SCHOOL OF ENGINEERING AND INFORMATION TECHNOLOGY

MINING AND METALLURGICAL ENGINEERING DEPARTMENT

TUTORIAL QUESTIONS

TMNU 3743 - TECHNICAL VALUATION

25 August 2014

1
Question 1:

Table 1 show seven samples located in the X-Y plane. The geologist would like to
estimate the grade of a block whose centre is Po with coordinates (X =26.0m; Y =
29.0m). The method used in the estimation is the Inverse Squared Distance
weighting technique.
Table 1: Sample data

Sample (X,Y) Coordinates Sample

number (metres) Grade (g/t)
1 (31.0;30.0) 4.77
2 (31.0;28.0) 6.96
3 (26.0;22.0) 2.27
4 (26.0;38.0) 6.46
5 (22.0;29.0) 6.06
6 (21.6;30.0) 7.91
7 (21.0;20.3) 7.83
Po (26.0;29.0) To be estimated

Calculate the weight to be assigned to each sample when estimating the grade of the
block centred at Po on the basis of the Inverse Distance Squared weighting technique.
Complete the table 3 below:

Table 2: Weights assigned to each sample

Sample Sample Grade Weight W i

number (g/t) (%)
1 4.77
2 6.96
3 2.27
4 6.46
5 6.06
6 7.91
7 7.83

SOLUTION

• Calculate the distances between Po and Si

d= ((∆x )i
2
)
+ (∆yi ) + (∆zi )

From Distance
Po to S1 5.10
Po to S2 5.10
Po to S3 7.00
Po to S4 9.00
Po to S5 4.00
Po to S6 4.51
Po to S7 10

2
 1
d i2
wi = n
1
∑d
l=1
2
i

n
1 1 1 1 1 1 1 1
∑d
i =1
2
= 2
+ 2+ 2+ 2+ 2+
5.1 5.1 7 9 4 2
+ 2 = 0.231
4.51 10
i

 1  
  5.12  
• Calculate weights; for example weight for sample number 1=  
1 
=


∑ d2 
i 

0.0384 / 0.231
= 0.166

Table 2: Weights assigned to each sample.

Sample Sample Weight, Wi

Number Grade (g/t) (%)
1 4.77 16.6
2 6.96 16.6
3 2.27 8.8
4 6.46 5.3
5 6.06 27.1
6 7.91 21.3
7 7.83 4.3
∑ 100

• Estimated Grade:
= 4.77x0.166+6.96x0.166+2.27x0.088+6.46x0.053+6.06x0.271+7.92x0.213+8.83x0.043
= 6.20 g/tonne.

3
Problem 2:

AIM

To illustrate how individual intersections can be assessed against specific economic criteria and
combined to produce a reserve estimate of the ore.

TECHNICAL DESCRIPTION
A gold- bearing vein has been channel sampled at regular intervals along the back of the exploration
drive (see Problem on next page).

ASSIGNMENT
Calculate the ore reserve (tonnage and grade) using the geological, technical and economic data
provided.

REPORT

As a Mine Geologist, write a Memo to the Senior Geologist about your findings. Your calculations
should be presented as an Appendix to your memo.

ASSUMPTIONS

1. Extrapolation of info in the drive downwards and upwards – half distance to next level. Hence,
a 60-m (30+30) interval is considered.
2. Ore reserve calculated using vertical height of ore block and not the dip length. Hence,
determine horizontal minimum stoping width (MSW).

STEPS

1. Calculate horizontal minimum stoping width (MSW) using dip and stoping width for the
minimum mining grade given.
2. Knowing the minimum mining grade (MMG), calculate the minimum horizontal metal
accumulation in (cm.g/t) for an economic intersection.
3. Next, calculate the metal accumulation for each channel in turn and compare the result with
the value determined in 2).
4. Measure the strike length from the scale.
5. Determine the average thickness of the ore along the strike length, which is the arithmetic
mean of the stope widths.
6. Where the vein is less the MSW, this value is used to determine the stope width. Continue with
the rest of the calculations!

