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Reserves and Resources

Mineral Reserves as at 31 December 2019 (1)

  Proven Probable Total  
Tonnes
(000's)
Grade
(%)
Tonnes
(000's)
Grade
(%)
Tonnes
(000's)
Grade
(%)
Teck Interest
(%)
Recoverable Metal
(000 t)(7)
Copper                
Highland Valley Copper 328,700 0.32 155,300 0.28 484,000 0.31 100.0 1,310
Antamina
Copper only ore OP 148,300 0.94 107,100 0.99 255,400 0.96 22.5 510
Copper-zinc ore OP 75,900 0.88 98,300 0.82 174,300 0.85 22.5 260
Total 224,200 0.92 205,500 0.91 429,700 0.91 22.5 770
Quebrada Blanca                
Heap leach ore(2) 1,200 0.09     1,200 0.09 60.0 1
Dump leach ore(2) 3,700 0.31     3,700 0.31 60.0 5
Total leachable ore 4,900 0.25     4,900 0.25 60.0 6
Quebrada Blanca - Mill 710,900 0.51 689,800 0.46 1,400,700 0.48 60.0 3,700
Andacollo                
Heap leach ore(2) 600 0.25 200 0.16 800 0.22 90.0 1
Andacollo - Mill 96,800 0.34 217,800 0.31 314,600 0.32 90.0 790
NuevaUnión                
Relincho 576,400 0.34 977,400 0.35 1,553,800 0.35 50.0 2,390
La Fortuna 396,900 0.57 285,400 0.41 682,200 0.51 50.0 1,500
Total 973,300 0.43 1,262,700 0.37 2,236,000 0.40 50.0 3,890
 
Molybdenum                
Highland Valley Copper 328,700 0.006 155,300 0.009 484,000 0.007 100.0 20
Antamina                
Copper only ore OP 148,300 0.037 107,100 0.033 255,400 0.035 22.5 10
Quebrada Blanca                
Quebrada Blanca - Mill 710,900 0.018 689,800 0.019 1,400,700 0.018 60.0 120
NuevaUnión                
Relincho 576,400 0.014 977,400 0.017 1,553,800 0.016 50.0 60
 
Zinc                
Antamina                
Copper-zinc ore OP 75,900 2.1 98,300 2.2 174,300 2.2 22.5 690
Red Dog                
Mine     50,900 12.9 50,900 12.9 100.0 5,370
 
Lead                
Red Dog                
Mine     50,900 3.6 50,900 3.6 100.0 920
                 

 

  Proven Probable Total  
Tonnes
(000's)
Grade
(g/t)(4)
Tonnes
(000's)
Grade
(g/t)(4)
Tonnes
(000's)
Grade
(g/t)(4)
Teck Interest
(%)
Recoverable Metal
(000 oz)(7)
Gold                
Andacollo - Mill(6) 96,800 0.11 217,800 0.10 314,600 0.10 90.0 640
NuevaUnión                
La Fortuna  396,900 0.54 285,400 0.37 682,200 0.47 50.0 3,400
                 
Silver                
Antamina                
Copper only ore OP(9) 148,300 6.4 107,100 8.1 255,400 7.1 22.5 10,630
Copper-zinc ore OP(9) 75,900 14.2 98,300 13.3 174,300 13.7 22.5 10,910
Total(9) 224,200 9.1 205,500 10.6 429,700 9.8 22.5 21,540
Quebrada Blanca                 
Quebrada Blanca - Mill 710,900 1.4 689,800 1.2 1,400,700 1.3 60.0 24,500
Nueva Unión                
Relincho 576,400 1.6 977,400 1.5 1,553,800 1.5 50.0 24,900
Red Dog                
Mine      50,900 67.7 50,900 67.7 100.0 69,430
                 

 

  Proven Probable Total  
Tonnes
(000's)
Tonnes
(000's)
Tonnes
(000's)
Teck
Interest
(%)
Clean Coal
(000 t)
Metallurgical Coal(3)          
Fording River 74,000 191,200 265,200 100.0 265,200
Elkview 11,900 258,000 269,900 95.0 256,400
Greenhills 11,600 283,400 295,000 80.0 236,000
Line Creek 3,200 41,900 45,100 100.0 45,100
Cardinal River 1,200 200 1,400 100.0 1,400
Quintette (Mt Babcock) 700 35,400 36,000 100.0 36,000
 
Thermal Coal(3)          
Line Creek 500 12,700 13,200 100.0 13,200
Quintette (Mt Babcock)   900 900 100.0 900
           

