Wellgreen Project Preliminary Economic Assessment ... - OTCIQ.com

equipment costs based on surveys of operating companies and vendors.
Allowances were made for process pumping, reagent preparation, and an
assay/process laboratory. The total process capital cost including
installation/construction is US$174.3 million.
21.2.6 INITIAL CAPITAL COSTS
The initial capital costs consist of four main parts: direct costs, indirect costs,
contingency and owner’s costs.
The initial direct and indirect capital costs are summarized in Table 21.3.
ESTIMATE STRUCTURE
Any costs incurred with work that is scheduled to start after Year 1 are included in
the sustaining capital costs and are not in the initial capital cost estimate.
PRICING
This PEA study estimate was prepared with a base date of Q1 2012 and has not
included any escalation beyond this date.
CONSTRUCTION LABOUR RATES AND PRODUCTIVITY
A blended labour rate of Cdn$108/h is used throughout. Tetra Tech has assumed a
“three weeks in, one week out” work schedule.
The labour rates include the following items:
• vacation and statutory holiday pay
• fringe benefits and payroll burdens
• overtime and shift premiums
• small tools
• consumables
• personal protection equipment
• contractor’s overhead and profit.
In addition, indirect costs which are calculated separately, are included in the
following categories:
• all additional construction equipment, cranes, and incidental equipment
rentals; contractors and construction costs are included in the individual line
items of estimate
Prophecy Platinum Corp. 21-6 1193460500-REP-R0001-02
Wellgreen Project Preliminary Economic Assessment,
Yukon, Canada