VANCOUVER, BC,
March 30, 2022 /CNW/ -
Taseko Mines Limited (TSX: TKO) (NYSE MKT) (TGB; LSE: TKO)
("Taseko" or the "Company") is pleased to announce a new 706
million ton proven and probable sulphide reserve for the Gibraltar
Mine, a 40% increase as of December 31,
2021. The new reserve estimate allows for a significant
extension of the mine life to 23 years with total recoverable metal
of 3.0 billion pounds of copper and 53 million pounds of
molybdenum.
Highlights from the new reserve:
- 706 million tons grading 0.25% copper
- Recoverable copper of 3.0 billion pounds and 53 million pounds
of molybdenum
- 23 year mine life with average annual production of
approximately 129 million pounds of copper and 2.3 million pounds
of molybdenum
- Life-of-mine average strip ratio of 2.4:1
- After-tax NPV8 of $1.1 billion
(75% basis) and free cash flow of $2.3
billion (75% basis) at a long-term copper price of
US$3.50 per pound1
Note: Taseko's 75% owned Gibraltar Mine is located north of
the City of Williams Lake in
south-central British Columbia.
All dollar amounts are in Canadian dollars (C$) and units are
imperial unless stated otherwise.
Stuart McDonald, President and
CEO, commented, "Gibraltar has
been our cornerstone asset since it was restarted 17 years ago, and
with the extended mine life we expect it will continue to generate
significant cashflow for many years to come. Over the last
two years there has been a dramatic shift in the long-term outlook
for copper, as the world accelerates the transition to a green
economy. With the improved market outlook, our engineering
team updated pit designs which have added 200 million tons of
additional reserves to the life of mine plan. The mine now
has a 23-year mine life with significant leverage to copper prices
going forward. At current copper prices, the mine NPV
increases to over $2 billion (75%
basis, after-tax)."
Richard Tremblay, Senior VP,
Operations, added, "The additional tons in the new reserve are at a
similar grade as Gibraltar's
previous reserves. While the life of mine strip ratio has increased
slightly, there has been no change to the mine plan over the next
five years where copper production is expected to average
approximately 128 million pounds per year. The updated pit designs
are based on a conservative long-term copper price of US$3.05 per pound (previously US$2.75 per pound), and incorporate material that
was previously classified as resources."
Mr. McDonald concluded, "Recent market activity and global
events continue to show the value of a long-life, steady-state
copper mine in a top mining jurisdiction. With our near-term growth
plans in Arizona, and longer-term
development projects in British
Columbia, Taseko is very well positioned to build a
North America based mid-tier
copper producer."
1 The NPV
and cash flow is based on copper prices of $4.25 (2022), $3.90
(2023) and US$3.50 per pound long-term, and a molybdenum price of
US$18 (2022), US$15 (2023) and US$13 per pound long-term and a
foreign exchange rate of 1.3:1 (C$:US$).
|
Gibraltar Mine
Sulphide Mineral Reserves as of December 31 , 2021 at 0.15% Copper
Cut-off
|
Category
|
Tons
(millions)
|
Cu Grade
(%)
|
Mo Grade
(%)
|
Cu Eq.
(%)
|
Proven
|
509
|
0.25
|
0.008
|
0.27
|
Probable
|
191
|
0.23
|
0.008
|
0.24
|
Ore
Stockpiles
|
6
|
0.18
|
0.007
|
0.20
|
Total Proven and
Probable
|
706
|
0.25
|
0.008
|
0.26
|
- Mineral Reserves follow CIM Definition Standards for Mineral
Resources and Mineral Reserves (2014).
- Sulphide Mineral Reserves are exclusive of Oxide Mineral
Reserves and are contained within Mineral Resources.
- Mineral Reserves are assumed to be extracted using open pit
mining methods and are based on US$3.05/lb Cu price, $12.00/lb Mo price, exchange rate of US$0.80=C$1.00,
metallurgical recoveries of 85% Cu and 40% Mo for sulphide ore and
50% ASCu for oxide ore.
- A tonnage factor of 12ft3/ton has been applied for rock and
15ft3/ton for overburden and fill.
- Copper Equivalency based on US$3.50/lb price and 85% metallurgical recovery
for copper, and US$13.00/lb price and
50% metallurgical recovery for molybdenum. CuEq can be
calculated using the formula CuEq% = Cu% + Mo% x 2.185.
