Pulacayo Project Feasibility Study - Apogee Silver
Pulacayo Project Feasibility Study - Apogee Silver
Pulacayo Project Feasibility Study - Apogee Silver
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<strong>Pulacayo</strong> 1 000 t/d Phase I <strong>Feasibility</strong> <strong>Study</strong> - NI 43-101 Technical Report<br />
090644-3-0000-20-IFI-100<br />
Table 19.12: Treatment Charges/Refining Charges/Escalators/De-Escalators (USD)<br />
Zinc Concentrates<br />
TC $190.00 per dmt $225.00 per dmt<br />
Basis price $2,200 per mt Zn $2,000 per mt Pb<br />
Escalator<br />
De-escalator<br />
+$0.03/dmt for each $1.00 Zn price ><br />
$2200/mt<br />
-$0.03/dmt for each $1.00 Zn price <<br />
$2,200/mt<br />
Lead Concentrates<br />
+$0.10/dmt for each $1.00 Pb price ><br />
$2200/mt<br />
-$0.05/dmt for each $1.00 Pb price <<br />
$1,800/mt<br />
RC – Ag Nil $1.50 per payable oz<br />
RC – Au Nil $8.00 per payable oz<br />
If sales are to be made to a trader or traders, then mines should typically expect to receive a<br />
discount to the benchmark treatment charge to entice the mine to sell to them. In exchange for<br />
such discounts, traders will seek contract flexibility, including options on Quotational Periods<br />
(discussed below), as well as possible destination and/or quantity options. The more options<br />
provided, the greater the value to the trader and thus the higher the level of the likely discount<br />
provided. Other factors can also come into play when determining discounts such as prevailing<br />
market conditions (e.g., a softer market would likely command smaller discounts) and<br />
concentrate quality considerations.<br />
As it is assumed that sales will ultimately be made to the trade, for the purposes of the <strong>Feasibility</strong><br />
<strong>Study</strong> it is recommended that the following discounts to the zinc and lead TCs are used:<br />
Table 19.13: Discounts to the Zinc and Lead TCs<br />
Zinc Concentrates Lead Concentrates<br />
TC Discount $15.00 per dmt $15.00 per dmt<br />
19.4.5 Penalties<br />
As noted, based on indicated assays, the <strong>Pulacayo</strong> zinc concentrates are to be considered<br />
“clean” and thus not subject to any penalties. Nonetheless, at the time of preparation of this<br />
report a specification for cadmium, an element commonly found in zinc concentrates, was not<br />
available. Typical cadmium penalties for zinc concentrates are:<br />
Cd<br />
USD 1.50/dmt for each 0.10% Cd > 0.35% Cd<br />
The <strong>Pulacayo</strong> lead concentrates are to be considered somewhat complex due to the elevated<br />
levels of arsenic and antimony. While these levels are unlikely to create significant challenges to<br />
placing this material, penalties will apply. As such, for purposes of the <strong>Feasibility</strong> <strong>Study</strong>, it is<br />
recommended that the following penalty schedule be used:<br />
As<br />
Sb<br />
USD 1.50/dmt for each 0.10% As > 0.30% As<br />
USD 1.50/dmt for each 0.10% Sb > 0.30% Sb<br />
TWP Sudamérica S.A. Av. Encalada 1257 Of. 801, Santiago de Surco Lima 33, Perú (51-1) 4377473<br />
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