Hello,

An interesting one may be samples from stockpiles. In our case the
stockpiles are quite significant tonnages. Either way, as a theoretical
exercise we have so far thought of: what do the stockpiles samples
actually represent (i.e. any sample bias) and how are the stockpile
samples correlated. We have a time-line in the stockpile so the samples
are perhaps not quite independent but it's hard to put a structure
around the samples. Some sort of weighting is needed but what.

Regards Craig.


-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On
Behalf Of Alexandre Boucher
Sent: Sunday, 23 July 2006 07:53
To: Raimon Tolosana
Cc: [email protected]
Subject: Re: AI-GEOSTATS: KWBP Test Program

Dear Raimon,

A few steps back may be necessary, mining geostatistics uses random
functions to model the grade of the deposit, not of the samples.  The
samples, among other sources of information, are there to help you in
that modeling process.  The spatial continuity of the orebody itself is
not a function of the sampling, it is derived from a series of complex
natural phenomena.  Under sampling the deposit does not make the "real"
underlying
continuity disappear.   In light of that, if your data fail to show any
kind of continuity, you should ask yourself: is it because the grades of
the deposit are truly "random", or is it because the sampling failed to
capture that continuity for a variety of reasons.

If you decide to go with the assumption of spatial independence, you
then decide that grades are uncorrelated in space.  This may not be a
safe decision, and may be very consequential for the development of your
operation.  By assuming a pure nugget effect, you will be expecting
constant cash flow from your operation, (every block has the same
expectation, all would be above the cutoff) and will be designing a
pretty simple mining schedule (there is no rich or barren zone).  But
then, if your orebody had a spatial continuity, you will have varying
cashflow and very un-optimal mining design, that may well end up
transforming a profitable operation into the red.  I do not say that
such scenario does not exist, I just put it in context.

The assumption of spatial independence is pretty consequential and
should not be made too easily.  Energy should be invested on
understanding why, from a geological and metallogenical perspective, it
is spatially uncorrelated ( e.g. folding, faulting, etc... ).  Also
recall that variograms only capture continuity along a line, the
continuity of curvilinear features are not easily modeled (unfolding may
be helpful
here).   I would anyway suggest to perform a sensitivity analysis on the

spatial correlation and see how the economics hold based on your chosen
mining design.

Regards,
Alex Boucher



At 10:30 AM 7/22/2006, you wrote:
>Dear list,
>
>this situation posed by Mr.Merks, in which spatial dependence is not
>strong enough as to be useful for geostatiscs, might be rather common.
>I'd like to ask to the list, what kind of estimation of reserves should

>be done in this case? In the absence of spatial dependence, classical
>statistics should apply: therefore, shall we estimate the mean value of

>ore content in the "deposit" by the arithmetic mean of the samples? And

>attach an error to it, in the fashion of the standard error of the mean

>(something like the variance of the sample divided by number of data
>used)? Or did I grossly misunderstand something in the discussion, with

>so much bogus-hocus-pocus and 5-line sentences?
>
>thanks for the patience
>Raimon Tolosana
>
>En/na JW ha escrit:
>>
>>Hello Readers,
>>
>>
>>
>>More talk and not test. I want to know what the KWBP methodology does
>>with the Bre-X data. Is that too much to ask?
>>
>>
>>
>>Kind regards,
>>
>>Jan W Merks
>
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