 

Project Satellite  Proven Probable Total  
Tonnes
(000's)
Grade
(%)
Tonnes
(000's)
Grade
(%)
Tonnes
(000's)
Grade
(%)
Teck Interest
(%)
Recoverable Metal
(000 t)(7)
Copper                
Zafranal 408,800 0.39 32,000 0.21 440,700 0.38 80.0 1,150
                 

 

Project Satellite  Proven Probable Total  
Tonnes
(000's)
Grade
(g/t)(4)
Tonnes
(000's)
Grade
(g/t)(4)
Tonnes
(000's)
Grade
(g/t)(4)
Teck Interest
(%)
Recoverable Metal
(000 oz)(7)
Gold                
Zafranal 408,800 0.07 32,000 0.05 440,700 0.07 80.0 440
                 

 

Notes to Mineral Reserves and Resources Tables

(1) Mineral reserves and resources are mine and property totals and are not limited to our proportionate interests.
(2) For heap leach and dump leach operations, copper grade are reported as % soluble copper rather than % total copper. Soluble copper is defined by an analytical methodology which uses acid and cyanide reagents to approximate the portion of copper recoverable in the heap and dump leach processes.
(3) Coal reserves are reported as tonnes of clean coal.
(4) g/t = grams per tonne.
(5) Coal resources are reported as tonnes of raw coal.
(6) In 2015, an interest in future gold production from the Andacollo mine was sold. Compañia Minera Teck Carmen de Andacollo has agreed to sell and deliver to the purchaser an amount of gold equal to 100% of the payable gold produced from the Carmen de Andacollo mine until 900,000 ounces have been delivered, and 50% thereafter. Reserves and resources are stated without accounting for this production interest.
(7) Recoverable Metal refers to the amount of metal contained in concentrate or cathode copper.
(8) At Zafranal, gold in Oxide material is considered to be non-recoverable.
(9) In 2015, Teck entered into an agreement with a purchaser to deliver silver equivalent to 22.5% of the payable silver sold by Compañia Minera Antamina S.A. until 86 million ounces of silver have been delivered, after which the amount of silver to be delivered will be reduced by one-third.  Reserves and resources are stated without accounting for this production interest.
Source: Annual Information Form

Mineral Resources as at 31 December 2019 (1)

  Measured Indicated Inferred  
Tonnes
(000's)
Grade
(%)
Tonnes
(000's)
Grade
(%)
Tonnes
(000's)
Grade
(%)
Teck Interest
(%)
Copper              
Highland Valley Copper 552,300 0.29 861,600 0.23 270,500 0.20 100.0
Antamina
Copper only ore OP  90,800 0.68 311,900 0.77 588,300 0.81 22.5
Copper-zinc ore OP 28,600 0.79 132,800 1.00 234,800 1.00 22.5
Copper only ore UG          300,700 1.31 22.5
Copper zinc ore UG         171,400 1.28 22.5
Total  119,400 0.70 444,800 0.84 1,295,200 1.02 22.5
Quebrada Blanca              
Quebrada Blanca - Mill 61,700 0.41 1,829,200 0.40 3,491,600 0.37 60.0
Andacollo              
Heap Leach Ore (2) 9,300 0.38 26,900 0.15     90.0
Andacollo - Mill 41,800 0.28 311,600 0.25 62,600 0.25 90.0
NuevaUnión              
Relincho 319,000 0.19 463,000 0.26 724,700 0.36 50.0
La Fortuna 6,600 0.38 151,800 0.53 533,900 0.37 50.0
Total 325,600 0.19 614,900 0.33 1,258,500 0.37 50.0
 
Molybdenum              
Highland Valley Copper 552,300 0.008 861,600 0.009 270,500 0.008 100.0
Antamina              
Copper only ore OP 90,800 0.018 311,900 0.024 588,300 0.029 22.5
Copper only ore UG          300,700 0.021 22.5
Total 90,800 0.018 311,900 0.024 889,000 0.026 22.5
Quebrada Blanca              
Quebrada Blanca - Mill 61,700 0.013 1,829,200 0.016 3,491,600 0.018 60.0
NuevaUnión              
Relincho 319,000 0.006 463,000 0.009 724,700 0.012 50.0
 
Zinc              
Antamina              
Copper-zinc ore OP 28,600 1.4 132,800 1.7 234,800 1.5 22.5
Copper zinc ore UG         171,400 1.5 22.5
Total 28,600 1.4 132,800 1.7 406,200 1.5 22.5
Red Dog              
Red Dog Mine      6,600 9.0 10,900 11.1 100.0
Red Dog District          19,400 14.4 100.0
Pend Oreille 100 8.3 100 7.5 2,400 6.6 100.0
 
