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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 />

a) Direct Labor<br />

The labor cost was calculated using the Bolivian regulations on social laws and benefits<br />

established for employees in civil and mining works. All of the labor costs are based in the<br />

following criteria:<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

Cost based on a working day<br />

Payroll burdens and overtime shift premium rates<br />

Social laws<br />

Working week of 48 hours<br />

Tools and supplies<br />

Indirect costs of the contractor on site and at head office<br />

Contractor profits<br />

Labour productivity<br />

The labor rates assumed that all contractor craft personnel will be Bolivian. Temporary power and<br />

catering were excluded from the labour rates and changed to the project indirect costs.<br />

b) Materials and Rates for Construction<br />

The prices for materials and rates at unitary prices for the execution of diverse works in the<br />

project construction are determined using the available information in the TWP’s database and<br />

the rates used for contractors in the execution of the different works that TWP contracts at<br />

present time.<br />

c) Civil Works<br />

The list of materials drifts from the plans and schemes of project engineering. The estimations<br />

are based in the usually accepted practice in this type of study.<br />

Earth Movement Works<br />

The estimates of the amounts for earth movements include the effect of volume lost by the<br />

compaction of the material. In general, earthworks quantities were generated from site layouts<br />

(cut and fill, drilling and blasting, etc.).<br />

The estimation of the volume quantity of earth moving is subject to two parameters; the influence<br />

area and depth of the foundation structure. These parameters are calculated based on the<br />

structure weight and the ground bearing capacity.<br />

The measurement unit of the earth movement cost is based on the ratio USD/m 3 . These ratios<br />

are in agreement with the TWP database for similar projects.<br />

The earth movement costs and platform construction for the plant and plant infrastructure, as well<br />

as the internal access construction have been assumed by the client (Sunk Costs).<br />

TWP Sudamérica S.A. Av. Encalada 1257 Of. 801, Santiago de Surco Lima 33, Perú (51-1) 4377473<br />

Page 261

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