MICROMINE Training v10.

1 Module 22 Resource Estimation

Copyright Micromine Pty Ltd 2006
MODULE 22 TABLE OF CONTENTS
Lesson 1 Resource Estimation Concepts ............................................................................................................................... 1
CONCEPTS ............................................................................................................................................................................. 1
THE TRAINING PROJECT ........................................................................................................................................................ 2
NUMERIC EXCEPTIONS .......................................................................................................................................................... 2
Lesson 2 - Classical Statistics ................................................................................................................................................... 4
CLASSICAL STATISTICAL ANALYSIS ...................................................................................................................................... 4
Tables................................................................................................................................................................................ 4
Lesson 3 Generate Downhole Coordinates .......................................................................................................................... 11
WIREFRAMING ..................................................................................................................................................................... 13
Lesson 4: Assay Data Flagging .............................................................................................................................................. 15
FLAGGING/SELECTION ................................................................................................................................................. 15
Flagging using Solid wireframes .................................................................................................................................... 15
Flagging using DTMs ..................................................................................................................................................... 15
Lesson 5 Balancing Cut ....................................................................................................................................................... 18
Lesson 6 - Compositing .......................................................................................................................................................... 21
Lesson 7 - Geostatistics .......................................................................................................................................................... 25
THEORY ............................................................................................................................................................................... 25
Variography .................................................................................................................................................................... 25
Anisotropy ....................................................................................................................................................................... 27
Semi variogram formula ................................................................................................................................................. 27
Semi variogram model formula ...................................................................................................................................... 27
PRACTICE ............................................................................................................................................................................ 30
Review ............................................................................................................................................................................. 30
Nugget ............................................................................................................................................................................. 30
Using Semi Variograms .................................................................................................................................................. 32
Optimum Lag .................................................................................................................................................................. 33
Directional variogram, main: ......................................................................................................................................... 39
Direction of maximum continuity, primary variogram; .................................................................................................. 40
Model the variograms:.................................................................................................................................................... 41
Indicator variograms: ..................................................................................................................................................... 44
Relative variograms: ...................................................................................................................................................... 48
Cross Validation: ............................................................................................................................................................ 51
Lesson 8 Empty Cell Model ................................................................................................................................................ 55
BLOCK MODEL CELL SIZE ................................................................................................................................................... 55
Flagging.......................................................................................................................................................................... 55
Checklist ......................................................................................................................................................................... 55
How to decide the block size ........................................................................................................................................... 56
Subcelling ....................................................................................................................................................................... 57
Lesson 9 Modelling Principles ............................................................................................................................................ 61
Declustering .................................................................................................................................................................... 61
Specific gravity and block size ........................................................................................................................................ 62
Change of Support .......................................................................................................................................................... 62
Proportional effect .......................................................................................................................................................... 62
Interpolate parent blocks only ........................................................................................................................................ 63
Multiple runs ................................................................................................................................................................... 63
Lesson 10 Grade Interpolation ............................................................................................................................................. 65
INTERPOLATION ............................................................................................................................................................. 65
Search ellipse .................................................................................................................................................................. 66
Module 22 Resource Estimation MICROMINE Training v10.1
Copyright Micromine Pty Ltd 2006
How to decide search ellipse size ................................................................................................................................... 67
INVERSE DISTANCE WEIGHTING ......................................................................................................................................... 68
Recommended Values ..................................................................................................................................................... 69
ORDINARY KRIGING ............................................................................................................................................................ 70
Ordinary kriging formula: .............................................................................................................................................. 71
ORDINARY KRIGING, RELATIVE VARIOGRAMS ..................................................................................................................... 72
MULTIPLE INDICATOR KRIGING .......................................................................................................................................... 73
KRIGING VARIATIONS.......................................................................................................................................................... 78
Lesson 11 Model validation ................................................................................................................................................ 81
Global validation: .......................................................................................................................................................... 82
Declustered global estimate ........................................................................................................................................... 82
Local validation: ............................................................................................................................................................ 83
Model validation: ........................................................................................................................................................... 84
Lesson 12 - Block Model Display .......................................................................................................................................... 86
Lesson 13 Resource Classification ...................................................................................................................................... 88
Kriging variance: ........................................................................................................................................................... 89
Lesson 14 Resource reporting ............................................................................................................................................. 91
Lesson 15 Cut-off grades and grade tonnage curves ........................................................................................................... 95
Lesson 16 - Example NVG data Ordinary kriging start to end .............................................................................................. 98
Step 1: Classical statistics exhaustive population .......................................................................................................... 98
Step2: Generate downhole coordinates .......................................................................................................................... 99
Step 3: Assign the wireframe to the assay file .............................................................................................................. 100
Step 4: Classical statistics orezone .............................................................................................................................. 100
Step 5: Apply a balancing cut ....................................................................................................................................... 101
Step 6: Composite the data to equal intervals .............................................................................................................. 102
Step 7: Geostatistics ..................................................................................................................................................... 103
Step 8: Cross validation ............................................................................................................................................... 109
Step 9: Build blank model ............................................................................................................................................ 110
Step 10: Ordinary Kriging ........................................................................................................................................... 111
Model report ................................................................................................................................................................. 114
Validation ..................................................................................................................................................................... 114

MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006
Table of Exercises
Exercise 22.1 Classical Stats .................................................................................................................................................... 6
Exercise 22.2 Generate Downhole Coordinates ..................................................................................................................... 11
Exercise 22.3 Flagging using solid wireframe ........................................................................................................................ 16
Exercise 22.4 Balancing Cut ................................................................................................................................................... 18
Exercise 22.5 Compositing ..................................................................................................................................................... 21
Exercise 22.6 Nugget .............................................................................................................................................................. 30
Exercise 22.7 Omni Variogram .............................................................................................................................................. 33
Exercise 22.8 Horizontal Fan Variogram ............................................................................................................................... 35
Exercise 22.9 Vertical Fan Variogram.................................................................................................................................... 37
Exercise 22.12 Creating a Blank Block Model ....................................................................................................................... 58
Exercise 22.13 Inverse Distance Weighting ........................................................................................................................... 70


MICROMINE Training v10.1 Module 22 Resource Estimation
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Lesson 1 Resource
Estimation Concepts
After this lesson you will understand:
What are we attempting to model;
What decisions do we need to make;
What are the most important decisions affecting the modelling;
How do we check how good our model is.
Concepts
Resource estimation can be conducted for 1D, 2D and 3D models. The resource
sector generally requires 3D models except for gridding and other 2D techniques
which use surface data to identify anomalous areas that are indicative of
prospective subsurface mineralisation.
Important considerations for 3D modelling are the search ellipse, compositing,
domaining, the interpolation method, dealing with erratic high grades, anisotropy,
block sizes and validation
(1) The search ellipse includes sample grades relevant to the estimation of block
grades and excludes redundant (not required) grades;
(2) The compositing ensures the grades used for estimation are weight averaged
back to the same length so the estimation process is not biased.
(3) Domaining divides the deposit into separate areas such as lodes that have
unique geological or grade characteristics that must be interpolated and
modelled independently.
(4) The interpolation method is the method selected for modelling. This may be
Inverse distance weighting (which does not require variography); ordinary
kriging; median indicator kriging or multiple indicator kriging. Classical statistics,
in particular the shape of the histogram, the shape of the probability plot and the
coefficient of variation are useful to select the most appropriate interpolation
method.
(5) Erratic high grades can be allowed for by applying balancing cuts to grades
or by using nonlinear methods such as multiple indicator kriging. An allowance
must be made for high grades so that they do not bias the entire model and
affect large areas of the model to bias the model higher.
(6) Anisotropy is the preferred continuity of grade in one direction; isotropy
means the grade is equal in all directions. All deposits should exhibit anisotropy
and this reflects the nature of deposition and the style of mineralisation. Gold in
particular is very changeable and more prone to continuity in one direction to
another
(7) The size of the blocks required can be directed by the engineers who
indicate the SMU (Smallest Mining Unit) or by the drillhole spacing, and by the
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style of the deposit. The parent cells can be used for estimation and subcells
can improve the definition to provide an accurate volume.
(8) Validation can be both global and local. Global validation means the raw
sample data and the wireframe envelope are compared to the block model
tonnes and grade to ensure the model reflects the data that was used for
the estimation.

The Training Project
A good example for resource estimation is an iron project because the data is
more regular and can produce strong models. For the resource estimation we
will use iron data
Files used in this training project:
Collar: IRON COLLAR.DAT
Survey: IRON SURVEY.DAT
Assay: IRON ASSAY.DAT
Assay: IRON ASSAY COMP2.DAT
Wireframe: Iron.tdb

Numeric Exceptions
Always have the numeric exceptions ticked on for all three categories: Ignore
characters, Ignore blanks and <x = 0.5x. <x = 0.5x means that any below
detection value such as <0.01 g/t is actually taken by MICROMINE and halved in
value to become 0.005 to be used as a real number in the interpolation process.
There is no zero value in a geology database, ensure that below detection values
are used and not zeros.

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Lesson Summary
This lesson has introduced some of the fundamental concepts involved in
Resource Estimation. In the following lessons, we will put these concepts into
use:
search ellipse
compositing
domaining
the interpolation method
dealing with erratic high grades
anisotropy
block sizes
validation
numeric exception

Good Practice
Use Numeric Exceptions throughout.

Help Topics
For information on: See:
Numeric Exceptions Numeric Exceptions
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Lesson 2 - Classical Statistics

Classical Statistical Analysis
The aim of the classical statistical analysis is:
To check for the mixing of grade populations and the necessity of
separation of grade populations if there are more than one population,
To derive the top cut grades for grade interpolation process,
To determine the natural cut-off grades for interpretation of mineralisation,
To determine the distribution of grades,
To assess the validity of Kriging interpolation process, and
To obtain the statistical parameters for grades.
Classical statistics are used to examine initially the global population and then
the mineralisation population. The histogram, the cumulative frequency plot and
the probability plot all reveal information about the distribution of population
grades.

Tables
To obtain statistical parameters, run Stats | Descriptive | Normal/Ln for
each element and for each potential domain separately. The statistical
parameters are to be recorded in the output file, tabulated and included into the
report.
Histogram
The histogram bin size is selected so the shape of the distribution is apparent, it
must be small enough to show the shape and large enough to contain sufficient
data. The histogram shows two populations, one at low background grades and
another at higher grades; there is a discreet break between the two. The
moments such as mean, medium etc are displayed on the right of the histogram.
Probability plot
The change in the angle of the line on the probability plot helps to indicate the
grade at which mineralisation grades occur as opposed to background grades.
In other words this is the cut-off grade separating country rock from the ore
zone. This grade is used for the grade to design the outlines on the drillholes for
the ore zone interpretation. This grade is applied for the delineation of
mineralisation polygons.

