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Review Lecture Sampling Ore Reserve Estimation

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209 views88 pages

Review Lecture Sampling Ore Reserve Estimation

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Jelaica
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© © All Rights Reserved
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MINERAL SAMPLING

METHODS AND PROCESSES


MINERAL SAMPLING
• Sampling
The process of taking a small portion of an
article such that the consistency of the
portion shall be representative of the
whole
• Purpose: is primary economic, the
resulting assay returns constitute data that
truly represents the geological of the
deposit being sampled.
• Surface Sampling Techniques
1. Channel Sampling – this method consist of
cutting channels across the face of exposed ore
and collecting the resulting chips, fragments and
dust from each channel to make a sample.
2. Chips Sampling- a series of chips of rock is
taken either in a continuous line across the
exposure or at random intervals over a face.
3. Muck Sampling – a grab-sample of the muck
pile after blasting is sometimes taken instead of a
channel sample of a face. It picks pieces of rock
of convenient size.
4. Car Sampling- a shovelful of ore or a series of
pieces selected either at random or according to
a pre-arranged system is taken from each car
that comes from the face. This gives a fairly
large samples.
5.Geochemical Sampling – usually done at established
or grid points where soil/rock chips, sediments, water,
mud, etc. are collected for analysis.
6. Grid Sampling – by establishing a grid or coordinate
system. The grid is started by following a designated
line or bearing, usually following a compass bearing
and collecting samples at some equal pre-determined
distance. At the end of the distance two right angles
are made, and another ground line is started in the
opposite direction.
7. Bulk Sampling – is done to further determine
the mining and metallurgical properties of the
deposit such as:
a) grade of ore;
b) degree of homogeneity if mineralization;
c) rock hardness and strength;
d) ore and gangue mineralogy & their
variations;
e) grain size of mineral;
f) response to ore drilling process.
• Prime Purpose of Bulk Sampling:
To confirm grade indicated by prior sample data
from drill holes or workings
• Other Objectives:
• Establishment of metallurgical criteria
• Enhancement of geologic knowledge
• Development of material-handling data
• Investigation of rock mechanics parameters
To implement a proper bulk sampling program,
representative portions of the mineral deposit
must be accessible for removal of large
volumes or material.
1 Run-of-Mine-Ore
Basic Flow
2 Primary Storage
Diagram of
Bulk Sampling 3 Front-end Loader

