Study Guidelines

Project Phase Criteria

PROJECT PHASE VENTURE SCOPING STUDY PRE-FEASIBILITY STUDY FEASIBILITY DETAILED ENGINEERING
(ALTERNATIVE TERM) ANALYSIS CONCEPTUAL PRELIMINARY BASIC DEFINITIVE
ENGINEERING % COMPLETE 1% 3% 15% 20-30% 60%
1 GENERAL
Plant product and capacity Approximate Approximate Approved Fixed Fixed
Geographical location Usually known Usually known Approved Exact Exact
Plant Location Optional Optional Firm Frozen Fixed
Plant Description Required Required Approved Frozen Fixed
2 SITE
Topographical maps Approximate Approximate Detailed (small scale) Detailed (small scale) Detailed (large scale)
Soil/geology reports Preliminary Preliminary Preliminary Detailed Complete
3 GEOLOGY & MINE
Resource Status Potential Assessed Minimum Inferred Indicated Indicated/Measured Indicated/Measured
Probable/Proven (with Board
Reserve Status None None Preliminary Block model Probable/Proven
approval)
Resource / Reserve Analysis Potential Assessed Preliminary Preliminary Detailed Block Model Detailed Block Model
Geology Potential Assessed Preliminary Preliminary Detailed Detailed
Geo-technical Potential Assessed Preliminary Preliminary Detailed Detailed
Mine Plan None Sketch Only Preliminary Firm detailed – General optimized Final Year 1 & Firm thereafter
Mine Schedule Assumed Assumed Approximated Calculated – Detail Final Year 1 & Firm thereafter
Mine Equipment Assumed Assumed Budget quotes Written Quotes Quoted Specifically
Mine Services Assumed Assumed Sketch Plan Full Outlines Firm basis
4 PLANT & INFRASTRUCTURE
Site Plan Optional Optional Preliminary Frozen Fixed
Process P&ID’s None None None or Preliminary Preliminary Fixed P&ID’s
Process Flowsheets Optional Required Frozen Fixed Flowsheets Fixed Flowsheets
Equipment Flow Diagram Optional Required Approved Frozen Fixed
Process Automation None None Preliminary Approved Frozen
Energy Balance None None Preliminary Frozen Fixed
Material Balance None None Preliminary Frozen Fixed
Heat Balance None None Preliminary Frozen Fixed
Major Equipment Preliminary Preliminary Approved & Selected Frozen & Finalized Complete
Minor Equipment None None Preliminary Approved & Completed Complete
List of Motors None None Approved and selected Complete Complete
General arrangement drawings None/sketches None/sketches Approved Frozen Fixed
Detailed G.A.'s Mechanical None None Preliminary Approved Complete
Civil/structural drawings None/sketches None/sketches Sketches Buildings Sized and located Complete
Building Size Concepts Concepts Preliminary Final Complete
Piping drawings None None Preliminary Frozen Complete
Electrical drawings single line Optional Preliminary Preliminary and Defined Frozen Complete
IS/IT Management Systems None None Outlined Approved Complete
Major Equipment Vender Eng. None None Established Complete Manuals
Criteria None/basic criteria None/basic criteria Outline Criteria Prelim. Outline Spec/Criteria Approved Complete
 Study Guidelines

