Optimisation of the grade control procedures

at the Yandi iron-ore mine, Western Australia:

geostatistical approach
M. Z. Abzalov*1, B. Menzel2, M. Wlasenko2 and J. Phillips2
Effectiveness of ore grade control at operating mines depends on both the quality and quantity of
the samples used. Therefore, optimisation of grade control procedures requires analysis of sample
quality and their spatial distribution. This approach, implying quantitative estimation of both these
factors and quantification of their contribution to the grade control errors, was used for comparing
two different grade control procedures at the Yandicoogina (Yandi) iron-ore open pit mine, located
in the eastern part of the Pilbara region of Western Australia. At Yandi, pisolitic iron oxide
mineralisation is distributed within a meandering palaeoriver channel, characterised by abundant
clay pods that contain the deleterious components; in particular Al2O3 and SiO2. The irregular
shapes and highly erratic distribution of the clay pods are a serious challenge for grade control at
this mine. Current grade control procedures at the Yandi open pit are based on sampling 10 m
deep blast holes on a 666 m grid. An alternative approach was considered of using reverse
circulation (RC) holes. However, study of the sample duplicates and direct comparison of the blast
holes and RC holes drilled at distances approximately 1 m apart (i.e. twin holes) have revealed that
use of RC drilling does not guarantee an improvement in the quality of the samples. Reverse
circulation samples exhibit precision errors similar to that of the blast holes and both sets of data are
characterised by large nugget effects on the variograms of Al2O3 values. It was also noted that RC
samples were biased, underestimating Al2O3 and SiO2 grades, and overestimating Fe grades. The
Sequential Gaussian conditional simulation model was used for estimation of grade control errors
associated with both grade control techniques. This model has shown that using a grid of 25625 m
for grade control leads to 12?3% of the selective mining unit sized blocks being misclassified, which
is more than a two-fold increase in comparison with current procedures based on sampling blast
holes, when approximately 5?8% of SMU blocks are misclassified. In general, comparative analysis
of the two grade control approaches at the Yandi mine shows that using the RC holes drilled as the
25625 m grid will not reduce the grade control errors. In fact, it can produce the opposite effect,
significantly increasing the number of misclassified ore and waste blocks.
Keywords: Iron, Grade control, QAQC, Conditional simulation, Yandi mine, Pilbara

This paper is part of a special issue on grade control and geostatistics of iron ore deposits

Introduction and for determining the destination of the material types

Grade control data are acquired at the pre-production
stage to assure that ore that is being hauled from the
open pit meets the required grade and metallurgical
specifications. The detailed information collected at the
grade control stage is used for separating ore from
waste, usually referred to as ‘ore-waste classification’,
1
Rio Tinto Exploration, 37 Belmont Avenue, Belment, WA 6104, Australia
2
Rio Tinto Iron Ore, Resource delelopment, Perth, WA 6000, Australia
*Corresponding author, email marat.abzalov@riotinto.com
depending on the ore characteristics.
Choice of the grade control procedures requires
finding the optimal combination of quality and quantity
of grade control data to allow cost effective delineation
of ore and waste blocks and accurate determination of
the characteristics of the mined ore. In practice, selection
of the grade control techniques is often based on
personal preferences of the mine managers and is rarely
supported by quantitative estimates of the potential
grade control errors associated with different data
qualities and the spatial distribution of the samples.
An alternative approach to optimisation of grade

ß 2010 The Australasian Institute of Mining and Metallurgy

Published by Maney on behalf of the Institute and The AusIMM
Received 19 January 2011; accepted 3 May 2011
132 DOI 10.1179/1743275811Y.0000000007 Applied Earth Science (Trans. Inst. Min. Metall. B) 2010 VOL 119 NO 3

