Terrane Metals Corp.
TSX VENTURE : TRX

Terrane Metals Corp.

May 19, 2009 09:00 ET

Terrane Reports 36% Expansion of Berg Resource

Contained Metals 3.3 Billion lbs Copper, 412 Million lbs Molybdenum, 61 Million ozs Silver

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 19, 2009) - Robert Pease, President and CEO of Terrane Metals Corp. ("Terrane" or the "Company") (TSX VENTURE:TRX), is pleased to announce an updated NI 43-101 compliant Mineral Resource estimate for the Company's 100%-owned Berg Project. The updated resource incorporates results from the 31 hole - 11,661 metre core drilling program completed in October 2008.

Measured and Indicated Resources have expanded by 36% over the previously reported resource to 506 million tonnes containing 3.3 billion lbs copper, 412 million lbs molybdenum and 61.4 million ozs silver. Inferred Resources contain 0.7 billion lbs copper, 107 million lbs molybdenum and 11.7 million ozs silver. The NI 43-101 Technical Report will be filed on SEDAR within 45 days.

"This updated resource estimate continues to demonstrate potential to expand the Berg resource," stated Rob Pease, President and CEO of Terrane Metals Corp. "We successfully converted over 700 million pounds of copper and 120 million pounds of molybdenum from previously Inferred Resources to Measured and Indicated categories. The 2008 drilling program also discovered an additional 739 million pounds copper and 107 million pounds molybdenum of new Inferred Resources."

The reported Mineral Resource estimate at a 0.30% copper equivalent cutoff grade is shown in Table I. Copper equivalent grades are calculated using metal prices of US$1.60/lb Cu, US$10/lb Mo, US$10/oz Ag and take into account forecast metallurgical recoveries into separate copper and molybdenum concentrates.



TABLE I

BERG MINERAL RESOURCE ESTIMATE (1)
At 0.30% Copper Equivalent Cutoff Grade

--------------------------------------------------------------------------
Tonnes Cu Mo Ag Cu lbs Mo lbs Ag ozs
Category (millions) (%) (%) (g/t) (millions) (millions) (millions)
--------------------------------------------------------------------------
Measured 53.3 0.48 0.030 4.5 559 36 7.7
--------------------------------------------------------------------------
Indicated 452.7 0.28 0.038 3.7 2,783 376 53.7
--------------------------------------------------------------------------
Measured &
Indicated 506.0 0.30 0.037 3.8 3,342 412 61.4
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Inferred 144.6 0.23 0.033 2.5 739 107 11.7
--------------------------------------------------------------------------
Note:
(1) Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability.


The updated Mineral Resource estimate utilizes a drill hole database containing assay results from 167 core holes totalling 41,217 metres of which Terrane obtained 57% of the drill hole assay data from the 2007 and 2008 drilling programs. The remaining assay data was collected between the years 1964 and 1980 from core drilling programs operated by Kennecott Canada and Placer Dome.

The reported estimate is based on a 3-D geologic model where individual block grades were interpolated from 3-metre down-the-hole composites using an anisotropy model and ordinary kriging. High grade outliers were capped based on a statistical review of copper, molybdenum and silver assays. Block grades were then classified into the Indicated Mineral Resource category if the block was estimated using data from at least two drill holes. A subset of densely drilled supergene horizon was classified as Measured Mineral Resource as these blocks were estimated with a minimum of two and an average of four drill holes, with an average composite spacing of 30 metres. Inferred Mineral Resource blocks were estimated using data from only a single drill hole. Only blocks within 450 metres of the surface were included in the resource estimate.

Measured, Indicated and Inferred Mineral Resources over a range of copper equivalent cutoff grades are summarized in Table II.



TABLE II

BERG MINERAL RESOURCE ESTIMATES (1)
GRADE - TONNAGE DISTRIBUTION

--------------------------------------------------------------------------
MEASURED INDICATED
------------------------------- ---------------------------------
CuEQ Ton- Cu Mo Ton- Cu Mo
Cut- nes lbs lbs nes lbs lbs
off (mill- Cu Mo (mill- (mill- (mill- Cu Mo (mill- (mill-
(%) ions) (%) (%) ions) ions) ions) (%) (%) ions) ions)
--------------------------------------------------------------------------
0.20 54.7 0.47 0.030 566 36 586.7 0.25 0.033 3,242 422
--------------------------------------------------------------------------
0.30 53.3 0.48 0.030 559 36 452.7 0.28 0.038 2,783 376
--------------------------------------------------------------------------
0.40 50.6 0.49 0.031 541 35 332.1 0.30 0.043 2,218 317
--------------------------------------------------------------------------
0.50 44.0 0.50 0.034 490 33 218.0 0.33 0.049 1,570 237
--------------------------------------------------------------------------

