Cutoff Grade Economics - Introduction

The theory, definition and practical application of cutoff grades have evolved over a long period. This evolution is reflected in the continuing flow of papers on this and other related matters though the rate has varied as new ideas and theories have become understood and applied in practice. Papers by Lane(l) in 1964 and Taylor(-2)- in 1972 provided landmarks in the understanding and general communication of cutoff grade theory and its application. The reasons for the continuing interest in cutoff grades are obvious. Too high a cutoff can reduce the mineral recovered and possibly the life of a deposit. Too low a cutoff would reduce the average grade (and hence profit) below acceptable levels. This paper provides a brief overview of existing cutoff grade theory and some particular aspects of its application.