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CHAPTER 3: The Volume -- Variance Relationship

 

GRADE/TONNAGE CURVES

So, we now know how to calculate the function
F for one, two and three dimensions, and hence can state the difference between the ‘point’ variance and the ‘regularised’ variance of regular shaped areas and volumes. This will give us a numerical quantity for the reduction in the variance, but unless we make some assumptions about the distribution of the samples, we cannot actually quantify the change in the ‘tonnage above cutoff’ and so on. There are two ways to approach the problem:

                                               i.            Assume that the histogram of the samples represents the whole deposit accurately.

                                              ii.            Assume that the histogram represents a set of samples from the whole deposit, and as such contains some random variation from the ‘population’ distribution.


The first approach declares that the samples are ‘typical’ of the whole deposit, and leads to graphical anamorphisms and transfer functions. The second approach declares the belief that if we could measure the grade at every point in the deposit we would end up with a smooth curve of a fairly simple form. This is a much simpler approach, and generally seems to be sufficient for most deposits.

To start with a simple example, let us consider an iron ore deposit which is known to follow a Normal distribution with a mean of 48%Fe  and a standard deviation of 5%Fe. This distribution has been established on samples small enough to be called ‘points’. We also know that the deposit follows a point semi-variogram model which is spherical with a range of influence of 400ft. Now, suppose that the mine plan is to be constructed on blocks which are 100ft by 100ft by 50ft. What will the distribution of these blocks look like. The first thing we can say is that it will probably be Normally distributed. It will certainly have the same mean (48%Fe)  as the ‘points’. The only change will be in the standard deviation of the distribution. We need to evaluate the function F(100,100,50) for a spherical model with a=400 and C=25. To use Table 3.5 we must ‘standardise’ the situation so that the range of influence becomes 1. That is, F(100,100,50)  for a=400 is the same as F(0.25,0.25,0.125) for a=1. Table 3.5 gives a value of 0.209  for these arguments, but this is for a model whose sill is 1. For our model the required value is 0.209´25=5.225(%Fe) ˛. This is the difference between the point variance and the block variance. Therefore the variance of the block values will be 25-5.225=19.775(%)˛  leading to a block standard deviation, sv, of 4.45%Fe. This is slightly over 10% less than the point standard deviation, as would be expected with such a ‘small’ block. Thus we have two distributions to be considered, both Normal, as follows:

 

                                                           i.point distribution: =48%Fe;;s=5%Fe

                                                          ii.block distribution: =48%Fe;;sv =4.45%Fe


These two distributions are shown in Fig. 3.12, and the reduction in spread for the block distribution can be clearly seen.

Fig. 3.12. Comparison of the distributions of points and blocks within a hypothetical iron ore deposit.

To see how the difference in the distributions will affect the grade--tonnage calculations, let us take as an example a cutoff grade of 44%Fe.

The proportion (P) of the distribution which is above cutoff is given by:

 

P = Pr{g > c}

 


where
g denotes the grade in general, and c the cutoff grade. Tables are widely available for the Standard Normal distribution, which tabulate the proportion of the Standard Normal distribution which lies below a given value z. For any other Normal distribution the z value is determined by taking the value of interest, subtracting the mean of the distribution, and dividing by the standard deviation. In our example, we are considering the cutoff grade, c, so that

 


The
Normal table will give us F(z), which is the probability of lying below the cutoff, so that

 


Thus, if we consider the distribution of the ‘point’ values, we obtain the following:

 


Consulting a Standard Normal table gives
F(z)=0.212 so that P=0.788. That is, about 79% of the deposit will lie above a cutoff of 44%Fe. The second question is the average grade of this ore. For the Normal distribution, the grade above cutoff is given by:

 


where
c denotes the grade above cutoff, and f(z) is the height of the standard normal curve at the value z, i.e.

 


For our example, then,
f(z)=0.290 so that:

 


To summarise, 78.8% of the ore lies above a cutoff of 44%Fe, and this ore has an average grade of 49.8%Fe.


Let us repeat this exercise, but now taking into account the ‘selective mining unit’ of 100ft x 100ft x 50ft. We have:

 


The Standard Normal table gives
f(zv)=0.184 so that P is now 0.816, and the average grade above cutoff is

 


Although the differences in this example are not substantial, it can clearly be seen that if the selection is applied to the average grade of 100ft by 100ft by 50ft blocks, then the tonnage mined (the proportion of the deposit) is larger and the grade of the ore is lower than would be expected from the original samples. If the cutoff grade chosen were above the mean grade of the deposit, the position would be reversed. This is not merely an academic observation, but is borne out by experience on many mines in existence.


