Taseko Mines Limited

Taseko Mines Limited

June 26, 2008 14:55 ET

Taseko Purchases $100 Million in Mining and Milling Equipment

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 26, 2008) - Taseko Mines Limited (TSX:TKO)(AMEX:TGB) ("Taseko" or the "Company") is pleased to announce that it has finalized negotiations for the purchase of the key mining and milling equipment required for the Phase III expansion at its 100% owned Gibraltar copper-molybdenum mine.

The Company has entered into binding agreements to purchase two Bucyrus 495 mining shovels, a Bucyrus 49R production drill, four 240 ton Terex haulage trucks and a 28-foot semi autogeneous grinding ("SAG") mill, which is of sufficient size to process an additional 30,000 tons of Gibraltar ore per day.

The mining equipment is scheduled to be delivered and operational as follows: The trucks in late 2008, one shovel and drill in the spring of 2009, and the second shovel in late 2009. The SAG mill and motors will arrive at the Gibraltar site in May of 2010 for commissioning by August 2010.

Russell Hallbauer, President and CEO of Taseko stated, "We are very pleased to have completed these transactions. Bucyrus committed to an early delivery schedule for the shovels and drill, which will allow us to properly sequence mine development prior to the commissioning of the additional concentrator capacity in 2010. Delivery times for both mining and milling equipment continues to be a problem for many mine developers and this is having a dramatic affect on project time lines and completion dates. With these purchases, we have eliminated any such delays. Since the Phase III expansion requires a relatively small SAG mill, delivery time has been reduced to 20 months from the industry average of 40 months.

The expedited delivery schedule will ensure Gibraltar's production capacity will be increased to 85,000 tons per day by the fourth quarter of 2010, allowing us to capitalize on forecasted high copper prices."

Mr. Hallbauer continued, "A key component to the Phase III expansion is a $20 million upgrade to the molybdenum circuit, which is expected to be operational by the summer of 2009. With the upgraded molybdenum circuit, significantly better performance will be achieved, with average molybdenum production increasing to 3.5 million pounds annually."

For further details on Taseko and its properties, please visit the Company's website at www.tasekomines.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.

Russell Hallbauer, President and CEO

Forward Looking Statements

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include capital market conditions, commodities market prices, exploitation and exploration successes, lack of continuity of mineralization, completion of the mill upgrade on time estimated and at scheduled cost, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's annual Form 20-F filing with the United States Securities and Exchange Commission or the Company's home jurisdiction filings at www.sedar.com.

Neither the TSX Exchange nor the American Stock Exchange accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Taseko Mines Limited
    Brian Bergot
    Investor Services
    (604) 684-6365 or Toll Free: 1-800-667-2114
    (604) 684-8092 (FAX)
    Website: www.tasekomines.com