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m to 366 m below ground in a bedrock layer beneath the lower aquifer unit, from where local drinking water supplies are withdrawn.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 aiming to have all the necessary final permits for the project in 2021.

Latest Developments
Taseko CEO Russell Hallbauer has indicated that, at current copper prices, the company may choose to develop the commercial production facility at its Florence project without a joint venture (JV) partner.

The company has secured most of the required construction funding for the project and with stronger operating cash flows expected from its operating Gibraltar mine, in British Columbia, it may retain 100% ownership of Florence.

Copper prices have recovered swiftly since March 2020, and are testing decade-high levels, owing to recovery in demand in Chinese and worldwide markets, coupled with continued supply and political disruptions.

Construction at Florence will be able to start once Taseko receives the underground injection control permit, expected in the third quarter.

Taseko has operated a production test facility at Florence for the past two years, demonstrating that the in situ copper recovery process can produce high-quality cathode while operating within permit conditions.

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.