1 Map showing location of the Yandicoogina (Yandi) mine in Western Australia
control procedures and parameters is Conditional
Simulation (Goovaerts, 1997; Chilès and Delfiner,
1999), the geostatistical technique which allows the
generation of mathematical models of the ore bodies
and the use of these models for estimation the grade
control errors associated with the different proposed
drill grids (Abzalov and Bowers, 2009).
The geostatistical approach was applied at the
Yandicoogina (Yandi) iron-ore open pit mine (Fig. 1).
At this mine the Al2O3 and SiO2 are the main deleterious
components and together with Fe grade are used for
classification of the mined materials. In particular,
accurate knowledge of the Al2O3 and SiO2 contents is
important for separation of the mined ore from waste
and for mine production planning, and therefore their
content needs to be accurately estimated during grade
control.
Current grade control procedures at the Yandi open
pit are based on sampling 10 m deep blast holes
distributed on 666 m grid. An alternative approach
was considered for grade control based on sampling of
reverse circulation (RC) holes, drilled at the pre-
production stage. The drill spacing between RC holes
is 25625 m, i.e. significantly broader than the currently
used blast holes. One of the reasons for the proposal to
change grade control procedures from blast holes to RC
holes was an assumption that RC samples are of better
quality than samples collected from the blast-hole cones.
It was important to check this assumption before any
decision was made. The consequences of the four times
increased distance between the grade control samples
also had to be quantitatively estimated before mine
management could make an informed decision on the
two alternative approaches. Methodology of the study
and findings are described in this paper.
Geological background
The Yandi open pit mine is located in the eastern Pilbara
region of Western Australia (Fig. 1). It hosts pisolitic
iron-oxide mineralisation distributed within part of the
Marillana – Yandicoogina – Weeli Wolli palaeoriver
channel (Hall and Kneeshaw, 1990, Ramanaidou et al.,
2003). The deposit is usually referred to as Channel Iron
Deposit (CID-type), emphasising the nature of the host
Applied Earth Science (Trans. Inst. Min. Metall. B)
Abzalov et al. Grade control at Yandi mine, Pilbara region, Australia
structure that is the course of an ancient river. It is also
known as a pisolitic iron-ore deposit, because of the
nature and geometry of the iron oxides that are infilling
the palaeochannel (Ramanaidou et al., 2003). CID-type
is the preferred terminology for describing this type of
deposit in the Pilbara region (Ramanaidou et al., 2003).
The palaeochannel is approximately 80 km long and
600 m wide (Fig. 1) and marks the course of mid-
Miocene creeks that cut into the weathered surface of
the Weeli-Wolli Formation. The shape of the palaeo-
channel is strongly meandering in plan (Figs. 1 and 2),
but relatively simple and saucer-shaped in cross-section
with no significant folds or faults (Fig. 3).
Sedimentary formations that make up the palaeo-
channel have been subdivided into several units (Fig. 3)
which are overlain by barren clay-rich sediments
representing a transported regolith and thin alluvial
cover. All sedimentary formations within the palaeo-
channel contain iron oxides, however ore grade miner-
alisation is distributed within a relatively thin zone,
known as the Main Ore Zone (Table 1); this zone is
approximately 50 m in thickness in the centre of the
channel, thinning toward the channel margins (Fig. 3),
and is distributed as a continuous bed along the strike of
the palaeochannel (Fig. 2).
The iron-oxide pisoliths filling the palaeochannel
generally have hematitic cores surrounded by goethitic
rims and cemented by a goethitic matrix to form an
indurated rock. Composition of the iron-oxide miner-
alisation and ore quality are relatively consistent except
for the distribution of Al2O3 (Fig. 2) and to a lesser
degree SiO2, i.e. the main deleterious components of the
Yandi ore. The average coefficient of variation of Al2O3
ranges from 93?2 to 102?6% in the Main Ore Zone,
which is the highest variability among all measured
components of the iron ore at Yandi (Table 1). The level
of Al2O3 and SiO2 content is lower and less variable at
the centre of the channel than at the edges (Fig. 2).
Distribution of these components, in particular Al2O3,
reflects the distribution of clay minerals (e.g. kaolinite –
Al2(OH)4[Si2O5]) which are more abundant at the edges
of the palaeochannel (Figs. 2 and 3) and toward its base.
Systematic increase in the average Al2O3 content is
shown in Fig. 2 from GVU though GVL (both parts of
the Main Ore Zone, see Fig. 2) to LGC and basal
2010 VOL 119 NO 3 133
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Abzalov et al.

