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By C. E. Melbye

A serious problem confronted the city of Gunnison early in 1958 in that, for a few months during each spring runoff, the water supply derived from the Gunnison River became polluted to an unsafe point. The city management had the choice of building a new filter plant to replace the old unworkable one or drilling wells to develop a ground water supply. The cost of a new filter plant was estimated at $180,000 compared to $50,000 for 6 wells, pumps, and additional water lines, hence their decision to attempt the development of sufficient ground water. Six wells at 300 gpm per well were estimated as necessary to handle the peak usage of 1800 gpm, compared to only 600 gpm winter usage. Although the water table is only about 7 feet below the surface, existing private wells drilled at random locations were producing much less than 300 gpm. The problem was to find sufficient quantities from about 6 wells. Since the presence of an ancient bedrock channel was suspected, which would be expected to localize greater quantities of water, the city of Gunnison authorized a resistivity survey to investigate bedrock topography below unconsolidated gravels. Survey results were highly satisfactory and led to the preparation of a fairly detailed bedrock contour map, Fig. 1. This map was used in selection of all well sites. The city of Gunnison is situated in a flat, broad, Quaternary gravel-filled valley (terrain dips south at 20 feet per mile) at the junction of the Gunnison River and Tomichi Creek. The valley, about 2-4 miles wide, is bordered by hills of Tertiary volcanics to the northwest, Cretaceous and Jurassic sediments to the north and northeast, and pre-Cambrian granite and gneiss to the south. One previous deep test well at the west end of the city hit pre-Cambrian granite at 496 feet, which, allowing for 40 feet of surface gravels, makes the older sedimentary section 456 feet thick. This section is probably all Jurassic Morrison formation, consisting of the Saltwash sandstone overlain by the much thicker section of Brushy Basin shales and mudstones. According to the driller's logs, each well was bottomed in what is believed to be Brushy Basin shale. FIELD PROCEDURE A standard Gish-Rooney type of resistivity apparatus was employed, which used 45-volt dry batteries as a direct-current power source. Applied voltages could be selected from 45 volts to a 270-volt maximum. Copper-coated steel stakes were employed as current electrodes and porous porcelain pots as potential electrodes to avoid possible polarization effects with direct current. The expanding Wenner electrode configuration was utilized for this investigation and measurements were made at 20 40, 60, 80, and 100-foot spacings,

Jan 1, 1961

By D. F. Malott

The Michigan Dept. of State Highways makes extensive use of geophysics for subsurface surveying which would be applicable for uses in other fields. Examples of resistivity surveys are given which include a proposed large-volume excavation with suggestions for land use after excavation, subsurface evaluation for engineering design, and a subsurface survey for land appraisal. An example of a combined refraction seismic and resistivity survey is shown where the resistivity is used for outlining the unconsolidated soils, while the seismic method is used to outline bedrock and to evaluate it for rippability. A refraction seismic survey at the bottom of bridge caissons for evaluation of bedrock uniformity and a rehtive aid in assessing rock strength is reported. These past several years have been a period of unprecendented construction and commercial expansion. Vast private manufacturing complexes and government road, power, and office projects are being built or are in planning stages. Nearly everywhere, municipalities are expanding outward and upward. Many towns are developing into cities and many cities are displaying new skylines, and the building boom shows little sign of slowing down.

