Coal Measures in the area project floundered and was finally abandoned
between Dhustone and Incline quarries. Sum- for reasons of a non-technical (commercial)
mary data obtained from these boreholes are nature.
contained in Table 2 It was reluctantly accepted that future devel-
The composition, distribution and quantity of opment of Clee Hill Quarry, would take place
Coal Measures rock types became much clearer. between Dhustone and Incline Quarries with
Mudstone proved the dominant component removal of substantial volumes of Coal Mea-
forming the major part of the sequence. Lateral sures overburden an integral part of future
variation was particularly evident with respect to quarrying.
sandstones and coal. Sandstone was well devel- A programme of phased development was
oped towards the southwest limit of the area, but initiated and overburden stripping was under-
poorly developed elsewhere. Coal was absent taken on an irregular basis at Dhustone south-
over the southern and southwestern areas, but west. A benched system was re-established with
well developed over the central and northwest the objective of trying to minimize high stripping
part of the area where the sandstone is poorly ratios whilst maintaining operating efficiency
represented. and slope stability.
The pilot plant trials showed different mud- Pre-development drilling (using the quarry
stones produced different quality lightweight rig) was undertaken to predict and determine
aggregates. The most notable contrast was overburden thicknesses and volumes, essential
between black carbonaceous mudstone which for budget planning. To illustrate the scale of
produced excellent quality lightweight aggregate overburden removal, a 30m advance develop-
and the yellow silty mudstone which produced a ment over a 200 m face length involved stripping
heavier material, albeit within a general specifi- c. 100 000 m 3 overburden.
cation.
Quality appeared to be primarily a function of
the silica content. The high silica sandstones Coal measures (coal project)
would not sinter and were therefore useless. The
siltstones and silty mudstones were found to In late 1980/early 1981 ARC received a number
sinter readily but produced a heavier aggregate of separate enquiries regarding the Company's
than the mudstones. The carbonaceous mud- interest in possibly exploiting the underlying
stones produced excellent lightweight aggregate. coal deposits. This new initiative was ultimately
The coal would not sinter itself, but was useful to prove to be a unique opportunity for
as a source of fuel. development at Clee Hill Quarry.
On completion of the final phase of drilling a A major part of the area between Dhustone
further set of laboratory-scale tests was carried and Incline had been bell pitted for coal,
out on three borehole samples: evidenced by a mosaic of flooded hollows in
collapsed/infilled bell pits and mounds of clay
spoil. It was previously thought that there were
(i) normal mudstone, sintered with Abernant no viable coal reserves remaining. However, in
Middlings of known calorific value, to conjunction with H. J. Rorke Ltd, a subsidiary
establish fuel demand and aggregate of ARC's parent company and an opencast coal
quality; contractor, ARC met the British Coal Opencast
(ii) normal mudstone sintered with carbonac- Executive (formerly The National Coal Board)
eous mudstone and coal or shaley coal; to discuss a proposed project. Despite earlier
(iii) siltstones/silty mudstones sintered with reservations the initial reaction from British
carbonaceous mudstone and coal or Coal (BC) was positive and following prelimin-
shaley coal. ary and separate desk-top exercises both parties
OPENCAST COAL MINING AT CLEE HILL 227
arrived at similar estimates of the coal reserves Table 3. Coal Measures (coal project) boreholes
within the area between Dhustone and Incline summary data
Quarries (260 000 t BC/278 000 t ARC).
BH no. Total coal Total overburden OB:coal
A joint working party was set up to oversee
thickness (M) thickness(M) ratio
the progress of the project. Interpretation of the
(J,K,L&M (to base of
structure and correlation of seams was not seams only) bottom seam)
possible from existing records and no quality
assessments were available. BC stressed conclu-
sive evidence of coal quantity and quality would
be required before agreeing marketing terms and
1 0.86 14.69 17:1
they also wished to have confirmation of ARC's
2 1.07 14.24 13:1
rights of ownership. Whilst they would not 3 2.63 19.59 7:1
contribute financially in the evaluation, they 4 3.45 21.83 6:1
were prepared to offer technical advice and 5 2.44 15.08 6:1
laboratory facilities. 6 2.16 7.53 3:5:1
During the period August-September 1981, 7 0.50 5.65 11:1
Phase I of a coal exploration drilling programme 8 - - - - - -
was undertaken (Crump 1981). The area for 9 1.08 17.92 17:1
evaluation was defined using existing borehole 10 -- -- --
11 2.89 15.54 5:1
data from the lightweight aggregate drilling
12 2.34 13.02 6:1
survey and evidence of old workings as shown 13 1.53 6.50 4:1
on aerial photographs. This area totalled some 14 -- -- --
14ha, although it was open ended to the 15 1.35 15.15 11:1
n o r t h e a s t . R e g a r d i n g coal ownership, BC 16 -- -- --
(vested) coal and A R C (alienated) coal ex- 17 4.26 18.48 4:1
tended to 2.8 ha and 11.3 ha respectively. 18 Not drilled
In consultations with BC it was decided that a 19 2.0 16.98 8.5:1
limited drilling programme, combined with the 20 2.0 11.88 6:1
21 1.31 3.84 3:1
previous borehole information would give the
22 3.8 11.4 3:1
right level of assessment initially required, and 23 2.14 8.78 4:1
provide details on the following aspects: 24 1.67 8.15 5:1
25 2.38 6.32 2.5:1
(i) accurate correlation of the coal seams; 26 2.16 6.84 3:1
(ii) quality of the coal; 27 -- -- --
(iii) extent to which seams had previously been 28 3.2 8.88 3:1
worked; 29 -- -- --
(iv) the economic potential of the other Coal 30 2.11 14.01 6.5:1
Measures strata--particularly the mud- 31 0.26 5.66 22:1
32 1.86+ 18.78 10:1
stones. 33 2.00+ 15.05 7.5:1
34 2.02 10.86 5:1
35 3.38 9.12 2.5:1
The method of drilling and borehole layout 36 4.06 14.32 3.5:1
was decided in consultation with BC geological 37 c.2.40 c.10.1 c.4:1
staff. The drilling programme was contracted 38 c.2.7 9.3 c.3.5:1
out and comprised 13 open holes located at 60 m
intervals along two profiles at right angles. In
addition, two cored borehole intersections of
'productive' Coal Measures strata were com- The drill cores were logged on site jointly by
pleted. The total metreages of open hole and ARC and BC geologists and samples of coal
core drilling were 405.0m and 20.34m respec- material were taken to BC laboratories at
tively. The results of the drilling programme are Cannock where the cores were dried, crushed,
summarized in Table 3. split and analysed (sufficient material was
For accurate correlation and strata identifica- retained for in-company test work). The remain-
tion geophysical logging was undertaken on the ing cores were sent separately to BC for an
open holes. A standard coal composite log was assessment of the mudstone fraction.
run incorporating gamma ray, short spaced Results of the open hole drilling, geologs and
density and long spaced density. Geolog data drill cores allowed recognition of four main coal
was interpreted in conjunction with BC. seams (illustrated in Fig. 4), in stratigraphic
228 L.A. CRUMP & R. DONNELLY
THICKNESS (m.)
RANGE A,VERAG(~
1-01 - 2 3 3 1 88 I MOO0
0 54-083 o 08 I L000
I Basalt/olivine dolerite
Fig. 4. Clee Hill Coal Measures (coal project) generalized geological interpretation.
order; the Fourfeet Seam (referred to in this With limited data, the overall site stripping
project as J000), Smith Seam (K000), Three- ratio was difficult to assess, but estimated to be
quarter Seam (L000), and the Great Seam in the region of 6 : 1 (overburden thickness : coal
(M000). Other u n n a m e d coal seams were thickness). Initial coal quality data indicated
intersected in the boreholes, but these are thin general compliance with limits applied for
and discontinuous. commercial viability (power station require-
The asymmetrical synclinal structure in which ments).
the coal seams occur is illustrated in Fig. 5. The Based on the results obtained to date, the
vertical displacement of coal seams and rapid mining prospects at Clee Hill, subject of course
attenuation of Coal Measures particularly at the to planning permission, were very favourable. It
margins of the area containing coal illustrates was therefore agreed that a second phase of
the significance of faulting. drilling should be carried out at 120m centres
s0~t~ Ol
IlHOl/8
OH l 1 9X81/12 9H61/5 81401113 8,81/7
tsiq 8H81/9 !/ BH0l/5-~A ........................................................................................................
