Resource Model Uncertainty at the Yandi Channel Iron Deposits, Western Australia ù An Application of Multiple-Point Simulation for Orebody Geology

The development of mineral resources is based on a spatial model of the orebody that is only partly known from exploration drilling and associated geological interpretations. As a result, orebody models generated from the available information are uncertain and may require the use of stochastic conditional simulation techniques. Multiple-point methods have been developed for petroleum reservoir modelling, enabling reproduction of complex geological geometries. This paper considers a multiple-point approach to capture the uncertainty of the lithological model. The implementation of the method at the Yandi channel iron ore deposit in Western Australia and performance characteristics are discussed. The uncertain lithological model translates into considerable grade-tonnage uncertainty.