Thompson Creek announces 30% increase in molybdenum mineral reserves and new 16-year mine plan for Thompson Creek Mine
November 05 2009 - 5:55PM
PR Newswire (US)
NYSE: TC TSX: TCM, TCM.WT Frankfurt: A6R TORONTO, Nov. 5
/PRNewswire-FirstCall/ -- Thompson Creek Metals Company Inc.
("Company"), one of the world's largest publicly traded, pure
molybdenum producers, today announced new estimates for mineral
resources and reserves and a new 16-year mine plan at its Thompson
Creek Mine in Idaho. The new estimates are based on definition
drilling conducted at the mine since the previous estimates were
published in 2007. "The drilling results are a positive development
for the Company. We found additional mineable areas, particularly
within the western wall of the existing pit, resulting in a 30%
increase in contained molybdenum in proven and probable mineral
reserves compared with the 2007 estimate," said Kevin Loughrey,
Chairman and Chief Executive Officer. "As a result, we have adopted
a new 16-year mine plan to replace the previous 10-year plan.
Adjusting for differing molybdenum price forecasts, starting points
and mining production schedules, the economic value of the new plan
exceeds that of the old," Mr. Loughrey stated. The updated mineral
resources and reserves were estimated by mine staff and audited by
Scott Wilson Roscoe Postle Associates Inc. ("Scott Wilson RPA") in
accordance with the CIM Definition Standards. The mineral reserves
have been estimated using a cut-off grade of 0.03% Mo and an
average long-term molybdenum price of US$10 per pound. These were
the same assumptions used for the 2007 estimates, which were also
audited by Scott Wilson RPA. The 2009 estimates also used updated
costs. Thompson Creek Mine's proven and probable mineral reserves
are estimated at 164.6 million tons at an average grade of 0.084%
Mo containing 277.2 million pounds of molybdenum. The estimate is
as of May 31, 2009. These mineral reserves consist of proven
reserves of 91.8 million tons at an average grade of 0.094% Mo and
probable reserves of 72.8 million tons at an average grade of
0.072% Mo. The mineral reserves are included in a revised estimate
of measured and indicated mineral resources, which totals 326.4
million tons at an average grade of 0.068% Mo and contained Mo of
444.6 million pounds, using a cut-off grade of 0.03% Mo. This
includes measured mineral resources of 132.4 million tons at an
average grade of 0.084% Mo and indicated mineral resources of 194.0
million tons at an average grade of 0.057% Mo. The Thompson Creek
Mine also has additional estimated inferred mineral resources of
29.1 million tons at an average grade of 0.042% Mo. The new
estimates of mineral resources and reserves were audited by John T.
Postle, M.Sc., P.Eng., Christopher Moreton, Ph.D., P.Geo. and Kevin
Scott, P.Eng., all of Scott Wilson RPA, and all of whom are
qualified persons as defined in National Instrument 43-101. Messrs.
Postle, Moreton and Scott have reviewed and approved the contents
of this news release. Scott Wilson RPA also reviewed the Company's
new 16-year mine plan and concluded that "the production targets,
mine operating cost forecasts, and the capital cost forecast are
reasonable." The new mine plan, which replaces a previous 10-year
plan published in 2007, calls for the production of 247.6 million
pounds of molybdenum over 16 years and is based on a pit design
including previously planned Phases 6 and 7 and a revised Phase 8.
Phase 8 had previously focused on mining reserves in the east wall
of the pit but has been revised to include the mining of added
proven and probable mineral reserves identified by definition
drilling in the west wall of the pit. The new mine plan assumes a
return to full capacity utilization of the mill at the Thompson
Creek Mine by January 2010. The mill's production rate was reduced
to approximately 70% of full capacity in March 2009 due to economic
conditions. The Company announced on November 5, 2009 that the mill
has been operating at 78% of full capacity since September 2009 and
is scheduled to operate at full capacity in January 2010. Details
of the new estimates and mine plan are available in a National
Instrument 43-101 technical report that is being filed on SEDAR
(http://www.sedar.com/). A SEC-compliant technical report is also
being filed on EDGAR at http://www.sec.gov/. The previous estimates
for the Thompson Creek Mine compiled by mine staff and audited by
Scott Wilson RPA as of September 30, 2007 showed proven and
probable mineral reserves of 108.9 million tons at an average grade
of 0.098% Mo containing 213.5 million pounds of molybdenum. The
mineral reserves were included in the previously estimated measured
and indicated resources of 255.9 million tons at an average grade
of 0.076% Mo and contained molybdenum of 391.5 million pounds. In
addition, there were estimated inferred mineral resources of 153.7
million tons at an average grade of 0.043% Mo. The 2007 estimates
of mineral resources and reserves were audited by William E.
