Mining Bench Height Evaluation for the Wallaby Resource

A Conditional Simulation Case Study

I M Glacken1, M Nopp2 and M Titley3
ABSTRACT
A study on the feasibility of mining the recently discovered Wallaby gold
deposit is due for completion by mid-2000. Open pit mining is the
favoured method. Determination of the impact of mining bench height on
the recovery of ore, including the estimation of dilution and ore loss, is
critical to the economics of the operation.
Conditional simulation was used to derive a number of gold estimation
scenarios within a typical volume of the deposit. These scenarios were
interrogated for a selection of mining bench heights and ore block
dimensions. The results were reported as a range of grade tonnage
relationships and compared to the kriged resource model. This allowed
the resource model to be calibrated to a specific mining bench height and
ore block size. Once calibrated, more realistic dilution and ore loss values
for a number of mining bench heights were calculated from the resource
model. These values were then used to determine the economic
sensitivity of particular mining methods.
The spread of results from the simulations also provided an indication
of the confidence in the kriged grade estimates for the different zones of
mineralisation within the deposit and highlighted areas of any significant
uncertainty.

INTRODUCTION
Wallaby is one of Australias largest gold discoveries in recent
years. Two exploration tenements cover the deposit. The Granny
Smith Joint Venture (Placer Dome Asia Pacific 60 per cent and
Delta Gold Ltd 40 per cent) (GSJV) holds Wallaby, which is
situated within the southern lease and includes the majority of
the resource. Homestake Gold of Australia Ltd holds Just In
Case which is in the northern lease. The Wallaby Mineral
Resource (Indicated and Inferred) as at 31 December 1999 was
52 million tonnes at 2.7 g/t for 4.5 million ounces of gold at a
1.0 g/t cut-off. The GSJV is completing an open pit mining
feasibility study that is due for completion around June 2000.

calculated. These simulated models can then be compared to the

resource estimate and used to calculate more realistic dilution
and ore loss values to assist in determining the economic
sensitivity of a particular mining method.
Time constraints on the study meant that the entire model area
could not be simulated, so a representative volume of the
resource was selected. To ensure that the results can be used in
the feasibility study, the kriged resource model was calibrated to
a specific SMU, and adjustment factors provided for alternative
SMUs.
The spread of results from the best, median and worst
simulations also provide an indication of the confidence of the
kriged grade estimates for the different zones of mineralisation
within the deposit and highlights areas of significant uncertainty.

THE WALLABY DEPOSIT

Background
Wallaby is located in the North Eastern Goldfields region of
Western Australia, approximately 27 km south-southwest of
Laverton and 11 km southwest of the Granny Smith Mine, at
latitude 2851S, longitude 12219E (Figure 1). The deposit lies
on the northeastern shore of Lake Carey, which is a large salt
lake. The discovery history is complex and has been published in
Nielsen and Currie (1999).

The nature of gold mineralisation in a deposit determines the

dilution (waste mixed with ore) and ore loss (ore lost to waste)
for different mining block sizes, referred to hereafter as the
selective mining unit (SMU). A feasibility study must optimise
the economic benefits gained from using larger ore mining
equipment, hence larger SMUs, against the potential loss of
revenue due to dilution and ore loss.
Conditional simulation is a tool which will generate a number
of equally-likely images of the interpolated data. Importantly,
simulation honours the statistical distribution of the input data.
This differs to other estimation techniques which usually produce
a single output image with a smoother statistical distribution than
that of the input data, particularly when the spacing of the input
data (drill holes) is much larger than the SMU. This smoothed
model does not adequately represent the actual grade tonnage
relationship of the deposit, and so cannot be used to determine
the impact of different SMU sizes. By deriving a number of gold
estimation scenarios using conditional simulation, a range of
possible grade tonnage relationships for a given SMU can be
1.

FAusIMM, Snowden Mining Industry Consultants, PO Box 77,

West Perth WA 6872

2 MAusIMM, Snowden Mining Industry Consultants, PO Box 77,

West Perth WA 6872
3

MAusIMM, Placer Granny Smith, PO Box 33, Laverton WA 6440

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FIG 1 Wallaby deposit location plan.

