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REGIONAL NEWS - U.S. & CANADA Thompson Creek Metals Cuts Stripping Plans Stillwater Advancing Montana Development Projects Stillwater Mining reported in early October 2012 that it is making progress on the Blitz and Graham Creek under- ground mine development projects on the J-M Reef near its existing underground platinum group metals (PGM) mines in south-central Montana. The Blitz project is located east of the Stillwater mine, and the Graham Creek project is located west of the Boulder Creek mine. Thompson Creek plans to save an estimated $100 million in operating costs, plus an additional $8-$9 million in capex, by suspending next-phase stripping operations and laying off miners. (Photo courtesy Thompson Creek Metals) Thompson Creek Metals has suspended stripping activity associated with the next phase of production, referred to as Phase 8, at its Thompson Creek molybdenum mine in central Idaho. Mining operations will continue as planned through 2014 in the current phase of production, referred to as Phase 7. As a result of this change, between now and 2014, the company expects to save approximately $100 mil- lion in operating costs and $8 million to $9 million in capital expenditures, as well as reducing the mine workforce by about 100 workers. The company expects to restart strip- ping of Phase 8 of the mine plan when market conditions warrant. Kevin Loughrey, chairman and CEO of Thompson Creek, said, "As a result of continuing weakness and uncertainty in the world economy, we have decided to reduce our costs, strengthen our balance sheet, and conserve cash. This will allow for greater certainty in accessing our existing financings in order to complete the development of our Mt. Milligan cop- 8 E&MJ; • NOVEMBER 2012 per-gold project in British Columbia, while we preserve the assets at Thompson Creek until market conditions strengthen." The Thompson Creek mine is expect- ed to produce 20 million–22 million lb of molybdenum in concentrate in 2013 and 17 million–19 million lb in 2014. Assuming stripping is not restarted prior to 2015, cash costs are expected to be approximately $4.75 to $5.75/lb in 2013 and $5.00 to $6.00/lb in 2014. If stripping has not recommenced by 2015, the company plans to place the mine on care and maintenance at that time. If the company decides to recommence strip- ping prior to 2015, it will revise its guid- ance with respect to costs, but it expects that molybdenum production guidance should not be affected. Thompson Creek Metals' Langeloth roasting facility in Pennsylvania will continue to treat material from the Thompson Creek mine, third party-pur- chased concentrates, and tolled molyb- denum concentrates. At the Blitz project, a recently acquired tunnel-boring machine (TBM) is in place and operational. The project will be in development for about five more years and involves three interdependent initiatives: a TBM drive extending about 23,000 ft (7,000 m) to the east from the existing Stillwater mine infrastructure; a second underground drift to be conven- tionally driven parallel to and about 600 ft (183 m) above the TBM drive; and a new surface portal and decline to be located about 4 miles east of existing Stillwater Mine facilities. The new surface portal will be conventionally driven from surface and ultimately will intercept the two primary Blitz tunnels, providing ventilation and emergency egress for the Blitz area. The TBM drive, parallel drift, and sur- face portal and decline are designed to provide the backbone for future mining in the Blitz project area and will cost an estimated $180 million, of which approximately $33.4 million had been spent through September 2012. The Blitz project is intended to strengthen Stillwater Mining's ore reserve position by establishing access to previously un- developed portions of the J-M Reef, with the potential for expanding mine produc- tion rates in the future. Ore produced from the Blitz project would be processed at the Stillwater mine mill, which has excess permitted capacity. The Blitz project remains on track for completion in 2017. At the Graham Creek project, Stillwater Mining is using one of the original East Boulder Mine TBMs to develop 8,200 ft to the west of the existing East Boulder in- frastructure. Total Graham Creek TBM development footage through September www.e-mj.com