Taseko hits key milestone at Yellowhead copper project in B.C.

Taseko Mines Ltd. [TKO-TSE] said it has launched the environmental process for its 100%-owned Yellowhead project, which is located 150 kilometres north of Kamloops, British Columbia.

The initial project description for the Yellowhead project has been filed and accepted by the B.C. Environmental Assessment Office and Impact Assessment Agency of Canada. The acceptance formally commences the environmental assessment process, which is designed to be comprehensive, inclusive and transparent, the company said.

“The submission of the initial project description represents a significant milestone for the Yellowhead project permitting process,” said Taseko President and CEO Stuart McDonald. “We have already begun to engage stakeholders, and will ensure that the development of Yellowhead is in line with environmental and social expectations,” he said.

Taseko is a Vancouver-based company with a portfolio that includes the Gibraltar mine in British Columbia, the Florence Copper Project in Arizona, and the New Prosperity copper-gold project, which is located near Williams Lake, B.C. 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.

Taseko has said the Yellowhead project has the potential to be one of the most significant copper mines in North America. “Its development will dramatically increase Taseko’s annual copper production and cash flow,” the company said.

Located in the Thompson-Nicola region of B.C. near the town of Vavenby, the Yellowhead project is envisioned as a 90,000 tonne-per-day open pit copper mine with a 25-year mine life, creating 600 full time positions at site, producing 200 million pounds per year for the first five years and 180 million pounds of copper in concentrate annually for the life of the mine. The project site is well supported by existing, high-quality transportation infrastructure, and a skilled workforce.

The company said the concentrate will be clean, not complex, and contains no penalty level deleterious elements. Total metal production is expected to be 4.4 billion pounds of copper, 440,000 ounces of gold and 19 million ounces of silver.

The project has a pre-production capital cost of $1.3 billion and provides a pre-tax NPV at an 8.0% discount rate of $1.3 billion using US$3.10 per pound copper, US$1,350 per ounce gold and US$18 an ounce for silver.

The Yellowhead project is located 200 kilometres southeast of Taseko’s Gibraltar Mine, which is similar in size, nature of operation, and mine life. Proximity to the mining hub of Kamloops will provide available services and labour and the project will make a significant contribution to the economy of the region. The property consists of 131 mineral claims covering 42,500 hectares.

Taseko shares eased 1.06% or $0.05 to $4.65 in early trading, Wednesday. The shares trade in a 52-week range of $5.05 and $2.38.