- Numbers may not add due to rounding.
Gibraltar Mine
Mineral Resources as of December 31 , 2021 at 0.15% Copper
Cut-off
|
Category
|
Tons
(millions)
|
Cu Grade
(%)
|
Mo Grade
(%)
|
Cu Eq.
(%)
|
Measured
|
845
|
0.25
|
0.007
|
0.27
|
Indicated
|
370
|
0.23
|
0.007
|
0.25
|
Total Measured and
Indicated
|
1,215
|
0.24
|
0.007
|
0.26
|
Inferred
|
78
|
0.22
|
0.004
|
0.23
|
- Mineral Resources follow CIM Definition Standards for Mineral
Resources and Mineral Reserves (2014).
- Mineral Resources are reported inclusive of Mineral
Reserves.
- Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
- The Mineral Resource has been confined by a "reasonable
prospects of eventual economic extraction" pit using the following
assumptions: Cu price of US$3.50/lb,
Mo price of US$14.00/lb, exchange
rate of US$0.80=C$1.00, metallurgical recoveries of 85% for Cu
and 40% for Mo.
- A tonnage factor of 12ft3/ton has been applied for rock and
15ft3/ton for overburden and fill.
- Copper Equivalency based on US$3.50/lb price and 85% metallurgical recovery
for copper, and US$13.00/lb price and
50% metallurgical recovery for molybdenum. CuEq can be
calculated using the formula CuEq% = Cu% + Mo% x 2.185.
- Numbers may not add due to rounding.
Gibraltar Mine Oxide
Mineral Reserves as of December 31, 2021 at 0.10% ASCu
Cut-off
|
Category
|
Tons
|
ASCu
(%)
|
Proven
|
1
|
0.15
|
Probable
|
16
|
0.15
|
Ore
Stockpiles
|
0
|
0.15
|
Total Proven and
Probable
|
17
|
0.15
|
- Mineral Reserves follow CIM Definition Standards for Mineral
Resources and Mineral Reserves (2014).
- Oxide Mineral Reserves are exclusive of Sulphide Mineral
Reserves and are contained within Mineral Resources.
- Mineral Reserves are assumed to be extracted using open pit
mining methods and are based on US$3.05/lb Cu price, $12.00/lb Mo price, exchange rate of US$0.80=C$1.00,
metallurgical recoveries of 85% Cu and 40% Mo for sulphide ore and
50% ASCu for oxide ore.
- A tonnage factor of 12ft3/ton has been applied for rock and
15ft3/ton for overburden and fill.
- Numbers may not add due to rounding.
Qualified Persons and 43-101 Disclosure
This technical content of this news release has been reviewed
and approved by Richard Weymark,
P.Eng., MBA, Vice President, Engineering of Taseko. Mr. Weymark is
a Qualified Person under the provisions of National Instrument
43-101 published by the Canadian Securities Administrators.
The resource and reserve estimation was completed by Taseko and
Gibraltar Mine staff and contributing consultants under the
supervision of Richard Weymark, P.
Eng., MBA. Vice President, Engineering of Taseko and a Qualified
Person under National Instrument 43-101.
Additional information regarding data verification procedures,
known legal, political, environmental or other risks can be found
in the Technical Report dated March 30,
2022, titled 'Technical Report on the Mineral Reserve Update
at the Gibraltar Mine' which is available on SEDAR.
Note to United States Investors
This news release has been prepared in accordance with the
requirements of the securities laws in effect in Canada, which differ from the requirements of
United States securities laws.
Canadian reporting requirements for disclosure regarding mineral
properties are governed by National Instrument 43-101 - Standards
of Disclosure for Mineral Projects of the Canadian Securities
Administrators ("NI 43-101"). For this reason, information
contained in this news release regarding the Company's Gibraltar
Mine may not be comparable to similar information made public by
United States companies subject to
the reporting and disclosure requirements under the United States securities laws and the
rules and regulations thereunder.
For further information on the differences between the
disclosure requirements for mineral properties in the United States and NI 43-101, please refer
to the company's Annual Information Form, a copy of which has been
filed under Taseko's profile on SEDAR at www.sedar.com and the
company's Form 40-F, a copy of which will be filed on EDGAR at
www.edgar.com.