Jan 1, 1970

By P. G. Hallof

Only recently has the term Induced Polarization found its way into geophysical literature. Schlumberger first mentioned the possible use of the induced polarization effect in one of his early papers. Later, induced polarization was the subject of several university theses, such as Seigel's at the University of Toronto and Bliel's at the Michigan School of Technology. In addition, a group at the New Mexico School of Mining and Technobgy has done work on induced polarization. There is very little to be found in print on the subject of induced polarization. Several papers have been presented at meetings, the 1958 AIME and SEG* conventions, for instance, on laboratory measurements of the effect and theoretical considerations useful in the interpretation of field results. This paper is the first attempt to present actual field results which show the usefulness of induced polarization as a prospecting technique. There are several phenomena that can cause polarization when electrical current is passed through the ground. In a paper presented at the 1958 SEG* meetings Professor T. R. Madden of M. I. T. demonstrated that only two of these gave rise to appreciable effects. The first is a result of the membrane and diffusion effects in a sandstone that contains appre- ciable amounts of clay minerals. The unbonded charges associated with the clay mineral forma material that passes positive and negative ions with different mobilities. When current is passed through such a system for some period of time, polarization results. The second phenomenon, which gives rise to very much larger polarization effects, is the one used in the new prospecting technique. These effects are a result of the blocking action or polarization of metallic or electronic conductors in a medium of ionic solution conduction. This electrochemical polarization, called "the over-voltage effect" by electro-chemists, occurs whenever electrical current is passed through a volume of rock which contains metallic minerals such as base metal sulphides. This polarization at metallic interfaces in ionic solutions depends upon the chemical energies necessary to allow the ions to continue the flow of current by giving up or receiving an electron from the metallic surfaces. The energy stored in this reaction isanalogous to that stored when a condenser is charged. If a d. c. current flowing through such a system is interrupted, the polarization can be detected as a small, decaying current that flows after the applied current is discontinued. The decaying potential measured is a result of the current flow caused by charges returning to their equilibrium positions from the positions they assumed under the applied potential field. Because of the polarization, there is an excess of change at each metallic interface. There is an alternate method of measurement of the induced polarization effect. The electrical

Jan 1, 1961

By E. H. T. Whitten

Fundamental principles of trend surface analysis are briefly reviewed. Recent analyses of several granite masses illustrate the method of estimating the quantitative regional composition and also variation trends. Mineralogi-cal, bulk chemical, and other quantitative variates can be employed. Such results should improve gravimetric surveys (etc.) relying on correction terms based upon estimated rock composition. For the first time realistic estimates of the mean composition of rock bodies can be made with the aid of trend components. Deviation maps hold promise for delimitation of disseminated mineralized areas. Deviations comprise residual "anomalies" after removal of trend components. In petrogenetic work such deviations have been shown to reflect local influences (e.g., contamination of magma by assimilation of xenoliths or country rocks of the envelope). Similarly, mineralization should be reflected as deviations standing out from background trends. Actual examples are given. Present results largely involved projection of data onto a horizontal plane, but if sufficient data are available use of three spatial coordinates increases accuracy for prediction in "unexposed" areas. Regression analysis shows that statistical correlations between variates for regionally distributed specimens are often strong (particularly with percentage data). Hence, in preliminary surveys more easily determined variates may sometimes be employed to gain first estimates of the distribution of components more economically significant. The sampling plan is of paramount importance. Unless a suitable sampling plan is devised and adhered to rigorously during collection of the samples, all subsequent analysis is liable to strong bias and to yield spurious estimates of the truth. For a wide variety of purposes it is becoming necessary to assess the quantitative composition and variability of rock masses and mineralized zones of various types. In petrology and petrography this is something of a break with tradition, because virtually all descriptions heretofore have been qualitative. Although vast amounts of qualitative data have been compiled, little is known about the quantitative behavior of rock components. However, if variability of rocks could be understood and expressed with sufficient accuracy, there would be considerable advantage to both economic and petrogenetic problems. For example, if, on the basis of a limited series of observations, the three-dimensional geometry of a disseminated orebody (or ore-bearing formation) could be predicted accurately, it would be possible to extrapolate with confidence the structure into unexposed areas. The following example based upon the geometry of an igneous cone sheet illustrates the point. The significant rock-unit gives outcrops at a number of points on the exposed surface ABCD (Fig. 1A). Study of n exposures may enable a geologist to predict that the rock-unit is circular in form and thus indicate where the unit can be expected in unexposed terrain. Such observations are made at sites with u, v coordinates, but, if subsurface information is available at sites with uvw coordinates, it will eventually become possible to predict accurately the three-dimensional form of the rock mass. Geologic rock masses or mineral deposits are not generally as regular and symmetrical in geometric form as the body illustrated in Fig. 1A. However, even where the broad limits of a major rock mass are known, a more acute problem arises in attempting to obtain detailed quantitative estimates of its internal variability; it is difficult to predict the variability of a mass from a limited number of observa-

Jan 1, 1961

By Christopher Phillips

In light of recent events in the mining industry, there has been an increasing demand for technology to detect underground voids and abandoned mine workings. This paper summarizes the use of geophysical methods for this application. Geophysical methods have been successfully employed in the detection of underground voids in several disciplines, including foundation analysis, road and infrastructure analysis, and darn analysis, but is not yet being widely employed by the mining industry. The principal reasons are that the combination of the complex geological setting of a mine, mine design, surface conditions, and improper choice of geophysical method often makes the task of locating abandoned mine workings with geophysics a frustrating, time consuming, and often unsuccessful venture. While there are several geophysical methods that have been demonstrated for the successful detection of abandoned mine workings, there is still no 'silver bullet' to solve the problem in every case. The choice of geophysical method to detect abandoned mine workings should be made on a site specific, and sometimes target specific, level. This paper reviews current methods, and introduces recently developed methods, for the detection of underground voids and abandoned mine workings.

