Taseko Mines: Draft Aquifer Protection Permit for Florence Copper Project to be Issued this Week

Rhea-AI Summary

Taseko Mines Limited (TGB) has announced that the Arizona Department of Environmental Quality will issue the draft Aquifer Protection Permit for the Florence Copper production facility on August 6, 2020. This permit is crucial for advancing the project to commercial production. CEO Russell Hallbauer emphasized the permit's significance, asserting the environment safety of the in-situ mining process demonstrated over 18 months of testing. The company is winding down its test facility while refining its operational plans for the commercial phase using recently collected data.

Positive

• Draft Aquifer Protection Permit for Florence Copper project expected to be issued, a key step towards commercial production.
• Successful 18-month testing phase validates production capabilities and project economics.

Negative

• Potential regulatory delays following the public comment period on the draft permit.
• Forward-looking statements highlight risks including regulatory uncertainties and market demand fluctuations.

VANCOUVER, BC, Aug. 4, 2020 /PRNewswire/ - Taseko Mines Limited (TSX: TKO) (NYSE American: TGB) (LSE: TKO) ("Taseko" or the "Company") has been informed by the Arizona Department of Environmental Quality ("ADEQ") that the draft Aquifer Protection Permit ("APP") for the Florence Copper commercial production facility will be issued on Thursday, August 6, 2020. The APP is one of two key permits required to advance the project to commercial production.

Russell Hallbauer, Chief Executive Officer and Director of Taseko, commented, "The issuance of this important permit is a confirmation by the state regulator that the Florence Copper in-situ mining process is environmentally safe. We have proven this over the past 18 months while operating the test facility within all the stringent conditions set out in the current permit. We fully expect that following the 30-day public comment period, the ADEQ will be positioned to quickly issue the final permit."

"From an operational perspective, we have completed a full evaluation of the data collected from the test wellfield over the last 18 months of operations. The test facility has successfully demonstrated our ability to produce high-quality copper cathode, within the stringent environmental guidelines of our permits, and has confirmed the project economics."

"Many of the modelled assumptions have been validated and we have used the data to develop strategies for solution chemistry, flow rates, reverse flow and the use of well packers for targeting solution flows. The hydrogeological model has been updated using the data collected over the past 18 months and is being used to refine our operating plan for the commercial phase." continued Mr. Hallbauer.

"With all of the required data in hand, we recently made the decision to wind down the production phase of the test facility and commence with rinsing the small section of the orebody where the wellfield has been operating. Timing of these activities are expected to mesh well with the overall project timeline and will provide our operating team with additional site specific experience," added Mr. Hallbauer. 

Russell Hallbauer
Chief Executive Officer and Director

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 about the effect of COVID-19 and the response of local, provincial, federal and international governments to the threat of COVID-19 on our operations (including our suppliers, customers, supply chain, employees and contractors) and economic conditions generally and in particular with respect to the demand for copper and other metals we produce;
• 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 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.gov and home jurisdiction filings that are available at www.sedar.com.

Cautionary Statement on Forward-Looking Information

This discussion includes certain statements that may be deemed "forward-looking statements".  All statements in this discussion, 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 we believe 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, 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 actual results or developments may differ materially from those projected in the forward-looking statements.  All of the forward-looking statements made in this MD&A are qualified by these cautionary statements.  We disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable law.  Further information concerning risks and uncertainties associated with these forward-looking statements and our business may be found in our most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities.

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SOURCE Taseko Mines Limited

FAQ

What is the significance of the draft Aquifer Protection Permit for TGB?

The draft Aquifer Protection Permit is essential for TGB to advance the Florence Copper project to commercial production.

When will the draft Aquifer Protection Permit for TGB's Florence Copper project be issued?

The draft permit is set to be issued on August 6, 2020.

What assurances does TGB provide regarding the environmental safety of the Florence Copper project?

TGB's CEO stated that the in-situ mining process has been proven environmentally safe through 18 months of testing.

What are the potential risks associated with TGB's forward-looking statements?

Risks include regulatory uncertainties, market demand fluctuations, and potential delays in obtaining necessary permits.

What recent operational decisions has TGB made regarding the Florence Copper project?

TGB has decided to wind down the production phase of the test facility and refine its operational plans based on the data collected.