Histograms, Log Histograms and (Log) Probability Plots should be generated for
each element and potential domain using Stats | Distribution process. Use
filters to separate domains if possible. All graphs should be plotted, studied and
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included into the report. The potential mixing of grade populations, grade cut-
offs for interpretation and top-cuts for grade interpolations should be determined
from the histograms and cumulative frequency plots. One of the most important
questions is to identify the number of grade populations. The number of
populations can be estimated using the Stats | Distribution, (select
Probability Plot and Natural Log options). When the probability plot is
displayed, run Model | Decompose from the top menu to obtain the statistical
parameters of grade populations. This can subsequently be displayed on the drill
traces and checked against the geological model and structures.
Obtain the grade value that separates background grades from mineralization
grades. This is the inflection point on the probability plot. Alternatively this
figure may be stated by the Government. This grade value is the grade at which
all mineralization polygons will be interpreted in section.
This Stage can take from several hours to several days depending on number of
elements and number of domains. Domains are separated data for different
block models, such as different lodes, or weathering or very high grade, high
grade and low grade areas.
Please note, it is a good practice to calculate a coefficient of variation that might
indicate a potential quality of variograms (COV = St. Dev. / Mean) and the
nature of interpolation method required. For a COV of 1 or less than 1.5 IDW
may be appropriate, above 1.5 a kriging method should be applied.

Interpretation
When interpreting the orebodies and wireframing the ore zones and
mineralisation, a decision needs to be made whether a hard boundary or soft
boundary is used. A typical hard boundary is where mineralisation is truncated
by a fault; a typical soft boundary may be where a stockwork of veins extends
from the main mineralisation zone into the country rock. A wireframe can be
used for the hard boundary, however grades outside the wireframe or indeed no
wireframe may be used when modelling the soft boundary.
CHECKLIST
Classical stats tables are generated for all elements and domains
COV values are calculated
Histograms, log histograms and probability plots are generated for all
elements and domains
Tables and graphs are studied and modelling methodology is determined
Use numeric exceptions if there are any character values in numeric fields
The distributions are described

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Exercise 22.1 Classical Stats
1. Select Stats | Descriptive | Normal/Ln.
2. Fill in the dialog box:
Prompt Setting
Input File IRON ASSAY
Type DATA
Fields | Field Name (1)
Fields | Field Name (2)
T FE
SIO2
Output File DESCRIPT IRON
As discussed in Lesson 1, all Numeric Exceptions should be selected.
3. Click Run. You should see a window displaying the Normal and
Logarithmic descriptive stats showing T Fe. Click Next to review the SIO2 stats.
4. Click Close to exit. You can right-click on the Output File: DESCRIP
IRON.REP to view the file. Copy and paste to you Resource document and then
Close.
5. Select Stats | Distribution with:
Prompt Setting
File IRON ASSAY
Type DATA
Graph field T FE
Graph type HISTOGRAM
Values used NORMAL
6. Numeric Exceptions are all set.
7. Graph Limits are set to:
Prompt Setting
Graph min 0
Bin Size 1
Graph max 71
Graph increment 10

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8. Graph Options are:














9. Click OK and you should see the histogram graph below:

The histogram of the exhaustive (total) iron population shows a very strong
normal distribution suitable for Inverse Distance Weighting or Ordinary Kriging
interpolation, which will be explored in later lessons.
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11. From the menu, select Mode to change the Graph type to CUM
FREQUENCY to display the following cumulative frequency graph:

The cumulative frequency curve shows the frequency of grades at varying grade
cut-offs.
12. Change the Graph type again to PROBABLITY PLOT for this graph:

With the probability plot set Normal, the major inflection point around a grade of
10% indicates the change from background to the mineralised grades.
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13. Change the Values used to NATURAL LOG.

When the probability plot is set to natural log and the population plots as a
straight line then the distribution is normal, this is the case for the iron
population.
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Lesson Summary
This lesson has introduced the concepts of:
Descriptive stats
Histograms
Cumulative frequency graphs
Probability plots
Natural Log scales
To create these outputs and graphs, we used Stats | Descriptive and Stats |
Distribution.
Good Practice
Keep saving your outputs into a document or folder so that you can build a
resource estimation report as you work through the process. This will be easier
while you have the data fresh in your mind.
Label everything carefully so that it will be easy to understand what it is in a
months time or to a third party reader.
Help Topics
For information on: See:
Descriptive stats Descriptive stats
Distribution stats Distribution stats
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Lesson 3 Generate Downhole
Coordinates
Prior to interpolation, the assay data file should be desurveyed (i.e. 3D co-
ordinates should be calculated for the centroid of each sample interval) using
Dhole | Generate | Downhole Coordinates.
All geological domains and mineralised envelopes (or seams) can be interpreted
interactively on screen using Strings or Outlines in VizEx. These Strings or
Outlines are used to generate solid wireframes; Strings are generally used to
create surfaces or DTMs such as weathering surfaces.
When all strings or outlines have been generated, they should be loaded into the
3D Viewer and checked for potential errors (missing interpreted sections or
drillholes etc).
Interpretation can take from 1 to 2 days, to several weeks depending on the
complexity of deposit, necessity to interpret geology, domains and multiple
elements.
Internal dilution can also be automatically integrated into the
interpretation process. MICROMINE can use Dhole | Compositing |
Grade to set a trigger grade at which compositing occurs in conjunction
with various settings for internal dilution, minimum grade, minimum and
maximum waste intervals. Once the settings are enabled then a new grade
composite file incorporating the internal dilution can be produced. The
new file is then set up in section and the interpretation is performed on
this file instead of the assay file.

Exercise 22.2 Generate Downhole Coordinates
1. From the menu, select Dhole | Generate | Downhole Coordinates and
fill in as below:


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2. The Collar/survey File More button needs to be filled in as follows:

3. You will need to write in new field names for the new Interval file fields
(East, North and RL):

4. Close the Collar/Survey Setup form and Run.
5. Examine the modified Interval File by right-clicking on it.

If you are using the Drillhole Database option on the 3D Coordinates form,
you can just tick the Create new Coordinate fields tickbox and the new
fields in the Interval file will be generated in accordance with you Form
Options under Options | Forms.
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Wireframing
The geological model is an attempt to model by wireframing the mineralisation in
the ground, there are no economic decisions at this stage, it is a mineralisation
model.





















Wireframing was covered in a previous section of the training.
At the completion of the wireframing, assign the wireframe to the assay file to
allow the wireframed mineralised data to be segregated from the unmineralised
data outside of the wireframe. The finished wireframe is Iron.tdb. A tdb file is a
database file and is short for triangle database. Use Iron.tdb for all work.
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Lesson Summary
This lesson has introduced the concepts of
Wireframing

Good Practice
Checklist
All sections are interpreted for mineralised zones and/or geology;
All Strings/Outlines are snapped to drillhole intervals;
Interpretation is visually checked in 3D.


Help Topics
For information on: See:

MICROMINE Training v10.1 Module 22 Resource Estimation
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Lesson 4: Assay Data Flagging
FLAGGING/SELECTION
When all the wireframes are generated, they should be used to code the assay
database in order to select the part of the database to be used for geostatistics
and grade interpolation. If the wireframing stage was not required, the
interpreted outlines can also be used to flag the Assay database. Prior to
flagging, additional fields should be generated in the files where the flags will be
recorded. The Assay file should be de-surveyed. By this method the assay file
will be coded for those intervals inside the wireframe and those outside of the
wireframe, and then a filter can be applied to consider grades only in the
wireframe.

Flagging using Solid wireframes
If solid wireframes are used to flag assays (or points), this should be done using
Modelling | Assign |Wireframes. There is no necessity to use the sub
blocking option; because we are flagging assay data and sub blocking factors are
not required. If there are several overlapping solid wireframes, the flagging
process should be run several times using the solids in the required order or
recording flags into different fields.
Flagging using DTMs
DTMs can be used to flag any point data (e.g. samples) for their location below,
above and outside of the DTM using process Strings | DTM | Assign. It is
always a good practice to avoid absent values in numeric fields if possible.
Therefore, it is recommended to use all three options in the process and to
generate flag values for the point data below, above and outside of the DTM
(e.g. generate values 1, 2 and 3). Make sure the DTM covers all samples. A grid
file can be generated and converted to a DTM to get sufficient coverage.
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Exercise 22.3 Flagging using solid wireframe
1. Select Modelling | Assign |Wireframes and fill in as below:

2. We will not use a Block Model here so select Point Data.
3. The Input file will be IRON ASSAY.DAT. Once it is selected, you will need to
right-click on the filename and select Modify. You will need to insert a new Field
after SiO2. The Field Name is WFcode, Type C (Character) and Width 5. You do
not need to give decimals as this will default to 0.
4. The Wiretrame will be selected from the IRON.TDB for the Type and the
orebody Name is also iron.
5. Under Attributes to Assign you can tick Clear target field and Overwrite
target field. Click the More button.and fill in (by double-clicking) as below:

6. Create a Report file name, eg WFassign.
7. Click Run.
8. Right-click the Report file to show 3933 records were updated.

9. Check the Input file (IRON ASSAY) by right-clicking.
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Lesson Summary
This lesson has introduced the concepts of

Good Practice
The flagged samples are displayed in 3D and checked visually
It is a good practice not to have absent values (blanks) for flags
DTMs cover all samples involved in the resource estimation

Help Topics
For information on: See:
M M
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Lesson 5 Balancing Cut
The balancing cut is used for block models produced using a linear estimation
method such as Inverse distance weighting or ordinary kriging. A balancing cut
is the use of a more conservative grade instead of a few higher grades in the
interpolation process. A balancing cut is determined by using a Cumulative
Frequency plot for the mineralized grades only, mineralised grades are those
inside the wireframe. At the grade where 97.5 percent of the grades occur, read
from the cumulative frequency curve, is the grade to be used for the balancing
cut.
Exercise 22.4 Balancing Cut
1. Select Stats | Distribution with:
Prompt Setting
File ASSAY IRON
Type DATA
Filter Selected
WFCODE = 1 numeric
Graph field T FE
Graph type HISTOGRAM
Values used NORMAL
2. Save your Filter as Mineralisation.
3. In the plotted example the grade at which 97.5 percent of the population
occurs is 65.

