Slide 1: Florence Copper Site Tour
Florence Copper Site Tour October 16, 2018 1
Slide 2: Forward Looking Statements
Forward Looking Statements Some of the statements contained in the following material are "forward-looking statements". All statements in this release, other than statements of historical facts, that address estimated mineral resource and reserve quantities, grades and contained metal, and possible
Slide 3: Discussion Topics
Taseko Mines Limited Discussion Topics • General Overview • PTF Pre-Operations Test Results • Benefits of the PTF • Timeline to Commercial Production • Financing 3
Slide 4: General Overview
General Overview 4
Slide 5: History
General Overview History 1960 American Smelting & Refining Co. (ASARCO) undertakes early exploration Continental Oil Company (Conoco) records first copper intercepts 1970 - 1976 Conoco constructs two 700' shafts and one mile of cross-cuts and performs on-site testing Acquired by Magma Copper Company
Slide 6: A Near Term, Low Cost Copper Producer
General Overview A Near Term, Low Cost Copper Producer Location: Central Arizona near the community of Florence Ownership: 100% (acquired in 2014 for US$70 million) 345 million tons grading 0.36% TCu (at a 0.05% total Mineral copper cutoff) containing 1.7 billion pounds of recoverable Reserves: copp
Slide 7: 2017 Technical Study
General Overview 2017 Technical Study • In January 2017, Taseko announced the results of a two-year metallurgical test program as well as an optimization of the project well field development sequence • The updated data was used to re-cost the project which resulted in a significant improvement in p
Slide 8: In-situ recovery process flow
General Overview Solvent Extraction Electrowinning Tankhouse Evaporation Pond Cathode In-Situ Recovery area Taseko) :
Slide 9: A Rare Hydrogeological Opportunity
General Overview A Rare Hydrogeological Opportunity The quartz monzonite host rock with chrysocolla copper mineralization The oxide zone at Florence is an extensively fractured, porous bedrock Saturated nature of the deposit make it ideal for ISCR Underlying and overlying deposits provide ad
Slide 10: A Rare Hydrogeological Opportunity
General Overview A Rare Hydrogeological Opportunity 10
Slide 11: Injection and Recovery Well Construction
General Overview Injection and Recovery Well Construction 0 ft 1. Surface Casing – 24” dia. Upper Rock Units 2. Upper Drilling 3. Steel Casing -12” dia. 4. Outer Cement 5. Lower Drilling Exclusion Zone 6. Two Part Casing – 5” dia. 500 ft 7. Lower Media Packing 540 ft 8. Inner Cement – Well Complete
Slide 12: 5-Spot Well Pattern
General Overview 5-Spot Well Pattern 12
Slide 13: PTF Wellfield Plan View
General Overview PTF Wellfield Plan View Injection Well Recovery Well Observation Well Sampling Well 13
Slide 14: Commitment to Water Protection
General Overview Commitment to Water Protection ADEQ and USEPA compliance wells act as a security perimeter around the site LEGEND: NEW 14
Slide 15: Commitment to Water Protection
General Overview Commitment to Water Protection 15
Slide 16: Commitment to Environmental Protection
General Overview Commitment to Environmental Protection Conventional Florence ISCR Open Pit Mine Energy Consumption- (kWh/lb Cu) 2 7 71% lower Fresh Water Use – (gal/lb Cu) 3 41 93% lower Carbon Emissions – (kg CO2/lb Cu) 1 6 83% lower Additionally: • no mine tailings or waste rock for long-term sur
Slide 17: Economic Impact to Florence, Pinal County and Arizona
General Overview Economic Impact to Florence , Pinal County and Arizona 17
Slide 18: Jobs Created by Florence
General Overview Jobs Created by Florence 18
Slide 19: Our Commitment to the Community
General Overview Our Commitment to the Community 19
Slide 20: Our Commitment to the Community
General Overview Our Commitment to the Community 20
Slide 21: PTF Pre-Production Test Results
PTF Pre- Production Test Results 21
Slide 22: PTF Pre-Production Test Results
PTF Pre-Production Test Results Formation Test Monitoring Well Injection Well Recovery Well Observation Well Sampling Well 22
Slide 23: PTF Pre-Production Test Results: Formation Test
PTF Pre-Production Test Results Formation Test Results Hydraulic properties in the wellfield confirm the groundwater model • Confirmed that the hydraulic conductivity between the wellfield and the monitoring and compliance wells to demonstrate that the planned pumping will create a cone of depress
Slide 24: PTF Pre-Production Test Results: Wellfield Tracer Test