PROJECT PHASE VENTURE SCOPING STUDY PRE-FEASIBILITY STUDY FEASIBILITY DETAILED ENGINEERING
(ALTERNATIVE TERM) ANALYSIS CONCEPTUAL PRELIMINARY BASIC DEFINITIVE
ENGINEERING % COMPLETE 1% 3% 15% 20-30% 60%
Specifications None/basic criteria None/basic criteria Outline Criteria Prelim. Outline Spec/Criteria Approved Complete
5 ENVIRONMENTAL
Environmental Policy For Site Works For Site Works Outline Detailed Approved and in use
Environmental Plan Mgt System Planned Mgt System in place EHS plans in place EHS Plan Issued for use Approved and in use
High Level Assessment / Mitigations Detailed Assessment / Mitigations
Environmental Risks High Level Assessment Mitigation Strategies Developed Approved and in use
Strategies identified Strategies identified
EHS Compliance Compliant Compliant Compliant Compliant Compliant
Health and Safety Compliant Compliant Compliant Compliant Compliant
Energy Usage Minimized High Level Considerations Preliminary Considerations Preliminary Draft Detailed Approved and in use
Major issues known / In effect for
Emergency Preparedness Major issues known Outline and Listed Detailed and Underway Approved and in use
site works
Environ. Impact Assessment Regulatory Aspects Known Major issues known Major/Medium Issue Known Mitigation Strategies Developed Approved and in use
Preliminary Investigation/ Permits All Issue Understood /Permits
Environmental Permits Issued Requirements Identified Permits Issued Approved and in use
Scheduled Issued for Pre-development
Environmental Monitoring Plan KPI’s identified Specification Completed Data Collection Plan Draft Data Collection Plan issued Data Collection Implemented
Environ. Communications Plan Key Stakeholders Draft Plan Issued Plan Issued Plan Approved and in use
Statutory Requirements Major issues known Major issues known Outline and Listed Detailed and Underway Approved and in use
Closure Plan Options Identified Concept Level Closure Plan Verified External Auditable Managed
6 IMPLEMENTATION
Project Plan (Eng, Proc, Const) None None Outline identified Detailed schedule Required
Project Business Systems None None Outlined Complete Updated
Cash Flow Forecast None None Preliminary Complete Updated
Construction work plan None None Approved Scheduled Required
Construction contract configuration None None Outlined Approved Required
Construction schedule Preliminary Bar chart Approved Scheduled Required
Future work Identified Identified Bar chart Detailed & Scheduled Complete
Labour Rates Not evaluated Not evaluated Current best Current best Actual
Labour Productivity Not evaluated Not evaluated Assumed Evaluated Evaluated
Construction Equipment Not evaluated Not evaluated $ / Hour $ / Hour Quotes
7 CAPITAL COST ESTIMATE
Site visit by project estimator Unnecessary Unnecessary Required Required Required
Major Equipment Bids Unnecessary Current Similar Data Received & Analyzed PO Bid for Engineering Info. PO to Fabricator
Minor Equipment Bids Unnecessary Current Similar Data Budget Quotes Received & Analyzed Awarded
Prelim Quantities/Historical Pricing,
Site Preparation, Earthwork Not evaluated Not evaluated Preliminary Bid Prices
Bid & Possibly Award
Piling Factored/cost capacity Factored/cost capacity Preliminary/Parametric Quantities Estimated Quantities from Drawings Bid Prices
Parametric/Estimated Quantities
Building Foundations Factored/cost capacity Factored/cost capacity Preliminary/Parametric Quantities Bid Prices
from Drawings
Parametric/Estimated Quantities
Equipment Foundations Factored/cost capacity Factored/cost capacity Preliminary/Parametric Quantities Bid Prices
from Drawings
Parametric/Estimated Quantity Bids
Structural Steel Factored/cost capacity Factored/cost capacity Preliminary/Parametric Quantities Bid Prices
in if possible
Cladding Factored/cost capacity Factored/cost capacity Preliminary/Parametric Quantities Estimated Quantities from Drawings Bid Prices
Parametric/Prelim. Estimated
Architectural Factored/cost capacity Factored/cost capacity Preliminary/Parametric Quantities Bid Prices
Quantities from Drawings
 Study Guidelines

