Feasibility Study and Technical Report - Pretivm

MAJOR AREA 98 – OWNER’S COSTSItems included in the Owner’s costs are the Project team (salaries), travel, recruitment,training, human relations, community relations, health and safety, security,environmental considerations, permits/licenses/fees, insurance, legal/audits, satelliteoffice, communications, and orientation.The total allowance for Major Area 98 – Owner’s Costs is $22.3 million.MAJOR AREA 99 – CONTINGENCYA contingency allowance was established for each area/discipline/task depending on thelevel of engineering effort and risk.The largest single contingency allowance is for mining at $19.1 million, followed byarchitectural ($8.0 million), power line ($7.5 million), and bulk earthworks ($6.2 million).The total allowance for contingency for the Project is $64.4 million.21.2 OPERATING COST ESTIMATE21.2.1 SUMMARYThe total LOM average operating cost for the Project is estimated at Cdn$156.46/t oremilled, which includes costs for:• mining• process• material re-handling in Year 1 for the stockpiled ore produced during preproduction• general and administrative (G&A)• surface services• backfill, including paste preparation• water treatment.The operating costs exclude sustaining capital costs, off-site costs (such as shipping andsmelting costs), taxes, permitting costs, or other government imposed costs, unlessotherwise noted.A total of 542 personnel are projected to be required for the Project, including an averageof 316 personnel for mining operations, 95 personnel for process, 43 personnel for G&A,78 personnel for surface services, and 10 personnel for the backfill plant and watertreatment plant. The mining personnel requirement is expected to gradually reduce afterYear 15 to approximately 167 personnel in Year 22.Pretium Resources Inc. 21-9 1291990200-REP-R0012-02Feasibility Study and Technical Report on the BrucejackProject, Stewart, BC