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Capital Costs
The initial capital requirement for the Project is estimated to be $439.5 M, as detailed in Table 5.
Table 5. Pre-production Capital Costs
----------------------------------------------------------------------------Items Estimate (M$)----------------------------------------------------------------------------Site Development 7.4Underground Mining 38.5Underground Process Facilities 11.7Limestone Quarry 0.2Processing Plant 63.1Tailings & Waste Rock Management 15.5On-Site Infrastructure 61.5Mine Access Road (directs) 54.2Project Indirects 91.6Engineering & EPCM 31.4Owner's Costs 17.3----------------------------------------------------------------------------Subtotal Pre-Production Capital 392.4----------------------------------------------------------------------------Contingency (12.0%) 47.1----------------------------------------------------------------------------Total Pre-Production Capital 439.5----------------------------------------------------------------------------
The Project has a total sustaining capital requirement of $64.0 million. Sustaining capital is required for extension of the main ramp to depth, mobile equipment rebuilds and replacements, and capital improvements.
Reclamation/Closure & Salvage Costs
Total reclamation/closure and salvage costs have been estimated as follows:
Table 6. Reclamation/Closure & Salvage Costs
------------------------------------Items M$------------------------------------Reclamation/Closure 13.8Salvage Value (7.6)------------------------------------
Operating Costs
Total operating costs for the Project have been estimated as follows:
Table 7. Operating Costs
-------------------------------------------------------Items $/tonne-------------------------------------------------------Mining 30.06Processing 23.02Power 22.58G&A 22.47Transportation (Conc. and supplies) 27.83-------------------------------------------------------Total 125.96-------------------------------------------------------
This cost represents the Life of Mine Cash Cost of the Project, from years 1 - 9 inclusive.
Financial Analysis and Sensitivities
Using the three year trailing average commodity prices, the study yields a pre-tax NPV8% of $192.7 million and an IRR of 16.5% with a payback period of 3.9 years and a post-tax NPV8% of $146.0 million and an IRR of 14.9% with a payback period of 4.4 years.
