Tabla - Comparacion Estudios Ingenieria

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    DESCRIPTIONConceptual

    Sco in Stud

    Prefeasibility

    Stud

    Feasibility

    StudINTRODUCTION

    Location, Topography and Climate

    Site Location Map Basic mapPreliminary map showing claims and

    boundaries

    Detailed map showing a

    boundaries

    Topography Map Basic map showing site topographyPreliminary map showing site

    topographic features

    Detailed topographic map

    verified with ground contro

    Property Ownership Review of property leaseReview of property lease; claims list

    provided; mineral rights known

    Property lease and rights

    controlled; claims list and

    mineral rights secured

    Current Status and History

    Historical Chronology Basic presentat ion Full presentation Detailed presentationPast Production (if any) Basic presentation Full presentation Detailed presentation

    EXPLORATION AND GEOLOGY

    Geologic Description

    Review Preliminary review Preliminary site-specific analysis Detailed site-specific analy

    Data Posting Review of available existing mapsDetailed geologic mapping with cross-

    sections

    Deposit well-defined

    dimensional mapping, g

    long sections, level plans

    Geologic Assessment Preliminary Basic assessment and review

    Detailed assessment of

    contacts, alteration,

    deposit trends

    Mineralogical Sampling & Analysis Limited sampling; preliminary assessmentPreliminary mineralogical sampling and

    analysis; preliminary mineralogic study

    Detailed mineralogical

    mapping; detailed mineralo

    Drilling, Sampling and Assaying

    Drill Hole Parameters Wide spaced drilling as appropriate Initial in-fills of wide spaced drilling;preliminary grid patterns

    Close spaced drilling on

    pattern to support calc

    categories

    Underground Drilling Review of existing data Drilling if accessible Detailed drilling if accessib

    Samples Preliminary; some outcrop samplesGeophysical and geotechnical sampling;

    test pitsAll sampling programs com

    Drilling/Assay DataPreliminary check of exist ing drill hole

    data

    Check of drill holes (coordinates,

    elevations, angles, etc.), check assays,

    angled hole vs vertical hole comparison;

    assay flow diagram, dependable

    database

    Check of drill holes

    elevations, angles, etc.),

    angled hole vs vertical ho

    assays, angled hole vs

    comparison, twin hole drill

    diagram; validated databas

    Condemnation Drilling None NoneAreas under waste dump

    plant drilled

    RESOURCES AND RESERVES (Internationally Recognized Standards [see note 1])

    Resources Indicated and Inferred Measured, Indicated, and Inferred Indicated and Measured

    Geologic Controls AssumedEstablished from geologic data and/or

    variogramsWell established from geol

    Tonnage Factors Preliminary assessment if available Preliminary analysis and determinations Detailed analysis and dete

    Statistical Analysis Not performed Preliminary analysis and determinations Detailed analysis and dete

    Geostat istical Analysis Not performed Preliminary analysis and determinations Detailed analysis and dete

    Reserves Only resources estimated Proven and Probable Proven and Probable

    Calculation Parameters Usually no reserves are estimated Known or estimated Detailed analysis and dete

    Cutoff Grade (COG) Equations Usually no reserves are estimatedCalculated from floating cone

