LU Decomposition Conditional Simulations For Exploration Strategy Evaluations

The method of conditional simulation is easily implemented on the personal computer when the LU decomposition algorithm of Davis (1987) is employed. This algorithm is fairly compact, yet can generate moderate-sized simulations in a few minutes on a 80286 or 80386-based personal computer. The application of conditional simulation presented here is to generate possible ore inventories from a limited amount of exploration sampling. The simulations can then he examined to decide if the potential inventories are sufficiently attractive to proceed with further exploration. An example showing one application of this approach is presented.