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Estimated site operating costs are at Cdn$68.46 per tonne. Due to the seasonal nature of the project, SRK Consulting envisions that it
may be difficult for the owner to fully supply all manpower each spring through an annual hiring campaign. For this reason, a
labour premium of approximately 14% was added to the operating costs, such that some funds would be available to utilize
contractor supplied labour as necessary.
Total capital costs are estimated at Cdn$61.8 million, exclusive of off-site owner’s costs and working capital. The
pre-production portion of capital is $60.3million. Included in this estimate is $9.2 million for the tailings dam. As i
ndicated above, SRK believes that further work should be performed on assessing alternate tailings dam locations and designs
which could result in a material decrease in the capital cost of the tailings facility.
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