Figure 3.43 shows a gold-bearing vein which dips northwards at 52 degrees and which has been
channel sampled at regular intervals along the back of an exploration drive. The grade (grams/tonne
ore) and the thickness (cm) of the vein at each sample position are listed on the diagram. Given that
the minimum mining grade (MMG) is 5.0 g/tonne over a stoping width of 1.5 m (footwall to hanging
wall), determine whether the ore could be worked at a profit given the following information:

• Estimated mining cost = $23 per tonne ore

• Estimated milling/concentrating cost = $12 per tonne ore
• Administrative overheads = $4 per tonne ore
• Metallurgical recovery = 93.2%
• Extraction ratio = 80%
• Unintentional dilution from H/Wall ~ 10%
• Gold Price = $18/gram (on a date)
• Tonnage factor = 2.68 tonnes/m3
• Proposed mining levels at 60-m vertical depth spacing.

4
 PROBLEM 2 – SOLUTIONS

(a) Minimum stoping width (MSW)

Horizontal MSW = 1.5/Sin 520
= 1.90m

(b) Reserves (Tonnage + grade)

Strike length = 69m (measured from figure)

Assay Length HMA Ore Zone

(g/t (cm) (cm.g/t) cm.g/t)
20 20 400
12 25 300
31 30 930
0 12 0
14 38 532
17 46 782
31 74 2294 2294
27 104 2808 2808
45 119 5355 5355
58 142 8236 8236
8 213 1704 1704
48 25 1200 1200
6 195 1170 1170
22767

5
 Five of the seven channels < 190cm
∑slope width = 213 + 195 + 5(190) = 1358m
Therefore, average slope width = 1358 / 7 = 1.94m

Hence volume of deposit = (1.94 x 6.9 x 60) m3

= 8031.6m3

Tonnes of ore = 8031.6 x 2.68

= 21524.69 tonnes

Grade of ore =
∑ HMA = 22767 / 1358
∑ Slope width
= 16.77g/t

(i) Include extraction ratio;

= 0.8 x 21524.69 = 17,219.75t

(ii) Include 10% dilution

= 1.1 x 17219.75 = 18,942 tonnes

Dilution applies to extractable ore;

17219.75 × 16.77
Diluted grade = = 15.25g/t
18942

Mineable reserves = 18, 942 t @ 15.25 g/t

(c) Profit margin

Contained metal =15.25 x 18942 = 288,865.5g

Recoverable gold =0.932 x 288865.5 = 27,4422g

274422
= = 8824 ounces
31.1

Ore value = 18 ($/g) x 274422 = $4,939,600.00

Total mining costs/t = 46 + 24 + 8 = $78 / t ore

Total mining cost for reserve = 78 x 18942

= $1,477,476

Profit margin = 4939600 – 1477476

= $3,462,124

6
Problem 3

A typical narrow vein structure is defined by drill intersection on semi regular grid. Mineralised
envelopes are interpreted by a combination of geological, economical and mining constraints. Table 1
(Appendix 1)shows a schematic drill hole data set from an exploration program. On the graph paper
provided and using a scale of 1cm = 5 metres:

a) Plot the collar location of the nine drill holes in plan.

b) On the same plan, show the drill hole traces.

c) Draw a vertical section looking south, and show the drill hole traces for holes DDH1, DDH2 and
DDH3, including segments of their ore intersection.

d) On the same section in c), interpret the ore body outline for the three holes (to create a 2-
dimensional model of the ore body on this section). Consider grades of 0.10 and 0.02 g/t as waste.

e) How many metres of drilling have been carried out on this ore body.