~ ............. .................... . : ~ ~ ....... - - ~ ----r. ~ ,'~"~ .... "" "" ", " ' "
, __ _ _ . ~ ~..~. .7._ . . z ." " . ' . ' . .
c~e-I
r,lo~ LI
4Qmd
~'~0~ lgo
Etlt &l
UHSlI?
fIHOltS-SA ,,~o
DHOl/2 t
' , ' - , ~ , ~ e,81/10
~-~1o
~oe-4 r~.oo LN_.
( G_.|__~D
IHJ I ~ leJm
am.,,,,l~
~ao,i
ll,d o~,Y,I, ,
..................
,,
i>.>.
11¢ ¢
~ ' ~ ~ ~ i
08:
:):)
i ,.
.................... ' ......................... , .............................................. , ........... ,~Zf~
; .......... 4-..... i. ":~ • i.i~(
/i i ,~
;/
• ,..:, (~ ................. ..
..-E ~. ~
ca 8 ,~ a g, d ~,
Fig. 6. Clee Hill Coal Measures (coal pr'oject) geological interpretation as •illustrated by K000 seam.
OPENCAST COAL MINING AT CLEE HILL 231
No. of M A S Chl VM CV
samples
M, moisture content; A, ash content; S, sulphur; Chl, chlorine; VM, volatile matter; CV, calorific value.
over the whole of the potential coal bearing area. additional volume of Coal Measures down to
This grid was closed up at the margins of the the dolerite contact was identified in the area
coal areas, adjacent to known fault lines and in proposed for quarrying immediately SE of
the vicinity of bell pit workings. Dhustone Quarry. The balance of the over-
Following the need to change drilling con- burden was made up with a volume of glacial
tractors to achieve satisfactory coal recovery, the material, waste weathered dolerite and barren
programme was finally undertaken in January Coal Measures outside the coal extraction area
and February 1981 and consisted of an addi- (Bainton 1982).
tional 24 open holes (451.6m) and 5 cored
boreholes (59.76m). All the open holes which Table 5. Clee Hill schedule o f estimated quanties.
encountered coal were subsequently logged
geophysically using the coal composite log. Seam Coal in situ Recoverable coal
These and measurements from cored intersec- (m3) (t)*
tions were used to determine seam thicknesses.
An interpretation of the exploration data was Great (MOO0) 11 702 14 695
Three Quarter (L000) 29 052 31968
made in conjunction with BC Opencast Execu- Smith (K000) 78 061 95 060
tive geological staff (Figs 5 and 6). The coal area Four Feet (J000) 48 571 54 307
is affected by at least six faults, three of these
167 386 196 030
forming boundaries to the coal area. The dip of
the strata in each fault block is generally gentle Total extraction area = 138 500 m1(-34.2 acres)
at around 5-10 ° . Coal extraction area = 107 200 m2 (-26.2 acres)
Additional coal quality determinations were *Tonnage Factor 1.33 tonnes/m 3
carried out on drill core samples (Table 4).
Analyses show the effect of thermal alteration in Allowances
increasing rank of coal from the M000 seam to 15% Old workings in K000
the J000 seam, although rank in any individual 60% Old workings in L000
seam varied quite widely due to the proximity of 80% Old workings in M000
the seam to the sill. Sulphur and chlorine were 5% Faulting in each seam
10 cm thickness reduction for incomplete extraction
consistently low and the coal was 'environmen- ARC (alienated coal) = 154 680 t
tally acceptable'. NCB (vested coal) = 41 350 t
The schedule of estimated quantities for coal Total overburden/interburden volume in
and total overburden was p r o d u c e d using coal extaction area to basal seam
conventional graphical methods with average (includes batters) = 1.70mm3
seam thicknesses for each faulted block calcu- Total overburden volume in coal
lated from the borehole intersections (Table 5). extraction area beneath basal seam
Within the defined coal extraction area the (includes batters) = 0.60mm3
Total overburden volume outside coal
overburden thickness :coal thickness stripping
extraction area = 0.17mm3
ratio was extremely favourable at 9 : 1. However,
a d v a n t a g e was t a k e n of the fact t h a t a 2.47 mm3
considerably higher ratio may be adopted for
economic coal exploitation. Between the base of In October 1986, a planning application was
the J000 seam and the upper dolerite contact is submitted to Shropshire County Council to both
a sequence of barren Coal Measures which rationalize future quarrying at Clee Hill and
average approximately 10m. Removal of an extract and remove from site all coal overlying
232 L.A. CRUMP & R. DONNELLY
the dolerite within the application area, over a Potential reserves of fireclay underlying the
three year period. four coal seams (J000, K000, L000, M000) were
The overall benefits of the scheme were: estimated at c. 470 000 t. The fireclays beneath
seams J000 and K000 were particularly market-
• to restrict future quarrying at Clee Hill able. Unfortunately, commercial agreements
within a relatively small and well-defined could not be finalized within the required
area (c. 33 ha) over which mineral extrac- timescale.
tion would be undertaken over the next 60
years (Fig. 1); Conclusions
• recovery of coal during a carefully con-
trolled special overburden stripping op- Opencast Coal extraction at Clee Hill is now
eration; complete. Considerable volumes of Coal Mea-
• utilization of a valuable national energy sures, mudstones and siltstones which formerly
resource that would otherwise have been comprised a substantial proportion of the
lost; overburden have been used to restore large
• restoration of large areas of former quarry areas of quarrying dereliction (Humphries
and mine workings at an early date, not 1982). In addition, extensive reserves of high
possible without the overburden released quality dolerite aggregate have been exposed,
in this programme; thus ensuring the viability of Clee Hill Quarry.
• continued production of high-grade hard- As other strategic reserves in the West Midlands
stone aggregate secured by reducing become exhausted, it is likely that Clee Hill will
potentially onerous overburden stripping continue to supply local and national markets
costs. well into the next century.
References
Prior to the application and during the
planning determination period, negotiations BAINTON,C. S. 1982. The mining o f coal by open-pit
were held with British Coal Opencast Executive methods with special reference to the Clee Hill
and a licence application submitted to work both project (ARC), Shropshire. MSc dissertation
coal nationalized under the 1938 Coal Act and Royal School of Mines.
GREIG, D. C., WRIGHT, J. E., HAINS, B. A. &
the Coal Industry Nationalisation Act 1946
MITCHELL, G. H. 1968. Geology of the Country
(vested coal), and coal in A R C ownership around Church Stretton, Craven Arms, Wenlock
(alienated coal). Edge and Brown Clee. (Sheet 166) Memoirs of the
A licence was subsequently obtained from BC Geological Survey.
and Planning Consent was granted in August HAINS, B. A. & HORTON, A. 1969. British Regional
1988. Opencast coal mining commenced in Geology--Central England. British Geological
October 1988. Survey.
During the period October 1988-July 1992, BROWN, H. C., HAMILTON, N. & KHAN, M. A. 1963.
322 000 tonnes of coal (saleable) was mined as Report on Magnetic Resistivity and Seismic
Surveys at Clee Hill. Unpublished Report for
part of the removal of c. 2.5× 106 m 3 of
ARC.
overburden. CRUMP, L. A. 1981. Clee Hill--Coal Measures Project
There were two main reasons for the disparity (1981), Summary report. ARC Internal Report.
in estimated and actual recoverable coal HUMPHRIES, R. N. 1982. Soil Report, Clee Hill,
reserves. Firstly, the extent of previous coal Shropshire. Unpublished Report for ARC.
workings was substantially overestimated. Shal- JENKINS, A. E. 1983. Titterstone Clee Hills Everyday
low bell pitting appears to have been largely Life Industrial History and Dialect. A. E. Jenkins.
confined to the working of M000 and K000 KIRTON, S. R. 1984. Carboniferous volcanicity in
seams along subcrops below the drift. The England with special reference to the Westphalian
o f the E and W Midlands. Journal o f the
percentage extraction from the bell pitting was
Geological Society, London, 141, 161-170.
much lower than anticipated. Secondly, at the ROBERTS, D. I. 1964. Clee Hill Quarries, Shropshire.
time of the planning application it was not ARC Internal Report.
anticipated any coal would be washed, crushed THRASHER, F. E. 1974. Geological Survey at Clee Hill
or screened. The installation of a washing plant 1972-73. ARC Internal Report.
substantially improved clean coal recovery, & BEARDSMORE, S. 1975. Diamond Drilling
particularly for coal associated with old work- Surveys at Clee Hill Quarry. ARC Internal
ings, along subcrops and faults. Report.
Database management at the Lisheen deposit, Co. Tipperary, Ireland
J. B A R R Y , 1 J. G U A R D 1 & G. W A L T O N 2
Abstract: The Lisheen Zn-Pb-Ag deposit was discovered by the Chevron Mineral
Corporation of Ireland/Ivernia West Plc Joint Venture in 1990. The mineral resource
estimate is 20.5Mt grading 13.3% Zn, 2.3% Pb and 35 g/t Ag. Massive sphalerite-
galena-pyrite mineralization occurs at the base of the dolomitized, lower
Carboniferous Waulsortian limestones and is bounded to the south by a shallow-
dipping normal fault. The deposit is subdivided into three areas: the Main, North and
Derryville Zones.
