Estimation of Iron Ore Resources Integrating Diamond and Percussion Drillholes

The technology of percussion drilling is well mastered. The lower cost of percussion drilling allows more holes to be drilled for the same budget. However significant differences are often observed between percussion and diamond drill assay data. This is due to the increased level of contamination associated with the percussion drilling process. Statistical studies on twinned drillholes show that diamond and percussion assays cannot simply be merged in a traditional kriging approach. The question then arises on how to use both types of data to produce reliable resource estimates. To take into account the lower reliability of the percussion assays, a noise characterized by a variance is added to these data. The methodology consists of two steps: 1. Cokriging of the equivalent diamond value at the percussion assay locations. 2. Block kriging using diamond assays and equivalent diamond values, calculated previously, adding to these data a noise, whose variance is the cokriging variance of step 1. This particular way of achieving kriging is called kriging with variance of measurement error. The paper illustrates this innovative methodology with an application on an iron deposit. The results of this method is compared to block kriging using only diamond assays and the gain in precision is quantified. An extension of that approach to multi-element cokriging is also presented.