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In this workshop we will review the auditing process for a resource model. The building
of a valid model from sample data requires sound geological modeling, geostatistical
methodology, assumptions, and resource calculations.
This technical review can be carried out through Process Review, Visual Inspection, and
Statistical Analysis. The goal of the audit is to examine the data and processes used by the
original resource geologist, as well as to create an audit report that in itself is repeatable
and will assist others in understanding the model.
We will cover these topics:
1. Why are we auditing?
2. Issues with Audits
3. Process Review
4. Visual Inspection
5. Statistical Analysis and Comparison
Mintec, Inc. 6. Review Reporting
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1. Why are we auditing?
Mining Before we start working on expanding or planning any mining operation which has a
Software resource model, we need to verify the validity of said model.
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Since There are industry standards which we need to uphold, as well as investors which we are
1970 accountable to.
a. SOX compliance -The Sarbanes-Oxley Act of 2002 is a United States federal law
passed in response to a number of major corporate and accounting scandals.
These scandals resulted in a decline of public trust in accounting and reporting
practices. The Act also covers issues such as auditor independence, corporate
governance, and enhanced financial disclosure.
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Auditing Models - Verifying Through Review, Inspection, and Analysis
3. Process Review
One of the very first steps in reviewing a resource model is to read the accompanying
report. Understanding the entire process, the assumptions, and the results is essential in
determining the validity of the final outcome. Other details to consider are changes in the
original database due to errors or missing data, as well as how and what items are stored in
assay, composite, and model files. All available resources should be listed in the report, so it
should be great place to start.
a. Report Mintec, Inc.
• The report accompanying the resource models will tell us about the Global
parameters used in interpretation, modeling, and resource estimation. A Mining
careful reading of this report can explain the organization of the database (i.e., Software
separate domains for lithology, alteration, and definition of mineral zones) Solutions
• Geological modeling assumptions and methods (i.e., what sections were Since
used and what explanation is given to the geology being interpreted). 1970
Running reserves on the model to make sure the volume matches the solid
volume could be a way for checking, by numbers, that solids have coded the
model as expected.
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Auditing Models - Verifying Through Review, Inspection, and Analysis
b. Multi-runs
After reading the report, we can open the MineSight® project itself and have a look
around. Open existing MineSight 3-D (MS3D) drillhole views, model views, and
solids, then open MineSight Compass™ (MSCompass) and take a look at the PCF
and all existing project files (assay, composite, survey, gridded surface, 3D block
models, gridded seam models, and maybe others). A great way to see what work
was done to create this model is to look at existing multi-runs, which if done well,
can give us exact information on the modeling process (Figures 1a through 1c).
Mintec, Inc.
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Auditing Models - Verifying Through Review, Inspection, and Analysis
• A detailed look at all procedures in the multi-run will give us all the details
needed to understand the modeling process and can answer many questions
about the methodology used. If the modeler was diligent, there will be
accompanying notes that will give us a good insight into the way the model
was built. Above is an example of an ideal multi-run and variable setup.
• Reproducibility/Parameter confirmation. The ability to rebuild a model from
scratch using the same procedures as the modeler will quickly confirm that all
parameters used are correct and have not been changed.
Mintec, Inc.
Global
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Auditing Models - Verifying Through Review, Inspection, and Analysis
Figure 3. msaudit.txt.
e. Document your audit! The importance of keeping a clear audit trail of your work
while reviewing the model can not be stressed enough. The ability to reproduce
any part of the review will save you time and will allow any changes in the review
process to be incorporated easily. As mentioned above in multi-runs, a record of all
procedures is essential. Also, keeping clear notes for all steps and parameters used
Mintec, Inc. in the review process will ensure a transparent audit.
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Auditing Models - Verifying Through Review, Inspection, and Analysis
4. Visual Inspection
a. Sectional Views
Being able to compare and visualize different elements of a resource project at a
glance is a great way to get a feel for the modeling process that was used. Most
resource projects will have an already-determined set of planes from which the
geology was interpreted. Being able to inspect the original assay data, composites,
geological solids/polygons, and model on these planes can be a valuable way to
gather information and get a better understanding of the deposit.
