TASEKO MINES LTD ("TKO-V;TKOCF-Q")
- Prosperity Scheduled To Become Largest Gold Mine In Canada
Robert G. Hunter, Chairman of Taseko Mines Ltd., is pleased to
announce that the Company is significantly advancing its 100% owned
Prosperity Gold-Copper Project located in south central British Columbia by
completing detailed open pit mine planning and mine production scheduling.
Based on 143,945 metres (472,265 feet) of large diameter core drilling
in 326 holes Independent Mining Consultants, Inc. has calculated a mineable
mineral reserve for the Prosperity Deposit of 633 million tonnes (698
million tons) grading 0.253% copper and 0.466 grams gold per tonne (0.014
oz/ton). The reserve has a very high level of continuity which provides for
efficient open pit mining and an overall life of mine waste to ore
stripping ratio of 1.89 to 1. The mineable reserve contains 9.49 million
ounces of gold and 3.53 billion pounds of copper, making Prosperity the
largest mineable resource of gold and copper in Canada.
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PROSPERITY DEPOSIT
MINEABLE MINERAL RESERVE
Reserve Grade Contained Metal
Million Million Billion Lbs Million Oz
Tonnes Tons Cu% Au g/t Tonne Au oz/Ton Copper Gold
633 698 0.253 0.466 0.014 3.53 9.49
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Pilot plant metallurgical and process programs, including bulk sample
testing of the Prosperity Deposit, completed at Lakefield Research Limited
have confirmed detailed process criteria for the Prosperity Project,
including copper and gold recovery into a copper-gold flotation
concentrate. Results from the 50 tonne pilot plant program averaged 90%
copper recovery and 75.6% gold recovery producing a 25% copper concentrate
containing 38.9 grams gold per tonne (1.13 ounces per ton) and 92 grams
silver per tonne (2.68 ounces per ton).
Independent Mining Consultants, Inc. is now completing a mine plan and
a mine production schedule based on a Cdn $5.25 per tonne net smelter
return cut-off and seven mining phases. The final open pit has an oval
shape with a maximum diameter of 1950 metres. The mine schedule provides
for a 32.9 million tonnes per year uninterrupted flow of direct mill feed
and a relatively constant removal of waste rock over a 19.3 year period
followed by 6 years of milling lower grade stockpiled material. During the
25.3 year milling period, mill feed is processed at the rate of 90,000
tonnes per day by two parallel grinding lines followed by bulk sulphide
flotation, regrind and rougher/scavenger flotation, cleaner flotation and
concentrate dewatering. At a milling throughput rate of 90,000 tonnes per
day, metal production is scheduled to range up to 416,000 ounces of gold
and 211 million pounds of copper annually.
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PROSPERITY PROJECT
METAL PRODUCTION SCHEDULE
Milling Period Milled Annual Production
Years Material Million Pounds Copper Ounces Gold
1- 6 Mine Feed 154 394,000
7-15 Mine Feed 163 367,000
16-19 Mine Feed 211 416,000
20-25 Stockpiled Feed 90 179,000
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Production at the scheduled rate will rank Prosperity among the
largest gold producers in Canada with metal production levels emphasizing
the dual-product nature of the deposit where 51% of the value is in gold
and 49% is in copper.
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CANADA'S LARGEST GOLD MINES(1) RANKED BY 1997 PRODUCTION
1997 Statistics
Mine Name Gold Ore Reserves Gold Production
Million Ounces Ounces
Williams 4.9 402,000
Golden Giant 2.6 362,000
Dome 1.8 328,729
Campbell 2.2 325,043
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(1) Source 1997 Annual Reports - Teck Corporation, Battle Mountain Gold
Company, Placer Dome Inc.
The Prosperity Project will use conventional mining and milling
technology and hosts mineable reserves which exceed British Columbia's well
known open pit mines. The Project is being designed to utilize the
productivities of scale, with attendant low unit costs to achieve high
quality, long life production and profitability. Although the nearby
Highland Valley copper mine has negligible gold, it serves as a useful
benchmark mine example for Prosperity Project planning and costing.
