Selection Of A Cutoff Grade Strategy For An Open Pit Mine

The cutoff grade applied to a disseminated orebody mined by open pit affects both the waste ratio, hence the cost of producing ore, and the ore grade, hence the quantity of metal recovered. As such it has a significant impact not only on the annual profit or loss, but also on the life of a mining property. Cutoff Grade Strategies Some commonly used objectives in calculating cutoff grades are as follows: Minimize Unit Cost of Product (1) This is found by adding all costs associated with each possible cutoff such as mining, processing, and marketing. This is divided by the quantity of marketable product obtained at each cutoff grade, then finding the minimum. Because the market value of the product does not enter the calculation it has no effect on this strategy: the same cutoff is selected in good times and bad.