An Introductory Review - Computer Applications In Property Appraisal And Investment Decisions

Ore reserve determinations supporting property appraisals and economic analyses leading to investment decisions typically require many repetitive calculations. Computers have become well-accepted tools for accomplishing these computations, and are partly responsible for the development of new evaluation methods during the last decade. Excellent descriptions of manual ore reserve may be compared with current computer reserve methods1,2 in North America2 and South Africa3. A comparison indicates that computers are used in two cases: a) when a cost savings can be achieved by the simple conversion of a manual method to a computer processed equivalent, and b) when the quantity of data and ore reserve estimation purpose justifies adoption of a complex ore reserve computational method not feasible on a manual basis. Ore reserve computations essentially consist of using sample data and a mathematical method to arrive at an estimated geometry, tonnage, and grade for a mineral deposit. The mineral deposit is then subdivided, if necessary, into ore and waste components. This separation is based on economic factors which may be explicitly introduced in the computation or incorporated in a numerical cutoff grade4. Computer methods for accomplishing these tasks are presented in three papers. "The Use of Contour Surfaces as Predictive Models for Ore Values" discusses the requirements for a satisfactory value prediction model and the importance of considering auto -covariance. A weighted moving average method is described and compared to other mathematical surface development methods. In the second paper, "The Applications and Limitations of Computer Techniques in the Evaluation of Hypothermal Tin Lodes," particular problems encountered in estimating geometrically erratic economic deposits with a low valuable mineral content are documented. Economics and probabilistic concepts are introduced, allowing a comparison of risk and speculative value for a deposit. Economic considerations are integrated with ore estimation techniques in the third paper, "Method of Calculation of the Iron Ore Reserves in the Lorraine Deposit." The prediction model