Arrangement 4 Loading Hopper

5 Feeder

6 Conveyor

7 Portable Crushing Plant

8 Conveyor
Reject Sample
9 Sampler

14 Holding Bunker 10 Feeder

11 Crusher
15 Front-end Loader
Reject Sample
12 Sampler
16 Special Lot Storage 17. General Stockpile
Assay
• Subsurface Sampling Techniques
1.Excavation of Test Pits/Trenches – horizontal
and vertical excavation are made to collect
mineral samples located beneath the surface.
2. Drilling – collection of crushed, fines and rock
cores beneath the surface using a drilling
equipment. The drilling method could be either
rotary-percussive; rotary, diamond core, churn,
wash boring, hammer drilling, auger, and shot
drilling.
3. Aditing/Tunneling or Shaft Sampling
Test Pitting
Trenching
• Other Surface Sampling Methods (Indirect)
1. Geiger Counters, scintillometers, spectro-
meters (can also detect radioactive minerals)
2. Hole Probing – to detect zone of radioactivity
3. Down-hole-logging – detect electrical as well
as radiometric properties
4. Neutron Activation Analyzer – to assay
material in-situ
5. Heavy Media Separation (Panning) – for gold
and silver
• Sample Preparation
It is a process of converting samples of
geologic material from large sample collected in
the field or mine into finely divided
homogeneous powders suitably for chemical
analysis and other testing.
• Sample Preparation Equipment
1. Dryers : electrical or gas-fired ovens
2. Crushers : jaw, cone, roll, hammer mill
3. Splitters
4. Pulverizers
5. Blender and Pulp Settlers
• Sample Processing Methods
1. Wet Chemistry
a. Classical Volumetric or Gravimeters
b. Colorimetric – lead to the devt of colored
compounds in solution by the reaction of the
element with addition of specific chemical
reagents
c. Instrumental Analysis – uses Atomic
Absorption Spectrophotometer to measure the
concentration of cations
2. Fire Assaying – a chemical fusion method for
separating, concentrating and measuring Au
and Ag content
3. Non-Destructive Analysis
a. X-ray – uses an x-ray diffractometer to
determine the mineral species present in a
sample by recording the characteristic
crystallographic pattern
b. Radiometric Analysis – uses a Multispectral
Radiometric Analyzer to determine the
concentration and radioactive minerals
c. Neutron Activation Analysis – uses a Neutron
Activation Analyzer to determine nuclear
reactors.
ORE RESERVE ESTIMATION
ORE RESERVE ESTIMATION
• Ore Reserve Estimates
An assessments of the quantity and tenor of a mineral
that may be profitably and legally extracted from a
mineral deposit through mining and/or mineral
beneficiation. It involves:
a) evaluation of the ore tonnage and grade;
b) technical & legal aspects of mining the ore;
c) beneficiating the ores;
d) selling the product
Estimation of ore reserves are participated by various
professional discipline such as geology, geostatistics,
mining engineering, mineral process engineering,
mineral economics, land & legal issues, environmental
engineering
• Purpose of Ore Reserve Estimation
– Assist in determining if a property is worth
mining and guide in the later development.
• Ore Reserve Estimate begin with the collection
and treatment of geological samples drawn
from defining ore body. It requires accurate
information especially geological character.
• Tonnage of Ore Reserves is the total ore
reserve that is estimated from maps and
sections that show the limit of the ore and the
average grade of the workings that have been
sampled.
• Average Grade – is calculated from the average
grades of the sampled drill holes or openings which
bound it.
• Volume of Ore – is the average Thickness times Area.
The weight of a block of ore is estimated by first
calculating the volume and then applying a factor to
convert volume into tonnage.
• Tonnage – multiply the volume in cubic meters by the
specific gravity to get metric tons.
• Cut-off Grade:
The lowest grade the explored mineral deposit that will
meet costs.
• Ore Limit:
The dividing line where the last assay shows the
minable grade.
• Reserve Estimates are prediction of the physical
characteristics of the mineral deposit through the
following tasks:
a) collection of geologic data
b) analysis of the collected data
c) modelling of the size, shape and
grade of the deposit
Important physical characteristic of the orebody to be
predicted are:
1) the size, shape and continuity of ore zones
2) the frequency distribution of mineral grade
3) the spatial variability of the mineral grade
The sample data consist one or more of the
following:
1) physical samples taken from drilling,
trenching, test pitting and channel
sampling;
2) measurement of the quantity of the
mineral in the samples through assaying
or other procedures;
3) direct observations such as geologic
mapping and drill core logging.
• Data that must be collected and compiled for
estimating the resource are as follows:
1. reliable assays from an adequate number of
representative samples;
2. coordinate locations for the sample data;
3. consistently recorded geologic data that describe
mineralization controls;
4. cross section or plan maps with the geologic
interpretation of the mineralization controls;
5. tonnage factors or specific gravities for the
various ore and waste rock categories;
6. surface topographic map, especially for deposits
to be surface mined.
CLASSES OF ORE RESERVES:
1. Positive Ore (Blocked out Ore)-ore expose and
sampled on 4 sides (ex. By levels) above and below
and by raises or winzes at the end of the block.
This definition applies to veins for wide ore body the
workings must be supplemented by crosscuts.
2. Probable Ore -ore exposed and sampled either on
two or 3 sides.
3. Proved Ore – ore where there is practically no risk
of failure of continuity
4. Prospective Ore – ore which cannot be included as
“Proved” or “Probable” nor definitely known or
stated in any terms of tonnage.
Measured Ore - tonnage is computed from dimensions
revealed in outcrops, trenches, workings, and drill
holes, and for which the grade is computed from the
results of the detailed sampling.
Indicated Ore - tonnage and grade are computed partly
from specific measurements, samples, or production
data, and partly from projection for a reasonable
distance on geologic evidence.
Inferred Ore - which quantitative estimates are based
largely on broad knowledge of the geologic character
of the deposit and for which there are few, if any,
samples or measurements. The estimates are based
on an assumed continuity or repetition for which there
is a geologic evidence.
Geologic Resource Modelling
• To arrive a desirable Ore Reserve Estimates rest on
the modern development of improved, GEOLOGICAL,
GEOMETRICAL and MATHEMATICAL techniques of
mineral deposit model construction.
• Geologic Modelling - is a reconstruction of the
three-dimensional geologic picture of a deposit from a
handful of sample data. The process combines the
power of imagination with mathematical formulations
to arrive a satisfactory model.
• Ore Deposit Model are the underlying foundation for
economic decision and the correctness of those
decisions will be directly dependent on the accuracy of
the ore reserve estimates.
• To model a property, three (3) pieces
of information are necessary :
1) topography;
2) geometry of the deposit
3) geologic character of deposit;
4) metallurgical or assay results
How to develop a Resource Model?
1. compilation of geologic and assay data into
maps, reports, and computer databases;
2. delineation of the physical limits of the deposit
based on geologic interpretation of the
mineralization controls at a reasonable range of
mining cut-off grades;
3. compositing of the samples into larger units such as
mining bench height, seam thickness, or minable
vein width;
4. modeling of the grade distribution;
5. estimation of spatial variability of the grade;
6. selection of resource estimation method and
estimation of quantity and grade.
Important Factors Ore Reserve
Evaluation :
1. range of likely cut-off grade;
2. degree of selectivity and size of the
selective mining unit for likely mining
method;
3. variation in the deposit that affect the
ability to mine and/or process the
ore.
Problem: Sagitarrius Mines reported to the Mines & Geosciences
Bureau (MGB) for its Affidavit of Annual Work Obligation
(AAWO) for the year 2009 the following mineral reserves of its
Tampakan Copper-Gold Project in South Cotabato as follows:

Positive Ore Reserves 100 Million MT at 55 % CuFeS2


Probable Ore Reserves 300 Million MT at 45% CuFeS2
Possible Ore Reserves 300 Million MT at 40% CuFeS2

Determine the total minable ore reserve of Sagitarrius Mines of


its Tampakan Project presently available for initial mining.
Solution: Positive Ore means that 4 sides of the vein been exposed
Probable Ore means that the reserves are estimated with a
degree of certainty sufficient to indicate occurrence of
the resource.
Possible Ore means that the reserves has low degree of certainty
insufficient to indicate its occurrence.