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4. Select Fields | Calculate with the following settings:
Prompt Setting
File IRON ASSAY
Type DATA
Filter Selected
Mineralisation
5. Right-click on IRON ASSAY and select Modify.
6. Insert a new row before T Fe:
Prompt Setting
Field TFe Cut 65
Type N
Width 5
Decimals 2
7. Close and Save.
8. Fill the table on the right hand side:
Prompt Setting
Input T Fe
Function Cut highs to
Input 65
Result TFe Cut 65
9. Click Run.
10. Right-click IRON ASSAY and you can check that rows 11 and 12 have
been reduced down to 65.
The cut grades will be used for the interpolation process and for reports on the
resource and the reserve.
The 97.5 percent figure is a western standard discovered from the
modelling of many projects, generally the grade at 97.5 percent is
sufficient to reduce the influence of the high grades in the estimation
avoiding sections of the model biasing the overall result too high. A
balancing cut is required because if another hole was drilled down beside
the high grade samples it is quite likely that a much lower sample grade
will be returned, this is the nugget effect, and as such the model must be
more conservative for very high grades.

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Lesson Summary
This lesson covered the concepts of :
Cumulative Frequencies for just the minerealisation.
Applying a cut to the data

Good Practice


Help Topics
For information on: See:
Fields Calculate Core | Files | Fields | Calculate
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Lesson 6 - Compositing
When deciding upon interval length, if the composite length is not obvious, a
histogram should be produced for the Assay file, it should be calculated in File |
Fields | Calculate by subtracting FROM from TO. Then run the process Stats
| Distribution for the INTERVAL field, study the obtained histogram and
make a decision on the composite length. Produce the balancing cut prior to
compositing.
Samples can be composite using Dhole | Compositing | Downhole process.
Set up sample composite length equal to average sample interval length. Avoid
mixing of samples from different populations or geological domains when
composites are generated. It can be achieved by applying filters and then
appending the result files together.
Generally wireframes will be assigned to the assay file before compositing, if so
then use the wireframe assign field as the Constant field in the compositing
routine.
CHECKLIST:
Run stats and make sure there are no strange composite interval
lengths
Use weighted average method for compositing
Run compositing separately for each domain
Set up minimum composite length (usually equal to the half of the
composite length)
Use numeric exceptions if there are any character values in numeric
fields

Exercise 22.5 Compositing
1. We already have interval lengths in the field INT. Determine the most
frequent sample interval to composite to for the iron data. Plot the interval size
on the histogram as follows










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2. The image below should be produced.

Clearly a two metre interval should be used for the composite length, by using
two metres most assays will remain unaltered for the estimation but ultimately
all will be of equal length.
3. Select Dhole | Compositing | Downhole and fill in as below (Output
File is IRON ASSAY COMP1):

There will be errors reported but they are only where there are breaks in
mineralisation within a given drillhole. The first item in the report file rep will be
in hole CK2 at a depth of 326.3m. This is the start of the second mineralisation
in that drillhole.
Where the last interval of the mineralisation is less than 2 metres, the same TO
value is used and the actual interval is written in.
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4. Intervals (INT) in uncomposited IRON ASSAY.DAT file vary. The image
below has less relevant fields hidden.

5. Recalculate your intervals by right-clicking on IRON ASSAY COMP1 and
selecting Edit, then select Calculations from the toolbar.
Prompt Setting
Input TO
Function Minus
Input From
Result INT
Clear result field Selected
Overwrite result field Selected
6. The composited IRON ASSAY COMP1.DAT file has 2 metres intervals
and values for the mineralisation only (again some fields are hidden). This file is
then used for all further interpolation.

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Lesson Summary
This lesson has introduced the concepts of
Compositing the mineralisation

Good Practice


Help Topics
For information on: See:

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Lesson 7 - Geostatistics

Theory
Classical statistical analysis should be repeated using the same procedures
described in the Lesson 2. However, this classical stats analysis will have the
following differences:
The analysis will be run for sample composites
Only flagged composites will be used for the analysis, those assays inside the
wireframe
Stats will be run for each geological / lithological / structural / mineralogical
domain separately
Final decisions will be made regarding the method of grade interpolation,
variography, mixing of population and top cuts. Mixing of grade populations
within each domain should be carefully considered using the same process
described in Lesson 2. If it is not possible to separate grade populations using
domaining, then the MIK grade interpolation method should be used.
Variography
Variography will be run for each element and domain separately. For every
domain there are three variograms, each at right angles to each other. For
example, if we have three elements and five domains, the task will be to
generate 45 directional variograms. If MIK is applied, then the number of final
variograms will be 450 (if 10 thresholds are used).
The first step would be to generate omni variograms. Omni variograms will
indicate the general ranges and variances of grade populations and whether the
chances of getting good directional variograms are good or bad. They also assist
with the lag sizes. Variograms are to be generated using the process Stats |
Semi Variograms.
The second step would be to identify the main axis of directional anisotropy if
any. If omni variograms are reasonable, a rosette of horizontal directional
variograms should be generated. Ideally, a variogram map should also be
generated which will clearly show the minimum and maximum ranges and
directional anisotropy of grade distribution.
A direction of maximum continuity should be identified from the horizontal
variogram rosette. That will be the azimuth of the main axis. Then a rosette of
vertical variograms should be generated with the azimuth of dipping equal to the
azimuth of the longest continuity of horizontal variograms. A variogram with
longest ranges will show the angle of dipping of the main axis of directional
anisotropy.
Downhole variograms are to be used to model nugget effect.
Once the azimuth and dipping of the main axis of directional anisotropy is
identified, three variograms are to be generated and modelled. The first
variogram will be in the direction of the main axis, the second one
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perpendicular to the first variogram, and the third one perpendicular to the
first two variograms.
If geology and mineralisation are well studied and interpreted, sometimes the
main directions of directional anisotropy are obvious and the above steps could
be simplified or skipped. The directional variograms are to be displayed and
modelled in Stats | Semi Variograms. It would be a good practice to
generate Direct, Log and Relative semi variograms to obtain the main features.
When experimental variograms are displayed on screen, they can be modelled
using the Model menu. Select the variogram type (e.g. Model | New |
Spherical). Then you will be prompted for the number of structures. Select the
number of structures (for example 2). Then you will be able to model the
nugget effect and sills of every structure using the mouse. When you specify the
model parameters with the mouse, MICROMINE will display the modelled
variogram parameters. Please note that Sill parameters there are actually C
values. Sill values will have to be calculated (Sill = C partial sill + Nugget).
All modelled variogram parameters should be saved to a Form.
Variography can take from several days to several weeks depending on the
number of elements, domains and selected interpolation method. If MIK is
selected, the exercise could be very time consuming due to the large number of
variograms to be modelled.
CHECKLIST:
Note the Sill in MICROMINE is actually, the partial sill.
Use downhole variograms (or vertical) to estimate nugget effect
Make sure all 3 variograms have the same nugget, C value and total
sill
Handle zonal anisotropy (if any) by adding another structure to
variograms









Variogram properties
Nugget co
gamma
Sill co + c
Range m
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Anisotropy
There are two types of anisotropy:
1. Zonal. The sills and the ranges are different in the three directions. If
this occurs two structures must be used with a second long range to
get the sills back to the same level at a very large range, such as
10,000 metres
2. Geometric. The sills are the same but the ranges are different for the
three directions
Semi variogram formula
The semi variogram and variogram is basically the same thing, technically they
are different as the semi variogram is divided by two.
Algorithm as follows, semi variogram
( )
( )
( )
( )
2
1
2
1

=
=
h N
i
i i
y x
h N
h
Once the semi variogram has been displayed then a model must be fitted to the
gamma values.
Semi variogram model formula
The rule of thumb is that a spherical model is fitted to most gold data; in some
circumstances an exponential model may be used.
3D modelling requires three variograms orthogonal to each other, the nuggets
should be the same and the partial sills must be the same, the ranges can differ
for each direction
The nugget is best determined from the downhole data as the data is the most
closely spaced, the lag can be determined from the omnidirectional variogram
which is an average of the lag spacing.
Fitting the variogram model is done interactively, the Noel Cressie statistic can
show the quality of the fit using a least squares regression, however the best
guide is a visual fit of the line to the gamma values.
The smaller the Noel Cressie statistic then the better the variogram model fit,
theoretically. However in practice the first and second gamma values greatly
influence this result. Use the visual fit in conjunction with the test button.
Ordinary kriging requires the data to resemble a normal population. If there are
mixed populations (this is apparent on the histogram and probability plot) then a
method such as multiple indicator kriging must be used.
The variograms are saved together in a form that retains the model parameters
and the attitude; azimuth and plunge of the variogram. The weighting is then
performed automatically within the ordinary kriging routine.
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Search ellipsoid parameters

The parameters entered here define a search ellipse used to select samples for
modelling. That is, the samples that will be used to calculate the estimated
value.
Radius - Enter the primary radius of the search ellipse. This value is a length or
distance that becomes the base value by which the three factors below are
multiplied to determine the dimensions of the search ellipse.
Azim (deg)
Enter the Azimuth (bearing in degrees) of the long axis of the search ellipse. This
has a range of values 0 - 360 measured clockwise from north = zero. It
corresponds to geological strike, or the trend of the long axis of a plunging body.
Azim factor
Enter the factor for the length of the long axis of the ellipse. This will be
multiplied by the Radius to determine the actual length of the Azimuth axis.
The Azimuth factor is generally the longest dimension of the search ellipse.
Commonly the Radius is set equal to the along-strike search, typically 1.25 to 1.5
times the average section spacing, and the azimuth factor set to 1. The other
two factors would then be defined as decimal values between zero and one.
Plunge (deg)
The plunge is the downward inclination of the orebody along the strike. It must
be positive; plunge values are always in the range 0 - 90.
For example, a tabular structure with Azimuth 30 degrees and a Dip of 60
degrees to the South-East will have Azim = 30 and Dip = -60. If the plane
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contains a tubular or elliptical structure that plunges downward at 30 degrees to
the north-east then the value required is Plunge = 30.
If the same tabular structure has a tubular or elliptical structure that plunges
downward at 30 degrees to the south-west then the value required is still Plunge
= 30 but the Azim must be 210 and the Dip required is 60.
Thick factor
This describes the thickness component of the search ellipsoid. Enter a factor for
the length of the search axis perpendicular to the plane of the Azimuth and Dip
values. This value is multiplied by the Radius value to determine the actual
length of the Thickness search axis. The thickness factor usually describes the
short axis of the search ellipsoid.
Dip (+/- deg)
Dip is an angle, with range -90 to 90 measured from the horizontal,
perpendicular to the azimuth axis. It corresponds to geological dip. The
convention used throughout MICROMINE is that clockwise rotation, looking in
the Azimuth direction, has negative dip values and counterclockwise rotation has
positive dips. Thus a bed striking at zero degrees and dipping 60 degrees east
will have a Dip angle of -60.
Dip factor
Enter a factor for the length of the dip axis of the ellipse. This value is multiplied
by the Radius value to determine the actual length of the Dip axis search. This is
the down dip search dimension of the search ellipsoid.

