Taseko Mines: Florence Copper Aquifer Protection Permit not Appealed by Town Council

Rhea-AI Summary

Taseko Mines Limited (TGB) announced that the Florence Town Council will not appeal the recently granted Aquifer Protection Permit by the Arizona Department of Environmental Quality. This decision is seen as a positive step, suggesting a collaborative future. The company expects to transition Florence Copper to commercial production, projecting an average output of 85 million pounds of copper annually for 20 years, starting in late 2022. Key project metrics include a pre-tax NPV of $920 million, a 40% internal rate of return, and a 20-year mine life with low cash costs.

Positive

• Florence Town Council will not appeal Aquifer Protection Permit, fostering a collaborative relationship.
• Projected average production of 85 million pounds of copper per year for 20 years.
• Pre-tax net present value of $920 million at a 7.5% discount rate.
• Internal rate of return (IRR) of 40% and a payback period of 2.3 years.
• C1 cash costs estimated at $1.13 per pound, positioning Florence Copper as a low capital intensity project.

Negative

• None.

VANCOUVER, BC, Jan. 5, 2021 /PRNewswire/ - Taseko Mines Limited (TSX: TKO) (NYSE American: TGB) (LSE: TKO) ("Taseko" or the "Company") is pleased to announce that the Florence Town Council has decided it will not appeal the Aquifer Protection Permit ("APP") which was recently granted by the Arizona Department of Environmental Quality ("ADEQ").

Stuart McDonald, President of Taseko, commented, "We are very pleased by this decision and believe this change in approach by Council signals a new beginning. Our expectation is that open and productive dialogue will result and that our future together is bright."

"We believe that two years of operating the test facility within the strict environmental guidelines set out in our current permits, combined with the future economic benefits from the commercial production facility, certainly contributed to Council's decision. Transitioning Florence Copper to commercial production, which includes expanding the current wellfield and SX/EW plant, will mean an average of 85 million pounds of copper per year for 20 years beginning in late 2022," concluded Mr. McDonald.

Project Highlights

• Pre-tax net present value of US$920 million at a 7.5% discount rate
• After-tax net present value of US$680 million at a 7.5% discount rate
• IRR of 40% and a 2.3 year payback
• 20 year mine life with average C1 cash costs of US$1.13 per pound
• At US$5,600 per ton of installed capacity, Florence Copper is one of the lowest capital intensity copper projects in the world
• Reserves of 345 million tons grading 0.36% copper containing 2.5 billion pounds of copper

The Florence Copper NI 43-101 technical report is available on www.sedar.com or the Company's website at www.tasekomines.com. 

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, including the "Risk Factors" included in our Annual Information Form.

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SOURCE Taseko Mines Limited

FAQ

What is the significance of the Aquifer Protection Permit for Taseko Mines (TGB)?

The Aquifer Protection Permit allows Taseko Mines to proceed with its Florence Copper project, enhancing production capabilities and economic viability.

What are the projected benefits of the Florence Copper project for TGB shareholders?

The project is expected to generate an average of 85 million pounds of copper annually and has a pre-tax net present value of $920 million, suggesting strong financial returns.

When will Taseko Mines start commercial production at Florence Copper?

Commercial production at Florence Copper is expected to begin in late 2022.

What are the financial metrics associated with the Florence Copper project?

The project has a pre-tax NPV of $920 million, an IRR of 40%, and cash costs estimated at $1.13 per pound.