Francis Mann et al,

This is a very interesting discussion, with several interesting and valid points of view. I aggree with most of them. Here are some additional comments from a mining geologist.. As one of my professors (F.F Osborne, petrology) repeated a few times when he felt that we were slow to understand : "Rocks are geological bodies that occur in the field." Ore bodies also only occur in the field, and they also three dimensions and limits, all to be determined along with their composition. I wish all professors of mining geostatistics used similar statements in their lectures occasionally. Geology is a considerable part of determining the limits of orebodies!

Actually, I feel we are going.backwards. In the past few years, thanks to NI 43-101 in Canada (and some other similar texts in other countries), and to loose implementation, we find that less and less discrite information on drill hole spacing(s) and regularity (or absence thereof) is provided. Feasibility and pre-feasibility studies are as bad as scoping studies in this regard. This is a major information shortcoming not only for the geologists that will be responsible for the final delineation and extraction of that material, but for the various people that have to appraise that information for technical, investment or other purposes, given the nature of orebodies.

Another major information shortcoming that is tolerated by regulators, despite texts to the contrary, is systematically reporting measured resources and indicated resources together. How can the investing public, or even an independent consultant, find out that only 20% of the total is measured resources and 80 % is indicated resources, for instance.

Current regulations and practice also allow much generous reporting of inferred resources as well as their use in pre-feasibility study and feasibility if closely associated with the measured and indicated categories. In spite of the much lower level of delineation, hence precision, both grade and tonnage are reported with the same number of significant figures ! ! !.

These are matters of concern professional geostatisticians as well as to professors of geostatistics.

Marcel Vallée Eng., Geo.

=============================
Géoconseil M. Vallée Inc.
706 Routhier St
Québec, Québec
Canada  G1X 3J9
Tel:      (1) 418 652-3497
Email:   [EMAIL PROTECTED]
=============================

Fran Manns wrote:

Isobel et al,
I keep in mind at all times that wonderful sentence in Clark (1979), "Systematic errors, be they sampling , analytical, or whatever, will /not/ be picked up by geostatistics and will be transferred to any estimates produced." (p. 119) Isobel, this wisdom should be included in the disclaimer of any geostatistical report. If one looks at the lead paper of the Australian Best Practices Volume (proper citation not available because I have misplaced the book). More than 50% of gold deposits fail to achieve nameplate output in the first year of production due to grade shortfall (David Harquail, Graham Clow and and Australian masters thesis). Then things improve, not from statistics, but using fudge factors(mine call factor, cutting, whatever). Mike Armitage, Managing Director of SRK, is on record in the SRK newsletter stating that the predictability of geostatistics is no better today than at any time in the past. I took issue with Danie Krige in the SAJG for saying, in 2001, the framework of geostatistics included all the necessary elements and no further discoveries need be made. In my experience, the issue is sampling, splitting, analysis, and execution. By the time a geological sample gets to a 30 gram aliquot, the likelihood of that 30 grams representing 1,000,000 grams of rock is probably compromised about 50% of the time. So we respond, in ignorance, by taking thousands of samples. In my opinion, 33 samples will suffice in am stope, giving two extra sample for more confidence. ... Need to take large enough samples to be representative though. Got to avoid the systematic error of not having a representative sample for the region, deposit, stope, etc. I cringe when I see geostatistics applied to ground water projects or remediation projects, or astrophysics. Ask yourself whether asteroid size distribution as sampled might suffer a 'nugget effect'. Francis T. Manns, Ph.D., P.Geo. (Ont)
Artesian Geological Research
Toronto, Ontario
And the following sense from Jim Tilsley also need to be integrated....
*Fran,*
Questioning geo-stats is an advancement in understanding. This is good for everyone and everything involved. The point most overlooked in the 'equation' is the first half of the term. GEO! I, as you know, have always objected to statistics being the main focus. FIRST do the geology. Then we may find that some sort of statistical treatment can be applied rationally. As we have discussed before on many occasions, Kreiging works wonderfully on mature gold placers of the Wits. The trouble comes in when attempts are made to apply it to another type of mineralized zone, one that has not been deposited under the same energy regime as the Wits. There can be a relationship between grade - a parameter fraught with difficulties in the details - and relative position in respect to another grade, only when there is some sort of energy gradient that ties the two together - as in the paleo-placers for which the approach was developed. Since the energy budget correlates with the distance from the centre of the channel, decreasing toward the limits of flow - (Hydraulics 101) detrital heavy mineral concentration can be expected to reflect the mechanical energy applied, and some sort of distance/grade relationship is plausible. (The Carbon Leader gold mineralization is another matter, but if the algae mats acted as chemical traps and there was some difference in total flow (volume) from a 'channel' axis across the mats, one could expect to see a similar distribution of values, but the geological controls and the difference in depositional environment must be considered.) Statistics, in my experience, may be applicable in ore reserve estimation, (and will solve many problems if properly applied) providing they are used with due reference to the geological controls on deposition. And this applies to mechanical and chemical mineralization systems equally. The chemical systems are usually the more difficult to deal with. Jim

