The highest grades of the Porgera gold deposit, Papua New Guinea, are contained in Zone 7 due to the presence of the Roamane fault, which acted as channelway of the gold-bearing fluids. Prior to the development and underground mining of this fault-controlled high-grade zone it was critical to provide grade estimates of relatively small mining units, and of the proportion of mining units above cutoff. To be applicable to Zone 7 of Porgera a grade estimation method should account for the following: 1. the highly skewed and apparently lognormal distribution of the grades, 2. the rapid drop off of the local mean grade and the variance as the distance to the Roamane fault increases, 3. the presence of high grade pockets in the footwall, away from that fault, and 4. the existence of variograms for the logs with sills parallel to the fault and without sills perpendicular to it.