Lisheen diamond drill hole data are stored in a relational database management
system called TECHBASE with graphical output to AutoCad. Coding and in particular
'nested' coding facilitates data filtering and efficient editing and interrogation of
data. The coding system has the flexibility to evolve as the multi-disciplined and
multi-sourced data at Lisheen become more complex. Routine tasks which require
frequently-used sequences of commands such as the generation of stick sections and
data reports are automated by the use of macros (runlogs). Faster processing and
editing of data considerably increases the generating speed of sections, maps and data
reports which results in faster, and more accurate calculation of mineral resource
estimations. 'Technicn' is a facility withing TECHBASE which permits parameter
substitution within macros through a simple memo-driven user interface.
benefits in m a n a g i n g a d i a m o n d drillhole
database from resource delineation to evalua-
tion. As a framework for the central topic a brief
outline of the geology and structure is presented,
a more detailed account of which can be
reviewed in Hitzman et al. (1992). 3-D ORE DATA
MODELLING RESERVES VALIDATION
Diamond drillhole from the Lisheen Project
data is loaded into TECHBASEwhich is a database
management system developed by M I N E s o f t Fig. 1. Data processing flow chart.
Ltd, based in Colorado, USA. TECHBASE facil-
itates efficient validation, editing, and interroga-
tion of the 'Lisheen diamond-drilling database' stones extending northeastwards to Abbeyleix
which acts as a core supporting peripheral (Fig. 2). The Lisheen mineral resource, estimated
application modules used to generate, for at 20.44Mt grading 13% Zn, 2°/'0 Pb and 35g/t
example, drillhole stick-sections, mineral inten- Ag (Ivernia West Plc 1992) was discovered by a
sity contour maps and geostatistical parameters Chevron Mineral Corporation of Ireland/Iver-
(Fig. 1). nia West Plc Joint Venture (IPL Joint Venture)
and their geological consultants Crowe, Schaf-
Geology falitzky and Associates (CSA) in April 1990
(Hitzman et al. 1992). About 8 k m further
Lisheen is located about 10km northwest of northeast of Lisheen along the Rathdowney
Thurles in County Tipperary, Ireland and lies at Trend lies the 6.5 Mt Galmoy Zn-Pb-Ag mineral
the southwestern end of the Rathdowney Trend, deposit, grading 12% Zn and 1.26% Pb (Doyle
a 40 km belt of dolomitized Waulsortian lime- eta/. 1992). There are two mineral prospects at
From Whateley, M. K. G. & Harvey, P. K. (eds), 1994, Mineral Resource Evaluation I1: 233
Methods and Case Histories, Geological Society Special Publication No. 79, 233-239.
234 J. BARRY E T A L
~Derrykearn
IPL Joint Venture
Prospecting Licence
BJock
deix
N
! ,
Geological Key
~ Crosspatrick Formation
Dolomitized Waulsortian
~ WaulsortianLimestone
Argillaceous Bioclastic
Limestone
B Zn-Pbmineralization
ea of Fig. 4
*~~.... Fault
~huries
4 .6 8t~10Kilometres ~ Geologicalcontact
Fig. 2. Location and geological setting of the Lisheen base metal deposit.
Derrykearn and Tonduff about 25 km further and stratigraphy of the Lisheen mineral deposit
northeast along the trend near the town of see Hitzman et al. (1992).
Abbeyleix (Fig. 2). CSA are retained by the IPL
Joint Venture as geological consultants on the Structure and mineralization
mineral exploration, resource delineation and
database management of the Lisheen deposit. At Lisheen Zn, Pb and Fe sulphides are mainly
The Argillaceous Bioclastic Limestone (ABL), concentrated in one, or locally two, stratiform
Waulsortian Limestone and Crosspatrick Lime- lenses at, or close to, the base of lower
stone are the main lithological formations Carboniferous dolomitized Waulsortian lime-
recognized at Lisheen. The ABL is considered stone which dips gently to the southeast at
to be approximately 400 m thick in the Lisheen about 5°. Mineralization occurs at depths of
area and the overlying Waulsortian Limestone 180-200m as massive replacement of the host
between 170 and 190m. The Waulsortian Lime- rock or as dense ramifying stockworks of
stone including the lower part of the Cross- veinlets. Thickest sulphide intersections of up
p a t r i c k L i m e s t o n e have been r e g i o n a l l y to 35m occur in the proximal hanging wall of
dolomitized and hydrothermal ferroan dolo- the Killoran fault which is a normal fault
mite occurs as narrow veinlets cutting regional striking approximately 090 ° and dipping 30 ° to
dolomite (Hitzman et al. 1992). A breccia called 55 ° north with a throw of approximately 200 m
the Black Matrix Breccia (BMB) forms a more (Fig. 3). Mineralization increases in grade and
laterally extensive sheath to mineralization. The thickness close to sub-parallel E - W faults in the
BMB can be clast supported or matrix sup- hanging wall of the Killoran fault. Sub-vertical,
ported depending on the degree of development north-trending strike-slip faults with throws of
and consists of dark grey angular to subrounded up to 15m transect the deposit. The Lisheen
clasts of dolostone in a black matrix consisting deposit is divided into three main mineralized
of minor sulphide and both ferroan and non- zones: the Main, North and Derryville Zones
ferroan dolomite (Hitzman et al. 1992). (Fig. 4). The Derryville Zone is about 1 km ENE
For a more detailed description of the geology of the Main Zone and about 200m east of a
DATABASE M A N A G E M E N T AT LISHEEN 235
Argillaceous Bioclastic
--I CrosspatrickFm. Limestone
Waulsortian 'Transition' Unit ] Oolite
Fig. 3. North-south cross-section (facing east) through the Lisheen base metal deposit.
°o o o
o o o
12000 12000
"t-"
O
• North Z o n e
11000 ~ 11000
Lineof Section
DerryvUle
Fault 10000
10000
Killoran
Fault
o o
Fig. 4. Borehole plan of the Lisheen base metal deposit indicating the main ore zones.
236 J. BARRY ET AL
Ethernet.
laser printer
hbas
statiq :station
~ C
"ninal
x termna
Apple
Macintosh
Network
..
Pen ¸.
Plotter
Plotter ~ SCSIconnection
relay zone which accommodates a 'left step' in assayed for Zn, Pb, Cu, Ag, Fe, As, Cd, Ba and
the Killoran fault. Two important observations Hg. Specific gravity measurements are made for
concerning mineralization at Lisheen are that it all assayed intervals because the wide variation
is spatially associated with east-west-striking, in pyrite content throughout the deposit results
moderately dipping normal faults which appear in a specific gravity range of 2.8-5.3.
to form part of an ENE-trending 'left stepping'
en echelon fault system (Fig. 1) and secondly Background to the current system
that mineralization occurs just at or within
metres of the contact between the ABL and the At an early stage in the evaluation of the Lisheen
regionally dolomitized Waulsortian limestone mineral resource, the IPL Joint Venture pur-
where there is an abrupt change in the material chased an Apple Macintosh version of the
and chemical properties of the rock. TECHBASEdatabase management system. Initially
TECHBASE was loaded on CSA's in-house Apple
Macintosh network but problems with the
Computerization software made it necessary to convert to a
DOS-based system loaded onto a 386 IBM
Data desktop computer.
TECHBASE places high demands on hard-disk
To date more than 390 diamond drillholes have access times and requires fast processing speeds,
been drilled totalling 6 0 k m of drill core. and within 6 months the drillhole database had
Diamond drilling is on a north-south grid at rapidly increased in size to the point where the
30m, 60m and 120m centres. In three areas of 386 computer was inadequate. TECHBASE was
the Main Zone boreholes were drilled on a 7.5 m, upgraded to a UNIX-based operating system
15m and 30m spaced 'L' pattern to test for housed in a 35 MIPS Solbourne 500 workstation
sulphide grade and thickness continuity. In the which provided greater memory and processing
Main Zone inclined boreholes have been drilled speed together with multi-user/multi-tasking
to determine the attitude of joint sets. Down- capabilities.
hole survey readings are taken at 50 m intervals Currently at CSA two Solbourne Unix work-
with a Sperry Sun magnetic single shot instru- stations provide a combined memory capacity of
ment. 3 Gbytes. The workstation is linked to IBM
Core samples, commonly 50 cm in length, are compatible and Apple M a c i n t o s h desktop
DATABASE MANAGEMENT AT LISHEEN 237
computers by Ethernet providing the capability can be matched unambiguously with the correct
for it to function as a network fileserver. The data row.
