Pr Tip Indicator

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    Resource Modeling Inc. 29th

    Annual Mintec SeminarMay 7-11, 2012 Tucson, AZ

    Simple Indicator &

    Nearest Neighbor

    Tricks

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    Resource Modeling Inc. 29th

    Annual Mintec SeminarMay 7-11, 2012 Tucson, AZ

    Topics

    Quantify continuous mineralized lengths by

    using indicators to control compositing

    Calculate dilution & ore loss by composite length

    Define mineralized continuity using indicator

    methods to classify resources

    Modify resource categories using nearest

    neighbor methods

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    Resource Modeling Inc. 29th

    Annual Mintec SeminarMay 7-11, 2012 Tucson, AZ

    Using Indicators to Examine Mineralization

    Set indicator flags in assay file

    Create separate composite files for each cutoff

    Build comps using indicator flag as geology

    Assemble statistics for each cutoff grade

    Quick Start

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    Resource Modeling Inc. 29th

    Annual Mintec SeminarMay 7-11, 2012 Tucson, AZ

    Continuous Mineralized Lengths

    Need grade indicator flag item(s) for fi le 11

    Need composite file 9 & associated file 12

    (e.g. IND1 & IND2 with min=0; max=1; prec.=1)

    One pair for each cutoff grade to be examined

    File 11 Operations

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    Resource Modeling Inc. 29th

    Annual Mintec SeminarMay 7-11, 2012 Tucson, AZ

    Use Multi-runs to Set Indicators

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    Resource Modeling Inc. 29th

    Annual Mintec SeminarMay 7-11, 2012 Tucson, AZ

    Use Cutoff Grades to Set Indicators

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    Resource Modeling Inc. 29th

    Annual Mintec SeminarMay 7-11, 2012 Tucson, AZ

    Composite Grades Using Indicator Item as Geology

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    Resource Modeling Inc. 29th

    Annual Mintec SeminarMay 7-11, 2012 Tucson, AZ

    Use Multi-runs Vary File Function for each Cutoff

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    Resource Modeling Inc. 29th

    Annual Mintec SeminarMay 7-11, 2012 Tucson, AZ

    Compositing Indicator to Get Mineralized Length

    0

    0

    1

    1

    0

    0

    0

    0

    File 11

    One 2m

    length

    File 9

    0

    1

    0

    1

    1

    0

    0

    0

    File 11

    One 1m & one

    2m length

    File 9

    0

    1

    1

    1

    1

    1

    0

    0

    File 11

    One 5m

    length

    File 9

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    Resource Modeling Inc. 29th

    Annual Mintec SeminarMay 7-11, 2012 Tucson, AZ

    Calculate Statistics by Cutoff Grade

    Could use MDSA to assemble stats

    Could export out CSV files for Excel

    Could calculate stats using scripts

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    Resource Modeling Inc. 29th

    Annual Mintec SeminarMay 7-11, 2012 Tucson, AZ

    Continuous Mineralized Lengths Above 0.5 g/t

    0.00 to 0.50 206 99 2.94 99 1% 1%

    0.50 to 1.00 3,218 3,062 2.31 3,161 31% 32%

    1.00 to 1.50 402 496 2.24 3,657 5% 37%

    1.50 to 2.00 873 1,698 2.45 5,355 17% 54%

    2.00 to 2.50 100 227 2.45 5,582 2% 57%

    2.50 to 3.00 337 998 2.68 6,579 10% 67%

    3.00 to 3.50 54 175 1.81 6,754 2% 69%

    3.50 to 4.00 154 609 2.63 7,363 6% 75%4.00 to 4.50 18 77 3.47 7,440 1% 75%

    4.50 to 5.00 98 485 1.97 7,926 5% 80%

    5.00 to 5.50 13 69 1.27 7,994 1% 81%

    5.50 to 6.00 53 314 2.68 8,308 3% 84%

    6.00 to 6.50 8 50 2.61 8,359 1% 85%

    6.50 to 7.00 32 223 2.62 8,581 2% 87%

    7.00 to 7.50 4 29 1.37 8,611 0% 87%

    7.50 to 8.00 19 152 2.14 8,763 2% 89%8.00 to 8.50 5 41 3.40 8,804 0% 89%

    8.50 to 9.00 10 90 2.02 8,893 1% 90%

    9.00 to 9.50 4 37 1.82 8,930 0% 91%

    9.50 to 10.00 16 159 2.46 9,089 2% 92%

    > 10.00 47 769 2.95 9,858 8% 100%

    Total 5,671 9,858 2.45 9,858 100% 100%

    Length (m) Count Meters

    Cumulative

    Meters

    % of

    Total

    Cumulative

    %

    Mean Au

    (g/t)

