Pulacayo Project Feasibility Study - Apogee Silver

More documents

Recommendations

Info

Pulacayo 1 000 t/d Phase I Feasibility Study - NI 43-101 Technical Report 090644-3-0000-20-IFI-100 Patacayama for packaging before being onward shipped to China. However, if the concentrates need to be blended and suitable facilities do not exist in Bolivia, trucking to Callao, Peru where they will either be blended for export or shipped ‘as is’ in containers, again with destination China (or parity) may be an option. This movement may actually prove to be competitive based on estimated trucking, port costs and ocean freight rates and would offer a greater degree of commercial flexibility due to the number of traders operating out of this port. In addition to the various trucking alternatives, FCAB (owned by the Luksic Group in Chile) operates a rail line from which runs relatively near to the project to Antofagasta. Early indications were that rates for concentrate movements to the port may potentially be very low. However, it is understood that this line is already operating at capacity and may not be able to handle any additional concentrates. As noted earlier, any costs associated with these movements will either be borne directly by Pulacayo or be charged back to the mine via a freight allowance imposed by the buyer. In either case, the net cost is assumed to be the equivalent. 19.5.2 Additional Logistics Issues 19.5.2.1 Handling Losses During the transportation of concentrates from the mine to the customer, it is inevitable that some losses will occur due to spillage and exposure to the elements. While there is no exact figure as to what handling losses can be expected, common industry practice suggests losses of 0.1 to 0.2% at each handling point. Based on the movement of concentrate from the mine to the receiving smelter the handling points would be as follows: 1. Storage shed at mine loaded into truck 2. Truck discharged into storage shed at port 3. Storage shed at port conveyed into container/onto vessel 4. Vessel discharged onto quay/into trucks Depending on the handling procedures prior to weighing and sampling at the receiving end, there could be an additional handling point (or points) after discharge. Based on the above noted rule of thumb, handling losses could be in the order of 0.3% to as much as 1.0%. In order to minimize handling losses, precautions should be taken at each transfer point (e.g. aprons on the sides of vessels at loading and discharge) and during transit (e.g. covered trucks). 19.5.2.2 Insurance Ocean marine cargo insurance can be obtained for all concentrates shipped by vessel. Under CIF contracts, marine insurance is taken out by the seller in the name of the buyer for 110% of the estimated value of the concentrates in each shipment. Risk of loss, excluding normal handling losses, passes to the buyer as concentrates are progressively loaded onto the carrying vessel. Insurance rates typically average around 0.05 to 0.065% of the estimated invoice value (adjusted to 110%) i.e. the payable metal value, less all treatment and refining charges, as well as any penalties and escalators/de-escalators which may apply (equivalent to the “Net Invoice Value”, or TWP Sudamérica S.A. Av. Encalada 1257 Of. 801, Santiago de Surco Lima 33, Perú (51-1) 4377473 Page 237
Pulacayo 1 000 t/d Phase I Feasibility Study - NI 43-101 Technical Report 090644-3-0000-20-IFI-100 “NIV”). For purposes of the Feasibility Study, it is recommended that insurance costs of 0.06% of the Net Invoice Value (adjusted to 110%) be used for evaluation purposes. 19.5.2.3 Representation Inspection/representative services are typically employed at the vessel discharge or at an intermediate delivery point during the weighing and sampling procedures to ensure that the mine’s interests with respect to the handling of the concentrates are fully respected. There are a number of companies, which offer these services, including such international firms as Alfred H. Knight International, SGS and Stewart Group. Costs for representation services are typically in the order of USD 0.30 to 0.50/wmt concentrate. 19.6 Conclusions Although the Pulacayo lead concentrates may face some additional challenges to marketing due to their high silver grades and impurity levels (notably arsenic and antimony), both Pulacayo products are viewed as being readily saleable to buyers under normal market conditions. Although mine-smelter supply-demand balances will ultimately drive the market for concentrates, because of the relatively small projected annual production volumes of each material, it is assumed that sales will be pursued with traders who can generally offer more favorable purchase terms and conditions and have better means of dealing with any quality issues. For purposes of the Feasibility Study, it is recommended that the following charges be used: Table 19.17: Treatment Charges/Refining Charges/Escalators/De-Escalators (USD) Zinc Concentrates TC USD 190 per dmt USD 225 per dmt Basis price USD 2,200 per mt Zn USD 2,000 per mt Pb Escalator +USD 0.03/dmt for each $1.00 Zn price > USD 2 200/mt De-escalator Trader TC Discount -USD 0.03/dmt for each USD 1.00 Zn price < USD 2 200/mt USD 15.00 per dmt Lead Concentrates +USD 0.10/dmt for each USD 1.00 Pb price > USD 2 200/mt -USD 0.05/dmt for each $1.00 Pb price < USD 1,800/mt USD 15.00 per dmt RC – Ag Nil USD 1.50 per payable oz RC – Au Nil USD 8.00 per payable oz Penalties: Cd: USD 1.50/dmt/0.10% Cd > 0.35% Cd As: USD 1.50/dmt/0.10% As > 0.30% As Sb: USD 1.50/dmt/0.10% Sb > 0.30% Sb Based on the above, net smelter return calculations (NSRs) were derived for the Pulacayo zinc and lead concentrates basis sales to traders under the following assumptions: TWP Sudamérica S.A. Av. Encalada 1257 Of. 801, Santiago de Surco Lima 33, Perú (51-1) 4377473 Page 238
Page 1 and 2:
NI 43 — 101 TECHNICAL REPORT PULA
Page 3 and 4:
Pulacayo 1 000 t/d Phase I Feasibil
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200: Pulacayo 1 000 t/d Phase I Feasibil
Page 249: Pulacayo 1 000 t/d Phase I Feasibil
Page 301 and 302:
Page 303 and 304:
Page 305 and 306:
Page 307 and 308:
Page 309 and 310:
show all

Pulacayo Project Feasibility Study - Apogee Silver

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?