VANCOUVER, May 5, 2015 /PRNewswire/ - Taseko Mines Limited
(TSX: TKO; NYSE MKT: TGB) ("Taseko" or the "Company") has completed
an updated mine plan for Gibraltar
featuring a 50% decrease in strip ratio. This new mine plan is a
result of a detailed, six-month engineering study and forms the
basis of an updated NI 43-101 compliant reserve.
Highlights of the mine plan are:
- 749 million tons grading 0.272% copper equivalent*.
- Recoverable copper of 3.3 billion pounds and 62 million pounds
of molybdenum.
- Annual production of approximately 138 million pounds of copper
and 2.6 million pounds of molybdenum at a milling rate of 85,000
tons per day.
- 24 years of operation, at a milling rate of 85,000 tons per
day.
- Average strip ratio decreased to 1.9:1 (from 4.3:1).
- Copper cut-off decreased to 0.15% (from 0.20%)
Russell Hallbauer, President and
CEO of Taseko, stated, "After a year of operating an upgraded and
modernized Gibraltar at capacity,
we have gained a thorough understanding of Gibraltar's cost structure and capabilities,
both in the mine and mill. While our milling costs have declined
due to technology enhancements, mining costs have increased from
historical levels due to fuel, labour, parts as well as haul
distance. The new mine plan takes these factors into account and
focusses on reducing tons mined and maximizing profitability on a
cost per ton milled basis. The lower strip ratio results in a
significant decrease in mining costs and total cost per ton milled,
compared to operating at a 0.20% copper cut-off, more than
offsetting the reduced average copper grade. To put this in
perspective, every point of strip ratio is equal to approximately
31 million tons of waste that does not need to be mined annually,
and at $1.85 per ton mined, amounts
to roughly $57 million of annual
savings. While optimized mine scheduling isn't yet finalized, we
expect cost per ton milled (including mining costs, milling costs
and site G&A) in the new mine plan to remain at a level similar
to today, approximately C$10.00."
Mr. Hallbauer added, "Simply put, the new mine plan will
contribute to lower costs and higher cash flows over its long mine
life. At today's metal prices and Canadian dollar exchange rate,
based on the average strip ratio and grade in the new mine plan, we
believe Gibraltar could generate
approximately $100 million of annual
operating profit. The leverage to the price of copper is
significant and a 10% increase in metal prices would lift cash flow
by more than 50%."
The reserve evaluation used a 0.15% copper cut-off,
incorporating a $2.75/lb copper and a
0.85 C$/US$ foreign exchange rate pit
shell design. The result is a pit design that maintains current
reserve tonnage, mines 45% less total material and maintains the
ability to extract the remaining resource.
*Copper Equivalent is based on an 85% copper recovery,
US$3.00/lb copper price, 50%
molybdenum recovery & US$10.00/lb
molybdenum price.