Lisheen database is also integrated with regional Every field in the database has certain
geological, geochemical and geophysical data attributes assigned to it by the user which can
using a geographical information system (GIS) be modified as required. Fields may be text,
(Fig. 5). numeric or calculated and are assigned a
Output devices at CSA include an A0-colour maximum number of characters. Numeric fields
pen plotter, an Al-colour electrostatic printer, can be assigned maximum and minimum values
an A4-colour inkjet printer/scanner and laser and degrees of resolution. Data which does not
printers. Besides TECHBASE and GIS systems, conform to a predetermined format cannot be
other ancillary software packages include Auto- loaded into the target field thus ensuring a 'first
Cad, Correldraw and Canvas drafting packages. line of defence' in data validation.
Three or four digit code numbers are assigned
Lisheen database to data items such as the type of lithology, type
of dolomitic alteration and the degree of breccia
Two different data input methods are used to development. This coding facilitates the filtering
load data into the Lisheen database. The first of data for efficient management, editing and
input route involves loading data from ASCII validation of the Lisheen database.
text files generated from software packages such During the early exploration stage of the
as Lotus, Excel and Word. A second input Lisheen project a relatively simple coding system
mechanism is by a customized user interface reflected a relatively simple geological database.
through which data is typed directly into the A more comprehensive and detailed coding
database. system was necessary due to the rapid increase
In TECHBASE, diamond-drillhole data are in size of the drillhole data during the deposit
stored in columns called 'Fields' within files evaluation stage and greater complexity in this
called 'Table'. Every table has a 'key' through data which reflected a better understanding of
which it is related or linked to the other tables in the geology, metallogenesis and structure. As
the database. This 'relational' aspect of the examples of the increased complexity in the
database means that it is necessary to enter an geology at Lisheen, nine facies have been
information item only once, with data spread identified within the Waulsortian Limestone
across many Tables being simultaneously ac- and eight within the ABL. Black Matrix Breccia
cessed for various module applications such as is coded according to whether it is clast or
stick-section generation. One or more fields in a matrix supported and whether the predominant
table can be selected as the 'key' to the table clast type is limestone, hydrothermal dolostone,
provided that every record in a table relates to a regional dolostone or polymict.
unique key value or combination of values. The degree of detail in cross-sections needs to
Tables are updated by loading new records be flexible so that detailed continuity sections
'targeted' at the unique key address. As an can be plotted at large scales of 1:500 and more
example some tables such as COLLAR have collar synoptic structural sections can be plotted at
coordinate and elevation records which relate to smaller scales of 1:2500.
a unique key value which in this case is the
drillhole number. Other tables such as ASSAYS Well D e v e l o p e d B M B that cross-cuts Regional Dolomite
and LITHOLOGY have many records relating to
the same drillhole number and in such cases two
fields are required to define a unique address for I = B M B "dP''S- / ~Ol
I = Limestone
each record in the table. In this case the key 2=WMB / "~ __-Reg.
- Oolomite
Hydro. Dolomite
consists of the two key fields which store the i~ 04 = Lst. + Regional
1 = Poorly Developed 05 = Lst. + Hydrothermal
drillhole number and the 'from' of the interval to 2 = Moderately Dev.
which the data now relates. 3 = Well Developed
digit code for all types of BMB was used with the numbers. A 'Length' composite will aggregate
first digit identifying the information item as all Waulsortian facies thicknesses and calculate a
BMB, the second digit denoting the degree of point value for a particular borehole which can
development whether it is clast or matrix- then be used to generate an isopach of the
supported and the last two digits indicating the Waulsortian limestone.
lithology or lithologies of the predominant clasts To composite assays it is necessary to flag the
(Fig. 6). Information can be extracted for assays above a certain cutoff grade together
reports or cross-sections at various levels of with any subgrade assays required to yield a
detail using data filters. If as an example it is minimum mining width. The 'Code' composite is
only required to determine the total thickness of then used to aggregate and average the flagged
BMB in a borehole a filter such as: assays for a particular borehole. If the composite
interval is already k n o w n repetitive assay
Field Argument Value compositing using the 'Interval' composite
BMB CODE > 999 option is automated and easy to use by utilizing
BMB CODE < 2000 a 'Technicn' programme where the only para-
meter substitution is for borehole number,
will exclude all non BMB data. If, however, one 'from' and 'to'.
wanted to 'flag' where the location in the Geological composites are grade controlled
database where matrix supported BMB con- and there is a sharp cutoff between economic
tains p r e d o m i n a n t l y regionally dolomitized and background Zn and Pb values in both the
clasts, then a filter such as: hanging wall and footwall. TECHBASEore reserve
facilities include 3D surface modelling, kriging
Field Argument Value and inverse and minimum curvature estimations.
BMB CODE = 1302 Data can be estimated into polygons, cells, or
3D blocks.
would be applied (Fig. 6). One of the most powerful and useful aspects
Peripheral modules of TECHBASE are utilized of TECHBASE is its macro generating programme
for data output and analysis. As an example, the 'TECHNICN'. Runlogs (macros) can be created to
'SECTION' module creates stick-sections, with run various task routines, such as stick-section
data plotted down the hole as coloured bars, generation and mineralized intersection compo-
histograms, hatched bars or text. Multiple sites. TECHNICN can be set up where menu
strands of information can be plotted along- parameters can be edited quickly allowing a
side each drillhole. user-friendly interface for nOn-TECHBASE users.
The drillhole stick-section generated by
TECHBASE is in the form of a metafile. This can Conclusions
either be plotted directly or exported into a
CAD package such as AutoCad, where digitiz- • The Lisheen computer system is flexible and
ing of interpreted cross-sections and graphical effective in editing, i n t e r r o g a t i n g and
enhancement of the drawing takes place to validating multi-sourced and multi-disci-
create a finished cross-section (Fig. 3). The plined data.
drawing exchange files (DXF) generated by • TECNICN macros with TECHBASE can be
TECHBASE can be operated in 'true' map quickly modified using a customized user
coordinates which can be imported directly into interface to produce maps and stick sections
AutoCad template drawing files which contain at the required scale.
ordinance data and borehole locations plotted at • Faster extraction and processing of data
the required scale. increases the speed and accuracy of mineral
Data can be composited in TECHBASE on code, resource calculations and processing of
interval or length composite options to calculate, survey data.
for example, lithological thicknesses for isopach • A coding system needs the flexibility to
maps or assay composites for mineral resource evolve as data becomes more complex and a
estimations. To calculate the total thickness of nested coding system is required to extract
Waulsortian limestone in a borehole it is data at various levels of detail.
necessary to aggregate the thicknesses of the
Waulsortian facies intersected in that borehole. References
All Waulsortian facies have three digit code
numbers beginning with the number '1' so that a DOYLE, E., BOWDEN, A. A., JONES., G. V. & STANLEY,
filter can be applied to the lithologies which G. A. (1992). The geology of the Galmoy zinc-
excludes all data outside of the Waulsortian code lead deposits, Co. Kilkenny. In: BOWDEN, A. A.,
DATABASE MANAGEMENT AT LISHEEN 239
EARLS, G., O'CoNNoR, P. G. & PYNE, J. F. Rathdowney Trend, Ireland. In: BOWDEN,A. A.,
(eds) The Irish Minerals Industry 1980-1990. The EARLS, G., O'CONNOR, P. G. & PYNE, J. F. (eds)
Irish Association for Economic Geology, Dublin. The Irish Minerals Industry 1980-1990. The Irish
HITZMAN, M. W., O'CONNOR, P., SHEARLY, E., Association for Economic Geology, Dublin.
