May 10, 2011
Vancouver, BC - Taseko Mines Limited (TSX: TKO; NYSE Amex: TGB) (“Taseko” or the “Company”) announces an 80% increase in mineral reserves from 445 million tons to 802 million tons at its Gibraltar Copper-Molybdenum mine near Williams Lake, British Columbia.
The reserve evaluation maintained a 0.20% copper cut-off, incorporating a $2.25/lb pit shell design across the 5 pits that make up the Gibraltar deposit. The last reserve update completed in 2008 used a $1.75/lb pit shell for the Gibraltar Extension and $1.50/lb for all other areas. This update will add roughly 1.8 billion lbs of recoverable copper to Gibraltar’s present reserve of 2.5 billion lbs for a total of 4.3 billion recoverable lbs. Molybdenum reserves increase from 30 million lbs to nearly 60 million lbs.
After the completion of Gibraltar Development Plan 3 (GDP3), by December 2012, the Gibraltar ore body will be capable of supporting mining operations of 30 million tons of ore per year, production capacity of 180 million lbs of copper and 2.2 million lbs of molybdenum.
Russell Hallbauer, President and CEO of Taseko, stated, “One of the key objectives for the Company over the past five years has been to unlock the value of Gibraltar by acquiring adjacent mineralized properties like the Gibraltar Extension undertaking additional drilling to more fully understand the geology of the deposit and ultimately putting that all together in a mine engineering design and financial plan that ensures the full economic potential of this large ore body can be unlocked for our shareholders.
The 4.3 billion lbs of recoverable copper that is going to be produced from Gibraltar over the next 27 years is a testament of fulfilling that objective.”
Mr. Hallbauer continued, “Gibraltar will provide significant economic benefit to our current 480 employees, as well as the additional 140 that will be hired once GDP3 is complete. In addition, the mine will make a large contribution to the local, provincial and national economies, as a result of the multiplier effect.”
Gibraltar’s proven and probable reserves as of March 31, 2011 are tabulated below:
Gibraltar Mine Mineral Reserves As at March 31, 2011 At 0.20% copper cut-off |
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Pit | Category |
Tons (millions) |
Cu (%) |
Mo (%) |
Connector | Proven | 45.1 | 0.30 | 0.012 |
|
Probable | 30.5 | 0.28 | 0.010 |
|
Subtotal | 75.6 | 0.29 | 0.011 |
Gibraltar East | Proven | 143.6 | 0.28 | 0.008 |
|
Probable | 71.6 | 0.27 | 0.010 |
|
Subtotal | 215.2 | 0.27 | 0.008 |
Granite | Proven | 216.8 | 0.32 | 0.010 |
|
Probable | 32.4 | 0.32 | 0.005 |
|
Subtotal | 249.2 | 0.32 | 0.009 |
Gibraltar Extension | Proven | 72.6 | 0.36 | 0.002 |
|
Probable | 31.1 | 0.30 | 0.002 |
|
Subtotal | 103.7 | 0.34 | 0.002 |
Pollyanna | Proven | 106.6 | 0.29 | 0.009 |
|
Probable | 51.2 | 0.28 | 0.010 |
|
Subtotal | 157.8 | 0.29 | 0.009 |
Total |
|
801.6 | 0.30 | 0.008 |
The mineral reserves stated above are contained within the following mineral resources:
Gibraltar Mine Mineral Resources As at March 31, 2011 At 0.20% copper cut-off |
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Category | Tons (millions) |
Cu (%) |
Mo (%) |
Measured | 670.0 | 0.31 | 0.008 |
Indicated | 280.3 | 0.29 | 0.008 |
Total | 950.3 | 0.30 | 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$2.25/lb for copper and US$14.00/lb for molybdenum and a foreign exchange of US$0.85/C$1.00. Mr. Jones has reviewed this release. A technical report will be filed on www.sedar.com. For further information on Taseko, please see the Company’s website at www.tasekomines.com or contact: Investor Relations - 778-373-4533, 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.
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:
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.