VANCOUVER, May 10 /CNW/ --
VANCOUVER, May 10 /CNW/ - 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 |
|__________________________________________________|
|Pit |Category| Tons | Cu | Mo |
| | |(millions)|(%) | (%) |
|___________________|________|__________|____|_____|
|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 |
|_________________________________|
|Category | Tons | Cu | Mo |
| |(millions)|(%) | (%) |
|_________|__________|____|_______|
|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.
Russell Hallbauer
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 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.com and home jurisdiction filings that are available at www.sedar.com.
Information Concerning Estimates of Measured and Indicated Resources
This news release uses the terms 'measured resources' and 'indicated
resources'. Taseko Mines Limited advises investors that although these
terms are recognized and required by Canadian regulations (under
National Instrument 43-101 Standards of Disclosure for Mineral
Projects), the U.S. Securities and Exchange Commission does not
recognize them. Investors are cautioned not to assume that any part or
all of the mineral deposits in these categories will ever be converted
into reserves.
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