Cut-Off Grade Methodology and Best Practices

Gary Poxleitner
Wednesday, May 9, 2018
First presented: 


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 than common cut off approaches to determine the preferred cut off grade for their mines.

Animated Presentation:



Feature Author

Gary M. Poxleitner
Gary Poxleitner, PEng, PMP, Principal Consultant and Practice Leader at SRK, is based in the Sudbury Office. He has over 27 years of operational, engineering, management, and consulting experience in the mining industry with a personal focus on underground hard-rock mine design, innovation and mine cost, due diligence, COG analysis and operational improvement. Following graduation from Laurentian University in 1991, Mr. Poxleitner worked in the narrow-vein gold mining region of Yellowknife at Giant Mine; Westleton Diamond Mine in South Africa. zinc-copper operation at Myra Falls on Vancouver Island; various Vale base metal mines in Sudbury, underground project management team at the Voisey’s Bay Mine in Labrador all within a wide variety of mining methods.
Since joining SRK in 2011 Gary has worked on over a hundred projects in various commodities in Canada and internationally. Gary currently serves actively as the Underground Mining Society Chair, National CIM Council, Past Vice President Camiro past CIM Membership Chair at the CIM Sudbury Branch and sits on several mining organizing committees and is a regular speaker and lecturer at global conferences and universities.
Principal Consultant and Practice Leader
P.Eng, PMP
SRK Sudbury
SRK Worldwide