    parameters

    Optimized using min

    parameters

    MINING

    Mining MethodAssumed between open pit and

    underground

    Specific method identified Method and mine plan fina

    Open Pit Mine Plan

    Pit Slopes AssumedPreliminary estimates by rock type and

    basic geotechnical data

    Defined by geotechnica

    structural mapping and

    holes

    Pit Design Simple outline of final pit

    Preliminary pit design from optimized

    analysis; preliminary haulroad

    incorporated

    Detailed pit designs with

    access for equipment oper

    Waste Dumps Simple outline of final dumps

    Preliminary design for total waste

    tonnage; incremental and final outline of

    dumps

    Dump sites identified from

    data; final waste tonnag

    with incremental phases, y

    dump outlined

    Underground Mine PlanAssumed mining system; general outline

    of mine plan and development

    Preliminary mining system identif ied

    from geologic and geotechnical data

    preliminary outline of mine plan and

    development including mine access

    Specific mining system

    geologic and geotechnica

    outline of mine plan and

    including mine access

    Production ScheduleBasic schedule based on assumed mine

    life

    Yearly and mine life ore and waste

    tonnages and grade

    Detailed annual schedules

    product quality and waste

    grades

    Capital Cost EstimateOrder-of-magnitude, factored or from

    similar operations

    Preliminary equipment list; budget or

    historical price quotes; some factoring

    Detailed equipment list; fir

    for all major equipment ite

    items identified

    Operating Cost EstimateOrder-of-magnitude; factored or from

    similar operations

    Quantif ied estimates for labor, power

    and consumables; budget or historical

    price quotes for unit prices; some

    factoring

    Detailed engineering estim

    area based on quotes and

    Minimum Report Contents for Engineering Studies

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    PROCESSING

    Ore Sampling and Test Work

    Minimal sampling; conduct lab bench

    scale process characterization tests on

    collected samples (if available)

    Sampling of core; preliminary benchscale testing to determine preliminary

    recoveries, ore characterization and

    processing parameters for f low sheet

    development

    Sampling of core for dzones; confirm

    comprehensive ben

    program to determ

    ore/product characteriza

    processing parameters

    Process Engineering and Design

    Production Rate and Product(s)First estimate of production rate and

    product(s)

    Preliminary mining and processing rates

    and plant product(s)

    Fixed mining and proce

    plant product(s)

    Design Basis Preliminary using factored estimates

    General design basis; preliminary

    engineering drawings; trade-off studie

    optional

    Complete design

    engineering drawing

    complete; trade-off stud

    Design Concept

    Outline of design criteria and

    specifications incorporating area/regional

    climatic conditions

    Design criteria established for

    construction site incorporating known

    site climatic conditions

    Design specificatio

    incorporating known

    conditions

    Process Description GeneralNarrative; 1 to 2% of detail engineering

    complete

    Detailed; 5 to 15% of d

    complete

    Layout

    Approximate geographic locations and

    site map; no general arrangement

    drawings

    Optimization of facility locations on site

    map showing topography; simple

    general arrangement drawings of major

    equipment items

    Exact geographic locati

    with topography; de

    arrangement drawings;

    all facilities

    Flow SheetsAssumed flow sheet from known

    processes; simple block diagram

    Establishment of probable flow sheet

    from preliminary test work data; major

    process flow diagrams; initial

    determinations of material and heat

    balances.

    Detailed flow shee

    comprehensive ben

    program, detailed

    diagrams for all proces

    and heat balances finaliz

    Civil Work

    Rough topographic maps; no soil

    conditions considered or quantities

    estimated

    Rough topographic maps; soil conditions

    report for foundation determinations;

    basic preliminary quantities

    Detailed togographic

    conditions identified

    design, loadings and qua

    Equipment Specifications Major equipment items listed

    Preliminary listing of major equipment

    items with initial sizings andspecifications

    Complete listing of m

    items with detailedspecifications

    Architectural None Sketches Exterior elevations only

    Piping/HVAC None Preliminary P&ID Major P&ID

    Electrical Distribution None Basic one-line diagram All design one-line diagra

    Motors None General descriptionDetailed list of maj

    horsepower

    Instrumentation None General description Detailed list of compone

    INFRASTRUCTURE

    FacilitiesGeneral overview with types of support

    facilities described

    All required support facilities identified,

    sizes and quantities estimated

    Facilities General overv

    support facilities descr

    support facilities ident

    quantities estimated

    support facilit ies ident

    costed

    Communications Communications requirements identified Communications systems study

    Communications

    requirements identified

    systems study Commun

    and standards known

    PowerOverview of power availability and

    regional unit power costs

    Power sources and requirements

    identified; unit costs obtained from power

    source

    Power requirements

    derived from detailed e

    unit costs from quotes

    HYDROLOGY

    Water Sources Estimated using regional data Preliminary hydrology study

    Water Sources Estimat

    data Preliminary hydrolo

    water source identified

    Water Usage Factored plant volume and unit costsRequired plant water volumes and unit

    costs estimated

    Requisite plant volume

    derived from

    engineering/geotechnica

    Dewatering Dewatering parameters identified Dewatering parameters estimated Dewatering parametersplan defined

