Accurate prediction of recoverable reserves is vital to the planning of a mining operation at all stages of its development. Method such as ordinary kriging estimate the mean grade of a block that is fairly large. The usual outcome is that large blocks rarely turn out to be all ore or all waste, thus making reserve estimates an incorrect estimate of what will be mined. Two stage indicator kriging offers a solution to this problem by estimating the distribution of grade values within a large block, rather than just estimating the mean grade of the block. Knowing the distribution of grade value within the block, it is then easy to calculate the proportion of the block that is above cutoff grade and the grade of the ore above cutoff grade. This paper shows that the two stage indicator kriging model is quite applicable and reliable in modeling the gold vein deposit.
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