24-MMP-A4 Mine Valuation and Mineral Resource Estimation · May 2017
Question 7 of 18: Nested Spherical Variogram – Numeric Evaluation
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, 2017-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 five optional Questions 2–6 (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, smelter/refining contract terms, net smelter return, transportation logistics); SME Mining Engineering Handbook, 3rd ed. (cost-estimating relationships, mineral exploration/evaluation stages, ore reserve classification); Evans, An Introduction to Ore Geology and Guilbert & Park, The Geology of Ore Deposits (ore deposit models); CIM Best Practice Guidelines and NI 43-101 (Canadian Securities Administrators).
Find. γ(h) at h = 0, 10, 50 and 150 m, and a to-scale sketch of the nested model.
Fig. 2.1 – The nested two-structure spherical model, to scale, with the four requested evaluation points marked: (0, 0), (10, 0.210), (50, 0.494), (150, 0.650 = 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) for h>0 (with γ(0)≡0 by definition).
Total sill. $$\text{Sill} = C_0+C_1+C_2 = 0.05+0.10+0.5 = \boxed{0.65\ \%\text{Cu}^2}$$
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. $$\boxed{\gamma(0)=0}$$
γ(50). h=50 has passed structure 1's range (50>15, Sph1=1, fully saturated) but is inside structure 2's range (50<100). Structure 2: x2=50/100=0.500, Sph(x2)=1.5(0.5)−0.5(0.5)³=0.6875. $$\gamma(50)=0.05+0.10(1)+0.5(0.6875)=0.05+0.10+0.34375=\boxed{0.494\ \%\text{Cu}^2}$$
γ(150). h=150 exceeds both ranges (150>15 and 150>100), so both structures are fully saturated and the variogram has reached the total sill. $$\gamma(150)=0.05+0.10(1)+0.5(1)=\boxed{0.65\ \%\text{Cu}^2 = \text{Sill}}$$