Abstract

The valuation of a mining project depends upon the accuracy of geological block model. Sampling density, estimation method, and proper block size mainly affect the accuracy of estimated block. This paper aims to answer three questions: (1) which estimation method is more accurate, (2) what is the relation between sampling density and block size, and (3) what the optimum block size is. Conditional Gaussian simulation (CGS) was used to generate a hypothetical deposit, considered as a real block model. A range of different block dimensions were estimated by ordinary kriging, inverse squared distance, and nearest neighbor methods based on tow-simulated drilling grids database. The comparison of estimated and real block grades reveals that increasing the sampling density results the similar outcomes of geostatistics and deterministic interpolation methods. Furthermore, it was deduced that sampling density could not be a viable alternative in choosing appropriate block dimension and the variogram rang a was suggested as an affective parameter in block size selection. Then a geometrical formula was developed to obtain the block size based on the variogram range. The increment in project value that a mine planner can expected from the additional information of the dense drilling grid was also calculated and it was concluded that the block size obtained based on the suggested formula results acceptable information value. Finally, the database of Chador Malu iron ore mine which is located in 180 km northeast of Yazd city in the central part of Iran were used to validate the suggested formula.