    ENVIRONMENTAL

    Setting

    Preliminary evaluation of project setting

    for potentially significant environmental or

    permitting constraints for site data

    Preliminary evaluation of the project's

    impact on the environment; schedule of

    environmental and/or other permitting

    requirements; evaluate project setting

    for potentially significant environmental

    and/or permitting constraints from site

    data

    Characterization of a

    potential impacts on t

    finalize schedule of envi

    other permitting require

    project setting for pote

    environmental and/

    constraints

    Data

    Collect and review all available, existing

    data for environmental studies

    assessments or audits; regulatory

    inspections, waste handling practices,

    management plans, and all applicableenvironmental laws and regulations; no

    social, training or safety programs

    identified

    Collect and review available

    environmental data from existing

    databases for environmental studies,

    assessments or audits; regulatory

    inspections,

    waste handling practices; managementplans; and all applicable environmental

    laws and regulations; plans; initiate

    baseline data gatherin social, training,

    and health /safety programs identified

    All requisite environm

    project are identified; s

    analyses are complete

    of the type, scope a

    producing environm

    government reports;gathering and evaluat

    environmental condition

    and health/safety progra

    confirmed

    EIS/EA None Draft EIS/EA initiatedDraft EIS/EA submitte

    authorities

    Reporting and PlansConceptual plans for managing any

    identified environmental issues

    Preparation of environmental plans and

    monitoring programs; preliminary

    sediment and erosion control plan;

    conceptual reclamation plan; evaluation

    of acid rock drainage; geotechnical

    stability review of waste dumps and

    tailings dam; preliminary impact

    mitigation plan; preliminary spill andemergency response plan

    Environmental characte

    project design; environm

    monitoring programs

    sediment and erosion

    management plan finali

    hazardous wastes;

    mitigation plan; geote

    analysis of all major

    reclamation plan; finalrock drainage; fina

    emergency response pla

    Monitoring Not consideredOutline of a site environmental

    monitoring planComplete environmenta

    PERMIT REQUIREMENTS General overviewComprehensive overview and listing of

    required permits

    Detailed evaluation o

    environmental and

    requirements and sched

    operating license

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    PROJECT DEVELOPMENT SCHEDULE

    Development Plan Development period and mine lifeestimated

    Development period and overallschedule estimated; mine life

    determined development schedule set

    Detailed development scknown; development sch

    Project Master Schedule

    Estimated showing start and end of

    construction; Gantt bar chart of major

    work elements

    Gantt bar chart with overall time frames;

    schedule outline for detailed engineering;

    QA/QC program outlined; preliminary

    construction schedule; preliminary

    project execution plan

    Gantt bar chart with ove

    and project flow pla

    project level schedule

    deliverables and detai

    CP schedule; maj

    identified; project control

    QA/QC and safety pr

    preliminary project pro

    project design basis fina

    CAPITAL COST ESTIMATE

    Basis

    Civil Structural

    Architectural

    Piping/HVAC

    Electrical

    Instrumentation

    Construction Labor

    Construction Labor Productivity

    Material Volumes/Amounts

    Material/Equipment Pricing

    Infrastructure

    ContractorsIncluded in unit cost or as a percentage of

    total cost

    Percentage of direct cost by cost area

    for contractor; historic for subcontractors

    Written quotes from

    subcontractors

    EPCMPercentage of estimated construction

    costPercentage of detailed construction cost Calculated estimate from

    Pricing

    FOB mine site including all taxes and

    duties

    FOB mine site including all taxes and

    duties

    FOB mine site includin

    duties

    Owner's Historic estimateEstimate from experience factored for

    similar project

    Estimate prepared fro

    based budget

    Environmental Compliance Factored from historic experienceEstimate from experience factored for