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HIGHLAND VALLEY MINE(1)
Statistic 1993 1994 1995 1996 1997
Tonnes Milled Per Day 121,844 119,134 124,715 116,448 123,193
Copper Grade (%) 0.417 0.419 0.394 0.396 0.394
Mill Recovery (%) 87.3 91.3 91.0 91.2 91.6
Copper Production (Million Lbs) 346 355 348 328 346
Cost Per Tonne Milled (Cdn $) 4.86 5.03 5.12 5.72 5.51
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(1) Source 1997 Annual Report - Teck Corporation
Other benchmark examples of British Columbia open pit mines are listed
below:
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PRINCIPAL OPEN PIT MINES IN BRITISH COLUMBIA RESERVES AT START-TIP
Deposit Reserve Grade Contained Metal
Name Million Tons Cu% Au oz/Ton Billion Lb Cu Million Oz Au
Bell 128 0.48 0.010 1.2 1.3
Bethlehem 556 0.42 - 4.7 -
Gibraltar 360 0.37 - 2.7 -
Granisle 94 0.43 0.004 0.8 0.4
Huckleberry 100 0.51 0.002 1.0 0.2
Island 280 0.52 0.006 2.9 1.7
Kemess 221 0.22 0.018 1.0 4.0
Lornex 526 0.41 - 4.3 -
Policy 91 0.30 0.012 0.5 1.1
Similco 60 0.43 0.005 0.5 0.3
Valley 872 0.48 - 8.4 -
Median 221 0.43 0.004 1.9 0.9
PROSPERITY PROJECT MINEABLE MINERAL RESERVES
Prosperity 698 0.25 0.014 3.5 9.4
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The Prosperity Project is in the harmonized Federal/Provincial
studies are continuing for presentation, upon completion of a bankable
feasibility study, to the government Project Review Committee and to local
stakeholders in anticipation of meeting the mine certification requirements
of the citizens of the Cariboo-Chilcotin region and the British Columbia
and Canada Environmental Assessment Acts. Taseko has a Project Community
Office in the City of Williams Lake to facilitate the participation of all
Cariboo-Chilcotin residents in review of the Prosperity Project.
Gold-copper mining and processing at Prosperity will provide
substantial, long term, direct and indirect benefits to communities in the
CarIboo-Chilcotin, throughout British Columbia and across Canada. These
benefits include job creation, economic diversification, new markets for
local businesses, career and business opportunities for First Nations,
increased tax revenues, enhanced recreation and tourism potential and
significant local investment. The Project will provide all of the new jobs
promised by the successful Cariboo-Chilcotin Land Use Plan while at the
same time mine development will occur within land areas expressly set aside
by the Plan to foster economic development and job creation. After all the
construction, operation and reclamation plans are approved by the
provincial and federal governments, a direct workforce of 700 people will
be required. Annual wages averaging $70,000 per person are planned. The
Project will create an additional 1,500 indirect jobs in British Columbia.
Training and employment of First Nation and local community people will be
a priority, as will plans to ensure that regional recreational fishing
opportunities are maintained.
Proving up and confirming the attractive economics of the Prosperity
Gold-Copper Project has made Taseko Mines Limited a leading North American
development stage mining company. Concurrently with the feasibility and
environmental review programs which are underway, Taseko is continuing to
assess potential financial transaction strategies with modern, large scale
mine operators that will lead to responsible mineral resource development
and maximum shareholder value.
Common shares of Taseko Mines Limited are quoted on the NASDAQ
National Market System (Symbol TKOCF), and trade in Canada on the Vancouver
Stock Exchange (Symbol TKO). Taseko options trade on the Chicago Board
Options Exchange (Symbol TQA). There are 15,420,000 common
shares issued and outstanding.
TEL: (604) 684-6365 Robert G. Hunter Chairman
FAX: (604) 684-8092
TEL: (800) 667-2114 |
