Taseko Joint Ventures Gibraltar Mine Operations with Ledcor
6/1/04
VANCOUVER, BRITISH COLUMBIA, Jun 1, 2004 (CCNMatthews via COMTEX) --
Ronald W. Thiessen, President and CEO of Taseko Mines Limited (TSX Venture: TKO; OTCBB: TKOCF) is pleased to announce that Taseko has signed a Framework Agreement to create a Joint Venture (the 'JV') with Ledcor CMI Ltd. ('Ledcor'), whereby Ledc
or will commission and operate the Gibraltar mine, located near the City of Williams Lake in south-central British Columbia. Gibraltar is a 35,000 tonnes per day open pit copper mine that is preparing to resume operations.
Ledcor is a major British Columbia based construction and contract mining company, with extensive experience in both the construction and the operation of mines. Its Civil-Mining division employs over 300 people across Canada and the United States.
Under the proposed terms, Ledcor will be the operator, with primary responsibility for commissioning and operating the mine in addition to other aspects of mine operations, including drilling, blasting, loading and hauling of ore and waste as well as recruitment of personnel and maintenance of the equipment and facilities. Ledcor will contribute to the JV its own mine equipment and purchase or lease additional equipment, as necessary, including a large new shovel and new trucks worth over $25 million, to supplement the existing site equipment. Taseko will contribute to the JV certain mineral rights and usage rights to the existing mill and equipment. Personnel from Ledcor are on site to begin commissioning the mine for copper concentrate production by October 1, 2004.
A long-term copper concentrate sales contract has also been signed recently with Glencore Ltd. ('Glencore'), a major international metals buyer. Glencore is a diversified natural resources group based in Switzerland, with assets of US$15 billion. Commencing in October 2004, the sales contract is for 100% of the production from the mine, and has a duration of 40 months, with fixed terms for treatment and refining charges at a discount to prevailing market prices.
Other activities associated with the re-start of the Gibraltar mine include arrangements with rail carriers and port facilities for the transportation, storage and shipment of Gibraltar's copper concentrates to smelters overseas. These arrangements are well advanced and within the necessary lead times.
Mr. Thiessen said 'We are making good progress on our re-start activities, and are very pleased to have established this joint venture with Ledcor and to have secured the key concentrate sales agreement with Glencore. We would like to acknowledge the support of Williams Lake and other local communities during the standby and re-start period, and look forward to being a major contributor to the economy of the region.'
ON BEHALF OF THE BOARD OF DIRECTORS
Ronald W. Thiessen, President &CEO
Taseko Mines Ltd. Investor Services (604) 684-6365 or Toll Free: 1-800-667-2114 (604) 684-8092 (FAX) Website: www.tasekomines.com
NEWS RELEASE TRANSMITTED BY CCNMatthews No regulatory authority has approved or disapproved the information contained in this news release.
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