Estimating Mineral Inventories Or Reserves

INTRODUCTION TO MINERAL INVENTORY The first explanations to be made must answer the questions: What is a mineral inventory, and how is a mineral inventory different from an ore reserve? The term mineral inventory is a relatively new designation-born of the computer age and grown to common usage with the development of computer techniques for extending drill-hole sample values to regularly gridded data blocks representing in situ mineral values. The term has been generally accepted by geologists and engineers because it has a precise meaning which avoids many of the ambiguities of ore reserve. A mineral inventory is an estimated inventory of mineral in place and is usually achieved by dividing the deposit into regularly spaced gridded blocks to which are assigned estimated values using various extension techniques. A mineral inventory makes no presumptions about the mineability of the blocks or their cutoff grade. Such parameters are implied with the use of the term ore reserve. Ore has a specific definition (see Chapter 1) and ore reserve must reflect that definition and thus has economic and mining constraints. An ore reserve will be different under different economic and mining conditions and is subject to reclassification by many factors. The term mineral inventory avoids all such ambiguities. A mineral inventory estimate may be good or poor according to how much is known about the deposit, how extensively it has been sampled, and what techniques have been employed to assign estimated grade to the blocks. Such an inventory, however, does not change with time, economic conditions, or mining technology, but only with new and better data and methods. Thus, the mineral inventory is an excellent designation for describing mineral value distribution within a deposit's geological setting. The techniques for assigning values and tonnage to mineral blocks or panels are the subjects of this chapter. Whether a summation of the blocks be called a mineral inventory or mineral reserve is not important. Many conventional methods for computing reserves of minerals refer to the methods in terms of ore reserve calculations. OBJECTIVES OF MINERAL INVENTORY OR RESERVES Mineral inventories are computed for the purpose of determining the quantity, the quality or value, and the spatial distribution of potentially economic minerals within the earth. Such computations are made at all stages in the life of a mineral extraction process, from the early exploration phase to the final year in the life of a mine. To quote Popoff (1966, p. 2), "They are the most responsible and irreplaceable tasks in the valuation of a mineral deposit. Efficiency in extraction and productiveness is impossible without accurate reserve computations." The accuracy of estimate required for each of the three parameters of quantity, value, and location is dependent upon the objective for which the reserve estimate is being made. Again quoting Popoff (1966, p. 2): Reserves are computed to determine the extent of exploration and development; distribution of values; annual output; probable and possible productive life of the mine; method of extraction and plan design; improvements in extraction, treatment, and processing; and requirements for capital, equipment, labor, power, and materials. Such computations are used to assist development