Total Ore Reserve = Positive Ore + Probable Ore = 100 M + 300 M


= 400,000,000 Metric Ton
Problem 1 : A new mine is set to opened in the next three (3)
years. Compute for the cut-off grade of the mine using the
result of the feasibility study as follows:
Capital Investment, million $ …... 75.00
Equity ……………………………… 15.00
Return of Investment ………………. 15.00
Million tons of ore ………………. …. 150.00
Million tons mined annually ……… 10.00
Grade of ore mined, % Cu ……. … 0.60
Concentrator Recovery, % ………. 90.00
Waste Ratio, tons per ton ore …….. 2.6
Costs: Per Ton
Mining Cost…………………………. … $0.90
Milling ………………………………….. 0.65
Overhead & Svcs including interest…… 0.82
Operating Cost 2.37

Depreciation & amortization …… ……. 0.50


Net Cost …………….. 2.87
ROI before income taxes ………… . 0.23
Buying Price of Cu Concentrates ….. 42¢/lb
Minimum Value of Ore ……. $3.10/ton
Cut-off Grade = 3.10 = 8.20 lbs or 0.4% ( 8.20 lbs/2000 lbs/ton)
0.42 x 0.90
Problem 2 : Based on the result of the mineral exploration, the explored
deposit was economically and technically evaluated and results showed the
following:
Mining & Milling Cost = $ 1.80/ton
Overhead Expenses = $ 0.50/ton
Miscellaneous Expenses = $ 0.30/ton
Depreciation & Amortization = $ 0.45/ton
Grade of the Ore = 0.70 % Cu
Concentrator Recovery = 90%
Return of Invstmnt(ROI) before income taxes = $0.22/ton
Market Price of Cu = $ 0.85/lb
a) What is the expected profit per ton of ore?
b) What is the cut-off grade of the deposit?

Solution:
a) Total Cost/ton = Mining/Milling Cost + Overhead + Misc +
Depre/Amor + ROI
= $1.80 + $ 0.50 + $ 0.30 + $0.45 + $0.22 = $ 3.27
Revenue/Ton=2000lbs/tonx0.007x0.90 =12.6lbsx$0.85lb/ton= $10.71/ton
Profit/ton = $ 10.71/ton - $3.27/ton = $ 7.44/ton

b) Cut-off Grade = $ 3.27/ton = 4.27 lbs (4.27lbs/2000lbs/ton)


0.85/lb x 0.90 or 0.21% Cu
• Problem: A newly-opened mine was explored
for its nickel/cobalt deposit in Nonoc Island,
Surigao, Mindanao. The exploration results
showed that the mine had a total minable
reserve of 123,590,000 metric tons of ore.
What is the life of the mine in years if the daily
production 15,000 MT/day?
Solution:
Life of the Mine = 123,590,000 MT
15,000 MT
= 8,239.33 x 1year
365 days
= 22.5 years or 23 years
• Requirements in Computerized
Resource Estimation
1. Drillhole Number or other identification
2. Hole length, collar coordinates, and downhole
surveys
3. Sample intervals and assay data
4. Geologic data such as lithology, alteration,
oxidation
5. Statistical analysis
6. Geologic data such as lithology, alteration,
oxidation
7. Geotechnical data such as RQD

