Use of Conditional Simulation to Assess Mesclassifcation of Ore and Waste in a Highly Discontinuous Gold/Copper Deposit

Model reconciliation problems at the low-grade, high-nugget Phoenix gold-copper deposit led to an examination of the influence of production decisions on ore-waste classification. A conditional simulation study of the deposit was used as the basis for: 1) quantification of dilution at different bench heights, 2) quantification of ore-waste misclassification relative to bench heights and cut-off wades, and 3) determination of an appropriate number of samples to optimize ore-control polygon definition. Actual reconciliation data were empirically used to support conclusions. Simulations of both gold and copper were combined through net revenue modelling. These simulations increased understanding of the nature of the deposit and provided insight for resource modeling and mine planning.