Reserve Calculations: An Adventure In Geo-Fantasy?

Many recent projects have been developed and mined based upon imaginary reserves. Imaginary or "geo-fantasy" reserves have cost many companies millions of dollars. The significant and varied technological advances in the mining arena have done little to curb reserve calculation problems. These advances may have served to increase the prevalence of reserve problems by putting more tools in the hands of personnel not properly trained or experienced in reserve estimation. This paper will discuss potential problems related to calculating reserves, which include: SAMPLING ERRORS -obtaining a representative sample. -Decay analysis of wet RC drilling -Bias introduced by sample preparation. -Assay bias; Coarse gold. -Specific gravity samples. GEOLOGICAL ERRORS -structural boundary definition. -Separation of high grade and low grade zones. -Incorrect continuity assumptions MODELING ERRORS -Too much influence of high grade samples. -Improper method of calculation. -Assumed range of influence. -Errors in the data. ENGINEERING ERRORS -Inaccurate assumptions. -Inadequate metallurgical testing. -Designed bottlenecks.