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Practice
Iron deposit (3d): The iron deposit will be modelled using ordinary kriging and
median indicator kriging. The iron deposit is a good example because it has an
excellent linear population and produced strong variogram models with
geometric anisotropy.
Files:
Collar: IRON COLLAR.DAT
Survey: IRON SURVEY.DAT
Assay: IRON ASSAY.DAT
Assay: IRON ASSAY COMP.DAT
Wireframe: IRON.TDB
Review
After the 3d coordinates were created for the assay file, the wireframe was
assigned to the assay file. This ensures we know which grades are the relevant
mineralised grades and which grades fall outside the wireframe and are
redundant. This file has already been produced and is IRON ASSAY.DAT; the
code field should be WFCODE with the code iron. A 2 metre composite file was
also created called IRON ASSAY COMP.DAT.
Nugget
The IRON ASSAY.DAT file is now used to calculate the variograms and so, to
create the variogram models. Do not use the composite file at this stage
because it may inadvertently display zonal anisotropy because compositing
smooths the data in the file and will change the variance to a greater degree in
one direction than another. The composite file is only used for the interpolation.
Exercise 22.6 Nugget
1. Open the semi variogram form by selecting Stats | Semi variograms.

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2. The Semi Variogram Type will be Downhole in this instance.
3. Select the IRON ASSAY.DAT as the Raw Data file. We initially have to
create a semi variogram file from a raw data file. Later these semi variogram
files can be re-used by clicking the second option.
4. Apply a filter to the Raw Data file in order to only use data inside the
wireframe. Make sure you save this filter using Forms | Save as.

5. Select Show Variance under Data Values and complete the form as
shown below:

6. Under Semi Variograms, select Show semi variograms and Write semi
variograms to file. The name of the File will be Vario DH of Type DATA.
7. You will of course have set Numeric Exceptions and then saved the
form using the Forms button (third from left on the Toolbar) as Downhole
Nugget.
8. This will display a Downhole variogram to determine the nugget size.

9. This gives a Nugget Coefficient established at about 50.
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Using Semi Variograms
When you create a semi variogram, you will notice that the menu at the top of
the screen changes. The two menu items of particular interest are Display and
Variogram.

The menu items with icons are available from the Semi Variogram Toolbar. The
ones that are probably used the most under Display menu are:
Form you should always save your forms so that you can easily reproduce a
result.
Dump creates a screen shot of the active window that you can paste into a
report that you might be generating as you work.
Zoom + Area allows you to zoom into the area of interest. The relevant scale
will also be shown automatically.
Display Mode takes you to the variogram parameters page where you can
make changes or check entry details.
Show Together if you have more than one set of parameters, all of them can
be shown on the screen at the same time. This is an alternative to leafing
throught them by using the Page Up and Page Down keys on your keyboard.
When using Show Together, you might want to use Display Mode first and
change the Display Mode of some of the less likely candidates to None. This will
simplify the display and let you focus on the more likely candidates.
All of the items under the Variogram menu are of use:
Previous lets you leaf back through individual variograms. This can be done
more easily by using the Page Up key on the keyboard.
Next lets you leaf forward through individual variograms. This can be done
more easily by using the Page Down key on the keyboard.
Model lets you model a curve through the points to represent a best fit
representation of an ideal curve.

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Optimum Lag
Determine the optimum lag size by using an omni directional variogram with
various lag sizes. The omni directional variogram displays the average of lags.
We will use the composited data found in the IRON ASSAY COMP.DAT file.
For this iron example, lags of 50 to 60 metres produce well behaved variogram
results. This distance can now be used to find the direction of maximum
continuity.
Exercise 22.7 Omni Variogram
1. Open the semi variogram form by selecting Stats | Semi variograms.

2. The Semi Variogram Type will be Omnidirectional.
3. Select the IRON ASSAY COMP.DAT as the Raw Data File. Keep the filter
WFcode = iron and select TFECUT65 as the Semi variogram field.
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4. Select Show Variance under Data Values, click the Omnidirectional
Semi Variograms button and complete the form as shown below:

5. Save the above form as Optimal Lag Omni Comp.
6. Under Semi Variograms, select Show semi variograms and Write semi
variograms to file. The name of the File will be Var Omni Comp of Type DATA.
7. Save the main form also as Optimal Lag Omni Comp.
8. These will display Semi Variograms. To leaf through the displays, use the
Page Up and Page Down buttons on your keyboard. It is advisable to zoom in to
the left-hand side using the magnifying glass with the square inside it from the
toolbar
9. The screenshot below shows the orange 60_50 values. This gives a
reasonable fit.

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10. We should now repeat the search with a tighter range of say 35 to 75, or
even tighter.
We will use a value of 50 for our lag or interval for now. The next step is to
discover the direction of maximum continuity. This will have the longest total
range. Set the variogram fan for 30 degree increments for 180 degrees, it is not
necessary to do 360 degrees as one half is the mirror of the other. Set the
tolerance to 15 degrees so they do not overlap and apply a conical search. The
geology is often a very good guide to the direction of maximum continuity.
The Mode button applies the value in the first row to all other valid rows. The
display modes you can choose from are:
None: The data for that azimuth will not be displayed. Useful when you want to
switch a direction off temporarily to simplify the display.
Line: Data for the azimuth will be plotted as a simple line graph. You can enter
a symbol number when LINE is selected. The corresponding symbol will
appear at each interval distance. Its size will vary proportionally to the
number of pairs in that interval.
Graph: The data will be displayed as a graph with two lines. The area between
the lines can be hatched. To generate the lines, alternate values from
interval one to the maximum calculated distance interval are connected.
The intervening values are then connected back to the first interval value.
This displays the difference between values in adjacent intervals (but loses
information on the number of pairs in each interval).
Symbol: The interval semi-variogram value for the azimuth will appear as a
symbol. The symbol size is relative to the number of pairs in the interval.
Pairs: The Pairs display option displays a fixed size symbol with the number of
pairs written beside the symbol.

Exercise 22.8 Horizontal Fan Variogram
1. We will use the Semi Variograms form again. The Semi Variogram
Type will be Directional.

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2. Change the Semi Variograms File to Var Horiz Comp. The rest of the
form stays unchanged.
3. You will notice that the button under Data Values has changed to Semi
Variograms Directions. Click this and complete the form as shown below:

4. Save the above form as Horizontal Fan.
5. Notice that we are using the Display Mode of Lines. Lines are easier to
read than Pairs but there is much more information in Pairs.
6. Save the main form also as Horizontal Fan.
7. Again leaf through the displays using the Page Up and Page Down buttons
on your keyboard. It is advisable to zoom in to the left-hand side using the
magnifying glass with the square inside it from the toolbar.
8. Your graphs should show that the best fit will be between 35 and 55 degrees
for the Azimuth. The screenshot below comes from a second run from 35 to
55. Blue 39 was slightly better than Pink 41. We will use 40.

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Exercise 22.9 Vertical Fan Variogram
1. Open the semi variogram form by selecting Stats | Semi variograms.
2. The Semi Variogram Type will again be Directional.
3. Change the Semi Variograms File to Var Vert Comp. The rest of the
form stays unchanged.
4. Click the Semi Variograms Directions button and complete the form as
shown below:

5. Save the above form as Vertical Fan.
6. Save the main form also as Vertical Fan.
7. Click Run to display the variograms as shown below.

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8. Again leaf through the displays using the Page Up and Page Down buttons
on your keyboard. It is still advisable to zoom in to the left-hand side using the
magnifying glass with the square inside it from the toolbar.
9. Your graphs should show that the best fit will be -6.



Omni directional variogram to determine optimum lag:

The setup for defining the Omni directional variogram;
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The display of the Omni directional variograms;
Directional variogram, main:
Step 4:
Finding the principle direction;

Defining the settings to narrow down the principle direction variogram;
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Display of the variograms for the principle direction;
Direction of maximum continuity, primary variogram;
Step 5: Directions of maximum continuity; once the approximate direction of
maximum continuity is known from step 4, then the lag can be experimented
with and then the exact direction of maximum continuity in terms of azimuth and
plunge can be investigated and modelled.

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Clearly the lag of 50 or 60 metres and a zero degree plunge produce the best
behaved semi variograms. The variograms have a good regular pattern, sill out
close to the variance and do not have a saw toothed appearance.
Model the variograms:
Step 6: The azimuth is 142 degrees, the lag 50 and the plunge zero. Then fit a
spherical model to the gamma values on the variogram. Retain the same nugget
as the downhole, vertical variogram with the same partial sills, one and two
retained for all three orthogonal variograms.

Principal direction: 142 degrees azimuth;
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Principal direction: 142 degrees azimuth, fitted model;


Intermediate: Directional variogram 232 degrees azimuth;
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Intermediate: Directional variogram 232 degrees azimuth, fitted model;







3
rd
direction: 180 degrees azimuth, 90 degrees dip;
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3
rd
direction: 180 degrees azimuth, 90 degrees dip, fitted model;
These are the required variogram models for Ordinary kriging or to establish the
search ellipse dimensions for Inverse distance weighting.


Indicator variograms:
Only use indicator variograms if you intend to interpolate using a non linear
model method such as median or multiple indicator kriging.
For median indicator kriging determine the median of the grades inside the
wireframe by plotting the cumulative frequency curve of the data. The also find
the grade ranges at 10 percent, 20 percent etc up to 90 percent. These grade
cut-offs will be used for the bins in the median indicator kriging routine and the
50
th
percentile or median will also be used at the cut-off grade in the indicator
variogram modelling procedure.
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Grade thresholds for the bins:




% of data Fe %
10 26.3
20 29
30 33.8
40 37.6
50 42
60 46.8
70 51.8
80 56.9
90 61.1
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The median occurs at a cut-off grade of 42% Fe; use this cut-off grade for the
indicator variograms. Use the same procedure as for semi variograms to find the
direction of maximum continuity, the intermediate variogram and the third
direction. Note the nugget and partial sill must still be the same for all three
indicator variograms.

