Imperial and Taseko boost potential of respective B.C. copper mines

Vancouver — Ongoing exploration efforts by two separate companies have expanded resources and the operating lives of two copper mines in central British Columbia. Imperial Metals (III-T) has approved plans to extend the Main Zone pit after defining additional tonnage that will add two years of life to its 50%-held Huckleberry copper mine situated about 123 km southwest of Houston, B.C.

In a separate development, Taseko Mines (TKO-t, TGB-X) will assume full operating control of the Gibraltar copper-gold mine near Williams Lake in early November of this year, following the voluntary withdrawal of contract miner and joint venture partner Ledcor CMI.

Taseko and Ledcor CMI placed the 30-year-old past-producing mine back into production in late 2004. Drilling since then has resulted in a 30% increase in reserves, which allowed Taseko to develop a 15-year mine plan and proceed with a $62-million mill modernization program aimed at boosting production capacity from 70 million pounds to 100 million pounds of copper by 2008.

Taseko is conducting a $2-million exploration program this year to more fully define material adjacent to and below existing pits in order to further boost reserves and extend the mine life. At year-end 2005, proven and probable reserves stood at 194 million tons averaging 0.31% copper and 0.01% molybdenum, while measured and indicated mineral resources were estimated at 614 million tons at 0.28% copper and 0.008% moly.

Imperial Metals, meanwhile, has approved the extension of the Main Zone pit, subject to government approvals expected this summer. The proposal is being refined into a revised long-term operating plan due in October. The plan will focus on newly added probable reserve tonnage of the extension, which is estimated at 16 million tonnes grading 0.37% copper, sufficient to extend production into 2010.

Imperial notes that higher copper prices are a major factor in making the pit expansion economically feasible. Robust copper prices are also spurring exploration efforts, which are ongoing in hopes of finding additional resources.

Imperial owns 50% of the Huckleberry mine. The company also owns and operates the Mount Polley copper-gold mine near Williams Lake, where recent exploration programs have resulted in the discovery of several high-grade copper-gold zones that are expected to extend the life of the more recently constructed open-pit operation.