Gibraltar's proven and probable
reserves as of December 31, 2014 are
tabulated below:
Gibraltar Mine
Mineral Reserves
As at December 31, 2014
At 0.15% copper cut-off
|
Pit
|
Category
|
Tons
(millions)
|
Cu
(%)
|
Mo
(%)
|
Connector
|
Proven
|
152
|
0.249
|
0.010
|
|
Probable
|
14
|
0.224
|
0.008
|
|
Subtotal
|
166
|
0.247
|
0.010
|
Gibraltar
|
Proven
|
152
|
0.247
|
0.009
|
|
Probable
|
111
|
0.233
|
0.008
|
|
Subtotal
|
263
|
0.241
|
0.008
|
Granite
|
Proven
|
164
|
0.268
|
0.009
|
|
Probable
|
15
|
0.248
|
0.007
|
|
Subtotal
|
179
|
0.267
|
0.009
|
Extension
|
Proven
|
50
|
0.333
|
0.002
|
|
Probable
|
1
|
0.262
|
0.001
|
|
Subtotal
|
51
|
0.331
|
0.002
|
Pollyanna
|
Proven
|
85
|
0.251
|
0.007
|
|
Probable
|
5
|
0.229
|
0.003
|
|
Subtotal
|
90
|
0.250
|
0.007
|
Total
|
|
749
|
0.256
|
0.008
|
The mineral reserves stated above are contained within the
following mineral resources:
Gibraltar Mine
Mineral Resources
As at December 31, 2014
At 0.150% copper cut-off
|
Category
|
Tons
(millions)
|
Cu
(%)
|
Mo
(%)
|
Measured
|
830
|
0.260
|
0.008
|
Indicated
|
262
|
0.236
|
0.007
|
Total
|
1092
|
0.254
|
0.008
|
The resource and reserve estimation was completed by
Gibraltar mine staff under the
supervision of Scott Jones, P.Eng.,
Vice President, Engineering and a Qualified Person under National
Instrument 43-101. Mr. Jones has verified the methods used to
determine grade and tonnage in the geological model, reviewed the
long range mine plan, and directed the updated economic evaluation.
The estimates used long term metal prices of US$2.75/lb for copper and US$11.00/lb for molybdenum and 0.85 C$/US$ foreign exchange. Mr. Jones has
reviewed this release. A technical report will be filed on
www.sedar.com.
Russell Hallbauer
President and CEO
No regulatory authority has approved or
disapproved of the information contained in this news release.
CAUTION REGARDING FORWARD-LOOKING
INFORMATION
This document contains "forward-looking statements" that were
based on Taseko's expectations, estimates and projections as of the
dates as of which those statements were made. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "outlook", "anticipate",
"project", "target", "believe", "estimate", "expect", "intend",
"should" and similar expressions.
Forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that may cause the Company's
actual results, level of activity, performance or achievements to
be materially different from those expressed or implied by such
forward-looking statements. These included but are not limited
to:
- uncertainties and costs related to the Company's exploration
and development activities, such as those associated with
continuity of mineralization or determining whether mineral
resources or reserves exist on a property;
- uncertainties related to the accuracy of our estimates of
mineral reserves, mineral resources, production rates and timing of
production, future production and future cash and total costs of
production and milling;
- uncertainties related to feasibility studies that provide
estimates of expected or anticipated costs, expenditures and
economic returns from a mining project;
- uncertainties related to the ability to obtain necessary
licenses permits for development projects and project delays due to
third party opposition;
- uncertainties related to unexpected judicial or regulatory
proceedings;
- changes in, and the effects of, the laws, regulations and
government policies affecting our exploration and development
activities and mining operations, particularly laws, regulations
and policies;
- changes in general economic conditions, the financial markets
and in the demand and market price for copper, gold and other
minerals and commodities, such as diesel fuel, steel, concrete,
electricity and other forms of energy, mining equipment, and
fluctuations in exchange rates, particularly with respect to the
value of the U.S. dollar and Canadian dollar, and the continued
availability of capital and financing;
- the effects of forward selling instruments to protect against
fluctuations in copper prices and exchange rate movements and the
risks of counterparty defaults, and mark to market risk;
- the risk of inadequate insurance or inability to obtain
insurance to cover mining risks;
- the risk of loss of key employees; the risk of changes in
accounting policies and methods we use to report our financial
condition, including uncertainties associated with critical
accounting assumptions and estimates;
- environmental issues and liabilities associated with mining
including processing and stock piling ore; and
- labour strikes, work stoppages, or other interruptions to, or
difficulties in, the employment of labour in markets in which we
operate mines, or environmental hazards, industrial accidents or
other events or occurrences, including third party interference
that interrupt the production of minerals in our mines.
For further information on Taseko, investors should review the
Company's annual Form 40-F filing with the United States Securities
and Exchange Commission www.sec.com and home jurisdiction filings
that are available at www.sedar.com.
SOURCE Taseko Mines Limited