PROJECT PHASE VENTURE SCOPING STUDY PRE-FEASIBILITY STUDY FEASIBILITY DETAILED ENGINEERING
(ALTERNATIVE TERM) ANALYSIS CONCEPTUAL PRELIMINARY BASIC DEFINITIVE
ENGINEERING % COMPLETE 1% 3% 15% 20-30% 60%
Parametric/Prelim. Estimated
Mechanical – HVAC Factored/cost capacity Factored/cost capacity Preliminary/Parametric Quantities Bid Prices
Quantities from Drawings
Parametric/Prelim. Estimated
Mechanical – Piping Factored/cost capacity Factored/cost capacity Preliminary/Parametric Quantities Bid Prices
Quantities from Drawings
Prelim. Estimated Quantities from
Electrical Services Equip Factored/cost capacity Factored/cost capacity Preliminary/Parametric Quantities Bid Prices
Drawings
Prelim. Estimated Quantities from
Electrical – Other Factored/cost capacity Factored/cost capacity Preliminary/Parametric Quantities Bid Prices
Drawings
Labour rates Not evaluated Not evaluated Current area labour rates Current area labour rates Current area labour rates
Labour productivity Not evaluated Not evaluated Assumed productivity Evaluated Evaluated/Project Experience
Construction Equipment usage Not evaluated Not evaluated CE based on $/man-hour CE based on $/man-hour Spreads + rental rates
Material pricing Not evaluated Not evaluated Historical/Tel. Quotes Telephone quotes/Historical Pricing PO's w/detailed quotes
Subcontract pricing Not evaluated Not evaluated Historical Telephone quotes/Historical Pricing Contracts/written quotes
Contractors' EH&S Incl. in unit cost Incl. in unit cost % Of direct cost % Of direct cost % Of direct cost
Risk Analysis & Sensitivities Some Some Preliminary Done Complete
Escalation Often excluded Often excluded %/Year to mid-point %/Year to mid-point Detailed analyses
Contingency 35% 25% 20% 15% 15%
EPCM Costs % Of total costs % Of total costs % Of total costs % Of total costs Per contract/Forecast of hours
Multiple firm equipment quotes. Equipment on order, tendered or
Equipment Quotes and benchmark
Quotations / Tenders – Multiple material supply and firm quotes available. Tenders for
None – Benchmark Data None – Benchmark Data material supply and construction
Supporting the Estimates construction quotes and rates Material Supply and Construction
rates
checked. costs. Some contracts awarded.
Work Breakdown Structure Outline Outline Preliminary Defined Defined
Project Code of Accounts None None Preliminary Defined Defined
Escalation Strategy None None Preliminary Defined Defined
Foreign Exchange Strategy None None Preliminary Defined Defined
Target Accuracy +50% +30% +20% +15% +15%
8 OPERATING COST ESTIMATE
Basis of Estimate Outline Outline Preliminary Complete Complete
Staffing Levels Factorized Factorized Estimated Detailed Estimate Known
Labour Rates Factorized Factorized Calculated Known basis Known
Consumable/Utility consumption Factorized Factorized Estimated Estimated Estimated – Detailed
Maintenance supplies Factorized Factorized Factorized Estimated Estimated
Spares Factorized Factorized Factorized Factorized Some quotes
Labour Rates Assumed average Assumed average Separate categories Detailed Review Detailed Review/Updated to Actual
Labour Burden Assumed average Assumed average Calculated Calculated Calculated and updated to Actual
Detailed Calculations and updated to
Power & Water Unit Costs Data bank Data bank Budget Quotes Firm written quotes
Actual
Firm written quotes and updated to
Fuel Unit Costs Data bank Data bank Budget Quotes Firm written quotes
Actual
Firm written quotes and updated to
Supplies & Reagents Unit Costs Data bank Data bank Budget Quotes Firm written quotes
Actual
Transport and Logistics Factored % of total estimate Factored % of total estimate Preliminary Calculations Quotes and Calculations Detailed Calculations and Quotes
Working Capital Factored % of total estimate Factored % of total estimate Preliminary Calculations Detailed Calculations Detailed Calculations
Sustaining/Replacement Capital Factorized % Factorized % Preliminary Calculations Detailed Calculations Detailed Calculations and updated to
 Study Guidelines

PROJECT PHASE VENTURE SCOPING STUDY PRE-FEASIBILITY STUDY FEASIBILITY DETAILED ENGINEERING
(ALTERNATIVE TERM) ANALYSIS CONCEPTUAL PRELIMINARY BASIC DEFINITIVE
ENGINEERING % COMPLETE 1% 3% 15% 20-30% 60%
Actual
Detailed Review and updated to
Training Factored % of total estimate Factored % of total estimate Preliminary Calculations Detailed Review
Actual
Detailed Review and updated to
Ramp Up Factored % of total estimate Factored % of total estimate Preliminary Calculations Detailed Review
Actual
Firm written quotes and updated to
Insurances Factored % of total estimate Factored % of total estimate Budget Quotes Firm written quotes
Actual
Detailed Review and updated to
Escalation Factored % of total estimate Factored % of total estimate Preliminary Calculations Detailed Review
Actual
Detailed Review and updated to
Foreign Currency Provisions Factored % of total estimate Factored % of total estimate Preliminary Calculations Detailed Review
Actual
Target Accuracy ± 50% ± 30% ± 20% ± 15% ± 10%

General Notes
The estimate classes should not be considered absolute levels to be complied with in all categories of costs to achieve a certain class. Similarly, a particular class of estimate for Capital Costs may
be met, but for demonstrable reasons the Operating Cost Estimates may achieve a different class of estimate. The lowest class of estimate achieved for any area should decide the overall
class achieved.
Should one or more individual categories of costs not achieve the stated levels, but other categories exceed the stated level, then the overall class in that area may be achieved. The quality of definitions
and accuracy of the estimates shall be the determinants of the Class of Estimate achieved by the end of a defined Phase of activities.