--------------------------------------------------------------------------
MEASURED AND INDICATED INFERRED
------------------------------- ---------------------------------
CuEQ Ton- Cu Mo Ton- Cu Mo
Cut- nes lbs lbs nes lbs lbs
off (mill- Cu Mo (mill- (mill- (mill- Cu Mo (mill- (mill-
(%) ions) (%) (%) ions) ions) ions) (%) (%) ions) ions)
--------------------------------------------------------------------------
0.20 641.5 0.27 0.032 3,808 458 248.6 0.20 0.026 1,109 141
--------------------------------------------------------------------------
0.30 506.0 0.30 0.037 3,342 412 144.6 0.23 0.033 739 107
--------------------------------------------------------------------------
0.40 382.6 0.33 0.042 2,759 352 74.0 0.26 0.042 423 69
--------------------------------------------------------------------------
0.50 262.0 0.36 0.047 2,059 269 30.8 0.30 0.050 202 34
--------------------------------------------------------------------------
Note:
(1) Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability.


SUPERGENE ENRICHED COPPER HORIZON

The 2008 program better defined the near-surface, flat-lying supergene-enriched copper horizon. The supergene horizon is extensive across the Berg resource area with a vertical thickness ranging from 40 to 200 metres. Supergene mineralization is typically covered by less than 40 metres of leached cap and overburden, and underlain by +700 metres of hypogene mineralization. Preliminary metallurgy work indicates that copper, molybdenum and silver will report to separate copper and molybdenum concentrates. Average recoveries from the supergene-enriched horizon are estimated at 83% Cu, 61% Mo, and 67% Ag.

The geometry and near-surface nature of the supergene-enriched copper horizon offers the opportunity for a high-grade starter pit. Table III summarizes the Berg Mineral Resource for the supergene-enriched horizon at a 0.30% copper equivalent cut off.



TABLE III

BERG MINERAL RESOURCE - SUPERGENE HORIZON (1)
At 0.30% Copper Equivalent Cutoff Grade

--------------------------------------------------------------------------
Tonnes Cu Mo Ag Cu lbs Mo lbs Ag ozs
Category (millions) (%) (%) (g/t) (millions) (millions) (millions)
--------------------------------------------------------------------------
Measured 53.3 0.48 0.030 4.5 559 36 7.7
--------------------------------------------------------------------------
Indicated 82.6 0.37 0.026 3.4 679 47 9.0
--------------------------------------------------------------------------
Measured &
Indicated 135.9 0.41 0.028 3.8 1,239 83 16.7
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Inferred 17.7 0.33 0.021 1.8 128 8 1.0
--------------------------------------------------------------------------
Note:
(1) Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability.


MOLYBDENUM-RICH MINERALIZATION

The 2008 drilling program successfully expanded the molybdenum-rich core zone, defining a steeply-inclined 2 km long panel adjacent to the Berg Stock with an estimated true width ranging from 50 to 120 metres. Molybdenum-rich mineralization has been drill tested to a vertical depth of 850 metres and is open to depth. Notable drill holes that intersected molybdenum-rich mineralization included: Hole 167 with 65.7 metres grading 0.125% Mo, Hole 176 with 75.0 metres grading 0.100% Mo, and Hole 197 with 57.7 metres grading 0.109% Mo. Drill Hole 194 is also notable in that it is the deepest hole completed to date at Berg and returned 844.5 metres grading 0.048% Mo. The hole bottomed in similar mineralization 850 vertical metres below surface.

Geometry of the molybdenum-rich core zones and grade distribution within them offers a number of higher grade-lower tonnage development scenarios. Table IV summarizes the Berg Mineral Resource estimate at a 0.030% molybdenum cut off, representative of the molybdenum-rich core zone within 450 metres of surface.



TABLE IV

BERG MINERAL RESOURCE ESTIMATE - MOLYBDENUM RICH CORE ZONE (1)
At 0.03% Molybdenum Cutoff Grade

--------------------------------------------------------------------------
Tonnes Cu Mo Ag Cu lbs Mo lbs Ag ozs
Category (millions) (%) (%) (g/t) (millions) (millions) (millions)
--------------------------------------------------------------------------
Measured 22.4 0.48 0.048 5.0 236 24 3.6
--------------------------------------------------------------------------
Indicated 285.3 0.26 0.050 3.7 1,613 313 33.9
--------------------------------------------------------------------------
Measured &
Indicated 307.7 0.27 0.050 3.8 1,848 336 37.4
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Inferred 96.3 0.17 0.046 2.4 369 97 7.6
--------------------------------------------------------------------------
Note:
(1) Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability.


Mr. Stewart Harris, P.Geo. of Equity Exploration Consultants Ltd., Mr. Darin Labrenz, P.Geo., Chief Geologist, Terrane Metals Corp. and Mr. Paul Hosford, P.Eng., VP Engineering, Terrane Metals Corp., all Qualified Persons as defined by National Instrument 43-101, have reviewed and approved of the contents of this news release.

ABOUT TERRANE METALS CORP.

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).

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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