PTF Pre-Production Test Results Wellfield Tracer Test PTF Wellfield – Plan View Injection Well Recovery Well Observation Well Sampling Well 24
Slide 25: Wellfield Tracer Testing – Day 1
PTF Pre-Production Test Results Wellfield Tracer Testing – Day 1 Injection Recovery Injection Top of Deposit 25
Slide 26: Wellfield Tracer Testing – Day 3
PTF Pre-Production Test Results Wellfield Tracer Testing – Day 3 Injection Recovery Injection Top of Deposit 26
Slide 27: Wellfield Tracer Testing – Day 7
PTF Pre-Production Test Results Wellfield Tracer Testing – Day 7 Injection Recovery Injection Top of Deposit 27
Slide 28: PTF Pre-Production Test Results: Pre-Operational Test
PTF Pre-Production Test Results Pre-Operational Test PTF Wellfield – Plan View Injection Well Recovery Well Observation Well Sampling Well 28
Slide 29: Pre-Operational Test Results
PTF Pre-Production Test Results Pre-Operational Test Results The cone of depression created by the planned PTF pumping is sufficient to maintain hydraulic control of solutions 29
Slide 30: Benefits of the PTF
Benefits of the PTF 30
Slide 31: Benefits of the PTF: Hydrology and Metallurgy
Benefits of the PTF Hydrology and Metallurgy Confirm scale-up and reduce initial commercial operations risk • Demonstrate: o hydraulic control of solutions o suitability of permit conditions o production flow rates through orebody • Validate: o hydraulic control pumping requirements o sweep effici
Slide 32: Benefits of the PTF: Wellfield and SXEW
Benefits of the PTF Wellfield and SXEW Refine designs and plans for commercial facility • Gained experience drilling and constructing wells • Test effectiveness of packers for targeting solution flow • Test commercial scale wellfield: o equipment o materials of construction o Instrumentation and c
Slide 33: Permitting / Timeline
Permitting / Timeline 33
Slide 34: Permitting
Permitting All Required Permits for PTF are in Place GOVERNMENT PERMIT/AUTHORIZATION DESCRIPTION STATUS AGENCY United States Environmental Protection Agency (EPA) Underground Injection Control Permit Memorandum of Agreement with the Arizona State Historic Preservation Office & the Advisory Council
Slide 35: Permitting: Key Permits for Commercial Operations
Permitting Key Permit & Authorizations for Commercial Operations GOVERNMENT PERMIT/AUTHORIZATION DESCRIPTION AGENCY United States Environmental Amend Underground Injection Control Permit Protection Agency (EPA) Update Programmatic Agreement with the Arizona State Historic Preservation Office & the A
Slide 36: Timeline to Commercial Production
Timeline to Commercial Production PTF Operations (12-14 months) Commercial Permitting (9-12 months) Start Leaching Engineering (12-14 months) Commercial Facility Construction (14-18 months) Cathode Production January 30-36 Months 2019 36
Slide 37: Financing
Financing 37
Slide 38: Financing
Financing Project capital requirements*: • Capex – US$205 million (incl. US$37 million contingency) • Reclamation bonding – TBD (estimate US$40-50 million) Taseko financial position (June 30, 2018): (C$ millions) Cash $ 52 Debt: Senior secured notes (US$250) $319 Maturing June 2022, callable in June
Slide 39: Financing Options
Financing Financing Options 1. Senior Secured Debt • Existing bonds are secured by Taseko’s investment in Gibraltar Mine, but not Florence • Bond indenture allows for up to US$150mm of ‘first lien’ debt • US$100mm general and credit facilities basket +US$50mm equipment financing • Project level debt
Slide 40: Financing Options
Financing Financing Options 4. Offtake Financing: • Florence cathode or Gibraltar concentrate 5. Bond Market (high-yield debt) • TKO Senior Secured Notes currently trading at ~102% • Potential for add-on offering under the existing indenture • Or refinance prior to June 2022 maturity date. 6. Royalt
Slide 41: Process and Timing
Financing Process and Timing • Cutfield Freeman engaged as independent advisor – October 2018 • Preliminary lender discussions in Q1 2019 • Engage independent engineer • Formal lender proposals in Q3 2019 • Targeting to have committed financing in place by end of 2019 41
Slide 42: Thank You! Questions?
Thank You! Questions? 42 42
Slide 43: NI 43-101 Compliance
NI 43-101 Compliance Unless stated otherwise, Taseko Mines Limited (the “Company”) has prepared the technical information in this presentation including Mineral Reserve Mineral Resource estimates (“Technical Information”) based on information contained in the technical reports and news releases (col