The following capital investment was required for an 110,000 TPD operation: Cost Items $ x 106 Property acquisition 118 Mine development 206 Mill, water supply, and tailings disposal area 383 Property improvements 55 Based on the development of similar properties, it can be assumed that the mine, mill, and property improvements can be scaled using the sixth-tenths factor. The property acquisition cost remains constant regardless of the operating tonnage. The new ore body will sustain any size operation up to 120,000 TPD.

a) Calculate and tabulate the total capital investment required for the entire property (the sum of the acquisition, mine, mill, and property improvements) for operating rates of 100,000, 110,000 and 120,000 TPD. Convert to $/TPD capital investment for the entire property at each operating rate and include in the table.

b) It is not the total tonnage treated, but the tons of copper produced and available for sale that is the determining factor in the profitability of an operation. Using the 110,000 TPD operating rate and assuming a 365 day per year operation and a copper content of 0.49% copper, calculate the total capital investment in $/annual ton of copper produced, assuming a copper recovery of 83.7%.