Taseko Min: Giant Gold Copper Deposit Advancing Towards Prod
1/21/99 16:2
99/01/21 Market News Publishing Inc. No: 000284
TASEKO MINES LTD ("TKO-V;TKOCF-Q")
- Giant Gold-Copper Deposit Advancing Towards Production Decision
Robert G. Hunter, Chairman of Taseko Mines Limited is pleased to
report that the Company is rapidly advancing its Prosperity Gold-Copper
Project in the Cariboo-Chilcotin region of British Columbia towards a
production decision. Taseko is completing a $7.0 million comprehensive
feasibility study in conjunction with Concentrated Exploration Limited
Partnership and has established with stakeholders an environmental
assessment review schedule that is expected to facilitate government
certification of the Prosperity Project during 1999.
Based on 143,945 metres (472,265 feet) of large diameter core drilling
in 326 holes, Independent Mining Consultants, Inc. has calculated a
mineable reserve (proven and probable) for the Prosperity Deposit of 631
million tonnes (695 million tons) grading 0.254% copper and 0.464 grams
gold per tonne (0.014 oz/ton). The reserve has a very high level of
continuity which provides for efficient open pit mining. The mineable
reserve contains 9.4 million ounces of gold and 3.5 billion pounds of
copper. Mine plans call for the mineable reserve to be mined and milled in
years 1 thru 16 of project life, followed by processing of low grade
stockpiles.
At the planned milling rate of 110,000 tonnes per day (40.15 million
tonnes per year) annual metal production in concentrate during the initial
10 years of the 21 year project life is schedule to average 460,000 ounces
of gold and 190 million pounds of copper. Gold production at this level
would rank Prosperity the largest gold mine in Canada.
//st
AVERAGE ANNUAL METAL PRODUCTION SCHEDULE
Production Period Recovered Metal in Concentrate
Year Million lbs Cu Ounces Au
1- 5 186 474,000
6-10 194 445,000
11-15 206 416,000
16-21 129 257,000
1-10 190 460,000
CANADA'S LARGEST GOLD MINES
RANKED BY 1997 GOLD PRODUCTION
Mine Gold Production 1997 Gold Reserves
Name Ounces Million Ounces
Williams 402,000 4.9
Golden Giant 362,000 2.6
Dome 329,000 1.8
Campbell 325,000 2.2
PROSPERITY 460,000* 9.4
* Indicates Prosperity's comparative average annual gold output
when in production.
//et
"We have some of Canada's best and brightest mine planners working
around the clock on the advancement of this exciting project and more than
45,000 professional hours are being dedicated to a detailed Prosperity
Project Feasibility Study," said Taseko President and Chief Executive
Officer, Robert A. Dickinson. Kilborn Engineering, a subsidiary of SNC
Lavalin, one of North America's oldest and most respected full-service
mining and mineral processing consulting groups is spearheading the final
feasibility study for the Prosperity Project. Kilborn and SNC Lavalin have
earned a strong reputation with financial institutions around the world for
excellence in mining feasibility and construction management. Other
acknowledged independent experts consulting to the Prosperity Project
include: Ian Hayward International Ltd.; Independent Mining Consultants
Inc.; Knight Piesold Ltd.; Lakefield Research; Melis Engineering Ltd.; and
Triton Environmental Consultants Ltd.
The Prosperity Project will use conventional mining and milling
technology and is being designed to utilize the economies of scale, with
attendant high productivities and low unit operating costs, to achieve
sustainable, high quality, long life production and profitability. Taseko
recently signed a Cooperative Resource Development Protocol with the
Government of British Columbia to develop terms and conditions for the
potential supply of electrical power at a preferred rate to the Prosperity
Project, pursuant to its 'Power for Jobs' initiative to utilize surplus
hydroelectric power. The goal of both parties is to conclude an
arrangement by March 31, 1999.
Taseko is also reporting significant progress in the harmonized
federal-provincial environmental review of the Prosperity Project. Taseko
is expected to submit its final Comprehensive Project Study Report to the
governments of British Columbia and Canada in mid' 1999, paving the way for
certification of the Project. At the Company's extensive public meetings
in the nearby community of Williams Lake, the vast majority of local
stakeholders are expressing their overwhelming support for the mine
development proposal.
"Given the significant world-class internal and external resources
working on the project, and the public and political support for its
development, we fully expect that Prosperity will soon take its place among
the most important mineral resource developments in Canadian history,"
Dickinson said.
The Prosperity Deposit is located in the most efficient and productive
open pit mining region in the world, in close proximity to a skilled
workforce and excellent highway, railway and energy infrastructure. The
operating cost per ounce of gold produced at Prosperity is expected to be
in the lowest quartile of world gold mine production costs due to the
opportunity for the Project to take advantage of the economies of scale
available at a throughput rate of 110,000 tonnes per day; modern
mining/processing technologies; flexible two metal price hedging
strategies; and high copper by-product credits.
Taseko Mines Limited is a British Columbia public company with 17.2
million common shares issued with shareholders located in Canada, United
States, and Europe. Taseko shares are quoted in the United States on the
NASDAQ National Market System (TKOCF) and trade in Canada on the Vancouver
Stock Exchange (TKO).
TEL: (604) 684-6365 Robert G. Hunter, Chairman
FAX: (604) 684-8092
TOLL FREE: 1 800 667-2114
______________________________________
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-0- (CMN) Jan/21/ 99 16:02 |
