ABSTRACT: In this study, the effects of production capacity limits are investigated in the cut off grade decisions, Firstly, the relationships among the cut off grade, avarage grade and tonnage are analyzed in case of both normal and lognormal distributions for reserve-grades distribution, Second, the effects to the cut off grade decisions that are limited in feeding to plant, output from plait and mine depletion capacities are analyzed. Finally, applications of this research are done by using the data of production plants and drill-holes of Etibank-Gümüşkoy Silver Mine Company,