VANCOUVER, BRITISH COLUMBIA (TSX VENTURE: TRX), is pleased to
announce that Wardrop Engineering Inc. ("Wardrop") has completed a
NI 43-101 compliant Mineral Resource estimate for the Company's
100%-owned Berg Project, 84 km southwest of Houston, British
Columbia, Canada.
Indicated Resources contain 2.5 billion lbs copper, 299 million
lbs molybdenum and 25.4 million ozs silver. Inferred Resources
contain 0.8 billion lbs copper, 122 million lbs molybdenum and 9.7
million ozs silver. The NI 43-101 Technical Report will be filed on
SEDAR within 45 days.
"This resource estimate is an important milestone for the Berg
Project. It is the first NI 43-101 compliant resource ever produced
for this deposit," stated Rob Pease, President and CEO of Terrane
Metals Corp. "We are encouraged by this initial study and will
continue to advance the Berg deposit this year with a 10,000 metre
core drilling program designed to expand the resource and
investigate the higher-grade zones of molybdenum and silver
discovered within the deposit."
The reported Mineral Resource estimate at a 0.30% copper
equivalent cutoff grade is shown in Table I. Copper equivalent
grades are calculated using four-year rolling average metal prices
of US$2.43/lb Cu, US$27.43/lb Mo, US$10.23/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
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Tonnes Cu Mo Ag Cu lbs Mo lbs Ag ozs
Category (millions) (%) (%) (g/t) (millions) (millions) (millions)
--------------------------------------------------------------------------
Indicated 372.5 0.31 0.036 2.1 2,524 299 25.4
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Inferred 140.9 0.25 0.039 2.2 771 122 9.7
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Note:
(1) Mineral Resources are not Mineral Reserves and do not have demonstrated
economic viability.
The reported Mineral Resource estimate incorporates results from
a 29 hole - 11,289 metre drilling program completed in 2007. The
Project drill hole database contains assay results from 136 core
holes totalling 29,553 metres of which Terrane obtained 38.2% of
the drill hole assay data from the 2007 drilling program. The
remaining assay data was collected between the years 1964 and 1980
from core drilling programs operated by Kennecott Canada and Placer
Dome. As this assay data was collected prior to the implementation
of NI 43-101 and modern quality assurance-quality control (QA/QC)
protocols, a series of studies were conducted to validate the
historic assay results, including; resampling of historic drill
core, closest sample comparisons with 2007 drill holes, and
database validation with historic assay records. Wardrop has
reviewed the validation program conducted by Terrane and has
determined that the historic assays are reliable and suitable for
resource estimation.
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 prior to compositing 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. 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.
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
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INDICATED INFERRED
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Ton- Cu Mo Ton- Cu Mo
CuEQ nes lbs lbs nes lbs lbs
Cutoff (mill- Cu Mo (mill- (mill- (mill- Cu Mo (mill- (mill-
(%) ions) (%) (%) ions) ions) ions) (%) (%) ions) ions)
--------------------------------------------------------------------------
0.20 459.7 0.28 0.032 2,866 324 213.5 0.22 0.030 1,048 141
--------------------------------------------------------------------------
0.30 372.5 0.31 0.036 2,524 299 140.9 0.25 0.039 771 122
--------------------------------------------------------------------------
0.40 288.2 0.33 0.042 2,083 264 98.6 0.26 0.047 567 103
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0.50 205.7 0.35 0.047 1,574 215 66.2 0.27 0.056 386 82
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Note:
(1) Mineral Resources are not Mineral Reserves and do not have demonstrated
economic viability.
MOLYBDENUM-RICH MINERALIZATION
The 2007 drilling program outlined a zone of molybdenum-rich
mineralization within wider and lower grade porphyry-style
copper-molybdenum mineralization. This steeply-inclined
molybdenum-rich core zone is adjacent to the Berg Stock and has
been further subdivided into South, Northeast and West Zones (see
Terrane News Releases dated January 14, 2008 and January 22, 2008).
