DEFAULT VALUESPush from Commercial Parameters to update|

Opportunity Cost of Grade

How opportunity cost declines as high-grade reserves deplete through the Life of Mine. Pit geometry forces sub-optimal grade mix early; as choices narrow, opportunity cost falls to zero.

Cu $/% per t
Zn $/% per t
Au $/g per t
Bottleneck kt/yr
Peak Opp Cost
$151/t
Year 1
$151/t
LOM Avg
$49/t
Zero Year
Y10
LOM
18 yr
Total NSR
$13548M

Opportunity Cost Curve

X = Life of Mine year. Y = $/t opportunity cost. Bars drawn to Y-axis scale.

$151/t$113$76$38$0
$151
$138
$118
$71
$52
$35
$82
$114
$103
$6
$14
Y1
Y2
Y3
Y4
Y5
Y6
Y7
Y8
Y9
Y10
Y11
Y12
Y13
Y14
Y15
Y16
Y17
Y18
■ High opp cost■ Moderate■ ZeroLOM avg $49/t

Grade Depletion — NSR Profile

Cyan bars = avg NSR mined per year. Green markers = best remaining NSR. The gap between them is the opportunity cost.

$409$307$205$102$0
Y1
Y2
Y3
Y4
Y5
Y6
Y7
Y8
Y9
Y10
Y11
Y12
Y13
Y14
Y15
Y16
Y17
Y18
Avg NSR mined— Best remainingGap narrows = opp cost declines

TOC Amplification — Throughput Scenarios

Higher throughput = steeper opp cost decline = NPV pulled forward. Lower throughput = sustained high opp cost.

kt/yr
kt/yr
kt/yr
$151/t$113$76$38$0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
2.0Mtpa: 26yr LOM, peak $151/t3.0Mtpa: 18yr LOM, peak $151/t4.0Mtpa: 13yr LOM, peak $151/t

Reserve Blocks by NSR (ranked)

$409$307$205$102$0
$409
$315
$291
$280
$258
$252
$201
$115
Gold Stringer
Cu Stringer
HG Zinc Massive
Cu Primary Deep
Supergene Oxide
Mixed Transition
MG Zinc Dissem
LG Zinc Marginal
Supergene
CuStringer
CuPrimary
LGZinc
MGZinc
HGZinc
GoldStr
Mixed

Year-by-Year Opportunity Cost

YrTput ktCum ktDepl%Avg NSRBest AvailOpp CostBlocks
Y13,0003,0006%$258$409$151
Supergene 3000kt
Y23,0006,00012%$271$409$138
Supergene 1800ktHG Zinc Ma 1200kt
Y33,0009,00017%$291$409$118
HG Zinc Ma 3000kt
Y43,00012,00023%$338$409$71
HG Zinc Ma 1800ktGold Strin 1200kt
Y53,00015,00029%$357$409$52
Gold Strin 1800ktCu Primary 1200kt
Y63,00018,00035%$280$315$35
Cu Primary 3000kt
Y73,00021,00041%$233$315$82
Cu Primary 1200ktMG Zinc Di 1800kt
Y83,00024,00046%$201$315$114
MG Zinc Di 3000kt
Y93,00027,00052%$212$315$103
MG Zinc Di 2700ktCu Stringe 300kt
Y103,00030,00058%$315$315$0
Cu Stringe 3000kt
Y113,00033,00064%$315$315$0
Cu Stringe 3000kt
Y123,00036,00070%$309$315$6
Cu Stringe 2700ktMixed Tran 300kt
Y133,00039,00075%$252$252$0
Mixed Tran 3000kt
Y143,00042,00081%$252$252$0
Mixed Tran 3000kt
Y153,00045,00087%$252$252$0
Mixed Tran 3000kt
Y163,00048,00093%$238$252$14
Mixed Tran 2700ktLG Zinc Ma 300kt
Y173,00051,00099%$115$115$0
LG Zinc Ma 3000kt
Y1870051,700100%$115$115$0
LG Zinc Ma 700kt

Cut-Off Grade / NSR Value Analysis

Blocks below the NSR cut-off are marginal or sub-economic. Hover any value for audit trail.

NSR Cut-Off $/t3 levels:
Above Cut-Off ($37/t)
8 blocks / 51.7Mt
Avg NSR: $262/t | 100% of reserve
Below Cut-Off ($37/t)
0 blocks / 0.0Mt
Avg NSR: $0/t | 0% of reserve
BlockOre TypeOre ktNSR $/tvs Cut-OffStatus
Gold StringerGoldStr3,000$409+$372ECONOMIC
Cu StringerCuStringer9,000$315+$278ECONOMIC
HG Zinc MassiveHGZinc6,000$291+$254ECONOMIC
Cu Primary DeepCuPrimary5,400$280+$243ECONOMIC
Supergene OxideSupergene4,800$258+$221ECONOMIC
Mixed TransitionMixed12,000$252+$215ECONOMIC
MG Zinc DissemMGZinc7,500$201+$164ECONOMIC
LG Zinc MarginalLGZinc4,000$115+$78MARGINAL
Marginal Block: LG Zinc Marginal at $115/t (just above $37/t cut-off). This block is most sensitive to metal price or cost changes.

Reserve Blocks

BlockPitOre TypeOre ktCu%Zn%AuNSRYr
$258
$280
$291
$201
$315
$409
$252
$115

Sched Yr = earliest year this block becomes accessible (pit geometry, stripping). NOT NSR ranking — reflects physical mining constraints.

OPPORTUNITY COST OF GRADE · TOC AMPLIFICATION · PRACTICAL SCHEDULE · GRADE DEPLETION
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