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

1.9 E NVIRONMENTAL S TUDIES, P ERMITTING AND S OCIAL OR
C OMMUNITY I MPACT
1.9.1 ENVIRONMENTAL CONSIDERATIONS
Environmental permits and registrations that may be required for the Project are
summarized in Section 20.0.
Environmental assessments (EAs) in Yukon are administered by the Yukon
Environmental and Socio-economic Assessment Board (YESAB), as governed by
the Yukon Environmental and Socio-economic Assessment Act (YESAA). The EA
process in Yukon is a single assessment process that applies throughout Yukon, to
all projects, and to the federal, territorial, and First Nations governments. Quartz
mining projects that are conducted anywhere other than on an Indian Reserve, are
subject to an EA. The Project will be subject to an EA under the YESAA.
1.9.2 SOCIAL CONSIDERATIONS
Several First Nations are identified as having interests encompassing the Property
and access road. The implementation of an effective community and Aboriginal
engagement program is fundamental to the successful environmental permitting of
mining projects. Consultations with First Nations whose land is part of the Project (or
who might be significantly affected environmentally or socioeconomically), must be
conducted before submitting a proposal for an EA in Yukon. This is a legal obligation
on the part of the industry under the YESAA.
1.10 C APITAL AND O PERATING C OSTS
1.10.1 CAPITAL COST
The total capital cost required for the Project, including a 25% contingency is
estimated at US$2.0 billion and is distributed based on the following costs:
• pre-production costs – US$0.9 billion
• sustaining capital for the LOM – US$1.1 billion.
The capital costs are itemized as pre-production and sustaining as summarized in
Table 1.6.
Prophecy Platinum Corp. 1-10 1193460500-REP-R0001-02
Wellgreen Project Preliminary Economic Assessment,
Yukon, Canada