SCHAFFALITZKY, C., BEATY, D. W., ALLAN, IVERNIA WEST PLC 1992. Annual Report. Limerick,
J. R. & THOMPSON, T. 1992. Discovery and Ireland.
geology of the Lisheen Zn-Pb-Ag prospect,
Laboratory evaluation of kaolin: a case study from Zambia
C. J. M I T C H E L L
Kaolin is a commercial term used to describe a developed countries. The two samples of
white clay composed essentially of the clay Chilulwe kaolin were processed by hydrocyclon-
mineral kaolinite (A12Si4010(OH)8). The term is ing to produce kaolinite concentrates and these
typically used to refer to both the raw clay and were then evaluated for their use as an industrial
the refined commercial product. It is pricipally raw material. The evaluation described in this
used in paper and ceramic products and to a study is appropriate for a reconnaissance
lesser extent in paints, rubbers, plastics, and appraisal of a kaolin deposit such as might be
agricultural and pharmaceutical products. In carried out by a geological survey or mines
paper, kaolin is used as a filler to reduce the cost department to give an indicator of commercial
of the wood pulp and as a coating agent to potential. It is not intended to match the highly
improve printing qualities such as smoothness, specialized use-related testing carried out by
gloss and printability. In ceramic products, suppliers in order to meet the rigorous specifica-
kaolin is used to confer both whiteness and tions required by consumers in the paper and
good casting properties to the body. The ceramic industries.
properties of kaolin that determine its suit-
ability for such applications include chemical The Chilulwe kaolin deposit
purity, high kaolinite content, fine particle size,
euhedral kaolinite platelets, high brightness The Chilulwe kaolin is located 4 0 k m SE of
values and appropriate rheology. The evalua- Serenje in the Central Province of Zambia (Fig.
tion of kaolin for commercial use involves the 1) in rolling bush with occasional dambos
detailed investigation of these properties in (broad grassy depressions). The kaolin occurs
representative field samples. in a hydrothermally-altered feldspar pegmatite
Samples of the Chilulwe kaolin were evaluated within the basement, which is a sequence of
in 1990 and 1991 (Mitchell et al. 1992) and this biotite-rich granulites and migmatites, garnet-
was followed up by a visit to the deposit in May mica schists and granulitic quartzites. The
1992. The work described in this paper forms pegmatite consists of a massive quartz core
part of the BGS/ODA research and development (2m in diameter) surrounded by a zone of
project 'Minerals for Development' the aims of microcline feldspar with muscovite intergrowths.
which include the encouragement of small-scale Its contact with the country rock is obscured by
mining of indigenous mineral resources in less- ramifying veins of fine muscovite and quartz.
From Whateley, M. K. G. & Harvey, P. K. (eds), 1994, Mineral Resource Evaluation II: 241
Methods and Case Histories, Geological Society Special Publication No. 79, 241-247.
242 C.J. MITCHELL
. . . . . . . .
C ~ - - ~ . % - .
". • '.
. . . . . . .A f
t .--'~ • I.. ,¢'.
. . . . . .,,,,. . ;.'....<.
7"1
,,,,~
I . . . . .
........,
. . ' ~ . . . . . . . . . .
.......................
XRD. Kaolinite content was determined by
. ~>=-'-T' " :" :' :/,/.' :" :' :' : ":K'![' :,~'-:" :' :' " " " " " " " " ' " " " ' " ;--=
thermogravimetry (TG) using a Stanton Red-
:.• :':':':(-.-"'"..'W:'"_":':"
:. :.: ~:~.-,-ci. :;.>Jl"~!..7:-
;:$I" : : " " : . . . . . .
:. :-~-;~.:::: ~::' --~,':':':',:' '
i.;~:::::..,'<~<;!.:- croft TG 770 thermobalance with a sample size
I::::: i":I..:/.----<J"~'-r~2:~:fi~7":"li~7~ : : :.;.i! i-[7;i ~>:l'f ::::1!Ji :::/,/':: : :: :
L[ i[... ..,"::::::~:: .,,'::,,....... x'..-.- :
of 10mg and a heating rate of 50°C per minute.
l-t[ Z A M B I A I -"'(-T............ :::::::::::::::::::::::::::::::::"::::.'::: ,-'";'1:::,;"~= On heating, kaolinite loses 14% of its mass due
H 'l, ,:, -~i".,. I.." !!: ! ii'?::.::,: : ; .:.."......~.~.il
to dehydroxylation between 500~00°C.
H b-' ........:._._!:.__i.......
i :;.!:
U p p e r K a r o o (Jurassic)
(Sandstones and grits)
L o w e r K a r o o (Jurassic)
(Sandstones and mudstones)
I M u v a (Precambrian)
(Quartzites and meta-quartzites)
~ Precambrian B a s e m e n t
mixer) and then wet screened down to 63 #m reflected from the surface of a powdered sample
(240 mesh). The < 63 #m kaolin was processed and compared to that from a barium sulphate
as a suspension (5-10% w/v in water) using a (DIN 5033) calibration standard. Brightness was
30 mm glass hydrocyclone (Liquid-Solid Separa- also measured of a sample of the kaolin that had
tions Ltd) of conventional design (Bain & been fired to 1050°C for 2 hours.
Morgan 1983). The kaolin suspension was The viscosity (the resistance of a liquid to
pumped into the hydrocyclone at about 4 litres flow) of slurry made from kaolin was determined
per minute at a pressure of 2.5 kg cm -2 using a using a Brookfield RVF 100 low-shear visco-
small rotary pump. The hydrocyclone split the meter. Several properties were measured, using
kaolin at about 10#m (the 'cut point') into a tests adapted from English China Clays Ltd
coarse-grained product (the 'underflow') and a (ECC, undated) for paper-coating grade kaolin
fine-grained product (the 'overflow'). The over- including flowability (solids content at which a
flow was repassed to maximize the kaolinite slurry begins to flow), deflocculant demand
content and subsequent evaluation was carried (amount of deflocculant, Calgon, required to
out on the final overflow product. obtain minimum viscosity) and viscosity con-
centration (solids content of a fully deflocculated
Product evaluation kaolin slurry with a viscosity of five poise at
22°C). This last parameter, which is the most
The processed kaolin was evaluated using a significant, is equivalent to the casting concen-
range of techniques. Mineralogy was determined tration for ceramic kaolins. Viscosity measure-
by X R D and TG analysis. Particle-size distribu- ment of ceramic-grade kaolin is carried out using
tions of samples dispersed in a solution of a similar set of tests using sodium silicate as the
sodium hexametaphosphate (Calgon) were de- deflocculant.
termined with a Micromeritics X-ray Sedigraph. The kaolinite crystal morphology was exam-
Major element chemistry was determined by X- ined using an AEI transmission electron micro-
ray fluorescence using a Phillips PW 1480 X-ray scope (TEM). The samples were 'metal
fluorescence spectrophotometer. shadowed' (Pt deposited at 5°) in order to
The brightness (or 'whiteness', a qualitative determine particle thickness and aspect ratio
measurement of colour) was measured by EEL (diameter/thickness).
reflectance spectrophotometer using filtered The techniques used are appropriate for
light (4700, 4900, 5500 and 5800A) which was evaluating kaolin for both paper and ceramic
244 C.J. MITCHELL
Mineralogy of the kaolin products was determined by X-ray diffraction, thermal analysis and binocular
microscopy. All mineral contents are weight percentages. The relationship between the particle-size distribution of
the hydrocyclone feed material ( < 63/~m wet screening product) and the hydrocyclone products is distorted by the
breakdown of clay aggregates due to the high shear stresses generated during processing. Recovery is the amount
of kaolinite present in the product as a proportion of the kaolinite content of the raw material, na, not analysed.
applications, with the specific addition of will naturally orient parallel to their basal
particle-shape determination for paper-coating spacing to form a smooth, even coating. Roll-
and fired brightness for the ceramic evaluation. form kaolinite will tangle in suspension (ad-
This paper does not cover all aspects of kaolin versely affecting viscosity) and lead to an
evaluation; other tests that could be carried out irregular, uneven coating. Paper-filler grade
include modulus of rupture (tensile strength of kaolin also requires a high kaolinite content
ceramic test pieces), surface area measurement, ( > 89%), high brightness ( > 70% 4570A) and
and ceramic forming (drying shrinkage) and fine particle-size (> 30% < 2/zm). Deleterious
fired properties (changes in shrinkage, porosity, impurities include quartz and feldspar (which
specific gravity and bulk density with tempera- are abrasive and result in excessive wear in
ture gradient firing). Also the sieve residues, paper-coating equipment), iron oxides (which
from wet screening, can be examined by reduce brightness) and other clays (such as
binocular microscope and SEM to provide smectite which will drastically increase viscos-
useful information on mineral processing effi- ity).
ciency and petrogenesis of the kaolinite-bearing
rock. Ceramic-grade kaolin and feldspar
Properties of commercial kaolin and feldspar Ceramic-grade kaolin requires a high kaolinite
content ( > 8 7 % ) , a fine particle-size (>39°./o
Paper-grade kaolin < 2/zm), a high fired brightness ( > 86% 4570A)
and strictly defined rheological properties.
Paper-coating grade kaolin requires a very high Ceramic forming properties and firing proper-
kaolinite content ( > 9 3 % ) , a high brightness ties are important. Deleterious impurities in-
( > 78% 4570,~), a very fine particle-size ( > 78% clude alkalis (which affect the vitrification
< 2 #m), flat euhedral (or plate shaped) kaolinite temperature) and iron and titanium oxides
crystals and strictly defined rheological proper- (which reduce the fired brightness).
ties. This will ensure that the paper produced Ceramic-grade feldspar requires a high silica
will be smooth, glossy and have good print- and alumina content, a high K20 content and a
ability. Plate-shaped crystals are required as they low Fe203 content.