PROBLEM 3 – SOLUTIONS

(a) Plan of DDHs – 500m Elevation

DDH7 DDH8 DDH9

540N

DDH4 DDH5 DDH6

EP4 EOP5
520N

DDH1 DDH2 DDH3

EOP1 EOP2 EOP3
500N

120E 140E 160E

Drill hole traces in plan

7
(e) Vertical section looking south

DDH3 DDH2 DDH1 500mL

2m @ 5.3g/t

EOH

3m @ 7.0g/t

EOH
2m @ 5.0g/t
EOH

(f) Meters of drilling

= 30 + 50 + 75 + 30 + 50 + 75 + 30 + 50 + 75
= 30 (3) + 50 (3) + 75 (3)
= 465m

8
Problem 4: Gy’s Sampling Theory

(a) You are to take samples from a pile of porphyry copper ore containing about 1.5 % Cu. The ore
consists of chalcopyrite (SG = 4.2 and copper content 34.5%) and a quartz-carbonate gangue (SG =
2.7). The chalcopyrite grain size averages 0.60mm and the ore is to be sampled after primary crushing
with 5% coarser than 10 mm. The pile contains 1 tonne of material.

I. Calculate the mineralogical composition factor ‘m’.

II. Use Gy's theory to predict the 95 % confidence limits on a sample of 1 kg. Assume particle size
factor, g = 0.25; and particle shape factor, f = 0.5

(b) Outcrops of a course grained Zinc (Zn) mineralisation in carbonates is chip- sampled. The
maximum fragment size of the samples is 2.5 cm. The liberation size of the sphalerite is estimated to
be 1 mm. Grades are estimated to be about 5 % Zn. What is the necessary sample weight for an error
of 5% at 2x standard deviation, meaning in 95 of 100 cases the error would be within +-5 %?

(c) Use Francois-Bogarcon’s modified Gy’s formula for the fundamental sampling error given as
follows:
2 1.5
S = 470 x d
Ms
Where:

d = particle diameter
Ms = mass of sample

A gold sample is ground to 95 % passing 200 mesh (=0.0074 cm). What is the necessary sampling
weight for an error of 10 % at 2 x standard deviations?

(d) Kambalda Nickel Mines delivered ore to the mill in 50-tonne dump trucks. One truck out of every
ten was diverted from each source to a sample pad. The primary crusher reduced the ore to 140mm.
The fine ore was milled to –75 microns. The variance of fundamental error expected is given by:
3
2 m .l . f . g . d
σ =
M s
What is the relative error at 95% confidence level? (i.e., the system yields 95% probability of being 2xσ
(%) from the true grade.

Assume m = 53; l.f = 0.03; g = 0.25; d = 50

(e) Read the paper by “Bongarcon, D F & Gy, P, 2001, “The most common error in applying Gy’s
formula in the theory of mineral sampling, and the history of the liberation factor”, in Mineral Resource
and Ore Reserve Estimation – The AusIMM Guide to Good Practice, Monograph 23 (Ed: A C
Edwards), p67-72 (The AusIMM: Melbourne). Check Library Closed Reserve.

(i) If the sample is too small compared to the lot from which it is taken, state the modified
Gy’s formula applicable and define all the terms.
(ii) Describe the difficulty with the estimation of the liberation factor and state the proposed
new model for this factor.

(iii) Rework the example on page 72 of the paper if b=1.3. Comment on the variance obtained.

9
PROBLEM 4 – SOLUTIONS

(a) (i) Mineralogical composition factor

 (1 - a ) 
m= × [(1 − a )r + at ]
 a 
 (1 - 0.0435) 
= × [(1 − 0.0435)4.2 + 0.0435x2.7]
 0.0435 
= 90.92

Particle liberation Factor

I= (L d ) I= (0.061 ) = 0.245
(ii) Using Gy’s Sampling formiula
 
S2 = d 3f.g.l.m ×  1  − 1 
 M1 M 2

= 130.5.0.25.0.245.90.92 × 1[(
1000
−1 )
1000000
]
= 2.782 x 10-3

Standard Deviation = S2 = (2.782 X 10 ) = 0.0527

-3

The absolute error = relative standard deviation x accepted estimate

Absolute error = 0.0527 x 4.35% chalcopyrite

= 0.229%

Expressed in terms of Cu, it is;

= 0.345 x 0.229 = 0.079% Cu.