• Geologic Modelling – is reconstruction of the
three-dimensional geologic picture of a
deposit from a handful of sample data. The
process combines the power of imagination
with mathematical formulations to arrive a
satisfactory model.
• To model a property, three (3) pieces of
information are necessary :
1) topography;
2) geologic input;
3) assay data
• Three (3) Major Geologic Modelling
Processes
1. Gridded Model – used for bedded deposit
such as coal, phosphate, sulfur, limestone,
oil shale, tar sand;
2. Block Model –used for disseminated
deposits such as porphyry copper,
uranium, gold, etc.
3. Cross-sectional Model – used for complex
folded and faulted or steeply dipping
deposits.
Methods of Ore Reserve
Estimations
1. Computerized Method
2. Traditional/Manual Geometric Methods
a. Area Averaging/Block Method
b. Triangular
c. Polygonal
d. Cross-section
e. Diamond Method
• Computerized Method:
The use of digital computers with large storage
capacities and higher speeds help in arriving
credible ore reserve estimates.
A computing equipment used in Ore Reserve
Estimation must consist of the following:
•Terminal, usually with graphic capability
•Coordinate digitizer
•Hard-copy plotter
• Requirements for Computerized
Resource Estimation
1. Drillhole Number or other identification
2. Hole length, collar coordinates, & downhole
surveys
3. Sample intervals and assay data
4. Geologic data such as lithology, alteration,
oxidation
5. Statistical analysis
6. Geologic data such as lithology, alteration,
oxidation
7. Geotechnical data such as RQD
• TRADITIONAL GEOMETRIC METHODS
To select a Resource Estimation Method will depend
on the following:
1. Geometry of the deposit – determine the amount
of detail to interpret the input in resource estimate
2. Variability of the grade distribution – determines
the amount of smoothing threat is required to
estimate minable blocks
3. Character of the ore boundaries – determines
how grade will be estimated at the borders between
different grade zones
4. Available time and money – determine the effort
that will be expended on the estimate
Types of Computerized Methods
of Ore Reserve Estimations
1. Inverse Distance Weighting – is the earliest
used interpolation methods. It is a relationship
applied for resource estimation, whereby the
influence of a particular sample is inversely
weighted according to, for example, the square
or cube of the distance from another point.
2. Kriging –– a mathematical means of projecting
grades into resource blocks from a range of
sample points to provide unbiased weighted
estimation of a block value when the
geostatistical special relationship is identified.
• Basic Procedure Using the 2 Methods
1. Divide the ore body into a matrix of rectangular
blocks;
2. If geologic controls are present and will be used to
control or modify grade assignment, a geologic
code must be assigned to each block;
3. Estimate grade of each block by searching the data-
base for the samples surrounding each block and
computing the weighted average of those samples
The weighted average is computed using equation:
g* = ∑ wi gi i= 1,2,3,….n
where: g* = estimated grade
gi = grade of sample
w = weight given to sample, i
n = number of sample selected
• Area Averaging/Block Method:
It is simplest method of all ore reserve
estimation involving of only a geologic
interpretation of the shape of the ore and
averaging the grades with that shape as
follows:
a) Draw the outline of the ore body on
each map. These are the ore blocks and
maybe regular or irregular in shape. If
several ore zones or ore types are
present, each is drawn individually.
b) Measure the area of each block (usually by
planimeter). Multiply the AREA X THICKNESS
of the ore and divide the resulting VOLUME (cu
ft) by the Tonnage Factor (ft3/ton) to compute
tons of ore. Multiply the VOLUME (cu.mtrs) by
the density (tonnes/m3) to compute the tonnes
of ore;
Tonnage factor = 2000 lb/ton
Sp Gr (rock) X 62.4 lb/ft3
Volume of Ore = volume ( cu ft)
Tonnage factor
Tonnes of Ore = volume(m3) x density
(tonnes/m3)
c) Compute the average grade of samples within
each block.
d) Calculate the sum of the tonnage in the
individual blocks. Average grade is the
tonnage-weighted average grade of the
individual blocks.
Applicability: Provide excellent estimates where
the drilling pattern is in uniform; grades are
continuous; ore boundaries are distinct and
sharp.
• Mean – Area/Area Averaging Method
Step 1 – Graphic display of prospect data
90’ 100’ 100’ 120’
1 2 3 4 5
Line C 1 2 3 4 5
Line C
S S S3 S4
9c 15c 23c 20c 4c 1
2 30
40 40
60 50
250 m

100’ 100’ 75’


1 2 3 4 1 2 3 4
Line D
17c 29c 25c 10c S5 S6 S7
Line D
20
30 40
50
Step 2 – Determine Segment Areas
Drillline Segment Hole Depth (m) Average Width (m) Area,
Numbers Depth (m) (sq. m)
C S1 C-1 40 50 90 500
C-2 60
C S2 C-2 60 55 100 611
C-3 50
C S3 C-3 50 45 100 500
C-4 40
C S4 C-4 40 35 120 466
C-5 30

D S5 D-1 30 40 100 444


D-2 50
D S6 D-2 50 45 100 500
D-3 40
D S7 D-3 40 30 75 250
D-4 20
Step 3 – Determine weighted values
Drillline Segment Hole Depth (m) Value DxV Weighted Area (sq m) A x Value
Value

C S1 C-1 40 9c 360 12.6c 500 6,300


C-2 60 15c 900
100 1260
C S2 C-2 60 15c 900 18.6c 611 11,365
C-3 50 23c 1150
110 2050
C S3 C-3 50 23c 1150 21.6c 500 10,000
C-4 40 20c 800
90 1950
C S4 C-4 40 20c 800 13.2c 466 6,150
C-5 30 4c 120
70 920
Area Line C 2,077 34,615
D S5 D-1 30 17c 510 24.5c 444 10,878
D-2 50 29c 1450
80 1960
D S6 D-2 50 29c 1450 27.1c 500 13,500
D-3 40 25c 1000
90 2450
D S7 C-4 40 25c 1000 20.0c 250 5,000
C-5 30 10c 200
70 1200
Ave. value of line C = 34,615/2,077 = 16.7c/m3
Ave. value of line D – 29,378/1,194 = 24.6c/m3 Area Line C 1,194 29,378
Step 4- Block Volume and Value
Block Area of Line C + Area of Line D
= X dist between lines
Volume 2
= 2,077 sq m + 1,194 sq m
X 250 meter
2
= 408,875 cubic meters
Average Sum of A x V
Value = Sum of A
= 34,615 + 29,378
2,077 + 1,194
= 19.5c per cubic meter
Gross Value of Block = 408,875 m3 x $0.195
= $79,730
Triangular Method
1. The volume equals the average of the depth of drillholes x area of triangle;
2. The average mineral content is equal to the value of each of the 3 holes x
depth of each hole divided by sum of the depth of the 3 holes;
3. The total volume equals the summation of values in Step 1
4. Total mineral content equals the total volume in Step 3 x the average from
Step 2.
0.17 3 Triangle Grade Area
2
0.21 124 0.277 14.5
1 146 0.223 21.6
0.12
235 0.237 21.1
5
245 0.346 26.2
0.33
4 8 358 0.217 14.9
0.50 457 0.363 28.2
0.15
467 0.270 29.7
578 0.247 22.30
6 0.26 7
0.05
Total Area = 178.5 Average Grade = 0.280
Total Area x Grade = 49.9
▲ Hole Depth Value D x Value Ave Wtd Area 1/ Volume Value
(m) (¢) Depth Value (¢) (m2) (m3) ($)
No.
(m)

