Abstract
The decision process in mineral exploration and mine valuation is analysed. Statistical decision theory is a powerful tool which can be used to quantify the value of any exploration decision, A short review of this theory is given emphasizing the various applications of subjective and objective probabilities, and the difference between Bayesian and classical approaches to probability assessment. Indications are given on how the concepts in this theory can be progressively introduced in an exploration company to improve any existing decision process.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Agterberg, F.P. (1971) A probability index for detecting favourable geological environments, Decision Making in the Mineral Industry, Canadian Inst. Min, and Metallo, Special Vol. 12, 82–91.
Alais, M. (1957) Methods of appraising economic prospects of mining exploration over large territories, Management Science, 3, 4, July 1957, 285–367.
Cooper, D.O., Davidson, L.B., and Reim, K.M. (1973) Simplified financial and risk analysis for minerals exploration, Eleventh International Symposium on Computer Applications in the Minerals Industry, University of Arizona, J.R, Sturgul ed., B1-B14.
Davis, D.R., Kisiel, C.C. and Duckstein, L. (1973) Bayesian methods for decision — making in mineral exploration and exploitation, Eleventh International Symposium on Computer Applications in the Minerals Industry, Unversity of Arizona, J.R. Sturgul ed., B55-B67.
De Geoffroy, J. and Wignall, T.K. (1970) Application of statistical decision techniques to the selection of prospecting areas and drilling targets in regional exploration, Canadian Min. and Metall. Bulletin, August 1970, 893-899.
Fuda, G.F. (1971) The role of decision-making techniques in oil and gas exploitation and evaluation, Decision Making in the Mineral Industry, Canadian Inst. Min. and Metall., Special Vol. 12, 130–138.
Harbaugh, J.W. (1973) The Kansas oil exploration (KOX) decision system, Eleventh International Symposium on Computer Applications in the Minerals Industry, University of Arizona, J.R. Sturgul ed., B15-B54.
Harris, D.P. (1965) Multivariate statistical analysis — a decision tool for mineral exploration, Short Course and Symposium on Computers and Computer Applications in Mining and Exploration, University of Arizona, J.C. Dotson and W.C. Peters ed., C1-C35.
Harris, D.P. and Brock, T.N. (1973) A conceptual Bayesian geostatistical model for metal endowment: a model that accepts varying levels of geologic information with a case study. Eleventh International Symposium on Computer Applications in the Minerals Industry, University of Arizona, J.R. Sturgul ed., B113-B180.
Harris, D.P., Freyman, A.J. and Barry, G.S. (1971) A mineral resource appraisal of the Canadian northwest using subjective probabilities and geological opinion, Decision Making in the Mineral Industry, Canadian Inst. Min. and Metall., Spec. Vol. 12, 100–116.
King, K.R. (1974) Petroleum exploration and Bayesian decision theory, Twelfth International Symposium on the Applications of Computers and Mathematics in the Minerals Industry, Colorado School of Mines, T.B. Johnson and D.W. Gentry ed., D77-D117.
Krige, D.G. (1961) Developments in the valuation of gold mining properties from borehole results, Seventh Commonwealth Min. and Metall. Congress, Johannesburg, April 1961, 20.
Matheron, G. and Formery, P. (1963) Recherche d’ optimum dans la reconnaissance et la mise en exploitation des gisements miniers, Annale des Mines, Mai 1963, 23-42, June 1963, 2-30.
Raiffa, H. (1968) Decision analysis — introductory lectures on choices under uncertainty, Addison — Wesley, U.S.A., 309.
Raiffa, H. and Schlaiffer, R. (1961) Applied statistical decision theory, Harvard University, U.S.A., 356.
Rendu, J.M. (1971-a) Some applications of geostatistics to decision-making in exploration, Decision Making in the Mineral Industry, Canadian Inst. of Min. and Metall., Spec. Vol. 12, 175–184.
Rendu, J.M. (1971-b) Some applications of statistics to decision making in mineral exploration, unpublished Eng. Sc. D. thesis, Columbia University, New York, 273.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1976 D. Reidel Publishing Company, Dordrecht—Holland
About this paper
Cite this paper
Rendu, J.M. (1976). Bayesian Decision Theory Applied to Mineral Exploration and Mine Valuation. In: Guarascio, M., David, M., Huijbregts, C. (eds) Advanced Geostatistics in the Mining Industry. NATO Advanced Study Institutes Series, vol 24. Springer, Dordrecht. https://doi.org/10.1007/978-94-010-1470-0_28
Download citation
DOI: https://doi.org/10.1007/978-94-010-1470-0_28
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-010-1472-4
Online ISBN: 978-94-010-1470-0
eBook Packages: Springer Book Archive