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Once the three indicator variograms are modelled then go to Modelling | 3d
block estimate | multiple indicator kriging and save the indicator variogram form,
this should be used in the cut-off box.


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Relative variograms:
If the model area exhibits proportional effect, where the mean and variance
change in proportion to each other across the model area then a relative
variogram must be used to ensure the sills of the lags are all at the same level so
the variograms appear sensible and will allow the fitting of a variogram model. A
test for proportional effect can be conducted by using modelling | 3d block
estimate | statistical.

Display the result in Stats | scattergrams | simple linear, plotting the mean on
one axis versus the standard deviation on the other axis.
If the result plots as close to a straight line then a proportional effect is present,
if the cloud is wide as is the case with the iron example then no proportional
effect exists and relative variograms are not required.
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To produce an ordinary kriged model using relative variograms the variograms
will be modelled using the relative gamma values. When the normal direct
variograms are modelled the relative gamma value is also stored inside the file.
Use the relative gamma values for the 142, 232 and vertical normal direct
variogram output files by selecting display relative variogram from file. Then fit a
model and save the form for all three relative variograms.
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Cross Validation:
Cross validation is conducted by removing a raw data value and using the
surrounding raw data values to estimate the removed value. The value is then
compared to the estimate and is repeated throughout the dataset. The total
average estimates are compared to the actual estimates; if the variogram model
is robust the figures should be very close.

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The average error statistic should be close to zero and the standard deviation of
the error statistic close to one.
The results of the iron estimation by cross validation were 8.0575 for the
standard error and -0.005125 for the error statistic. The standard error is a little
high and could be improved but the error statistic is close to zero and is a good
result.






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Actual versus estimated values can be plotted on a scattergram to see how well
the kriging process reproduces the sample data. Actual value versus the error
statistic demonstrates the conditional bias

The Means are very close so the global cross validation is good, the precision is
19%, and the result was influenced by some low grades that did not produce a
low estimate because of the amount of data found by the search ellipse. The
cross validation is reasonable for the direct variograms to be used for ordinary
kriging.

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Lesson Summary
This lesson has introduced the concepts of

Good Practice
Keep

Help Topics
For information on: See:
M M
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Lesson 8 Empty Cell Model
Grades can also be interpolated into an empty cell block model generated (or
imported) earlier.
Block Model Cell Size
Model cell size should be selected depending on the following parameters:
Drilling density
Variability of grade
Smallest mining unit SMU
Final model size
The cell size should be sized to be small enough to produce a grade map for
grade distribution and big enough that it reflects available data.
When block model cell size is selected and the extent of model is calculated, an
empty cell block model should be generated using Modelling| 3D Block | blank
block model. The block sizes should be saved in a form and restrict to wireframe
option should be used to save only the blocks in the mineralisation.
Flagging
If wireframe solids and DTMs are modelled, then they should be used to flag the
block model. Basically, flagging should be carried out the same way as
described in the section 6. The only difference would be if sub blocking is
required.
When the block model is flagged for all possible domains / zones / ore bodies
etc, all other cells (unflagged) should be deleted from the model to reduce the
size of the file and number of records (File | Filter | Subset). That will also help
to control the interpolation process.
The process should not take more than several hours.
Checklist
The model should not have too many cells. An average block model has
several hundreds of thousands cells.
Generate sub blocks to represent volume more accurately.
Generate as many new fields for flags, as there are wireframe/string/outline
types that are used for flagging. It is easy to combine them later, if
necessary.

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How to decide the block size



The block size of 10 metres east, 20 metres north and 5 metres in rl is displayed
at the centre of the search ellipse. This block size for iron estimation is
appropriate given the sample spacing of 100 metres. The blocks must reflect
grade distribution, showing a local map of grade occurrence, so the block cannot
be too big as the grade change will not be shown and cannot be too small
because the file will be unnecessarily large and the grade estimate will become
less reliable.
The block size for an iron deposit will be bigger than the block size for more
densely spaced shear hosted gold deposits or VMS hosted base metals because
the samples are more closely spaced and the geology is far more variable.
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If the sample spacing for a gold deposit was 25m between sections, 10m
between the drillholes along the section and 1m sample intervals then an
appropriate block size would be 5m by 2m by 2.5m in rl.
Subcelling
Subcelling is the creation of smaller blocks on the edge of the wireframe when
the parent cell is not fully inside the wireframe. The numbers entered into the
sub block boxes are how much the parent cell is divided by to define the subcell
in metres. If the parent cell is 10 metres in east and the sub blocks east is
entered as 5 then the subcells will be 2 metres in the easterly direction. A sub
block factor is different, the cells are not subblocked, rather a number between
zero and one is defined for the percentage of the block inside the wireframe.


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Exercise 22.12 Creating a Blank Block Model
1. We know we are going to be asked for the extents of the Iron wireframe, so
firstly open that in Vizex in Plan view. Jot down values to encompass the
wireframe in Eastings and Northings. You should have jotted down something
like: 19000mE-19900mE and 35000mN-36500mN.
2. Switch to Looking North view and note the RLs as well. You should have
something like -650mRL-0mRL.
3. Select Modelling | 3D Block Estimate | Blank Block Model and fill in
as below. The Output entries are all typed in as we are creating a new file.

4. Under Restrictions | Wireframes click on the More button. Fill in the
details as shown below. Again, the Block Factor Field is going to be created
and the Sub-block values represent the number of times you want the block
sub-divided not the size to which you want it sub-divided.

5. Close the Restrict With Wireframes form.
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6. Click on the Block Definitions button. This is where we use the values that
we jotted down earlier.
7. Enter the values but notice that you are asked for the Block Centre. To
accommodate this and keep our blocks on round number co-ordinates, add half
the relevant block size (Spacing) to each Origin Block Centre and subtract
half the relevant block size from each End Block Centre.

8. Select Forms | Save As and save the form for later use as Iron OBM.
9. Close the Block Defintions form.
10. Select Forms | Save As and save the form as Iron OBM.
11. Click the Run button. This may take a couple of minutes and progress is
shown in the bottom left of the screen.
12. Right-click on Iron OBM in the Output File box and firstly select
Min/Max. You will notice various details including the creation of about
110,000 records and that the data does not start until 19025mE.
13. Right-click on Iron OBM a second time and select view. Notice that the BF
field stores a value between 0 and 1 representing the number of virtual sub-
blocks inside the wireframe as a fraction.



Module 22 Resource Estimation MICROMINE Training v10.1
Page 22.60 Copyright Micromine Pty Ltd 2006
Notes:















































Lesson Summary
This lesson has introduced the concepts of

Good Practice
Keep

Help Topics
For information on: See:
M M

MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.61
Notes:















































Lesson 9 Modelling Principles
Declustering
If samples are clustered then the samples must be declustered to allow a fair
estimation of the unknown value in the search ellipse. Declustering is required to
minimise interpolation bias from high-density assay areas, which often occur in
high-grade zones. If data is not declustered the clustered data has an undue
overwhelming influence in the grade interpolation on the surrounding area. If a
large number of raw data values are picked up by the search ellipse from one
area then these points will preferentially ensure that this area weights the
interpolation of the point of estimation more so than the scattered data points.
Sectors or cells can be employed to decluster the data, a maximum and
minimum number of points can be stipulated for each sector.
MICROMINE currently employs a sector method in some model modules to
subdivide the search ellipse and allow the thinning of the number of points to be
interpolated by specifying the maximum number of points allowed within the
sector.

Module 22 Resource Estimation MICROMINE Training v10.1
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Specific gravity and block size
Block size is determined by drill spacing and the smallest mining unit required for
the resource, the SMU. The SMU is often suggested by the mining engineer,
even at the stage of resource estimation. Specific gravity can be defaulted or
interpolated for the blocks.
Change of Support
Discretisation is where ordinary kriging in this case estimates point grades inside
the block which are then averaged to produce the block grade. Block kriging was
designed to combat the change of support, where the grade of a truck load of
ore is more even and reliable compared to the grade of a far smaller often more
variable sample. Block kriging is now not considered the best method of dealing
with the change of support but there are few practical alternatives.
Proportional effect
When the local variability of data changes across the model area this is known as
heteroscedasticity, the proportional effect is a form of this. For the positively
skewed distributions the local variance increases with the local mean. The
proportional effect is detected from a scatterplot of the local mean versus the
variance-calculated from moving window statistics. The proportional effect can
be calculated in Micromine by using the Modelling | 3d | statistical, defining a
block size and writing a file containing the local mean and variance.
Proportional effect will render the sample semi variogram uninterpretable.
Clustering combined with the proportional effect results in the high clustered
values contributing to the lower lags. The corresponding lag mean is large and
because of the proportional effect the lag variance is also large. As distance (h)
increases the data that contributes to the lag becomes more representative, the
MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.63
Notes:















































lag mean and variance decrease. The trend results in the lag variance results in
overestimation of the semi variogram value at short range and also the relative
nugget effect. An inaccurate variogram model generates inaccurate weighting. A
relative variogram is required as opposed to a traditional variogram. The relative
variogram is standardised by the gamma value divided by the lag variance.

Interpolate parent blocks only
If parent cells only are interpolated then it means that if the parent block was
divided into subcells because it was on the wireframe border, then the subcells
will be assigned the grade estimate for the parent cell and they will not be
independently estimated.

