24-MMP-A4 Mine Valuation and Mineral Resource Estimation · May 2013
Nivaar worked solution (AI-drafted; not reviewed by a licensed engineer)
EGBC National Exam — Mining and Mineral Processing Engineering, 09-Mmp-A4 Mine Valuation and Mineral Resource Estimation, 2013-May. 3 hours duration; one handwritten 8.5×11 in reference sheet permitted (not an open-book exam); only approved Sharp or Casio calculators allowed. Question 1 is compulsory (40 marks, parts 1.1–1.7); candidates then select FOUR of the six optional Questions 2–7 (15 marks each) to complete the paper.
Reference texts: Isaaks & Srivastava, An Introduction to Applied Geostatistics (variogram modelling, kriging estimators, volume–variance relations); Hustrulid, Kuchta & Martin, Open Pit Mine Planning and Design (mine valuation, NPV and cut-off grade methodology, mineable reserves, selective mining units); Gentry & O'Neil, Mine Investment Analysis (Canadian mining taxation, smelter/refining contract terms, net smelter return); SME Mining Engineering Handbook, 3rd ed. (mineral exploration and evaluation stages, ore reserve classification).
Question text not reproduced: the examination questions are © Engineers and Geoscientists BC. Open the official past paper (linked at the top of this page) to read the question, then follow the worked solution below.
Formula. A two-structure nested spherical model adds a nugget and two independent spherical structures, each with its own sill contribution and range:
$$\gamma(h) = C_0 + C_1\cdot Sph\!\left(\frac{h}{a_1}\right) + C_2\cdot Sph\!\left(\frac{h}{a_2}\right), \qquad Sph(x) = \begin{cases} 1.5x - 0.5x^3 & x \le 1 \\ 1 & x > 1 \end{cases}$$where C0 is the nugget, C1 and a1 are the sill contribution and range of the first (short-range) structure, and C2 and a2 the sill contribution and range of the second (longer-range) structure.
Why two nested spherical structures approximate almost any classical variogram shape. Each spherical structure contributes a smooth rise from 0 to its own sill C_i over its own range a_i. Superimposing a short-range structure (small a1) with a longer-range structure (larger a2) lets the combined curve mimic: a pure nugget-effect model (both C1, C2 → 0, all variance in C0); a single spherical model (C2 → 0); a Gaussian-like smooth curve near the origin (the short structure rounds off what would otherwise be a sharp linear rise); and a variogram that appears to have TWO ranges of influence – a common real feature of ore deposits that have both short-range (nugget-adjacent, grain-scale) and long-range (structurally controlled, zone-scale) continuity. Because the two structures' sills and ranges are independently adjustable, the nested model has enough free parameters to fit almost any monotonically rising, sill-bounded experimental variogram shape without resorting to more exotic model types.
Given.
| Parameter | Value |
|---|---|
| Nugget, C0 | 0.05 |
| Structure 1: sill contribution C1, range a1 | 0.20, 500 m |
| Structure 2: sill contribution C2, range a2 | 0.20, 900 m |
Find. The total sill, and γ(h) at h = 0, 250, 700 and 1100 m.
Approach. The sill is simply the sum of the nugget and both structure contributions; each γ(h) is evaluated structure-by-structure, using the linear-cubic spherical form while h ≤ a_i and clamping that structure's contribution at C_i once h exceeds its own range.
| Quantity | Value |
|---|---|
| Sill (C0 + C1 + C2) | 0.45 |
| γ(0) | 0.000 |
| γ(250) | 0.269 |
| γ(700) | 0.436 |
| γ(1100) | 0.450 (sill reached) |