Jan 1, 2003

Interest in those physical properties of minerals which might be used to good effect in prospecting is not new. Early in the nineteenth century attempts were made in th'e Cornish mines to measure the natural electric potentials set up by chemical changes proceeding in the lodes. The distortion of the earth's magnetic field by bodies of strongly magnetic iron ore received early recognition in Sweden. Treasure-finders, working on the principle of electrical induction, appear to have been invented about eighty years ago, though were probably not then applied to mineral exploration. By the end of the nineteenth century Eotvos, a Hungarian physicist, had constructed a highly sensitive type of torsion balance capable of measuring the minute distortions in the earth's field of gravitation resulting from variations in the density of the materials composing the crust. During the first decade of this century he demonstrated its value in tracing rock-salt deposits in virtue of their low density compared with the surrounding rocks. Geophysical prospecting began to be recognised as having a very definite value and its development gathered momentum. Its great expansion took place after the 1914-18 war, when its value in oil exploration was amply demonstrated, and this expansion has continued to the present time and shows no signs of abating.Divisions of Applied Geophysics.The four main divisions of applied geophysics are electrical, magnetic gravitational and seismic. With the importance of ores of radio-active metals, one might add to these a radio-active division. The first two are more important to the field of mining, but techniques based on gravitational attraction have their uses in particular cases. Seismic methods are not generally suited to the exploration of metallic ores, but have proved of enormous value in the search for petroleum. With vast quantities of oil as the prize, more money has been lavished on the deve10pment and practice of these methods than on all the others put together.Geophysical Prospecting Methods.Geophysical prospecting methods may be used to detect a mineral deposit directly in virtue of differences in the intensity of some physical attribute common to it and the enclosing country rock. Examples of this are the detection of rock-salt by gravity measurements, or of iron ore by magnetic methods. Of much wider application, however, is the indireot approach in which the aim is to determine, by geophysical means, the geological structures controlling the disposition of mineral deposits. These structures may be partly known from geological work, in which case geophysical methods are useful adjuncts. Where, because of an 'unbroken cover of overburden, no useful geological information presents itself, scout drilling or geophysical prospecting are the only alternatives. Overburden is here intended to mean any covering material not, involved in the structures controlling the mineral deposits. Prospecting for petroleum amounts to the detecting of favourable reservoir structures, and as the chief types of such are the same the world over...

Jan 1, 1950

By R. J. Pruett

The Georgia kaolin district is the world’s largest producer of kaolin. Georgia production tripled from 2.87 Mt (3.17 million st) in 1968 to8.35 Mt (9.2 million st) in 1998. Development of the Georgia kaolin industry can be traced to the identification of the mineral resource, the adoption of innovative process technologies and the creation of markets for kaolin. Georgia kaolin is an abundant and high-quality resource that shows a range of advantageous properties. Technical developments in wet processing, delamination and calcination allowed production of high-value products. The use of kaolin pigments in the paper industry provided a market that absorbed the rapid growth in kaolin production.

Jan 1, 2000

By T N. Little

The author contends that geoscience is presently under-utilised in the rock fragmentation by blasting process. Before we can set standards in this area, the following is required: mine geologists need to gain a better understanding of the blasting process and the blasting team needs to obtain a better appreciation of geology. Both groups need to be informed of what can be done to improve blasting outcomes, why it is necessary and how it can be achieved. By working closely together, both the geoscience toolkits and blasting expertise can be applied and focused on priority blast sensitive issues, with potential to improve mine economics and safety. Finally, and ideally, mine geologists need to take a leadership role in raw rock mass data collection and data management, and invited to take an active role in rock mass related behaviour data collection, integration and presentation.This paper attempts to provide insight into all these prerequisites for setting a new standard for collaboration and mutual learning in this strategic opportunity area. The potential for blasting to leverage downstream processes is highlighted. Blasting objectives and blast design principles are introduced along with the required rock mass related inputs. Some hazardous geological materials and environmental conditions are described, along with how they can affect operational complexity.Four case examples are used to illustrate the need for closer liaison between geology and blasting professionals. The first related to grade control blasting, aims to demonstrate how a blasting geology approach can add significant value. Case example two demonstrates how geological models and bench face analysis can assist with fragment control. The third and fourth case examples involve an overview of two case studies where timely geological and geotechnical knowledge input and intervention into blasting activities may have reduced losses due to blast initiated open pit slope collapses.CITATION:Little, T N, 2017. Geoscience input into blasting operations – let’s set a new standard, in Proceedings Tenth International Mining Geology Conference 2017, pp 375–384 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By R. Cao

