In underground ore mining of copper ore, lead-zinc ore, tin ore and fluorspare in German Democratic Republic geological situation is characterized by ore deposits of small thickness and great variability of ore grades and mining conditions. For long range mining strategy and short-term planning of production a model was developed fitting to make optimal economic mining decisions. Starting point of the model is a cost function representing all direct costs per unit recoverable metal in concentrate for each stoping unit (ore reserve block). In the costs function the results of regression analysis of ore grade and metal recovery in concentration plant were considered. All stoping units (ore reserve blocks) of a mine were arranged to growing direct costs. The relationships of recoverable metal, ore tonnages and corresponding costs were plotted in a diagram. The data processed by- computer and the graphic representation of the results make possible 1. economic evaluation of stopes and ore reserve blocks, 2. estimation of cut off grade, 3. optimization of works planning.