Taseko Mines Limited (TSX: TKO;
NYSE Amex: TGB) ("Taseko" or the "Company") is pleased to
report that its Board of Directors has approved plans to proceed with a
further capacity increase at the Gibraltar Mine.
The Gibraltar Development Plan 3 (GDP3) will include the construction
of a 30,000 ton per day concentrator to complement the existing 55,000 ton
per day facility currently operating. The additional capacity will increase
Gibraltar's annual copper production by approximately 60 million pounds to 180
million pounds, at life of mine average grade.
An integral part of this project is a new molybdenum recovery
facility, increasing molybdenum metal production by over one million pounds
Capital costs for GDP3 are expected to be $235 million for the
concentrator and molybdenum plant and approximately $90 million for mining
equipment (all figures reflect 100% project number, Taseko owns 75%).
Based on an assumption of continuing strong metal prices, GDP3 is
anticipated to have an internal rate of return of approximately 30% with a
three year payback.
Russell Hallbauer, President and CEO of Taseko, commented; "GDP3
is a good example of management's continued focus on unlocking value of our
long-life assets. This project's capital cost intensity of $7,800 per ton of
daily mill capacity and $10,800 per ton including mine equipment is one of
the lowest of any project being developed globally, and is reflected in the
rate of return and quick payback.
A key component of this undertaking is our ability to execute quickly
and take advantage of the robust copper price environment. Over the past four
months our management team has been working on advanced engineering.
Construction will commence in early spring and commissioning of the new
concentrator is anticipated in Q4 2012.
One of our key strategies has always been to maintain long life reserves, therefore, we have planned a ten-hole drill
program to complement the increased throughput of the new concentrator. The
drill program, scheduled to begin in the next few weeks, will facilitate the
conversion of a significant portion of Gibraltar's 500 million tons of
resources to reserves. Currently Gibraltar's reserves are 445 million
Mr. Hallbauer added, "Management is very excited about GDP3 in
terms of the value it creates for our shareholders and for the economic
impact it will have on the Cariboo Region of British Columbia and Williams
Go-ahead for the project also requires co-operation of Taseko's 25%
Gibraltar Joint Venture partner Cariboo Copper Corp. and the parties are now
in discussions to this end.
For further information on Taseko, please see the Company's website
www.tasekomines.com or contact:
Brian Bergot, Investor Relations - 778-373-4545, toll free
President and CEO
No regulatory authority has approved or disapproved of the information
contained in this news release.
CAUTION REGARDING FORWARD-LOOKING
This release includes certain statements that may be
deemed "forward-looking statements". All statements in this
release, other than statements of historical facts, that address future
production, reserve potential, exploration drilling, exploitation activities
and events or developments that the Company expects are forward-looking statements.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results or
developments may differ materially from those in the forward-looking
statements. Factors that could cause actual results to differ materially from
those in forward-looking statements include market prices, exploitation and
exploration successes, continuity of mineralization, uncertainty related to
the ability to obtain necessary permits, licenses and title and delays due to
third party opposition, changes in government policy regarding mining and
natural resource exploration and exploitation, continued availability of
capital and financing, and general economic, market or business conditions .
Investors are cautioned that any such statements are not guarantees of future
performance and that actual results or developments
may differ materially from those projected in the forward-looking statements.
For more information on the Company, Investors should review the Company's
annual Form 40-F filing with the United States Securities Commission or the
Company's home jurisdiction filings at www.sedar.com.