An Introduction to Cut-Off Grade Estimation

Rendu, a mining companies manager, consultant, and educator who specializes in the management, estimation, and public reporting of mineral resources, describes the fundamental principles of cut-off grade estimation and how to determine which cut-off grade should be used to separate material in mines that should be processed from material that should be sent to the waste dump. He explains general concepts such as utility function, breakeven cut-off grade, and opportunity cost; the estimation of breakeven cut off grades, with examples of how to separate ore from waste, choose between different processes, analyze polymetallic deposits, and develop stockpiling strategies; opportunity cost and constraints imposed by the geology of the deposit; the costs that should be included in cut-off grade calculations; situations where there is a need to stockpile and blend material to satisfy technical and marketing requirements; and new methods to optimize blending depending on the objective. In this edition, the relationship between optimization of net present value, capacity constraints, and opportunity costs is detailed more, and it has a new section on blending strategies applicable to coal and iron ore mines, as well as in metal mines. Chapters have been reorganized. Annotation c2014 Ringgold, Inc., Portland, OR (protoview.com)