Operations

The Endako Mine is a primary, surface molybdenum mine located near Fraser Lake, 100 miles northwest of Prince George, British Columbia. The mine is operated as a joint venture with Thompson Creek holding a 75% interest and Sojitz Corporation, a Japanese company, holding a 25% interest.



The Endako Mine is a fully integrated facility that began operations in 1965. It includes a concentrator that processes ore through crushing, grinding, and flotation circuits into molybdenum disulfide concentrate, and a multiple-hearth roasting facility that converts the concentrate into technical grade molybdenum oxide.

Processing capacity at Endako is approximately 31,000 tons of ore per day. In April 2008, the Corporation began an expansion and modernization project that would increase the mill capacity to 55,000 tons per day. While the expansion project was suspended in December 2008 in response to the economic downturn, it was resumed in August 2009. Construction of a new mill building and installation of new processing equipment is expected to be completed by the end of 2011.



The Endako Mine consists of three pits. The Endako Pit, the largest, was the focus of mining activity for many years. In January 2008, mining activity shifted entirely to the Denak West pit and during 2008 the Corporation moved the in-pit crusher from the Endako Pit to an area between the Denak West and Denak East pits and began installing an overland conveyor from that location to the mill. The conveyor commenced transporting ore to the mill in March 2009. Plans call for the creation of a single pit by mining the walls between the three existing pits.

Mine life was estimated in 2007 at approximately 26 years assuming a long-term molybdenum price of US$10 per pound and updated costs. Based on existing mineral reserves, the mine life will be reduced to about 16 years when the new mill is operational and is processing ore at the expected rate of 55,000 tons per day. The Corporation has been conducting exploration drilling in the area that may lead to a revision in mineral resources and reserves and mine life.

Endako Mine - Mineral Reserves*

Category	Tons (millions)	Grade (%Mo)	Contained Mo (millions lbs)
Proven Reserves	135.7	0.051	138.6
Probable Reserves	172.1	0.049	167.7
Proven and Probable - Total	307.8	0.050	306.3

Endako Mine - Mineral Resources*

Category	Tons (millions)	Grade (%Mo)	Contained Mo (millions lbs)
Measured Resources	138.0	0.050	152.2
Indicated Resources	354.1	0.040	311.8
Measured and Indicated - Total	492.1	0.043	463.9
Additional Inferred Resources	76.2	0.033	56.2

*Note: Mineral reserves were estimated by site personnel supervised by Ken Collison, P.Eng., former Thompson Creek Chief Operating Officer, who is a qualified person as defined in National Instrument 43-101. Mineral reserves estimates were as of December 31, 2008 and were based on a cut-off grade of 0.02% Mo, an assumed molybdenum price of US$10 per pound Mo and updated costs. Mineral resources were estimated by Greg Mosher, P.Geo., of Wardrop Engineering Inc., who is a qualified person as defined in National Instrument 43-101. The mineral resources estimates were as of April 30, 2007 and were based on a cut-off grade of 0.02% Mo. The mineral reserves estimates are included in the measured and indicated mineral resources estimates.