| Gold is a metal with a relatively high market value and therefore the effect of errors in grade estimation, or material classification, on a company's cash flow are magnified. In deposits where the mineralization is erratic, estimation and classification becomes increasingly difficult. This adds to the risk of a project and greatly affects mine planning as well as overall project viability.; A relatively new and unexplored estimation technique known as stochastic modeling or simulation is slowly gaining acceptance by mine planners. Unlike other estimation methods that attempt to produce one ‘best’ estimate for each point within a property, simulation takes into account the error involved with each estimate and delivers multiple, equally probable estimates to the mine planner. These multiple estimates allow for examination of the distribution of the grade at any point, and help to facilitate better classification of the material located there.; This thesis examines the simulation technique and looks at how it can be used to delineate ore and waste. Classical approaches will be investigated to act as a comparison. |