LABORATORY EVALUATION OF KAOLIN 245
Chemistry
SiO2 46.24 45-49 47-50
TiO2 0.03 0.03-1.5 0.02-0.06
A1203 36.99 36-38 34-38
Fe203 t 0.23 0.5-1.15 0.4-1.0
MnO 0.004 na na
MgO 0.03 0.13-0.25 0.2-0.3
CaO 0.17 0.04-0.07 0.02-0.10
Na20 0.07 0.08-0.14 0.1-0.15
K20 1.55 1.1-2.84 0.8-4.0
P205 0.08 na na
LOI 13.19 11.19-14.3 10-13
Total 98.58 100.00 100.00
Kaolinite content, particle-size, viscosity and chemistry are all weight percentages. Brightness values are
percentage reflectance using a BaSO4 calibration standard. Paper coating and filling kaolin are represented by one
set of chemical analyses, na, not analysed.
Fig. 4. TEM photomicrograph of kaolinite crystals, shadowed for aspect ratio determination (magnifica-
tion x 27 300).
Table 3. Properties of Chilulwe feldspar, Zambia and paper-filler, except that it does not contain
commercial feldspar product. enough kaolinite. This kaolin is therefore not
suitable for use in paper.
Chemistry Chilulwe Ceramic
feldspar feldspar
Ceramic-grade suitability
SiO2 64.32 66-67
The Chilulwe kaolin contains sufficient kaoli-
TiO2 0.01 na
A1203 19.14 18.2-18.6 nite, has a fine enough particle-size, and
Fe203t 0.04 0.03-0.1 adequate fired brightness and rheological prop-
MnO 0.003 na erties for a ceramic-grade kaolin. It also has low
MgO 0.09 Trace Na20, K20, Fe203 and TiO2 contents. This
CaO 0.03 0.1-0.15 kaolin has potential as a ceramic-grade kaolin;
Na20 0.71 3-3.3 however, further testing, including modulus of
K20 15.27 1.3-11.5 rupture and fired properties, would be required
P205 0.24 na to confirm this.
LOI 0.28 0.01-0.3
Total 100.13 100.00
Feldspar suitability
All data are weight percentages, na, not analysed.
The residue from wet screening of the kaolin is
pure K-feldspar that has potential for use as
ceramic-grade material, as it has a high bright-
K a o l i n use e v a l u a t i o n
ness and suitable chemistry.
Paper-grade suitability
Further processing
The Chilulwe kaolin has a lower kaolinite
content, a lower brightness and is coarser than The results indicate that the Chilulwe kaolin is
that required for paper-coating grade kaolin. unsuitable for use in paper applications but it
Also it contains roll-form kaolinite crystals may meet the requirements for ceramic-grade
which are not suitable for paper-coating. The kaolin. However, it is anticipated that with
kaolin has all the properties required for use as a further upgrading the properties of this kaolin
LABORATORY EVALUATION OF KAOLIN 247
J. O ' L E A R Y
From Whateley, M. K. G. & Harvey, P. K. (eds), 1994, Mineral Resource Evaluation II: 249
Methods and Case Histories, Geological Society Special Publication No. 79, 249-263.
250 J. O'LEARY
foreign investment regulations were eased in new priorities of the democratic government.
1983. La Escondida, which came on stream in The trade surplus in 1992 was US$0.7 billion
the 1990s, is the largest of the private mining with exports growing by 12% in that year
projects which together with a number of other despite a fall in the value of copper exports.
projects will take the private sector production The strength of capital inflows has continued
to almost 50% of the total in the next few years. to pose a dilemma for the authorities during
Apart from mining, the other sectors with a 1993. Resisting the upward pressure on the peso
significant state presence are oil and petro- has generated excess liquidity which the autho-
chemicals and some transport and utilities. In rities have been unable to absorb for fear of
general, however, Chile's public sector has been pushing interest rates too high. They have
drastically reduced by an aggressive privatiza- responded instead with a combination of
tion programme since 1985, in parallel with a measures to discourage capital inflows and
successful debt-reduction policy. Public finances encourage capital outflows. Chilean banks are
are in a good state due to comprehensive tax now able to use their US$ deposits to finance
reforms and strict expenditure control, with trade with third countries and Chilean pension
overall budget surpluses since 1988. The funds are now able to invest up to 1.5% of their
finances of the Central Bank are less robust assets overseas. 1991 saw a surge in Chilean
due to substantial non-performing loans ac- investment in other Latin American markets.
quired from commercial banks as part of a Nevertheless, a further 5% revaluation of the
banking rescue in the early 1980s. After several exchange rate was required in January 1992.
years of real exchange rate depreciation starting This helped to attain their target of lower
in 1982, the exchange rate strengthened in real inflation. However, the continued buoyancy of
terms last year due to the strength of capital non-copper exports suggests that for the time
inflows attracted by Chile's buoyant economy being the adverse effect of the stronger exchange
and relatively high interest rates. In order to rate has been outweighed by the effects of
alleviate upward pressure on the exchange rate investment in new capacity, attracted by the
the authorities have taken steps to liberalize combination of Chile's natural resources and
capital outflows, thus continuing the process of positive policy environment.
liberalization and deregulation of the economy,
begun in the mid-1970s. With average tariffs of Tax
only 11% and foreign trade comprising over a
quarter of GDP, the Chilean economy is one of In 1989 the transitional government of President
the most open in Latin America. In 1991 a free Aylwin and Finance Minister Alejandro Foxley,
trade agreement was signed with Mexico with temporarilly raised tax levels to assist the new
the objective of eliminating most tariffs by 1998. democracy, the first category tax was raised
Similar agreements were signed during April from 10% to 15% and VAT from 16% to 18%
1993 with the United States, Argentina, Vene- until 1994. The new democracy has, however,
zula and Colombia. The external debt burden, welcomed foreign investment and is maintaining
once one of the heaviest in Latin America, has a free market economy. Rules, laws and statutes
been reduced to one of the lowest. Chilean are used as guide-lines and exemptions are
private investors have begun to access interna- frequently negotiable to accommodate new
tional capital markets on a voluntary basis business or project expansions.
although most financing needs are satisfied
domestically. Reflecting the growing strength Foreign investment
of the private sector and Chile's prospects in the
medium-term, the market capitalization of the Decree Law No. 600, Chapter XIV and Chapter
stock market virtually doubled in US dollar XIX are the statutes governing foreign invest-
terms in 1991. ment and repatriation of funds out of Chile.
After a policy induced slowdown in 1990, Chile's debt rescheduling programme has been
designed to curb serious overheating of the enormously successful and the booming econ-
economy, growth resumed at 6.0% in 1991, omy fuelled by political reform has caused the
and at 10.4% in 1992. Private investment was value of Chilean debt to rise from about 60 cents
very strong, responding to failing interest rates at the time the Los Pelambres investment was
and inflation. The latter was 13% in 1992, down made to over 90 cents in the dollar at present. At
from 27% in 1990 and the lowest since 1986. these levels most foreign banks have chosen to
Private consumption responded to significant hold their Chilean paper in preference to
real wage growth earlier in the year and public transference to equity under Chapter XIX
spending continued to accelerate, reflecting the regulations
252 J. O'LEARY
Foreign exchange is monitored by The of short adits into the canyon wall, but these did
Central Bank which maintains the exchange not penetrate beyond the leached cap of the
rate within certain margins. Two markets are deposit.
used for currency transactions, the 'formal' and After the work of Braden, there was no
'informal' markets; liquidation of foreign cur- further activity until 1955 when two Chilean
rency and remittance of profits are through the companies, Minera Protectora and Minera Los
formal market. The foreign investment statute Pelambres staked claims in the area. The
provides for the registration of foreign capital. Protectora and Los Pelambres claims were
surveyed in 1960 and 1970 respectively.
The stock market The United Nations first became involved in
1964 with a surface examination of the property.
