Taseko Mines has reported the results of recently updated technical work on its Yellowhead copper project in southeast British Columbia. Included are a 22% increase in recoverable copper reserves and significantly improved project economics.
Taseko is now considering development of a 90,000-metric-ton-per-day (mt/d), open-pit mine and concentrator producing an average of 180 million pounds per year (lb/y) of copper in concentrate over a mine life of 25 years. Production during the first five years of operations would average 200 million lb/y of copper in concentrate.
The Yellowhead project has 817 million mt in proven and probable reserves grading 0.29% copper equivalent. Total life-of-mine production is estimated at more than 4.4 billion lb of copper, 440,000 ounces (oz) of gold, and 19 million oz of silver. Total preproduction capital costs are estimated at C$1.3 billion.
Taseko CEO Russell Hallbauer said, “With an average copper equivalent grade of 0.35% combined with a very low on-site operating cost of C$10/mt milled, the mine-site operating margin is a robust C$16/mt, or roughly C$500 million/year for the first five years, at US$3.10/lb copper. The 440,000 oz of gold and 19 million oz of silver, alone, will generate over C$1 billion of byproduct revenues over the mine’s life.
“Yellowhead has the potential to be one of the largest open-pit copper mines in North America.
