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24-MMP-A4 Mine Valuation and Mineral Resource Estimation · May 2013

Question 8 of 13: Two-Structure Spherical Variogram Model

Nivaar worked solution (AI-drafted; not reviewed by a licensed engineer)

Notes on this paper

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 2: Two-Structure Spherical Variogram Model (15 marks)

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.

Lag distance h (m)γ(h)Sill = C0+C1+C2 = 0.45a1=500a2=900(0, 0.000)(250, 0.269)(700, 0.436)(1100, 0.450)C0=0.05
Fig. 2 – The paper's two-structure spherical model, with the four requested evaluation points marked: (0, 0), (250, 0.269), (700, 0.436), (1100, 0.450 = sill).

Given.

ParameterValue
Nugget, C00.05
Structure 1: sill contribution C1, range a10.20, 500 m
Structure 2: sill contribution C2, range a20.20, 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.

  1. Sill. The total sill is reached once both structures have flattened out: $$\text{Sill} = C_0 + C_1 + C_2 = 0.05 + 0.20 + 0.20 = \boxed{0.45}$$
  2. γ(0). By definition γ(0) = 0 exactly (no separation, no variance); the nugget C0 = 0.05 is instead the value the model jumps to for any h however small – a discontinuity at the origin, not a value at it. $$\boxed{\gamma(0) = 0}$$
  3. γ(250). h = 250 lies inside both ranges (250 < 500 and 250 < 900), so both structures use the full cubic form. For structure 1: x1 = 250/500 = 0.500, Sph(x1) = 1.5(0.500) − 0.5(0.500)^3 = 0.750 − 0.0625 = 0.6875. For structure 2: x2 = 250/900 = 0.2778, Sph(x2) = 1.5(0.2778) − 0.5(0.2778)^3 = 0.4167 − 0.0107 = 0.4060. Substituting: $$\gamma(250) = 0.05 + 0.20(0.6875) + 0.20(0.4060) = 0.05 + 0.1375 + 0.0812 = \boxed{0.269}$$
  4. γ(700). h = 700 has passed structure 1's range (700 > 500, so Sph1 = 1, fully saturated) but is still inside structure 2's range (700 < 900). For structure 2: x2 = 700/900 = 0.7778, Sph(x2) = 1.5(0.7778) − 0.5(0.7778)^3 = 1.1667 − 0.2352 = 0.9315. Substituting: $$\gamma(700) = 0.05 + 0.20(1) + 0.20(0.9315) = 0.05 + 0.20 + 0.1863 = \boxed{0.436}$$
  5. γ(1100). h = 1100 exceeds both ranges (1100 > 500 and 1100 > 900), so both structures are fully saturated at their own sill contribution and the variogram has reached the total sill: $$\gamma(1100) = 0.05 + 0.20(1) + 0.20(1) = \boxed{0.45 = \text{Sill}}$$
QuantityValue
Sill (C0 + C1 + C2)0.45
γ(0)0.000
γ(250)0.269
γ(700)0.436
γ(1100)0.450 (sill reached)