Lead              
Red Dog               
Red Dog Mine     6,600 3.0 10,900 6.0 100.0
Red Dog District         19,400 4.2 100.0
Pend Oreille 100 2.0 100 1.0 2,400 1.4 100.0
               

 

  Measured Indicated Inferred  
Tonnes
(000's)
Grade
(g/t)(4)
Tonnes
(000's)
Grade
(g/t)(4)
Tonnes
(000's)
Grade
(g/t)(4)
Teck Interest
(%)
Gold              
Andacollo - Mill (6)  418,800 0.11 311,600 0.09 62,600 0.08 90.0
NuevaUnión              
La Fortuna 6,600 0.31 151,800 0.62 533,900 0.37 50.0
               
Silver              
Antamina              
Copper only ore OP(9)  90,800 6.6 311,900 8.3 588,300 7.6 22.5
Copper-zinc ore OP(9)  28,600 21.4 132,800 17.9 234,800 15.2 22.5
Copper only ore UG(9)          300,700 11.3 22.5
Copper-zinc ore UG(9)          171,400 17.4 22.5
Total(9)  119,400 10.1 444,800 11.2 1,295,200 11.2 22.5
Quebrada Blanca              
Quebrada Blanca - Mill 61,700 1.2 1,829,200 1.1 3,491,600 1.1 60.0
NuevaUnión              
Relincho 319,000 1.0 463,000 1.2 724,700 1.3 50.0
Red Dog               
Red Dog Mine      6,600 55.5 10,900 111.9 100.0
Red Dog District         19,400 73.4 100.0
               

 

  Measured Indicated Inferred  
Tonnes
(000's)
Tonnes
(000's)
Tonnes
(000's)
Teck Interest
(%)
Metallurgical Coal(5)        
Fording River 418,300 921,600 711,300 100.00
Elkview 320,900 146,800 219,000 95.00
Greenhills 179,500 227,600 168,500 80.00
Line Creek 305,100 405,300 417,900 100.00
Cardinal River 33,600 2,500 500 100.00
Quintette (Mt Babcock) 31,800 92,000 114,400 100.00
Mt Duke 24,300 102,400 122,600 92.68
Elco 25,100 115,300 112,300 75.00
CMO Phase II (Martin Wheeler) 102,200 71,700 7,900 100.00
 
PCI Coal(5)        
Cardinal River  1,500 300   100.00
Coal Mountain 56,600 22,900 4,800 100.00
 
Thermal Coal(5)        
Line Creek 7,200 5,800 3,300 100.00
Quintette (Mt Babcock)   200 200 100.00
Mt Duke 200 700 1,300 92.68
Elco 700 6,100 6,000 75.00
CMO Phase II (Martin Wheeler) 2,800 3,700 900 100.00
         

 

Project Satellite  Measured  Indicated  Inferred  
Tonnes
(000's)
Grade
(%)
Tonnes
(000's)
Grade
(%)
Tonnes
(000's)
Grade
(%)
Teck Interest
(%)
Copper              
Galore Creek 256,800 0.72 846,700 0.39 198,100 0.27 50.0
Schaft Creek 166,000 0.32 1,127,200 0.25 316,700 0.19 75.0
Mesaba 244,100 0.47 1,334,100 0.42 1,462,000 0.35 100.0
Zafranal 5,100 0.19 2,300 0.21 62,800 0.24 80.0
San Nicolas 32,400 1.27 76,500 1.12 4,700 1.25 100.0
Molybdenum              
Schaft Creek 166,000 0.021 1,127,200 0.016 316,700 0.019 75.0
Zinc              
San Nicolas  32,400 1.9 76,500 1.5 4,700 0.8 100.0
Nickel              
Mesaba 244,100 0.11 1,334,100 0.10 1,462,000 0.09 100.0
Cobalt              
Mesaba 244,100 0.009 1,334,100 0.007 1,462,000 0.006 100.0
               

 