Applied Earth Science (Trans. Inst. Min. Metall. B)

location of the cross-section shown in Fig. 3

2010
Grade control at Yandi mine, Pilbara region, Australia

VOL
average content in GVU is higher than in GVL
conglomerates (Table 1) and is consistent with increase
Al2O3 (wt-%). The map was generated during the

rock faces exposed in the Yandi open pit (Fig. 4b). SiO2
in the clay content with depth, as can be observed at the
2 Maps of the mine benches showing distribution of the

also increases at the channel margins; however, its

holes and the blast-hole assays (Fig. 5). Location of
the map area is shown in Fig. 1. Line ‘A-B’ denotes
course of this study using available diamond/RC drill

119
3 NO
Table 1 Distribution of the main iron ore components between stratigraphic units composing the Yandi paleochannel and the basement rocks*

Stratigraphic Fe% Al2O3% SiO2% P% LOI%

unit (explanation Number
in Fig. 3) of samples Mean Range SD CV% Mean Range SD CV% Mean Range SD CV% Mean Range SD CV% Mean Range SD CV%

ALL 3048 29.08 8.68–61.21 7.12 24.5 6.5 1.37–24.81 3.4 52.3 45.51 6.27–79.41 13.14 28.9 0.027 0.005–0.075 0.006 22.2 4.19 1.54–24.00 1.85 44.2
ECC 2425 33.9 2.93–59.70 11.07 32.7 14.72 0.72–32.30 4.55 30.9 25.36 1.60–62.83 11.14 43.9 0.017 0.003–0.130 0.009 52.9 9.08 3.10–18.07 1.66 18.3

WCH 2153 50.08 2.16–63.26 8.38 16.7 6.79 0.41–30.16 4.37 64.4 11.64 0.02–55.02 6.96 59.8 0.038 0.004–0.169 0.015 39.5 8.71 4.02–20.21 1.5 17.2
GVU Main 14 921 59?04 4?60–64?54 2?55 4?3 1?34 0?18–29?99 1?25 93?3 4?98 1?95–53?55 2?37 47?6 0?044 0?007–0?300 0?011 25?0 8?94 2?51–13?98 1?13 12?6
ore zone
GVL 16 558 58?17 0?20–62?26 3?12 5?4 1?56 0?24–31?19 1?6 102?6 3?85 1?61–76?89 2?84 73?8 0?062 0?010–0?197 0?017 27?4 11?05 2?79–13?84 0?86 7?8
LGC 4118 50.44 1.75–60.79 9.18 18.2 4.89 0.17–31.17 4.17 85.3 10.73 2.01–78.37 9.49 88.4 0.076 0.006–0.750 0.03 39.5 11.44 3.69–14.30 1.07 9.4

BCC 2449 45.83 1.88–64.31 10.68 23.3 8.69 0.47–35.60 5.14 59.1 15.1 1.53–88.26 13.34 88.3 0.064 0.004–0.311 0.034 53.1 9.32 1.87–20.38 2.07 22.2
WW 574 39.37 0.79–63.20 14.23 36.1 9.04 0.38–33.98 6.76 74.8 24.84 1.15–88.43 19.45 78.3 0.06 0.004–0.397 0.042 70.0 8.77 1.35–16.95 3.06 34.9
*SD5standard deviation; CV% (coefficient of variation)5100%6(SD/mean).

