Application of traditional methods of ore-reserve estimations to coal-reserve evaluation, quality studies, and mine planning in many circumstances do not allow the accurate prediction of the quantity and quality of coal at different parts of a deposit. Conventional methods do not produce any information with regard to continuity of the variable of interest and range of influence of the samples to be used in drill spacing during development drilling.
Geostatistical methods of ore-reserve estimation, however, produce information about continuity of the variable of interest, range of influence of the drill holes, and the trend of deposition. A combination of information obtained from variogram(s), and geologic data can assist in determination of the appropriate drill-hole spacing. The estimation variance and geologic data can provide assistance in decision-making with regard to additional drilling required to improve reserve estimation and quality evaluation.
This method is especially helpful if specified sets of standards such as maximum level of sulfur and ash or minimum level of BTU contents need to be met.
