Multi Mineral Cutoff Grade Optimization With Option To Stockpile

The Cutoff grade optimization is very critical to the open pit production scheduling. In case of single mineral deposits, algorithms have been developed for determining cutoff grade policy that maximizes the net present value (NPV) of yearly cash flows. For deter-mining the cutoff grade policy for projects with two minerals including stockpiles the problem becomes much more complex. The purpose of this paper is to present fundamentals of a generalized cutoff grade optimization algorithm that will maximize the NPV of a project subject to mining, milling, and marketing constraints. Benefits of the methodology developed are demonstrated on three different case studies.