Mining Dilution In Geostatistical Ore Reserve Estimation

The importance of factoring mining dilution into the estimation of ore reserves in an open pit mine is discussed. An example that relates the issue of mining dilution to the size of the smallest volumes that can be mined selectively is given. The relationship between the size of the selective mining units (SMUs) and the variance of their average grade is presented. The concept of variance reduction and its use in factoring mining dilution into geostatistical ore reserve estimation is described. An approach to estimate a variance reduction factor by way of conditional simulation is introduced.