They are targeting cash cost < $500 an ounce, which will factor into the grade cut-off. An open pit example referred to on the Kodiak website was Brett Resources Hammond Reef open pit project( which was bought out). They have a PEA which reports an operating cost of $ 452/oz and a grade cut-off of 0.3 g/t.

http://www.brettresources.com/i/pdf/2009-12-10_HR_NI43-101.pdf