The Rio Tinto Iron Ore group currently estimates grade attributes for mineral resources using ordinary kriging (OK). OK produces a smoothed globally unbiased estimate, but does not capture local variability, which can have significant impact on mine planning and scheduling. The dimensions and the multivariate nature of iron ore deposits make point simulations of whole deposits impractical. With a direct block simulation method the size and speed limitations of point simulations can potentially be overcome, resulting in a viable method for capturing local variability and for providing risk measures into the mine plan and schedules. Some iron ore deposits are highly folded (post mineralisation) and require preprocessing using an unfolding algorithm to properly define the continuity parameters and directions of anisotropy before simulation can proceed. Block co-simulation proceeds in unfolded space and since mine planning require a block-model with regular block-sizes; a regular block-model is unfolded first. This paper discusses a block co-simulation approach that can be used to simulate the irregular blocks resulting from the unfolding process. A section of an iron ore deposit is used for testing the block co-simulation algorithm and the simulation results are compared against the Isatis direct block simulation method. Available blasthole data is also used to validate the behaviour of the block co-simulation algorithm.