BRITISH COLUMBIA — The directors of Vancouver-based Terrane Metals have given the go-ahead for construction to start on the company’s Mt. Milligan copper-gold project 155 km northwest of Prince George. The decision follows the expiration of Goldcorp‘s option to convert its equity interest in Terrane into a participating joint venture. Goldcorp has, however, guaranteed a $40-million credit facility for Terrane. Terrane is now considering financing alternatives for its $172-million 2010 construction budget.
Mt. Milligan will be a conventional truck-shovel open pit mine with a 60,000-t/d copper flotation process plant. The feasibility study update in 2009 targets average annual production of 262,100 oz of gold and 89 million lb of copper for the first six years of a 22-year mine life. Net of a copper credit, gold production cash cost is negative US$8 per oz, assuming an average copper price of $2 per pound. The project will provide about 400 direct permanent jobs and significant long-term economic benefits for the region.
Additional project information is posted at www.TerraneMetals.com.