Cut-off grade optimisation to maximise the net present value using whittle 4X Online publication date: Wed, 26-Oct-2016
by J. Githiria
International Journal of Mining and Mineral Engineering (IJMME), Vol. 7, No. 4, 2016
Abstract: Cut-off grade optimisation is necessary for operational decision making in the many different circumstances affecting mine operations. The cut-off grades are supposed to reflect particular circumstances of specific mines in order to achieve the maximum economic return over the life of the mine. The relationship between cut-off grade and NPV provides a means by which cut-off grades are optimised. Using Lane's approach, the economics involved in each stage are identified independently and integrated to provide an optimum cut-off grade. A block model from a hypothetical gold mine is used to illustrate how Whittle 4X applies Lane's approach to generate an optimal cut-off grade policy for the mine. The cut-off grade in this project slightly changes along the mine life. Higher grade ore is mined in the early years (years 2 and 4) while the lower grade ore is mined later.
Online publication date: Wed, 26-Oct-2016
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Mining and Mineral Engineering (IJMME):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email email@example.com