Implementation Of Indicator Kriging At Newmont Gold Company

Newmont Gold Company is the largest producer of gold in North America. Accurate resource estimates are critical to planning the mining in a year of over 90,000,000 t (100,000,000 tons) of mill, leach and waste grade material, from which over 47 t (1,500,000 oz) of gold are recovered. Resource estimates are updated frequently to take advantage of new drilling, improved geologic understanding and additional production reconciliations. At Newmont Gold, indicator kriging is the primary method being used to create resource estimates. Indicator kriging (IK) is a well accepted method of resource estimation; however, many details of the IK process which are critical to producing a useful resource estimate have not been well documented. An IK model must have several characteristics in order to be a useful resource estimate: the model must take into account geologic features of the mineralization; model creation cannot require too .much time; the model must accurately reflect the effects of selective mining; the model must be stored in an easily accessible format; and the model must be useable with a variety of cutoff grades. This paper will show how Newmont Gold implements the IK process in order to achieve these goals.