124 1 40 33.4 1336 36.6 26.52 20,500 250,100 66,326


2 40 = 110 20.5 820 = 2912
3 30 25.2 756

146 1 22 37.2 818 34.0 29.16 17,700 200,010 58,323


4 40 = 102 33.4 1336 = 2974
6 40 20.5 820

235 2 22 37.2 818 30.7 27.06 20,500 209,100 56,582


3 40 = 92 20.5 820 = 2490
5 30 28.4 852

245 2 40 33.4 1336 36.6 34.24 30,100 367,220 125,736


4 40 = 110 41.8 1672 = 3764
5 30 25.2 756

358 3 30 40.5 1215 36.6 34.43 16,800 204,960 78,766


5 40 = 110 33.4 1336 = 4223
8 40 41.8 1672

457 4 33 45.4 1498 34.3 39.32 19,650 224,910 88,080


5 30 = 102 40.5 1215 = 4049
7 40 33.4 1336

467 4 33 45.4 1498 31.7 38.42 22,850 242,210 93,057


6 22 = 95 37.2 818 = 3652
7 40 33.4 1336

578 5 33 45.4 1498 28.3 41.80 13,100 123,140 51,473


7 22 = 85 37.2 818 = 3565
8 30 38.3 1149

TOTALS 161,200 1,820,750 $ 618,343


• Total Volume = 1,820,750 m3
• Gross Value = $ 618,343
• Average Value = $ 0.34 or
= 34.0¢
. Polygonal Method
The polygonal method assumes that all
characteristics of a mineral body extend
halfway between a point of observation and any
other points of observation. The colored portion
of mineral body is represented by polygonal
prisms whose depths relate to the
characteristics in question (grade, thickness,
etc.) and whose plane bases relate to the area
of influence of each point of observation
(drillhole, etc). The polygons must be
constructed in a definite order, usually
clockwise and from the periphery to the center
of the deposit
• Polygonal Method
1. The total volume equals the sum of the volume
of each polygon. Find the volume of polygon by
multiplying the area of the polygon x depth of
the drillhole or thickness of the vein.
2. The total mineral content equals the sum of the
grades of each hole x the volume of each
polygon.
3. The average grade equals the value in Step 2
divided by the value in Step 1.
For irregular polygon, the area may be found
using planimeter or by dividing the polygon into
regular triangles and rectangles.
• Problem
Using the methods of polygons, determine the average vein
thickness and tonnage of gold deposit by the following
information if gold weighs 0.04 tons/cu ft.
Drillhole Vein Thickness Coordinates
1 4.3 2000E 1000N
2 6.2 4000E 1000N
3 5.8 6000E 1000N
4 5.7 1000E 1000N
5 5.3 3000E 3000N
6 6.1 5000E 3000N
7 4.9 7000E 3000N
8 4.8 2000E 3000N
9 5.9 4000E 5000N
10 5.4 6000E 5000N
11 6.0 1000E 7000N
12 5.3 3000E 7000N
13 5.5 5000E 2000N
14 5.7 7000E 7000N
• Chessboard Polygon
11 12 13 14

8
9 10

6
5 7
4

1 2 3
•. 8 9

500

5
1500
4 6

2,000 ft.

1 2
• Thus, the area of confluence is
= 2(1/2bh) + (bh)=2(1/2(2000x500) + (1500x2000)
= 2 triangles + rectangle = 4,000,000 sq ft.
• This means that the area of confluence for Holes 5,6,8,9,10 is 4,000,000 sq ft; the area of
confluence for Holes 1,2,3,4,7,12 & 13 is 2,000,000 sq ft and the area of confluence for Holes
11 & 14 is 1,000,000
• Tabulating the Information
Drillhole Vein Thickness x Area Volume
of Confluence
1 4.3 x 2,000,000 = 8,600,000
2 6.2 x 2,000,000 = 12,400,000
3 5.8 x 2,000,000 = 11,600,000
4 5.7 x 2,000,000 = 11,400,000
5 5.3 x 4,000,000 = 21,200,000
6 6.1 x 4,000,000 = 24,400.000
7 4.9 x 2,000,000 = 9,800,000
8 4.8 x 4,000,000 = 19,200,000
9 5.9 x 4,000,000 = 23,600.000
10 5.4 x 4,000,000 = 21,600,000
11 6.0 x 1,000,000 = 6,000,000
12 5.3 x 2,000,000 = 10,600,000
13 5.5 x 2,000,000 = 11,000,000
14 5.7 x 1,000,000 = 5,700,000
• 36,000,000 sq ft 197,100,000 cu ft

Average Vein Thickness = 197,100,000/36,000,000 sq ft = 5.48 ft


Tonnage = 197,100,000 cu ft x 0.04 tons/cu ft = 7,884,000 tons
• Geometric Patterns for Ore Reserve
Calculation
Ore hole
Non Ore
hole

