An Introduction to Cut-Off Grade Estimation

An Introduction to Cut-off Grade Estimation examines one of the most important calculations in the mining industry. Cut-off grades are essential to determining the economic feasibility and mine life of a project. Profitability and socioeconomic impact of mining operations are influenced by the choice of cut-off grades. Cut-off grades play a key role in estimating mineral reserves that can be publicly reported. This new edition is easier to read and of greater practical interest to practitioners. The relationship between optimization of net present value, capacity constraints, and opportunity cost is explained in greater detail. A new section discusses blending strategies, which play a critical role in an increasing number of mining operations. Author Jean-Michel Rendu, an internationally recognized expert in the management, estimation, and public reporting of mineral resources, provides practical insights. As a manager in major mining companies, a consultant, and an educator, Rendu has acquired considerable experience in all aspects of mining engineering, experience that was incorporated into this publication. This is a must-read for mine managers, analysts, geologists, mining engineers, and public policymakers who want to stay on the leading edge of their profession.

Table of Contents:
Introduction General Concepts Breakeven Cut-off Grade Capacity Constraints and Opportunity Costs Geologic Constraints and Opportunity Costs Cut-off Grade and Mine Planning Which Costs Should Be Included in Cut-off Grade Calculations? Blending Strategy

About the Author :
Jean-Michel (J-M) Rendu is an independent consultant supplying services to the international mining industry. J-M retired from Newmont Mining Corporation in 2001 as vice president of resources and mine planning with worldwide responsibility for corporate and mine-site mining engineering activities, and for estimation and reporting of resources and reserves. Before joining Newmont, J-M was an associate consultant with Golder Associates; an assistant professor with the University of Wisconsin-Madison; head of operations research with Anglovaal, Johannesburg, South Africa; and systems analyst with Kennecott Copper Corporation. J-M graduated from École des Mines de Saint-Étienne in 1966 and obtained M.S. and Eng.Sc.D. degrees from Columbia University in the City of New York. He authored more than 50 technical papers on deposit modeling, mine engineering, estimation of resources and reserves, and U.S. and international regulatory requirements for public reporting. He is the author of An Introduction to Geostatistical Methods of Mineral Evaluation, published by the South African Institute of Mining and Metallurgy in 1978 (second edition, 1981) and An Introduction to Cut-off Grade Estimation, published by SME in 2008 (second edition, 2014).

Review :
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 �2014 Ringgold Inc. Portland, OR (protoview.com)