    ----- Original Message -----
    *From:* Isobel Clark <mailto:[EMAIL PROTECTED]>
    *To:* Stephen Henley <mailto:[EMAIL PROTECTED]>
    *Cc:* AI Geostats mailing list <mailto:[email protected]>
    *Sent:* Wednesday, February 08, 2006 10:07 AM
    *Subject:* [ai-geostats] Re: Geostats Scam?

    And don't forget the 27 page article by Philip & Watson
    "Matheronian geostatistics - Quo Vadis?" in Mathematical Geology,
    vol 18, pp 93-117. 24 pages on what a confidence trick
    geostatistics is.
There are response letters in that volume and later volumes from
    members of the geostatistical community. A wonderful example of
    neither side listening. Bear in mind when you read this article
    that it was not refereed before publication.
In fact, this is a very good paper to illustrate the enormous
    difference which can occur when you approach a problem from a
    completely different direction.
What baffled me for a long time is that their argument is that
    where you have more data, you have more variability and therefore
    less confidence in your estimates. This seemed to me, set in my
    ways as a classical statistician as counter-intuitive. Some years
    later I was discussing a possible geostatistics study with a
    colleague who was a land surveyor when the penny dropped! P&W are
    geographers. They can SEE the surface they are trying to map. So
    they MAKE more observations where the land surface is more
    variable. Completely logical. Where they have fewer observations,
    it is because the surface is flat and they are confident in their
    estimates. And vice versa.
Matheron developed geostatistics, just as econometricians and
    statisticians developed time series analysis -- for surfaces and
    series which cannot be seen. More data does not mean less
    confidence in local variability, it just means more data.
As you said, Steve, if geostatistics does not make sense for your
    application or the results don't make sense in the context of you
    data, there are lots of other things you can do. And, if you are
    happy with using geostatistics, keep it simple!
Isobel
    http://www.kriging.com/courses

    */Stephen Henley <[EMAIL PROTECTED]>/* wrote:

        Hi Mach -

        Jan Merks isn't the only one who has questioned the
        fundamentals of
        geostatistics. You might also like to look at the work of
        Robert F. Shurtz.
        Perhaps the most interesting is a slim volume published by the
        Mining &
        Metallurgical Society of America, "A Geostatistical Monograph"
        (in 1997, I
        believe, though the book isn't dated). This is in the form of
        a debate
        between Robert Shurtz (criticising geostats) and Harry Parker
        (defending
        geostats).

        If you want alternatives to geostats, there are plenty on
        offer. Problem is,
        of course, that after thirty-something years geostatistics has
        become the
        'accepted wisdom' in the mining community, and you have an
        uphill struggle
        to justify using any other method. Unfortunately, also, any
        geostatistical
        practitioner who uses a fancy new nonlinear kriging method has
        much less of
        a struggle even if that new method is little better than
        alchemy. Linear
        kriging does actually have some nice mathematical properties
        if its
        assumptions are satisfied and when used properly ('best linear
        unbiased
        estimator' and all that) but what many users seem to forget is
        that, as soon
        as they tweak the method, they lose some or all of these
        properties. In my
        opinion many of the more exotic variants of kriging are worse
        than using
        non-geostatistical methods because they encourage - wrongly -
        a belief that
        they are in some ways superior simply because they are known
        as "xxxxx
        kriging".

        - Steve Henley

        ================================
        Dr Stephen Henley
        Resources Computing International Ltd
        185 Starkholmes Road
        Matlock, Derbyshire DE4 5JA, UK
        +44(0)1629 581454
        Skype: silicondale
        [EMAIL PROTECTED]
        ================================


        ----- Original Message -----
        From: "Mach Nife"
        To:
        Sent: Tuesday, February 07, 2006 6:58 PM
        Subject: [ai-geostats] Geostats Scam?


        > Hi,
        >
        > This guy (Jan W Merks) seems to devote his life trying
        > to prove that Geostatistics is a scam... If it's true
        > I'm gonna start looking for alternatives.
        >
        > http://www.geostatscam.com
        >
        > Anyone has a point of vue on this?
        >
        > machnife
        >
        > __________________________________________________
        > Do You Yahoo!?
        > Tired of spam? Yahoo! Mail has the best spam protection around
        > http://mail.yahoo.com
        >
        >


        
--------------------------------------------------------------------------------


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    ----- Original Message -----
    *From:* Isobel Clark <mailto:[EMAIL PROTECTED]>
    *To:* Stephen Henley <mailto:[EMAIL PROTECTED]>
    *Cc:* AI Geostats mailing list <mailto:[email protected]>
    *Sent:* Wednesday, February 08, 2006 10:07 AM
    *Subject:* [ai-geostats] Re: Geostats Scam?

