Ore Reserve Calculation

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CHAPTER 1

Ore Reserve Calculation

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Leigh A. Readdy, David S. Bolin, and Graham A. Mathieson

INTRODUCTION

The estimation of ore reserves is a process that begins with the earliest exploration stages on a property and continues throughout any subsequent evaluation and exploitation of the deposit. During exploration and preliminary evaluation, the results of these reserve estimates constitute the basic data for prefeasibility studies and economic analysis. The decision to continue exploration and development or to abandon a prospect is often based upon these studies. During the active life of a mine, reserve computations are continuously revised to assist in development planning, cost and efficiency analyses, quality control, and improvement of extraction and processing methods. Accurate reserve estimates are also required when financing a project, purchasing or selling a property, and for accounting purposes such as depletion and tax calculation. It is important to remember that the reliability of ore restrve estimates varies progressively through time as more and more information becomes available. The lowest order of reliability of estimation of reserves exists at the time of discovery. The maximum level of certainty concerning the ore reserves within a deposit is reached when the deposit is completely mined out. Between these two extremes are variable levels of certainty as to the tonnage and grade of the resource. This is particularly true of that portion of the mineral resource that constitutes the "minable reserve," as this portion is dependent upon economic as well as geological and technological factors. In the following discussion, several of the factors affecting ore reserve computation and some of the commonly used methods of calculation are presented. The first part of the discussion is confined to classical methods of hand calculation utilizing level maps and sections. The second part of the discussion...