Recent exploration history

The GSJV commenced fieldwork at Wallaby during November
1997. The program comprised reconnaissance aircore drilling.
Follow-up drilling in June 1998 confirmed continuity of grade
between the initial anomalies. Reverse Circulation drilling began
later that month but had difficulty penetrating the thick
water-saturated lacustrine clays. A combination of aircore
pre-collars with diamond tails proved to be the most cost

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effective method of drilling. By December 1998, 65 holes for a

total 22 500 m were completed on 100 m centres. This drilling
broadly outlined the lateral limits of the deposit. An inferred
resource of 30 Mt at 2.4 g/t for 2.3 Moz was reported at a cut-off
of 1.0 g/t.
Drilling continued through 1999, concentrating on; infill to
increase grade confidence, determination of open pit mining
limits, improving geological understanding, collection of core for
metallurgical testwork, de-watering pump tests and geotechnical
evaluation.
Project status
An open pit mining feasibility study is due for completion
around June 2000. The current combined Indicated and Inferred
Mineral Resource is 52 Mt at 2.7 g/t for 4.5 Moz gold at a 1.0 g/t
cut-off. The potential open pit mine covers an area of 1300 m/NS
x 100 mMEW x 300 m vertical.
A program of diamond drill holes is being completed to test
extensions to the Wallaby mineralisation at depths down to
1000 m below the surface. Preliminary exploration of possible
southern extensions of the mineralisation system beneath the
Lake Carey sediments is on-going.
Regional geology of Wallaby
The Wallaby deposit is located within the Eastern Goldfields
Province of the Archaean Yilgarn granite-greenstone terrain of
Western Australia. The geology within this zone has been
divided into two associations; association 1, comprising mafics,
ultramafics and banded iron formations, and association 2,
comprising andesitic volcanics and volcaniclastics interbedded
with mafic volcanics and overlain by clastic and chemical
sediments. Association 2 occurs in the western and eastern parts
of the district, while association 1 occurs in a north-south
corridor through the central part of the Laverton area. Wallaby
occurs within association 1 and is located on the eastern flank of
the Mt Margaret Anticline. Figure 2 shows the location of
Wallaby and the regional geology around the Laverton area.
Deposit geology
The Wallaby deposit is covered by 1 to 20 m of aeolian dune
sands and between 24 to 120 m of Tertiary lake clays and sands.
This transported cover is shallowest on the eastern margin and
steadily thickens to the west. A deep regional palaeochannel
trending south-southeast runs through the western side of the
Wallaby deposit. No economic gold mineralisation is hosted in
the transported cover.
Oxide saprolitic material occurs mainly in the eastern part of
the deposit. Saprolitic material in the west has been mostly
stripped by the palaeochannel. Approximately ten per cent of the
gold in the wallaby deposit is in oxide material.

FIG 2 Wallaby deposit regional geology.

Mineralisation occurred after the emplacement of the felsic and

alkali intrusives but prior to the emplacement of the carbonatitic
fractionate. Figure 3 shows the geology in schematic section.

Structure, mineralisation and alteration

Mineralisation occurs along shears formed during a dominant top
block north to north east thrust regime. The shear zones display
limited shear foliation. This is due to the ability of the host
conglomerate to absorb large amounts of strain with limited
physical deformation. The main shears are relatively flat lying,
with a gross gentle dip towards the south east. Lower grade
mineralisation is associated with steeper on echelon linkage
structures, with a dominant dip to the north east. The shear zones
are defined more by alteration than foliation, and range in size
from 1 to 40 m.
The alteration at Wallaby can be classified as an inner,
intermediate, or outer halo.

The host rock at Wallaby is an Archaean matrix-supported

polymict conglomerate. The dominant clast type is mafic
volcanics. Other clast types include felsic porphyries, sediments
(mostly banded iron formations and cherts), and carbonate and
quartz clasts. The conglomerate is predominantly massive,
although occasional graded bedding, grit beds and clast
alignment indicate the unit is upright and has a dip of around 45
to the south east. The conglomerate has been metamorphosed to
upper greenschist facies.

The inner halo defines the dominant ore-zones and is a

dolomite-albite-pyrite-chalcopyrite and gold assemblage. It is
bleached, lacks a significant magnetic response, and primary
textures are often obliterated. Small amounts of visible gold
occur in small, late-stage quartz/carbonate veins. Gold is closely
related to pyrite content. The highest grades tend to be related to
abundant fine pyrite. Mineralisation behaves differently in the
intrusives than in the conglomerate, with the grades tending to be
lower in the intrusives.

Two north-south trending subvertical dyke swarms have

intruded the conglomerate. The dykes represent a fractionated
alkali syenite suite and range in composition from various
monzonites through syenites, to carbonatitic syenites and a
carbonatite. A number of the more alkali-rich fractionates have
been emplaced as sills within the shear structures. These
generally have an east-west orientation and southerly dip.

The intermediate halo comprises biotite, pyrite, magnetite and

chalcopyrite. It is dark green to brownish grey and may have a
significant magnetic response. This alteration is derived from the
same fluids as the inner zone but with a lower fluid to rock ratio.
A petrological study of the magnetite shows magnetite and pyrite
are in textural equilibrium throughout the deposit at all scales.
This implies they formed at the same time.

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FIG 3 Wallaby deposit: schematic east-west section regolith and geology.

