A Validation Study of Gold Borehole Valuation Procedures Based on a Simulated Orebody

n order to validate the borehole analysis valuation procedure commonly used in the South African gold mining industry, a simulated orebody was used to create borehole values which would serve as data for the procedure. After confirming the distribution, calculating the variance size of area relationship, estimating the block variance, and calculating a profit measurement for each set, comparisons were made to the known population parameters. Results show only one overall bias (in the estimation of the lognormal third parameter), which is carried throughout the analysis. The remainder of the analysis is unbiased, validating the procedure.