Taseko Mines Announces Capacity Increase at the Gibraltar Mine

Taseko Mines Limited TGB reports that its Board of Directors has approved plans to proceed with a further capacity increase at the Gibraltar Mine. The Gibraltar Development Plan 3 (GDP3) will include the construction of a 30,000 ton per day concentrator to complement the existing 55,000 ton per day facility currently operating. The additional capacity will increase Gibraltar's annual copper production by approximately 60 million pounds to 180 million pounds, at life of mine average grade. An integral part of this project is a new molybdenum recovery facility, increasing molybdenum metal production by over one million pounds per year. Capital costs for GDP3 are expected to be $235 million for the concentrator and molybdenum plant and approximately $90 million for mining equipment (all figures reflect 100% project number, Taseko owns 75%). Based on an assumption of continuing strong metal prices, GDP3 is anticipated to have an internal rate of return of approximately 30% with a three year payback.