Uniform rectangular blocks

Uniform triangular blocks


• Sample Calculation (Samples at regular interval)
Sample Width Copper Width x Assay
Number (ft) Assay
1 1.2 16.8% 20.2
2 3.2 6.3 20.2
3 6.4 7.1 45.4
4 5.3 9.2 48.8
5 2.1 6.8 14.3
Totals 18.2 46.2 148.9
Average Width = 18.2 / 5 = 3.6 feet
Average Assay = 46.2/5 = 9.2% Cu
• Cross Section (very similar to that of the triangle
and may be used as a check).
1) Area of a cross section is the average of the depths of
the boreholes times the distance between boreholes.
2) The total volume is one-half the sum of the areas of all
individual sections A and B times the distance between
traverse, L.
3. The mineral content is the sum of the mineral content
of each section. The mineral content of the section is
the volume of the section times the value of the
drillhole.
4) The average grade is the value in Step 3 divided by
the value in Step 2.
• Cross Section Sketch
A

d
• Diamond Method
The diamond method is much the same as that of
triangles. The drillhole is located at the center of the
diamond and apexes midway between drill holes on
adjacent lines. This method is best suited for regularly
spaced holes. The total area is equal to the sum of all
diamonds that may be treated as right triangles.
1) Total volume equals the area of each diamond (A) x
depth of each hole.
2) Total mineral value equals the sum of mineral value
in each hole x the volume of each diamond.
3) To find the value per m3 or yd3, divide the value in
Step 2 by the value in Step 1
• Diamond Sketch

d
Coal Reserve Estimations
• To estimate a coal reserve the following
are needed:
– Reserve Quantity
– Reserve Quality
– Optimal Mining Method
– Outcrop Determination
– Seam Structure
• Coal Reserve Classification
1. Measured : are coal tonnage computed from
seam measurements as observed from
diamond drill cores, mine workings or
seam outcrop/opening;
2. Indicated : are coal tonnage computed partly
from inference of published geologic
sources and use of available seam data
point;
3. Inferred : are coal tonnage located beyond the
limit of the identified classification.
• Reserve Category
Group I : Reserves presently being mined or
similar to those being extracted. The
reserve has favorable potential for
development,
Group 2 : Reserves which appear to be
economically minable under
favorable market conditions.
Group 3 : Reserves which appear to have
uncertain mining potential because
of less favorable seam height or
mining condition.
Coal Reserve Calculation
Types of Coal Reserve Calculation:
1. Construction of Isopach Maps (lineal
interpolation)
2. Polygon Construction
3. Computerization
Isopach Map – a map defined by means of
contour lines and thickness of the deposit.
Polygon – uses perpendicular bisectors to define
area of influence for each seam thickness data
point and is assigned an area of seam
thickness provided by a planimeter.
After the exploration geologist maps the extent and thickness of
minable coal and the depth of overburden, the calculation of
reserves begins. Reserves are first calculated for in place coal
(i.e. coal in the ground). To calculate the reserve using the
formula:
In place tons = C x A x 1359 x SP
where:
C = thickness of minable coal in ft;
A = number of acres of minable coal
1359 = represents the number of tons of coal
per acre foot at 1.0 Sp Gr.
SG = specific gravity
Where the specific gravity of a seam is unknown, an average
specific gravity may be assumed:
Rank Specific Gravity
Anthracite 1.47
Bituminous 1.32
Subbituminous 1.30
Lignite 1.29
• In place reserves are converted to recoverable and
clean recoverable reserves (marketable reserves) by
applying mine and preparation of plant recovery
factors. These factors are based upon mining
experience in the area and washability studies. The
following mine recovery factors are commonly used:
Mining Methods Recovery Factor
Deep mines; conventional
and conventional mining 50% to 80%
Longwall & shortwall methods 70%
Surface Mines: all methods 85%
The clean recoverable reserve is calculated as follows:
Clean Recoverable = In place tons x % mining recovery x % prep plant recovery
Coal, tons
Other Common Exploration
Terms
• Alluvial/Placer Gold – gold transported and
deposited by river action, and mined from river
sediments.
• Anomaly – zone or point in the soil or underlying
rock determined by exploration methods to be
different from its general surroundings.
• Block Model – the term applied to the final
output of a computed-based process to reflect
the likely configuration of the mineralization and
the surrounding material.
• Disseminated – mineral grains are scattered
throughout the host rock.
• Geostatistics – a computer-based
methodology wherein particular relationship
between sample points are established and
employed to project the influence of the sample
points for grade estimation and variability.
• Grade – quantity of metal per unit weight of
host rock.
• Grassroots Estimation – initial stages of
mineral exploration program involving a
preliminary assessment of potential.
• Grid – a method of systematically marking a
study area.
• Inferred mineral resource – a mineral resource
inferred from geoscientific evidence, drill holes, U/G
openings or samplings where the lack of data is such
that continuity cannot be predicted by confidence.
• Measured mineral resource – a resource intersected
and tested by drillholes, U/G openings, or other
sampling procedures at locations that are spaced
closely enough to confirm continuity of mineralization.
• Hydrocarbon – class of compounds containing only
carbon and hydrogen, generally referring to natural
gas and petroleum products.
• Mineral Resource – an identified in-situ mineral
occurrence from which valuable minerals maybe
recovered.
• Shoot – a general term describing lens-like bodies of
mineralization defined by grade and thickness
parameters.
Types of Metals Based on World
Metal Prices
• Precious Metals ($/oz)
Gold Palladium
Silver Rhodium
Platinum