The outer halo is generally unmineralised conglomerate. It is

split into a chlorite-albite assemblage and an actinolitemagnetite-pyrite alteration. The actinolite assemblage has a
significant magnetic response and is the distal alteration from the
mineralising fluid. The chlorite-albite assemblage is from the
regional upper greenschist facies metamorphism.

Description of mineralisation zones

There are two main flat lying ore-zones, termed 50 and 60,
which are separated by about 100 to 150 m. These zones range in
thickness from 5 to 35 m. Ore-zone 40 is thought to be a flat
lying above ore-zone 50, but is almost entirely in oxide and is
not as well constrained as the other ore-zones.
The north east dipping ore-zones, 240 and 250, lie above and
below ore-zone 50 respectively. Ore-zone 240 is well
constrained, is very strongly mineralised, and ranges in thickness
from 3 to 25 m. Ore-zone 250 comprises a series of stacked
northeast dipping structures which cannot be easily correlated
between holes. There is structural evidence indicating that parts
of ore-zone 250 flatten, and in some cases dip to the south.
Ore-zone 250 is not well constrained and has the lowest grades.
The individual ore-zone 250 structures range in thickness from 2
to 7 m.
Ore-zone 70 lies directly below ore-zone 60 and being the
deepest, is not well defined by drilling. The current interpretation
ore ore-zone 70 is a series of gently northeast dipping stacked
planar zones. The stacking suggests it may be similar to ore-zone
250 but with areas of better grade continuity.
The ore-zones cross intrusive/conglomerate boundaries with
little change in geometry. There is a subtle increase in gold
dispersion through the felsic intrusives, especially for the very
low gold values. Figures 4 and 5 show the ore-zones in
schematic north-south and east-west section.

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RESOURCE ESTIMATION
Solid 3D triangulations representing the major mineralised
ore-zones were created. Mineralised ore-zones were based on a
structural model and defined by alteration, depleted magnetic
susceptibility and a gold grade cut-off around 0.2 g/t. Ore-zone
250 consists of a number of small, poorly defined mineralisation
zones that could not be adequately linked to form a
homogeneous interpretation. The ore-zone lies between the base
of ore-zone 50 and the top of ore-zone 60 and there is a relatively
high proportion of unmineralised material included within this
profile.
The geometry of the intrusives could not be interpreted in
enough detail to create a solid wireframe, as it is not uncommon
for a drill hole to intersect intrusives having a thickness greater
than 100 m while surrounding holes may not contain any
intrusives greater than 1 m thick. Also, the majority of the
intrusives are unrooted, ie drilling continued through them and
back into conglomerate. The geometry of the intrusives is an
important issue as the intrusives have a different gold grade
distribution. An intrusive lithology code was assigned to samples
from the geology logs. This code was initially used for statistical
analysis and then later, during block model construction, to
estimate the proportion of intrusive material in a model block.
Drill hole samples were assigned weathering, lithology and
ore-zone codes, by using the wireframe models and logging
codes. The three codes were combined into a single unique open
pit ore-zone code (OPDOM) representing the different
combinations of codes. Two metre downhole composites were
created for statistical analysis, variography and grade estimation.
The 2 m composite length was selected as it provides the best
resolution of the ore-zones geometry while minimising the mix
of short and long composites. All composites were terminated on
changes within the OPDOM code to ensure different materials
were not mixed.

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FIG 4 Wallaby deposit ore-zone geometry, east-west section.

FIG 5 Wallaby deposit ore-zone geometry, north-south section.

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MINING BENCH HEIGHT EVALUATION FOR THE WALLABY RESOURCE

Statistical analysis and variographic analysis of the composites

was completed, with the following significant conclusions:

The grade of felsic intrusive hosted mineralisation needed to

be estimated independently of the conglomerate-hosted
mineralisation, as it has a different grade distribution and
different variogram parameters.

The alkali intrusive samples could be combined with the

conglomerate samples for the following reasons:
1. The number of alkali intrusive samples within some
ore-zones is insignificant.
2. Where significant number of samples are available the
grade distribution is similar to the conglomerate.
3. The alkali intrusive geometry was difficult to model
separately and too few samples were available to use
proportional indicator modelling. Thus, the conglomerate
and alkali intrusive material were combined, and are
referred to as conglomerate in the rest of the paper.

Hard mineralisation boundaries must be used to constrain the

mineralisation within ore-zones. However, ore-zones that
intersect each other (such as 240 and 50) may use samples
from either ore-zone.

