guesstimation on the revised cost

Since we know that URL has resized the project to process 4mtpa of ore from 8mtpa initially planned...

it'll have a significant effect not just on the pre-strip cost but also the cost of processing plant, on site infra , mobile equipment fleet and etc.

- pre-strip cost : might be nearly halved since the processing capacity gone down from 8mt to 4mt.

- mobile equipment fleet : equipment needed might down by 50%?

- on site infra structure cost : initially planned to hire 350 employee during the construction phase and 200 during the production. and therefore needed to build on site village big enough to accomodate upto 350. the reduction in processing capacity will have a huge effect on the number of employees and the size of the on site village.

- processing plant : from 8mtpa to 4mtpa... $$ saved.

in short, i'm expecting to see $20m save on the pre-strip, $20m on the mobile equipment, $15m on on-site infrastructure, $50m save on the processing plant and so on.. and comes up with something around $150m for the plant and $50m for other items.

and then would it make the roseby more attractive? good enough to get the debt finance approved?

who knows..
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15 September 2006

Process Plant 138,199,000
On site Infrastructure 37,490,000
Owners Costs 15,770,000
Contingency 22,748,000
EPCM 34,236,000
Sub Total Plant 248,443,000
Mobile Equipment Fleet 47,970,000
Pre strip 41,370,000
Total 337,783,000
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EIS submitted 18/4/07
Employment
The project is expected to directly employ some 350 people during the construction phase reducing to
about 240 during operations.
The long-term requirements of this camp will be to house 200 staff. Other facilities to be constructed
during this period include the kitchen and dining facilities, recreational facilities and administration
offices.
The construction camp requires the following equipment and materials:
• Portable accommodation units – 200 will be motel style with en-suites and the other 150
will be single rooms serviced by shared bathroom facilities; and
• Portable sewage treatment plant.


The mining fleet is expected to be as follows:
• 180T excavators (2) and 125T excavators (2);
• 150T haul trucks (10);
• Front end loaders, 992 (2);
• Track dozers, D375 (3);
• Graders (2);
• Water trucks (2);
• Drills (2); and
• 4WDs (8).
The following additional equipment will be required outside of the treatment plant:
• Lighting towers (diesel) – 4 per operating pit;
• Dewatering pumps – up to 23 per pit (30kW each diesel engine drive) depending on water
levels; and
• Tailings water return pump – 1 off (diesel engine drive).

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QUARTERLY ACTIVITY REPORT
FOR THE PERIOD ENDED
30 JUNE 2007

Como Engineers have
been commissioned to estimate the capital and operating costs of a treatment
plant capable of treating a blend of 4 million tonnes per annum of sulphide and
oxide ore The result of this is expected to be a lower strip ratio and lower capital
cost operation.