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

21.3 O PERATING C OSTS
21.3.1 GENERAL
21.3.2 MINING
Mine operating costs were developed by Tetra Tech on a first principle basis using
Tetra Tech’s in-house cost database, CostMine 2010 Mine Cost Guide and InfoMine
2009 Mine Salaries.
Operating costs, where required, were escalated to reflect Q1 2012 dollars.
The Project LOM mine operating costs have been categorized and summarized in
Table 21.9. The costs are expressed in total US dollars, unit per tonne mined and
unit per tonne milled.
Table 21.9 LOM Operating Cost Summary (US$ million)
Cost
(US$)
Cost
(%)
Unit Cost
US$/t mined
Unit Cost
US$/t milled
Open Pit Mining 3,656.5 30 2.52 9.02
Site Services 436.9 4 0.30 1.08
G&A 931.6 8 0.65 2.29
Processing 7,030.8 58 4.85 17.35
Total 12,055.8 100 8.32 29.74
The mining operating cost is estimated at US$3.66 billion which equates to
US$2.52/t of material mined or US$9.02/t of material milled.
Manpower salaries, diesel price, and explosive price were obtained from Tetra
Tech’s internal cost database. Table 21.10 and Table 21.11 present a summary of
the mining operating costs, grouped by waste mining costs and material mining
costs, for a nominal mill throughput 32,000 t/d, with an average strip ratio of 2.57:1
(tonnes waste/tonnes mineralized material) during the 37-year LOM.
Prophecy Platinum Corp. 21-11 1193460500-REP-R0001-02
Wellgreen Project Preliminary Economic Assessment,
Yukon, Canada