The resource estimation process for the underground Mount Isa Copper Mine has undergone significant change. Block models are now created using a commercial software package as opposed to the in-house software that was previously used. With mineralisation occurring over a strike length of more than 4 km, Mineral Resources for all categories totalled 190 Mt at 2.7 per cent Cu at 31 December 2002. Estimation is by ordinary kriging with two separate models generated to cover the X41 and Enterprise orebodies respectively. The underlying Upper Basement Contact and the silica-dolomite alteration envelope are both used as hard boundaries to constrain the modelling. From a validated block model, grade shells are generated at the appropriate cut-off grade for a given area. The grade shells are depleted for mined voids and subdivided into 30 metre strike length blocks. Application of a SMU criteria and crown and pillar constraints results in failed blocks being culled from the resource inventory. Mineral Resource blocks are further subdivided into resource categories (Measured, Indicated, Inferred) by the Competent Person on the basis of geological confidence, taking account of geological and grade continuity, drillhole spacing and structural complexity (JORC, 1999). A geostatistical confidence' category is incorporated into the block model as an additional tool for the categorisation process. The shapes are assessed in concert with a mining engineer to determine whether a reasonable expectation of mining potential exists and if not they are removed from the resource. The final categorised blocks constitute the Mineral Resource inventory and form the basis for conversion to Ore Reserves. The resultant Mineral Resources and Ore Reserves are reported on an inclusive of' basis.