Name of the Project
Florence Copper in situ copper recovery (ISCR) facility.

Location
Arizona, in the US.

Project Owner/s
Florence Copper Incorporated, a wholly owned subsidiary of Taseko Mines.

Project Description
The Florence deposit contains 2.5-billion pounds of copper in 345-million tons of probable reserves. The project proposes to build and operate an ISCR facility, and produce an average of 55-million pounds of copper a year for the first six years and 85-million pounds a year for the life-of-mine.

The full commercial life of the project is expected to be 20 years.

ISCR is an extraction method used for selected mineral deposit conditions as an alternative to openpit or underground mining methods.

The ISCR process uses a mild solution of 99.5% water and 0.5% acid that slowly dissolves copper in the bedrock. The diluted solution is pumped under low pressure through injection wells to dissolve the copper within the copper oxide zone.

Copper-rich solution is pumped to the surface through recovery wells for processing into pure copper cathode sheets.

The in situ process will occur from 122 m to 366 m below ground in a bedrock layer beneath the lower aquifer unit, from where local drinking water supplies are withdrawn.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 7.5% discount rate, of $920-million and an internal rate of return of 44%, with a payback of 2.3 years.

Capital Expenditure
The project has an initial capital expenditure of $227-million.

Planned Start /End Date
The company is targeting to have all the necessary final permits for the project in early 2021.

Latest Developments
Taseko Mines is moving ahead with final design engineering of the commercial production facility at its Florence copper project, for which it has now secured the majority of the funding required.

Taseko has completed an offering of $400-million of 7% senior secured notes due in 2026. A portion of the proceeds will be used to redeem the outstanding $250-million of 8.75% senior secured notes due in 2022. The remaining proceeds, net of transaction costs and accrued interest of $131-million, will be used for the project.

The bond refinancing and upsize has significantly strengthened Taseko’s financial position and lowered its cost of capital. The company says it has a cash balance of about $200-million and no significant debt maturities until 2026.

“We continue to advance discussions with potential joint venture partners, but with our strong cash balance and improved Gibraltar cash flows from copper prices that are currently over $3.70 per pound, we have numerous options available to obtain the remaining funding,” president Stuart McDonald has said.

When fully ramped up, Florence will produce 40 000 t/y of high-quality cathode copper.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Florence Copper Incorporated manager of communications and public affairs Stacy Gramazio, tel +1 520 374 3984 or email stacygramazio@florencecopper.com.