This paper presents a comprehensive study of the stability conditions of a rock mass surrounding a tunnel, using numerical modelling analysis of displacements induced by the tunnel construction. The case study focuses on the Boukhadra iron ore mine in Algeria. This research employs empirical equations from literature based on geomechanical classifications to provide the most appropriate geotechnical input data for simulation. In addition to those equations, a novel correlation equation relating the rock mass ratio (RMR) and the rock quality index (Q) was developed. This equation gives a high regression coefficient, revealing a strong correlation (R2) of 0.878. It gives a better estimation of the rock mass characteristics: Young’s moduli (E), Poisson’s ratio (υ), cohesion (C), and friction angle (φ), compared to the existing literature-based correlation equations. The estimated parameters were used to pass from a discontinuous to a continuous equivalent medium, making the numerical modelling easier with the finite element method. Compared with intact rock and direct equations, the numerical simulation results based on the new equation fit well with the in-situ observations and provide a more reliable comprehension of rock mass behaviour. The new equation proposed in this paper provides a substantial evaluation of the rock mass parameters needed in the design process of underground structures once used with respect to their acceptable ranges.