Multiple runs
Often when the blank model is created and interpolated into the first search
ellipse size is not sufficiently large enough to populate all blocks. When the name
of the block model file is the same for Define blocks from file and the output
block model file then the grades will be written into the blank model. Note that
the input field name, width, type and decimals must be the same in the input file
as the define blocks from file data file. If they are different then a result will not
be written. After the first run with the first search ellipse then increase the
search ellipse size for run 2 and possibly run 3 until all blocks been populated
with an estimated value.
Module 22 Resource Estimation MICROMINE Training v10.1
Page 22.64 Copyright Micromine Pty Ltd 2006
Notes:















































Lesson Summary
This lesson has introduced the concepts of

Good Practice
Keep

Help Topics
For information on: See:
M M
MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.65
Notes:















































Lesson 10 Grade
Interpolation

INTERPOLATION
The block model is generated simultaneously with interpolation of grades. This
means the following routine should be used:
1. Specify all input parameters, files, search ellipse and variogram parameters
in the processes Modelling | 3D Block Estimate | IDW or Modelling |
Kriging. Run the interpolation.
2. The generated block model should now be flagged for domains etc. using
wireframes or outlines (as specified in chapter 8).
3 All unflagged cells (above the surface, outside of wireframes etc.) should be
filtered out (File | Filter | Subset).
4 All the assigned cells should be checked for whether all cells are populated
with grades or not (Stats or Min/Max). There should be no missing grades in
the block model.
5. If not all cells are all populated, then repeat the steps from 1 to 4 with
altered (increased) search parameters until all cells are informed with grades.
Generate a Run Number field in the output model file. You will have several
saved search ellipses that increase in size, each one represents a grade
interpolation run.
6. Add all the generated models together in such a way, that earlier models
would update the later ones (File | Merge | MM).
7. Repeat all steps from 1 to 6 for all domains and for all elements.
The interpolation process can take from several hours to several days.
CHECKLIST:
Apply top cuts if necessary
Interpolate grades using several methods for validation
All cells in the Resource model should be informed with grades.
If Kriging was used, run cross validation to check if the variogram is
appropriate. Run the variogram model that produces a good estimate with
the lowest kriging error.
If MIK is used, make sure the search parameters are the same for all bins
for a particular interpolation run
The number of interpolation runs should be equal minimum to: No of
elements x No of domains x No of interpolation volumes x No of
interpolation methods. It is a good idea to save all these runs in a macro.

Module 22 Resource Estimation MICROMINE Training v10.1
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Search ellipse

When defining the search ellipse in MICROMINE
Define the number of sectors, if there is a large amount of data, then eight
or sixteen is an appropriate number of sectors to employ.
Define the maximum and minimum number of points to be used in the
search ellipse, a maximum of 6 means a total number of six per sector will
be used, the six nearest samples to the point of estimation will be used for
the estimate; the other points in the sector will not be used. With the
minimum set to 2, if only one sample is found then the point of estimation
will not be estimated. This is data declustering performed on the fly by
MICROMINE in the estimation process.
Define the attitude of the search ellipse, the azimuth, dip and plunge. This
should be defined to include the relevant samples for estimation and to
exclude the redundant points. Several different search ellipses of
increasing sizes may be required to interpolate all of the blocks in the
model. Often three runs may be needed to populate the model, the search
ellipse will be increased in radius with each run, the blocks that have
already been estimated will not be overwritten, only empty blocks will be
populated by each new run.
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How to decide search ellipse size
The search ellipse radius is determined from the variogram parameters or from
the sample spacing. For the iron example the radius of 250 metres above
contains around seven drillholes in the ellipse each with two metre interval
samples, so there are abundant samples for the first pass estimation because the
drillholes are spaced around 100 metres apart.
Save the search ellipse forms. Load the search ellipse in 3D Viewer, bring up the
grid and look from different angles with the ellipse transparency on to observe
that the attitude of the search ellipse is the required design. This is an important
validation step.


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Inverse Distance Weighting
Inverse distance weighting uses the inverse of the distance to the value of a
selected power as the mechanism whereby the samples are preferentially
weighted. For the simple example the unknown grade at the point of estimation
is ?, results are tabulated
Grade Distance 1/d2 (m) As fraction % weight Weighted
grade
0.31 110 1/12100 0.000083 0.162 0.05
0.25 80 1/6400 0.000156 0.304 0.076
0.18 120 1/14400 0.000069 0.135 0.024
0.21 70 1/4900 0.000204 0.399 0.084
? 1 0.234 kg/m3
Using a power of 2 for the inverse distance weighted calculation the point of
estimation equates to 0.234 kg/m3.
Algorithm =

=
=
n
i
w
i
n
i
w
i
i
d
d
v
1
1

Where the algorithm result = point of estimation; d = distance; v = data value;
n = number of points to calculate cell node value; w = size of the power
MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.69
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For the different powers, 1, 2 and 5, as the power is increased then the
weighting on the nearest sample to the point of estimation increases, the higher
the power then the greater this weighting to the nearest samples.
With an inverse power of 1 the grade weights are more evenly spread amongst
the samples, based evenly on the distance from the point of estimation. As the
power increases to a power of 5 then the samples closest to the point of
estimation at 6 and 7 metres respectively receive nearly all the weighting. The
grade estimate increases to 4.28 since the 2 nearest grades are also the highest
grades; most of the other samples have very little influence on the grade
estimate.
POWER = 1
GRADE DISTANCE
DISTANCE
to POWER
1/
DIST
GRADE
WEIGHTING
GRADE
* WEIGHT
3.1 10 10 0.100000 0.1823 0.5653
4.5 6 6 0.166667 0.3039 1.3676
2.1 12 12 0.083333 0.1520 0.3191
1.2 18 18 0.055556 0.1013 0.1216
4.2 7 7 0.142857 0.2605 1.0941
0.548413 1.0000 3.4676
POWER = 2
GRADE DISTANCE
DISTANCE
to POWER
1/
DIST POW
GRADE
WEIGHTING
GRADE
* WEIGHT
3.1 10 100 0.010000 0.1466 0.4544
4.5 6 36 0.027778 0.4072 1.8324
2.1 12 144 0.006944 0.1018 0.2138
1.2 18 324 0.003086 0.0452 0.0543
4.2 7 49 0.020408 0.2992 1.2565
0.068217 1.0000 3.8114
POWER = 5
GRADE DISTANCE
DISTANCE
to POWER
1/
DIST POW
GRADE
WEIGHTING
GRADE
* WEIGHT
3.1 10 100000 0.000010 0.04935 0.15297
4.5 6 7776 0.000129 0.63460 2.85571
2.1 12 248832 0.000004 0.01983 0.04165
1.2 18 1889568 0.000001 0.00261 0.00313
4.2 7 16807 0.000060 0.29361 1.23315
0.000203 1.00000 4.28662

Recommended Values
When using MICROMINE for inverse distance weighting for iron, interpolate both
the cut and uncut fields in the composite file. For gold set a power of 2 or 3; 3
is most commonly used for gold. For iron a power of 2 is appropriate.
Interpolate only the grades in the wireframe and define the blocks from the file
to update the block model. The composite file must be used; if grade intervals
are not of equal length then the model will be biased and will be a less accurate
estimate.
Module 22 Resource Estimation MICROMINE Training v10.1
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Exercise 22.13 Inverse Distance Weighting




Ordinary kriging
Kriging is an interpolation method, which uses the measured anisotropy of the
deposit to preferentially weight the samples to varying extents in the three
defining directions within the deposit. Anisotropy may or may not be present
dependent upon the nature of the deposit. Anisotropy is the uneven distribution
of grade within the deposit. If the deposit is isotropic and the variogram range
does not change with direction then an omnidirectional variogram may be fitted.
The omnidirectional variogram will have a tolerance of 90 to look in all directions
and will weight the samples as an average of all variogram models. The
weighting mechanism is determined by the variograms that are modelled. The
variogram model is then applied to the kriging algorithm to estimate block
values. The variogram models are a geostatistical measure of variation in grade
with distance along a spatially defined direction. Three variogram models will be
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Copyright Micromine Pty Ltd 2006 Page 22.71
Notes:















































produced for 3d modelling in x,y,z and two in x and y for 2d modelling. Kriging is
dependent upon being able to model variogram models, variography will confirm
or disprove the geologists intuition and assumptions relating to the deposit.
Ordinary kriging formula:

) ( ) ( ) (
) (
1
*

u Z u u Z
u n
OK
OK
=
= with ) (
) (
1
u
u n
OK

=1
Where gamma is the mean squared differences between pairs such that the
mean squared error in the matrix column sums to zero. The matrix is the K
matrix. A second matrix is set up which calculates the mean squared differences
between the data points and the cell nodes. This is accomplished using gamma
values from the variogram models. This matrix is the M2 matrix. The K matrix is
divided by the M2 matrix to obtain the kriging weight, which is . Any left overs
are accounted for by the Lagrange coefficient,. The Lagrange parameter is a
condition in the equation that requires that the total kriging weights sum to one.
The ordinary kriging dialog boxes are the same as the Inverse distance weighting
with the exception that the routine uses not only distance but also the variogram
models in the three orthogonal directions to weight the estimation. The three
variogram models are setup as saved forms in the semi variogram parameters
box. The longest range is the main direction, followed by the intermediate and
the third is the shortest direction. Some rules apply to the form for saving the
variograms
The nugget must be the same for all three variograms
The partial sills must be the same for all variograms
The three variograms must be orthogonal to each other, note that if the
main direction is 180 degrees with zero dip, then the second direction
must be 270, not 90 degrees, the angle must be bigger.
If these parameters are wrong then the kriging variogram form will not be
saved, this is a validation step in MICROMINE.
Block kriging can be used which will then enable the discretisation, this means
that several points can be estimated into the block and are then averaged for the
block estimate.
Iron example;
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Run the routine to generate the block model output file.

Ordinary kriging, relative variograms
Once the relative variograms are saved together in a form then the ordinary
kriging routine can be run. There is no need for a back transformation for the
grade estimate, this is performed automatically; the kriging variance and kriging
standard error however are rendered useless and should not be used.
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Copyright Micromine Pty Ltd 2006 Page 22.73
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Run the routine and report the tonnes and grade.