Roscoe, Ph.D., P.Eng. and John T. Postle, M.Sc., P.Eng., both of
whom are qualified persons as defined in National Instrument
43-101. About Thompson Creek Metals Company Inc. Thompson Creek
Metals Company Inc. is one of the largest publicly traded, pure
molybdenum producers in the world. The Company owns the Thompson
Creek open-pit molybdenum mine and mill in Idaho, a metallurgical
roasting facility in Langeloth, Pennsylvania and a 75% share of the
Endako open-pit mine, mill and roasting facility in northern
British Columbia. Thompson Creek is evaluating the Mount Emmons
Deposit, a high-grade underground molybdenum deposit near Crested
Butte, Colorado. Thompson Creek has an option to acquire up to 75%
of the Mount Emmons Deposit. The Company is continuing to pursue
permitting of the Davidson Deposit, a high-grade underground
molybdenum deposit near Smithers, B.C. The Company has
approximately 750 employees. Its principal executive office is in
Denver, Colorado, and it also has an office in Toronto, Ontario.
More information is available at
http://www.thompsoncreekmetals.com/. Cautionary Note Regarding
Forward-Looking Statements
---------------------------------------------------- This news
release contains "forward-looking information" within the meaning
of the United States Private Securities Litigation Reform Act of
1995 and applicable Canadian securities legislation which may
include, but is not limited to, statements with respect to the
timing and amount of estimated future production. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
"believes" or variations (including negative variations) of such
words and phrases, or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Thompson Creek and/or its
subsidiaries to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. Such factors include the future price
of molybdenum, the estimation of mineral reserves and resources,
the realization of mineral reserve estimates and those factors
discussed in the section entitled "Risk Factors" in Thompson
Creek's current annual information form which is available on SEDAR
at http://www.sedar.com/ and is incorporated in its Annual Report
on Form 40-F filed with the United States Securities and Exchange
Commission which is available at http://www.sec.gov/. Although
Thompson Creek has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results to differ from
those anticipated, estimated or intended. Forward-looking
statements contained herein are made as of the date of this news
release and Thompson Creek does not undertake to update any such
forward-looking statements, except in accordance with applicable
securities laws. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers are cautioned not to place undue
reliance on forward-looking statements. Cautionary Note to United
States Investors Concerning Estimates of
------------------------------------------------------------------
Measured, Indicated and Inferred Resources.
------------------------------------------- This news release uses
the terms "Measured", "Indicated" and "Inferred" Resources. United
States investors are advised that while such terms are recognized
and required by Canadian regulations, the United States Securities
and Exchange Commission does not recognize them. "Inferred Mineral
Resources" have a great amount of uncertainty as to their
existence, and as to their economic and legal feasibility. It
cannot be assumed that all or any part of an Inferred Mineral
Resource will ever be upgraded to a higher category. Under Canadian
rules, estimates of Inferred Mineral Resources may not form the
basis of feasibility or other economic studies. United States
investors are cautioned not to assume that all or any part of
Measured or Indicated Mineral Resources will ever be converted into
Mineral Reserves. United States investors are also cautioned not to
assume that all or any part of an Inferred Mineral Resource exists,
or is economically or legally mineable. Readers should refer to
Thompson Creek's current annual information form which is available
on SEDAR at http://www.sedar.com/ and is incorporated in its Annual
Report on Form 40-F filed with the SEC which is available at
http://www.sec.gov/ and subsequent continuous disclosure documents
available at http://www.sedar.com/ and http://www.sec.gov/ for
further information on mineral reserves and mineral resources,
which is subject to the qualifications and notes set forth therein.
CONTACT: Wayne Cheveldayoff, Director of Investor Relations,
Thompson Creek Metals Company Inc., Tel: (416) 860-1438, Toll free:
1-800-827-0992, ; Dan Symons, Renmark Financial Communications
Inc., Tel.: (514) 939-3989, DATASOURCE: Thompson Creek Metals
Company Inc. CONTACT: Wayne Cheveldayoff, Director of Investor
Relations, Thompson Creek Metals Company Inc., Tel: (416) 860-1438,
Toll free: 1-800-827-0992, ; Dan Symons, Renmark Financial
Communications Inc., Tel.: (514) 939-3989,
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