Geostatistics was initially developed in the mining sector, but has been extended to other geoscience applications, including forestry, environmental science, soil science, and petroleum science and engineering. This paper presents methods, workflows, and pitfalls in using geostatistics for hydrocarbon resource modelling and evaluation. Examples are presented of indicator variogram analysis of categorical variables, lithofacies modelling by sequential indicator simulation and hierarchical workflow, porosity modelling by kriging and stochastic simulation, collocated cokriging for integrating seismic data, and collocated cosimulation for modelling porosity and permeability relationships. These methods together form a systematic approach that can be effectively used for modelling natural resources.

Jan 1, 2014

By C. Özgen Karacan

The formation of the gas emission zone in longwall mining and the potential amount of gas in this zone are factors of local geology and spatial variability within this geology. Therefore, geostatistical methods can be used for modeling and prediction of gas amounts and for assessing its uncertainty in the gas emission zone of longwall mines. This study used core data obtained from 64 exploration boreholes drilled from the surface to the bottom of the Pittsburgh coal seam in a mining district in the Northern Appalachian basin. After identifying important coal layers for the gas emission zone, semivariogram modeling was conducted for different coal seams to define the distribution and continuity of various attributes. Sequential simulations were performed for stochastic assessment of these attributes to calculate gas-in-place (GIP) in each coal seam. GIP calculations for coals of various gas emissions zones were combined and ranked for their cumulative distribution function to find GIP in the caved zone and in the fractured zone at the 5%, 50%, and 95% quantiles. Fifty percent quantile results were later used to isolate a panel from the whole area and create a mosaic representation corresponding to the daily advance rate of the longwall face. This approach helped to estimate the daily emissions of this panel from the caved zone and from the fractured zone. Results showed that gas-in-place in the Pittsburgh coal seam, in the caved zone, and in the fractured zone showed spatial correlations that could be modeled and estimated using geostatistical methods. This study showed that gas-in- place volumes in the study area may be as high as 12.3 Bscf and as much as 3.5 MMscf per acre of mining.

Jan 1, 2012

Knowledge of true block grades is obtained from a mathematical model of an orebody, simulated with sample grades normally distributed and spatially correlated according io a spherical semi-variogram model.The superiority of kriging to the polygonal method of estimation is demonstrated on this modelled deposit by comparing the true values with the kriged and polygonal estimates obtained from sampling the deposit. Finally, selection of blocks of the deposit on the basis of the estimated values, shows that if kriging is used, what is predicted is largely mined, whilst if the polygonal method is used large biases can occur depending on the position of the cut-off grade.

Jan 1, 1978

During a programme to determine the suitability of the UK site for deep disposal of radioactive wastes, geostatistical methods were used to characterise rock heterogeneity on the basis of seismic and wireline acoustic-impedance data. The data were analysed to yield semi-variogram models that quantified the three-dimensional spatial heterogeneity of acoustic impedance. These models were reconciled with geological interpretations of the area and used to generate simulations of acoustic impedance, with wireline acoustic impedance as conditioning data. The three-dimensional simulated images were compared with actual seismic acoustic impedance. The variography confirmed a vertical zoning effect in the Borrowdale Volcanics, showing that it is caused by preferential clusters of high acoustic impedance values corresponding to regions of relatively low porosity. The method provided realistic three-dimensional models from sparse, one-dimensional wireline data

