Reserve Estimation and Mine Planning - Kidston Gold Mine

This paper describes the general approach to ore reserve estimation and mine planning used at the Kidston Gold Mine. The geological setting and exploration is briefly summarized for background information.A geostatistical study of the deposit was carried out to determine the geological ore reserve. This was confirmed using a manual polygonal technique. Optimum pits outlined by a Lerchs-Grossman open pit design algorithm were manually smoothed allowing mineable reserves to be calculated. Mine production schedules based on kriged block grades and tonnages are continuously updated using production blasthole assays. An arithmetic mean technique of block grade estimation has proved successful to date. After milling approximately 4.9Mt of ore, the mill grade of 2.13g Au/t is only 0.5% above the mine estimate of 2.12g Au/t. The difference in contained gold between "As staked" blasthole reserves and kriged mineable reserves is 3.8%. The application of blasthole kriging as a basis for ore/waste classification in erratically mineralized areas is being evaluated. Planned future developments are briefly mentioned.