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

22.2 P RINCIPAL A SSUMPTIONS
For the purpose of this Project’s financial analysis, Tetra Tech applied the following
study results and assumptions:
• All costs, revenues, and financial evaluation are calculated and presented in
US dollars.
• The Project LOM will be 37 years.
• A detailed mine production schedule was included in the financial model.
• An average of 24,000 t of nickel will be produced annually.
• The processing recoveries used were 67.60% nickel, 87.80% copper,
64.40% cobalt, 58.90% gold, 46.00% platinum, and 72.90% palladium.
• The Project’s average annual throughput will be 39,000,000 t combined
waste and mineralized material.
• The initial capital cost for the Project is estimated at US$863 million.
• The mine sustaining capital cost for the project is estimated at
US$1,122 million.
• The TMF sustaining capital estimates are included in the financial model.
• The end-of-project salvage value was not included.
• The average operating cost was estimated to be US$29.74/t milled.
• The smelting recoveries used were 90.00% nickel, 98.00% copper, 90.00%
cobalt, 96.00% gold, 96.00% platinum, and 96.00% palladium.
• Smelting, refining and transportation charges were assumed to be 25% of
the gross metal revenues.
• No royalties or product insurance costs were included.
• A discount rate of 8% was applied.
22.3 P RE- T AX M ODEL
The mine production schedule has been incorporated into the 100% equity pre-tax
financial model to develop annual recovered metal production from the relationship
between tonnage milled, head grades and recoveries.
The LOM mineralized material tonnages, grades and metal production are indicated
in Table 22.3.
Prophecy Platinum Corp. 22-2 1193460500-REP-R0001-02
Wellgreen Project Preliminary Economic Assessment,
Yukon, Canada