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
21.2 Operating Cost Estimate
21.2.1 Summary of Total Operating Costs
The operating cost expenditure (OPEX) for the Project is defined as all the operating costs
incurred from the start of the Project, after the initial capital spend, until the last ore tonne has
been mined out. OPEX costs include labour costs, running costs for equipment, consumables
costs, utilities and any other overhead costs incurred during the life of the operation.
The operating cost estimate includes operating costs for the underground mine and cemented
backfill plant, mineral processing plant, surface infrastructure including the tailings disposal facility
and general and administrative costs (G&A) costs for the integrated operation. No contingency for
the Project OPEX has been included. The integrated life-of-mine (LoM) OPEX amounts to 192
961 787 USD (54.9 USD/t ore processed). The OPEX cost is presented in Table 21.3. Mining
operating costs account for 56% of the total OPEX cost, whilst process and G&A account for 28%
and 16%, respectively (see Figure 21.1).
Figure 21.1 provides the composition of the OPEX cost expressed as a percentage of the total
operating cost.
Figure 21.1 Breakdown of LOM Operating Costs
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