Mining Cost Service contains cost models for a variety of sizes and types of theoretical mining operations.

Following is a
listing of the models currently available.

36 surface mines:
production rates: 250 t/day to 80,000 t/day
stripping ratios 1:1 to 8:1

48 underground mines:
production rates: 200 t/day to 45,000 t/day
access methods: adit or shaft
stoping methods:
cut and fill
shrinkage
end slice
vertical crater retreat
sublevel longhole
room and pillar
sublevel caving
block caving

35 milling operations:
feed rates: 100 t/day to 80,000 t/day
flotation mills (1,2, or 3 concentrate products)
carbon-in-pulp mills
agitation leach mills

32 placer operations:
production rates: 100 to 1,000 t/day
mobile or stationary plans
stripping ratios: 1:1 to 8:1

6 gold heap leach models:

leach rates: 5,000 to 20,000 t/day
run-of-mine or crush-screen-agglomerate operations

Each of the models is developed from first principles based on typical mining criteria for rock densities, swell factors, drill
penetration rates, etc. Industry-standard estimating methods are used for equipment selection, personnel allocation, and
cost estimation. These models are invaluable for early order- of-magnitude estimates.

Following is an example of one of these models for your reference. This model will be maintained at this site permanently
and updated periodically. As you can see, these models provide a great deal of important information about equipment,
labor and supply requirements in addition to capital and operating costs. This model includes all labor, material, supply
and equipment operation costs incurred at the mine site, including supervision, administration and on-site management,
but it does not include exploration, permitting, or milling. A more complete list of items included or excluded can be found
in your Mining Cost Service Manual. The Manual also lists the wage and salary scales, supply prices, and other pertinent
information used to construct the model.

5,000 Tonne per Day Open Pit Mine Model

This mine is an open pit mine producing 5,000 tonnes ore and 5,000 tonnes waste per day. The total resource to be
mined is 18,715,000 tonnes. Ore is hauled 1,068 meters to an ore stockpile. Waste is hauled 535 meters to a waste
rock dump. Rock characteristics for both ore and waste are typical of those of granite or porphyritic material. Operating
conditions, wage scales, and unit prices are typical for western U.S. mining operations. The key design criteria; operating
schedule, equipment, personnel and supply requirements; and costs one listed below:

Last updated - November 2007

Production
Mine Type: Surface Mine
Stripping Ratio: 1:1
Ore Production: 5,000 tonnes per day
Waste Production: 5,000 tonnes per day

Haul Distance - Ore meters 1,068

Haul Distance - Waste meters 535
Total Resource tonnes 18,715,000

Hours per shift 10

Shifts per day 2
Days per year 312

Bench height - Ore meters 5.49

Bench height - Waste meters 8.53

Powder factor - Ore kg/tonne 0.28

Powder factor - Waste kg/tonne 0.23

Development
Preproduction Stripping tonnes 150,000
Haul Road Construction meters 1,603

Equipment
Hydraulic Shovels 1-4.5 cu.mt
Front-end Loaders 1-5.4 cu.mt
Rear-dump Trucks 5-36.3 tonne
Rotary Drills 1-17.15 cm
Bulldozers 4-125 kW
Graders 1-150 kW
Water Tankers 1-9,500 liter
Service/Tire Trucks 3-6,800 kg gvw
Bulk Trucks 1-450 kg/min
Light Plants 4-13 kW
Pumps 2-4 kW
Pickup Trucks 4

Buildings
Shop sq.meters 486
Dry sq.meters 221
Office sq.meters 383
Warehouse sq.meters 297
Anfo Storage Bin cu.meters 20

Hourly Personnel Requirements

Drillers 2
Blasters 2
Excavator Operators 4
Truck Drivers 7
Equipment Operators 9
Utility Operators 2
Mechanics 4
Laborers/Maintenance 8
----
Total Hourly Personnel 38
Salaried Personnel Requirements
Manager 1
Superintendent 0
Foreman 2
Engineer 1
Geologist 1
Supervisor 2
Technician 4
Accountant 0
Clerk 1
Personnel 0
Secretary 2
Security 1
------
Total Salaried Personnel 15

Primary Supply Requirements

Diesel Fuel liter/day 5,262
Electricity kWh/day 639
Powder kg/day 2,550
Caps #/day 22
Primers #/day 20
Drill Bits #/day 0.07
Det. Cord m/day 287

Cost Summary
Operating Costs
Supplies & Materials $/tonne ore $2.07
Labor $/tonne ore 1.96
Administration $/tonne ore 0.82
Sundry Items $/tonne ore 0.48
------
Total Operating Costs $5.33

Capital Costs
Equipment $8,066,100
Haul Roads 1,095,600
Pre-production Stripping 393,500
Buildings 1,632,700
Electrical System 63,600
Working Capital 1,258,200
Engineering & Management 2,025,300
Contingency 1,453,500
-----------
Total Capital Costs $15,988,500

Total per Daily Tonne Ore & Waste $1,599