• Base Metals ($/lb)


Aluminum Nickel
Copper Tin
Lead Zinc
ORE RESERVE
ESTIMATION PROBLEMS
1. Lepanto Consolidated conducted a detailed drilling exploration on its
copper/gold deposit in Pantukan, Compostela Valley. The drilling results
showed the following:
Orebody Positive Reserve (MT) Grade,% Cu Grade, % Au
1 500 M 10.10 0.9
2 350 M 6.90 0.8
3 250 M 7.92 0.6
4 190 M 9.03 0.7
Calculate the following:
a) Average grade of Cu and Au;
b) If the concentrator will require a milling grade of 8.5% Cu/ton, how many
tons of copper ore will be blended to meet the milling requirement;
c) Likewise, if the mill require an average of 0.75% Au/ton, how may tons of
ore will each orebody will be blended to meet the milling grade;
d) If the mine has a daily production of 12,000 MT/day, what is life of the
mine?
e) If the orebodies are to mined simultaneously, how many tons of ore are to
be taken from each orebody to meet the mine daily production capacity?.
f) What is the cycle time (mine-crusher-vice versa) of the hauling operation
considering that there are only 20 Haulpack (120-tonners cap) are
available for operation?
g) What is the distance from the mine to the crusher if the Haulpack travels at 30
km per hour?
2. A newly-opened mine was explored for its nickel/cobalt deposit
in Nonoc Island, Surigao, Mindanao. The exploration results
showed the following:
Orebody Ore Reserve (MT) Grade,% NiGrade, % Co
Alpha 46,867,500 10.10 1.9
Omega 35,350,183 6.90 2.8
Beta 22, 253,451 7.92 3.6
Legis 19, 120,150 9.03 3.9
Calculate the following:
a) Average grade of Ni and Co of the entire orebody;
b) If the mine will have a cut-off grade of 7.5% Ni/ton, how many
tons of ore will be blended from each ore body to meet the milling
requirement;
c) Likewise, if the mill require an average of 2.5% Co/ton, how may tons of
ore will be blended from each ore body to meet the cut-off grade;
d) What is the life of the mine if the daily production is 60,000 MT/day?
e) If the ore bodies are mined simultaneously, how many tons of ore
are taken daily from each ore body to attain the daily mine production?
f) How many trucks are to be deployed to each ore body to attain the target
daily production capacity of the mine if the cycle time is 45 minutes?
3. Problem: A steeply dipping and almost vertical gold
vein 3.6 meters was encountered at depth 150 meters
below surface to a strike length of 400 meters until it
was intercepted by a younger intrusive formation. The
same gold vein was intercepted at elevation 800
meters at about the same coordinates as at 150
meters and followed it to a length of 400 meters until it
was cut by the same intrusive. Assuming a consistent
thickness of the vein, how much ore reserve is there if
the material has a specific gravity of 2.5.
• Elev. 150 400 m
400 m

• Elev. 550 400m


Ore Reserve = 400m x 400m x 3.6m x 2.5 MT/m3
• = 1,440,000MT
4. An old copper waste dump of Atlas Consolidated
Mining was suspected to be rich in gold. It was
explored by test pitting arranged in a 100-meter grid. If
the waste dump measures 300m x 300m and the
depths of test pits and values are shown in the figures.
Determine the value of the entire remaining deposit in
terms of gold content.
• 6.0/2.0 5.8/5.9 5.3/3.1 6.1/2.0
100m
5.5/3.6 4.8/3.1 5.4/2.7 5.9/3.1
100m
4.8/3.2 3.8/2.8 4.6/2.2 5.7/3.6
100m
5.3/4.5 4.7/4.5 5.1/3.9 5.6/2.5
100m 100m 100m
Solution:
Tonnage Factor: 1 cubic meter (m3) = 2.0 tons
Test Pit Depth Value, gm/MT Area, Volume, Tonnage. Tonnage x Value
No. (m) m2 m3 MT (MT x gm/MT)

1 6.0 2.0 50 x 50 15,000 30,000 60,000


2 5.8 5.9 50 x 100 29,000 58,000 342,000
3 5.3 3.1 50 x 100 26,500 53,000 164,300
4 6.1 2.8 50 x 50 15,250 30,500 85,400
5 5.5 3.6 100 x 50 27,500 55,000 198,000
6 4.8 3.1 100 x 100 48,000 96,000 297,600
7 5.4 2.7 100 x 100 54,000 108,000 291.600
8 5.9 3.1 100 x 50 29,500 59,000 182,900
9 4.8 3.2 100 x 50 24,000 48,000 153,600
10 3.8 2.8 100 x 100 38,000 76,000 212,800
11 4.6 2.2 100 x 100 46,000 92,000 202,400
12 5.7 3.6 100 x 50 28,500 57,000 205,200
13 5.3 4.5 50 x 50 13,500 26,500 199,200
14 4.7 4.5 50 x 100 23,500 47,000 211,500
15 5.1 3.9 50 x 100 25,500 51,000 108,900
16 5.6 2.5 50 x 50 14,000 28,000 70,000

