UBC Surface Mining Lecture on Sampling Theory

lOMoARcPSD|2351928
Lecture notes Surface Mining And Design - Complete
Surface Mining And Design (The University Of British Columbia)
Distributing prohibited | Downloaded by Martin January (martinjanuary@gmail.com)

lOMoARcPSD|2351928
UBC MINE 310
Surface Mining and Design

Ore Body Modeling: Reserve/ Resource Determination
Lecture Outline:
1. Introduction to Sampling Theory
2. The Regionalized Variable
3. Reserves vs Resources
Significance of Sampling Theory
Samples are what we base our entire analysis on. If our sampling is incorrect, if there is a bias, we
will introduce errors that can have very large economic implications. Remember the average
capital cost of a mine.
Sampling Stages
Each sampling exercise must establish the following: objective, population, data to collect,
precision needed, and measurement method.
Probability: Sample must be equiprobable, where each elements has the sample probability of
being selected
There are several ways of carrying out sampling:

1. Random sampling: All items have the same probability of being selected.
2. Systematic sampling: Selection of items is determined by a rule (e.g. conveyor belt sample
taken every 10 minutes)
3. Stratified sampling: Each lot is divided into parts (strata) that do not overlap (e.g geologic/
alteration).
Examples of Common Sampling Error.

 A large piece of core is split and crushed into several small samples for assaying.
 If the mineralization occurs as nuggets, rosettes or diamonds, the mineralization can go
either to the dump or to the assay lab
 Proper sample prep is crucial to prevent costly mistakes (in either underestimating or
overestimating the grades of a sample and y extending the grade of a deposit).
Objective of sampling: to obtain a representative sample of a much larger mass in order to

determine its characteristics

lOMoARcPSD|2351928
UBC MINE 310
Range of Sampling
 A few grams ( say from drill core) to several tonnes (from a bulk sample)
 Either very little material or way too much material to work with.
 The problem remains the same, how do you make sure that the sample is representative of the
whole
Example of Sample preparation:

1. Split or saw the core into two halves
2. Crush one half to minus ¼”, keep the other half
3. Blend the crushed material
4. Take the first subsample -500 g to 1 kg
5. Grind that first subsample to 100 mesh or finer
6. Blend the ground material
7. Extract a few grams for assaying
Sample Prep for Gold Sample

lOMoARcPSD|2351928
UBC MINE 310
Significance of Sample Preparation

 Common gold sampling practice is to sample one assay ton (AT) ground to 100
mesh (0.148 mm)
 At 100 mesh, one gold particle of that size weighs 0.032mg and contributes 0.032
0z/ton to the grade of the assay ton
Consider the mineable grades for gold are potentially anything >0.1 oz/ ton, what is the
implication of improper sample preparation
Regionalized Variable:
1. A variable that is distributed in space in a structured manner such that some degree
of spatial correlation exists
2. Samples that are close together, are on average more similar than samples located
far apart
3. This condition is referred to as regionalism
Example of regionalized variables: Grades, vein thickness, fracture density, metal accumulations
(grade X length).
Significance of Regionalized Variables
• Regionalized variables have a random component and a structured component

• Ordinary statistics assume that all mineral samples are independent (i.e. random).
However that is rarely the case!
• Geostatistics can identify the structured (correlated) component as well and use
them both in the analysis of mineral deposits
Regionalized Variables & support
• Regionalized variables have a support (i.e. a physical component to them)

• Support means, mass, shape, volume and orientation. Different supports will result
in different grade variability.

lOMoARcPSD|2351928
UBC MINE 310
• As the support increases (i.e. bigger sample), the variability of the sample’s grade
decreases. The effect is called smoothing.
Implication of Supports
• Samples of different size cannot be compares with one another without first being
normalized. This normalization process makes all samples of uniform support.
• Drill core samples cannot be directly compared with bulk samples or with chip
samples. Drill core of one sixe cannot be directly compared with that of another size.
They have different support!
What is a Mineral Resource?

A concentration of naturally occurring material in or on the earth’s crust in such a form
that economic extraction of a commodity from its concentration is currently or potentially
feasible.
What is Mineral Reserve?

