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 has more than 24 years of operational, engineering, management, and consulting experience in the mining industry. He specializes in underground mine design and economics, due diligence, and operational improvement.

Gary has worked with a wide range of commodities at near surface and ultra-deep producing mines around the world. This work has included operating cost estimates, operational audits, due diligence reviews, and technical studies from PEAs to Feasibility and projects into the execution phase. His operating experience includes narrow vein gold mining at Giant Mine near Yellowknife, a room and pillar and bulk mining zinc-copper operation at Myra Falls on Vancouver Island, sub-level caving, open stopping and remnant mining at the nickel-copper Sudbury basin with Vale and caving and VCR methods at the DeBeers Kimberley diamond mines in South Africa.

Gary serves actively on a number of boards including local and national CIM and is a regular guest speaker and lecturer at mine conferences and universities.

Principal Mining Engineer
P.Eng, PMP
SRK Sudbury
SRK Worldwide