Terrane Metals Corp.

Terrane Metals Corp.

July 08, 2009 10:00 ET

Terrane Metals Provides Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 8, 2009) - Robert Pease, President and CEO of Terrane Metals Corp. ("Terrane" or the "Company") (TSX VENTURE:TRX), is pleased to provide an update on the activities of the Company. In December 2008, the Company announced a Modified Project Execution Plan (the "Modified Plan") for its 100%-owned Mt. Milligan Project (the "Project"). Key objectives on the Modified Plan are to reduce Project implementation risk, minimize on-going and near-term capital expenditures and to better position the Project for a timely construction start-up. The Modified Plan is proceeding on budget and on schedule (see Terrane Press Release Dec 8, 2008, for more details).


As part of the Modified Plan, Terrane initiated a Feasibility Update Study (the "Update Study") to incorporate current capital and operating expenditures based on detail design work undertaken since completion of the March 2008 Feasibility Study. Updated design work includes revisions to the tailings storage facility, power line, access road and engineering drawings for the 60,000 tonnes per day process plant. In addition, reserves and mine design will be recalculated/revised using metal prices of $1.60/lb copper and $690/oz gold; the March 2008 Feasibility Study used prices of $1.60/lb copper and $550/oz gold.

The Update Study will be coordinated by Wardrop Engineering Inc. ("Wardrop"). In addition to Wardrop, Terrane has appointed technical, engineering, and finance specialists in ore reserve estimation and mine design, environmental and socioeconomic studies, mineral processing and metallurgy, geotechnical, infrastructure and capital and operating cost estimation. The team includes: Independent Mining Consultants Inc., AMEC Earth and Environmental, G&T Metallurgical Services Ltd., Knight Piesold Ltd., and Merit Consultants International Inc. Terrane expects that the Update Study will be completed in Q4 2009.


Terrane has initiated a 70 line-km Induced Polarity ("IP") ground geophysical survey to investigate the numerous geophysical targets identified by the June 2008 1,452 line-km airborne HeliGEOTEM magnetic-electromagnetic survey. Twelve of these targets are within 4 km of the MBX and Southern Star deposits and display similar magnetic signatures. Results from the IP survey will be used to prioritize and guide future drilling programs as required.

In conjunction with the IP program, field crews have been mobilized to conduct soil and stream geochemistry programs to expand upon and infill earlier surveys in the Project area.


On March 19, 2009, the Company announced receipt of an Environmental Assessment ("EA") Certificate from the Province of British Columbia for its Mt. Milligan Project. Receipt of the EA Certificate followed a comprehensive 180-day review led by the Province's Environmental Assessment Office. The Company continues to work with provincial ministries on mine operating permits which are expected in Q4 2009.

On May 15, 2009, the federal Minister of the Environment announced that the EA review of the Mt. Milligan Project under the Canadian Environmental Assessment Act will continue as a comprehensive study. The public comment period on Terrane's EA application concluded on June 23, 2009. Next steps in the federal EA process include the federal responsible authorities preparing a comprehensive study report, followed by a final public comment period on this report. A federal EA decision is expected in Q4 2009.

On June 24, 2009, the Nak'azdli First Nation from Fort St. James, BC filed a petition with the Supreme Court of British Columbia against the province of British Columbia regarding the proposed development of the Mt. Milligan Project. Terrane regrets the action taken by Nak'azdli and continues to have an 'open door' policy with the Nak'azdli community with respect to training, jobs and contracting opportunities.


On May 19, 2009, the Company reported a 36% expansion of the resource at its Berg Copper-Molybdenum-Silver Project (see Terrane Press Release dated May 19, 2009). The Company has filed a NI 43-101 Technical Report with SEDAR in support of the updated resource estimate.

Metallurgical studies, including a 5-tonne pilot plant to produce copper and molybdenum concentrates, and studies to investigate and optimize project development scenarios are underway.


Terrane is pleased to announce Mr. Timo Jauristo (AusIMM), Vice President Corporate Development of Goldcorp Inc., has been appointed to the Board of Directors. Mr. Jauristo will replace Mr. Chuck Jeannes, President and CEO of Goldcorp. Mr. Jeannes stated: "My time as a Director afforded me the opportunity to observe and work closely with the Terrane Board and management team. I remain confident that our investment in Terrane is in good hands and I look forward to the completion of the Modified Plan and Update Study in Q4 2009."


The Modified Plan is fully funded through a $40 million credit facility guaranteed by majority shareholder Goldcorp Inc. As of June 30, 2009, the Company had drawn down $14.5 million from the credit facility and forecasts to draw down an additional $7.0 million by the end of 2009 to complete the Modified Plan. The Company is also pleased to report that financial commitments to consultants and suppliers of long lead-time equipment have been successfully restructured. Terrane has engaged a Project Finance Advisor to assess strategic financing and debt market options in order to advance Mt. Milligan through to a construction decision.


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. (TSX:G)(NYSE:GG) owns a 59% equity interest in Terrane on a fully diluted basis. In July 2008 Terrane and Goldcorp entered into an agreement which grants Goldcorp an option to convert its equity interest in Terrane into a participating joint venture interest in the Mt. Milligan Project (see press release July 9, 2008).


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.

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