Ordinary Kriging with cutting would be suitable for grade

estimation for the following reasons:
1. The variography study showed no spatial grade
anisotropy. That is, high-grades were not oriented
differently to the lower grades.
2. The distributions within each ore-zone and lithology have
a relatively low degree of skewness.
3. Only 0.1 per cent of high-grade composites required
trimming.
4. Lack of geological evidence for the alignment of grades
either high or low, in veins, shoots or any structures
within the ore-zones.
The ore-zones have considerable local variation, so the average
orientation does not give the best result for variography and grade
estimation. This is especially relevant for ore-zones 50, 60 and
240 as their orientations are not consistent throughout the deposit.
To avoid having to split these ore-zones into numerous smaller
zones, the samples were unfolded for variography and an inhouse anisotropic modelling package was used for the grade
estimation. The Placer Open Pit software allows construction of
an anisotropy model. The anisotropy model is a block model
containing local azimuth, dip and plunges for each block. This
local information is used as directions for the search and
variogram calculations when performing grade estimations.
A geology block model was constructed using a constant
10 mN x 10 mE x 5 mRL block size. An OPDOM code was
assigned from the relevant wireframe models. As an accurate
geology model of the felsic intrusives could not be created, an
indicator method was used. The proportion of felsic intrusive
within each block was calculated using ordinary kriging of
conditional 0 (absence of felsics in a sample) and 1 (felsic
sample) indicators.
Both the conglomerate and felsic intrusive grades were
estimated for each model block using ordinary kriging. A final
average tonnage-weighted gold grade was calculated for each
model block, based on the proportions of conglomerate and felsic
intrusive within each block.

CONDITIONAL SIMULATION
Objectives of conditional simulation
Conditional simulation is a technique which has developed as an
alternative to estimation techniques such as polygons, inverse
distance weighting, ordinary kriging or indicator kriging.

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Simulation generates many equally likely scenarios, in contrast

to estimation which provides one only. As the name implies, it
uses the principles of Monte Carlo simulation, random number
drawing from a specific distribution, while ensuring that the
outcome is conditional to the input data and the geological
model. In particular, each simulation honours the statistical
distribution of input grades (the grade returned at any point
where a data value exists is that data value) including the
variability, as typified by the range, variance, or coefficient of
variation. Each simulation also honours the spatial continuity of
the raw data as represented in the variogram, and any other
features of the geological model which have been built in.
Kriging, which is theoretically the most optimal estimation
technique, also uses the spatial variability of the data to derive
the weighting scheme for each unknown point to be informed,
but the output kriged map does not preserve the variogram. In
contrast to simulation, a single kriged estimate provides the
minimum variance set of values. Each individual simulation,
taken in isolation, is more variable than any one kriging estimate,
but the ensemble of simulations (typically between 20 and 100
are generated), treated together, provide more information than
kriging. Simulation preserves more characteristics of the input
data than other estimation techniques; it also has the benefit of
providing the risk dimension to resource evaluation studies that
kriging cannot readily provide.
Although the principles of simulation in other fields have been
known for decades, conditional simulation in the mining and
petroleum fields has been practised for only 20 to 25 years, and it
is only with the advent of fast, affordable computers and memory
that practical simulation has been available to the mining
industry. Good descriptions of simulation are provided in
Goovaerts (1997), by Srivastava (1994), and in Chil and
Delfiner (1999).
Applications of conditional simulation
The applications of conditional simulation in the mining industry
fall into four broad categories:
Probability and confidence interval analysis
In this field of application, the suite of simulations generated are
used to provide indications of the range of likely outcomes. This
involves ranking each individual simulation in some way
average grade above a cut-off, maximum tonnage, or maximum
metal and then tabulating or processing the extreme values. It is
possible to generate a true probability or confidence interval
around a median, mean, or any value using simulations for
example, the 95 per cent grade and tonnage confidence interval
around the cut-off at 1 g/t in a gold deposit, or the range of
tonnage expected to be delivered to a plant from one bench of a
nickel laterite deposit. Using this approach, the extreme cases
can be further processed to yield best and worst outcomes,
using such techniques as pit optimisation, underground stope
optimisation, schedule analysis or cashflow forecasting. It is also
possible using the suite of simulations to derive the probability of
exceeding any particular key value, such as a cut-off grade or
minimum level of contaminants. A case study of this type of
approach is presented in Coombes et al (1998).
Optimisation
Optimisation of simulations takes the entire range of outcomes
and produces a best result, which is optimal for a given set of
known criteria. These criteria are often presented as a loss
function, or more generally an economic function combining
profit and loss components (Srivastava, 1987; Glacken, 1996).
The typical application of optimisation of conditional simulation
output is in grade control applications, whereby an optimal

