Ore Estimation Problems in an Erratically Mineralized Orebody

The Similkameen Division of Newmont Mines Limited operates a low-grade open-pit copper mine in southern British Columbia. The copper mineralization is extremely erratic.As a result, over seven years of operation, ore control methods have evolved from standard flagging based on blast-hole assays, through an in-pit grab sampling system, to the present method of mining to computer-determined ore-waste boundaries based on geostatistics. These improved ore control methods have resulted in a gain of at least 25% on ore tonnage miffed, at the same grade as obtained using earlier techniques. At the same time, geostatistical ore reserve estimates are now within 7% of milled ore tonnage and grade on a yearly basis, whereas the original polygon ore reserves under-estimated mineable ore tonnage by 15% to 45% and over-estimated grade by about 20%. The author discusses why traditional ore estimation methods give poor results in erratically mineralized orebodies and describes the geostatistical approach to the problem.