Now let us turn to a much more common situation, in which the grade distribution is log-normal. Take as an example a lead/zinc deposit, where the ‘combined metal’ percentage is the economic variable. The samples are known to be log-normally distributed, and the mean and standard deviation of the ‘point’ samples are 12% and 8% combined metal respectively. The semi-variogram is spherical with a range of 15m. The ‘selective mining unit’ is a block 10 by 10 by 5m. Using Table 3.5, we can find that
F(10,10,5)  when a=15 and C=64 is given by 0.516´64=33.034. This produces a block standard deviation of 5.56% combined metal. The two distributions are compared in Fig. 3.13.

Fig. 3.13. Comparison of the distributions of combined metal percentages within a hypothetical lead/zinc deposit.


To calculate the proportion above cutoff and the average grade of the ore for a log-normal distribution requires an extra step in the proceedings. By definition, if a variable has a log-normal distribution, then the logarithm of that variable has a Normal distribution. It is necessary to calculate the mean and standard deviation of this Normal distribution before we can perform any calculations. If we write
y for the logarithm of the grade, then the mean and standard deviation of the y values are given by:


Once these parameters have been calculated, then the following may be evaluated:

 


where
P is again the proportion of the ore above cutoff. The average grade is found by the following process:

 


where
Q=1-F(z-sy).


In the lead/zinc example above, 4% combined metal is a feasible cutoff grade. Considering the ‘point’ distribution then:

 


The original sample data informs us that 93.4% of the deposit lies above 4%(Pb+Zn) and that this ore has an average value of 12.62% combined metal. Now, considering the distribution of 10 by 10 by 5m blocks, the following results are found:

 


Once again, selection made on a mining block unit, this time of size 10 by 10 by 5m, produces a larger tonnage and a lower grade than the small samples would suggest. Table 3.6 shows the resulting values when a set of possible cutoff values is chosen. Figure 3.14 shows the resulting grade/tonnage curves in the normal manner employed in mining reports. The one minor difference here is that ‘proportion’ above cutoff is given rather than tonnage, to keep the example general. The ‘bias’ introduced by considering ‘point’ samples rather than the true selective mining unit can clearly be seen on this graph.

 

POINTS

BLOCKS

 

proportion

average grade

proportion

average grade

Cutoff

above cutoff

 

above cutoff

 

4

0.934

12.62

0.988

12.10

6

0.800

13.90

0.912

12.68

8

0.643

15.58

0.758

13.82

10

0.499

17.48

0.576

15.34

Fig. 3.14. Comparison of grade/tonnage curves in the lead/zinc deposit.

Table 3.6 Comparison of grade/tonnage calculations for point and block values for combined metal (Lead/Zinc) deposit

 

Here is a very brief example with which to finish off. A low grade uranium deposit has a log-normal distribution with mean 0.30% U3O8 and a standard deviation of 1.05% U3O8. The spherical semi-variogram has a range of 40m, and the selective mining unit has a size of 25 by 25 by 10m. Using Table 3.5 gives an F function of 0.477´1.1025=0.526, producing a standard deviation for the blocks of 0.76% U3O8. Table 3.7 shows the results of applying cutoffs of 0.05, 0.10, 0.15 and 0.20% U3O8 to (i) the ‘point’ samples and (ii) the block distribution.

Table 3.7. Comparison of grade/tonnage calculations for point and block values for uranium deposit

 

POINTS

BLOCKS

 

proportion

average grade

proportion

average grade

Cutoff

above cutoff

 

above cutoff

 

0.05

0.622

0.47

0.712

0.41

0.10

0.452

0.62

0.527

0.53

0.15

0.355

0.75

0.414

0.64

0.20

0.291

0.88

0.337

0.75

 

Figures 3.15 and 3.16 illustrate these results. Notice how the skewed nature of the original distribution, and the relatively large size of the block combine to produce an ever widening gap between the point curve and the block curve.

Fig. 3.15. Comparison of point and block grade/tonnage curves in a uranium deposit --- cutoff grade versus proportion above cutoff.

Fig. 3.16. Comparison of point and block grade/tonnage curve in a uranium deposit --- cutoff grade versus average grade.

 

 

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