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ENDAKO
Fraser Lake, B.C.
The Endako Mine has produced molybdenum for more than 40 years. It includes three open pits, a mill and a roasting facility, and is operated as a joint venture with Thompson Creek having a 75% interest and Japan-based Sojitz Corporation having a 25% interest.
Endako currently processes approximately 28,000 tonnes of ore per day. Endako has commissioned a study to examine the feasibility of increasing production at the mine by increasing the mill processing capacity to 50,000 tonnes per day, with a proportionate increase in roasting capacity. Information about the feasibility study was published in a news release issued by the Company on November 8, 2007. Details of the feasibility study are available as a National Instrument 43-101 technical report filed on SEDAR. To view the report, click here.
Additional exploration activity is being conducted on the Endako property outside the current pits, involving both aerial geophysical and soil-sampling geochemical exploration work that may be followed up with diamond drilling.
Reserves Estimate
Wardrop Engineering Inc. estimates that Endako's reserves are 276 million tonnes of ore with an average grade of 0.085% MoS2 (equivalent to 0.051% Mo) containing 310 million pounds of Mo (75% of which are to Thompson Creek's account).
These reserves consist of proven reserves of 112,000,000 tonnes at an average grade of 0.088% MoS2 (equivalent to 0.053% Mo) and probable reserves of 164,000,000 tonnes at an average grade of 0.082%MoS2 (equivalent to 0.049%Mo). The estimates are based on a pit design as of April 30, 2007 using an assumed molybdenum price of US$10 per pound and updated costs.
At the current milling rate of 10.22 million tonnes of ore per year, Wardrop estimates Endako's mine life is 27 years, not including stockpile material.
The Wardrop estimates are based on an optimized model for the Endako deposit combining the existing Endako, East Denak and West Denak pits into one "super pit".
Wardrop also estimates reserves and mine life at a higher assumed molybdenum price. At US$12.50 per pound, Endako's reserves increase to 402 million tonnes of ore with an average grade of 0.076% MoS2 (equivalent to 0.046% Mo) and contained Mo of 404 million pounds (75% of which are to Thompson Creek's account). At the current milling rate of 10.22 million tonnes of ore per year, Wardrop estimates Endako's mine life, at the higher assumed price of US$12.50 per pound, is 39 years.
The updated reserves and mine life were calculated to the specifications of National Instrument 43-101 and in accordance with the CIM Standards by Anoush Ebrahimi, P.Eng., of Wardrop Engineering Inc., a qualified person as defined in National Instrument 43-101.
The updated reserves and mine life were announced by the Company in a news release dated July 10, 2007. The Wardrop report was subsequently filed with SEDAR. To view the Endako Mine Technical Report, click here. It is also available at www.sedar.com
Resource Estimate
In April 2007, Thompson Creek Metals Company announced an updated measured and indicated molybdenum resource estimate for the Endako Mine. The updated resource estimate was calculated by the Vancouver office of Wardrop Engineering Inc. to the specifications of National Instrument 43-101 and in accordance with the CIM Standards. The effective date of the new estimate is April 15, 2007.
The Wardrop report was subsequently filed with SEDAR. To view the Endako Mine Technical Report, click here. It is also available at www.sedar.com.
At a cut-off grade of 0.02% molybdenum (Mo), Wardrop estimates measured and indicated Mo resources at the Endako Mine of 492 million tonnes with an average grade of 0.043% Mo and contained Mo of 464 million pounds (75% of which are to Thompson Creek's account). Measured resources are 138 million tonnes at an average grade of 0.05% Mo and indicated resources are 354 million tonnes at an average grade of 0.04% Mo. In addition, the property contains inferred resources of 76 million tonnes at an average grade of 0.033% Mo.
| Class |
Cut-off Mo% |
Tonnes |
MO % |
Contained Mo lb |
| Measured |
> 0.02 |
138,000,000 |
0.050 |
152,200,000 |
| Indicated |
> 0.02 |
354,100,000 |
0.040 |
311,800,000 |
| Measured + Indicated |
> 0.02 |
492,100,000 |
0.043 |
463,900,000 |
| Inferred |
> 0.02 |
76,200,000 |
0.033 |
56,200,000 |
At a cut-off grade of 0.03% Mo, Wardrop estimates measured and indicated Mo resources at the Endako Mine of 331 million tonnes with an average grade of 0.051% Mo and contained Mo of 375 million pounds (75% of which are to Thompson Creek's account). Measured resources are 108 million tonnes at an average grade of 0.057% Mo and indicated resources are 223 million tonnes at an average grade of 0.049% Mo. Inferred resources are 36 million tonnes at an average grade of 0.043% Mo.
| Class |
Cut-off Mo% |
Tonnes |
MO % |
Contained Mo lb |
| Measured |
> 0.03 |
108,000,000 |
0.057 |
135,500,000 |
| Indicated |
> 0.03 |
223,200,000 |
0.049 |
239,300,000 |
| Measured + Indicated |
> 0.03 |
331,200,000 |
0.051 |
374,800,000 |
| Inferred |
> 0.03 |
36,300,000 |
0.043 |
34,300,000 |
At a cut-off grade of 0.04% molybdenum (Mo), Wardrop estimates measured and indicated Mo resources at the Endako Mine of 211 million tonnes with an average grade of 0.061% Mo and contained Mo of 283 million pounds (75% of which are to Thompson Creek's account). Measured resources are 78 million tonnes at an average grade of 0.065% Mo and indicated resources are 133 million tonnes at an average grade of 0.058% Mo. Inferred resources are 16 million tonnes at an average grade of 0.053% Mo.
| Class |
Cut-off Mo% |
Tonnes |
MO % |
Contained Mo lb |
| Measured |
> 0.04 |
78,200,000 |
0.065 |
112,500,000 |
| Indicated |
> 0.04 |
132,800,000 |
0.058 |
170,300,000 |
| Measured + Indicated |
> 0.04 |
211,000,000 |
0.061 |
282,800,000 |
| Inferred |
> 0.04 |
16,200,000 |
0.053 |
19,100,000 |
The new mineral resource estimates at the Endako Mine were estimated by Greg Mosher, P.Geo., of Wardrop Engineering Inc., a qualified person as defined in National Instrument 43-101, using industry standard three-dimensional block modeling software with Mo grades estimated using inverse distance weighted to the second power. Blocks that were within one bench height of the current pit bottom were classified as measured mineral resource, blocks that contained at least 8 composites within 100 feet were classified as indicated mineral resource and all other interpolated blocks were classified as inferred mineral resource.
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