Geostatistical Algorithm Selection for Mineral Resources Assessment and its Impact on Open-pit Production Planning Considering Metal Grade Boundary Effect

Mine planning is influenced by many sources of uncertainty. Significant sources of geological uncertainty in mine planning include uncertainty in layout of geological domains and uncertainty in metal grades. These two sources of uncertainty cannot be modeled separately because the distribution of the grade is controlled usually by geological domains. Two approaches exist for combining these two sources of uncertainty: the joint simulation approach and the cascade approach. In this paper, these two approaches were compared using a real case study. To this end, uncertainty in iron grade (quantitative variable) and ore zones (qualitative variable) was modeled using both approaches. There were some considerable differences in the results obtained by each approach, which confirm the importance of choosing the most appropriate approach with consideration of the dominate features of a deposit.