Pulacayo Project Feasibility Study - Apogee Silver

Pulacayo 1 000 t/d Phase I Feasibility Study - NI 43-101 Technical Report
090644-3-0000-20-IFI-100
Sulphide NSR Underground Cut-Off Calculation USD
Process Cost (1000 tpd) 12.00 USD/ton processed
General and Administration 2.50 USD/ton processed
Extra out of Mine Haulage 1.00 USD/ton processed
Underground Mining 42.50 USD/ton mined
Selling costs & payables 12 USD/ton processed ($240/tonne concentrate
x 5% mass pull)
Operating costs per ore ton (12.00 USD +2.50 USD +1.00 USD+ 42.50 USD
+ 12.00USD) = 70.00 USD/ton processed
The third criterion was based on practical mining widths. The shrinkage stopes widths are
between 0.8m and 1.5m. The long-hole open stopes are between 3.0 and 6.0 meters wide.
The forth criterion for stope generation was that the ore within the stopes on each level must
pay for the development to reach and exploit that level. Due to there being less Indicated
Resource below level 147, the stopes that qualified under the previous three criteria were
minimal. These stopes were not able to carry the costs of development below level 147 and
were removed from the design.
Recovery curves have been generated to determine the recoverable metal content of the
blocks. These curves are based on locked cycle floatation tests (LCTs) completed by
Maelgwyn Minerals Services Africa. Metal prices used were US$28/oz for silver, US$0.86/lb
for lead and US$1.00/lb for zinc. Average payables on lead zinc and silver were estimated at
US$240/t concentrate.
15.4 Modifying Factors
The selected mining method will require backfilling of stopes and no pillars will be left behind.
Based on this, the mining recovery was estimated to be 91%.
Mining Loss: 2%
Loss due to lashing: 2%
Loss due to existing voids: 5%
Mining dilution is estimated to be 8%. It is anticipated that 8% of the material mined will be
unplanned waste from blasting overbreak and possible contamination from the existing
stopes.
15.5 Mineral Reserves
The Pulacayo Mineral Reserves are estimated in Table 15.1 below.
Table 15.1: Mineral Reserve Statement prepared by TWP – Effective Date 17 January 2013
Class
Million
Tons (Mt)
AG
(G/T)
PB
(%)
ZN
(%)
AG
(MOz)
Probable 3.558 239.4 1.09 1.91 27.385 38,927 67,905
PB
(T)
ZN
(T)
TWP Sudamérica S.A. Av. Encalada 1257 Of. 801, Santiago de Surco Lima 33, Perú (51-1) 4377473
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