Taseko moves rock at Gibraltar (September 27, 2004)

Vancouver — Preparation work by Taseko Mines (TKO-V) on its Gibraltar open-pit copper mine, located near Williams Lake in south-central British Columbia, is readying the project for reactivation of commercial operations in October 2004.

Earlier this year, the company announced a joint venture with mining contractor Ledcor CMI, who have become operator of the project.

Pre-production activities on-site have included mobilization of personnel, re-commissioning of heavy equipment, and the commencement of pre-development mining in the Pollyanna pit. To date, about 3.35 million tonnes of material has been removed to gain access to ore.

Under the terms of the joint venture, Ledcor is financing the new heavy-mining equipment now being assembled at, and delivered to, the operation. Reconditioning of the processing circuit is also nearing completion.

The Gibraltar mine operated from 1972 to 1993, and from 1994 until late-1998 when low copper prices forced operations to cease. Average annual production was 80 million lbs. copper and 700,000 lbs. molybdenum. There is an estimated sulphide mineral resource of 745 million tonnes averaging 0.3% copper (4.7 billion lbs. copper), using a 0.2% copper cut-off grade. This includes a measured and indicated resource of 149 million tonnes of 0.31% copper and 0.01% molybdenum outlined in the 12-year mine plan.

Taseko Mines acquired the Gibraltar mine in 1999. The company also holds the Prosperity copper-gold porphyry project in south-central B.C. and the Harmony gold property in the Queen Charlotte Islands of B.C.

At last count, the company has 84.2 million shares outstanding, with the issue recently trading in the $1.35-per-share range.