 The quantity of mineral that is calculated to lie within given boundaries.
 It is described as total (or gross), workable, or probable working depending on the
application for certain arbitrary limits in respect of deposit thickness, depth, quality,
geological conditions and contemporary factors.
 Proven and probable reserves are other terms used in general mining practice.
Mineral Resources
Inferred resource:
• The part for which geological evidence and limited sampling can be used to
define:
• Quantity
• Grade or quality
• Assumed geologic grade and continuity
• Sampling from:

lOMoARcPSD|2351928
UBC MINE 310
• Outcrops, pits, trenches, some drilling

• Confidence is still “low”
• Cannot evaluate economically
• Indicated resource:
– Confidence is “high” and allows estimate of:
• Quantity
• Grade/Quality
• Shape
• Physical characteristics
– Estimates then used for:
• Technical analysis
• Economic analysis
• Mine planning
– At this point, drill holes are closely spaced
• Measured resource:
• Quantity, quality, shape, and physical characteristics are well established
• More detailed look at technical and economic parameters
• Data supports production planning
• Project has economic viability
• Sampling and testing confirms BOTH geological and grade continuity
• Variations in estimates will not significantly alter economic viability

lOMoARcPSD|2351928
UBC MINE 310
Exploration Inferred Indicated Measured Probable Proven

Results Resources Resources Resources Reserves Reserves
Information Insufficient information Information probable Proven

does allow for information allows allows reserves reserves
description of to declare declaration of declaration of constitute constitute
geological tonnages and tonnages and tonnages and mining assets mining assets
potential but grades with grades with grades with with lesser with greater
does not allow confidence so acceptable sufficient confidence confidence
for declaration it does not confidence so confidence so than the than any
of tonnages allow for it allows for It allows for proven other mining
and grades conversion to conversion to conversion to reserves asset
reserves probable proven
reserves reserves
COMMERCIAL VALUE
Prof. Dr. H.Z. Harraz Presentation JORC

What5 is a recovery?
August 2014
Code
16
• In mining, the percentage of valuable metal or material in the ore that is recovered first
by the mining method selected and later on by the processing and metallurgical
treatment
• It is a measure of mining or extraction efficiency
What is a Dilution?
• The contamination of ore with barren of low grade rock in mining operations resulting in
a lower grade than when originally sampled in place.
• Internal dilution is planned (a result of the mining method used or geology)
• External dilution is unplanned (a result of poor blasting control or poor ground
stability
What is a mineral inventory?

• An accounting of the mineral reserves and resources contained in known mineral
deposits including inactive mines, operating mines, and undeveloped sites.
• The mineral inventory is continually changing as deposits are mined and new
exploration information is being added

lOMoARcPSD|2351928
UBC MINE 310
Ore Reserve Estimates

• Orebody modelling and analysis provides the mining engineer with a resource estimate.
• Resource estimates do not consider the mineability of the mineralization
• The mining engineer needs to transform this resource estimate into a reserve estimate.
• This transformation is done by doing a feasibility analysis.
Mineable Reserves
• Mineable reserves are very different from the geological or drill-inferred resource.
• In open pit deposits, reserves are set by the stripping ration or the cost of delivering the
ore from the pit
• In underground deposits reserves are affected by the minimum mining width, dilution
and the amount of ore tied up in pillars

lOMoARcPSD|2351928
UBC MINE 310
Open Pit Mining Essentials: Stripping Ratios, Pit Limits & Cutoff Grade
Lecture outline:
1. Stripping Ratios
2. Pit Limits
3. Cut Off Grades
Stripping Ratios
• The stripping ratio (SR) refers to the amount of waste that must be removed for a given
quantity of ore in open pit mining.
• It is most commonly expressed as:
SR = Waste (tonnes)/ Ore (tonnes)
• A wide variety of other units are used as well. In coal we use:
SR = Overbuden (m3)/ Coal Thickness (tonnes)
Instantaneous Stripping ratio: the stripping ratio for a given push back
Overall stripping ratio: the stripping ratio for the total amount of material removed
Break-even stripping ratio: The instantaneous stripping ratio at the point where the cost of
stripping the waste exactly equals the value of the ore uncovered
Example:
It will be assumed that:

• The pit is deepened in bench height increments of 25’

lOMoARcPSD|2351928
UBC MINE 310
• The minimum pit width is 100’

