Taseko releases Arizona copper mine update
Taseko Mines Ltd. [TKO-TSE] has released a progress update for construction activities at its Florence Copper project in Arizona.
Taseko is a Vancouver-based company with a portfolio that includes the Gibraltar mine in British Columbia, the Florence Copper Project, and the New Prosperity copper-gold project, which is located near Williams Lake, B.C.
Back in March, 2023, the company completed the acquisition of an additional 12.5% interest in the Gibraltar mine from Sojitz Corp. and now holds an effective 87.5% stake in the mine.
Florence Copper is an in-situ copper recovery project located midway between Pheonix and Tucson, near the community of Florence, Arizona. Development is being performed in two phases, including a phase one production test facility and a second phase commercial facility.
Florence is expected to produce an average of 85 million pounds of copper annually during a projected lifespan of 22 years. Operating costs are forecast at US$1.11 per pound.
To date, the company said 300,000 project hours have been worked and there have been no reportable injuries or environmental incidents. There are currently 280 construction personnel at the site. All activities are advancing on schedule and as of September 30, 2024, the project is approaching 40% complete. First copper production is still anticipated in the fourth quarter of 2025.
Since construction commenced earlier this year, the bulk of activities have been focused on earthworks, concrete, and wellfield drilling, Installation of structural steel, tanks and process equipment is now underway.
The company said concrete foundations for the SX/EW plant and associated infrastructure is 50% complete.
In relation to hiring permanent operating staff, 75 of 170 total positions and all buy one key management position has been filled.
“We are pleased with the progress through the first nine months of construction,’’ said Taseko President and CEO Stuart McDonald. “With approximately 75% of the total construction costs now committed, we expect total costs to be within 10-15% of the original US$232 million estimate,’’ he said. “The project remains on track for first copper production in late 2025, which will be a transformative event for the company.’’
In addition, McDonald said the company has applied to the U.S. Department of Enegy’s Qualifying Advanced Energy Project Credit (48C) Program. Florence Copper, which is set to become North America’s lowest GHG-intensity primary copper producer, qualifies as a critical minerals project. After submitting a concept paper in June, 2024, the company received encouragement to proceed with a full application. “We have now filed application seeking a tax credit of up to US$110 million, and we expect to hear whether Florence qualifies for the credit, or not, in January, 2025,’’ McDonald said.
Taseko shares advanced on the news, rising 0.604% or $0.02 to $3.33. The shares trade in a 52-week range of $4.20 and $1.45.