Terrane Metals Corp.
TSX VENTURE : TRX

Terrane Metals Corp.

May 14, 2008 09:30 ET

Terrane Board Approves Mt. Milligan Feasibility Report

Long Lead Process Equipment Secured Goldcorp Supports Decision

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 14, 2008) - Robert Pease, President and Chief Executive Officer of Terrane Metals Corp. ("Terrane" or the "Company") (TSX VENTURE:TRX) is pleased to announce that the Board of Directors has approved the Feasibility Study Report (the "Report") for its 100%-owned Mt. Milligan Copper-Gold Project ("Project") in British Columbia, Canada and authorized management to proceed with the awarding of a contract for the procurement of long lead-time process plant equipment.

Summary results of the Report were reported in a press release dated March 31, 2008. It describes and recommends a Project Execution Plan for the construction and operation of a conventional truck-shovel open pit mine and 60,000 tpd copper flotation process plant at Mt. Milligan. The Project is in close proximity to existing infrastructure and low cost power and would be built at a capital cost of $917 million. Average annual metal production over a 15.3 year mine life is forecast to be 88 million lb copper and 217,000 oz gold. Commercial production is scheduled for Q1 2012.

A key recommendation of the Report was to initiate the procurement process for long lead-time capital equipment. To that end, and following a competitive tendering process, the Company is pleased to announce that a contract for the procurement of long lead-time process plant equipment has been awarded to Metso Minerals Industries, Inc. ("Metso"). Metso will supply the Primary Crusher, SAG Mill, two Ball Mills and other associated process plant equipment with first delivery scheduled for Q1 2011.

Robert Pease, President and Chief Executive Officer of Terrane, stated: "The awarding of the Metso contract is the first step in a well-defined Project Execution Plan to construct a mine at Mt. Milligan on schedule and within budget. We look forward to on-going consultation with local communities and First Nations to ensure that the implementation of the Project Execution Plan successfully combines long term commercial viability with environmental stewardship."

"We congratulate Terrane on reaching this important milestone in the development of Mt. Milligan," said Kevin McArthur, President and Chief Executive Officer of Goldcorp, Terrane's majority owner. "This large copper-gold project possesses an attractive mix of attributes, including potentially significant gold production and very attractive location and infrastructure. We fully support the decision of the Terrane Board of Directors to move forward on recommendations in the Report."

About the Company

Terrane Metals Corp. is an exploration and mine development company focused on the development of the Mt. Milligan copper-gold and Berg copper-molybdenum-silver projects in British Columbia, Canada. Goldcorp Inc. owns a 58% equity interest in the Company on a fully diluted basis.

TERRANE METALS CORP.

Robert Pease, P.Geo, FGAC, President and CEO

Cautionary Note Regarding Forward Looking Statements

Except for the statements of historical fact contained herein, the information presented in this News Release constitutes "forward-looking statements" as such term is used in applicable Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. In particular, statements concerning Mineral Resource and Mineral Reserve estimates should be viewed as forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements".
Such forward looking statements, including but not limited to, those with respect to the price of metals, the amount of estimated mineralization and of contained metals and the timing of and possible outcome of pending economic evaluations and other factors and events described in this News Release, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of exploration activities; variations in the underlying assumptions associated with the estimation or realization of Mineral Resources and Mineral Reserves, the conclusions of economic evaluations and possible variations in ore grade or recovery rates; costs and timing of the development of new deposits; availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares; accidents, labour disputes and other risks of the mining industry including without limitation those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this News Release and in any document referred to in this News Release.

Forward looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Terrane Metals Corp.
    Rob Pease
    President and CEO
    (604) 681-9930 or Toll Free: 1-866-681-9930
    or
    Terrane Metals Corp.
    Ryan King
    Investor Relations
    (604) 681-9930 or Toll Free: 1-866-681-9930
    Website: www.terranemetals.com