Project Satellite Measured  Indicated  Inferred  
Tonnes
(000's)
Grade
(g/t)(4)
Tonnes
(000's)
Grade
(g/t)(4)
Tonnes
(000's)
Grade
(g/t)(4)
Teck Interest
(%)
Gold              
Galore Creek 256,800 0.36 846,700 0.23 198,100 0.21 50.0
Schaft Creek 166,000 0.20 1,127,200 0.15 316,700 0.14 75.0
Mesaba 244,100 0.03 1,334,100 0.03 1,462,000 0.03 100.0
Zafranal (8) 5,100 0.04 2,300 0.05 62,800 0.10 80.0
San Nicolas 32,400 0.46 76,500 0.42 4,700 0.23 100.0
Silver              
Galore Creek 256,800 5.8 846,700 3.7 198,100 2.7 50.0
Schaft Creek 166,000 1.5 1,127,200 1.2 316,700 1.1 75.0
Mesaba 244,100 1.2 1,334,100 1.0 1,462,000 0.7 100.0
San Nicolas 32,400 26.0 76,500 23.8 4,700 14.2 100.0
Platinum              
Mesaba 244,100 0.04 1,334,100 0.03 1,462,000 0.04 100.0
Palladium              
Mesaba 244,100 0.12 1,334,100 0.09 1,462,000 0.13 100.0
               

 

Notes to Mineral Reserves and Resources Tables

(1) Mineral reserves and resources are mine and property totals and are not limited to our proportionate interests.
(2) For heap leach and dump leach operations, copper grade are reported as % soluble copper rather than % total copper. Soluble copper is defined by an analytical methodology which uses acid and cyanide reagents to approximate the portion of copper recoverable in the heap and dump leach processes.
(3) Coal reserves are reported as tonnes of clean coal.
(4) g/t = grams per tonne.
(5) Coal resources are reported as tonnes of raw coal.
(6) In 2015, an interest in future gold production from the Andacollo mine was sold. Compañia Minera Teck Carmen de Andacollo has agreed to sell and deliver to the purchaser an amount of gold equal to 100% of the payable gold produced from the Carmen de Andacollo mine until 900,000 ounces have been delivered, and 50% thereafter. Reserves and resources are stated without accounting for this production interest.
(7) Recoverable Metal refers to the amount of metal contained in concentrate or cathode copper.
(8) At Zafranal, gold in Oxide material is considered to be non-recoverable.
(9) In 2015, Teck entered into an agreement with a purchaser to deliver silver equivalent to 22.5% of the payable silver sold by Compañia Minera Antamina S.A. until 86 million ounces of silver have been delivered, after which the amount of silver to be delivered will be reduced by one-third.  Reserves and resources are stated without accounting for this production interest.
Source: Annual Information Form

The reserves information set out below for the Fort Hills mine is based upon evaluations conducted by GLJ, an independent qualified reserves evaluator.

The effective date of the reserves data and other oil and gas information below for Fort Hills is December 31, 2019. Estimates of reserves and projections of production were prepared by GLJ using information provided up to November 30, 2019. The reserves information set out below for Fort Hills is taken from a report prepared by GLJ on January 24, 2020.  All reserves information in this section is based on Teck’s 21.3049% interest in Fort Hills.

Classifications of oil and gas reserves as Proved or Probable are only attempts to define the degree of certainty associated with the estimates. There are numerous uncertainties inherent in estimating quantities of oil reserves. It should not be assumed that the estimates of future net revenues presented in the tables below represent the fair market value of the reserves. There is no assurance that the forecast price and cost assumptions will be attained and variances could be material. The reserves estimates provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater or less than the estimates disclosed.
 

 

Reserve Categories and Resources

For oil and gas, reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on analysis of drilling, geological, geophysical and engineering data; the use of established technology; and specified economic conditions that are generally accepted as being reasonable. Reserves are classified into Proved or Probable according to the degree of certainty associated with the estimates.

Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated Proved reserves.

Probable reserves are those additional reserves that are less certain to be recovered than Proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated Proved plus Probable reserves.

Each of the Proved and Probable reserves categories may be divided into developed and undeveloped categories. All of Teck’s reserves are currently categorized as developed reserves since Fort Hills is now in operation. Undeveloped reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (e.g., construction of a primary extraction facility) is required and the necessary equipment is not yet installed to render them capable of production. 

 

 

Fort Hills Mine

The reserves data presented below summarizes our Proved and Probable reserves and the net present values of future net revenue for these reserves. The reserves data uses forecast prices and costs prior to provision for, and therefore do not take into account, interest, general and administrative expenses or the impact of any hedging activities. In addition, provisions for the abandonment and reclamation of the mines and associated facilities to which reserves have been assigned have been included; all other abandonment and reclamation costs have not been included. These forecasts and other assumptions are taken from the GLJ evaluation report with an effective date of December 31, 2019. Future net revenues have been presented on a before and after tax basis in accordance with National Instrument 51-101.

