Price $=1500$ $$/$oz

Mining cost $=1\mathrm{.}8$ $$/$ton

Milling cost $=16$ $$/$ton

Refining cost $=10$ $$/$oz

Annual fixed costs $=9\mathrm{.}25$ M$$/$a

Recovery $=88\%$

Dilution $=15\%$

Discount rate $=12\%$

Discounted price $300$ $$/$oz

Royalty $=5\%$

Mining capacity $=$ Unlimited Mt$/$a

Milling capacity $=1\mathrm{.}65$ Mt$/$a

Refining Capacity $=8500$ t$/$a

Using the information above,

$1.$ Calculate modified break$-$even COG considering $($a$)$ losses to royalty and $($b$)$ dilution of the deposit.

$2.$ For the obtained break$-$even COG in part $(1),$ after considering royalty and dilution, calculate:

$($a$)$ Quantity of ore $($kt$)$

$($b$)$ Quantity of waste $($kt$)$

$($c$)$ Stripping ratio

$($d$)$ Average grade $($oz$/$t$)$

$3.$ Considering the given milling capacity, calculate:

$($a$)$ Annual ore production, Qc$,($Mt$)$

$($b$)$ Annual quantity of mined material $($ore and waste$),$ Qm$,($Mt$)$

$($c$)$ Annual quantity of refined product, Qr$,($Mt$)$

$4.$ Calculate the mine life.

$5.$ Calculate the yearly cash flow using the following equation CF $=($s$-$r$)$Qr$-$mQm$-$cQc$-$f

$6.$ Calculate the NPV of the project