Our industry, mining & exploration, is undergoing substantial structural change. Unfortunately a lot of this change is now being driven by old economy thinking and much of the new economy efficiencies, tools and knowledge is deserting the industry (too many with such expertise have been shown the door). Imageo would like this to be one place were common sense can survive and key knowledge kept alive

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What is the right cut-off?

Now that metal prices are high

Using a simple break even calculation you may choose to lower the cut-off, on the basis that you can expand the resource base. Sounds logical, BUT what if you only have a capacity limit on what can be crushed and processed into your mill. Lower the cut-off grade with also lower the output of metal!

 Is this what is what is best to do when the prices is high?

 Well no it is not it would be better to be able to produce more metal, and realize greater profit on each unit of metal. Ok that means putting UP the cut-off!  

 It is the easiest profit any mining company can make. Yet there are dangers with this approach if you go to far, this “high grading” can rapidly deplete you resource and may even lead to a premature mine closure. Ken Lane recognized these issues long ago and his book “The Economic Definition of Ore” shows that there is an optimum cut-off strategy. This has inspired the development of sound methods and software to help determine such a cut-off strategy,

An optimized cut-off strategy such seek to maximize your resource's NPV.

The "Hints" and "Know Hows" below are save

Four-X User Hints

Here are a few of Norm's most popular Hints on the Four-X user discussion group

• Disk Diet 
• Setting & Using Units  
• Expressing Yourself
• Revenue Factors
• Over constraining Designs
• Wizardry