Most geostatistical techniques applied to the estimation of ore reserves assume relatively unifonn grade and thickness within an ore deposit environment. In shear-hosted mineralisation this rarely occurs. The distribution of mineralisation is controlled by the kinematic and geometric variation within the shear zone. Although the kinematic variation is dependent primarily on the temperature (and consequently the depth) of formation of the deposit, the geometric variation appears to be relatively insensitive to this parameter. Shoot mineralisation is controlled either by the intersection of secoodary shear planes (brittle deformation) or the stretching lineation of the mylonitic fabric (ductile defonnation).Once the shear geometry is clearly identified, it is critical to review the distribution of grade and thickness of mineralisation. The practice of cutting high-grade intersections without reference to the shear model leads to underestimation of the amount of gold in the deposit. High-grade shoots may occur as pipe-shaped bodies within the system; their identification is essential for both resource estimation and mine planning purposes.