24-MMP-A4 Mine Valuation and Mineral Resource Estimation · Undated paper
Question 9 of 19: Spherical and Nested Spherical Variogram Models
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, undated sitting. 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 (parts 1.1–1.5); 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, anisotropy, volume–variance relations); Hustrulid, Kuchta & Martin, Open Pit Mine Planning and Design (mine scheduling, NPV/valuation methods, stripping-ratio economics); Gentry & O'Neil, Mine Investment Analysis (Canadian mining taxation, CCA classes, smelter/refining contract terms, net smelter return); SME Mining Engineering Handbook, 3rd ed. (mineral exploration/evaluation stages, ore reserve classification); Guilbert & Park, The Geology of Ore Deposits (volcanogenic massive sulphide genesis); CIM Best Practice Guidelines and NI 43-101 (Canadian Securities Administrators).
Some question wording is assumed where the paper is unclear. Several tables in the paper do not reconcile arithmetically (the Q1.4.3 reserve table, the Q4 ore/waste schedule totals, the Q5.5 earnings-split percentages), and some sub-part mark values do not add to the question totals. This solution answers the conceptual and methodological content in full and works the self-consistent numeric sub-parts (NPV in 1.3, the nested variogram in 3.2, the depreciation schedule in 5.1, the NSV/NSR chain in 6.3–6.5), flagging every place an inconsistency is carried forward.
Question 3.2: Spherical and Nested Spherical Variogram Models (10 marks)
3.2.1 — The spherical model, mathematically. The spherical model is the most widely used because it has a genuine, finite range (unlike the exponential/Gaussian models, which only approach the sill asymptotically) and a physically intuitive near-origin behaviour:
$$\gamma(h)=\begin{cases}C_0+C\left[\dfrac{3h}{2a}-\dfrac{1}{2}\left(\dfrac{h}{a}\right)^{3}\right] & 0\lt h\le a\\ C_0+C & h\gt a\end{cases}$$
where $C_0$ is the nugget, $C$ is the partial sill (structured variance), and $a$ is the range. The model rises steeply and near-linearly from the nugget at small $h$, curves over, and reaches the sill $C_0+C$ tangentially exactly at $h=a$ — the sketch below (single-structure illustration) shows the labelled nugget, sill and range on this characteristic S-shaped curve.
Single-structure spherical variogram: fitted model (red) through experimental points (blue), with nugget, sill and range labelled.
Given (3.2.2). Nested (two-structure) spherical model: nugget $C_0=0.1$; Structure 1 — partial sill $C_1=0.5$, range $a_1=30$ m; Structure 2 — partial sill $C_2=0.4$, range $a_2=150$ m. Each structure contributes independently and additively: $\gamma(h)=C_0+C_1\cdot\text{sph}(h/a_1)+C_2\cdot\text{sph}(h/a_2)$, where $\text{sph}(x)=1.5x-0.5x^3$ for $x\le1$ and $\text{sph}(x)=1$ for $x>1$.
Find. $\gamma(h)$ at $h=$ 0, 15, 100 and 200 m, and the total sill.
Approach. Evaluate each structure's spherical term separately at each $h$ (checking whether $h$ is inside or beyond that structure's own range), then sum both structures onto the nugget.
$h=0$ m — the nugget effect. As $h\to0^+$ neither structure has begun to contribute ($\text{sph}(0)=0$ for both), so the variogram value at (or immediately adjacent to) the origin is the nugget itself:
$$\boxed{\gamma(0) = C_0 = 0.100}$$
$h=15$ m — both structures active (15 m $<$ both ranges).
$$\text{sph}(15/30)=1.5(0.5)-0.5(0.5)^3=0.750-0.0625=0.6875 \;\Rightarrow\; C_1\cdot\text{sph}=0.5\times0.6875=0.344$$
$$\text{sph}(15/150)=1.5(0.1)-0.5(0.1)^3=0.150-0.0005=0.1495 \;\Rightarrow\; C_2\cdot\text{sph}=0.4\times0.1495=0.060$$
$$\gamma(15)=0.1+0.344+0.060$$
$$\boxed{\gamma(15) \approx 0.504}$$
$h=100$ m — Structure 1 has reached its sill (100 m $>$ 30 m); Structure 2 still active (100 m $<$ 150 m).
$$C_1\cdot\text{sph}(100/30\ge1) = C_1 = 0.500\ \text{(full partial sill reached)}$$
$$\text{sph}(100/150)=1.5(0.6667)-0.5(0.6667)^3=1.0000-0.1481=0.8519 \;\Rightarrow\; C_2\cdot\text{sph}=0.4\times0.8519=0.341$$
$$\gamma(100)=0.1+0.500+0.341$$
$$\boxed{\gamma(100) \approx 0.941}$$
$h=200$ m — both structures beyond their range (200 m $>$ 30 m and $>$ 150 m): the total sill.
$$\gamma(200)=C_0+C_1+C_2 = 0.1+0.5+0.4$$
$$\boxed{\gamma(200) = 1.000}$$
Lag $h$
$\gamma(h)$
Regime
0 m
0.100
Nugget only
15 m
0.504
Both structures rising
100 m
0.941
Structure 1 at sill; Structure 2 rising
200 m
1.000
Total sill (both structures saturated)
Check
The source's own restated table (page 11) gives Structure (2)'s range as 150 m with sill 0.4, consistent throughout; the total sill $C_0+C_1+C_2=1.0$ is used as a self-check on the $h=200$ m result above.