24-MMP-A4 Mine Valuation and Mineral Resource Estimation · May 2018
Question 12 of 23: Nested Spherical Variogram – Gamma Values at Four Lags
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, 2018-May. 3 hours duration; closed book, with one handwritten 8.5×11 in. reference sheet (both sides) permitted; only an approved Sharp or Casio calculator allowed. Question 1 is compulsory (40 marks, parts 1.1–1.9); 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); Hustrulid, Kuchta & Martin, Open Pit Mine Planning and Design (mine valuation, cut-off grade theory, incremental analysis); Gentry & O'Neil, Mine Investment Analysis (Canadian mining taxation, cash flow/risk, smelter contract terms, NSV/NSR); SME Mining Engineering Handbook, 3rd ed. (ore deposit models, mineral exploration/evaluation stages, equipment utilization); O'Hara, T.A., “Quick Guides to the Evaluation of Orebodies,” CIM Bulletin, Feb. 1980 (parametric capital-cost estimating); CIM Definition Standards for Mineral Resources and Mineral Reserves / National Instrument 43-101 (resource/reserve classification and reporting).
Question 3.2: Nested Spherical Variogram – Gamma Values at Four Lags (10 marks)
Find. γ(h) at h = 0, 50, 250 and 1000 m for the nested model $$\gamma(h)=C_0+C_1\cdot Sph(h/a_1)+C_2\cdot Sph(h/a_2)$$
Approach. Evaluate each structure's own spherical function Sph(x) = 1.5x−0.5x3 for x≤1, else 1, at x = h/a1 and h/a2, scale by that structure's sill contribution, and sum with the nugget (added only for h>0).
h = 0 m. By definition γ(0)=0 (the nugget is the DISCONTINUITY as h→0+, not the value exactly at h=0): $$\gamma(0)=\boxed{0}$$
h = 50 m. Structure 1: x1=50/100=0.5≤1, Sph(0.5)=1.5(0.5)−0.5(0.5)3=0.75−0.0625=0.6875, contributing 0.5×0.6875=0.34375. Structure 2: x2=50/500=0.1≤1, Sph(0.1)=1.5(0.1)−0.5(0.1)3=0.15−0.0005=0.1495, contributing 0.4×0.1495=0.0598. $$\gamma(50)=0.1+0.34375+0.0598=\boxed{0.504}$$
h = 250 m. Structure 1: h>a1(100 m) ⇒ full sill contribution 0.5. Structure 2: x2=250/500=0.5≤1, Sph(0.5)=0.6875, contributing 0.4×0.6875=0.275. $$\gamma(250)=0.1+0.5+0.275=\boxed{0.875}$$
h = 1000 m. h exceeds BOTH ranges (100 m and 500 m), so both structures contribute their full sill: $$\gamma(1000)=C_0+C_1+C_2=0.1+0.5+0.4=\boxed{1.000}$$ — the total sill of the nested model, and the value γ(h) approaches (from 500 m onward) for any larger lag.
Nested two-structure spherical model (nugget 0.1; structure 1: sill 0.5, range 100 m; structure 2: sill 0.4, range 500 m), with the four requested distances marked.