Mine Closure
Mine closure costs are estimated by Stavibel at $22.6 million. Of this amount, an estimated $15.8 million would have to be deposited in accordance with applicable legislation which may vary upon approval of production permits. The closure costs are spread out over the LOM, in the cash-flow calculation, but are excluded from capital or sustaining capital costs.
Wherever practical, a progressive reclamation approach is recommended, since the tailing ponds will be built in stages. At Duparquet, the overburden disposal area will be reclaimed and used as capping material to re-vegetate waste rock and tailings disposal sites.
Capital and Sustaining Capital Costs Estimates
The PEA Study is based on capital pricing as of the first quarter 2012. The capital costs include various added contingencies depending on the sectors. The pre-production capital costs are estimated at $370.2 million and include $132 million for contingencies and indirect costs. Indirect costs (owner's costs, Engineering, Procurement and Construction Management ("EPCM") and detailed engineering) of 15 % have been applied on the process plant and 17 % to the other surface infrastructures. Contingencies of 15% have been applied on the mill and infrastructures, and 25% have been applied on the waste rock and tailings impoundments. Average contingency for all environmental items is 20.5%. Sustaining capital expenditures over the LOM are estimated at $144.7 million, including $29.6 million for the overburden removal during mine life.
---------------------------------------------------------------------------- Sustaining Capital Costs Capital ($ million) ($ million)----------------------------------------------------------------------------Mine Process plant (Crushing, grinding, gravity, flotation, pressure oxidation, leaching, refinery) and infrastructures. 260.3----------------------------------------------------------------------------Tailings ponds, waste dump, water treatment plant, clean-up of site. 50.5 8.4----------------------------------------------------------------------------Mine production equipment, Power line and sub- station, Buildings. 49.8 106.7----------------------------------------------------------------------------Overburden removal 29.6----------------------------------------------------------------------------Owner's cost, site infrastructure 9.6----------------------------------------------------------------------------Total Costs 370.2 144.7============================================================================Total capital costs, LOM. 515----------------------------------------------------------------------------
Operating Costs
The LOM average operating cash cost is estimated at US$726 per ounce of gold and an average of $29.38/t milled. For the first 10 years, the operating cost will average $36.65 per tonne milled. The average will be $16.62 per tonne milled for the last 6 years, when only milling of the stockpiles and tailings takes place. On the cash flow estimation, mining costs was adjusted at $2.40/t for the mineralized rock and $2.15/t for the waste rock. Overburden removal costs were estimated at $2.00/t.
----------------------------------------------------------------------------Average operating costs, first 10 years. $/t milled----------------------------------------------------------------------------Mining & environment 20.12----------------------------------------------------------------------------Processing 13.13----------------------------------------------------------------------------G&A 3.40----------------------------------------------------------------------------Total 36.65----------------------------------------------------------------------------
