Feasibility Study and Technical Report - Pretivm

transport the concentrate to a built for purpose rail trans-load facility in Terrace, BC. Thebags will be stored and loaded in gondola type railcars and shipped via rail to the HorneSmelter in Noranda, Quebec.22.4.2 CONTRACTSThere are no established contracts for the sale of the doré or the concentrate currently inplace for the Project.22.4.3 TRANSPORT INSURANCEDoré transportation cost is $1.00/oz. Concentrate transportation cost is $193.24/wmtof concentrate. An insurance rate of 0.5% will be applied to the provisional invoice valueof doré and concentrate to cover transport from the mine site to the smelter.22.5 SENSITIVITY ANALYSISSensitivity analyses were carried out on the following parameters by changing oneparameter at a time between ±30% at 10% intervals while holding the rest of thefollowing parameters constant:• gold price• silver price• exchange rate• operating cost• capital cost.The analyses are presented as financial outcomes in terms of NPV in Figure 22.2, IRR inFigure 22.3 and payback period in Figure 22.4. The Project NPV (at a 5% discount rate)is most sensitive to the gold price and less sensitive to the rest of the parameters. TheProject IRR and payback are most sensitive to exchange rate and gold price followed byoperating costs, capital costs, and silver price.Pretium Resources Inc. 22-5 1291990200-REP-R0012-02Feasibility Study and Technical Report on the BrucejackProject, Stewart, BC