    similar project

    Estimate prepared fro

    based budget for design

    specific permit requirem

    Escalation Typically not consideredBased on company's current budget

    percentageBased by cost area with

    Working Capital Factored from historic experienceEstimate from experience factored for

    similar project

    Estimate prepared fro

    based budget

    Accuracy +-50% +/- 25% +/- 15%

    Contingency 25% 15% 10%

    OPERATING COST ESTIMATE

    Basis Order-of-Magnitude estimateEstimates for unit rates and quantified

    estimates with some factoring

    Detailed from zero

    minimal factoring

    Operating Quantities General Quantified by estimates with somefactoring

    Detailed estimates

    Unit Costs Historic unit costs and factoringEstimates for labor, power and

    consumables; some factoring

    Letter quotes from v

    factoring

    Accuracy +/- 35% +/- 25% +/- 15%

    ECONOMIC EVALUATION

    Financial AnalysisPreliminary assessment of principal

    economic parameters

    Assessment of the principal economic

    parameters

    Full assessment of all p

    parameters

    Commodity Price(s)Estimated based on 3yr average

    minimum

    Estimated based on 3yr average

    minimum

    Estimated based on

    minimum or detailed ma

    Royalties and Taxes Preliminary assessment Preliminary analysisDetailed analysis with

    opinion

    Smelting, Refining and Freight Historic data Budgetary quotes Firm quotes

    Cash Flow Analysis Simple cash flow Preliminary cash flow Formal, detailed cash flo

    Economic Criteria Simple IRR and NPV (pre- and after-tax)Preliminary IRR and NPV (pre- and after

    tax)

    Fully defined IRR, N

    payback period (pre- andSensitivity Analysis

    Basic analysis to minimal amount of

    project variables

    Preliminary to selected key project

    variables

    Numerous analysis to

    variables

    RISK EVALUATION

    Risk Assessment General overview Fatal flaw analysisFormal Monte Carlo a

    flaw analysis

    ProjectPreliminary overview of geology,

    engineering, and environmental

    Preliminary environmental, country,

    permitting, technology, and business;

    detailed geology and engineering

    Detailed geology,

    environmental, legal, pe

    technology, business, an

    Note 1: Internationally Recognized Standards include:

    1. Canadian National Instrument 43-101 and 43-101 CP.

    2. Australiasian Code for Reporting of Mineral Resources and Ore Reserves - prepared by the Joint Ore Reserve Committed (JORC)

    3. U.S. Securities & Exchange Commission Industry Guide 7

    4. SME Guide for Reporting Exploration Information, Mineral Resources and Mineral Reserves

    Order-of-magnitude based historic data

    or factoring

    Estimates from historical factors,

    percentages and vendor quotes based

    on materials volumes

    Detailed from estimates

    to 25% complete; multip

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    DESCRIPTIONConceptual

    (Scoping Study)

    Prefea

    StINTRODUCTION

    Location, Topography and Climate

    Site Location Map Basic map Preliminary map showing claims and bound

    Topography Map Basic map showing site topography Prel iminary map showing site topographic f

    Property Ownership Review of property lease Review of property lease; claims list provide

    Current Status and History

    Historical Chronology Basic presentation Full presentation

    Past Production (if any) Basic presentation Full presentation

    EXPLORATION AND GEOLOGY

    Geologic Description

    Review Preliminary review Preliminary site-specific analysis

    Data Posting Review of available existing maps Detailed geologic mapping with cross-secti

    Geologic Assessment Preliminary Basic assessment and review

    Mineralogical Sampling & Analysis Limited sampling; preliminary assessment Preliminary mineralogical sampling and an

    Drilling, Sampling and Assaying

    Drill Hole Parameters Wide spaced drilling as appropriate Initial in-fills of wide spaced drilling; prelimin

    Underground Drilling Review of existing data Drilling if accessible

    Samples Preliminary; some outcrop samples Geophysical and geotechnical sampling; te

