The project area is comprised of approximately 5,400 acres of patented and unpatented mining and millsite claims. Historical records filed with the Bureau of Land Management in the 1990s identify resources of about 220 million st of ore grading 0.366% MoS2, with a high-grade section containing about 22.5 million st grading 0.701% MoS2.

Thompson Creek has made an initial $500,000 payment toward the option agreement. If Thompson Creek makes additional option payments of $1 million per year on January 1 of each year from 2009 through 2014 and spends $8.5 million on property development by June 30, 2011, it will earn a 15% interest in the property. It can earn a further 35% by spending an additional $35 million (for a total of $50 million) by July 31, 2018. After obtaining a 50% interest, Thompson Creek may elect to form a 50:50 joint venture with U.S. Energy for further development or may choose to raise its interest to 75% by incurring an additional $350 million in project expenditures, for a cumulative total of $400 million.

Thompson Creek will manage the property through the option period. If the property is brought into production, Thompson Creek will purchase U.S. Energy’s portion of output from the mine. Thompson Creek has the right to withdraw from the project and associated payment commitments at any time for any reason and will not assume any existing liabilities on or related to the property until it exercises its right to acquire an ownership interest in the property. The Lucky Jack property is located 3 miles northwest of Crested Butte, Colorado, a ski town. Opposition to mine development is anticipated based on environmental impacts.

Kevin Loughrey, Thompson Creek chairman and CEO said, “As with any project of this magnitude, there are challenges. However, we are confident we can develop this deposit in a manner that is environmentally sound, a boon to the local community, and positive for our shareholders. Projects such as this represent hundreds of long-term jobs, millions of dollars of tax revenues and significant opportunities for the local and state economies.

“Naturally, we will review the details of the project and take a fresh look at all aspects of the previously planned development, and we will seek the input of the residents of the county. In addition, we will work, as we always do, with local, state and federal officials and agencies to ensure that the project is developed in accordance with all applicable laws and regulations. Fortunately, our company has the experience and resources to develop and ultimately reclaim the property in a professional, efficient and environmentally sound manner.”

Thompson Creek Metals owns the Thompson Creek open-pit molybdenum mine and mill in Idaho, a metallurgical roasting facility in Langeloth, Pennsylvania, and a 75% share of the Endako open-pit mine, mill, and roasting facility in northern British Columbia. The company is developing the Davidson deposit, a high-grade underground molybdenum project near Smithers, British Columbia.