Many gold deposits were mineralised by fluids and processes that also altered the host rocks. This alteration may often be a useful visual aid that distinguishes barren, low-grade from high-grade regions in a rock mass. Alteration intensity is commonly used in gold deposits as a visual tool, along with face sampling or grade control support, to define oreblocks and guide excavation in underground and open pit mining. However, alteration is not often used at the resource estimation stage. Mineralised lodes are usually defined by geologists using a geo-grade envelope', where a number of constraints are considered, including an (arbitrary) cut-off grade; the natural' grade break between high- and low-grades; and geological features including structural, lithological or alteration continuity. The geo-grade envelope is usually thought to satisfy the requirements of stationarity for grade estimation, and is considered a single domain. This paper examines a modelling technique combining gold grade and alteration, applied to the Wallaby deposit in Western Australia, to imbue a greater level of detail to the grade estimation in a region tested by relatively sparse drilling. This was achieved by utilising the correlation of gold grade and alteration, along with the spatial characteristics of the alteration, when estimating grades within a number of lodes. The alteration-driven estimation was utilised in conjunction with an unfolding approach, and the use of probability estimates, to overcome geometric data constraints. This technique allows greater control and most likely provides a more reliable estimate of the mineable resources than a global grade cut-off when visual control is to be a major vector in grade control.