    Drilling/Assay Data Preliminary check of existing drill hole dataCheck of drill holes (coordinates, elevation

    vs vertical hole comparison; assay flow dia

    Condemnation Drilling None None

    RESOURCES AND RESERVES (Internationally Recognized Standards [see note 1])

    Resources Indicated and Inferred Measured, Indicated, and Inferred

    Geologic Controls Assumed Established from geologic data and/or vario

    Tonnage Factors Preliminary assessment if available Preliminary analysis and determinations

    Statistical Analysis Not performed Preliminary analysis and determinations

    Geostatistical Analysis Not performed Preliminary analysis and determinations

    Reserves Only resources estimated Proven and Probable

    Calculation Parameters Usually no reserves are estimated Known or estimated

    Cutoff Grade (COG) Equations Usually no reserves are estimated Calculated from floating cone parameters

    MINING

    Mining Method Assumed between open pit and underground Specific method identified

    Open Pit Mine Plan

    Pit Slopes Assumed Preliminary estimates by rock type and bas

    Pit Design Simple outline of final pit Preliminary pit design from optimized analy

    Waste Dumps Simple outline of final dumps Preliminary design for total waste tonnage;

    Underground Mine Plan Assumed mining system; general outline of mine plan and developmentPreliminary mining system identified from

    outline of mine plan and development inclu

    Production Schedule Basic schedule based on assumed mine life Yearly and mine life ore and waste tonnage

    Capital Cost Estimate Order-of-magnitude, factored or from similar operations Preliminary equipment list; budget or histor

    Operating Cost Estimate Order-of-magnitude; factored or from similar operationsQuantif ied estimates for labor, power an

    quotes for unit prices; some factoring

    PROCESSING

    Ore Sampling and Test WorkMinimal sampling; conduct lab bench scale process characterization tests on collected

    samples (if available)

    Sampling of core; preliminary bench scale

    ore characterization and processing param

    Process Engineering and Design

    Production Rate and Product(s) First estimate of production rate and product(s) Preliminary mining and processing rates an

    Design Basis Preliminary using factored estimates General design basis; preliminary engineer

    Design ConceptOutline of design criteria and specif ications incorporating area/regional climatic

    conditions

    Design criteria established for construct

    conditions

    Process Description General Narrative; 1 to 2% of detail engineering com

    Layout Approximate geographic locations and site map; no general arrangement drawings Optimization of facil ity locations on sitearrangement drawings of major equipment

    Flow Sheets Assumed flow sheet from known processes; simple block diagramEstablishment of probable flow sheet from

    flow diagrams; initial determinations of mat

    Civil Work Rough topographic maps; no soil conditions considered or quantities estimatedRough topographic maps; soil conditions

    preliminary quantities

    Equipment Specifications Major equipment items listed Preliminary listing of major equipment item

    Architectural None Sketches

    Piping/HVAC None Preliminary P&ID

    Electrical Distribution None Basic one-line diagram

    Motors None General description

    Instrumentation None General description

    INFRASTRUCTURE

    Facilities General overview with types of support facilities described All required support facilities identified, size

    Communications Communications requirements identified Communications systems study

    Power Overview of power availability and regional unit power costs Power sources and requirements identified

    HYDROLOGY

    Water Sources Estimated using regional data Preliminary hydrology study

    Water Usage Factored plant volume and unit costs Required plant water volumes and unit cos

    Dewatering Dewatering parameters identified Dewatering parameters estimated

    ENVIRONMENTAL

    SettingPreliminary evaluation of project setting for potentially significant environmental or

    permitting constraints for site data

    Prel iminary evaluation of the project's

    environmental and/or other permitting r

    potentially significant environmental and/or

    Data

    Collect and review all available, existing data for environmental studies assessments or

    audits; regulatory inspections, waste handling practices, management plans, and all

    applicable environmental laws and regulations; no social, training or safety programs

    identified

    Col lect and review available environm

    environmental studies, assessments or aud

    waste handling practices; management p

    and regulations; plans; initiate baseline dat

    programs identified

    EIS/EA None Draft EIS/EA initiated

    Reporting and Plans Conceptual plans for managing any identified environmental issues