3 Cross-section of the Yandi palaeochannel generalised from the mine geology documentation at the Yandi pit. Clay-rich
areas are delineated from the reserve model. Location is shown in Fig. 2
(Table 1), mainly because of higher content of opaline
silica infilling pores in the pisolitic iron ore.
Clay minerals at the Yandi deposit occur as irregular
disseminations (Fig. 4a), coating joint surfaces and as
clay pods of highly irregular shapes, including lenses,
desiccation joint infillings (Fig. 4b) and void-fills varying
from simple rounded or angular occurrences to complex
amoeba-like forms (Fig. 4b and c). Clay pods vary in
size from centimetres to several metres across (Fig. 4).
Accumulation of clay in the palaeochannel initially
occurred during deposition of the iron-oxide pisoliths and
continued during the diagenetic cementation and super-
gene weathering of consolidated iron-oxide rich sediments
infilling the channel. During weathering, the clay was
introduced from the weathered basement rocks and from
clay-rich sediments overlying the palaeochannel (Fig. 4c).
Prolonged exposure to hydration and oxidation processes
below the ancient water table has enhanced remobilisation
of the clay minerals into voids, creating the final
distribution pattern of Al2O3 and SiO2 at the Yandi mine.
Study methodology and data
Comparative analysis of the blast holes and the RC
drilling has been performed in this study to determine the
optimal grade control approach at the Yandi mine. In
particular, the potential errors which the two approaches
produce in classification of the mined materials as ore and
waste had to be quantitatively estimated and compared.
The sources of potential grade control errors are sample
quality (accuracy and precision) [Accuracy is a measure
of how close the sample value is to the true grade; and
precision, or repeatability, is a measure of how close
sample values are to one another (Abzalov, 2011).] and
their spatial distribution, in particular the distance
between samples. The study was mainly based on data
collected from bench 500–510 m RL of the Yandi open
pit mine (Fig. 5), an area which contains both blast-holes
and resource definition drill holes (diamond and RC).
The drill-hole samples were composited to the same
bench height as the blast holes. In total, bench 500–510 m
RL contains 35137 blast-hole samples and 921 compos-
ited drill-hole samples, of which 4326 blast-hole samples
and 68 drill-hole composites are located in the detailed
study area (Fig. 5).
Quality of the grade control samples has been
quantified by estimating their accuracy and precision.
N Accuracy has been estimated by comparing blast-
hole samples and bench-height composited RC
Applied Earth Science (Trans. Inst. Min. Metall. B)
Abzalov et al. Grade control at Yandi mine, Pilbara region, Australia
samples with composites of full blast-hole cones. In
total, six blast-hole cones have been processed.
N For diagnostics of possible biases, twin-hole pairs,
where distances between RC and blast holes are
approximately 1 metre, have been analysed. The
methodology of the twin holes analysis is explained
in Abzalov (2009).
N Precision (repeatability) of the analytical data was
estimated by analysing duplicate samples. Only field
duplicates (Abzalov, 2008) have been used in this
study. Precision error is estimated and reported as the
average coefficient of variation (CV%) of the paired
data (equation (1)). This estimator is useful for
variables characterised by strongly skewed statistical
distributions and where outliers are present. It has
been proposed as the universal measure of relative
precision error in mine geology applications (Stanley
and Lawie, 2007; Abzalov, 2008)
( " #)1=2
2X N
(ai {bi )2
CV%~100| (1)
N i~1 (ai zbi )2
In the current study 553 blast-hole sample duplicate
pairs and 1040 RC and diamond sample duplicate
pairs have been analysed.
N The variance of duplicate samples has been
compared with the nugget effect [Nugget effect is
a geostatistical term defining ‘...an apparent
discontinuity in the experimental variogram near
the origin caused by measure-ment errors or by
nested structures that have ranges smaller than the
sampling interval, or both.’ (Olea, 1991, p. 54)] of
the pair-wise relative variograms. Conventional
formula of the pair-wise relative variogram
(Goovaerts, 1997) is as follows (equation (2))
2X N
½Z(xi ){Z(xi zh)2
cPWR (h)~ (2)
N i~1 ½Z(xi )zZ(xi zh)2
where Z(x) is a value of variable Z at the location
x, and h is a vector separating Z(x) from Z(xzh).
N CV% (equation (1)) is a square root of equality 2
and it represents a case when vector h separating
the data pairs is equal to zero.
In order to quantify the consequences of the four times
increased distance between samples if RC drilling ra-
ther than blast-hole drillings is implemented for grade
control purposes, the number of mining blocks misclassi-
fied by both approaches has been assessed. The estimation
2010 VOL 119 NO 3 135
Abzalov et al. Grade control at Yandi mine, Pilbara region, Australia
4 Distribution of the clay minerals at the Yandi mine: a
mixture (CL) of clay and limonite filling voids and
replacing iron-oxide pisoliths; b clay pods (CL) irregu-
larly distributed in the iron-ore bed exposed at the pit
wall; c clay minerals (white colour) filling the joints in
the weathered iron-stone unit (dark brown)
was based on the geostatistical models generated using se-
quential Gaussian conditional simulation (SGS) technique
(Goovaerts, 1997; Chilès and Delfiner, 1999) implemented
in commercial geostatistical software Isatis (Bleines et al.,
2001). Sequential Gaussian conditional simulation is a
Gaussian-based method of conditional simulation which
uses data transformed to a Gaussian distribution with a
zero mean and a unit variance (i.e. Gaussian anamorpho-
sis) and applies a Monte-Carlo simulation algorithm to the
regionalised variables. One model was generated to
represent the current grade control practice with blast-hole
samples distributed as a 666 m square grid, and the
alternative model represents the RC holes distributed as a
25625 m square grid. The SGS models were generated for
the detailed study area shown in Fig. 5.
Details of SGS technique, as applied in the current
study, and the parameters used, are as follows:
N blast-hole grades of Al2O3 and SiO2 have been
simulated to an exhaustively dense (161 m) grid
136 Applied Earth Science (Trans. Inst. Min. Metall. B) 2010
5 Map showing location of the blast-hole samples and
the drill holes used for resource definition (red dots).
Detailed study area is the area for which the SGS mod-
els were generated
within the detailed study area (Fig. 5). The
simulation used a sequential neighbourhood, with
a dilation radius of 400 m (X)6200 m (Y)65 m
(Z). The maximum number of the conditioning data
nodes and the simulated nodes were both set to 40.
Experimental variograms and their models have
been published elsewhere (Abzalov et al., 2007). As
the SGS method assumes a multi-Gaussian property
of the studied random variable and its diffusive
distribution model, these assumptions need to be
tested prior to application of the modelling meth-
odology. In the current study, the border effect
was tested by calculating the ratios between cross-
variograms of the indicators and indicator variograms
(Abzalov and Humphreys, 2002). Multi-Gaussianity
was tested by determining variograms of indicators
calculated for the chosen data percentiles and com-
paring them with indicator variograms calculated for
the same percentiles of the Gaussian transformed data
(Goovaerts, 1997);
N representative realisation of the simulated data, whose
grades and spatial distribution patterns closely repro-
duce that of the blast-hole samples, have been chosen
for further study. This exhaustive set of data, distri-
buted as a 161 m grid, was used as a reference model
for estimating the grade control errors, i.e. this model
is considered as the ‘True’ iron-ore mineralisation;
N minimum size of the block that can be selectively
mined at the Yandi open pit is 25625610 m. The
cut-off grade for Al2O3 is taken as ,1?5 wt-%. Thus,
the selectively minable unit (SMU) is considered as ore
if the estimated Al2O3 grade is less than 1?5%. For
each (SMU) their ‘True’ contents of Al2O3 and SiO2
have been estimated using exhaustive data, distri-
buted as the 161 m grid, and representing the ‘True’
mineralisation;
N the grade control errors in classification of the
SMU size blocks have been estimated for two
grids, one of 565 m which is similar to the current
distribution of the blast holes, and one of
25625 m which was considered as an alternative
grade control grid. For both of these grids the
metal grades of the SMUs were estimated by the
ordinary kriging (OK) technique (Goovaerts,
1997). Errors in classification of the SMU size
blocks were assessed by comparing their grades
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 Abzalov et al. Grade control at Yandi mine, Pilbara region, Australia

