Feasibility Study and Technical Report - Pretivm

21.1.5 RESPONSIBILITY MATRIXA team of engineers, procurement specialists, and cost estimators developed thefollowing areas of the capital cost estimate:• Tetra Tech – processing, infrastructure, process operating cost estimate,financial analysis, and overall preparation of the capital cost estimate• AMC – mining including mine capital and operating cost estimates• Rescan – environmental aspects including closure and tailings delivery systemdesign• BGC – tailings impoundment facility, waste rock and water management, andgeotechnical design• Valard – transmission line.21.1.6 WORK BREAKDOWN STRUCTUREThe estimate is organized according to the following hierarchical work breakdownstructure (WBS):• Level 1 = Major Area• Level 2 = Area• Level 3 = Sub-Area.21.1.7 ELEMENTS OF COSTThis capital cost estimate consists of the following four main parts.DIRECT COSTSAACE defines direct costs as:…costs of completing work that are directly attributable to its performance and arenecessary for its completion. In construction, (it is considered to be) the cost ofinstalled equipment, material, labor and supervision directly or immediately involved inthe physical construction of the permanent facility.Examples of direct costs include mining equipment, process equipment, mills, andpermanent buildings.The total direct cost for the Project is estimated to be $451.8 million.INDIRECT COSTSAACE defines indirect costs as:Pretium Resources Inc. 21-3 1291990200-REP-R0012-02.1Feasibility Study and Technical Report on the BrucejackProject, Stewart, BC