Jun 19, 1905

By J. M. Ortiz

Mineral resource evaluation requires defining geological domains that differentiate the types of mineralogy, alteration and lithology. Usual practice is to consider the domain boundaries as hard, i.e. data from across the boundaries are disregarded when estimating the grades within a given domain. This practice may hinder the quality of the estimates when a significant spatial correlation of the grades exists across the domain boundaries. In this paper, several geostatistical methodologies to handle soft geological boundaries are compared through a case study on a copper mine in Chile. The estimation methods considered are: ordinary kriging using hard boundaries between geological domains; ordinary kriging omitting the geological boundaries; traditional and standardized ordinary cokriging of the grades assayed in different domains; ordinary kriging within dilated geological domains, that is, incorporating samples from adjacent domains up to a given radius from the boundary of the domain being considered. The estimations are performed using a set of exploration data (drill hole samples) and are validated using a set of production data (blast hole samples collected for grade control). Results indicate that kriging with dilated domains performs better than ordinary kriging using hard boundaries or no boundaries and better than the ordinary cokriging approaches. It therefore appears as a simple alternative to global kriging (without considering the geological domains) and allows accounting for changes in the grade average, dispersion and spatial continuity with the geological characteristics of the deposit, via the use of grade variograms proper to each geological domain. The maximal distance for searching samples from adjacent domains should be chosen according to the spatial correlation of the grades across the domain boundaries, or via a cross-validation at an early stage of the mine or a jack-knife if production data are available. Keywords: Kriging; cokriging; soft boundaries; hard boundaries; geological control; geological domains.

Jan 1, 2006

In the estimation of reserves the known values of the variables of interest from surrounding drill holes are used to compute or estimate the unknown value of the orebody over a given region or at a given point of interest. The classical means of doing this are: 1. The Polygonal Method û where the region is divided into polygons centred on bore holes, each variable is then assumed to have constant value over each polygon. 2. Inverse distance methods, where the variable is assumed to vary linearly with the distance between the known values of the drill holes. 3. Inverse distance squared method û a quadratic variation is assumed for the variables between the bore holes.

Jan 1, 1983

By Jennifer Riefenberg

Ground control hazards, coal quality, ore reserve estimation, and pollution modeling seem unrelated topics from most mining perspectives. However, geostatistical methods can be used to characterize each of these, and more topics. Exploratory drill core data, and continued drilling and field measurements, can provide a wealth of information related to each of the above areas and are often severely underutilized. Recent studies have led to the development of the Multiple Parameter Mapping (MPM) technology, which utilizes geostatistics and other numerical modeling methods, to generate a "hazard index" map, often from exploratory drill core data. This mapping has been presented for ground control hazards relating roof quality, floor quality, numerically modelled stresses due to mining geometry, and geologic features. A review of the MPM method, future directions with the MPM, and a discussion of using these and other geostatistical methods to quantify coal quality, ore reserve estimation, and pollutant modeling are presented in this paper.

Jan 1, 1996

By P Landeros, D Benado, J Cornejo, A Pinochet, C Caviedes

In 2005, El Teniente mine began preconditioning the primary rock mass by hydraulic fracturing (HF). The major perceived benefits of this process are a decrease in the magnitude of the expected maximum seismic event and improved cave propagation. In addition, HF has resulted in new information on the propagation pressures of each fracture. Previous studies have attempted to relate propagation pressure to minor principal stress or confining stress.Considering the spatial continuity of propagation pressure and the significant quantity of collected data since the incorporation of the HF technique, minimum requirements for geostatistical modelling have been reached, permitting robust estimates inside the representative volume with acceptable errors (Cornejo, Muñoz and Rojas, 2012; Cornejo and Landeros, 2013). These results are then used to identify zones with higher magnitudes, which are mostly related to more complex geotechnical zones (intrusive and major faults) and caving singularities, making it possible to estimate the spatial extension of these zones.Finally, these results are integrated with other geomechanics aspects to support risk analysis of the mining plan.CITATION:Cornejo, J, Landeros, P, Benado, D, Caviedes, C and Pinochet, A, 2016. Geostatistical modelling of hydraulic fracturing pressures at El Teniente Mine, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 183–190 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

