1999-02-05_GENERAL DOCUMENTS - M1977493 (7)

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• 3.0 Results and Discussion • 3.1 Analysis of the First Revised Workbook (Comparable to DMG's M493- 4.WKB) From the first two pages of the Excel Worksheets ( "demo- costs- 10- 6 -97 "), it can be seen that DMG's method overestimated the actual work of demolition at the Storke Area by at least $1.1 million. As stated above in the Rationale section, the most significant difference can be explained by the fact that foundation demolition was covered in the building demolition costs when bid by contractors. Pages 3 through 14 of the Excel Workbook ( "demo- costs- 10- 6 -97 "), depict the calculations for a large part of Climax Mine buildings from crushers, shops, warehouses to tanks and storage facilities. Some of these structures have been demolished and reclaimed previously (eg. old mill control and dry, pre -con water tank, No. 2 mill substation, etc.) and have been deleted from the revised cost estimates. 3.2 Analysis of the Second Revised Workbook (Comparable to DMG's M493- 5.WKB) Similar to the procedures applied in the first revised workbook, a demolition cost of $0.13 per cu ft was used as a conservative basis for demolition of Climax Mine structures including the rubblizing of debris and burial of foundations in- place. This is a very generous number when compared to the actual field costs of $0.056 / cu ft at Horizon or $0.0257 / cu ft at Crystal Hill. Pages 1 and 2 of the Excel Worksheet ("demo-costs- M493-5-11-11-97") address cost revisions for the water management facilities and the old observatory. Page 3 of the Excel Worksheet ( "demo- costs - M493- 5- 11- 11 -97 ") is the asphalt parking lot and road section which has been revised, based on a recalculation of the asphalt surface areas using Autocad measurements and field- checked base maps. An extra sheet in the workbook labeled "asphalt" depicts the details of the individual asphalt- containing facilities whereby demolition is defined as either "rip and haul" or "bury in- place." ASI- RCC (the Storke reclamation contractor) projected a cost of $1.76 to $2.50 /sq yd for ripping and hauling off the Storke Dry asphalt parking lot (Frank Kern, personal communication, 11- 20 -97). Utilizing the $2.50/sq yd number, the total cost of demolition was estimated for the revised Autocad measurements. Page 4 addresses the demolition of cribbing and the conveyors. Kyle Ellis of Alternative Recycling (personal communication 11 -13 -97 re.orts that his experience at the Storke Area in 1997 indicates a cost of abou '.0.75 per cu y•. to remove and haul off the old cribbing timbers. Using this current figure, an re- calculating the volume of timbers, yields a revised cribbing removal cost as shown on page 4 of "demo-costsM493-5-11-11- 97." Incidentally, Alternative Recycling processed the timbers by grinding them for wood chips, but the grinding cost is not included in the $0:75 p re cu yd figure.