• Overall slope angle is 45°
• The density of the ore and the waste is the same
• The ore is of constant grade
Original Pit
The original pit on this section consists of 6 benches and has a depth of 150’. The area of ore A 0
is:
A0 = A1 = 200 * 100 + 50 * 150 = 27,500 ft2
The area of waste AW is:
AW = 2A2 = 100 * 100 = 10,000 ft2
The overall strip ratio is:

SR overall = Aw/ Ao = 10,000/ 27,500 = 0.36
Bench 7

lOMoARcPSD|2351928
UBC MINE 310
Bench 8
Bench 9

lOMoARcPSD|2351928
UBC MINE 310
Summary
• As can be seen by this simple example, with each cut, the same amount of ore (5,000 ft2)
must pay for an increasing amount of waste.
• The overall stripping ratio is less than the instantaneous value.
• There becomes a point where the value of the ore uncovered is just equal to the associated
costs with the slice.
• This would yield the maximum pit on this section. Assume that in this case the breakeven
stripping ratio is 1.625. Then the final pit would stop with the mining of bench 9.
• Through pit deepening, the walls of the pit are moved away or ‘pushed back’ from their
original positions
• The term ‘push-back’ is used to describe the process by which the pit is deepened by one
bench
Pit Limits
• The establishment of pit limits involves the development and superposition of a geometric
surface called a pit onto the mineral inventory
• The mineable material becomes that lying within the pit boundaries
• The size and shape of the pit depends upon economic factors and design/production
constraints.
• With an increase in price, the pit would expand in size assuming all other factors remained
constant. The inverse is obvious!
• The pit at the end of mining is called the ‘final’ or ‘ultimate’ pit.
• In between the birth and death of an open-pit mine there are a series of ‘intermediate’ pits.
• Procedures for generating pit limits are based upon:
• Hand methods,
• Computer methods, and
• Computer assisted hand methods
• Within the pit are found materials of differing value. Economic criteria are applied to
assign destinations for these materials based on their value (i.e. mill, waste dump, leach
dump, stock pile etc.)
• Once the pit limits have been determined and rules established for classifying the in-pit
materials, then the ‘mineable’ ore reserves (tonnage and grade) can be calculated.

lOMoARcPSD|2351928
UBC MINE 310
Example

lOMoARcPSD|2351928
UBC MINE 310
Strip 1

lOMoARcPSD|2351928
UBC MINE 310
Break- Even SR
The breakeven SR that is strictly applied at the wall is:
SR3 = BESR = 1.9 = (Net Revenue)/(Stripping Cost)
Since the net value of 1 unit of ore is _$1.90 and the cost for 1 unit of waste is $1.00, one can
mine 1.9 units of waste to recover 1 unit of ore.

lOMoARcPSD|2351928
UBC MINE 310
Final Pit Limit
The final pit limit is where the length of waste (LW) is just equal to 1.9 times the length of ore
(LO) as measured along the midline of the mined strip.
True if:
• Cost and revenues both expressed in terms of same units (e.g. volumes)
• Density of ore and waste are the same
Break- Even Strip Ratio

Typical calculation process:
• Find Costs, Ore Grades, Recoveries
• Calculate Gross Recoverable Ore Value (Gross Revenue/tonne-ore)
• Calculate Production Costs ($/tonne-waste)
• Calculate Net Recoverable Ore Value (net revenue/tonne-ore)
• Calculate BESR:
BESR = (Net Revenue)/(Stripping Cost)
Overall Stripping Ratio

The overall stripping ratio (OSR) for the last section is calculated as:
OSR1 = Waste Area = A = 50u3 = 0.8
Ore Area B 62u3
This compared to the instantaneous SR at the pit boundary:
ISR (pit limit) = 1.9
The OSR must always be less than the ISR (pit limit)

lOMoARcPSD|2351928
UBC MINE 310
Overall Stripping Ratio

The net value for the section (assuming unit thickness) is:
NV = (Ore Area * Net Ore Value) – (Waste Area * Waste Removal Cost)
= B * $1.90 – A * $1.00
= 62 * $1.90 – 50 * $1.00
= $68
Whereas the net value is zero at the pit limit, it is positive for the overall section
Underground vs Open Pit

