  The truncated Lanczos method using a variational scheme based on Hilbert
space reduction as well as a local basis change is re-examined. The energy is
extrapolated as a power law function of the Hamiltonian variance. This
systematic extrapolation procedure is tested quantitatively on the two-leg t-J
ladder with two holes. For this purpose, we have carried out calculations of
the spin gap and of the pair dispersion up to size 2x15.