    Preparation of environmental plans and

    and erosion control plan; conceptual r

    drainage; geotechnical stability review of w

    impact mitigation plan; preliminary spill and

    Minimum Report Contents for Engineering Studies

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    DESCRIPTIONConceptual

    (Scoping Study)

    INTRODUCTION

    Location To o ra h and Climate

    Site Location Map Basic map Preliminary map showing

    Topography Map Basic map showing s ite topography Preliminary map showing

    Property Ownership Review of property lease Review of property lease;

    Current Status and History

    Historical Chronology Basic presentation Full presentation

    Past Production (if any) Basic presentation Full presentation

    EXPLORATION AND GEOLOGY

    Geologic Description

    Review Preliminary review Preliminary site-specific aData Posting Review of available existing maps Detailed geologic mapping

    Geologic Assessment Preliminary Basic assessment and re

    Mineralogical Sampling & Analysis Limited sampling; preliminary assessment Preliminary mineralogical

    Drilling, Sampling and Assaying

    Drill Hole Parameters Wide spaced drilling as appropriate Initial in-fills of wide space

    Underground Drilling Review of existing data Drilling if accessible

    Samples Preliminary; some outcrop samples Geophysical and geotech

    Drilling/Assay Data Preliminary check of existing drill hole dataCheck of drill holes (coor

    vertical hole comparison;

    Condemnation Drilling None None RESOURCES AND RESERVES (Internationally Recognized Standards [see note 1])

    Resources Indicated and Inferred Measured, Indicated, and

    Geologic Controls Assumed Established from geologic

    Tonnage Factors Preliminary assessment if available Preliminary analysis and d

    Statistical Analysis Not performed Preliminary analysis and d

    Geostatistical Analysis Not performed Preliminary analysis and d

    Reserves Only resources estimated Proven and Probable

    Calculation Parameters Usually no reserves are estimated Known or estimated

    Cutoff Grade (COG) Equations Usually no reserves are estimated Calculated from floating c

    MINING

    Mining Method Assumed between open pit and underground Specific method identified

    Open Pit Mine Plan

    Pit Slo es Assumed Preliminary estimates by

    Pit Design Simple outline of final pit Preliminary pit design from

    Waste Dumps Simple outline of final dumps Preliminary design for tota

    Underground Mine Plan Assumed mining system; general outline of mine plan and development Preliminary mining systeoutline of mine plan and d

    Production Schedule Basic schedule based on assumed mine life Yearly and mine life ore a

    Capital Cost Estimate Order-of-magnitude, factored or from similar operations Preliminary equipment list

    Operating Cost Estimate Order-of-magnitude; factored or from similar operationsQuantified estimates for l

    for unit prices; some facto

    PROCESSING

    Ore Sampling and Test WorkMinimal sampling; conduct lab bench scale process characterization tests on collected

    samples (if available)

    Sampling of core; prelimin

    characterization and proc

    Process Engineering and Design

    Production Rate and Product(s) First estimate of production rate and product(s) Preliminary mining and pr

    Design Basis Preliminary using factored estimates General design basis; pre

    Design Concept Outline of design criteria and specifications incorporating area/regional climatic conditionsDesign criteria establis

    conditions

    Process Description General Narrative; 1 to 2% of deta

    Layout Approximate geographic locations and site map; no general arrangement drawingsOptimizat ion of facility

    arrangement drawings of

    Flow Sheets Assumed flow sheet from known processes; simple block diagramEstablishment of probabl

    diagrams; initial determina

    Civil Work Rough topographic maps; no soil conditions considered or quantities estimatedRough topographic map

    preliminary quantities

    Equipment Specifications Major equipment items listed Preliminary listing of majo

    Architectural None Sketches

    Piping/HVAC None Preliminary P&ID

    Electrical Distribut ion None Basic one-line diagram

    Motors None General description Instrumentation None General description

    INFRASTRUCTURE

    Facilities General overview with types of support facilities described All required support facilit

