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Cut-Off Strategy

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Do you have a Cut-off Strategy?

Are you aware that a strategic optimisation of the cut-off and resource exploitation, commonly adds between 5 and 20% to a projects NPV. It directly improves the cash flow in the immediate short term. This is not magic, it is exactly as predicted in Ken Lane's Book The Economic Definition of Ore. At imageo we are the most experienced users of Whittle Technology's Opti-cut product. However now the power of cut-off and stockpile optimization is available under the new easy to use Analyser it is time everyone used these techniques routinely

It is time to get the money in your pocket rather than leaving it stagnate in the ground.

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To realize this benefit you need to undertake a review of your cut-off and grade control procedures and take a more strategic look at your Life of Mine Schedule. Imageo can help establish this review process and guide you through the implementation of a Cut-off Policy.

A Simple Case Study (in four graphs)

This is the existing mine design

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This graph investigated capacities for best resource exploitation

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The schedule using milawa in balanced mode using the above throughputs.

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This is the resulting schedule after cut-off optimization

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Summary of Project NPV

Existing Schedule = $344m
After Milawa => $353m (a 3% Improvement)
After Opti-cut => $368m (a 7% Improvement)

phone (+61-3) 9561 4936 * fax (+61-3) 9562 5068 * email info@imageo.com.au