Multiple Indicator Kriging
MIK takes account of different anisotropy at different grade levels. MIK is
particularly useful where there are mixed populations present as it is a non linear
method. It is also better at handling the higher grade values and avoids the need
to cut top grades.
MIK uses different grade levels by asking for a cut-off value above which all raw
data values are transformed by an indicator to a value of one. All values below
this cut-off are assigned an indicator of zero. This is an indicator transformation.
The various grade bins are selected by using a cumulative distribution frequency
curve to group grades into percentile bins. The indicators are then modelled with
semi variograms and these variograms are applied to each cut-off.
By applying a more suitable variogram model to the various grade levels the
anisotropy is correctly honoured. This type of modelling method is attempting to
model higher grades that are mixed in with the main population and cannot be
domained out to be modelled independently.
Micromine has an MIK option. The indicator variography and the indicator kriging
both exist with multiple cut-offs with associated multiple variogram models. Up
to ten cut-offs are available, so that deciles can be defined.
Module 22 Resource Estimation MICROMINE Training v10.1
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Example:
Apply a cut-off; model the variography, run the model with the indicator cut-off
and associated variogram model. Do this for each cut-off; you will then have five
kriged models.
Indicator bins, Au, more importantly the range will vary for each indicator.
0.2 g/t everything above 0.2 has a primary variogram attitude of 260 degrees
0.5 g/t everything above 0.5 has a primary variogram attitude of 260 degrees
0.9 g/t everything above 0.9 has a primary variogram attitude of 265 degrees
1.5 g/t everything above 1.5 has a primary variogram attitude of 275 degrees
6.5 g/t everything above 6.5 has a primary variogram attitude of 290 degrees
Do for the three directions and save the formset, repeat for each grade cut-off;
alternatively do once at the 50
th
percentile, this is called median indicator kriging
and is much faster as only three variograms and one variogram formset is
needed. Also the variograms at the 50
th
percentile are always the easiest to do.
Create a blank block. Setup the cut-offs and enter the corresponding variogram
formset. Then run to generate an MIK model that applies different weights from
the different variograms at various grade levels. An e type estimate for each
block will be produced. MIK is more likely to be employed in resource estimation
than grade control; however some of the large nickel operations do use this
method in addition to others. Production pressures restrict its use.
How the estimate is produced:
Indicator kriging is a non-parametric estimation method, in that it does not
assume that the population conforms to some type of distribution. Indicators
below certain cut-offs flag the grades, the indicators are modelled with
variograms which produce probability maps of the indicators. The mean bin
grade is applied as the E type estimator to the probability maps to produce a
grade estimate. Once the kriged probabilities are adjusted in the Micromine file
then an estimate can be obtained.
If the grade thresholds are as follows
1, 2, 3, 5, and 10 and the probabilities are 1, 0.82, 0.61, 0.46 and 0.12
respectively then this means that
= 0% below 1 g/t
1 0.82 = 18% of the material is between 1 and 2g/t @ 1.45
0.82 0.61 = 21% of the material is between 2 and 32g/t @ 2.47
0.61 0.46 = 15% of the material is between 3 and 5g/t @ 3.81
0.46 0.12 = 34% of the material is between 5 and 10g/t @ 7.1
= 12% of the material is above 10g/t @17.31

You need to obtain the mean of each bin; ex the mean of the raw data below 1
g/t is 0.5
MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.75
Notes:















































The mean of the data between 1 and 2 g/t is 1.45 g/t. MICROMINE calculates
the mean value automatically and then produces the e type estimate.
For the block estimate, the weighted equation becomes
(0.18 x 1.45) + (0.18 x 1.45) + (0.18 x 1.45) + (0.18 x 1.45) + (0.18 x 1.45) =
5.42 g/t.
This is a single block estimate, called an E type estimate. This is then repeated to
estimate all of the blocks in the blank model.

MICROMINE example; Median indicator kriging;
Median indicator kriging uses one Indicator variogram modelled for the median
at the 50
th
percentile defaulted to all of the grade thresholds, instead of different
variograms for each threshold. Median indicator kriging is not as accurate but it
is faster and is still a non linear technique that can deal with any high grades and
dual populations.
Once the three indicator variograms are modelled then go to Modelling | 3d
block estimate | multiple indicator kriging and save the indicator variogram form,
this should be used in the cut-off box. All of the remaining dialogs are the normal
setup as for inverse distance weighting, interpolate the Composite file but
interpolate the TFE field, do not model the cut field.

The cut-off box allows a form to be saved that should include all of the cut-offs
for the grade bins and the indicator variogram form containing the 3 orthogonal
indicator variograms; in this case the form is as saved as IND and is defaulted to
Module 22 Resource Estimation MICROMINE Training v10.1
Page 22.76 Copyright Micromine Pty Ltd 2006
Notes:















































each grade cut-off. The grade estimate is the method to calculate the bin grade
to be used for the weighted estimate, if mean is selected it is the average of
grades between 0 and 10%, 10 and 20% etc; if median is selected then it is the
median grade for grades between 0 and 10%, 10 and 20% etc.

The deciles do not have to be used for all bins, the top bin may be at 95% or
some other figure that in the opinion of the modeller appropriately deals with the
influence of a few high grades.


The IND formset includes the 3 saved indicator variograms for the median.
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The first indicator variogram is the direction of maximum continuity.

The second indicator variogram is the intermediate variogram with the second
longest range.
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The third indicator variogram is the variogram with the shortest range.

Again use block kriging and interpolate the parent cells only. Run the MIK routine.


Kriging variations
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Copyright Micromine Pty Ltd 2006 Page 22.79
Notes:















































The kriging calculations are not straightforward and only the advent of fast
processing of millions of multiple equations by computers has allowed their
application as an alternative to simpler methods. Numerous variations exist upon
the listed algorithm with ordinary, universal, disjunctive, indicator kriging etc also
available.
Note that
Simple kriging differs from ordinary kriging in that simple kriging interpolates
from a constant or known mean whilst ordinary kriging applies a local mean
which varies across the sample area. MICROMINE supports ordinary kriging.
Cokriging requires an inverse relationship of one element to another in the model
area such as nickel and magnesium.
Disjunctive kriging is another name for co indicator kriging.

Module 22 Resource Estimation MICROMINE Training v10.1
Page 22.80 Copyright Micromine Pty Ltd 2006
Notes:















































Lesson Summary
This lesson has introduced the concepts of

Good Practice
Keep

Help Topics
For information on: See:
M M
MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.81
Notes:















































Lesson 11 Model validation
There are three types of validation local (section grades compared to model
grades), global (tonnes and grade of data compared to model) and reconciliation
(predicted versus modelled reconciled at the time of mining) the model result
was validated globally and locally
Globally means the total raw data grade was compared to the model result for
each lode and totally
Locally means that the drillholes were overlain on the block model and the raw
grades were compared to the interpolated grades
The generated grade model should be carefully validated for potential errors.
There are several steps
Check the block model tonnes and grade against the Modelling | Polygonal
wireframe estimate | grade tonnage report. This is your best reference tonnes
and grade check; if there are big differences then look for the reason why.
Visual display of block model. Comparison of block grades against drill hole
sample grades.
Plotting sections and plans together with geological outlines. General trends and
continuity of interpolated mineralisation should not be too different from the
expected trends.
Interpolation of grades using different methods. Comparing the global figures
between different interpolation methods (e.g. Kriging vs IWD or IWD2 vs IWD3)
Comparison of resource figures with previous reports.
Compare wireframe volume with the block model volume.
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Global validation:
The model and wireframe volume should correlate very closely, less than one
percent variation. The grade comparison between the model and the wireframe
can vary because often the raw samples are clustered and not evenly spaced
whilst the model blocks are evenly distributed. The grade can vary up to 5
percent.
Declustered global estimate
Analysis of the declustered assay data is required to validate the interpolated
grades in the block model. The main method to generate a declustered global
estimate is Averaging.
Averaging
Steps to generate a declusted assay database using Averaging option:
Run the Modelling | 3D Block | Statistical process. It will assign unique Index
values for all samples. Index field will have the same values for assays within
the same blocks. The cell size should be estimated on the basis of the sample
density or incremental test (see below).

Generate weighted average grade values for each Index from the assay data using
Dhole | Calculations | Extraction. Constant field should be Index, Extraction
Type = Weighted Av.



MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.83
Notes:















































Place the grade against the block dimensions for x and y, repeat the process until
a grid of cells versus estimates is created that can then be contoured, the lowest
value is the optimum cell size and the declustered estimate. Repeat from x and z
for three-dimensional data. Then use the cell dimensions to obtain a single
estimate which is the declustered global estimate.

Note if your data is very regular and spaced on a grid then the data is not
clustered and this process is not required, the global estimate will be immediately
apparent.

Local validation:
The drillhole grades and the block model grades can be compared to look for any
aberrations.


Module 22 Resource Estimation MICROMINE Training v10.1
Page 22.84 Copyright Micromine Pty Ltd 2006
Notes:















































Model validation:
Use the modelling | subblocking | validate block model routine to check for any
overlapping, duplicate blocks, or any blocks beyond the permitted project
boundary. The report file should not report any errors. This is an important
validation step.
MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.85
Notes:















































Lesson Summary
This lesson has introduced the concepts of

Good Practice
Keep

Help Topics
For information on: See:
M M
Module 22 Resource Estimation MICROMINE Training v10.1
Page 22.86 Copyright Micromine Pty Ltd 2006
Notes:















































Lesson 12 - Block Model
Display


The block model can be displayed in Vizex. Do not load the block model in the 3d
viewer; the speed of a large block model is such that it should be viewed in Vizex.
MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.87
Notes:















































Lesson Summary
This lesson has introduced the concepts of

Good Practice
Keep

Help Topics
For information on: See:
M M

Module 22 Resource Estimation MICROMINE Training v10.1
Page 22.88 Copyright Micromine Pty Ltd 2006
Notes:















































Lesson 13 Resource
Classification
There are no standard rules and procedures how to classify resources however
the JORC code provides guidelines. Different users have different approaches.
The most common approaches follow:
Variogram ranges can be used to classify resources. For example, if cells are
populated using search radii equal to 2/3 of short ranges of variograms and
more than 3 samples were used; those cells can be classified as Measured. If
cells are informed using search radii equal to long ranges of variograms and
more than 1 sample was used, those cells can be classified as Indicated. All
other cells are classified as Inferred or not coded at all. If this approach is
accepted, interpolation run will actually be the Resource Class.
Drilling density or exploration grid can also be used for resource classification.
Some users accept an idea that for the given commodity and given complexity of
deposit, resources can be classified on the basis of the generally accepted
exploration grid (e.g. 50 x 50 m for Measured Resources, 100 x 100 m for
Indicated and 250 x 250 m for Inferred). If this approach is accepted, the user
should digitise outlines in plans or sections for each resource category and use
the Assign processes to classify model cells. If necessary, wireframe solids for
Resource Classes can be generated and used to assign Categories to block model
cells.
If Kriging was applied for grade interpolation, estimated kriging variance can also
be used for resource classification. Obviously, the estimated variance reflects the
reliability of grade estimate in each cell. If this approach is accepted, then user
should define a range of variances for each Resource Category and run File |
Fields | Generate to assign Categories.
When classifying resources, the user should remember that other parameters
should also be considered, such as:
Reliability of rock density values
Reliability of sampling and analytical data
Methods and reliability downhole survey data
Accuracy of drill hole collar locations
Availability and potential effect of topographic terrain
Results of site visit
Other parameters
Confidence from interpretation of the continuity and design of the
mineralisation.
Confidence in the total input data from above.