Stuart McDonald
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 about the future market price of copper and the
other metals that we produce or may seek to produce;
- changes in general economic conditions, the financial markets,
inflation and interest rates and in the demand and market price for
our input costs, such as diesel fuel, reagents, 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;
- uncertainties resulting from the war in Ukraine, and the accompanying international
response including economic sanctions levied against Russia, which has disrupted the global
economy, created increased volatility in commodity markets
(including oil and gas prices), and disrupted international trade
and financial markets, all of which have an ongoing and uncertain
effect on global economics, supply chains, availability of
materials and equipment and execution timelines for project
development;
- uncertainties about the continuing impact of the novel
coronavirus ("COVID-19") and the response of local, provincial,
state, federal and international governments to the ongoing threat
of COVID-19, on our operations (including our suppliers, customers,
supply chains, employees and contractors) and economic conditions
generally including rising inflation levels and in particular with
respect to the demand for copper and other metals we produce;
- inherent risks associated with mining operations, including our
current mining operations at Gibraltar, and their potential impact on our
ability to achieve our production estimates;
- uncertainties as to our ability to control our operating costs,
including inflationary cost pressures at Gibraltar without impacting our planned copper
production;
- the risk of inadequate insurance or inability to obtain
insurance to cover material mining or operational risks;
- uncertainties related to the feasibility study for Florence
copper project (the "Florence Copper Project" or "Florence Copper")
that provides estimates of expected or anticipated capital and
operating costs, expenditures and economic returns from this mining
project, including the impact of inflation on the estimated costs
related to the construction of the Florence Copper Project and our
other development projects;
- the risk that the results from our operations of the Florence
Copper production test facility ("PTF") and ongoing engineering
work including updated capital and operating costs will negatively
impact our estimates for current projected economics for commercial
operations at Florence Copper;
- uncertainties related to the accuracy of our estimates of
Mineral Reserves (as defined below), Mineral Resources (as defined
below), production rates and timing of production, future
production and future cash and total costs of production and
milling;
- the risk that we may not be able to expand or replace reserves
as our existing mineral reserves are mined;
- the availability of, and uncertainties relating to the
development of, additional financing and infrastructure necessary
for the advancement of our development projects, including with
respect to our ability to obtain any remaining construction
financing potentially needed to move forward with commercial
operations at Florence Copper;
- our ability to comply with the extensive governmental
regulation to which our business is subject;
- uncertainties related to our ability to obtain necessary title,
licenses and permits for our development projects and project
delays due to third party opposition, particularly in respect to
Florence Copper that requires one key regulatory permit from the
U.S. Environmental Protection Agency ("EPA") in order to advance to
commercial operations;
- our ability to deploy strategic capital and award key contracts
to assist with protecting the Florence Copper project execution
plan, mitigating inflation risk and the potential impact of supply
chain disruptions on our construction schedule and ensuring a
smooth transition into construction once the final permit is
received from the EPA;
- uncertainties related to First Nations claims and consultation
issues;
- our reliance on rail transportation and port terminals for
shipping our copper concentrate production from Gibraltar;
- 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 and mine closure and bonding
requirements;
- our dependence solely on our 75% interest in Gibraltar (as defined below) for revenues and
operating cashflows;
- our ability to collect payments from customers, extend existing
concentrate off-take agreements or enter into new agreements;
- 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 our mine, industrial accidents, equipment failure or other
events or occurrences, including third party interference that
interrupt the production of minerals in our mine;
- environmental hazards and risks associated with climate change,
including the potential for damage to infrastructure and stoppages
of operations due to forest fires, flooding, drought, or other
natural events in the vicinity of our operations;
- litigation risks and the inherent uncertainty of litigation,
including litigation to which Florence Copper could be subject
to;
- our actual costs of reclamation and mine closure may exceed our
current estimates of these liabilities;
- our ability to meet the financial reclamation security
requirements for the Gibraltar
mine and Florence Project;
- the capital intensive nature of our business both to sustain
current mining operations and to develop any new projects,
including Florence Copper;
- our reliance upon key management and operating personnel;
- the competitive environment in which we operate;
- the effects of forward selling instruments to protect against
fluctuations in copper prices, foreign exchange, interest rates or
input costs such as fuel;
- 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; and
Management Discussion and Analysis ("MD&A"), quarterly reports
and material change reports filed with and furnished to securities
regulators, and those risks which are discussed under the heading
"Risk Factors".
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