Capping and Outlier Restriction: State-of-Art

Erratic high grade values are as common in Nature as they are a source of problems for resource estimators. In some highly erratic metal deposits, less than 2% of the drilling samples can represent more than 10% of the total metal in the blocks and they are associated with a high risk level. There is a risk of local overestimation but also of global overestimation, with the high grades being projected over too large a volume. Capping or restriction of these outliers control is being widely used in the industry and commonly applied in resource estimation for the last three decades. The primary purpose of this paper is to present and describe the most applied methodologies for restricting the extrapolation of high grade samples and discuss the results based on a theoretical simulated model. Additionally, this paper demonstrates the economical impact associated with the high-grade and the project risk profile associated with each method.