Cost Benefit Analysis Of Ore Reserve Estimation Methods

The financial evaluation of an orebody uses estimates for the grade of ore produced during each year for the life of the mine. Assay data from the Dolphin Scheelite Mine is used to estimate grades by the Polygonal, Ellipsoidal and Disjunctive Kriging Methods. The results are compared with simulated production data, to show the existence of a bias associated with each method. The affect of bias on the financial evaluation of a theoretical model ia assessed.