Taseko Mines Limited confirmed its Gibraltar Development Plan 3 capital program on Jan. 11, announcing it plans to expend $134 million in 2012, increasing its share of copper production capacity to 140 million pounds per year.
The company has also committed an additional $31 million in 2012 for development and advancement of the wholly-owned Aley Niobium Project and New Prosperity Gold-Copper Project, both in B.C.
In a press release issued by Taseko, president and CEO Russell Hallbauer says a key strategic priority for the company in 2012 is to position the company for growth in 2013 and beyond.
“This priority includes the GDP3 project build-out and the near-term production growth it will provide. We are over six months into the 18 month project,” Hallbauer says, adding Gibraltar has spent $56 million and has a fixed price commitment of $70 million, with a budgeted total of $235 million, excluding equipment. The remainder of the project funds will go to construction material and contracts.
“The project is on budget and on time for a December 2012 completion,” he says.
Cash flow from Taseko’s 75 per cent share of Gibraltar production will support Taseko’s Aley and New Prosperity expenditures.
“This year will be pivotal for our two development projects. We expect to complete a feasibility study on Aley in the fourth quarter of 2012 and the recently announced environmental assessment project for New Prosperity is scheduled to complete in November 2012,” Hallbauer continues.
Operationally, he says, the company is well positioned at the beginning of 2012, for completion of this work, because of “value-enhancing” programs funded from operations and Taseko’s $340 million cash position.
“In addition, our Gibraltar margins are protected from copper price volatility by the US$3.50/pound puts that are in place for all of 2012 against 90 per cent of Taseko’s share of Gibraltar copper production,” he adds.