Taseko drilling boosts resource potential at Gibraltar

Vancouver The $2-million drilling program launched by Taseko Mines (TKO-T, TGB-X) earlier this year is confirming the presence of mineralized zones below, adjacent to, and between existing pits at the Gibraltar mine near Williams Lake, B.C.

The company reports that recent drilling has confirmed “significant new volumes of mineralization” adjacent to open pits while deeper holes have encountered copper and molybdenum grades that are “significantly higher” than the average grades of previously mined material, suggesting that the overall grade is increasing with depth.

The Vancouver-based company states that the drilling program successfully met two important objectives, one being to explore and delineate mineralization adjacent to the walls of existing pits. The other goal was to test for mineralization deeper than 700 feet from surface, which had historically defined the bottom of the pits.

Taseko acquired the dormant mine in 1999, and placed it back into production in 2004. After expanding resources for at least another decade of production, the company launched a $62-million concentrator expansion and upgrade program aimed at boosting production capacity to 100 million pounds of copper from 70 million pounds by 2008.

This year’s drilling program is expected to boost proven and probable reserves, which at year-end 2005 stood at 194 million tons averaging 0.31% copper and 0.01% moly. Measured and indicated mineral resources total 614 million tons at 0.28% copper and 0.008% moly.

Highlights of the recent drilling campaign include: 97.6 metres grading 0.37% copper and 0.008% moly, starting at 173.7 metres; 115.9 metres of 0.39% copper and 0.01% moly, also starting at 173.7 metres; 85.4 metres of 0.67% copper and 0.036% moly, starting at 268.2 metres, and including 48.7 metres of 1% copper and 0.058% moly; 118.9 metres of 0.52% copper and 0.017% moly, starting at 237.7 metres, including 60.9 metres of 0.66% copper and 0.019% moly.

Other notable results include: 100.6 metres of 0.32% copper and 0.019% moly; 108.8 metres of 0.61% copper and 0.018% moly, including 24.4 metres of 0.88% copper and 0.011% moly; and 154.6 metres of 0.33% copper and 0.004% moly.