6 Comparison of the pairs of sample duplicates. a–c blast-hole data: a Al2O3; b SiO2; c Fe. d–f RC and diamond holes:
d Al2O3; e SiO2; f Fe. RMA denotes the reduced major axis (Sinclair and Bentzen, 1998; Abzalov, 2008). Deviation of
the RMA from 1 : 1 line indicates for a possible accuracy issue between compared pairs of data

estimated by OK with initially generated ‘True’ Results

values. In other words, the estimated OK grades,
representing the grade control models, were Duplicate samples
compared with the initially generated exhaustive Results of the duplicate sample analysis show that both
data set which was considered ‘True’. types of data, blast-hole cuttings and RC samples,

Table 2 Statistical parameters deduced from pairs of the sample duplicates

Yandi mine Hopes Down West Angeles

Blast holes RC/diamond (10 m composites) RC holes RC holes

Al2O3 SiO2 Fe Al2O3 SiO2 Fe Al2O3 SiO2 Fe Al2O3 SiO2 Fe

Number of sample pairs 553 553 553 97 93 93 228 228 228 8088 8088 8088
Mean (1) % 1.4 4.4 58.8 1.6 4.6 58.8 2.1 3.5 62.2 5.7 12.6 51.3
Mean (2) % 1.4 4.4 58.7 1.7 4.8 58.6 2.1 3.5 62.2 5.7 12.5 51.4
Standard deviation (1) 0.8 1.4 1.2 1.3 2.0 2.5 6.6 14.6 14.1
Standard deviation (2) 0.8 1.5 1.3 1.3 2.7 3.3 6.5 14.5 13.9
Correlation 0.88 0.88 0.8 0.99 0.97 0.97 0.92 0.95 0.94 1 1 1
CV% (estimated using equatjion (1)) 14?7 8?8 1?0 11?6 7?4 1?5 12?4 13?7 1?4 6?9 7?0 2?2

