Cut Off Grade Methodology and Best Practices


Mr Gary MichaelPoxleitner

Mining Operations strategically look at maximizing profitability and cash flow to support a productive and safe mine, but often spend less time and effort on determining the preferred cut off grade that will form the basis of a sustainable mine. The selection of a cut off grade should consider the overall strategic corporate objectives, which may include maximizing NPV, reserve basis, upfront Cashflow, and sustainability of cost fluctuations. It should also consider blending geography and the spatial variation of the grade distribution in the deposit. This paper is based on several actual operating and green field mines that have embraced a different path then common cut off approaches to determine the preferred cut off grade for their mines.