Reconciliation principles for the mining industry

Reconciliation involves the collection of tonnage, grade (quality) and contained metal (product) data from disparate and hopefully independent sources. Examples are exploration data, production sampling data from blast holes or draw points, and process plant data. These data may be compared by means of ratios (factors). The F1 factor usually relates short term (ore control) model tonnages, grades and metal content to ore reserves depleted. The F2 factor usually relates received at mill (measured by the mill) tonnages, grades and metal content to delivered to mill production tonnages, grade and metal content. The F3 factor is F1×F2 and enables a comparison of a mine's (measured by mine) ability to recover the tonnage, grade and metal content estimated in ore reserves. The F1 factor measures the accuracy of orebody knowledge in the ore reserves to the demarcation of ore and waste by ore control (short term model). The F1 factor may be used to check and calibrate the selectivity of mineral resource models and/or planned dilution assumed in transfer from mineral resources to ore reserves. The F2 factor enables a check on unplanned dilution entering the ore stream between ore control and the mill. By using the factors it is possible to calculate a monetary value on improvements in the accuracy of orebody knowledge, selectivity and the effects of dilution and ore loss. Reconciliation should be an implicit part of the mining process, and reconciliation targets should be a key performance indicator for well run mines.