VANCOUVER, Jan. 16, 2017 /CNW/ - Taseko Mines Limited (TSX:
TKO; NYSE MKT: TGB) ("Taseko" or the "Company") is pleased to
announce that recently completed technical work on the Florence
Copper Project has resulted in a significant improvement in project
economics.
Russell Hallbauer, President and
CEO of Taseko, stated, "In addition to the permitting milestones
achieved over the past months, we are very pleased with the outcome
of the latest engineering work which has increased the net present
value (NPV) of the project to US$920
million. Contributing to the higher NPV is an 11% increase
in average annual copper production, combined with slightly lower
operating costs and pre-production capital. With annual copper
production of 81 million pounds and pre-production capital of
US$200 million, Florence Copper is
one of the least capital intensive copper projects in the
world."
Project Highlights:
- Pre-tax net present value of US$920
million at a 7.5% discount rate
- Pre-tax internal rate of return of 44% with a 2.3 year
payback
- Operating costs of US$1.10 per
pound LME grade cathode copper
- Total life of mine production in excess of 1.7 billion pounds
of copper
- Average annual production of 81 million pounds of copper for
the life of mine
- 21 year mine life
- Total pre-production capital cost of US$200 million
- Long-term copper price of US$3.00
per pound
"Two important parameters for any copper leaching process are
copper recovery and acid consumption," continued Mr. Hallbauer.
"The copper recovery estimate of 70% from the 2013 technical report
as well as the acid consumption estimate have both been confirmed
with the more detailed testing."
"As we continue to perform additional technical work on our
Florence Copper Project, the project is not only being de-risked,
but operational and environmental attributes which were already
very strong, are improving. It is our goal to commence construction
on the production test facility in 2017 and advance this project
towards being a second cash-flowing asset for Taseko," concluded
Mr. Hallbauer.
Since Taseko's acquisition of the Florence Copper Project, two
important project development initiatives have been finalized which
verify and expand upon the extensive technical work undertaken by
the previous owners. A two-year long in-series pressurized cell
leach test was completed. This test was designed to more closely
replicate in-situ leaching conditions and provide information on a
larger scale than previous leach tests. The results have verified
and greatly increased the confidence in the metallurgical input
data used to simulate the performance of the project once it
reaches production. In parallel with the leach test, an
optimization of the project well field development sequence was
performed. The entire project was then re-simulated and re-costed
using updated inputs including the verified leach performance
data.
The well field sequence developed for the optimized project plan
increases copper production in the first five years of operations
by 50%, compared with the previous project plan, and requires less
pre-production capital than previously estimated.
The changes to the development plan have also resulted in an
increase in the Florence Copper ore reserves. There was no
change to the mineral resources.
Mineral Reserves
(0.05% Total Copper
Cut-off)
Category
|
Tons
(millions)
|
Total Cu
(%)
|
Recoverable
Copper (B lbs)
|
Probable
|
345
|
0.36
|
1.7
|
The reserve estimate takes into consideration all geologic, well
field, process facility, and economic factors, and is stated
according to Canadian standards (NI43-101). (Under US standards no
reserve declaration is possible until a full feasibility study is
completed and financing and permits are acquired.)
The Mineral Reserves above are included in the following
Measured and Indicated Mineral Resources.
Mineral Resources
(0.05% Total
Copper Cut-off)
Category
|
Tons
(millions)
|
Total Copper
(%)
|
Total Copper
(B lbs)
|
Measured
|
296
|
0.35
|
2.1
|
Indicated
|
134
|
0.28
|
0.7
|
Total
|
429
|
0.33
|
2.8
|
The updated Mineral Reserves are based on engineering performed
by SRK Consulting incorporating the measured and indicated
resources established in 2010, metallurgical work completed by SGS
Inc. and T. McNulty and Associates, process facility designs by M3
Engineering as well as well field designs by Haley and Aldrich
Inc.
The content of this release was reviewed and approved by Dan
Johnson PE, Vice-President/General Manager for Florence Copper,
Inc., and a Qualified Person under National Instrument 43-101.
The NI 43-101 technical report documenting these results will be
filed on www.sedar.com within 45 days.
For further information on Taseko, please visit the Taseko
website at www.tasekomines.com or contact:
Brian Bergot, Vice President,
Investor Relations - 778-373-4533 or toll free 1-877-441-4533
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.gov and home jurisdiction filings
that are available at www.sedar.com.
SOURCE Taseko Mines Limited