Quantitative Estimation of Dilution and Ore Loss Resulting from Block Estimation Errors and a Specified Cut-off Grade

"Abstract - Where block (selective mining unit) grade distributions can be determined, the effect of average random errors of block grade estimates on metal recovery can be evaluated quantitatively. That is, for a given estimation error and cutoff grade, it is possible to calculate the quantity of metal that is lost as a result of misclassifying ore blocks as waste, as well as the dilution that ensues from misclassifying waste blocks as ore. Example calculations using a computer program GAINLOSS and realistic block grade distribution parameters for both a porphyry-type deposit and an epithermal gold deposit illustrate some fundamental relations that are important in quality control of estimation and in reconciliations concerning a comparison of ore estimates with production.Where the cutoff grade is on the lower tail of the grade distribution, metal arising from dilution can be much less than metal lost through misclassifying ore as waste. Hence, average grade of milled material could possibly be higher than expected (estimated) and tonnes milled will be smaller than estimated.Where the cutoff grade is on the higher tail of the grade distribution, tonnes arising from dilution will be greater than tonnes lost by misclassifying ore as waste. Thus, tonnage mined will be greater than estimated and the average grade milled will be less than estimated.The software GAINLOSS permits rapid comparison of the tonnes and average grade for all blocks selected as ore for a variety of levels of block estimation errors. These comparisons can be incorporated in a financial analysis to evaluate whether or not it is worthwhile to improve a high, average block estimation error to some lower value."