Canada-based Taseko Mines is preparing for construction of the Florence Copper project, in the US, with site preparation set to begin this quarter, CEO Stuart McDonald reported on Wednesday.

The company recently received confirmation from the US Environmental Protection Agency (EPA) that no appeals had been received and that the permit was effective.

“This is a great result and evidence of the quality and integrity of the project,” said McDonald.

He reported that financing discussions were well advanced and that the additional financings would close in early 2024, at which stage wellfield drilling would begin.

On October 25, Taseko closed the first $20-million tranche of its $25-million equipment loan commitment from the Bank of America. The company is targeting additional funding commitments of about $100-million in royalties and debt at Florence.

The project will require $232-million of capital to build. It has a net present value of $930-million, at an 8% discount rate, and an internal rate of return of 47%. Over its 22-year mine life, the operation will produce 85-million pounds of copper.

Meanwhile, Taseko reported adjusted net earnings of C$20-million for the third quarter.

Its main operating mine, Gibraltar, in Canada, produced 35-million pounds of copper and 369 000 lb of molybdenum, which is 26% and 60% higher, respectively, than in the second quarter.

The improved production was a result of higher grades, throughput and recoveries. Total operating costs decreased by 17% to $2.20/lb.

“We are pleased with Gibraltar's performance in the third quarter. Copper head grade increased to 0.26% in the period as the lower benches of the Gibraltar pit provided the higher grades and more consistent mineralised zones we expected. Mill performance was also strong as copper recoveries averaged 85% and the softer ore in the Gibraltar pit helped to achieve a throughput rate over 87 000 t/d, 10% higher than the first half of 2023. 

“The Gibraltar pit will continue to be our main source of ore through the middle of 2024, providing us with predictable and consistent mill feed. The operation remains on track to meet the original 2023 production guidance of 115-million pounds of copper,” said McDonald.

“We continue to have our copper put protection in place $3.75/lb until the end of the year, and we now have a minimum price of $3.25/lb protected for the first quarter of 2024,” he said.