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    Resource Modeling Inc. 29th

    Annual Mintec SeminarMay 7-11, 2012 Tucson, AZ

    Distribution of Mineralized Lengths

    0%

    7%

    14%

    21%

    28%

    35%

    PercentageofTotal

    Continuous Mineralized Length (m)

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    Resource Modeling Inc. 29th

    Annual Mintec SeminarMay 7-11, 2012 Tucson, AZ

    Graphing Data

    0%

    20%

    40%

    60%

    80%

    100%

    0%

    7%

    14%

    21%

    28%

    35%

    PercentageofTotal

    Continuous Mineralized Length (m)

    50%

    ~ 1.6m

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    Resource Modeling Inc. 29th

    Annual Mintec SeminarMay 7-11, 2012 Tucson, AZ

    Mineralized Lengths vs. Cutoff Grade

    0%

    20%

    40%

    60%

    80%

    100%

    Cumulative%

    ofData

    Continuous Mineralized Length (m)

    0.10 g/t 050 g/t 0.90 g/t

    50% ~ 5m long

    50% ~ 1.5m long

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    Resource Modeling Inc. 29th

    Annual Mintec SeminarMay 7-11, 2012 Tucson, AZ

    Dilution (Internal)

    Defined as % of material below a cutoff grade

    Could be % of waste tonnage in an ore block

    or could be % of waste meters in a composite

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    Resource Modeling Inc. 29th

    Annual Mintec SeminarMay 7-11, 2012 Tucson, AZ

    Ore Loss

    Defined as % of contained metal lost when

    sample drops below cutoff grade due to dilution

    5m

    Composite

    0.45

    AUPPM @ a 0.50 g/t cutoffthe 5m composite

    falls below that cutoff

    so

    a grade * thicknessproduct of 1.5 g/t-m

    is considered lost

    Raw

    Samples

    0.05

    0.15

    0.25

    0.30

    1.50

    AUPPM

    Grade * thickness = 1.50 g/t-m

    1.0

    1.0

    1.0

    1.0

    1.0

    -AI-

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    Resource Modeling Inc. 29th

    Annual Mintec SeminarMay 7-11, 2012 Tucson, AZ

    Using Indicators to Calculate Dilution & Ore Loss

    Set indicator flags in assay file & calculate GT

    Create separate composite file for each length

    Build fixed length composites (grade, indicator, GT)

    Assemble statistics for each length & cutoff grade

    Quick Start

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    Resource Modeling Inc. 29th

    Annual Mintec SeminarMay 7-11, 2012 Tucson, AZ

    Calculating Dilution for Each Composite

    @ 0.50 g/t cutoff

    3m out of 5m are

    below cutoff

    0.00 to 0.50 g/t

    0.50 to 1.00 g/t

    1.00 to 2.00 g/t

    > 2.00 g/t

    Raw

    Samples

    0.10

    0.20

    0.45

    0.50

    2.501

    1

    0

    0

    0

    IND5 AUPPM

    5m

    Composite

    0.750.40

    IND5 AUPPM

    Resulting in

    60% internal dilution

    for this composite

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    Resource Modeling Inc. 29th

    Annual Mintec SeminarMay 7-11, 2012 Tucson, AZ

    Calculating Dilution by Composite Length

    Need indicator flag items for each cutoff grade

    Need grade * thickness item

    Set indicators based on cutoff grade

    Calculate grade * thickness product

    File 11 Operations

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    Resource Modeling Inc.29thAnnual Mintec Seminar

    May 7-11, 2012 Tucson, AZ

    Calculating Dilution by Composite Length

    Need indicator item for each cutoff grade

    note: precision needs to be 0.01

    Need grade * thickness items for each cutoff

    Composite grade, all indicator, and all G*T items

    for each composite file

    File 9 Operations

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    Resource Modeling Inc.29thAnnual Mintec Seminar

    May 7-11, 2012 Tucson, AZ

    Calculate Statistics by Composite Length

    Need tally (summation) of:

    Meters above cutoff grade

    Meters below cutoff grade

    Grade * thickness above cutoff

    For each composite file (different lengths)

    Grade * thickness below cutoff

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    Resource Modeling Inc.29thAnnual Mintec Seminar

    May 7-11, 2012 Tucson, AZ

    Dilution and Ore Loss Calculations

    With a tally of ore and waste lengths

    % Dilution can be calculated:

    % Dilution = [waste length / (waste length + ore length)] * 100

    With a tally of ore and waste grade * thicknesses

    % Ore Loss can be calculated:

    % Ore Loss = [ore GT / (ore GT + waste GT )] - 1

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    Resource Modeling Inc.29thAnnual Mintec Seminar