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dig-line is generated according to the balance of economic

criteria applied in designating a block to either ore, waste, or
one of a number of stockpiles. This approach has been
explored by Shaw and Khosrowshahi (1997) and by Schofield
(1998), and has been adopted in a number of available
proprietary software systems.
Reblocking/Resampling
This application of conditional simulation takes one or
several of a suite of simulations and treats that simulation as
reality; in other words, a model of the phenomenon under
study. This can be readily achieved as simulations do not
smooth the data as with kriging, and also by the fact that it is
possible to simulate into very small volumes (essentially nodes
or points) without encountering conditional bias. The fine-scale
simulations can be sampled to represent various grade control
or drilling pattern, or also to represent production over a range
of timeframes or production intervals. Another typical
application is the analysis of a range of mining unit (SMU)
sizes, which can easily be generated by reblocking or
averaging of a fine-scale simulation, providing that the variable
under study can be linearly averaged (which is certainly the
case for most mining applications). It is this application of
simulation which was used to investigate the range of bench
heights at Wallaby; by simulating at a fine-scale, it was
possible to aggregate the node values over a range of bench
heights and then to investigate the ore loss and/or dilution
relative to the kriged model. This was particularly important
given the strong ore-zone control on mineralisation at Wallaby
and the potential for more or less dilution at various mining
scales.
Instead of reblocking a single simulation, a best and worst
case scenario (actually the 5th and the 95th percentile of the
simulations when ranked by average grade) were considered in
order to assess the extra dimension of the uncertainty due to
the risk in the overall grade.
Calibration of a resource model
By comparing the selectivity of a resource model with that
of a similar kriged model, it is possible to assess the effective
selectivity of the kriged model. This assumes that the
simulation is a more accurate representation of reality than the
kriged model, and given the accurate reproduction of statistical
and spatial characteristics, coupled with the optimal change of
support for simulation and lack of conditional bias, this should
be the case. By comparing the simulation tonnage-grade curve
with the kriging curve on a similar block size, it is possible to
calibrate the kriged model (effectively increase or decrease the
selectivity) to more accurately represent the likely mining
conditions. This approach was also adopted in the Wallaby
study.

DETAILS OF STUDY
Selection of test area
One downside of simulation is that it can be a fairly timeintensive technique as multiple realisations of very small
blocks are required. Validation of the results can also be a
lengthy exercise. It was therefore decided that the simulation
should be carried out within a representative volume of the
Wallaby orebody which was large enough to allow meaningful
analysis of results, but also small enough to be completed in a
reasonable time frame. The test volume was selected to include
representative areas through the main ore zones in terms of
grade and thickness, and also to allow sufficient vertical extent
for the effects of dilution and ore loss to be modelled over a
range of bench heights. A typical cross-section through the test
area is shown in Figure 6.

200

FILTER
Category
Background
Rcode 50
Rcode 60
Rcode 240
Rcode 250

FIG 6 East-west cross-section of the test area at 808 200 mN showing

the arrangement of grade ore-zones.

Generation of conditional simulations

The variography study established that the degree of rotation of
anisotropy between the high- and low-grades was small. In other
words, the continuity of the high-grades was not oriented
particularly differently to the low-grades within any or all of the
ore-zones. This information, together with the low degrees of
skewness displayed by the data, led to the choice of sequential
Gaussian as the simulation algorithm. This approach was further
supported by the lack of geological evidence for strong
connectivity of high-grades or low-grades; in other words,
neither the high-grades nor the low-grades appear to be aligned
in veins, shoots, or structures to any significant degree.
The use of sequential Gaussian necessitated the generation of
normal scores variograms for the gold grades for both the
conglomerate samples and the intrusive samples within each of
the five ore-zones represented in the study area. The global data
sets for the entire resource, composited to 2 m, were used for the
variography. Care was taken to ensure that the directions of
maximum continuity coincided both with the known structural
directions and with those directions previously modelled in the
traditional variography used for the kriged resource estimate. The
variograms are characterised by low to moderate nugget
variances (25 to 40 per cent of total variability) and overall
ranges up to 100 m. The flat structures (ore-zones 50 and 60
show southerly strikes on the mineralisation, but the link
structures (ore-zones 240 and 250) have primary directions of
continuity which dip shallowly to the northeast.
Since the style of mineralisation in the intrusive suite is
different to the conglomerate, these units were treated
independently within each ore-zone. The grades within the
conglomerate and intrusive suites were simulated separately and
twenty simulations were produced for each of the five ore-zones
within each suite, with the grades simulated into a fine grid of
2.5 mN x 2.5 mE x 2.5 mRL.
A block model of the spatial occurrence of the intrusive and
conglomerate suites was created from the proportion of intrusive
determined using categorical kriging (indicator kriging of the
presence of absence of a single variable). To this end all
composites within the extended area were coded to either one or
zero depending on whether they were felsic intrusive or
conglomerate. A variogram model based upon these indicator

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MINING BENCH HEIGHT EVALUATION FOR THE WALLABY RESOURCE

codes was modelled and used to estimate the proportion of

intrusive material for each block using ordinary kriging, with a
steeply orientated sample search.

The merged density was allocated using the proportion of

intrusive in a block and the density for pure intrusive and for
pure conglomerate.

