In a typical' gold deposit each tonne of ore will contain tens of millions of very fine gold particles, whereas; at Bendigo the majority of gold in each tonne of ore is present in just five to 15 very coarse gold particles, a distribution more akin to diamond deposits. At Bendigo the minimum sample size required for good assay repeatability is estimated at 4.5 t for each assay. Drill core samples are several orders of magnitude too small to generate representative assays.The drilling data are characterised by a nugget effect approaching 90 per cent, a very skewed distribution and, on average, under-report in situ grade by 50 per cent to 75 per cent._x000D_
Since 2002 Bendigo Mining NL has completed 47 000 m of diamond drilling, 1200 m of on reef development, collected and processed 100 bulk samples (150 t each), 800 mini bulk samples (50 kg each) and processed in excess of 25 000 t of ore through a pilot plant. The results of this work have provided the information required to develop and verify a robust grade estimation procedure._x000D_
No standard geostatistical manipulation of the drilling assay data can generate an accurate grade estimate as the samples and associated assays are not representative of the ore being sampled. The recognition of this fact was critical as a radical transformation of the raw drill assay data was required to develop a workable methodology for grade estimation in such a high nugget environment. The aim of the transformation was to reduce the nugget effect and high variance and so approach a lognormal assay distribution. Ideally the average drill grade would approximate actual in situ grade and the assay distribution would reflect actual grade distribution within the reefs._x000D_
Following the data transformation simple block modeling within the defined resources allows grade estimates to be made that can be used in the estimation of Indicated Resources and hence Probable Reserves. The grade estimates have been checked by extensive bulk sampling and processing of 25 000 t of ore (three per cent of total resource) through a pilot plant with planned full scale mining to provide the ultimate verification.