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Aley has an inferred resource of 159 million tonnes grading 0.43% Nb2O5; the resource estimate is based on drill data gathered from Taseko's 2010 drilling program, along with historical drill data. The data formed the basis for the development of a geological model incorporating mine engineering studies.
The company plans to accelerate work on the project in 2011, with a comprehensive work program planned. Additionally, an extensive core drilling program is planned to collect preliminary geo-technical data for site design and metallurgical testwork. Thee information gathered during the 2011 work program season will be used to convert the inferred resources into a measured and indicated reserve in 2012.
Inferred Mineral Resource
The in-pit inferred mineral resource for the Central Zone of the Aley Deposit is summarized in the table below for a range of cutoff grades with the base case of 0.2 % Nb2O5 in boldface.
Inferred Mineral Resource Estimate
| COG % Nb2O5 |
Tonnes 000's |
Grade % Nb2O5 |
| 0.10 | 187,743 | 0.39 |
| 0.15 | 172,151 | 0.41 |
| 0.20 | 158,892 | 0.43 |
| 0.25 | 146,437 | 0.45 |
| 0.30 | 127,481 | 0.47 |
The 0.20% Nb2O5 cut-off assumes a metal price of US$50.00/kg Nb with process recovery of 50%. G & A, processing and ore mining costs were assumed to be $30/tonne milled with waste mining costs of $1.50/tonne. A 45°wall slope LG pit was generated to constrain the resource within the block model. Detailed engineering studies will determine the optimal cut-off.
The resource estimate was prepared by Ronald G. Simpson, P.Geo. with Geosim Services Inc., a Qualified Person independent of Taseko, The qualified person reviewed and approved the contents of this release.
Exploration History
The Aley deposit was discovered in 1980 by Cominco. From 1983-1986, approximately 10,000 feet of diamond drilling was completed in 20 holes, outlining near surface mineralization in the range of 20-30 million tonnes.
In 2007, Taseko acquired the project. Following the acquisition, Taseko initiated an exploration program to confirm Cominco's historical work.
In 2010, an additional exploration program was completed. The program comprised geological mapping and diamond drilling of 23 drill holes (2010-12 through 2010-34), for a total of 4,460 metres. Assay results for 21 of these drill holes have been received. These holes intersected excellent grade niobium mineralization across an area measuring over 900 metres east-west and 350 metres north-south. Mineralized drill intercepts range up to over 200 metres in length. Niobium mineralization intersected is highly continuous and close to surface. The extensive body of niobium mineralization indicated by the 2010 drilling is wide open to expansion in at least three directions and to depth.
Highlight intersections from the 2010 drill program are as follows:
Drill Hole |
From |
To |
Intercept2 |
Intercept2 |
Nb2O5 |
Ferro |
2010-012 |
9.1 |
134.4 |
125.3 |
411 |
0.53 |
3.41 |
2010-014 |
14.6 |
91.5 |
76.9 |
252 |
0.67 |
4.28 |
2010-021 |
6.3 |
140.4 |
134.1 |
440 |
0.70 |
4.48 |
2010-022 |
6.7 |
150.8 |
144.1 |
473 |
0.57 |
3.64 |
2010-023 |
4.6 |
146.3 |
141.7 |
465 |
0.82 |
5.23 |
2010-030 |
45.1 |
198.3 |
153.2 |
503 |
0.52 |
3.31 |
2010-033 |
6.1 |
213.4 |
207.3 |
680 |
0.66 |
4.20 |
Note 1: Ferro niobium (FeNb) content is calculated assuming 60% recovery and 5% conversion loss (Nb2O5 x 6.38).
Note 2: True thicknesses of reported intervals have yet to be established.
Drill Location Plan & Cross Sections (PDF)
Niobium
It is a rare, soft, grey, ductile metal.
Applications
Niobium in the form of ferro niobium is used as an alloying element in steels and in the production of superalloys such as those used in the, automotive, aviation, pipeline and the power generation sectors.
Form of Niobium |
Applications |
| Ferro niobium |
Stainless and heat-resistant steels: Automobiles, petrochemical, and power plants |
| Vacuum-grade ferro-niobium and nickel-niobium | Superalloys: aircraft engines, electricity generation, petrochemicals |
| Nb metal and alloys Niobium-germanium (Nb3Ge), niobium-tin (Nb3Sn) |
Superconductors: particle accelerators, magnetic resonance imaging (MRI), various small-tonnage uses |
| Nb chemicals |
|
The Niobium Market
There is a growing demand for niobium. Global annual consumption of ferro niobium is over 200 million pounds per year and growing at 5-7% per year.
Europe and North America are importing the majority of niobium's supply, with some usage accounted to China, Japan, and other countries. China is notably the fastest growing market. The country's stainless steel production growth averaged 45% per year in the 2000's. This will offer increased demand for the metal because niobium use in steel production is expected to rise from 10% to 20%.
In addition, demand will grow as the automobile and construction markets continue to recover from the economic downturn seen in 2008 and 2009.
Worldwide Niobium Production
Currently, the world supply is dominated by only three producers. Two Brazilian mining companies supply 95% of the world's niobium and IAMGOLD, which operates the Niobec Mine in Quebec, supplies 5%.
