Name of the Project
Florence Copper in situ copper recovery (ISCR) facility.
 

Location
Arizona, US.

Client
Florence Copper Incorporated, a wholly owned subsidiary of Taseko Mines.

Project Description
The Florence deposit contains 2.4-billion pounds of copper in 340-million tons of probable reserves.

The project proposes to build and operate an ISCR facility and produce an average of 55-million pounds of copper a year for the first six years and 85-million pounds a year for 14 years.

The full commercial life of the project is expected to be 25 years.

ISCR is an extraction method used for selected mineral deposit conditions as an alternative to openpit or underground mining methods.

The ISCR process uses a mild solution of 99.5% water and 0.5% acid that slowly dissolves copper in the bedrock. The diluted solution is pumped under low pressure through injection wells to dissolve the copper within the copper oxide zone.

Copper-rich solution is pumped to the surface through recovery wells for processing into pure copper cathode sheets.

The in situ process will occur from 122 m to 366 m below ground in a bedrock layer beneath the lower aquifer unit from where local drinking water supplies are withdrawn.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 7.5% discount rate, of $725-million, with an internal rate of return of 36% using a long-term copper price of $2.75/lb. 

Value
Taseko Mines will spend an estimated $208-million to develop the project.

Duration
Not stated.

Latest Developments
Taseko has received approval to proceed with the construction of the first phase of its controversial Florence in situ copper project.

The US Environmental Protection Agency has issued a final underground injection control (UIC) permit for Taseko to proceed with the pioneering copper extraction method, effective from January 31, 2017.

The Phase 1 test facility will serve to optimise the copper recovery process and demonstrate its environmental integrity and reliability.

"Permitting any industrial project is a lengthy and challenging process, which is why the receipt of the UIC permit is a major milestone achieved by the company. There is a possibility that opposing parties will attempt to appeal the UIC permit, similar to the challenge made to the previously granted aquifer protection permit (APP), but we expect that the regulatory authorities will successfully defend their thorough process," president and CEO Russell Hallbauer has stated.

Local town officials and residents opposed to the project fear contamination of the local water supply. The operation will mine underground copper by dissolving it with a sulphuric acid solution and pumping it to the surface for extraction from the solution.

The project has successfully met all its regulatory obligations at state and federal levels. The project has received 19 permits and authorisations, including the UIC.

The project is expected to produce copper at direct operating costs of $0.80/lb and allows for the copper to be recovered using a water-based solution to manufacture LME Grade A copper cathode.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Florence Copper Incorporated manager of communications and public affairs, Stacy Gramazio, tel +1 520 374 3984 or email stacygramazio@florencecopper.com.