Some basic considerations in the application of geostatistics to the valuation of ore in South African gold mines

Some basic considerations in the application of geostatistics to the valuation of ore in South African gold mines by D. G. KRIGE, Pr. Eng., D.Se. (Eng.) Rand (Fellow) There is much room for improvement in the statistical procedures that have been used by gold mines over the past decade in the valuation of their ore reserves. Improvement depends on the establishment of the extent to which the patterns of frequency distributions and the directional variograms for the gold values vary from area to area within each section of a mine. The application of the lognormal distribution and of the De Wijsian variogram model for routine ore-reserve valuations requires detailed study before some of the reservations still held by mathematical statisticians can be met. This paper provides some preliminary evidence of the extent to which these models can be used with confidence, as well as suggesting how they can be applied to their full potential.