Compare total mining cost per tonne of each method
Surface costs are dependent on stripping ratios:
UG = Underground cost of mining per tonne of ore
OP = Open pit cost of mining per tonne or ore
SC = Open pit stripping cost per tonne of waste
SR = Break-even SR, surface vs. underground (tonnes waste/tonne ore
Equate the underground mining costs per tonne of ore to the total surface mining costs per
tonne of ore plus the required waste stripping:
UG = OP + SR * SC
Solve for the stripping ratio SR:
SR = (UG – OP)/SC
Factor Influencing the Cutoff grade

• As the Cutoff Grade increases in a given operation, cash flow also increases
• The ultimate adjustment of the dial is influenced by the available capacities in the
mining system
• The Cutoff Grade is not only a function of economic parameters but also capacities of the
mining system with respect to mining, processing and the market (refining)
What is Cutoff Grade

1. Cutoff Grade is defined as the grade that is normally used to discriminate between ore
and waste within a given deposit
2. Cutoff Grade is the dial that is used to adjust cash flow coming from the mining
operations in a given year

lOMoARcPSD|2351928
UBC MINE 310
3. The Cutoff Grade policy allows a mining company to fine tune their operation with
respect to a given financial objective
4. The Cutoff Grade dial also controls how much ore is available to the mill from a given
bench and how much of a final product to be produced in a given period
5. The overall influence of Cutoff Grade policy on the economics of an operation are
profound
Economic Objectives and the Cutoff Grade
• The cash costs related to mining, processing and refining along with the commodity
price determines the lower limit to cutoff in a given period
• If the financial objective of the company is to maximize undiscounted profits, the cutoff
grade should be lowered all the way down to process breakeven cutoff grade
• Processing every tonne of ore that pays for itself will maximize the undiscounted profits
for the operation
• If the financial objective of the company is to maximize the discounted profits that is Net
Present Value (NPV), the Cutoff Grade in a given period has to be adjusted upwards to
pay for the opportunity cost of mining lower grade ore now while the higher grades are
still available.
• The mining rate, processing rate, the ultimate rate of production for the commodity
being sold, and the production costs determine how far the cutoff grade has to be
adjusted upwards to maximize the NPV
Ultimate Pit Cutoff

• Defined as the break-even grade that equates to the cost of mining, processing and
refining to the value of the block in terms of recovered metal and the selling price.
• Any administrative overhead expense that would stop if mining were stopped must be
included in the cost calculations.
• Overhead costs should be divided between mining and processing
Processing/ Milling Cutoff
• Defined as the break-even grade that equates cost of processing and refining to the value
of the block in terms of recovered metal and selling price

lOMoARcPSD|2351928
UBC MINE 310
• Any administrative overhead expense that would stop if mining were stopped must be
included in the cost calculations
Shortcomings of the Traditional Cutoff Grade Model
• They are established to satisfy the objective of maximizing the undiscounted profits from
a given mining operation.
• They are constant unless the commodity price and costs change during the life of mine,
AND
• They do not consider grade distribution and heterogeneity of the deposit
Cutoff Optimization: Basic Concepts

• Product that is sold today is worth more than the same material that is not available to
sell until a year’s time.
• Adjusting the cut-offs of the material being processed by a plant, affects how much
material is sent to the plant, how much product is extracted from that material and
hence how much cash-flow is generated for the company.
Grade-Tonnage Curves
Grade-tonnage curves are one of the more useful tools for summarizing mineral inventory
information.
Two curves are involved:
• One is a graph of the tonnage above cutoff grade vs. cutoff grade
• One is the average grade of tonnage above cutoff vs. cutoff grade
A third graph, quantity of metal vs. cutoff grade, can derived from the other two.
Grade and tonnage data are compiled with the following assumptions:
• The deposit is correctly classified (i.e. no mixed deposit types).
• The grade and tonnage represent the complete in situ resource (production + reserves).
• The data represent grade and tonnage from a single deposit or a group of small deposits
designated as a single deposit.
• The number of deposits that define a grade/tonnage curve are a reasonably complete
representation of the resource.

lOMoARcPSD|2351928
UBC MINE 310
• The grade represents the average grade for each commodity.