The stock market has been experiencing a bull This was followed by further examination by the
market over the last few years. Between 1985 Chilean Institute of Geological Investigation
and 1991 the market capitalization grew by financed by Corfo (a Chilean government
almost 800% to US$25G. Underpinning the organization) in 1967 and 1968.
bullish sentiment is the position of the Chilean Begining in 1969, a partnership arrangement
pension funds in the market. Currently all between the United Nations and Enami (the
employees must pay 14% of their earnings into Chilean government organization dedicated to
retirement funds. Between 1981 and 1990 small- and medium-scale mining) undertook
pension funds have increased at a compound serious exploration of the property including
rate of 47.4% real. These funds are allowed to diamond drilling programmes. This work devel-
invest up to 30% of their value in the equity oped a combined probable and possible ore
market. The future of the Chilean stock market reserve of 428 Mt with a grade of 0.78% copper
under these conditions looks well supported. and 0.033% molybdenum. The drilling was
Despite the large gains seen on the Chilean confined largely to the valley bottom. This
Bourse, there has been a reluctance by industry work was finished in 1971. In 1978 an interna-
to list on the market. Strict regulations imposed tional licitation for bids on the claims prompted
on companies accessing funds in this way have examination by Anaconda geologists. Anaconda
dissuaded many and others fear their stock may (then a subsidiary of Atlantic Richfield, the
become illiquid as only 50 of the 230 stocks are American oil company) was successful in the
normally actively traded. Of these stocks a select bidding and in 1979 they purchased the claims
10-15 companies make up the bulk of issues from a group of private Chilean investors.
traded each day. Many of these listings are Shortly after the acquisition, Anaconda
recent privatizations by the new democracy, improved the road to the site and began a
encouraging wide employee share ownership. diamond drilling exploration programme which
Many stocks are only part floated as owners was completed in mid-1981. Anaconda also
have used the Bourse to improve their credit formed a Chilean subsidiary, Anaconda Chile
rating rather than truly come to the market. SA, to explore and develop the property.
Chilean equity is becoming more expensive Authorization was received from the Chilean
but shares still outperformed all other invest- government to invest up to US$1.5 G should the
ment instruments in 1992. Some listed compa- project prove to be feasible. In early 1980, a
nies riding on the economic boom showed a project team was assembled to specify, supervize
30% real increase in profits during 1992. Chile's and coordinate various engineering studies and
economic stability makes Santiago's Bolsa one prepare a feasibility report. The feasibility report
of the strongest within the emerging markets in was completed in June 1983 and to that date
Latin America with a total of thirteen foreign Anaconda had spent $59 M and demonstrated a
investment funds now actively bringing in about geological reserve of over 3 Gt and grade of
US$400 M in the last two years. 0.63% Cu at a cut off grade of 0.4% Cu.
Atlantic Richfield made a strategic decision to
Cia Minera Los Pelambres current divest itself of its mining assets and Anaconda
operations Chile was bought by the Luksic Group in 1986
reportedly for about $6 M.
Project history
General features
The first documented discovery of copper
mineralization at Los Pelambres was by Wil- Location and access. Los Pelambres is situated
liam Braden, the American geologist, who noted in Choapa Province of the IV Region about
and explored the area in 1910. He drove a series 200 km from the country's capital Santiago (Fig.
HISTORY OF LOS PELAMBRES 253
* Projects
• Principal cities
• '~EI Salvador /
.t i
/ "%
I Illapel Lo~.Pelambres
/
La Serena ( i
"- EIPachon
I LOS Salamanca ": " * C h a c a y
~elambres (o
£)
Val 1
ISEI Teniente
Concepclbn, i
de ....
t
PACIFIC !
OCEAN X i
Rio i
Blanco "~ t',,
"l 7
I.
i
antiago
i
!
I
t.
El "~
Teniente I
,J
? km 100
I I
1). The deposit is located in steep mountainous are located. From Chacay to the Los Pelambres
terrain at the head waters of the Los Pelambres mine site is via a dirt road. The road climbs
river, a tributary of the Choapa River. It is close steeply to an elevation of 3000 m to the mine site,
to the border with Argentina, separated by a where canteen and accommodation for the mine
high ridge which forms the continental divide. staff are located.
The nearest town is Salamanca which has a
population of about 10000 and is 45 km to the Climate. A weather station has been operated at
west of the deposit. Salamanca is the seat of the mine area since 1980. The climate in the
local government. Access is via a paved road to region is Mediterranean with most of the
Salamanca and then on a good to moderate dirt precipitation falling in the winter months of
road to the concentrator site at Chacay. Chacay May, June, July and August. The remainder of
is at an elevation of 1600 m and this is where the the year is normally dry. At the mine site
mine offices and the bulk of the accommodation precipitation falls as snow with snowfalls in
254 J. O'LEARY
excess of 2 m having been recorded. There is an A body of breccia occurs in the central
avalanche hazard in the mine area because of the portion of the stock together with porphyry
steep terrain. The locations of the crusher and dykes. The latter are oriented N E and have
mill sites have been chosen to minimize this peripheral hydrothermal breccias containing
potential hazard and dykes have been built to high grade copper and m i n o r M o - A u - A g
protect the campsite. An avalanche control mineralization. Radiometric dating of the rocks
system has been installed. indicates an age of 9.5-10.2Ma. The intrusive
complex covers an area of 7 km 2 and is the
Seismicity. The central part of Chile has frequent principal host for mineralization. Typically the
and sometimes strong seismic activity. Within quartz-diorite is a light to medium-grey, med-
the last 100 years there have been major ium-grained, sub-equigranular rock with dis-
earthquakes, measuring up to 8.0 on the seminated biotite and biotitized hornblende.
Richter Scale as close as 100km from the Locally, a porphyritic and a fine-grained phase
project area. With this in mind the buildings in are present. To the south and east the miner-
general and the tailings dam in particular have alized zone is thought to be continuous with the
been built to withstand such seismic activity and E1 Pachon deposit, in the Republic of Argentina
a programme has been developed with the and about 7 km distant.
University of Chile for seismic monitoring. Primary minerals are chalcopyrite, pyrite,
bornite, and molybdenite with chalcocite being
Geology dominant in the enriched zone.
• . ~ e
Leached
~,one
\
3000m
j
of Enrichment
U~ 0.6 ,.2~co
o 200m
, I
holes totalling over 3000 m were drilled. In 1988 tion of the area is that the mineralization crops
RTZ Consultants, as part of an engineering out and occupies a knoll and is amenable to easy
study to examine the feasibility of mining the exploitation by open pit methods. The reserves
deposit on a small scale, examined the distribu- of this central zone have been calculated as listed
tion of values throughout the orebody and in Table 2.
concluded that there exists two higher grade
zones, the East Zone and the West Zone, which Operations
contained at a 1.2% cut-off (Fig. 2) 37 Mt at an
average grade of 1.52% Cu. Mining. Mining has commenced on the East
Subsequent to this study further data have Zone using sub-level caving. With this method
become available from both additional drill hole production levels initially were developed at
information and sampling of the development 11 m vertical intervals within the orebody. From
headings and a review of the reserve base by these levels the orebody is drilled and blasted
R T Z Consultants has estimated the mineable and the broken ore is drawn from below and
reserve, at a cut-off of 1.2%, to be 40.9 million loaded. The overlying material is induced to cave
tonnes at an average grade of 1.51% Cu. as the ore is removed and is drawn down as the
mine advances. Subsequently the sub-level
interval has been increased to 13 m. There have
Table 2. Calculated reserves of the Central Zone been some difficulties in maintaining the grade
at the predicted levels with the grade being 4%
Cut-off% Cu Millions of tonnes Grade% Cu below forecast during 1993. This has been
attributed to dilution coupled with sampling
0.8 33.2 1.03 problems. A programme is underway to study
1.0 15.4 1.18 the problem.
1.2 6.0 1.34 The mine is fully equipped to support mining
at 5000tpd using trackless equipment. Broken
Central Zone study 1992. During the construc- ore is loaded from the working face to a series of
tion period a drilling programme was carried out ore passes and dropped down to the 3000 m level
on a newly identifed area of high grade where the ore is loaded onto trucks and trucked
mineralization between the East and West 1300m through the main access level and
Zones, the so called Central Zone. The attrac- thereafter 2 k m on surface to the crusher
256 J. O'LEARY
1 Ma n Level 4 Productpon E) r l l l m n g
Fig. 3. Illustration of the sublevel caving mining method, l, main level; 2, ore pass; 3, development of new
sublevels; 4, production drilling; 5, mining (blasting and loading); 6, caved hanging wall.
stockpile (Fig. 3). As currently configured the Process. Operations at the processing facility
East Zone can support mining for five years commenced in January 1992 and by the end of
during which time mining from the larger West April 1992 had achieved at its nominal design
Zone is planned to commence. Currently, capacity of 4500tpd on a m o n t h l y basis.
consideration is being given to increasing the Following an interruption in June 1992 due to
vertical sub-level interval to 22m which will bad weather the plant achieved target produc-
reduce costs by about 10% in the present tion rate of 5000 tpd in August 1992.
underground operations. Additionally the ore- The processing facilities have been built in two
body in the Central and West Zone is under parts (Fig. 4). Crushing and grinding takes place
examination. It is anticipated that the reserve in at the Los Pelambres mine site in a location
these areas can support open pit mining at low chosen to minimize the avalanche hazard. Ore
stripping ratios with minimum pre-stripping and from the mine is fed to a 60 in x 48 in jaw
provide an additional source of ore over and crusher which in turn feeds a 30 000 t crushed ore
above that contemplated in the RTZ Consul- stockpile. A 20 ft x 11 ft SAG Mill and 12 ft x
tants study. 16 ft Ball Mill in closed circuit reduce the ore to
;RUSHING Cu - Mo CIRCUIT
t,ouiH~,l....i....lc,Ljs
1 st STAGE CLEANER
I[ TA'oLA'~GS
SCAVENGER
i
~ 2 nd STAGE CLEANER
~~- THICKENEI
Cyclone o v e r f l o w to I Mn R¢~lgh~r
Flotation Plant
3 rd -- 7 th STAGE CLEANERS
1st STAGE CtEANER
THICKENE~
DiSC FI
i 1iv i ,i ~ ..~
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.~!i-
o CONCENTRATE
Fo
BOARD
i-
EXCO
!
