Geologic And Allied Considerations In Ore Reserve Estimates For Vein Type Deposits ? Introduction

The importance of geology in ore reserve estimation has been stated by several authors. King et, a1 (1982) reported that the geological factor was the key deficiency where serious weaknesses in ore reserve estimation appeared, especially in grade. The foundation for a successful mining operation is an ore reserve estimate that neither overstates nor understates the true situation as to tonnage and grade. Overestimation of reserves can have devastating economic results. Overestimation of tonnage may lead to wasting money on an overbuilt plant or worse yet, if grade is seriously overestimated also, to undertaking an operation that is doomed to economic failure from the outset. Understated ore reserves can result in building a plant that is smaller than optimum which may result in higher unit costs. At worst, understated tonnage of ore reserves can result in a missed opportunity for a profitable operation. Failure of the ore reserve estimator to properly take into account all geologic and allied factors pertaining to the deposit can result in an ore reserve estimate that is overstated either as to tonnage or grade or both. This paper will focus on these factors and will not discuss rules about distances above or below a drift that should be given a classification of proven or probable, etc. Each deposit has its own particular characteristics which often require modification of general rules for defining limits of proven and probable ore blocks that work satisfactorily in another deposit. A number of references are included which discuss some of these problems. Definitions of ore reserve classifications and an illustration are given in the Appendix.