• The tonnage represents the tonnage of production plus reserves and resources.
• The grade and tonnage data are based on the lowest possible cutoff grade.
Grade-tonnage Curves
Sources of error:
• Mixed geological environments.
• Poorly known geology.
• Data recording errors.
• Mixed deposit/district data.
• Mixed mining methods.
• Incomplete production and resource estimates.

lOMoARcPSD|2351928
UBC MINE 310

Mine Design Techniques
Lecture Outline
1. Economic Strategy
2. Pit Limit Design
3. Lerchs- Grossman
4. Floating Cone
Economic Strategy
 High Complex
 Uncertainty is unavoidable
 Until recently we didn’t have the tools to crunch the mass of data
Key Elements
 Successfully meet reasonable economic target in the short term
 Incorporating flexibility to adapt to the changing, unpredictable economic and
physical realities over the LOM
Economic Strategy
• Before the design of a pit can be attempted we need to establish the economic
and engineering parameters
Economic:
• Profit generated during mining
• Net present value of the various mining sequences
• Rate of return on cash flow for the overall project
• Percentage of the mineral reserved recovered
Profit Example

lOMoARcPSD|2351928
UBC MINE 310
Extraction Sequencing
Two extreme strategic views:
• The maximum rate of return strategy = high-grading
• The maximum economic reserve recovery strategy = subsidizing mining of
uneconomic material using profits from economic portions
Once we have decided on a final pit limit, we need to define an e xtraction sequence
Sequence is dictated by investing in plant and equipment along with the sequence of
revenue generation and will define the cash flow through time from which the Net
Present Value of the project is determined

lOMoARcPSD|2351928
UBC MINE 310

lOMoARcPSD|2351928
UBC MINE 310
Pit Optimization and Design
• Finding the shape of an open pit can be a challenging endeavor
• Design will vary with regard to slopes, pit economics and scheduling
parameters
• Before the pit is designed engineers must decide what parameter to design for
In establishing pit optimization and design, there are some things need to be
considered such as: Current future Markets (supply and demand) and designing for
Risk (Risk adverse versus risk neutral)
And For an economic design these aspects need to be undertaken: Simple cashflow
analysis, discounted cashflow analysis, projected accrual accounts, options pricing,
Monte Carlo analysis, discrete probability analysis, and counter point.
Designing the Open Pit
1. Choose design parameter
2. Estimate the general size of the ultimate pit
3. Introduce pushbacks (time element)
4. Check the work with the pit design model
5. Do the final design and schedule
Pit design is an iterative process!
What affects the optimal outline?
In general:
– If the price increases, the pit gets bigger.
– If the costs increase, the pit gets smaller.
– If the slopes increase, the pit gets deeper
Pit optimization is numerical process that determines the size and shape of the
ultimate pit, which will maximize the value of the mine subject to pit slope constraints.
The process of identifying the pit outline (3D) that produces the maximum economic
value given a set of engineering and economic constraints tempered with risk
tolerance

lOMoARcPSD|2351928
UBC MINE 310
Pit Optimization
The two most popular pit optimizing algorithms are: floating cone and Lerchs
grossman (widely acceptable as the better method)
Value Model
• When we have a block model then

• We can calculate the value of materials
• We can calculate the value of any outline
• The outline with the highest value is optimal
Economic Block values

• A value will be calculated for each block in a resource model using:
– Variable costs
– Metallurgical assumptions
– Commodity grade estimates
– Refining costs/penalties
– Royalties (gross value) and production taxes
– Commodity price(s)
– Material bulk densities
Floating Cone Technique

Design criteria that must be considered when determining the ultimate pit limits
include:
1. Wall Angles: these are determined based on geotechnical properties

and can vary with location and depth
2. Minimum Mining Widths: this is controlled by the mining method and
size of equipment in use. The UP has to consider MMW so that the final
pit design represents a true forecast of limits of development
3. Property Boundaries: ownership of mineral rights
4. Economic Analysis of the Value of the Material: a value is calculated for

each block of ore and waste.

