Question

What is meant by the ‘grade’ of a resource and what are the economic implications if grade decreases in quantity of mineral extracted?

Answer 1

Ans.
Grade of a resource refers to a concentration of few of desired materials which it contains. The value of the minerals or metals which an ore or the resource contains should be weighed against the cost of extraction of that resource, for determining whether it belongs to the sufficiently high grade for mining or not.
Ensuring the future supply of the resources is a key element in science, politics and economics, as the available amount of the resources is limited. The usage of grades of resources as an indicator may lead to a conclusion for the safeguard of the objects. The extraction strategy which includes the optimum mine life and cutoff grade includes the full time availability of the resources.