Applied Earth Science (Trans. Inst. Min. Metall. B) 2010 VOL 119 NO 3 137
Abzalov et al. Grade control at Yandi mine, Pilbara region, Australia
a map showing location of the studied pairs of holes; b Al2O3; c SiO2; d Fe
7 Comparison of the blast-hole data with resource definition drilling (RC and diamond holes) separated by a distance of
1m
exhibit similar levels of precision errors (Table 2). In
both cases Al2O3 and SiO2 are characterised by
variability significantly larger than Fe grades. CV%
values estimated from the blast-hole duplicates are
14?7% for Al2O3 (Fig. 6a), 8?8% for SiO2 (Fig. 6b) and
1?0% for Fe (Fig. 6c, Table 2). Duplicates of the RC and
diamond samples show similar variation. Their esti-
mated CV% values are 11?6% for Al2O3 (Fig. 6d), 7?4%
for SiO2 (Fig. 6e) and 1?5% for Fe (Fig. 6f, Table 2).
These values are similar to precision errors observed in
RC samples collected at other mines of the Pilbara
region (Abzalov, 2008), in particular at Hope Down, as
shown in Table 2 for comparison. The lower precision
error of the Al2O3 assays at the West Angelas deposit
(Table 2) is explained by the more even distribution of
the iron-ore components, in particular the absence of
clay pods at West Angelas.
According to this study both types of samples exhibit
a similar level of repeatability. Their precision errors,
estimated from the pairs of sample duplicates, vary
approximately from 12 to 15% for Al2O3 and from 9 to
13% for SiO2. Both sampling methods produce a reliable
Table 3 Comparison of the average grades of the six full
cones with average grades of the corresponding
blast-hole and composited RC samples
Fe/wt-% SiO2/wt-% Al2O3/wt-%
Full cone 58.18 6.38 1.14
Blast-hole samples 58.59 6.16 1.06
RC samples 59.01 5.8 1.02
138 Applied Earth Science (Trans. Inst. Min. Metall. B) 2010
and highly repeatable estimation of the Fe grade, with
CV% less than 2%. The finding is consistent with the
global statistical parameters of the iron-ore components
at the Yandi deposit (Table 1) and their geological
distribution (Figs. 2–4) and clearly shows that using RC
hole samples instead of sampling blast-hole cuttings will
not improve repeatability of the grade control assays.
Full blast-hole sample cone analysis
The results of the comparison of full blast-hole cone
grades from six locations with the related blast-hole
samples and RC composites are summarised in Table 3.
Blast-hole sample grades of Al2O3 and SiO2 are slightly
higher than their corresponding values in the full cone
assays, whereas Fe grades are lower. Comparison of the
RC composites with full cone assays shows a similar
trend; however, the magnitude of the differences is larger
than that of the blast-hole samples. These results clearly
show that RC and blast-hole samples are equally biased
in comparison with full cone assays. Both grade control
sampling techniques underestimate Al2O3 and SiO2 and
overestimate Fe grade. Although the study of only six
full cones is insufficient for conclusive assessment of
magnitude of the sample biases, it indicates that using
RC drilling for grade control at this mine will not
necessarily provide non-biased samples. Data from this
study also show that RC samples can exhibit larger bias
that blast-hole samples.
Twinned holes analysis: short range variability
study
The contribution of short range variability (i.e. the grade
variation occurring at distances less than the proposed
VOL 119 NO 3