The future net revenue, development and operating cost, exchange rate, price and other assumptions set out in this “Description of the Business ― Oil and Gas Reserves and Resources ― Fort Hills Mine” section of this Annual Information Form are the estimates or assumptions of GLJ, our independent reserves evaluator. In order to estimate reserves and future net revenues, GLJ makes a number of assumptions, including assumptions regarding inflation rates, currency exchange rates, and prices for oil and other products. For planning, project economics, forecasts, accounting and other purposes, our management makes assumptions regarding those same factors and our assumptions generally differ from those of GLJ. Different assumptions would lead to different present value and net revenue figures, and could affect reserve estimates.

GLJ estimates of capital and operating costs associated with Fort Hills are based on historical costs and Suncor’s estimates, as operator, of future costs, with consideration to those achieved by other oil sands mining projects. These GLJ-estimated costs differ somewhat from those that the Fort Hills partners use for planning and decision-making for the project, which are based on detailed engineering studies. See “Description of the Business ― Energy ― Fort Hills Mine” for a further description of Teck’s estimates regarding costs.

All of our reserves are associated with Fort Hills. Bitumen is the only product type associated with our reserves. Reserves are presented on a gross and net basis. “Gross” in relation to Teck’s interest in reserves means Teck’s working interest as at December 31, 2019 (21.3049%) share before deduction of royalties. “Net” in relation to Teck’s interest in reserves means Teck’s working interest as at December 31, 2019 (21.3049%) share after deduction of royalties.

 

 

Summary of Oil and Gas Reserves
at December 31, 2018
(forecast prices and costs)
(in millions of barrels)
Reserves
Reserves Category
Bitumen
Gross 
Net 
Proved Reserves
 
 
Developed Producing
353
328
Developed Nonproducing
0
0
Undeveloped
0
0
Total Proved Reserves
353
328
Probable Reserves
185
168
Total Proved plus Probable Reserves
538
496
For additional information, please refer to page 70: Annual Information Form 

Definitions for Mineral Reserves and Mineral Resources

Mineral Reserves and Mineral Resources: “Proven” and “probable” mineral reserves and “measured”, “indicated” and “inferred” mineral resources are estimated in accordance with the definitions of these terms adopted by the Canadian Institute of Mining, Metallurgy and Petroleum in November, 2010 updated in May 2014 and incorporated in National Instrument 43-101, Standards of Disclosure for Mineral Projects (“NI 43-101”), by Canadian securities regulatory authorities. 

Mineral resources are reported separately from, and do not include, that portion of the mineral resources classified as mineral reserves.

Metallurgical coal: means the various grades of coal that are used to produce coke which is used in the steel making process.

PCI coal: means coal that is pulverized and injected into a blast furnace.  Those grades of coal used in the PCI process are generally non-coking.  PCI grade coal is used primarily as a heat source in the steel making process in partial replacement for high quality coking coals which are typically more expensive.

Thermal coal: means coal that is used primarily for its heating value.  Thermal coals tend not to have the carbonization properties possessed by metallurgical coals.  Most thermal coal is used to produce electricity in thermal power plants.

The Canadian Institute of Mining, Metallurgy and Petroleum definitions for mineral resources and mineral reserves are as follows:

A “mineral resource” is a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. 

An “inferred mineral resource” is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling.  Geological evidence is sufficient to imply but not verify geological and grade or quality continuity.  An inferred mineral resource has a lower level of confidence than that applying to an indicated mineral resource and must not be converted to a mineral reserve.  It is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration. An inferred mineral resource is based on limited information and sampling gathered through appropriate sampling techniques from locations such as outcrops, trenches, pits, workings and drillholes.  Inferred mineral resources must not be included in the economic analysis, production schedules, or estimated mine life in publicly disclosed prefeasibility or feasibility studies, or in the life of mine plans and cash flow models of developed mines.  Inferred mineral resources can only be used in economic studies as provided under NI 43-101.

An “indicated mineral resource” is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit.  Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation.  An indicated mineral resource has a lower level of confidence than that applying to a measured mineral resource and may only be converted to a probable mineral reserve.  Mineralization may be classified as an indicated mineral resource by the qualified person when the nature, quality, quantity and distribution of data are such as to allow confident interpretation of the geological framework and to reasonably assume the continuity of mineralization.  An indicated mineral resource estimate is of sufficient quality to support a prefeasibility study which can serve as the basis for major development decisions.