All of the simulations for each ore type were validated by

comparing the input data histograms with the output simulated
values by ore-zone. Q-Q plots indicated very good correlation
between the input data and the simulated values per ore-zone.
In addition, spot checks on the variography showed good
reproduction of variogram models, which are constrained by
the wide spaced data.

The simulation models were ranked according to the grade at

zero cut-off, and the second lowest and second highest
simulation models (effectively the 5th and the 95th percentile
models) were selected to represent worst and best case scenarios
respectively. The middle, or median, model was selected as a
middle case scenario. Note that the ranking is based on the
average grade at zero cu-toff over the entire test area, and not for
any particular ore-zone, since ranking of individual ore-zones
could cause unrealistically conservative worst case and overly
optimistic upper case models, particularly when benches span
boundaries between ore-zones.

The ordinary kriged proportion model was then used to

weight the relative grades of conglomerate and intrusive when
the simulations were merged using the following formula:
Simulated grade in block = proportion of intrusive x
simulated intrusive grade + (1 proportion of intrusive) x
simulated conglomerate grade
The densities are similar between the rock types (three per
cent difference) and, given the variability generated by the
simulations, tonnage weighting of the grades was not
considered to be necessary.
Each of the 20 simulations was merged in this way, and the
average of all simulations after merging was also generated.

As an additional validation, the mean grades and coefficient of

variation (COV) per ore-zone for the input data and the median
simulation, together with the means from the kriged resource
model, are compared in Table 1. The median simulation data
clearly honours the input data, while some of the kriged model
results display more significant differences. Three 25 m spaced
east-west sections through the test volume for the overall median
simulation are shown in Figure 7. The simulation has been
reblocked to 10 mE x 10 mN x 5 mRL.

FIG 7- Diagram of three 25 m spaced east-west cross-sections through the median simulation, reblocked to 10 mN x 10 mE x 5 mRL.
TABLE 1
Comparison of gold statistics: composites, simulation and kriged model.

Ore-zone
Ore-zone 0
Ore-zone 50
Ore-zone 60
Ore zone 240
Ore-zone 250

2 m composites
Mean
0.11
2.11
1.66
2.69
0.45

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COV
2.609
2.607
1.325
1.284
2.039

Median simulation
Mean
COV
0.11
2.609
2.10
2.514
1.66
1.316
2.69
1.269
0.45
2.039

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Wallaby kriged model

Mean
0.25
2.03
1.53
2.83
0.48

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difficult to achieve high-grades if large selective mining units are

used. A large increase in tonnes with increasing block size is
evident in ore-zone 250 for low cut-offs. This is to be expected
form the volume-variance effect, and contrasts with a larger
change in grade for increasing block size at the higher cut-offs.
The slope and nature of the curves suggest that the kriged model
for ore-zone 250 is insufficiently smoothed and represents the
selectivity to be expected from blocks of less than 5 m x 5 m x
5 m. This is not generally expected from a kriged model, and an
explanation may be found in the search and sample selection
applied during the kriging.

CALIBRATING THE RESOURCE MODEL

One of the desirable outcomes from the simulation study was
the ability to investigate the selectivity of the kriged resource
estimate. Because the simulations were generated at a fine-scale,
and honoured both the statistical and spatial variability of the
input composite data, when reblocked to the dimensions of the
kriged estimate (ie 10 mN x 10 mE x 5 mRL) they provide a
range of outcomes, each of which is free of conditional bias, and
which can be used to look at the smoothness of the kriging.
The results for the overall study area, including all ore-zones,
are shown in Figure 8. This shows that, overall, the kriged model
sits within the range of the 10 mN x 10 mE x 5 mRL reblocked
simulations.

Implications for kriging

The comparison of the reblocked simulations and the kriged
model indicates that the kriged model performs reasonably well
overall, with the degree of smoothing commensurate with blocks
in the order of 5 mN x 5 mE x 5 mRL to 10 mN x 10 mE x
5 mRL. Based on this overall comparison, tonnage and grade
factors were prepared relative to the 10 mN x 10 mE x 5 mRL
reblocked simulation so as to report the grades and tonnages
expected for a range of block size and bench height scenarios at
a range of cut-off grades.

However, when individual ore-zones within the simulations

are compared with similar blocks in the kriged model, the results
are different. Figure 9 shows the results for ore-zone 50, and
Figure 10 shows the results for ore-zone 250. The ore-zone 50
results show that the grades for the reblocked simulation (10 mN
x 10 mE x 5 mRL) and the kriged model at 0 g/t, respectively.
However, the slopes and positions of the curves indicate that the
kriged model for ore-zone 50 is oversmoothed, and probably
represents the selectivity to be expected from blocks of at least
20 m x 20 m x 15 m. An explanation for the lower grade of the
simulations reblocked to larger block sizes compared to the
kriged model is that the reblocking includes the effect of
boundary dilution with increasing bench height, whereas the
kriged model does not.

