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24-MMP-A4 Mine Valuation and Mineral Resource Estimation · May 2016

Question 12 of 29: 1: Two-Structure Nested 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, 2016-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 1.1–1.6); candidates then select THREE of the six optional Questions 2–7 (20 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); Gentry & O'Neil, Mine Investment Analysis (Canadian mining taxation, inflation and financing effects on DCF yield, smelter/refining contract terms, net smelter return); SME Mining Engineering Handbook, 3rd ed. (mineral exploration/evaluation stages, ore reserve classification, ore deposit models); CIM Best Practice Guidelines and NI 43-101 (Canadian Securities Administrators).

Question 3.2.1: Two-Structure Nested Spherical Variogram Model (8 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.

Given.

ParameterValue
Nugget, C00.1
Structure 1: sill contribution C1, range a10.5, 100 m
Structure 2: sill contribution C2, range a20.4, 500 m

Find. γ(h) at h = 0, 50, 250 and 1000 m, and the sketch of the nested model and its total sill.

Lag distance h (m)γ(h)Sill = C0+C1+C2 = 1.00C0=0.1a1=100a2=500(0, 0.000)(50, 0.504)(250, 0.875)(1000, 1.000)
Fig. 3.2.1 – The nested two-structure spherical model, with the four requested evaluation points marked: (0, 0), (50, 0.504), (250, 0.875), (1000, 1.000 = sill).

Approach. Evaluate each structure's spherical function Sph(h/ai)=1.5(h/ai)−0.5(h/ai)³ while h≤ai, clamped at 1 once h exceeds that structure's own range, then sum γ(h)=C0+C1·Sph(h/a1)+C2·Sph(h/a2).

  1. Total sill. $$\text{Sill} = C_0+C_1+C_2 = 0.1+0.5+0.4 = \boxed{1.00}$$
  2. γ(0). By definition γ(0)=0 exactly (no separation → no variance); C0 is the discontinuous jump the model makes as h→0+, not a value AT h=0. $$\boxed{\gamma(0)=0}$$
  3. γ(50). h=50 lies inside both ranges. Structure 1: x1=50/100=0.500, Sph(x1)=1.5(0.5)−0.5(0.5)³=0.750−0.0625=0.6875. Structure 2: x2=50/500=0.100, Sph(x2)=1.5(0.1)−0.5(0.1)³=0.150−0.0005=0.1495. $$\gamma(50)=0.1+0.5(0.6875)+0.4(0.1495)=0.1+0.34375+0.0598=\boxed{0.504}$$
  4. γ(250). h=250 has passed structure 1's range (250>100, Sph1=1, fully saturated) but is inside structure 2's range (250<500). Structure 2: x2=250/500=0.500, Sph(x2)=1.5(0.5)−0.5(0.5)³=0.6875. $$\gamma(250)=0.1+0.5(1)+0.4(0.6875)=0.1+0.5+0.275=\boxed{0.875}$$
  5. γ(1000). h=1000 exceeds both ranges (1000>100 and 1000>500), so both structures are fully saturated and the variogram has reached the total sill. $$\gamma(1000)=0.1+0.5(1)+0.4(1)=\boxed{1.00 = \text{Sill}}$$
QuantityValue
Sill (C0+C1+C2)1.00
γ(0)0.000
γ(50)0.504
γ(250)0.875
γ(1000)1.000 (sill reached)