A “measured mineral resource” is that part of a mineral resource for which quantity, grade or quality, densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of modifying factors to support detailed mine planning and final evaluation of the economic viability of the deposit.  Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation.  A measured mineral resource has a higher level of confidence than that applying to either an indicated mineral resource or an inferred mineral resource.  It may be converted to a proven mineral reserve or to a probable mineral reserve. Mineralization or other natural material of economic interest may be classified as a measured mineral resource when the nature, quality, quantity and distribution of data are such that the tonnage and grade or quality of the mineralization can be estimated to within close limits and that variation from the estimate would not significantly affect potential economic viability of the deposit.  This category requires a high level of confidence in, and understanding of, the geology and controls of the mineral deposit.

A “mineral reserve” is the economically mineable part of a measured and/or indicated mineral resource.  It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at prefeasibility or feasibility level as appropriate that include application of modifying factors.  These studies demonstrate that, at the time of reporting, extraction could reasonably be justified.

A “probable mineral reserve” is the economically mineable part of an indicated, and in some circumstances, a measured mineral resource.  The confidence in the modifying factors applying to a probable mineral reserve is lower than that applying to a proven mineral reserve.

A “proven mineral reserve” is the economically mineable part of a measured mineral resource. A proven mineral reserve implies a high degree of confidence in the modifying factors.

Methodologies and Assumptions

Mineral reserve and mineral resource estimates are based on various assumptions relating to operating matters, including with respect to production costs, mining and processing recoveries, mining dilution, cut-off values or grades, as well as assumptions relating to long-term commodity prices and, in some cases, exchange rates.  Cost estimates are based on feasibility study estimates or operating history.

Methodologies used in reserve and resource estimates vary from property to property depending on the style of mineralization, geology and other factors.  Geostatistical methods, appropriate to the style of mineralization, have been used in the estimation of reserves at Teck’s material base metal properties.

Assumed metal prices vary from property to property for a number of reasons.  Teck has interests in a number of joint ventures for which assumed metal prices are a joint venture decision.  In certain cases, assumed metal prices are historical assumptions made at the time of the relevant reserve and resource estimates.  For operations with short remaining lives, assumed metal prices may reflect shorter-term commodity price forecasts.

Comments on Individual Operations

Highland Valley Copper

Reserve and resource estimates were prepared assuming long-term metal prices of US$3.00/lb copper, US$9.40/lb molybdenum, US$20.00/oz silver and US$1,300/oz gold and an exchange rate of CAD$1.25 per US$1.00.  Reserves and resources are reported at a 0.10% copper equivalent cut-off and a 1.8 molybdenum factor. This copper equivalent cut-off equals a net smelter return of US$5.19 per tonne.

There was a net decrease of 51 million tonnes of Proven and Probable reserves in 2019 mostly as a result of normal mining activity.  Resources significantly increased by 347 million tonnes when compared to 2018, primarily because of lower operating costs and higher assumed USD to CAD exchange rate. The resource estimate at Highland Valley is extremely sensitive to changes in these assumptions.

Antamina

Open pit reserve estimates were prepared assuming long-term metal prices of US$3.084/lb copper, US$1.08/lb zinc, US$8.7/lb molybdenum and US$17.39/oz. silver. Open pit and underground resource estimates were prepared assuming long-term metal prices of US$3.30/lb copper, US$1.23/lb zinc, US$10.0/lb molybdenum and US$19.95/oz silver.

Cut-off grades at Antamina are based on the net value before taxes that the relevant material is expected to generate per hour of concentrator operation at assumed prices, and varies by year in an effort to maximize the net present value of the pit.

The total, open pit and underground resources reported in 2019 are 564 million tonnes of Measured and Indicated and close to 1.3 billion tonnes of Inferred. These figures are similar to those reported in 2018.

Quebrada Blanca

Supergene reserves have been fully depleted in 2018 and only mineral resources are being reported.  The Quebrada Blanca (hypogene) reserve and resource estimates were prepared assuming a long-term copper price of US$3.00/lb and a long-term molybdenum price of US$9.40/lb.

The hypogene mineral reserves remain at 1.4 billion tonnes and are limited by the current tailings storage capacity. Ongoing infill and resource delineation drilling continues to improve confidence in resource categories and increasing the resource basis. An additional 28,200 metres of drilling with assays results was incorporated in the current model that reports a 14% increase in resources from 2018, totaling 1.89 billion tonnes of measured and indicated resources and another 3.49 billion tonnes of inferred resources.