CHECKLIST:
No Measured resource class will be declared without a site visit.
No Measured resource class will be declared if any bias or precision
issues are identified in the sample quality analysis
Display/plot the classified model and compare with the expectations
MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.89
Notes:















































Kriging variance:
There is no single kriging variance value; rather kriging variance and kriging
standard error are calculated for every interpolated block in the block model. The
size of the error can be used as a guideline to the confidence of the accuracy for
block estimation, and can be used to categorise the deposit. Categorisation
divides the deposit into different confidence levels for the accuracy of estimation;
often it will reflect the need for further drilling or more accurate data, if poor
recovery, sampling and analysis contribute to doubt.
The model can be colour coded on the kriging variance, reflecting regions of
lower sample density and estimation reliability.











Module 22 Resource Estimation MICROMINE Training v10.1
Page 22.90 Copyright Micromine Pty Ltd 2006
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Lesson Summary
This lesson has introduced the concepts of

Good Practice
Keep

Help Topics
For information on: See:
M M

MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.91
Notes:















































Lesson 14 Resource
reporting
Use Modelling | Block model report;



The block model is comprised of underscore fields which is the block size, a
subblock factor, an sg and an estimated grade.
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Page 22.92 Copyright Micromine Pty Ltd 2006
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For each block tonnes = _EAST X _NORTH X _RL X sbf X sg; if subcelling is used
and not the sub block factor then block tonnes = __EAST X _NORTH X _RL X sg
Grade = estimated grade, seen in the coloured field.
The model can be queried on a bench by bench level by using the multi types
thickness field with the _RL field.


MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.93
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By using the thickness field and the material field the model can be reported for
different levels with different grade cutoffs, this is useful for planning purposes.

Module 22 Resource Estimation MICROMINE Training v10.1
Page 22.94 Copyright Micromine Pty Ltd 2006
Notes:















































Lesson Summary
This lesson has introduced the concepts of

Good Practice
Keep

Help Topics
For information on: See:
M M

MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.95
Notes:















































Lesson 15 Cut-off grades and
grade tonnage curves
When Resource Class is assigned to each block model cell, resources can be
calculated and reported in terms of tonnes, volumes and average grades
(Modelling | Block Reserves | Report). Usually Resources are reported for
various cut-off grades and for each resource category separately (other
subdivisions could be areas, zones, lenses, ore bodies etc.) as well as the total
figures.
When resource figures are generated for various cut-off grades, they can be
imported into Excel and used to generate grade-tonnage curves or use Display |
graphs | general.

By using a cut-off set with the largest value down a report file on resources can
be produced that can be used to display a grade tonnage curve. Run the model
report to create the report file.

Then go to display | graphs | general to display the report file results
Module 22 Resource Estimation MICROMINE Training v10.1
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Move the cursor along the grade tonnage curve to see the active reading of
available tonnage with a change in cut-off grade of mining.
MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.97
Notes:















































Lesson Summary
This lesson has introduced the concepts of

Good Practice
Keep

Help Topics
For information on: See:
M M
Module 22 Resource Estimation MICROMINE Training v10.1
Page 22.98 Copyright Micromine Pty Ltd 2006
Notes:















































Lesson 16 - Example NVG data
Ordinary kriging start to end
Step 1: Classical statistics exhaustive population
Go to Stats | distribution; use the assay file and the Auave field to examine the
distribution of the population in the histogram and the probability plot modes.



MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.99
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Clearly the distribution is neither normal nor lognormal, the background versus
mineralisation cutoff evident on the probability plot is around 0.6 g/t.
Step2: Generate downhole coordinates
Go to Dhole | generate | downhole coordinates; and setup the collar, survey and
assay files to create three d coordinates in the assay file, the fields must be
added to the assay file and will be populated when the routine is run. Ensure the
azimuth correction is set to 40 degrees for the NVG data as seen in the previous
exercises.

Run the routine; the east, north and rl fields are now populated with the
coordinates of the interval centroid.

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Page 22.100 Copyright Micromine Pty Ltd 2006
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Step 3: Assign the wireframe to the assay file
Go to Modelling | assign | wireframes and write a code into a field in the assay
file to identify which intervals are inside the wireframe and which intervals are
outside the wireframe. Use the All ore wireframe set.
Note this exercise assumes that the interpretation and wireframing has been
completed from a previous exercise.


Step 4: Classical statistics orezone
Let us use the ore lode MV1S as an example. Set a filter to look at MV1S lode
only.


The histogram of the mineralised grades shows a population that approximates a
normal distribution, the probability plot in lognormal model also shows almost a
straight line, indicative of a normal distribution.
MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.101
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As such a linear method of interpolation such as ordinary kriging or inverse
distance weighting is accepatable for modelling.

Step 5: Apply a balancing cut
The cumulative frequency curve of the mineralised grades indicates that at
97.5% the grade is equals 27 g/t, this becomes the upper or balancing cut.

Use file | fields | replace to replace the grades in a new field auavecut with those
above 27 g/t back to 27 g/t.
Module 22 Resource Estimation MICROMINE Training v10.1
Page 22.102 Copyright Micromine Pty Ltd 2006
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Step 6: Composite the data to equal intervals
Go to dhole | compositing | downhole and run the routine with the constant field
set to the wireframe flag field, this means the composite will start and finish as
the drillhole enters and then leaves the wireframe. Composite the data to 1
metre, this is the most common interval, composite the cut field.

If the coordinates are now badly affected then rerun the generate downhole
coordinates to fix the problem in the composite file. Check that intervals are to
one metre and grades are recalculated by opening the file to have a look.






MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.103
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Step 7: Geostatistics
Begin the search for the three orthogonal semi variogram models to be used for
the ordinary kriging model by following the same procedures for the NVG data as
used for the iron data.
The first step is to investigate the size of the nugget from the downhole semi
variogram. The best lag size to use is obviously the most common sample
spacing. For the NVG data if a choice is made to use the composite file and the
data has been composite to 1 metre then clearly three lag should be set to 1
metre for the downhole variogram. Set the mode to calculate from raw data and
the semi variogram type to Downhole, fill out the remaining dialog boxes using
the lag of 1 metre, and ensure a filter is used so that only the data in the MV1S
ore envelope is used for the analysis.

Module 22 Resource Estimation MICROMINE Training v10.1
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The downhole variogram indicates the size of the nugget, the nugget is set at 2.

MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.105
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The omnidirectional variogram indicates an optimum 7 metre distance for the lag
size.

After producing a fan of directional variograms the principal direction is found to
have an azimuth of 15 degrees. A lag of 10 metres produces the best behaved
semi variogram. The variogram has a dip of 5 degrees.


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A two component semi variogram model is fitted to the gamma values, nugget 2,
partial sill 9 and second partial sill 8. The first range is 22 metres and the second
range is 40 metres.

Tick on, let MICROMINE calculate the angles for the second and third directions,
MICROMINE will then create the orthogonal directions so the gamma values can
be modelled.
Save all variogram models as formsets and ensure the nugget and partial sills
are the same for each variogram.









MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.107
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The second variogram is modelled, orthogonal to the direction of the first
variogram. Only the ranges are different for the second variogram model from
the first.


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Notes:



















































Finally the third variogram is modelled, again only the ranges vary between the
three variograms.

MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.109
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Step 8: Cross validation


The three variograms are combined into a single formset, enter a name in model
parameters and click right to create the new combined formset. Then double
click to select the saved forms for the first, second and third directions, the
ranges should decrease from the principle direction to the third direction. Save
the combined form, if a mistake was made then MICROMINE will not allow the
form to be saved. Once the form is saved run the cross validation routine, the
actual versus estimated mean should be similar, 7.69 versus 7.74, an acceptable
result.
The results of the iron estimation by cross validation were 2.28 for the standard
error and -0.0122 for the error statistic. The standard error is acceptable and the
Module 22 Resource Estimation MICROMINE Training v10.1
Page 22.110 Copyright Micromine Pty Ltd 2006
Notes:















































error statistic is close to zero, a good result. The variograms are accepted for
interpolation.
Step 9: Build blank model

Create a blank model that can be populated during the interpolation process,
select on the fly optimise to reduce the number of blocks in the model. Subcell
the parent blocks, in this case by a factor of 10 for each direction.
Name the model appropriately and run the routine.








MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.111
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Step 10: Ordinary Kriging

Setup the ordinary kriging dialogs boxes selecting define blocks from file on the
main dialog. This file is the unpopulated block model produced in the blank block
model. Set a filter to interpolate only the blocks in the wireframe, these are the
only grades relevant for the interpolation. Ensure the auavecut field in the assay
composite file is the sale as in the blank block model file. Select block kriging,
this will estimate to points regularly spaced in the block which are then averaged
to produce a block grade.

The disretisation sets the spacing of the points to be estimated within the blocks.

Add an extra field called run, several runs with different search ellipses may be
required to populate the entire model, set the value to 1 for the first run, this will
be written to the file.
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Tick on all numeric exceptions.

Select the saved form name by double clicking on parameters to call on the
combined variogram form.

Complete the search ellipse first run form and view in 3d to ensure that it
accomplishes the aim of including relevant samples and excluding redundant
MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.113
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samples for the first run. Increase the search radius and save the forms for
second and third runs.


Second run form.

Third run form.
When the model is run for the second run ensure the value in extra fields is
changed to 2 and changed to 3 for the third run.
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Model report

Go to modelling | model report | block report. Use the block factor field to
ensure the correct tonnage and select usecutoff set with largest value down.
Enter a report file and run the report.

Ordinary kriging model report.
Validation
MICROMINE Training v10.1 Module 22 Resource Estimation
Copyright Micromine Pty Ltd 2006 Page 22.115
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Go to Modelling | polygonal wireframe estimate | grade tonnage report. Ensure
ignore missing intervals is ticked on, select the assay file and the wireframe and
run the routine.

Wireframe grade tonnage report


The ordinary kriging result is 952,750 t @ 7.2 g/t
The wireframe estimate is 952,942 t @ 7.5 g/t.

The validation is acceptable and there can be high confidence in the result of the
ordinary kriging estimation.
Complete local validation and display the model result.

The NVG resource estimation lessons are complete.
Module 22 Resource Estimation MICROMINE Training v10.1
Page 22.116 Copyright Micromine Pty Ltd 2006
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Ordinary kriging block model report

Data preparation
and import
Data Validation
Correct Errors
Classical Stats
Tables
Graphs
Interpretation Strings & Outlines
Wireframing
DTMs & Solids
Sample Data Flagging
Sample Compositing
Classical Stats
Declustering
Proportional Effect
Variography
Empty Cell BM
Flagging Empty Cell BM
Grade Interpolation
Resource Classification
Resource Reporting Tables
Grade-Tonnage Curves
Report
OK, MIK, IDW
IDW
Obtain Reference
Global Estimate
Obtain Reference
Wireframe Volume