A case study for the application of a novel geostatistical technique for resource estimation of a narrow steeply dipping, gold-silver mineralized quartz vein deposit is presented. The technique is novel in two respects. First, mineral grades are kriged directly rather via the accumulation method more often applied to vein deposits and, second, a modified 2D ordinary kriging algorithm is used that allows the calculation of a single grade and variance for irregular shaped blocks of varying sizes. The objective of this investigation was to evaluate the suitability of this novel geostatistical technique for resource estimation of the Poura mine deposit and, if appropriate, to lay a firm foundation for future geostatistical work at the mine. The reserve estimation concentrated on the remnant ore blocks and pillars in both underground and surface workings. The data, which was collected in 2D coordinates with grade and vein thickness values, was first analyzed statistically and used to compute experimental semi-variograms. Appropriate semi- variogram models were fitted and various aspects of the estimation technique were evaluated using cross-validation error analysis, with acceptable results. A block kriging computer program called Krige2D was developed to implement the modified 2D kriging algorithm and calculations. Production data were not available to evaluate the computed block resources, but they were compared with a previous resource data determined using an arithmetic approach. The geostatistical technique estimated slightly higher grades but lower overall tonnages as compared to the earlier arithmetic estimates.

Feb 1, 2004

By P. K. Frempong, S. D. Butt

"A case study for the application of a novel geostatistical technique for resource estimation of a narrow steeply dipping, gold-silver mineralized quartz vein deposit is presented. The technique is novel in two respects. First, mineral grades are kriged directly rather via the accumulation method more often applied to vein deposits and, second, a modified 2D ordinary kriging algorithm is used that allows the calculation of a single grade and variance for irregular shaped blocks of varying sizes. The objective of this investigation was to evaluate the suitability of this novel geostatistical technique for resource estimation of the Poura mine deposit and, if appropriate, to lay a firm foundation for future geostatistical work at the mine.The reserve estimation concentrated on the remnant ore blocks and pillars in both underground and surface workings. The data, which was collected in 2D coordinates with grade and vein thickness values, was first analyzed statistically and used to compute experimental semi-variograms. Appropriate semivariogram models were fitted and various aspects of the estimation technique were evaluated using cross-validation error analysis, with acceptable results. A block kriging computer program called Krige2D was developed to implement the modified 2D kriging algorithm and calculations. Production data were not available to evaluate the computed block resources, but they were compared with a previous resource data determined using an arithmetic approach. The geostatistical technique estimated slightly higher grades but lower overall tonnages as compared to the earlier arithmetic estimates."

Jan 1, 2004

By J. A. McLennan

Nickel laterite deposits are typically formed from tropically weathered mafic-ultramafic complexes. The resulting nickel concentration is found within soil horizons and is mineable with regular dozer units. At the time of mining, digging elevations are needed at selective mining units (SMUs). Moreover, for mine planning, the costs due to dilution and lost ore require mining elevations to be specified. A conditional simulation approach is used to calculate ?optimum? SMU mining elevations. Multiple realizations of the ore base surface are simulated. For a single bottom surface realization, dilution and lost ore costs are calculated over the entire vertical extent of each SMU. The optimum mining elevation is the elevation where the lowest summed cost of ?accepting dilution? and ?wasting ore? occurs. The reported SMU dilution is the cost of mining the volume of waste located below the bottom surface and above the optimum mining elevation and the reported SMU lost ore is the cost of not mining the volume of ore above the bottom surface and below the optimum mining elevation. For all ore bottom surface realizations, optimum SMU mining elevations and their associated dilution and lost ore costs are calculated and compiled to represent production uncertainty.

Apr 1, 2005

By J. A. McLennan, J. M. Ortiz

Nickel laterite deposits are typically formed from tropically weathered mafic-to-ultramafic complexes. The resulting nickel concentration is found within soil horizons and is mineable with regular dozer units. At the time of mining, digging elevations are needed at selective mining units (SMUs) or representative dozer regions (RDRs). Moreover, for mine planning, the costs due to dilution and lost ore require mining elevations to be specified. A conditional simulation approach is used to calculate “optimum” RDR mining elevations. Multiple realizations of the ore base surface are simulated. For a single bottom surface realization, dilution and lost ore costs are calculated over the entire vertical extent of each RDR. The optimum mining elevation is the elevation where the lowest summed cost of “accepting dilution” and “wasting ore” occurs. The reported RDR dilution is the cost of mining the volume of waste located below the bottom surface and above the optimum mining elevation. The reported RDR lost ore is the cost of not mining the volume of ore above the bottom surface and below the optimum mining elevation. For all ore bottom surface realizations, optimum RDR mining elevations and their associated dilution and lost ore costs are calculated and compiled to represent production uncertainty.

Jan 1, 2006