Carmen de Andacollo

Our Carmen de Andacollo Operations include a heap leach copper operation and a copper-gold hypogene concentrator.  The year-end 2019 reserves and resources are supported by updated resource models that incorporate over 3,000 metres of new drilling and improved economic assumptions related to operational costs and higher long-term gold prices compared to 2018.   

Hypogene reserve estimates assume long-term metal prices of US$3.00/lb copper and US$1,300/oz gold.  Mineral reserves show a very small reduction from 2018 due to depletion from normal mining activities offset by improved costs and changes in mine design.  Hypogene resources show a second-year increase of 75 million tonnes in comparison to 2018, due mostly to favourable operating costs, additional drilling and improved process recoveries.

NuevaUnión

Teck has a 50% interest in NuevaUnión. As of the end of 2019, a feasibility study on the NuevaUnión project was nearing completion.  Reserves and resources for two deposits, Relincho and La Fortuna have been updated based on the results of this study. Reserves at Relincho and La Fortuna deposits consider a bulk open-pit mining operation that will be developed in three production phases that will alternate mining operations between the two deposits.

Relincho mineral reserves and mineral resources are reported using an average net smelter return cut-off of US$11/tonne and US$6.72/tonne, respectively. It assumes metal prices of US$ 3.00/lb copper and US$ 10.0/lb molybdenum.

La Fortuna mineral reserves and open pit mineral resources are reported using an average net smelter return cut-off of US$9.14.0/tonne and US$9.12.0/tonne, respectively. It assumes metal prices of US$ 3.00/lb copper and US$ 1,200/oz gold. Mineral resources outside of the mineral reserve pit are defined using a conceptual underground mining envelope. This approach assumes the same recoveries, metal prices, processing and general & administration costs as used for the open pits but with mining costs and dilution assumptions that are more appropriate to bulk underground mining.

Red Dog

Teck reports reserves and resources for Red Dog divided into two reporting groups based on the spatial proximity and the land ownership associated with the deposits in and around Red Dog. The names assigned to these groups are “Mine” and “District”. 

In the “Mine” group, Teck is currently operating two deposits accessible by open pit mining: Aqqaluk, and Qanaiyaq. The Aqqaluk deposit, with first ore milled in August 2010, has had its operations extended to 2032.  Mining of the Qanaiyaq deposit started with first ore milled in January 2017 and is planned to have a life span through 2028. The Red Dog Mine area also contains the undeveloped Paalaaq deposit, which is currently only defined to a resource level of confidence.

All reserves and resources were estimated using long-term metal prices: US$1.10/lb for zinc, US$0.90/lb for lead and US$20.00/oz for silver.  Red Dog Mine reserve tonnage is down 5.1 million tonnes from 2018, due primarily to normal depletion from mining operations. Higher operating costs are primarily responsible for the reduction of 3.4 million tonnes of Red Dog Mine resources.

The “District” group consists entirely of Inferred resources from the Anarraaq deposit which lies approximately 11 km northwest of the current Red Dog operations.  Inferred resources for this deposit are unchanged, at 19.4 million tonnes, from 2018.

Pend Oreille

The operation is in care and maintenance and a decision was made to convert the remaining mineral reserves back in to resources. The resource models were updated in 2019 with short-term in-fill drilling.

The resources for Pend Oreille are estimated using a 4.0 % zinc+lead cut-off. Recovery is expected at 89.5% for zinc and 60% for lead. Commodity prices assumptions were US$1.10/lb zinc and US$0.90/lb for lead.

San Nicolás

The 2019 reported resource estimates are unchanged from 2018. The estimates assume different net smelter return cut-offs for different geometallurgical domains from US$9.20/tonne to US$12.00/tonne based on an estimate of the marginal cost of production for the relevant ore.  Net smelter return calculations include metal price assumptions as US$3.00/lb copper, US$1.10/lb zinc, US$1,250/oz gold and US$20/oz silver and scaled costs from previous studies. 

Galore Creek

Teck has a 50% interest in Galore Creek. Following the change in ownership of the Galore Creek partnership, new drilling, and a re-interpretation of existing geological information was completed during 2019. A resource update is scheduled to be completed in support of ongoing technical studies. The year-end 2019 statement reports unchanged resource figures from 2018 and are estimated based on commodity prices of US$3.00/lb copper, US$1,200/oz gold and US$20/oz silver and a US$8.84/tonne net smelter return cut-off.

