Most orebodies have one or more boundaries which are gradational, where the decision to stop mining is based on an economic cut-off. To maximise profit, this cut-off grade must be chosen correctly. It is necessary to review cut-off grades regularly, as the optimum cut-off grade changes with time, and major changes are hard to implement in a working mine without disruption to production schedules.
Whenever a cut-off grade is used, there will be errors in its application caused by errors in the estimation of block grade. These can be minimised by stringent quality control in sampling and by the use of kriging, which attempts to minimise the absolute errors in grade estimation. The kriging method used should produce the most accurate estimates of marginal grade blocks - this will not necessarily be the technique that gives the best overall prediction of head grades.