Taseko boosts reserves at Gibraltar

Vancouver A 30% increase in reserves is expected to increase the life of the Gibraltar copper-molybdenum mine by 3.5 years to 15.5 years. The open-pit mine situated near Williams Lake, B.C., is operated under a joint venture between Taseko Mines (TKO-V, TGB-Q) and contract miner Ledcor Mining.

As of Sept. 30, proven and probable reserves stood at 194 million tons grading 0.31% copper and 0.01% moly, up from the previous estimate of 149 million tonnes, in three main pit areas. In addition to these reserves, the mine property hosts measured and indicated resources totaling 614 million tonnes of 0.28% copper and 0.008% moly.

The latest reserve and resource estimates are based on prices of US$1.10 per lb. for copper and US$6 per lb. moly, and were completed by Gibraltar mine staff under the supervision of the company’s Qualified Person, John McManus, vice-president of operations.

Taskeo plans to carry out definition drill programs in the spring of 2006 to upgrade additional resources into the reserve category. The program will focus on defining additional resources between existing pits and tying together mineralized zones. At the same time, an engineering study will evaluate the economics of expanding the production rate by 25% from the present rate of 35,000 tonnes per day.

Taseko acquired the dormant Gibraltar mine in 1999, and resumed mining in 2004 with partner Ledcor. The company is now looking to revive the Prosperity project, also near Williams Lake.

Prosperity hosts a large porphyry copper-gold deposit amenable to open-mining. A previous study examined potential for a 70,000-tonne-per-day operation based on measured and indicated resources of 491 million tonnes grading 0.22% copper and 0.43 gram gold per tonne. While this estimate predates National Instrument 43-101 reporting standards, it was used to determine “in-pit resources” for engineering studies in 2002.

Taseko also owns the Harmony gold project in the Queen Charlotte Islands of B.C., but notes that engineering studies are required to “fully assess the potential of this major resource.”