Mt. Milligan is a copper-gold project located approximately 90 miles northwest of Prince George in central British Columbia, Canada. Thompson Creek is in the process of constructing the mine, which is expected to be in production in the fourth quarter of 2013.
Feasibility Study
The Mt. Milligan project is based on a conventional truck-shovel open pit mine and 60,000 tonnes per day (t/d) copper flotation concentrator to be built over a 30-month period at a capital cost of approximately C$915 million. Commercial production is scheduled to commence in 2013. Average annual metal production over a 22-year mine life is forecast to be 81 million pounds (lb) copper and 194,500 ounces (oz) gold. The mine plan has been designed for extraction of higher grade and gold-rich reserves in the early years. In the first six years of the mine plan gold production will average 262,100 oz per year and account for 55% of the revenue. Highlights of the Feasibility Update Study are:
- Gold in reserve 6.0 million oz (second largest gold reserve in Canada)
- Copper in reserve 2.1 billion lb
- Mine life 22 years
- Life-of-Mine strip ratio steady at 0.84/1
- Capital cost currently estimated at C$915 million
CONSTRUCTION AND DEVELOPMENT UPDATE
The development of the mine and the construction of the processing plant are proceeding in accordance with the planned schedule. There are approximately 500 construction personnel currently on site and the Company expects that number to increase as construction activities accelerate.The Company's current capital expenditure estimate to construct and develop the Mt. Milligan mine is C$1.265 billion. Since inception of the project through September 30, 2011, approximately C$383.1 million has been spent (including approximately C$40.0 million spent prior to Thompson Creek's acquisition of Terrane) and an additional C$336.3 million has been committed.
Project engineering, design and procurement are more than 75% complete, construction of the camp is complete and available to house 800 contract workers, purchase orders have been placed for the entire mining fleet, and the key dam structure for water retention is in place. Significant concrete pours have commenced with 13,000 cubic meters poured to date and the major steel supply has arrived for the construction of the mill buildings. The current status of the Mt. Milligan project is consistent with the Company's original construction and development timeline and is on schedule for completion in the third quarter of 2013. For additional information, please visit the Mt. Milligan website at www.mtmilligan.com
MT. MILLIGAN CONSTRUCTION TIMELINE
MT. MILLIGAN RESERVE AND RESOURCE INFORMATION
Mt. Milligan Reserve (October 2009)
| Category | Tonnes (millions) |
Cu (%) |
Au (oz/t) |
Contained Cu lb (million) |
Contained Au oz (million) |
|---|---|---|---|---|---|
| Proven | 302.7 | 0.210 | 0.013 | 1,273 | 3.87 |
| Probable | 229.1 | 0.187 | 0.009 | 851 | 2.16 |
| Total | 531.8 | 0.200 | 0.011 | 2,124 | 6.02 |
Mt. Milligan Resource(1) (Exclusive of Mineral Reserve) (October 2009)
| Category | Tons (millions) |
Cu (%) |
Au (oz/t) |
Contained Cu lb (million) |
Contained Au oz (million) |
|---|---|---|---|---|---|
| Measured | 66.1 | 0.140 | 0.006 | 182 | 0.41 |
| Indicated | 181.1 | 0.150 | 0.006 | 529 | 1.07 |
| Total | 247.2 | 0.140 | 0.006 | 711 | 1.48 |
| Inferred | 22.6 | 0.150 | 0.006 | 70 | 0.14 |
1. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
Click here to view the 43-101 technical report dated October 13, 2009.