lOMoARcPSD|2351928
UBC MINE 310
Floating Cone Methods use these 4 design criteria to determine the ultimate pit limit
The value of all ore within the ultimate pit limit must support the removal of of the
waste that is inside that limit
An ore block can only support the removal of the waste blocks that must be removed
in order to release it and cannot be used to offset the costs of blocks beside or below it
Floating Cone Technique
• Position an inverted cone, with the required slopes, on each block with a
positive value
• If the total value of all blocks in the cone is positive, “mine” those blocks
• Repeat these steps until no cone has a positive value
Lerchs-Grossman Algorithm
• The theory behind Lerchs Grosman is that each tonne of ore mined should pay
for its own removal
• Based on economic parameters
• Capital cost
• Operating cost
• Metal prices
• Exchange rates
• Optimization generates the optimum pit limit that produces the best cashflow
• The theory behind Lerchs Grosman is that each tonne of ore mined should pay
for its own removal
• Based on economic parameters
• Capital cost
• Operating cost
• Metal prices
• Exchange rates
• Optimization generates the optimum pit limit that produces the best cashflow

lOMoARcPSD|2351928
UBC MINE 310
Orebody Modeling: Interpolation and Estimation
Lecture outline:
 Orebody Evaluation Process
 Modeling Complexity
 By and Co-product significance
 Interpolation
What is a model? A representation of reality, likely incomplete.

What is orebody modeling?
 The process of transforming raw geological data into information and knowledge.
 The process of creating models representative of the geology observed.
Why Create Models?

• Models help us understand and make sense of complex numerical data.
• Models help us visualize complex data (Over 90% of all information we get is through our
eyes!).
• Models help us experiment and see how variations in inputs affect results.
• We gain insight!
Orebody Evaluation Process:

 Enter exploration data and verify
 Interpret the geological data (i.e. lithology)
 Analyze each mineralized domain using statistics and geostatistics
 Select an interpolation technique for grade estimation (classic or kriging) and interpolation
1. Enter Exploration data/ check:
• Define database structure (fields) and enter exploration drilling data

• Collar, assays, rock type, surveys, other stuff
• Check data for anomalies by two methods…
• Look for inconsistencies in grade ranges, hole depths, missing entries, duplicate
entries
• Look for inconsistencies by displaying data on your screen or looking and looking
for holes out of place

lOMoARcPSD|2351928
UBC MINE 310
2. Geological Interpretation
• Process of interpreting the geology (lithology)

• Requires experience
• Use all data available including structural data (faults, folds etc.)
• Depends on the deposit type as to the overall complexity of the work
• Based on the drill hole data and software, develop sections and/or plans
• Join the dots on sections using a defined control or define an envelope (grade?)
• Place a ‘skin’ over the sections to form a solid (i.e. triangulation)
• Save the interpretation for later use
3. Statistics/ Geostastics:
• Classical stats – histogram analysis, distribution types, statistical metrics, scatter lots,
variance analysis, correlograms, outlier analysis
• Geostatistics – variograms
4. Grade Interpolation
• Method to estimate the value (grade of a new point in space based on the existing
information.
• All interpolation techniques have assumptions that may or may not be valid
• Most (not all) interpolation techniques introduce so bias in the calculation

lOMoARcPSD|2351928
UBC MINE 310
Modeling Complexity – type A

 Simple geology and simple grade distribution ( coal, iron, lateritic Ni)
 Simple geology or complex grade distribution (disseminated Cu, Au)
 Low coefficient of variation
 Only minor dilution is likely to occur
 Both classical and geo-statistics likely to give similar results.
Coefficient of Variation (COV)

• The coefficient of variation is a measure of the relative dispersion and is given by…
COV = Standard Deviation/Mean
• Generally expressed as a percentage
• Use of COV lies partly in the fact that the standard deviation and the mean tend to
change together in many situations
Modeling Complexity- type B

• Low coefficient of variation in grades
• Deposits have irregular margins lending to high edge dilution
• Complex geometry makes it more difficult to apply geostatistical methods
Modeling Complexity- type C

• High COV in grades
• Deposits have both internal and external dilution problems due to patchy nature and ill-
defined mineralization envelope

lOMoARcPSD|2351928
UBC MINE 310
• Classical statistics may be best due to high margins of error
Global Estimation with Irregular Data Arrays

• Errors in Thickness
• Thickness is a regionalized variable and related error estimates rely on variogram
analysis
• Kriging also works well
• Where data is widely spaced, as in the case with surface area, the error on thickness is
given as the standard error of the mean
Estimation of Co-Products and By-Products

