THOMPSON CREEK ANNOUNCES REVISED RESERVES AND
NEW 10-YEAR MINE PLAN FOR THOMPSON CREEK MINE
• Part One of the reserves re-evaluation of Thompson Creek Mine’s potential shows measured and indicated resources of 391.5 million pounds of molybdenum at a cut-off grade of 0.03% Mo, and proven and probable reserves of 213.5 million pounds assuming a molybdenum price of US$10 per pound.
• Drilling has begun under and outside of the existing pit and Part Two of the reserves re-evaluation is to be completed in 2008.
• The new mine plan for the next 10 years projects total molybdenum production of 192.1 million pounds.
Thompson Creek Metals Company Inc., one of the world’s largest publicly traded, pure molybdenum producers, today announced new estimates for mineral resources and reserves and molybdenum production at its open-pit Thompson Creek Mine in Idaho.
“The new reserves estimate represents the first of a two-part reserves re-evaluation of Thompson Creek Mine’s potential and will be followed up with additional drilling that is expected to lead to a second revision of the reserves estimate in 2008,” said Kevin Loughrey, President and Chief Executive Officer.
“This first part of the reserves work essentially evaluates the existing pit and previous drilling results on the basis of a molybdenum price of US$10 per pound and updated costs, compared to the previous evaluation at a US$5 per pound price,” Mr. Loughrey stated.
“Most of the previous drilling, done 25 years ago, stopped at the level of 6,000 feet above sea level. The mine owners at the time had enough information to justify production and chose not to drill any deeper. Preliminary indications suggest the deposit continues below the 6,000-foot level. In order to confirm the continuity of the deposit, we are currently engaged in exploration drilling at the bottom of the pit. We also intend to carry out some drilling activity outside of the pit to determine the extent of resources on the land we own around the pit.”
The updated mineral resources and reserves were estimated by Scott Wilson Roscoe Postle Associates Inc. (“Scott Wilson RPA”) in accordance with the CIM Standards.
The updated estimates represent increases for contained molybdenum in measured and indicated resources of 5.6%, in inferred resources of 163%, and in proven and probable reserves of 26.3% compared with the previous estimates.
Scott Wilson RPA estimates that Thompson Creek Mine’s proven and probable reserves are 98.8 million tonnes with an average grade of 0.098% Mo containing 213.5 million pounds of molybdenum. The estimate is as of September 30, 2007.
These reserves consist of proven reserves of 39.2 million tonnes at an average grade of 0.104% Mo and probable reserves of 59.5 million tonnes at an average grade of 0.094% Mo.
The estimates are based on a pit design including Phases 6, 7 and 8, using an assumed molybdenum price of US$10 per pound (with exterior access) and updated costs.
The reserves were based on Scott Wilson RPA’s revised estimate of measured and indicated mineral resources, which totals 232.1 million tonnes with an average grade of 0.076% Mo and contained Mo of 391.5 million pounds, using a cut-off grade of 0.03% Mo. This includes measured resources of 69.6 million tonnes with an average grade of 0.087% Mo, and indicated resources of 162.5 million tonnes with an average grade of 0.072% Mo.
Scott Wilson RPA also estimated additional inferred resources of 139.5 million tonnes with an average grade of 0.043% Mo and contained Mo of 132.2 million pounds.
The new estimates of mineral resources and reserves were carried out by William E. Roscoe, P.Eng., and John T. Postle, P.Eng., of Scott Wilson RPA, both of whom are qualified persons as defined in National Instrument 43-101. Messrs Roscoe and Postle have reviewed and approved the contents of this news release.
Scott Wilson RPA also reviewed the Company’s new 10-year mine plan and concluded that “the production targets, mine operating cost forecasts, and the capital cost forecasts are reasonable.”
The mine plan calls for production of 194.9 million pounds of molybdenum in the 10.25 years from October 1, 2007 to December 31, 2017 (192.1 million pounds for the 10-year period 2008 to 2017).
Details of the Scott Wilson RPA report will be available when a National Instrument 43-101 technical report is filed on SEDAR in due course.
The previous estimates for the mine, also compiled by Scott Wilson RPA in 2006 with an assumed cut-off grade of 0.04% Mo, showed measured and indicated resources of 178.6 million tonnes with an average grade of 0.094% Mo and contained Mo of 370.6 million pounds. Measured resources were estimated at 55.7 million tonnes with an average grade of 0.104% Mo and contained Mo of 127.9 million pounds, and indicated resources were estimated at 122.9 million tonnes with an average grade of 0.09% Mo and contained Mo of 242.7 million pounds. In addition, inferred resources were estimated at 34.5 million tonnes with an average grade of 0.066% Mo and contained Mo of 50.2 million pounds. Based on a molybdenum price assumption of US$5 per pound for molybdenum, proven and probable reserves were previously estimated at 64.5 million tonnes with an average grade of 0.119% Mo and contained Mo of 169.1 million pounds. Proven reserves were estimated at 28.1 million tonnes with an average grade of 0.123% Mo and contained Mo of 76 million pounds. Probable reserves were estimated at 36.4 million tonnes with an average grade of 0.116% Mo and contained Mo of 93.0 million pounds.
The previous estimates of mineral resources were estimated by William E. Roscoe, P.Eng., and the previous estimates of mineral reserves were estimated by John T. Postle, P.Eng., both of whom are qualified persons as defined in National Instrument 43-101.
