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 />
20.9 Recommendations<br />
The recommendations on the <strong>Pulacayo</strong> Mining <strong>Project</strong> are aimed at:<br />
<br />
<br />
<br />
Keeping the communities and native authorities and the ones of the ayllus informed<br />
regularly about the progress and gradual changes of the mining project.<br />
Comply with the Section 151 of Regulation on Prevention and Environmental Control<br />
(RPCA) which states that the legal representative shall submit to the Competent<br />
Environmental Authority, technical annual reports that show the progress and the<br />
environmental situation of the project.<br />
Conduct a thorough inspection to the Environmental Mitigation Plans in order to reduce<br />
the probabilities of environmental incidents within areas of influence of the mining project,<br />
also make changes and updates to the plans when required.<br />
21 CAPITAL AND OPERATING COSTS<br />
The <strong>Pulacayo</strong> Pb-Zn-Ag <strong>Project</strong> scope covered in this <strong>Feasibility</strong> <strong>Study</strong> (FS) is based on the<br />
construction of a greenfield facility having a nominal ore processing capacity of 1,000 t/d. The<br />
Capital and Operating Cost estimates related to the underground mine, concentrator, and site<br />
infrastructure, have been developed by a number of independent consultants and integrated by<br />
TWP. The capital and operating costs for the <strong>Pulacayo</strong> <strong>Project</strong> have been prepared in<br />
accordance with standard industry practices for this level of study and to a level of definition and<br />
intended accuracy of ± 15%<br />
21.1 Capital Cost Estimate<br />
21.1.1 Summary of Total Capital Cost<br />
The capital cost estimates have been split into two categories: Initial (upfront) and sustaining (ongoing)<br />
capital costs. The split between initial capital and sustaining capital was chosen as month<br />
26 of the project. Hence all capital required from month 27 is classified as sustaining capital. This<br />
was the suggestion of the Mining QP, J Porter, with the justification that at this point the<br />
cumulative losses (earnings before taxes and depreciation) became zero. In month 26, the<br />
concentrator is not complete and so there is approximately $1.4million of capital outstanding to<br />
complete the process plant. The sustaining capital is carried over operating year 3 through year<br />
13 (6 months, 12.5 years). Table 21.1 presents the total estimated initial and sustaining capital<br />
costs for the <strong>Project</strong>. All cost estimates are expressed in constant US Dollars.<br />
The estimated capital cost (upfront and sustaining) to design, construct, install and commission<br />
the facilities is USD 87 087 734 (see Table 21.1). This amount covers the direct costs of<br />
executing the project, plus indirect costs associated with construction management and<br />
commissioning. Base pricing is second quarter (Q2), 2012 American dollars (USD), with no<br />
allowance for inflation and escalation beyond that time.<br />
TWP Sudamérica S.A. Av. Encalada 1257 Of. 801, Santiago de Surco Lima 33, Perú (51-1) 4377473<br />
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