Spatial dependence in mineral exploration
Some twenty years ago my son and I submitted to CIM Bulletin a paper on Precision Estimates for Ore Reserves. David, CIM Bulletin`s reviewer, blew a fuse because we didn`t refer to `twenty years of geostatistical literature`. We did study David`s 1977 Geostatistical Ore Reserve Estimation and Clark`s 1979 Practical Geostatistics. Neither author showed how to test for spatial dependence. So, we showed how to test for spatial dependence between gold assays determined in bulk samples taken from twelve (12) rounds in a drift. CIM Bulletin was but one of several journals to reject our paper. Yet, it was praised by and published in Erzmetall 44, October 1991. We could not show how to estimate the intrinsic variance of gold because but a single bulk sample was taken from each round.
It was easy to estimate the intrinsic variance of gold in Bre-X’s phantom resource. Bre-X’s quality control program was based on selecting and testing duplicate test portions of every tenth crushed and salted core sample. The set of duplicate gold assays for Bre-X’s bonanza borehole BSSE198 gave enough degrees of freedom to estimate the analytical variance with a proper degree of precision. Fisher’s F-test proved that the analytical variance and the first variance term of the ordered set are statistically identical. Hence, the intrinsic variance of gold in BSSE198 was statistically identical to zero. Plenty of placer gold was present in crushed and salted core samples but Bre-X’s bonanza borehole BSSE198 was barren.

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