However, it is clear from the comparison of grade-tonnage

curves for ore-zones 50 and 250 that there are differing degrees
of smoothing per ore-zone in the kriged model, with the
comparison for ore-zone 50 suggesting a moderate degree of
smoothing and ore-zone 250, in contrast, very little smoothing.
These differences are important since they highlight where the
kriged model may be expected to under- or over-perform relative
to the actual selectivity of the modelled block size. While it
would be possible to factor the model to reflect the differing
degrees of smoothing, a better approach would be that the
kriging parameters first be examined to identify whether the
necessary modifications can be effected by changing certain
kriging parameters.

The comparison of kriging results and various reblocked

(median) simulations for ore-zone 250 show a different result
(Figure 10). The grades for the reblocked simulation (10 mN z
10 mE x 5 mRL) and the kriged model at 0 g/t COG are similar,
at 0.45 g/t and 0.48 g/t, respectively. As expected, an increase in
simulation block size results in a general increase in tonnes and a
decrease in grade. The decrease in grade is most dramatic for
higher cut-offs in ore-zone 250. The implication is that it may be

3.50

1.6

Grade above cut-off, g/t

3.00

1.4
1.2
1.1

2.50

1,0
0.8
0.75

2.00
0.5

1.50

1.00
1000000

2000000

3000000

4000000

5000000

6000000

Tonnes

Kriged model

5th% simulation

50th% simulation

95th% simulation

FIG 8 Tonnage-grade curves for selected simulation reblocked to 10 mN x 10 mE x 5 mRL together with kriged model (in bold);
1 g/t cut-off has larger symbol.

202

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4th International Mining Geology Conference

MINING BENCH HEIGHT EVALUATION FOR THE WALLABY RESOURCE

1.6

Grade above cut-off, g/t

3.5

1.2

1.0
0.8

2.5

0.5
2

1.5

400000

600000

800000

1000000

1200000

Tonnes

Kriged model

50th% sim 10x10x5

15x15x15sim

5x5x5sim

20x20x15sim

FIG 9 Ore-zone 50 kriged model (in bold) and median simulations at various block sizes.

2.5
1.6
1.4
1.2
1.1

Grade above cut-off, g/t

1.0
1.5

0.8
0.75

0.5

0.5

0
0

1000000

2000000

3000000

4000000

Tonnes
Kriged model

50th% sim 10x10x5

15x15x15sim

5x5x5sim

20x20x15sim

FIG 10 Ore-zone 250 kriged model (in bold) and median simulations at various block sizes.

4th International Mining Geology Conference

Coolum, Qld, 14 17 May 2000

203

I M GLACKEN, M NOPP and M TITLEY

BENCH HEIGHT STUDY

1.40

Tonnage and grade factors

1.30

1.20
Factor

The reblocked simulations were used to investigate the effects of

using different bench heights for the proposed Wallaby pit. The
results from the various reblocking exercises were presented
relative to the 10 mN x 10 mE x 5 mRL reblocked simulation
which has been compared to the kriged results above. The other
simulations were presented as tonnage and grade factors for a
range of cut-off grades. The results for ore-zones 50 and 250 are
presented in Figures 11 to 14.

1.10

1.00

0.90

0.80
0.5

0.6

0.7

0.8

0.9

1.0

1.1

1.2

1.3

1.4

1.5

1.6

Cut-off Grade g/t

5x5x5

Factor

1.10

1.00

0.90

0.80
0.5

0.6

0.7

0.8

0.9

1.0

1.1

1.2

1.3

1.4

1.5

1.6

Cut-off Grade g/t

5x5x5
10x10x12.5

5x5x10
10x10x15

10x10x7.5
15x15x15

10x10x10

FIG 11 Tonnage factors for ore-zone 50 relative to 10 mN x 10 mE x

5 mRL blocks.

1.20

Factor

10x10x10

10x10x12.5

10x10x15

15x15x15

The results show generally that block sizes larger than the base
case generate more tonnage for any given cut-off grade, but at
lower grades than the base case. For ore-zone 50 the tonnage
increases with increasing cut-off grade up to a point, beyond
which the tonnage relative to the base case remains constant. The
tonnage curves for ore-zone 250 show that the larger blocks
show a drop-off in tonnage as the cut-off grade increases,
suggesting that the homogenisation of the higher grade and lower
grade portions of the mixed ore-zone 250 occurs more quickly at
larger bench heights. The grade factors for ore-zone 250 are also
fairly insensitive to changes in cut-off grade, reflecting the
dilution shown in the tonnage factor chart. The results show that
the choice of bench height may be more consequential for orezone 250 than for ore-zone 50, and that the cut-off grade in this
ore-zone has relatively little effect on the tonnage and grade
factors relative to the base case. In contrast, the choice of bench
height for ore-zone 50 appears to be less important that the cutoff grade.
The tonnage and grade factor curves were each modelled by a
polynomial regression method so that the tonnage and grade
relative to the base case could be determined for any
intermediate cut-off. This enabled the factors to be built directly
into the pit optimisation.

