Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Vancouver, British Columbia: Robert Pease, President and Chief Executive Officer of Terrane Metals Corp. (“Terrane” or the “Company”) (TRX: TSX-V) 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.
Signed “Robert Pease”
Robert Pease, P.Geo, FGAC
President and CEO
For Further information contact:
Rob Pease, President and CEO
or
Ryan King, Investor Relations
(604) 681-9930 Phone
1 866 681 9930 Toll Free
http://www.terranemetals.com
