MINING COST SERVICE

Cost Indexes

Cost indexes provide a mechanism for adjusting outdated cost information and for
tracking cost inflation in the mining industry. In Mining Cost Service, we provide a
variety of indexes for specific mining cost centers and provide some guidance for their
use. In addition to current and historic values, we have constructed a series of cost
indexes that represent the mining industry. These internally generated indexes provide
a reliable means for tracking the cumulative effect of cost inflation on mining projects.
Our exclusive MCS Canadian and United States indexes are composite indexes representing
the cost of developing and operating a typical mining and milling operation in either
Canada or the U.S. Separate indexes are listed for surface mine capital costs, surface mine
operating costs, underground mine capital costs, underground mine operating costs, mill
capital costs, and mill operating costs.
Composite proportions are determined from base model estimates using Sherpa Mine Cost
Estimating software. The surface mine base model is a typical truck/hydraulic excavator
operation mining 10,000 metric tons ore and 20,000 metric tons waste per day. The
underground mine base model is a 10,000 metric ton per day room and pillar operation
using conventional drilling and blasting, with shaft access and LHD and truck haulage. The
mill base model is a 10,000 metric ton per day single product flotation mill.

TABLE 4. MINING COST SERVICE (MCS) INDEXES TABLE 5. MINING COST SERVICE (MCS) INDEXES
Canada U.S.

SURFACE MINE UNDERGROUND MINE MILL SURFACE MINE UNDERGROUND MINE MILL
Capital Operating Capital Operating Capital Operating Capital Operating Capital Operating Capital Operating
Year Cost Index Cost Index Cost Index Cost Index Cost Index Cost Index Year Cost Index Cost Index Cost Index Cost Index Cost Index Cost Index
2013 100 100 100 100 100 100 2013 100 100 100 100 100 100
2014 101.7 106 103.8 107.6 102.3 107.3 2014 100.8 99.3 101.5 101.1 101.6 101
2015 102 94.8 101.2 99.5 101.8 101.7 2015 99.8 91.9 101.4 100.1 101 93.6

MONTHLY BREAKDOWNS FOR THE PREVIOUS 12 MONTHS IN EACH QTLY UPDATE MONTHLY BREAKDOWNS FOR THE PREVIOUS 12 MONTHS IN EACH QTLY UPDATE
Jan. 102.3 98.4 102.5 103.9 101.8 104.1 Jan. 100.1 92.6 101.7 100.9 100.9 95.8
Feb. 103.5 101.8 104.1 106.2 103.8 105 Feb. 100.1 93.6 101.8 101.5 100.7 95.5
Mar. 103.1 100.6 103.3 104.4 102.8 103 Mar. 100.1 93.8 101.8 101.7 101 95.2
Apr. 102.3 96.1 101.7 100.8 102 101.6 Apr. 99.8 91.8 101.2 99.6 101.1 93.3
May 102.1 94.4 100.8 98.2 102 100.8 May 99.9 93.2 101.4 100.1 101.3 93.9
June 101.9 93.2 100.4 96.9 101.3 100.3 June 99.8 92.3 101.3 99.7 101.3 95.3
2015

2015
July 101.1 92.3 100.1 97.1 100.7 102.7 July 99.9 92.4 101.5 100.2 101.3 95.3
Aug. 101.1 90 99.5 95.1 100.9 101.2 Aug. 99.8 91.8 101.4 99.8 101.3 94.5
Sept. 101.2 91 99.8 96 101 100.3 Sept. 99.6 91.7 101.7 101 100.7 93.8
Oct. 101.2 90.5 99.3 94.9 101.3 99.5 Oct. 99.7 90.7 101.3 99.2 101 91.4
Nov. 101.8 94.8 101.1 99.8 101.6 101.1 Nov. 99.6 90.6 101.2 99.3 100.7 90.5
Dec. 102.4 94.8 101.9 101.2 103.4 101.1 Dec. 99.3 87.7 100.9 98.2 100.1 89.1
 Costmine is the industry standard for Mining Cost Estimation data and insight, specializing in
equipment, labor, supply, and mine development costs, along with cost models.

MINING COST SERVICE

Mining Cost Service (MCS) is the industry's standard reference for Mining Cost Estimation data,
trusted by leading mining companies and consultants worldwide.

Mining professionals, government regulators and educators rely on MCS for

Pre-Feasibility Studies Appraisals
Budgeting and Planning Property Evaluations
Supply Chain and Purchasing Acquisition Due Diligence

The MCS contains cost data focused on

Equipment capital costs Cost indices and historical metal prices
Supplies U.S. and Canadian based labor, electric power and natural gas
costs
Transportation
Smelting and refining costs

The MCS contains Cost Models that provide capital and operating cost insights for
Surface mines Carbon-in-pulp
Underground mines Heap leaching
Placer mines Portable crushing operations
Milling, crushing, and concentrating

OUR OTHER TOOLS COST ESTIMATION SOFTWARE

Costmine provides a wide range of mining cost datasets to
support your estimation needs.
MINE AND MILL EQUIPMENT ESTIMATOR’S GUIDE
Capital costs and hourly operating costs for over 3,000 pieces
of equipment commonly found in mines and mills worldwide
LABOR COMPENSATION REPORTS
Stay apprised of the current wages, salaries and benefits for
the U.S., Canada, Africa and Mexico
Costmine has developed a set of proprietary Mining Cost
Estimation tools, underpinned with our industry standard cost
data. These tools are fully customizable and allow you to develop
an exceptional view of early stage capital and operating costs.
MINING CONSULTING
Our dedicated team of geologists and engineers bring decades
of international mining industry experience, spanning the full
mining cycle. Backed by an extensive and unparalleled in-house
cost database with 35+ years of history, this unique combination
allows us to conduct prefeasibility-level cost estimates and project
evaluations with unprecedented reliability and efficiency, allowing
you to make better mine project investment decisions.

GOLD HEAP LEACH COST ESTIMATING GUIDE

costmine
Key reference for estimating costs for mining, heap pad
construction, ore placing, gold recovery and reclamation
INFOMINE USA, INC.

RECLAMATION COST GUIDE 100 N Mullan Rd Ste 102

Spokane Valley, Washington
Costs and operations for reclamation activities in one handy
99206, USA
reference, consisting of a stand-alone sourcebook and a
guide to engineering standards and regulatory requirements  509 328 8023  509 328 2028

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