GERENTE GENERAL
VACANT
I FINANCE & i
ADMINISTRADOR ADMINISTRATION I
GENERAL I MANAGER
--! GUILLERMO GONSALEZ VACANT
1 I
GEOLOGY PLANT ! ENGINEERING&
ALEIANDRO FAUNES LUIS AGUIRRE SERVICES
[ VICTOR CANALES
MINING MAINTENANCE
GUSTAVO REYES JORGE RAMIREZ
with the University of Chile and will continue to CMLP concentrates are of high quality and
be standard practice. The design has incorpo- low in environmentally unacceptable elements
rated the latest technology and will allow the such as arsenic. As such it attracts no penalties
dam to survive one in one thousand year storms under the existing sales contracts. Typical full
and earthquakes. analysis is given in Table 3 below.
Other. Domestic and industrial water for the Table 3. Cia Minera Los Pelambres typical copper
mine and plant sites are being extracted from the concentrate analysis
Rio La Cascada, Rio Pelambres and Rio
Piquenes. Intakes and header tanks have been Copper (total) 35-40%
constructed to manage the supply. All sources Molybdenum (total) 0.052%
are double supply sources. Economy in the use Iron (total) 18.66%
of water has been a special concern of the project Sulphur 33.9%
and is reflected in the provision of thickeners to Zinc 0.045%
recover water for milling and concentration. Lead 0.006%
Fire water is provided at both locations in ring Bismuth < 0.002%
Nickel 0.004%
mains. Potable water is provided by liquid Arsenic 0.010%
chlorination. Antimony < 0.005%
Snow removal and avalanche control has been Aluminium 1.25%
a major concern to CMLP. The mill site is Silica 4.20%
situated under a near vertical rock face on the Magnesium 0.10%
north side of the valley. The slope is sufficiently Gold 1.5-4.0 g/t
steep so as to prevent an accumulation of snow Silver 20-80 g/t
from occurring. On the south side of the valley Mercury < 1.00 g/t
the coarse ore stockpile and a series of trenches Tellurium < 0.001%
Rhenium NP
and dykes are designed to prevent an avalanche Sodium NP
from entering the site area. Additionally the Potassium NP
Gasex avalanche control system has been Phosphorus NP
installed. This is an explosive gas system that Insoluble 11.47%
can be operated remotely and when operated is
designed to prevent a dangerous build up of NP, not present.
snow. An emergency shelter has been provided
for personnel stranded at the mine site in bad
weather. A meteorological station is manned full Environmental
time and is capable of producing the latest
satellite images and receiving up to the minute It is not mandatory at present to produce an
weather forecasts. Environmental Impact Statement before pro-
ceeding with a project such as Los Pelambres in
Management Chile. The company, however, regarded it as
responsible and prudent to examine the environ-
The CMLP management team is independent of mental consequences of the project, particularly
the partners. The organization of CMLP is in the tailings dam area and as a result an
outlined in Fig. 5. The Administrator General environmental 'audit' was commissioned. The
reports at present directly to Exco, an executive study indicated that the installation of the Los
committee, that has the power to approve Pelambres railings facility would not constitute
expenditure up to $2 M. Exco meets frequently an ecological risk to the surrounding environ-
and is composed of members from the three ment.
partners. Decisions over $ 2 M require the Additionally a technical audit was commis-
approval of the Board. The Administrator sioned which identified some environmental
General has authority to commit to expenditure risks. These relate mainly to the thickeners,
up to $100 000. pulp-line and tailings facility. These results were
discussed with the consultant and their recom-
Concentrate marketing mendations implemented.
Contracts have been agreed for the sale of all Future operations
CMLP's production through 1994. Treatment
charges are negotiated annually and the charges The feasibility study conducted by Anaconda
for 1993 reflect current world prices. (Atlantic Richfield) and presented in mid-1983
260 J. O'LEARY
0 West Zone
C Central Zone
E East Zone
MEM Current Short Term Mining Reserve
0~ 9 .
1000. _ . . . . . . tO00
90600. 90600.
90400. 90400.
)
toooo
89800
1t!Ii io;ii
89600. .. 89600
called for mining over 1000Mt tonnes of ore previously completed by the company. The
over almost 50 years at a rate of 60 000 tpd. As study examined an expansion to 15000tpd
configured presently mining will be at a rate of which Fluor consider could be supported within
5000 tpd on a reserve of 40 Mt (i.e. less than one the present general infrastructure of the opera-
twentieth of the overall reserve). tion. Secondly they examined an 8500 tpd case.
Fluor Daniel (Chile) were commissioned to This is a minimum expansion which would be
prepare a feasibility study to examine the confined only to minor capital works in the
viability of a limited expansion. This work, plant. Thirdly they examined an initial expan-
which started in October 1992 and was com- sion to 8500tpd followed immediately with an
pleted in July 1993, included an audit of work expansion to 15 000 tpd.
262 J. O'LEARY
Reserves M i n i n g operations
Year 8500 tpd option 15 000 tpd option 8500/15 000 tpd option
U/G Pit Plant Total U/G Pit Plant Total U/G Pit Plant Total
1 3.5 27.7 4.0 35.2 3.5 28.8 1.9 34.2 3.5 31.0 3.4 37.9
2 3.3 10.7 9.2 23.2 3.3 16.8 36.7 56.8 3.3 13.0 9.6 25.9
3 2.6 1.1 0.0 3.7 2.6 8.3 36.9 47.8 2.6 4.9 61.4 68.9
4 0.9 0.0 5.8 6.7 0.9 0.0 0.0 0.9 0.9 0.0 0.0 0.9
5 0.0 1.4 0.0 1.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net present value* 8.5 35.7 15.2 59.4 8.5 46.3 59.8 114.6 8.5 42.6 57.2 108.2
Table 7. Summary of operating costs. Operating costs for years 1-6 of the expansion options.
Year 8500 tpd option 15 000 tpd option 8500/15 000 option
U/G Pit Plant Adm* U/G Pit Plant ADM* U/G Pit Plant Adm*
1 5.00 0.00 3.74 2.40 5.00 0.00 3.74 2.40 5.00 0.00 3.74 2.40
2 5.00 5.85 3.57 1.78 5.00 0.00 3.74 2.40 5.00 5.85 3.57 1.78
3 5.00 5.85 3.41 1.41 5.00 4.27 3.16 0.80 5.00 7.86 3.41 1.41
4 5.00 6.59 1 . 4 1 1.42 5.00 3.62 3.16 0.80 5.00 3.64 3.16 0.80
5 5.00 3.82 3.41 1.41 5.00 2.94 3.16 0.80 5.00 2.91 3.16 0.80
6 0.00 2.74 3.41 1.41 5.00 2.45 3.16 0.80 0.00 2.37 3.16 0.80
Net present value~ 8.5 35.7 15.2 59.4 8.5 46.3 59.8 114.6 8.5 42.6 57.2 108.2
* Includes general management, operation management, administrative and finance management and engineering
and serive costs.
* With a 10% rate of discount
HISTORY OF LOS PELAMBRES 263
edited by
M.K.G. W h a t e l e y and P.K. Harvey
(University of Leicester, UK)
One notable aspect of this volume is the number of chapters that deal with
mineral resource definitions. A mineral resource is a means to an end, not an
end in itself. The aim is to develop a mine that will maximize the Net Present
Value for the shareholders. It is therefore important to define resources
sufficiently accurately to convince the banks to lend the necessary 75-80% of
the m o n e y required to develop the mine.