The Cut-off Grade is one of the most critical factors determining whether an ore deposit is economically viable for mining. It represents the minimum metal concentration required to make extraction profitable. Several factors influence this threshold, including: 🔸 Metal Market Price: The higher the metal price, the more economically viable it becomes to mine lower-grade ore. Conversely, if prices drop, certain ore portions may become uneconomical to extract. 🔸 Extraction and Processing Costs: These include drilling, blasting, transportation, grinding, and mineral processing expenses. The higher these costs, the higher the Cut-off Grade, as a higher concentration is needed to cover expenses and generate profit. 🔸 Transportation and Storage Costs: If a mine is located in a remote area or requires costly transportation, the minimum acceptable ore grade may increase. 🔸 Available Technology: Advances in technology can reduce extraction and processing costs, allowing for a lower Cut-off Grade and making previously uneconomical ore deposits viable. 🔸 Environmental and Regulatory Factors: Government regulations and environmental restrictions can impact overall mining costs, influencing the minimum ore grade required for profitability. 🔸 Geological and Engineering Factors: These include ore composition, impurity levels, depth, and extraction difficulty, all of which affect mining feasibility and efficiency. 🔹 Key Takeaway: The Cut-off Grade is not a fixed value—it fluctuates based on economic conditions, technological advancements, and operational costs. Understanding these factors helps mining companies make informed decisions about resource extraction.