The core zone is up to 150 metres in horizontal width and has a
strike length of over 2,000 metres. Molybdenum-rich mineralization
is exposed at surface and has been drill-tested to a depth of 500
metres. Notable drill holes that intersected molybdenum-rich
mineralization included: Hole 146 with 90.9 metres grading 0.085%
Mo, Hole 154 with 46.8 metres of 0.102% Mo and Hole 156 with 422.2
metres of 0.063% Mo.
Geometry of the molybdenum-rich core zones and grade
distribution within them offers a number of higher grade-lower
tonnage development scenarios. Table III compares the Berg
Indicated Mineral Resource estimate with other molybdenum deposits
under development or in commercial production. The Mineral
Resources are compared at a 0.030% Mo cutoff grade and are
inclusive of Mineral Reserves where applicable.
TABLE III
MOLBYDENUM PROJECT/MINE COMPARISON
At 0.030% Mo Cutoff
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Ton- Cu Mo
nes lbs lbs
(mill- Cu Mo (mill- (mill- Resource
Deposit ions) (%) (%) ions) ions) Category
--------------------------------------------------------------------------
Endako Mine Measured &
Thompson Creek Metals (1) 331.2 - 0.051 - 375 Indicated
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Ruby Creek Measured &
Adanac Moly Corp. (2) 293.7 - 0.054 - 350 Indicated
--------------------------------------------------------------------------
Spinifex Ridge, Australia Measured &
Moly Mines Ltd. (3) 469.8 0.09 0.060 933 622 Indicated
--------------------------------------------------------------------------
Berg 212.3 0.29 0.050 1,337 233 Indicated
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Sources:
(1) Technical Report on the Endako Mine; Wardrop Engineering; May 29, 2007
(2) Technical Report - Mineral Resource Estimate, Ruby Creek Project; AMEC;
April 11, 2005
(3) Spinifex Ridge Molybdenum-Copper Deposit, WA, NI43-101 Technical
Report; SRK Pty Ltd.; Oct. 2007
SILVER MINERALIZATION
Limited metallurgical testwork by Terrane and previous operators
(Kennecott Canada and Placer Dome) demonstrated that silver reports
to a copper concentrate in payable quantities. However, holes
drilled prior to 1980 were not assayed for silver and as a result
only 40% of the database contains silver assays. In view of limited
silver analytical data, silver assays were conservatively capped at
20 g/t and any assay composites without a silver value were
assigned a value of 0 g/t. This methodology returned an average
grade of 2.1 g/t for the reported Indicated Mineral Resource. The
grade increased to 3.4 g/t if assay composites without assigned
silver values were excluded from the estimate.
Statistical analysis suggests that there are two styles or
populations of silver mineralization at Berg. The first is
widely-distributed, lower grade and associated with porphyry-style
copper mineralization. The 29 hole - 2007 drilling program returned
a weighted uncut average value of 5.0 g/t and a median value of 3.0
g/t for the first population. The second population is
structurally-controlled, higher grade, and was first noted in drill
hole 162 that intersected 106.6 metres grading 65 g/t in an area
that had seen limited drilling by previous operators. The 2008
drilling campaign will further investigate these high-grade
structures to confirm the silver resource potential.
2008 WORK PROGRAM
Terrane will continue to advance the Berg Project in 2008 with a
10,000 metre core drilling program designed to expand on the
existing resource and to investigate high-grade molybdenum and
silver potential within the deposit. The two rig core drilling
program will commence in June and is expected to take three months
to complete. Terrane is pleased to announce that Britton Bros.
Diamond Drilling Ltd. and Equity Engineering Ltd. have been
contracted to conduct and manage the 2008 field program.
Mr. Tom Stubens, Senior Geologist, Wardrop Engineering Inc., who
is a Qualified Person as defined by National Instrument 43-101, has
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. (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.
Contacts: Terrane Metals Corp. Ryan King Investor Relations
(604) 681-9930 Website: www.terranemetals.com