A cut-off grade is used to distinguish an economically viable block of ore from non-economical ones in mining operations. In order to obtain a high Net Present Value (NPV), a strategic and precise determination of cut-off grades (mill feed/marginal, marginal/waste) is required. In recent years, the significant depletion of feed grades and increasing mining operating costs have affected the viability of new and existing mining operations. Hence, the introduction of a pre-concentration system to process ore before sending it the main processing plant has gained increasing attention for its potential improvements in resource exploitation processes, mineral processing, energy consumption and environmental impacts. The primary potential advantage of implementing a pre-concentration system is the improvement of resource utilisation and increased reserves as a result of a reduction in cut-off grade. The objective of this paper is to present a new cut-off grade method, which can be used in the presence of a pre-concentration system for underground metalliferous mining operations. The results of this study illustrate the potential economic benefits of using a pre-concertation system prior to a mineral processing operation as a result of the reduced cut-off grade and increased NPV.