Thompson Creek Reported On Davidson Deposit Feasibility Study

TORONTO, ON - Thompson Creek Metals Company Inc. reported announced the results of the feasibility study on the development of the underground Davidson Deposit near Smithers, British Columbia.
"The Davidson Deposit feasibility study indicates positive project economics," said Kevin Loughrey, Chairman and Chief Executive Officer. "This is the case even though we make an assumption that molybdenum prices in the later years of the study will be considerably lower than we are receiving currently. We intend to review the details of the study and make a decision in the next few months on whether to proceed with the project.
"We will also be discussing the project with Sojitz Corporation, our joint venture partner with a 25% interest in the Endako Mine, where the Davidson ore would be processed if the project goes ahead. Sojitz has indicated an interest in partial ownership of the Davidson Deposit.
"While the underground Davidson Deposit within Hudson Bay Mountain (nine kilometres northwest of Smithers) has a considerable measured and indicated mineral resource containing molybdenum, the Company requested a feasibility study on mining only a limited portion of the deposit," Mr. Loughrey stated. "This allows us to mine the molybdenum as soon as possible and provides the best opportunity for our shareholders to benefit from high molybdenum prices.
"Our internal expansion projects, consisting of the proposed Davidson mine as well as the Endako expansion conditionally approved by the Board of Directors on March 13, 2008, will comprise a large part of the Company's capital expenditures in the 2008-2010 period," Mr. Loughrey stated. "Total expansion and sustaining capital expenditures over the three years are expected to be approximately C$600 million, with expenditures in any year ranging from C$150 million to C$300 million depending on project timing. We expect that the Company will be able to fund these capital expenditures from internal cash flow.
"Our Endako joint venture partner, Sojitz Corporation, has approved the planned Endako Mine expansion and will participate in the expansion with the company. This project includes increasing the processing capacity of the mill from 28,000 to 50,000 tonnes per day beginning in 2010. Sojitz will contribute 25% of the C$373.6 million total capital cost for the expansion. Thompson Creek's share of the capital cost will be C$280 million.
The company's address is 401 Bay Street, Suite 2010, P.O. Box 118, Toronto, ON M5H 2Y4, (416) 860-1438, fax: 416-860-0813, email: [email protected].