At 95% confidence level the value for the sample is;

= 1.5 ± 0.158%Cu.
= 1.342 < %Cu <1.658

(b) Assume

Particle shape factor (f) = 0.5

Particle size range factor (g) = 0.25
The gangue is carbonated with SG (r) = 2.5
The ore is sphalerite with SG (t) = 4

10
STEP 1

For grade of 5% Zn, calculate amount of sphalerite (Zinc Sulphide) present. i.e.
convert from Zn grade to ZnS grade.

Using atomic weights: Atomic weight Zn 65.38

S 32.06
97.44

The zinc share of ZnS is 2 . 5% Zn is equivalent of 5/0.67 = 7.5% ZnS

3

STEP 2

Ratio d/do = 2.5 / 0.1

= 25

d/do <1 1 to 4 4 to10 10 to 40 40 to 100 100 to 400 >400

l 1.0 0.8 0.4 0.2 0.1 0.05 0.02

l = 0.2 (from table)

STEP 3
 (1 - a ) 
m= × [(1 − a )r + at ] × 1000
 a 
 (1 - 0.075) 
= × [(1 − 0.075) × 4 + 0.075 × 2.5]× 1000
 0.075 
= 48.13 = 48
STEP 4

C = mlfg
= 48 x 0.2 x 0.25 x 0.5 = 1.2
Using Gy’s Formula:

3
S2 = Cd
M

(i) For a 5% error at 2 x standard deviations; 5% = 2SD

5% = 2S
S = 2.5%
= 0.025
3 2
M = Cd / S
= (1.2 x 2.53) / 0.0252
= 30kg

The necessary sample size from an error of 5% at 2 x SD is 30kg.

(ii) For a 10% error at 2 x Standard deviation; 10% = 2SD

10% = 2S
S = 5%

11
 = 0.05
3 2
M = Cd / S
= (1.2 x 2.53) / 0.052 = 7.5kg

The necessary sample size from an error of 10% at 2 x SD is 7.5kg.

Problem 5: Inverse Distance Squared Weighting technique

Table 2 show seven samples located in the X-Y plane. The geologist would like to estimate the grade
of a block whose centre is Po with coordinates (X =26.0m; Y = 29.0m). The method used in the
estimation is the Inverse Squared Distance weighting technique.

Table 2: Sample data

Sample (X,Y) Coordinates Sample

number (metres) Grade (g/t)
1 (31.0;30.0) 4.77
2 (31.0;28.0) 6.96
3 (26.0;22.0) 2.27
4 (26.0;38.0) 6.46
5 (22.0;29.0) 6.06
6 (21.6;30.0) 7.91
7 (21.0;20.3) 7.83
Po (26.0;29.0) To be estimated

(a) Calculate the weight to be assigned to each sample when estimating the grade of the block
centred at Po on the basis of the Inverse Distance Squared weighting technique. Complete the
table 3 below:

Table 3: Weights assigned to each sample

Sample Sample Grade Weight W i

number (g/t) (%)
1 4.77
2 6.96
3 2.27
4 6.46
5 6.06
6 7.91
7 7.83

(b) Use the weights from part (a) to estimate the grade of the block centred at Po.

(c) Create a cluster of additional nine samples almost adjacent to point 3 (i.e. same distance from
the point of estimation Po) with the following grades: (15, 16, 14, 15, 16, 15, 16, 14, and 15).
Recalculate the estimated inverse distance squared grade for the block centred at Po.

(d) Comment on the impact of a cluster of samples on the estimated grade.

(e) List three interpolation rules that might apply in the application of the inverse distance
weighting technique?

