Taseko’s Yellowhead copper project shows improved economics in new report

VANCOUVER - Taseko Mines (NYSE:TGB) Limited (TSX:TKO; NYSE American:TGB; LSE:TKO) announced Thursday that its wholly-owned Yellowhead Copper Project in British Columbia now carries an estimated after-tax net present value of C$2 billion, according to a newly completed technical report.

The updated assessment shows a 25-year mine life with average annual copper production of 178 million pounds at total cash costs of US$1.90 per pound, representing significant economic improvement since the previous 2020 technical report.

The project features a conventional open pit mining operation with a low strip ratio of 1.4 and a concentrator designed to process 90,000 tonnes of ore daily with an expected copper recovery of 90%.

Initial capital costs are estimated at C$2 billion with a payback period of 3.3 years. The company expects the project to be eligible for the federal Canadian Clean Technology Manufacturing Investment Tax Credit, potentially providing reimbursement of approximately C$540 million in eligible capital costs during the first year of operation.

"This new Technical Report establishes Yellowhead as a world class copper project in a tier one jurisdiction," said Stuart McDonald, President & CEO of Taseko, in the press release statement.

Located in central British Columbia about 150 km north of Kamloops, the Yellowhead Project benefits from existing transportation infrastructure with a major highway passing 8 km north of the site and company-owned rail siding providing access to the CN Rail transcontinental line.

The project is expected to create approximately 590 direct jobs and 1,120 indirect and induced jobs. Total (EPA:TTEF) tax payments to provincial and federal governments over the mine life are estimated at C$3.2 billion.

With the recent acceptance of the initial project description, Yellowhead has formally commenced provincial and federal environmental assessment processes, as well as the Simpcw First Nation’s assessment process.

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