Cut-off Grade

The lowest grade worth processing — the dial that decides what counts as ore and what counts as waste.

Definition

The minimum grade of mineralization that can be economically mined and processed. Material below the cut-off grade is considered waste, while material above it is classified as ore. Cut-off grades depend on mining costs, processing costs, metal prices, and metallurgical recovery rates.

Why it matters

Cut-off grade is the single most powerful lever in a resource statement. Lower it and tonnage rises while average grade falls; raise it and the opposite. Two companies reporting the same deposit at different cut-offs are not comparable.

In practice

Cut-off is set from metal price, recovery and processing cost, so it moves with the market. Resource statements should disclose it; if a release quotes ounces without a cut-off, the number is not interpretable.

Where people go wrong

Comparing grades across companies without checking cut-offs. It is the most common apples-to-oranges error in junior mining.

See also

  • Grade (g/t) The concentration of a valuable mineral within ore, typically expressed in grams per tonne (g/t) for precious
  • Mineral Resource A concentration of material of economic interest in or on the Earth's crust in such form, grade, and quantity
  • Dilution The unavoidable contamination of ore with waste rock during mining, which lowers the average grade of material
  • Metallurgical Recovery The percentage of valuable metal that can be extracted from ore during processing. For example, 90% gold recov

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