Definitions
• The principal product of a mine is ‘ the metal with the highest value of output’ (Jen,
1992)
• A co-product is ‘a metal with a value of at least half that of the principal product”
• A by-product is a ‘metal that has a value of less than half of that of the principal metal’
• Estimation of co- and by products is usually done in the same manner as the principal
metal
• In these cases, each estimate is made totally independent of the other with the implicit
assumption that there is no significant correlation between them…not always true as is
the case with telluride precious metals.
• Time consuming and costly particularly if there is a correlation that isn't considered
Estimation of Co-Products and By-Products
Linear Relations and Constant Ratios

• In the extreme case of a strong correlation among co-products it may be reasonable to
estimate only one variable independently and determine the others as a function of the
first

lOMoARcPSD|2351928
UBC MINE 310
• Because of the strong correlation, one variable can be estimated by the other
• Additionally interesting in this example is the fact that the rejects/pulps of the assays
don’t differ greatly from the actual assays
• In this case Au would be the principal metal and Ag is seen as a function of Au
mineralization
Equivalent grades
• An equivalent grade is one that is a combination of two or more grade variables in an
arbitrary manner to produce a single variable for estimation purposes
• Example: a Au project with accessory Ag

lOMoARcPSD|2351928
UBC MINE 310
Aueq (g/t) = Au (g/t) + k x Ag (g/t)

k is the ratio of Ag price to Au price
(Au - $1,744/oz, Ag - $34)
1/22
• Equivalent grades are used to simplify the problem by using only one variable to
estimate
• Equivalent grades are nasty! They hide things and really shouldn't’t be used
• Metal prices fluctuate significantly so k may be no longer valid and another estimation
will have to be done.
• More serious is that recoveries are not taken into account for individual metals and can
vary significantly with grade
What is Interpolation?
• Process of creating a surface based on values at isolated sample points.
• Sample points are locations where we collect data on some phenomenon and record the
spatial coordinates
• We use mathematical estimation to “guess at” what the values are “in between” those
points
• Interpolation is used because field data are expensive to collect, and can’t be collected
everywhere
Sample Points
• Also known as “control points.”
• These are points where you or someone else has collected data (attributes) for a spatial
coordinate (point)
• Any number of attributes can be collected at that point
• e.g. lithologies, alteration, structural data
Controlling Feature of Interpolation

• Interpolation only works where values are spatially dependant, or spatially autocorrelated,
that is, where nearby location tend to have similar Z values
• In the case of an orebody model, that would be grade!

lOMoARcPSD|2351928
UBC MINE 310
Interpolation Example
Elevation
• Elevation values tend to be highly spatially autocorrelated because elevation at
location (x,y) is generally a function of the surrounding locations
• Except is areas where terrain is very abrupt and precipitous, such as Patagonia,
or Yosemite
• In this case, elevation would not be autocorrelated at local (large) scale,
but still may be autocorrelated at regional (small scale)
Sampling
• Once again it all comes down to sampling…
• What we are sampling and the density of sampling
• The number of samples we want depends on statistical certainty which we want
• Our desired confidence level will determine the number of samples we need
• This is the trade-off between cost and statistical certainty
Sampling and Scale Dependency

• Sampling for interpolation depends on the scale at which you are working and the scale
dependency of the phenomenon you are studying
• In many cases interpolation will work to pick up regional trends but lose the local
variation in the process
• The density of sample points must be chosen to reflect the scale of what we are
measuring
Scale Dependency
• If we have high sample density, we will capture local variation
• If we have low density of sample points, we will lose sensitivity of local variation and
capture only regional variation
• Let’s look at this in an orebody context…
• Tell me about a porphyry deposit vs. a vein type/
Inverse Distance Weighting

• IDW weights the value of each point by its distance to the point being analyzed and
averages the values.

lOMoARcPSD|2351928
UBC MINE 310
• IDW assumes that unknown value is influenced more by nearby than far away points,
but we can control how rapid that decay is. “Influence diminishes with distance.
Kringing Method
• Semivariograms measure the strength of statistical correlation as a function of distance;
they quantify spatial autocorrelation
• Because Kriging is based on the semivariogram, it is probabilistic, while IDW is
deterministic
• Kriging associates some probability with each prediction, hence it provides not just a
surface, but some measure of the accuracy of that surface

lOMoARcPSD|2351928
UBC MINE 310

Introduction to Slope Stability Design
Required Stability Conditions of Rock Slopes
Design of Engineered Rock Samples

