Reserve Estimation

Reserve estimation combines volume, bulk density, and grade into tonnage and metal content; cut-off grade g_c separates economic from waste material. UNFC/JORC classification ties confidence to drill spacing and geostatistics.

Key formulas & points

Skim these first — then read the full notes below.

  • Measured, indicated, inferred resource classes
  • Krigeing geostatistical grade estimation
  • Dilution and recovery factors in reserve

Topic details

Introduction

Indian mines report reserves under UNFC code — G1/G2/G3 categories map to measured/indicated/inferred. Block models in Micromine or Surpac populate grade into 10×10×5 m blocks; kriging variance indicates estimation uncertainty.

Scope in B.Tech and GATE syllabus

Cut-off grade optimisation uses Lane's formula or iterative NPV — B.Tech exams often use simpler break-even: g_c = processing cost / (metal price × recovery). Dilution and mining recovery reduce in-situ grade to delivered mill grade.

Why this topic matters in practice

Hartman & Mutmansky distinguishes resource (in situ) from reserve (economic, legal to extract).

Key relations & formulas

Formulas (Indian textbook notation)

  • tonnageT=volume×bulkdensitytonnage T = volume \times bulk density

Formulas (Indian textbook notation)

  • blockmodelgrade×tonnes=metalcontentblock model grade \times tonnes = metal content

Formulas (Indian textbook notation)

  • cutoffgradegc:mineifrevenuecost>0cut-off grade g_{c}: mine if revenue - cost > 0

Notation and sign conventions

Relation 1 —
tonnageT=volume×bulkdensitytonnage T = volume \times bulk density

Formulas (Indian textbook notation)

  • tonnageT=volume×bulkdensitytonnage T = volume \times bulk density
Write this relation with symbols exactly as in Hustrulid Open Pit Mine Planning — Standard reference before substituting numbers. Examiners award partial marks for a correct setup even when arithmetic slips.
Relation 2 —
blockmodelgrade×tonnes=metalcontentblock model grade \times tonnes = metal content

Formulas (Indian textbook notation)

  • blockmodelgrade×tonnes=metalcontentblock model grade \times tonnes = metal content
Write this relation with symbols exactly as in Hustrulid Open Pit Mine Planning — Standard reference before substituting numbers. Examiners award partial marks for a correct setup even when arithmetic slips.
Relation 3 —
cutoffgradegc:mineifrevenuecost>0cut-off grade g_{c}: mine if revenue - cost > 0

Formulas (Indian textbook notation)

  • cutoffgradegc:mineifrevenuecost>0cut-off grade g_{c}: mine if revenue - cost > 0
Write this relation with symbols exactly as in Hustrulid Open Pit Mine Planning — Standard reference before substituting numbers. Examiners award partial marks for a correct setup even when arithmetic slips.

Fundamentals and definitions

Tonnage T = volume × bulk density — volume from wireframe or block model sum; density from lab tests zoned by lithology. Metal content = Σ (block tonnes × block grade) for each element.

Governing relations in practice

Cut-off grade: block is ore if grade ≥ g_c where g_c makes net smelter return positive after mining, processing, G&A. Raising g_c increases grade but loses tonnes — optimum maximises NPV not grade.

Design and analysis considerations

Kriging (geostatistics) weights nearby drill composites by spatial correlation (variogram model). Search ellipse orientation follows ore continuity direction. Do not krige without declustering biased drill data.

Advanced theory and extensions

Dilution: waste mixed into ore during mining — add to denominator. Mining recovery: fraction of in-situ ore actually extracted — multiply tonnage. Combined: plant feed grade = in-situ grade × recovery / (1 + dilution) approx.

Assumptions and validity limits

State assumptions explicitly before using any relation for reserve estimation — steady state, uniform properties, linear elastic material, ideal gas, incompressible flow, etc., as applicable.
Wrong assumptions invalidate the entire solution even when the formula is correct. In Mine Planning viva and GATE descriptive questions, listing valid assumptions often earns separate marks.

Step-by-step problem approach

1. Read the question and list given data with SI units (common in Mine Planning papers).
2. Draw a neat labelled diagram where applicable — examiners in Indian universities award diagram marks even when arithmetic slips.
3. Identify which relation from this topic applies to reserve estimation.
4. Use equation 1:
tonnageT=volume×bulkdensitytonnage T = volume \times bulk density
.
5. Use equation 2:
blockmodelgrade×tonnes=metalcontentblock model grade \times tonnes = metal content
.
6. Substitute values, compute, and verify units and sign (direction).
7. State conclusion in one line — e.g. safe/unsafe, stable/unstable, feasible/infeasible.

Applications & exam relevance

Reserve Estimation appears in life-of-mine studies. In Indian mining curricula this topic is tested because it connects theory to reserves, layout, and scheduling.
GATE and semester exams often combine reserve estimation with earlier units — revise prerequisites before attempting mixed problems.
Industry interview panels sometimes ask: "Where did you use reserve estimation?" — answer with a lab, mini-project, or plant visit example if possible.

Common mistakes in exams

• Reporting resource tonnage as reserve without economic cut-off
• Using dry density on wet in-situ volume
• Kriging block grade without compositing to equal support
• Ignoring dilution and recovery in mineable reserve statement

Quick revision checklist

Before attempting reserve estimation problems, confirm you can:
1. Measured, indicated, inferred resource classes
2. Krigeing geostatistical grade estimation
3. Dilution and recovery factors in reserve
Revise the solved examples in Hustrulid Open Pit Mine Planning — Standard reference and one previous-year GATE or university paper for this unit.

Worked examples

Try the problem first — open the solution when you are ready to check.

Break-even cut-off grade

Problem

Mining + milling cost ₹1200/t; metal price ₹6000/kg; recovery 90%. Find break-even cut-off grade g_c in g/t (1 ppm = 1 g/t).

Solution

Revenue per t at 1 g/t = (1/1000) kg × 6000 × 0.9 = ₹5.4/t per g/t
Break-even when 5.4 × g_c = 1200 → g_c ≈ 222 g/t — use correct units; if price per g: g_c = 1200/(6000×0.9/1000) check dimensional analysis carefully in exam.

Conceptual check — Reserve Estimation

Problem

In a Mine Planning semester or GATE paper you are asked: "State the main assumption, the governing relation, and one practical consequence of reserve estimation." What should a complete answer include?

📖 Standard books (India)

  • Hustrulid Open Pit Mine PlanningStandard reference

    Read: Syllabus unit

    Referenced in Indian B.Tech syllabus