Thompson Creek Reports Approval For Endako Expansion

TORONTO, ON - Thompson Creek Metals Company Inc. reported that its Board of Directors has approved plans to expand capacity at the Endako Mine, in Northern BC, from 28,000 to 50,000 tonnes of ore per day beginning in 2010.
"Our estimates show that the Endako expansion will add to Thompson Creek's profitability and provide an attractive rate of return in the coming years even using price assumptions that are well below the current price of molybdenum," said Kevin Loughrey, Chairman and Chief Executive Officer.
"The expansion project also involves a needed modernization of the mill, which has been in operation since 1965, and ensures we will have an efficient processing operation at Endako that will be beneficial for the long term."
The Company expects its capital expenditures related to the expansion project during the period 2008 to 2010 will be C$280 million (75% of the feasibility study estimate of C$373.6 million) plus ongoing sustaining capital spending. The Endako Mine is operated as a joint venture with Thompson Creek holding a 75% interest and Sojitz Corporation, a Japanese company, holding the remaining 25% interest.
Thompson Creek expects it will have sufficient cash flow from existing operations to fund its share of the expansion as well as to meet the capital requirements anticipated at other properties.
Annual molybdenum production as a result of the expansion at the Endako Mine (of which Thompson Creek will receive 75%) is expected initially to be about 17 million pounds and will decline within two years of the start up to approximately 16 million pounds. In the absence of an expansion, annual molybendum production would be expected to fall to about 8 million pounds by 2012 and remain at approximately that level.
The company's address is 401 Bay Street, Suite 2010, P.O. Box 118, Toronto, ON M5H 2Y4, (416) 860-1438, fax: 416-860-0813, email: [email protected].