Cut-Off Grade – The Impact of Getting it Right!

Author(s): 
Gary Poxleitner, Joe Rowland
Date: 
Tuesday, April 30, 2019
First presented: 
CIM
Type: 
Presentation
Category: 
Mining

This paper will first define, at a high level, what a cut-off grade is. It will then delve into the linkage between COG and how it supports, or hinders, attaining your overall corporate objectives.  The importance of fully understanding and defining these objectives should be well understood and communicated before venturing down a cut off grade practice. We will then explore what goes into a cut off grade calculation and the impact that this has on your reserves base, mine plan, cashflow and overall sustainability of your operation. Presented will be a summary of what various cut off grade policies and inclusions are used in the industry (based on a survey of nearly one hundred projects and operations). Finally, it will be understood that the selection of a cut-off grade is essentially a trade-off off study exploring a multitude of scenarios that reflects your own project or operations objectives.

 

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 North America