a map showing location of the studied pairs of holes; b Al2O3; c SiO2; d Fe
8 Comparison of the blast-hole data with resource definition drilling (RC and diamond holes) separated by a distance of 10 m
grade control grids) to the global variance of the grade
control samples has been assessed by comparison of the
blast-hole grades with grades of closely drilled RC (and/
or diamond) holes.
Results show that blast-hole grades are consistent
with RC (and/or diamond) grades when the holes are
drilled as twins (Abzalov, 2009) with an average distance
between them of approximately 1 m (Fig. 7a–d). In this
case, the precision errors deduced from the matching
pairs of blast holes and RC (and/or diamond) holes are
comparable to the errors calculated from duplicates of
the blast-hole samples (Table 2).
When the distance between holes increases the varia-
tion between grades of the matching pairs of holes also
increases. Holes separated by a distance of 10 m show an
excessively poor repeatability of the results (Fig. 8a–d)
with the CV% value of Al2O3 equals to 35?7% (Fig. 8b).
This indicates that significant variations of ore compo-
nents occur over relatively short distances. Therefore,
using a sampling grid of 25625 m will be suboptimal for
grade control purposes at the Yandi mine.
Variograms
Pair-wise relative variograms have been calculated for Fe,
Al2O3 and SiO2. The experimental variograms and fitted
models are shown in the Appendix of the paper. Variograms
of the Gaussian transformed variables, which were used for
the SGS model have been published elsewhere (Abzalov et
al., 2007). The variograms of Al2O3 and SiO2 exhibit a local
component, which indicates that significant variability of
these components occurs at distances less than 20 m.
Nugget effect of the variograms is in good accordance with
precision errors of the Fe, Al2O3 and SiO2 assays estimated
from the sample duplicates (Table 2, Appendix).
Applied Earth Science (Trans. Inst. Min. Metall. B)
Abzalov et al. Grade control at Yandi mine, Pilbara region, Australia
Estimation of the grade control errors using the
SGS model
The SGS model was constructed for Al2O3 and SiO2, the
most erratically distributed variables in the Yandi ore.
Grades of the SMU-sized blocks were modelled from the
data, distributed as 565 m and 25625 m grids. Results
are summarised on the scatter-diagram (Fig. 9) and
generalised map of the detailed study area (Fig. 10).
Scatter-diagrams (Fig. 9) show the distribution of the
estimated (kriged) grades of the SMU size blocks plotted
against their ‘True’ values. The cut-off values are also
shown on the diagrams. They divide the plot area into
four quadrants which are used for estimation the
number of misclassified blocks (Fig. 9a). In the current
study, the ‘True’ grade was known a priori from an
exhaustive set of the simulated data. Comparison of the
estimated grades of the SMU blocks with their ‘True’
values shows that approximately 5?8% of the SMU
blocks are misclassified when grade control sampling is
performed at a 565 m grid (Fig. 9b). The error
increases to 12?3% of misclassified blocks when the
sampling grid increased to 25625 m (Fig. 9c).
The ‘True’ ore and waste blocks are defined by the
565 m and 25625 m (Fig. 10) sampling grids. These
clearly show that most of the ‘True’ waste blocks could be
missed and erroneously classified as ore if grade control
had been performed using a 25625 m sampling grid.
Discussion and conclusions
It is well known among mining geology practitioners
that quality of the grade control procedures depends on
both the quality and quantity of the samples. Just
improving the sample quality does not always lead to
2010 VOL 119 NO 3 139
Abzalov et al. Grade control at Yandi mine, Pilbara region, Australia
a sketch explaining principals of the classification errors calculation using the error quadrants; b Al2O3 grades of SMU
blocks estimated using 565 m data versus ‘True’ grades; c Al2O3 grades of SMU blocks estimated using 25625 m data
versus ‘True’ grades
9 Diagrams of the estimated versus ‘True’ Al2O3 grades of the SMU blocks showing the increased number of misclassi-
fied SMUs when grade control drill spacing increases from 565 m to 25625 m
better defined ore and waste blocks if the spacing chosen
for the grade control samples is excessively broad. Thus,
a robust grade control procedure requires analysis of
sample quality and their spatial distribution and a
quantitative estimate of the contribution of these factors
to the grade control errors.
10 Maps of the ‘Detailed Study Area’ showing distribution
of the ORE and WASTE classified using estimated
Al2O3 grades of the SMU blocks
140 Applied Earth Science (Trans. Inst. Min. Metall. B) 2010
Optimisation of grade control procedures should be
based on comparative analysis of the sampling techni-
ques, supported by geostatistical modelling. In particular,
the errors associated with different sample spacings
should be quantitatively estimated using conditional
simulation methods. This methodology was used in the
current study to compare two different grade control
procedures for use at the Yandi iron-ore open pit mine.
At Yandi, the short term mine planning and production
quality control require accurate estimation of the metal
contents in SMU approximately 25625610 m in size.
For each of the SMU size blocks it is necessary to
accurately determine the Fe grade and contents of the
deleterious components, in particular Al2O3 and SiO2.
These components, in particular Al2O3, exhibit signifi-
cant variations at short distances which is related to
their presence in clay minerals, mainly distributed as
clay pods that are highly variable in size and shape
(Fig. 4). Given the deleterious nature of these two oxides
and their erratic distribution they represent the main
focus for grade control programs at Yandi.
Current grade control approach is based on sampling
of the blast-hole cuttings. The alternative technique was
to use closely spaced RC holes. The original assumption
was that the sample quality of the RC drilling would be
higher and therefore the use of RC drilling would allow
a better estimation of the grades of the SMU blocks.
Consideration for using RC holes for grade control at
Yandi mine was partially encouraged by successful use
of this technique for grade control purposes at the West
Angelas iron ore mine, which is also located in the
Pilbara region of Western Australia (Harmsworth et al.,
1990). However, at Yandi, study of the sample
duplicates and direct comparison of twin blast holes
and RC holes drilled approximately with 1 m separation
has revealed that the use of RC drilling does not
guarantee an improvement in the quality of the samples.
RC samples exhibit precision errors similar to that of the
blast holes (Table 2; Fig. 6). It was also noted that RC
samples proved to be biased, underestimating Al2O3 and
SiO2 grades, and overestimating Fe grades, when
compared to full cone assays (Table 3).
Structures of the variograms calculated using blast-
hole samples is similar to the variograms calculated from
VOL 119 NO 3

