The Bendigo Goldfield is located in the state of Victoria, Australia, and is one of a number of fields that make up the Central Victorian Goldfield. Since 1993, Bendigo Mining NL has been carrying out an extensive re-evaluation of the goldfield and is currently well advanced in developing an underground mine. The sediment-hosted auriferous quartz reefs are structurally complex and closely associated with anticlinal axes and reverse faulting. The gold within the quartz reefs is characterised by both its coarse nature (100 up to >5000 m) and its erratic distribution; as a result, the Bendigo Goldfield is classed as an extreme nugget effect system. This characteristic ensures that the Bendigo mineralisation is very challenging to sample and evaluate. In this case, diamond drilling is a good measure of structure and geological continuity, but a poor measure of grade and grade distribution. Drilling, combined with on-reef development, bulk sampling and detailed geological studies are required for resource evaluation. For grade control a balance has to be sought between sample representativness, cost, turn around time and practicality. Extreme nugget effect deposits like Bendigo, require the use of bulk samples in order to be representative. However, the cost and turn around time is significant. As a result, a micro-bulk sampling system has been introduced that attempts to overcome these problems by providing a fast, practical method that can define ore from waste. Bulk sampling and on-vein development are still necessary for resource and reserve estimation.