In this episode of Fresh Thinking, Senior Mining Consultant Pedro Ladeira sits down with Snowden Optiro General Manager Tarrant Elkington to explore the real value behind variable cutoff grades in mine planning. From NPV optimisation to stockpiling strategies and the practical challenges of implementation, this conversation is packed with insights that can help elevate your project’s performance.
Whether you're planning an open pit or underground mine, this episode unpacks how dynamic cutoff strategies can unlock significant long-term value - sometimes increasing NPV by 20% or more.
Key Moments:
0:34 – What is a marginal vs. optimised cutoff grade?
1:57 – Why higher cutoffs can increase NPV
3:59 – Open pit vs. underground implications
6:02 – The role of opportunity cost and processing constraints
8:46 – Costs and downsides of elevating cutoff grades
12:14 – Life-of-mine length and its influence on optimisation
16:03 – Stockpiling as a strategic asset
19:04 – Real-world impact: 20% NPV uplift
20:26 – Operational challenges and practical implementation
Takeaway: Cutoff grade optimisation isn’t just a technical tweak - it’s a powerful lever for mine value that deserves more attention in strategic planning.
If you would like to contact Tarrant and Pedro: contact(at)snowdenoptiro.com
Don’t forget to SUBSCRIBE for more straight-talking episodes from the world of mining and geology.
Fresh Thinking by Snowden Optiro is available on YouTube, Spotify, Apple Podcasts, Amazon Music, Libsyn and all your favourite platforms.
Snowden Optiro is a resources consulting and advisory group that provides independent advice, consulting and training to mining and exploration companies, their advisors and investors.
We help mine developers to advance their projects, mining companies to improve their operations and their professionals, and investors to de-risk their investments by the provision of quality advice, training and software in the field of Mineral Resources and Mineral/Ore Reserves.
Find out more at: https://snowdenoptiro.com/ Professional Development Training: https://snowdenoptiro.com/professional-development/
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