    And don't forget the 27 page article by Philip & Watson
    "Matheronian geostatistics - Quo Vadis?" in Mathematical Geology,
    vol 18, pp 93-117. 24 pages on what a confidence trick
    geostatistics is.
There are response letters in that volume and later volumes from
    members of the geostatistical community. A wonderful example of
    neither side listening. Bear in mind when you read this article
    that it was not refereed before publication.
In fact, this is a very good paper to illustrate the enormous
    difference which can occur when you approach a problem from a
    completely different direction.
What baffled me for a long time is that their argument is that
    where you have more data, you have more variability and therefore
    less confidence in your estimates. This seemed to me, set in my
    ways as a classical statistician as counter-intuitive. Some years
    later I was discussing a possible geostatistics study with a
    colleague who was a land surveyor when the penny dropped! P&W are
    geographers. They can SEE the surface they are trying to map. So
    they MAKE more observations where the land surface is more
    variable. Completely logical. Where they have fewer observations,
    it is because the surface is flat and they are confident in their
    estimates. And vice versa.
Matheron developed geostatistics, just as econometricians and
    statisticians developed time series analysis -- for surfaces and
    series which cannot be seen. More data does not mean less
    confidence in local variability, it just means more data.
As you said, Steve, if geostatistics does not make sense for your
    application or the results don't make sense in the context of you
    data, there are lots of other things you can do. And, if you are
    happy with using geostatistics, keep it simple!
Isobel
    http://www.kriging.com/courses

    */Stephen Henley <[EMAIL PROTECTED]>/* wrote:

        Hi Mach -

        Jan Merks isn't the only one who has questioned the
        fundamentals of
        geostatistics. You might also like to look at the work of
        Robert F. Shurtz.
        Perhaps the most interesting is a slim volume published by the
        Mining &
        Metallurgical Society of America, "A Geostatistical Monograph"
        (in 1997, I
        believe, though the book isn't dated). This is in the form of
        a debate
        between Robert Shurtz (criticising geostats) and Harry Parker
        (defending
        geostats).

        If you want alternatives to geostats, there are plenty on
        offer. Problem is,
        of course, that after thirty-something years geostatistics has
        become the
        'accepted wisdom' in the mining community, and you have an
        uphill struggle
        to justify using any other method. Unfortunately, also, any
        geostatistical
        practitioner who uses a fancy new nonlinear kriging method has
        much less of
        a struggle even if that new method is little better than
        alchemy. Linear
        kriging does actually have some nice mathematical properties
        if its
        assumptions are satisfied and when used properly ('best linear
        unbiased
        estimator' and all that) but what many users seem to forget is
        that, as soon
        as they tweak the method, they lose some or all of these
        properties. In my
        opinion many of the more exotic variants of kriging are worse
        than using
        non-geostatistical methods because they encourage - wrongly -
        a belief that
        they are in some ways superior simply because they are known
        as "xxxxx
        kriging".

        - Steve Henley

        ================================
        Dr Stephen Henley
        Resources Computing International Ltd
        185 Starkholmes Road
        Matlock, Derbyshire DE4 5JA, UK
        +44(0)1629 581454
        Skype: silicondale
        [EMAIL PROTECTED]
        ================================


        ----- Original Message -----
        From: "Mach Nife"
        To:
        Sent: Tuesday, February 07, 2006 6:58 PM
        Subject: [ai-geostats] Geostats Scam?


        > Hi,
        >
        > This guy (Jan W Merks) seems to devote his life trying
        > to prove that Geostatistics is a scam... If it's true
        > I'm gonna start looking for alternatives.
        >
        > http://www.geostatscam.com
        >
        > Anyone has a point of vue on this?
        >
        > machnife
        >
        > __________________________________________________
        > Do You Yahoo!?
        > Tired of spam? Yahoo! Mail has the best spam protection around
        > http://mail.yahoo.com
        >
        >


        
--------------------------------------------------------------------------------


        >* By using the ai-geostats mailing list you agree to follow
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        > ( see http://www.ai-geostats.org/help_ai-geostats.htm )
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org;quoted-printable:G=C3=A9oconseil M. Vall=C3=A9e inc.
adr;quoted-printable;quoted-printable:;;706 rue Routhier;Qu=C3=A9bec;Qu=C3=A9bec;G1X 3J9;Canada
email;quoted-printable;internet:Marcel Vall=C3=A9e <[EMAIL PROTECTED]>
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