Thompson Creek Mine
Challis, Idaho
Open-pit mine with 10-year mine life based on proven and probable reserves
The Thompson Creek Mine has produced molybdenum concentrate since 1983. Most of the concentrate is currently shipped by truck to the Company's Langeloth Metallurgical Facility for further processing.
The mine has an estimated minimum 10-year mine life based upon proven and probable mineral reserves (see tables below for detailed mineral resources and mineral reserves estimates) as estimated as of September 30, 2007.
The new reserves estimate represents the first of a two-part reserves re-evaluation of Thompson Creek Mine's potential and will be followed up with additional drilling that is expected to lead to a second revision of the reserves estimate in 2008.
The first part of the reserves estimate evaluates the existing pit and previous drilling results on the basis of a molybdenum price of US$10 per pound and updated costs, compared to the previous evaluation at a US$5 per pound price. Most of the previous drilling, done 25 years ago, stopped at the level of 6,000 feet above sea level. The mine owners at the time had enough information to justify production and chose not to drill any deeper. Preliminary indications suggest the deposit continues below the 6,000-foot level. In order to confirm the continuity of the deposit, the Company is engaged in exploration drilling at the bottom of the pit. The Company also intends to carry out some drilling activity outside of the pit to determine the extent of resources on the land it owns around the pit.
The updated mineral resources and reserves were estimated by Scott Wilson Roscoe Postle Associates Inc. ("Scott Wilson RPA") in accordance with the CIM Standards.
| Category Reserves |
Tonnes (million) |
Grade (%Mo) |
Contained Mo (million lbs)* |
| Proven |
39.2 |
0.104 |
90.3 |
| Probable |
59.5 |
0.094 |
123.2 |
| 2P Total |
98.8 |
0.098 |
213.5 |
| Category Resources |
Tonnes (million) |
Grade (%Mo) |
Contained Mo (million lbs)* |
| Measured |
69.6 |
0.087 |
133.5 |
| Indicated |
162.5 |
0.072 |
258.0 |
| M+I Total |
232.1 |
0.076 |
391.5 |
| Category Resources |
Tonnes (million) |
Grade (%Mo) |
Contained Mo (million lbs)* |
| Inferred |
139.5 |
0.043 |
132.2 |
* Estimates by Scott Wilson Roscoe Postle Associates, based on a cut-off grade of 0.03%, Assumed molybdenum price of US$10 per pound, and updated costs, as of September 30, 2007. William E. Roscoe, P.Eng., and John T. Postle, P.Eng., are the qualified persons as defined in National Instrument 43-101 for the resource and reserves estimate. 2P mineral reserve estimate is included in the M+I mineral resources. Numbers may not add due to rounding.
Scott Wilson RPA also reviewed the Company's new 10-year mine plan and concluded that "the production targets, mine operating cost forecasts, and the capital cost forecasts are reasonable."
The mine plan calls for production of 194.9 million pounds of molybdenum in the 10.25 years from October 1, 2007 to December 31, 2017 (192.1 million pounds for the 10-year period 2008 to 2017).
Details of the Scott Wilson RPA report are available as a National Instrument 43-101 technical report filed on SEDAR. To view the report, click here.
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