1.10

1.00

0.90

Dilution and ore loss factors

0.80
0.5

0.6

0.7

0.8

0.9

1.0

1.1

1.2

1.3

1.4

1.5

1.6

Cut-off Grade g/t

5x5x5
10x10x15

5x5x10
15x15x15

10x10x7.5

10x10x10

10x10x12.5

FIG 12 Grade factors for ore-zone 50 relative to 10 mN x 10 mE 5 mRL

blocks.

1.40
1.30
1.20
Factor

10x10x7.5

FIG 14 Grade factors for ore-zone 250 relative to 10 mN x 10 mE x

5 mRL blocks.

1.20

1.10
1.00
0.90
0.80
0.5

0.6

0.7

0.8

0.9

1.0

1.1

1.2

1.3

1.4

1.5

Cut-off Grade g/t

5x5x5
10x10x15

5x5x10
15x15x15

10x10x7.5

10x10x10

10x10x12.5

FIG 13 Tonnage factors for ore-zone 250 relative to 10 mN x 10 mE

5 mRL blocks.

204

5x5x10

1.6

The results of the reblocking were also presented as percentage

dilution and ore loss. The dilution was defined at a given cut-off
as the difference between the tonnage from larger blocks and the
base case (10 mN x 10 mE x 5 mRL) blocks, relative to the base
case blocks. This is effectively the relative change in tonnage
above a given cut-off. Ore loss was defined as the change in
grade between the larger blocks and the base case blocks relative
to those base case blocks. This ore loss is directly proportional to
the percentage change in revenue per tonne with changing block
size.
The dilution and ore loss factors were tabulated for a range of
cut-off grades and the issue of risk was introduced by examining
the differences between the low, median, and high-grade
scenarios. Overall, dilution rates vary between ten and 25 per
cent relative to the base case block size, with larger block sizes
incurring more dilution. For tightly constrained ore-zones such
as 50, the change in dilution and ore loss is relatively small
moving from smaller blocks to larger blocks. However, for orezone 250, larger block sizes incur proportionally more dilution.
The spread of outcomes between the high and low simulations is
much greater for ore-zone 250 than for ore-zone 50, reflecting
the much greater uncertainty in the definition of the 250 orezone. The dilution and ore loss results show that recovery from
ore-zone 250 would be maximised with smaller benches.

Coolum, Qld, 14 17 May 2000

4th International Mining Geology Conference

MINING BENCH HEIGHT EVALUATION FOR THE WALLABY RESOURCE

OUTCOMES OF THE STUDY

ACKNOWLEDGEMENTS

The use of simulation at Wallaby has provided a number of

benefits for the mine planning and feasibility study activities.
Firstly the resource estimate has been validated, and areas of
potential under- and oversmoothing highlighted. Secondly, the
analysis of different bench heights as provided by the reblocked
simulations has led to the generation of a range of tonnage and
grade correction factors which can be used in reserve
optimisation scenarios and over the range of expected cut-off
grades. The calculation of dilution and ore loss percentages for
various ore-zones, cut-off grades, and simulation scenarios has
shown the sensitivity of the ore-zones to bench heights and cutoff grade combinations. Upon the input of mining costs based on
the predicted equipment and blasting scenarios for the various
bench heights it will be possible to generate actual forecast
revenue figures. Finally, the analysis of high, low, and median
scenario simulations has highlighted those areas which are very
robust (low range of outcomes) and those areas which are high
risk (high range of outcomes). The optimisation of end-member
simulations, ranked on those critical areas (such as the grade and
tonnage of ore-zone 250) will reveal the robustness of any pit
design.
A further application of conditional simulation, not yet used at
Wallaby, would be to sample a chosen simulation or simulations
on various grade control grids. This could be used as a first pass
analysis of the implications and costs of different grade control
patterns and could be used to optimise drilling costs.
Overall, the application of conditional simulation has lent an
extra dimension to the feasibility study through the
quantification of risk, the validation and calibration of the
resource, and the important information for the economic and
mining evaluation of suitable bench heights.

4th International Mining Geology Conference

The management of Placer (Granny Smith) and Delta Gold have

given permission to publish these findings. Tim Keleman and
Mathew Matheson at Granny Smith assisted with geological and
grade control aspects of the study, and Elizabeth Haren
completed the variography, geological modelling and data
preparation. Jacqui Coombes, Steve Potter, and Craig
MacDonald of Snowden helped generate and post-process the
simulations. Vivienne Snowden acted as project review.

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