TOTAL 915,000 2,995,650

Therefore:
Average Value = Tonnage x Value = 2,995,650 x gm/MT = 3.274 gm Au /MT
Tonnage 915,000 MT
5. A high grade gold vein was sampled by channel
sampling and showed the following assays:
Sample No. Width(cm) Assay(gmt)
1 15 3.0
2 12 3.5
3 10 5.1
4 12 5.5
5 15 6.0
6 15 6.3
7 18 7.3
8 17 8.8
9 19 8.5
10 18 9.0
Assuming that the samples were taken at regular
intervals, what is the average grade of the gold vein?
Solution:
Sample Width Assay Width x Assay
No. (cm) (gmt)
1 15 3.0 45.0
2 12 3.5 42.0
3 10 5.1 51.0
4 12 5.5 66.0
5 15 6.0 90.0
6 15 6.3 94.5
7 18 7.3 131.4
8 17 8.8 149.6
9 19 8.5 161.5
10 18 9.0 162.0
Total 151 993
Average Grade = Total (Width x Assay) = 993 = 6.58gmt
Total Width 151
6. A newly found mineral prospect is suspected to be rich in gold.
It was explored initially by test pitting arranged in a 100-meter
grid. If the area of interest measures 300m x 300m and the
depths of test pits and values are shown below. Determine the
value of the entire deposit in terms of gold content.

6.0/2.0 5.8/5.9 5.3/3.1 6.1/2.8

100m
5.5/3.6 4.8/3.1 5.4/2.7 5.9/3.1

100m
4.8/3.2 3.8/2.8 4.6/2.2 5.7/3.6

100m
5.3/4.5 4.7/4.5 5.1/3.9 5.6/2.5

100m 100m 100m


7. A 500-acre coal prospect is planned to be
mined to supply to a 200-MW Kepco Coal
Power Plant. Based on the results of
exploration, the following data were provided:
Type of Coal : Subbituminous
Thickness of Seam : 42 inches
Mining Recovery, per ton : 85%
Processing Recovery : 88%
Calculate the following:
a) Total in-place tonnage of the coal deposit;
b) Total clean recoverable, tons if it will be
mined by open pit mining.
• Solution
Given:
Type of Coal = Subbituminous
Thickness of coal seam = 42 inches
Area of Coal Deposit = 500 acres
Specific Gravity = 1.3
Mining Recovery = 85%
Processing/Washing Recovery = 88%
a) Total in-place coal, = 42in x 500 x 1359 x 1.3
tons 12in/ft
= 3,091,725 tons
b) Clean Recoverable = 3,091,725 x 0.85 x 0.88
coal
= 2,312,610.30 tons
8. Semirara Coal Corp. located in Semirara Island, Caluya,
Antique planned to expand its open pit mining operation of their
newly found coal prospect about 20 kms east of the existing
mine pit. The new coal deposit is about 500 hectares of high
grade bituminous coal. Based on drilling exploration conducted
in 1990, it has an average thickness of 120 inches but its only
85% of the deposit can be considered for mining due to the
remaining 15% of coal deposit contain high sulfur content. SCC
obtained a new loan from DBP to improve its processing plant
thus increasing its clean coal recovery to 88%. Compute the
following:
a) Total Minable coal tonnage, in place
b) Total recoverable tonnage of clean coal
c) Total revenues of clean if the selling price is
at P 2,850.00/ton
d) If the remaining 15% of the coal deposit containing high
sulfur content will be mined but a penalty equivalent to 1.5% of
the value will be deducted, how much is additional revenue
expected by the mining company.
• Solution:
Given:
Type of Coal : Bituminous
Seam Thickness : 120 inches
Area of Prospect : 500 hectares
Mining Method : Open pit
Recovery Factor : 85%
Processing : 88%
Specific Gravity : 1.32
1 hectare : 2.471 acre
Buying Price of Coal : P 2,850.00/ton

a) Total Minable Coal=(120in) (500 ha x2.47/acre/hax0.85)(1359)(1.32)=3,631,336.03 tons


12in/ft
b) Total Recoverable Clean Coal = 3,086,635.62 tons x 0.88
100
= 27,162.39 tons tons
c) Total Revenue = P2,850 x 27,162.39 tons = P 77,412,821.48
d) Revenue from 15% Deposit w/ high S content
Minable Coal = ( 120in) x (500x2.471x0.15)x 1359 x 1.32= 544,700.40 tons
12in/ft
Clean Coal = 544,700.40 tons x 0.88 = 4,793.36 tons
= 4,793.36 tons x P 2,850/ton = P 13,661,076.00
= P13,661,076.00 - (P13,661,076.00 x 1.5%)
= P13,661,076.00 – P 204,916.14
= P 1,156,159.86
Over-all Total Revenue = P 77,412,821.48 + P 1,156,159.86
= P 78,568,981.34
9. PNOC Coal Corporation want to mine its 300-acre coal
prospect located in Imelda, Zamboanga-Sibuguey, Mindanao.
The coal type consist of subbituminous and bituminous and
considered as ideal fuel for the newly commissioned 200-MW
Mindanao Coal Power Plant in Jasa-an, Misamis Oriental.
Drilling results conducted at site revealed that the coal seam
has an average thickness of about 72 inches which comprised
60% of bituminous coal. The company intend to mined the coal
by “Longwall method” to maximize recovery. If the recovery
factor of mining is about 70%, determine the following:
a) total tonnage of in-place coal;
b) clean recoverable coal if the designed
processing/washing method has a recovery rate of
90%;
c) total revenues of clean coal if the buying price
is P2,500.00/ton.

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