Taseko Mines recently released a technical report for its Yellowhead copper project in central B.C., announcing improved economics for a 90,000-tonne-per-day open-pit operation with a mine life of 25 years. 

The Yellowhead copper project is located around 150 kilometres north of Kamloops. Taseko, which also operates the Gibraltar copper and molybdenum mine near Williams Lake, B.C., acquired the project for $13 million in shares in February 2019 as part of its acquisition of Yellowhead Mining Inc. 

According to the new technical report, which summarizes engineering and costs estimates at the pre-feasibility level, the project has an initial capital cost of $2 billion, an after-tax net present value (NPV) of $2 billion at an eight per cent discount rate and an internal rate of return (IRR) of 21 per cent, based on metal prices of US$4.25 per pound for copper. 

The previous technical report from January 2020 calculated the project’s cost at $1.3 billion, the NPV as $700 million after-tax with a 14 per cent IRR and an anticipated copper price of US$3.10 per pound of copper. 

The Yellowhead project is expected to produce an average of 178 million pounds of copper annually at cash costs of US$1.90 per pound. Over the entire life of the mine, production is expected to reach 4.4 billion pounds of copper, 282,000 ounces of gold and 19.4 million ounces of silver. 

“This new technical report establishes Yellowhead as a world-class copper project in a tier one jurisdiction,” said Stuart McDonald, president and chief executive officer of Taseko Mines, in a July 10 press release. “With strengthening copper prices, the project economics have improved significantly since the 2020 technical report. The project now has a $2 billion NPV and the potential to become one of the largest copper mines in North America.” 

McDonald stated that, over the next few years, alongside the permitting process, Taseko will also be advancing engineering, community engagement, copper offtake discussions and project financing initiatives.  

 During operations, the project is expected to support approximately 590 direct jobs and around 1,120 indirect and induced jobs locally. 

Taseko expects that the project will be eligible for the federal Clean Technology Manufacturing Investment Tax Credit, which the company estimated would result in about $540 million of qualifying initial capital costs being reimbursed in the first year of operations. 

On July 8, Taseko also announced the formal commencement of the environmental assessment process for the Yellowhead project. This includes both the provincial and federal regulatory reviews, as well as the Simpcw Process, an Indigenous-led assessment. Additionally, Taseko has signed a Relationship Negotiation Agreement with the Simpcw First Nation to define their role in project oversight and planning, and to establish a long-term economic partnership.