Efficiency of regression techniques for ore valuation at Kolar Gold Fields, India

The Kolar Gold Fields are some of the best known gold deposits in India. An example of ore valuation utilizing 49 ore blocks of the Oriental lode of the West Reefs, explored and developed in the Nundydroog mines, is given. In this reef system, there are large ore reserves of sulfidebearing quartz reefs, and the gold distribution is erratic both along strike and downdip. Ore valuation at present is based on the arithmetic mean of samples taken at peripheral positions of the blocks. Samples taken from internal portions of the blocks give a totally different picture of the value. To correct this discrepancy, normal regression and lognormal regression of internal block and total block values, over peripheral block values have been used to evaluate the deposits. The valuation efficiency criterion shows the logarithmic variance for distribution of ratios of unregressed and regressed block values with the corresponding arithmetic mean of internal stope values as observed inside the blocks. The studies have shown that the logarithmic variance is minimum if the logarithmic regression is used, thereby indicating maximum efficiency. Further, the undervaluation and overvaluation of low- and high-grade blocks is less for the logarithmic example. With help of the logarithmic regression equation an effective pay limit of 177.8 in.-dwt has been found for selective mining, for peripheral block values corresponding to the official pay limit of 240 in.-dwt.NGRI contribution number 71-281.