Terrane Metals Corp.
TSX VENTURE : TRX

Terrane Metals Corp.

August 21, 2007 09:15 ET

Terrane Metals Corp.: New Mt. Milligan Resource Estimate 1.9 Billion lb Copper and 5.5 Million Oz Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 21, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Robert Pease, President and CEO of Terrane Metals Corp. ("Terrane" or the "Company")(TSX VENTURE:TRX), is pleased to announce the completion of a NI 43-101 compliant mineral resource estimate for the Mt. Milligan Copper-Gold Project, British Columbia.

Measured and Indicated resources total 417.1 million tonnes grading 0.21% Cu and 0.41 g/t Au or 1.9 billion pounds of contained copper and 5.5 million ounces contained gold. Robert Pease stated; "This base case estimate demonstrates that Mt. Milligan is a world-class copper-gold resource. We look forward to reporting on the economic viability of this resource as we near the completion of a 14 month - $20 million feasibility level work program."

The reported estimate as shown in Table I was completed by Independent Mining Consultants ("IMC"), of Tucson Arizona, and is contained within a conceptual open pit designed at US$1.50/lb copper and US$550/oz gold, and stated at a US$4.00/tonne Net Smelter Return cut-off.

Inferred resources total 6.5 million tonnes grading 0.19% Cu and 0.29 g Au/t.



TABLE I

MT MILLIGAN MINERAL RESOURCE ESTIMATE (1)
Metal Prices of $1.50/lb Cu and $550/oz Au
US$4.00/tonne Net Smelter Return cut-off

------------------------------------------------------------------------
------------------------------------------------------------------------
Tonnes Cu Au Cu lbs Au ozs
Category (Millions) (%) (g/t) (Millions) (Millions)
------------------------------------------------------------------------
Measured 242.7 0.222 0.456 1,188 3.6
------------------------------------------------------------------------
Indicated 174.4 0.194 0.345 746 1.9
------------------------------------------------------------------------
Total M+I 417.1 0.210 0.410 1,934 5.5
------------------------------------------------------------------------

------------------------------------------------------------------------
Inferred 6.5 0.185 0.293 26 0.1
------------------------------------------------------------------------
------------------------------------------------------------------------

Note:
(1) Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability


A second case was evaluated considering the impact of using US$2.00/lb copper and US$600/oz gold metal prices, and all other parameters remaining the same. Within this new geometry the resource model contains measured material of 321 million tonnes grading 0.20% Cu and 0.40 g/t Au, and indicated material of 344 million tonnes grading 0.17% Cu and 0.27 g/t Au. Thus, the total measured and indicated tonnage of 665 million tonnes represents a 60% increase over the base case resource. The combined measured and indicated copper grade of 0.19% represents a 42% increase in contained copper to 2.7 billion lb, and similarly the combined measured and indicated gold grade of 0.33 g/t Au represents a 29% increase in contained gold to 7.1 million oz.

Robert Pease stated; "A case using $2 copper and $600 gold is within the range that I believe can be reasonably anticipated. This case significantly expands the mineralized material contained within a conceptual pit shell, and demonstrates the strength and size of the mineralizing system at Mt Milligan."

The reported mineral resource estimate is based on a 3-D geologic model that incorporated over 180,000 individual assays from 218,701 metres of core drilling in 960 drill holes. Block model grades were interpolated from ten metre down-the-hole composites using ordinary kriging. High grade outliers were capped prior to compositing based on a statistical review of gold and copper assays.

Net Smelter Return calculations are based on a financial model which includes metal prices, forecasted metallurgical recoveries, smelter and refining treatment terms and concentrate transportation costs. Metallurgical performance parameters have been established by Wardrop Engineering Ltd. and are based on on-going metallurgical testwork conducted by G&T Metallurgical Services.

Mr. Ken Deter, Chief Metallurgist, Wardrop Engineering Ltd., and Mr. Herb Welhener, Vice President, Independent Mining Consultants, Inc., are both Qualified Persons, as defined by National Instrument 43-101, and have reviewed and approved of the contents of this news release.

The NI 43-101 Technical Report for the Mt. Milligan mineral resource estimate will be filed on SEDAR within 45 days of the date of this news release.

PRELIMINARY ECONOMIC ASSESSMENT AND FEASIBILITY STUDY

Terrane has contracted Wardrop Engineering Ltd. to complete a Preliminary Economic Assessment ("PEA") of the Mt. Milligan Project in Q4 2007. The PEA will use the reported base case resource estimate as a basis for the study. A full Feasibility Study is expected to be completed in Q1 2008.

ABOUT THE COMPANY

Terrane Metals Corp. is an exploration and mine development company focused on the development of the Mt. Milligan gold-copper and Berg copper-molybdenum-silver projects in British Columbia, Canada. Goldcorp Inc. (NYSE:GG)(TSX:G) owns a 58% equity interest in Terrane 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 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, 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.
    Ryan King
    Investor Relations
    (604) 681-9930 or Toll Free: 1-866-681-9930
    Website: www.terranemetals.com