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24-MMP-A4 Mine Valuation and Mineral Resource Estimation · May 2018

Question 12 of 23: Nested Spherical Variogram – Gamma Values at Four Lags

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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)

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.

SymbolMeaningValue
C0Nugget0.1
C1, a1Structure 1 sill contribution, range0.5, 100 m
C2, a2Structure 2 sill contribution, range0.4, 500 m

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).

  1. h = 0 m. By definition γ(0)=0 (the nugget is the DISCONTINUITY as h→0+, not the value exactly at h=0): $$\gamma(0)=\boxed{0}$$
  2. 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. $$\gamma(50)=0.1+0.34375+0.0598=\boxed{0.504}$$
  3. 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. $$\gamma(250)=0.1+0.5+0.275=\boxed{0.875}$$
  4. 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.
Lag distance h (m)γ(h)C0 = 0.10 (nugget)C0+C1 = 0.60C0+C1+C2 = 1.00 (total sill)a1=100a2=500h=0, γ=0h=50, γ=0.504h=250, γ=0.875h>=500: γ=1.00 (incl. h=1000)
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.
Lag hγ(h)
0 m0
50 m0.504
250 m0.875
1000 m1.000 (= total sill)