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)
Find. γ(h) at h = 0, 50, 250 and 1000 m, and the sketch of the nested model and its total sill.
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).
Total sill. $$\text{Sill} = C_0+C_1+C_2 = 0.1+0.5+0.4 = \boxed{1.00}$$
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. $$\boxed{\gamma(0)=0}$$
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. $$\gamma(250)=0.1+0.5(1)+0.4(0.6875)=0.1+0.5+0.275=\boxed{0.875}$$
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. $$\gamma(1000)=0.1+0.5(1)+0.4(1)=\boxed{1.00 = \text{Sill}}$$