Marginal Analysis-Its Application in Determining Cut-off Grade

Over the years, the pure theorist in economic analysis has accumulated a formidable array of facts in bringing his subject matter under control. Business managers and mining engineers are aware of the theorist's weapons, but the question of applying them to the mastery of practical problems seems hardly feasible, especially in view of the almost innumerable variables plaguing the everyday scene in the mining enterprise. One such sophisticated tool of long-standing in the theorist's arsenal is marginal analysis. Equally long-standing for the operating company and valuation engineer is the problem of defining the cut-off grade the point below which a mineral re- source ceases to be economically amenable to extraction. In other words, what part of a mineralized body of rock is ore and what is waste?