Schaft Creek

Schaft Creek resources are based on a 2018 Resource Model Update.  Open pit mineral resources are reported at a net smelter return cut-off of US$4.31/tonne and constrained by a conceptual open pit shape.  The resource estimate categorizes 10% of the mineral resources as Measured, 70% as Indicated and 20% as Inferred.

Mesaba

Year-end 2019 statement reports unchanged figures from 2018 cycle when mineral resources were reported for the first time. The estimates are based at a cut-off of 0.2% copper, equivalent to a net smelter return cut-off of US$5.24/tonne, and consider the estimates of copper, nickel, silver, cobalt, gold, platinum and palladium.

Zafranal

No changes to the resource and reserve statements in 2019. Figures reported at the end-of-year 2018 were supported by a feasibility study prepared for Compañia Minera Zafranal S.A.C. 

Resource and reserves estimates at Zafranal were prepared using price assumptions of US$3.00/lb copper and US$1,200/oz gold. Mining and processing costs, as with other important input parameters, were updated from the prefeasibility study. The total contained metal used in the reserves table are based on variable metallurgical recoveries of up to 89.5% for copper and up to 56% for gold.  Open pit mineral reserves are reported using a variable net smelter return cut-off of US$6.10 to $6.35/tonne averaging US$6.11/tonne.

Fording River

The reserve economics assume a long-term selling price at the Port of Vancouver of US$140/tonne for metallurgical coal at an exchange rate of CAD$1.25 per US$1.00.

Elkview

Teck has a 95% interest in the Elkview mine.  The reserve economics assume a long-term selling price at the Port of Vancouver of US$140/tonne for metallurgical coal at an exchange rate of CAD$1.25 per US$1.00.

Greenhills

Teck is an 80% partner in the Greenhills Joint Venture.  The reserve economics assume a long term selling price at the Port of Vancouver of US$140/tonne for metallurgical coal at an exchange rate of CAD$1.25 per US$1.00.

Line Creek

The reserve economics assume a long term selling price at the Port of Vancouver of US$140/tonne for metallurgical coal and US$75/tonne for oxide coal at an exchange rate of CAD$1.25 per US$1.00.

Cardinal River

Mine operations at Cardinal River Operations will cease in 2020 and remaining reserves will be converted back to resources.  The current reserves estimates are based on a long term selling price at the Port of Vancouver of US$140/tonne for metallurgical coal and at an exchange rate of CAD$1.25 per US$1.00.

Quintette (Mt Babcock)

The reserve economics assume a long-term selling price of US$140/tonne for metallurgical coal and US$75 for oxide coal at an exchange rate of CAD$1.25 per US$1.00.

Risks and Uncertainties

Mineral reserves and mineral resources are estimates of the size and grade of the deposits based on the assumptions and parameters currently available.  These assumptions and parameters are subject to a number of risks and uncertainties, including, but not limited to, future changes in metals prices and/or production costs, differences in size, grade, continuity, geometry or location of mineralization from that predicted by geological modeling, recovery rates being less than those expected and changes in project parameters due to changes in production plans.  Except as expressly described elsewhere in this Annual Information Form, there are no known environmental, permitting, legal, title, taxation, sociopolitical, marketing or other issues that are currently expected to materially affect the mineral reserves or resources. Certain operations will require further permits over the course of their operating lives in order to continue operating. Where management expects such permits to be issued in the ordinary course, material that may only be mined after such permits are issued is included in Proven and Probable reserves. Specific current permitting issues are described in the narrative concerning the relevant operation under the headings “Description of the Business” and “Health and Safety and Environmental Protection” and “Risk Factors — We face risks associated with the issuance and renewal of permits.”

Qualified Persons

Estimates of mineral reserves and resources for our base metal properties have been prepared under the general supervision of Rodrigo Marinho, P.Geo., who is an employee of Teck Resources Limited and the Qualified Person for the purposes of NI 43-101 for our base metal properties (other than Antamina).  Mineral reserve and resource estimates for Antamina have been prepared under the supervision of Fernando Angeles P.Eng. and Lucio Canchis, who is an SME Registered Member, and who are both employees of Compañía Minera Antamina S.A.  Messrs. Canchis and Angeles are the Qualified Persons for the purposes of NI 43-101 in respect of Antamina.  Reserve and resource estimates for coal properties were prepared under the general supervision of Don Mills P.Geo. and Robin Gold P.Eng., employees of Teck Coal Limited, who are the Qualified Persons for coal properties for the purposes of NI 43–101. 

Source: Annual Information Form 
Teck

Teck is a diversified resource company committed to responsible mining and mineral development with business units focused on copper, zinc, steelmaking coal and energy.