Mintec, Inc.
Global
Mining
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Auditing Models - Verifying Through Review, Inspection, and Analysis
Mintec, Inc.
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Figure 7. 2D Plan setup.
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Auditing Models - Verifying Through Review, Inspection, and Analysis
examined. If there are discrepancies between these (as shown in Figure 8) then
decisions must be made as to what can be done after measuring the effect these
could have on the final outcome.
Mintec, Inc.
Global
Mining
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Auditing Models - Verifying Through Review, Inspection, and Analysis
f. Solid Modeling Integrity. Gaps and overlaps in the interpreted solids can also
be spotted through visual inspection. Any such discrepancies can point out
weaknesses in the interpretation and could determine the action which must be
taken in order to determine how to correct these flaws.
g. Make sectional views and make sure solids match blocks after coding.
h. Create repetitive plotting procedures for checking data if these procedures are not
part of the project already. The ability to create plots in a simple and reproducible
way increases the efficiency of the audit as you work through it. You may need to
check the results several times so you want to be easily able to recreate the plots
i. Check the validity of solids using the MS3D Surface | Verify function. Examine
solids to see if they intersect. Many times coding errors of blocks can be caused by
bad solids. Excessive intersection of solids can also result in coding errors.
Mintec, Inc.
Global
Mining
Software Figure 10. Customized report.
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Since b. Box plots by rock give us a quick visual side-by-side representation of the
1970 distribution of our data by standard measurements (Mean, Median, 1st and 3rd
Quartiles, Observed Min and Max, among others) shown below in Figure 11.
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Auditing Models - Verifying Through Review, Inspection, and Analysis
Mintec, Inc.
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Making a triple plot of assay data, composites, and model blocks will show how the data
responds to the various operations. Theoretically the curves of the data should be identical.
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Auditing Models - Verifying Through Review, Inspection, and Analysis
d. Histograms can also give us a quick visual idea of the population with which we
Mintec, Inc. are dealing.
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Auditing Models - Verifying Through Review, Inspection, and Analysis
e. Verify that variograms follow interpolation searches. Through MSDA we can run
variograms on the composite data and ensure that the parameters used in the
MSCompass interpolation procedures are valid. The nature of variography dictates
that we have a very clear idea of what parameters were run for variograms. A
slight difference in the setup (i.e., lags, directions, and nugget) could give us very
different results.
Mintec, Inc.
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Figure 14. MSDA variogram vs. MSCompass interpolation searches. Since
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Auditing Models - Verifying Through Review, Inspection, and Analysis
Mintec, Inc.
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Auditing Models - Verifying Through Review, Inspection, and Analysis
Mintec, Inc.
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Auditing Models - Verifying Through Review, Inspection, and Analysis
6. Review Reporting
All reserve reports from the original modeling process should be reproducible during the
review. Total ore and waste by cutoffs, by zones, and by classification should match the
original numbers and should be ‘reasonable’ when compared to your understanding of
the deposit.
a. Check in-situ reserves. Does it match a rough hand calculation or quick sectional
calculation in terms of volume and tonnage. Do different estimation methods (IDS,
Polygonal, Kriged) give comparable results for grade and tonnage.
b. Check mineable reserves. Do the in-pit reserves seem reasonable relative to the in-
situ reserves? Does the waste volume and stripping ratio look right?
Check classification (proven, probable, possible) rules. The rules and logic used in
classification of ore are an important part of obtaining a valid model. These rules
should be reviewed and checked. Do the values for all classified material match the
totals for in-situ and/or mineable. Has the probable and possible been reduced to
Mintec, Inc. bulk up the proven reserves? Does the scheme used to do the classification seem
Global reasonable based on distance, number of composites, etc., for this type of deposit?
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Conclusion
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All parts of the auditing process must verify that all the major elements normally associated
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with mine project work are fully addressed. Any discrepancies in either the visual process
Since or statistical reviews must be addressed, explained, and corrected before carrying on with
1970 any work on this model.
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