30% Increase In Molybdenum Mineral Reserves At Thompson Creek Mine
"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," 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%
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%
The Thompson Creek Mine also has additional estimated inferred mineral resources of 29.1 million tons at an average grade of 0.042%
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.
Thompson Creek Metals Company owns the Thompson Creek open-pit molybdenum mine and mill in
The company’s address is