By Jean-Michel Rendu
An advent to Cut-off Grade Estimation examines the most very important calculations within the mining undefined. Cut-off grades are necessary to picking out the commercial feasibility and mine lifetime of a undertaking. elevated cut-off grades can lessen political dangers through making sure larger monetary returns over a shorter time period. Conversely, reduce cut-off grades may well raise venture lifestyles with longer fiscal advantages to shareowners, staff, and native groups. Cut-off grades additionally effect said reserves, that are heavily monitored via inventory exchanges and regulatory organizations.
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Additional resources for An Introduction to Cut-off Grade Estimation
CALCULATION AND REPORTING OF METAL EQUIVALENT Before computers became widely used, it was common practice to refer to polymetallic deposits in terms of metal equivalent. If a metric ton of material contains two metals, copper and molybdenum, with average grades of x1 and x2, respectively, the corresponding copper equivalent is defined as the copper grade x1e that one metric ton must contain to produce the same revenue, assuming no molybdenum. The revenue generated by mining and processing one metric ton of material with copper grade x1 and molybdenum grade x2 is NSR(x1, x2).
Let x1 and x2 be the copper and gold grades, respectively. The processing plant consists of crushing, grinding, and flotation circuits. A copper concentrate is produced, which is sold to a smelter. The flotation plant recovery is r1 for copper and r2 for gold. Mining, processing, and overhead costs associated with one metric ton of material sent to the flotation plant are Mo, Po, and Oo, respectively. The corresponding costs per metric ton of waste are Mw, Pw, and Ow. According to the smelter contract, the value received for sale of the concentrate is p1 = 95% of the value of the copper contained in the concentrate after a deduction, d1, and p2 = 99% of the gold contained.
Figure 3-5 shows the profit that will be made depending on whether material of grade x is wasted (Uwaste(x)), sent to the leach pad (U1(x)), or processed in the mill (U2(x)). It also illustrates how the cut-off grade can be determined by graphical method. The relationship between the utility of leaching or milling material and the average grade of this material is no longer linear. The optimal process for material of grade x is that for which the utility is highest. The cut-off grades are the grades at which the curves intersect.
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