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

Table 1.9 LOM Operating Cost Summary
Item
Cost
(US$ million)
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 total operating cost for the Project LOM is calculated based on the following area
costs:
• The open pit mining LOM average unit cost was determined to be US$2.52/t
mined.
• The site services LOM average unit cost was estimated to be US$0.30/t
mined.
• The general and administrative (G&A) LOM average unit cost was estimated
to be US$0.65/t mined.
• The mill process LOM average unit cost was estimated to be US$4.85/t
mined.
1.11 E CONOMIC A NALYSIS
An economic evaluation of the Project was prepared by Tetra Tech based on a pretax
financial model. The financial results and inputs for the Project are summarized
in Table 1.10.
Table 1.10 Summary of Pre-tax Financial Results and Inputs
Item Unit Value
NPV (8%) US$ million 2,396
IRR % 32
Payback Years 4.88
Gross Revenue US$ million 33,240
Smelting & Refining Cost US$ million 8,310
Net Revenue US$ million 24,930
Operating Cost US$ million 12,056
Operating Margin US$ million 12,874
Capital Cost US$ million 1,985
Closure Cost US$ million 61
Pre-tax Cash Flow US$ million 10,828
Prophecy Platinum Corp. 1-12 1193460500-REP-R0001-02
Wellgreen Project Preliminary Economic Assessment,
Yukon, Canada