    Communications Communications requirements identified Communications systems

    Power Overview of power availability and regional unit power costs Power sources and requi

    Minimum Report Contents for Engineering

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    DESCRIPTION Conceptual (Scoping Study) Prefeasibility

    HYDROLOGY

    Water Sources Estimated using regional data Preliminary hydrology stud

    Water Usage Factored plant volume and unit costs Required plant water volu

    Dewatering Dewatering parameters identified Dewatering parameters es

    ENVIRONMENTAL

    SettingPreliminary evaluation of project setting for potentially significant environmental or

    permitting constraints for site data

    Preliminary evaluation o

    environmental and/or o

    potentially significant envi

    Data

    Collect and review all available, existing data for environmental studies assessments oraudits; regulatory inspections, waste handling practices, management plans, and all

    applicable environmental laws and regulations; no social, training or safety programs

    identified

    Collect and review av

    environmental studies, as

    waste handling practices;

    regulations; plans; initiat

    programs identified

    EIS/EA None Draft EIS/EA initiated

    Reporting and Plans Conceptual plans for managing any identified environmental issues

    Preparation of environme

    erosion control plan; co

    geotechnical stability rev

    mitigation plan; preliminar

    Monitoring Not considered Outline of a site environm

    PERMIT REQUIREMENTS General overview Comprehensive overview

    DESCRIPTION Conceptual (Scoping Study) PrefeasibilitPROJECT DEVELOPMENT SCHEDULE

    Development Plan Development period and mine life estimatedDevelopment period and

    schedule set

    Project Master Schedule Estimated showing start and end of construction; Gantt bar chart of major work elements

    Gantt bar chart with ov

    QA/QC program outline

    execution plan

    CAPITAL COST ESTIMATE

    Basis

    Civil Structural

    Architectural

    Piping/HVAC

    Electrical

    Instrumentation

    Construction Labor

    Construction Labor Productivity

    Material Volumes/Amounts

    Material/Equipment Pricing

    Infrastructure

    Contractors Included in unit cost or as a percentage of total cost Percentage of direct cost

    EPCM Percentage of estimated construction cost Percentage of detailed co

    Pricing FOB mine site including all taxes and duties FOB mine site including a

    Owner's Historic estimate Estimate from experience

    Environmental Compliance Factored from historic experience Estimate from experience

    Escalation Typically not considered Based on company's curr

    Working Capital Factored from historic experience Estimate from experience

    Accurac +-50%

    Contingency 25%

    OPERATING COST ESTIMATEBasis Order-of-Magnitude estimate Estimates for unit rates an

    Operating Quantities General Quantified by estimates w

    Unit Costs Historic unit costs and factoring Estimates for labor, powe

    Accuracy +/- 35%

    ECONOMIC EVALUATION

    Financial Anal sis Preliminary assessment of principal economic parameters Assessment of the princip

    Commodity Price(s) Estimated based on 3yr average minimum Estimated based on 3yr a

    Royalties and Taxes Preliminary assessment Preliminary analysis

    Smeltin Refinin and Frei ht Historic data Budgetary quotes

    Cash Flow Analysis Simple cash flow Preliminary cash flow

    Economic Criteria Simple IRR and NPV (pre- and after-tax) Preliminary IRR and NPV

    Sensitivity Analysis Basic analysis to minimal amount of project variables Preliminary to selected ke

    RISK EVALUATION

    Risk Assessment General overview Fatal flaw analysis

    Project Preliminary overview of geology, engineering, and environmental Preliminary environmentageology and engineering

    Note 1: Internationally Recognized Standards include:

    1. Canadian National Instrument 43-101 and 43-101 CP.

    2. Australiasian Code for Reporting of Mineral Resources and Ore Reserves - prepared by the Joint Ore Reserve Committed (JORC)

    3. U.S. Securities & Exchange Commission Industry Guide 7

    4. SME Guide for Reporting Exploration Information, Mineral Resources and Mineral Reserves

    Order-of-magnitude based historic data or factoringEstimates from historical

    volumes

    Minimum Report Contents for Engineering Studies (fuente Pinc