diamond and RC holes (Appendix). In particular, the
variograms of the Al2O3 values calculated from blast-hole
samples and RC/diamond samples both characterised by
large nugget effect (Appendix). This is consistent with
large variability of the Al2O3 contents in the iron ore and
large precision errors deduced from comparison samples
and their duplicates (Tables 2 and 4).
The SGS model concurs with the results of the
twinned holes analysis, showing that significant varia-
tions of the Al2O3 and SiO2 components occurs at
distances less than 10 m (Figs. 7 and 8). Comparing
SGS models generated using samples distributed as
565 m and 25625 m grids has shown that increasing
the drill spacing from 565 m (approximating the
current blast-hole spacing), to 25625 m (which was
considered for the RC-based grade control approach)
will lead to an approximately two-fold increase in the
number of misclassified SMU-sized blocks (Figs. 9 and
10). This generates increased dilution and ore loss, and
resulting in lower project value.
In general, comparative analysis of the two grade
control approaches at the Yandi mine has shown that
using RC holes drilled on a 25625 m grid will not
reduce the grade control errors. In fact, it can produce
opposite effect, significantly increasing the number of
misclassified ore and waste blocks.
Acknowledgements
Helpful discussions with colleagues from Rio Tinto Iron
Ore on the various estimation and risk assessment
techniques are gratefully acknowledged. The authors
also wish to thank G. Broadbent and the anonymous
reviewers of the AES journal for many useful comments.
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11 Experimental pair-wise relative variograms and their models estimated for a Al2O3, b SiO2 and c Fe grades using the
blast-hole sample assays
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12 Experimental pair-wise relative variograms and their models estimated for a Al2O3, b SiO2 and c Fe grades using the
RC and diamond hole samples composited to 10 m benches.

Table 4 Models of the pair-wise relative variograms of Al2O3, SiO2 and Fe grades estimated using the blast-hole samples

Modelled variable Nested structure Sill Range Comments

Al2O3 Major axis (Azi 050) Minor axis (Azi 140)

Nugget 0.045 Nugget effect
Spherical 0.0435 20 12 Local component
Exponential 0.028 140 140
Linear 0.01 1400 55 Regional drift

SiO2 Major axis (Azi 050) Minor axis (Azi 140)

Nugget 0.011 Nugget effect
Spherical 0.0215 25 25 Local component
Exponential 0.0135 175 140
Linear 0.0027 1400 57 Regional drift

Fe Major axis (Azi 050) Minor axis (Azi 140)

Nugget 0.00034 Nugget effect
Spherical 0.00065 35 18 Local component
Linear 0.0001 800 60 Regional drift

Table 5 Models of the pair-wise relative variograms of Al2O3, SiO2 and Fe grades estimated using the RC and diamond
hole samples composited to 10 m benches

Modelled variable Nested structure Sill Range Comments

Al2O3 Major axis (Azi 000) Minor axis (Azi 090)

Nugget 0.065 Nugget effect
Spherical 0.05 25 50 Local component
Exponential 0.035 175 160
Linear 0.01 1400 160 Regional drift

SiO2 Major axis (Azi 000) Minor axis (Azi 090)

Nugget 0.011 Nugget effect
Spherical 0.0215 25 50 Local component
Exponential 0.059 175 160
Linear 0.0048 1400 140 Regional drift

Fe Major axis (Azi 000) Minor axis (Azi 090)

Nugget 0.0003 Nugget effect
Spherical 0.00075 120 120 Local component
Linear 0.0001 1500 160 Regional drift

142 Applied Earth Science (Trans. Inst. Min. Metall. B) 2010 VOL 119 NO 3