Detailed underground mine design and optimisation studies undertaken by the author over the past few years have clearly demonstrated that additional value can be created by varying the cut-off grade (COG) spatially throughout a deposit as well as over time. This additional value can be particularly significant for marginal operations._x000D_
This paper, by way of worked examples, illustrates the conceptual and practical considerations of applying a differential cut-off policy for an underground mine to both maximise value and manage risks associated with production and metal price volatility. Consideration is given to both the design stage of a new mine and to the strategic and practical application of a differential cut-off policy in an operating mine._x000D_
FORMAL CITATION:Horsley, T P, 2005. Differential cut-off grades, in Proceedings Ninth Underground Operators' Conference 2005, pp 103-110 (The Australasian Institute of Mining and Metallurgy: Melbourne).