June 26, 2008, Vancouver, BC - Taseko Mines Limited (TSX: TKO; AMEX: TGB) (“Taseko” or the “Company”) is pleased to announce that it has finalized negotiations for the purchase of the key mining and milling equipment required for the Phase III expansion at its 100% owned Gibraltar copper-molybdenum mine.
The Company has entered into binding agreements to purchase two Bucyrus 495 mining shovels, a Bucyrus 49R production drill, four 240 ton Terex haulage trucks and a 28-foot semi autogeneous grinding (“SAG”) mill, which is of sufficient size to process an additional 30,000 tons of Gibraltar ore per day.
The mining equipment is scheduled to be delivered and operational as follows: The trucks in late 2008, one shovel and drill in the spring of 2009, and the second shovel in late 2009. The SAG mill and motors will arrive at the Gibraltar site in May of 2010 for commissioning by August 2010.
Russell Hallbauer, President and CEO of Taseko stated, “We are very pleased to have completed these transactions. Bucyrus committed to an early delivery schedule for the shovels and drill, which will allow us to properly sequence mine development prior to the commissioning of the additional concentrator capacity in 2010. Delivery times for both mining and milling equipment continues to be a problem for many mine developers and this is having a dramatic affect on project time lines and completion dates. With these purchases, we have eliminated any such delays. Since the Phase III expansion requires a relatively small SAG mill, delivery time has been reduced to 20 months from the industry average of 40 months.
The expedited delivery schedule will ensure Gibraltar’s production capacity will be increased to 85,000 tons per day by the fourth quarter of 2010, allowing us to capitalize on forecasted high copper prices.”
Mr. Hallbauer continued, “A key component to the Phase III expansion is a $20 million upgrade to the molybdenum circuit, which is expected to be operational by the summer of 2009. With the upgraded molybdenum circuit, significantly better performance will be achieved, with average molybdenum production increasing to 3.5 million pounds annually.”
For further details on Taseko and its properties, please visit the Company’s website at www.tasekomines.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.
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 our ability to complete the mill upgrade on time estimated and at the scheduled cost;
- 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 or ongoing 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.
Back to the News Releases page