    May 7-11, 2012 Tucson, AZ

    Example of Calculated Dilution/Loss Statistics

    2.5 18,896 3.08 58,128 27.1 -2.9

    5.0 21,252 2.71 57,686 36.8 -4.0

    7.5 22,942 2.50 57,250 47.4 -5.0

    10.0 24,028 2.38 57,083 50.3 -5.3

    12.5 24,817 2.29 56,817 55.9 -5.8

    15.0 25,502 2.22 56,558 58.1 -6.2

    17.5 26,273 2.15 56,372 61.7 -6.5

    20.0 27,301 2.07 56,549 65.1 -6.3

    0.65 g/t Au Cutoff

    Comp

    LengthMeters Au (g/t) AuGT

    Dilution

    (%)

    Ore Loss

    (%)

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    Resource Modeling Inc.29thAnnual Mintec Seminar

    May 7-11, 2012 Tucson, AZ

    Grade Dilution vs. Composite Length

    25

    35

    45

    55

    65

    75

    2.5 5.0 7.5 10.0 12.5 15.0 17.5 20.0

    PercentDilution

    Composite Length (m)

    0.65 g/t Cutoff 0.85 g/t Cutoff

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    Resource Modeling Inc.29thAnnual Mintec Seminar

    May 7-11, 2012 Tucson, AZ

    Metal Loss vs. Composite Length

    -10.0

    -8.0

    -6.0

    -4.0

    -2.0

    0.0

    2.5 5.0 7.5 10.0 12.5 15.0 17.5 20.0

    OreLoss

    (%)

    Composite Length (m)

    0.65 g/t Cutoff 0.85 g/t Cutoff

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    Resource Modeling Inc.29thAnnual Mintec Seminar

    May 7-11, 2012 Tucson, AZ

    Grade * Thickness vs. Composite Length

    53,000

    54,200

    55,400

    56,600

    57,800

    59,000

    2.5 5.0 7.5 10.0 12.5 15.0 17.5 20.0

    AuGrade*ThicknessProduct

    Composite Length (m)

    0.65 g/t Cutoff 0.85 g/t Cutoff

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    Resource Modeling Inc.29thAnnual Mintec Seminar

    May 7-11, 2012 Tucson, AZ

    Indicator Models Used in Classification

    Mineralized continuity is the key to

    defining a resource

    Build an indicator model using

    an economic cutoff grade

    Examine indicator probability in plan

    and section to determine continuity

    Use probability as guide to draw shapes

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    Resource Modeling Inc.29thAnnual Mintec Seminar

    May 7-11, 2012 Tucson, AZ

    0.50

    4 out of 8

    Indicator Estimation

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    Resource Modeling Inc.29thAnnual Mintec Seminar

    May 7-11, 2012 Tucson, AZ

    Estimated Indicator Probability

    90 100%

    80 90%

    70 80%

    60 70%

    50 60%

    40 50%

    Indicator Probability

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    Resource Modeling Inc.29thAnnual Mintec Seminar

    May 7-11, 2012 Tucson, AZ

    Indicator Models Used in Classification

    Manually digiti ze

    shapes around higher probability

    blocks

    Code blocks inside

    polygons/solids as

    Indicated Resources

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    Resource Modeling Inc.29thAnnual Mintec Seminar

    May 7-11, 2012 Tucson, AZ

    Goofy Nearest Neighbor Tricks

    Re-assign resource categories to that of

    surrounding majority codes

    Poor mans version of Dilate and Erode

    Assign resource category based on proximity

    To underground workings

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    Resource Modeling Inc.29thAnnual Mintec Seminar

    May 7-11, 2012 Tucson, AZ

    Steps for Modifying Initial Classification

    Export out all Measured + Indicated Blocks

    Treat M&I block centroids as DH composites

    Interpolate dummy grades using M&I compsto capture number of comps used

    User calculation to change Inferred to Indicated

    if Inferred is surrounded by user specified numberof M&I blocks

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    Resource Modeling Inc.29thAnnual Mintec Seminar

    May 7-11, 2012 Tucson, AZ

    Indicator Models Used in Classification

    Indicated

    Inferred

    Search ellipse

    Inferred blocksurrounded

    by 8 Indicated

    blocks

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    Resource Modeling Inc.29thAnnual Mintec Seminar

    May 7-11, 2012 Tucson, AZ

    Resource ClassificationBased on Proximity to U/G Workings

    Grid stopes/drif ts/sub-levels etc.

    Treat stope grid points as DH composites

    Interpolate dummy grades using stope comps

    to capture distance to U/G workings

    User calculations to assign resource

    categories based on distance to workings

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    Resource Modeling Inc29thAnnual Mintec Seminar

    May 7 11 2012 Tucson AZ

    The End