VANCOUVER, BC, June 3, 2020 /CNW/ - Taseko Mines Limited
(TSX: TKO; NYSE American: TGB; LSE: TKO) ("Taseko" or the
"Company") is pleased to announce strong operating results at both
its Gibraltar Copper Mine and Florence Copper Project. Increased
health and safety protocols continue and there have been no
operational disruptions or known cases of COVID-19 at any of
Taseko's locations to-date.
Russell Hallbauer, Chief
Executive Officer and Director of Taseko, commented, "It has been a
little over two months since we adjusted our mine plan at
Gibraltar to respond to the lower
copper price environment as a result of COVID-19. The mine is
currently operating to the new plan and through the first five
months of the year has produced approximately 57 million pounds of
copper and nearly 900,000 pounds of molybdenum. Under the new plan
we had expected site spending to decline by at least US$0.40 per pound. Total operating costs (C1) for
April and May have averaged approximately US$1.30 per pound and cost deferrals in place
accounted for an additional US$0.10
per pound of cash savings. We continue to see lower input costs
across the full supply chain. Additionally, we just concluded a
spot tender at a TC/RC rate approximately 40% below the 2020
benchmark level as buyers need clean, high quality concentrate like
Gibraltar's. We expect lower
TC/RCs to continue due to a shortage of concentrate from ongoing
mine curtailments."
"Production guidance for 2020 remains unchanged at 130 million
pounds (+/-5%) with the expectation of being at the higher end of
the range after the strong first five months of the year. With the
current price of copper at roughly US$2.50 per pound, the highest price since its
rapid decline in mid-March, coupled with the weak Canadian dollar
and Gibraltar's low cost
structure, we are generating a healthy operating margin.
Of immediate importance, we have found opportunities by changing
the pit development sequencing and incorporating the Gibraltar pit after completion of the current
mining phase of the Granite pit. The Gibraltar pit hasn't been mined since the
1970s and is the lowest work index ore (softer ore) on the
Gibraltar property. Access to, and
processing of, this ore type will give major productivity and cost
improvements to the operation once fully developed and active,"
continued Mr. Hallbauer.
"At our Florence Copper Project, the test facility continues to
operate on a steady-state basis with no disruption to our
operation. PLS grade in the center recovery well (most
representative of the performance of the commercial
wellfield) has been stable at roughly two grams per liter since
November and recently the SX/EW plant producing at a rate of
approximately one million pounds of copper cathode per year, mainly
from the center recovery well.
We have not experienced any significant supply chain issues,
with all necessary feedstock materials available, allowing for
steady cathode production and regular sales. With the experience we
have gained over the last 18 months of operation at the test
facility, we are very confident in our ability to ramp up quickly
to full scale production once the commercial plant is operational,"
added Mr. Hallbauer.
"Permitting and financing processes are progressing. Our
expectation is that the draft Aquifer Protection Permit will be
issued by the state regulator imminently. After the draft permit is
issued there will be a 30-day public comment period and public
meetings before the final permit is approved.
Discussions regarding a joint venture with interested parties
are ongoing and we are about to resume more in depth discussions
with banks and other potential lenders regarding project
financing," concluded Mr. Hallbauer.
Russell Hallbauer
Chief Executive Officer and Director
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" within the
meaning of applicable Canadian securities legislation and the
United States Private Securities Litigation Reform Act of 1995
(collectively, "forward looking statements") that were based on
Taseko's expectations, estimates and projections as of the dates as
of which those statements were made. Any statements that express,
or involve discussions as to, expectations, believes, plans,
objectives, assumptions or future events or performance that are
not historical facts, are forward-looking statements.
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 include 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 title,
licenses and permits for development projects and project delays
due to third party opposition;
- our ability to comply with the extensive governmental
regulation to which our business is subject;
- 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;
- 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,
equipment failure or other events or occurrences, including third
party interference that interrupt the production of minerals in our
mines;
- the availability of, and uncertainties relating to the
development of, infrastructure necessary for the development of our
projects;
- our reliance upon key personnel; and
- uncertainties relating to increased competition and conditions
in the mining capital markets.
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, including the "Risk
Factors" included in our Annual Information Form.
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SOURCE Taseko Mines Limited