Projects
INVESTORKIT
Resource & Economics
Financial Model Results
| Wellgreen PEA Economic Model - First 24 Years of Production* | ||||||
| PEA Based Case Metal Prices - 20% (Base Case Metal Prices = LME trailing 3-year average price at July 6, 2012) | Pre-tax NPV(8% discount rate) | $973M | ||||
Pt $1,270.38/oz Pd $465.02/oz Au $1,102.30/oz | Ni $7.58/lb Cu $2.85/lb Co $12.98/lb | Pre-tax IRR (100% equity) | 20% | |||
| Average annual pre-tax cash flow | $205M | |||||
*PEA model head grades smoothed by reducing head grades 10% in 2025, 10% in 2027, 40% in 2028, 20% in 2030, 15% in 2034 and 10% in 2037. The 2012 Wellgreen PEA is preliminary in nature, in that it includes Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the 2012 Wellgreen PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
| PEA Update - 2014 | |
| Staged production: higher grade, lower CAPEX start-up operation | |
| Metallurgy: improved PGM recovery rates | |
| Energy: LNG - reduction in power cost vs. diesel assumption | |
| Rare PGMs: potential inclusion in economics |
| Wellgreen Economic Model Output - Based on August 2012 PEA | |||||||
| Mill throughput | 32,000 tpd | Mine Life | 37 years | ||||
| Initial capital expenditures | $863M | Average strip ratio | 2.57:1 | ||||
| Metals Payable | Pt Eq. (koz) | Pt (koz) | Pd (koz) | Au (koz) | Ni (Mlbs) | Cu (Mlbs) | Co (Mlbs) |
| Average annual - first 24 years | 138.5 | 68.9 | 92.4 | 41.3 | 50.4 | 59.1 | 3.5 |
| Total - first 24 years | 3,325 | 1,654 | 2,217 | 990 | 1,209 | 1,420 | 84 |
| Average annual - life of mine | 118.1 | 60.3 | 80.8 | 32.5 | 45.2 | 50.9 | 3.1 |
| Total - life of mine | 4,369 | 2,232 | 2,989 | 1,203 | 1,671 | 1,885 | 114 |
Pitshell
Metal | Indicated | Inferred |
|---|---|---|
Nickel (Ni) | 0.15 Billion lbs. | 2.06 Billion lbs. |
Copper (Cu) | 0.18 Billion lbs. | 2.16 Billion lbs. |
Cobalt (Co) | 10.24 Million lbs. | 126.83 Million lbs. |
Platinum (Pt) | 0.23 Million oz. | 2.76 Million oz. |
Palladium (Pd) | 0.27 Million oz. | 3.79 Million oz. |
Gold (Au) | 0.15 Million oz. | 1.48 Million oz. |
PGM+Gold | 0.65 Million oz. | 8.03 Million oz. |
Based on “Wellgreen Project Preliminary Economic Assessment, Yukon, Canada” dated August 1, 2012 by Wardrop; resource estimated at 0.2% NiEq cut-off, and the following metal recoveries: 67.6% for Ni, 87.8% for Cu, 64.4% for Co, 46% for Pt, 72.9% for Pd, and 58.9% for Au.
