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m to 366 m below ground in a bedrock layer beneath the lower aquifer unit, from where local drinking water supplies are withdrawn.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 Mines has announced a $50-million revolving credit facility, which will be available for working capital and general corporate purposes.

CEO Stuart McDonald has said that Taseko does not intend to draw any funds from the new facility on closing, but that it will improve its balance sheet and provide it with additional flexibility as it advances the Florence copper project towards production.

“At current copper prices, we expect to fully fund construction of the Florence copper project with cash flow from Gibraltar operations and our existing cash balance,” he has said.

Taseko is still waiting for an underground injection control (UIC) permit for the Florence project – the final permitting step required before construction can start.

Taseko has been advised that the US Environmental Protection Agency (EPA) will send the company a draft UIC permit by mid-October for a two-week review period, before a draft permit will be formally issued, starting a public comment period.

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.