lOMoARcPSD|2351928
UBC MINE 310
Stability of Rock Cuts & Geological Conditions

lOMoARcPSD|2351928
UBC MINE 310
Main Components of An Open Pit Slope Design
Open Pit Slope Design

lOMoARcPSD|2351928
UBC MINE 310
Acceptability Criteria for Open Pits
Variability and Uncertainty in Rock Mechanics
Factor of Safety and risk Analysis

lOMoARcPSD|2351928
UBC MINE 310
Slope Stability Analysis in Hard Rocks
Stereographic Analysis

lOMoARcPSD|2351928
UBC MINE 310
Stereographic Projection of a Plane and its Pole
Slope Stability Analysis and Kinematic Analysis

lOMoARcPSD|2351928
UBC MINE 310
Planar failure

lOMoARcPSD|2351928
UBC MINE 310
Wedge failure
Toppling Failure

lOMoARcPSD|2351928
UBC MINE 310
Kinematic & Stereographic Analysis: Planar Failure
Kinematic & Stereographic Analysis: Wedge Failure

lOMoARcPSD|2351928
UBC MINE 310
Examples of Applications of Kinematic Analysis

UBC Surface Mining Lecture on Sampling Theory

Transféré par

Informations du document

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

UBC Surface Mining Lecture on Sampling Theory

Transféré par

Droits d'auteur :

Formats disponibles

lOMoARcPSD|2351928

Lecture notes Surface Mining And Design - Complete

Surface Mining And Design (The University Of British Columbia)

Distributing prohibited | Downloaded by Martin January (martinjanuary@gmail.com)

UBC MINE 310

Surface Mining and Design

Significance of Sampling Theory

There are several ways of carrying out sampling:

Examples of Common Sampling Error.

Objective of sampling: to obtain a representative sample of a much larger mass in order to

Distributing prohibited | Downloaded by Martin January (martinjanuary@gmail.com)

UBC MINE 310

Example of Sample preparation:

Sample Prep for Gold Sample

Distributing prohibited | Downloaded by Martin January (martinjanuary@gmail.com)

UBC MINE 310

Significance of Sample Preparation

3. This condition is referred to as regionalism

Significance of Regionalized Variables

• Regionalized variables have a random component and a structured component

Regionalized Variables & support

• Regionalized variables have a support (i.e. a physical component to them)

Distributing prohibited | Downloaded by Martin January (martinjanuary@gmail.com)

UBC MINE 310

What is a Mineral Resource?

What is Mineral Reserve?

Distributing prohibited | Downloaded by Martin January (martinjanuary@gmail.com)

UBC MINE 310

• Outcrops, pits, trenches, some drilling

Distributing prohibited | Downloaded by Martin January (martinjanuary@gmail.com)

UBC MINE 310

Exploration Inferred Indicated Measured Probable Proven

Information Insufficient information Information probable Proven

Prof. Dr. H.Z. Harraz Presentation JORC

What is a mineral inventory?

Distributing prohibited | Downloaded by Martin January (martinjanuary@gmail.com)

UBC MINE 310

Ore Reserve Estimates

Distributing prohibited | Downloaded by Martin January (martinjanuary@gmail.com)

UBC MINE 310

It will be assumed that:

Distributing prohibited | Downloaded by Martin January (martinjanuary@gmail.com)

UBC MINE 310

• The minimum pit width is 100’

The overall strip ratio is:

Distributing prohibited | Downloaded by Martin January (martinjanuary@gmail.com)

UBC MINE 310

Distributing prohibited | Downloaded by Martin January (martinjanuary@gmail.com)

UBC MINE 310

Distributing prohibited | Downloaded by Martin January (martinjanuary@gmail.com)

UBC MINE 310

Distributing prohibited | Downloaded by Martin January (martinjanuary@gmail.com)

UBC MINE 310

Distributing prohibited | Downloaded by Martin January (martinjanuary@gmail.com)

UBC MINE 310

Distributing prohibited | Downloaded by Martin January (martinjanuary@gmail.com)

UBC MINE 310

Final Pit Limit

Break- Even Strip Ratio

Overall Stripping Ratio

Distributing prohibited | Downloaded by Martin January (martinjanuary@gmail.com)

UBC MINE 310

Overall Stripping Ratio