(f) State two drawbacks of the inverse distance weighting techniques.

12
PROBLEM 5 – SOLUTIONS

(a) Calculate the distances between Po and Si

d= ((∆x )
i
2
+ (∆yi ) + (∆zi ) )
From Distance
Po to S1 5.10
Po to S2 5.10
Po to S3 7.00
Po to S4 9.00
Po to S5 4.00
Po to S6 4.51
Po to S7 10

n
1 1
∑g i
d i2 d i2
Grade at Po = l =1
n
1
= ∑g w ; i i wi = n
1
∑ 2
l =1 d i
∑d l=1
2
i

n
1 1 1 1 1 1 1 1
∑d
i =1
2
= 2
+ 2+ 2+ 2+ 2+
5.1 5.1 7 9 4 2
+ 2 = 0.231
4.51 10
i

 1 1 1 1 1 1 1  
 4.77 × 5.12 + 6.96 × 5.12 + 2.27 × 7 2 + 6.46 × 9 2 + 6.06 × 42 + 7.91 × 4.512 + 7.83 × 10 2  
 
1


∑ d 2 
i 

= 1.423 / 0.231
= 6.16 g/t

Sample Sample Weight gi.wi

Number Grade (g/t) (wi)
1 4.77 0.166 0.792
2 6.96 0.166 1.155
3 2.27 0.088 0.200
4 6.46 0.053 0.342
5 6.06 0.271 1.642
6 7.91 0.213 1.685
7 7.83 0.043 0.337
∑ 1.000 6.153 g/t

(c) Average sample cluster

15 + 16 + 14 + 15 + 16 + 15 + 16 + 14 + 15 + 2.27
= 13.83 g/t
10

13
 Calculate the distances between Po and Si

d= ((∆x )
i
2
+ (∆yi ) + (∆zi ) )
Sample Sample Weight gi.wi
Number Grade (g/t) (wi)
1 4.77 0.166 0.792
2 6.96 0.166 1.155
3 13.83 0.088 1.217
4 6.46 0.053 0.342
5 6.06 0.271 1.642
6 7.91 0.213 1.685
7 7.83 0.043 0.337
∑ 1.000 7.17 g/t

Problem 6: Inverse Distance Squared weighting technique in 2-D

Table 4 shows a sample of a small data set (S1 – S5) located in 3-dimensional space.

(a) Estimate the grade of a block P with centroid coordinates (X=0.0; Y=0.0; Z=0.0) using Inverse
Squared Distance Weighting technique. Assume a spherical search radius of 100m, ie, only
samples within 100m of the point to be estimated need be considered.

Table 4: Sample data in 3-dimensional space.

Sample Grade
ID Y Y Z % Cu
S-1 10 40 0 1.6
S-2 90 0 0 2.8
S-3 -40 -35 0 3.1
S-4 -35 20 22 4.1
S-5 50 -40 30 1.3

HINT:
1
n
di2
Grade @( X = 0, X = 0, Z = 0) = ∑ ai xg i aii = n
1
i =1
∑d
1=1
2
i

di = ((∆x ) i
2 2
+ (∆yi ) + (∆zi )
2
)

14
PROBLEM 6 – SOLUTIONS

Calculate distances to sample points

From Distance
Po to S1 41.2
Po to S2 90
Po to S3 53.2
Po to S4 45.9
Po to S5 70.7

n
1 1 1 1 1 1
Calculate ∑d
i =1
2
=
41.2 2
+ 2+
90 53.2 2
+
45.9 2
+
70.7 2
= 0.00174
i

 1 1 1 1 1  
 1.6 × 41.2 2 + 2.8 × 90 2 + 3.1 × 53.2 2 + 4.1 × 45.92 + 1.3 × 70.7 2  
Grade at Po =   
1


∑ d 2 
i 

= 0.00459/0.00174
= 2.64% Cu

15