Ore reserve estimation at the Enterprise Gold Mine, Pine Creek, Northern Territory, Australia. Part 1: structural and variogram analysis

"The Pine Creek gold mineralization is associated with saddle reefs and quartz and quartz sulphide veining within the Enterprise Anticline. The anticlinal structure is complex and the mineralization was considered prior to development to be dominantly strata controlled. Gold grades vary up to 160 gin 1.5 m core samples with coefficients of variation in excess of three.The estimation of ore reserves for such a deposit must account for both the geological complexity and the extreme variability of gold grade.This paper describes the structural and variogram analysis of the gold grades and demonstrates the importance of incorporating the geological model in such an analysis. Variogram interpretation is greatly improved and greater insights into the finer geological structure areprovided. Part 2ofthis work presents the application of multigaussian kriging to reserve estimation for deposits with highly variable grade and which consequently demand highly selective mining operations. IntroductionThe Enterprise Gold Mine is situated some 220 km southeast of Darwin in Australia's tropical north. Gold is believed to have been discovered there in 1869 during the construction of the overland telegraph line.From 1894to 1915, some 75 000 ounces of gold were produced from 121 000 tonnes mined mainly by Chinese leaseholders. From 1906 to 1915, government-sponsored drilling led to the sinking of the Enterprise Shaft to 79 m and several drives were developed. Mining ceased because of war.Since late 1980, Goldfields Exploration Pty. Ltd. had explored on several mining tenements near Pine Creek under joint venture with the title holders, Enterprise Mines NL. This work culminated in the development of the current mine which opened on October 29, 1985.Feasibility studies to determine the economic viability of mining were based on ore reserves generated by project geologists using a sectional polygonal approach tuned to the interpreted geological control of the mineralization.The study motivating this two-part paper covers are-estimation of the recoverable reserve s using the geostatistical approach of multigaussian kriging developed at Stanford University, (Verly, 1984)."