What could trigger the need for a new cut-off grade?

The need for a new cut-off grade is often triggered by shifts in market prices for minerals. The cut-off grade is the minimum grade at which a material can be economically mined, and it is directly influenced by the market prices for the minerals being extracted. When market prices increase, even lower-grade ores may become profitable to mine, necessitating a revision of the cut-off grade to include these materials in the mining plan. Conversely, if market prices drop, the cut-off grade may need to be raised to ensure that only higher-grade ores are extracted, thus maintaining economic viability.

While changes in environmental legislation can impose new constraints and influence operational decisions, they do not directly affect the cut-off grade in the same immediate way that fluctuations in market prices do. Increased mining productivity can lead to more efficient operations but does not inherently change the economic thresholds tied to market prices. Similarly, discovering new mineral resources may enhance the potential of a mine but does not automatically trigger a change in cut-off grade unless it affects market dynamics or operational costs.