February 4, 2008

Resource Extraction

Terrane Metals Corp’s proposed Mt. Milligan mine would create 600 construction jobs

JIM STIRLING

correspondent

About 600 construction jobs will be created through the development of Terrane Metals Corp’s proposed Mt. Milligan project, about 155 kilometres northwest of Prince George.

The mine owners are currently working their way through requirements under British Columbia’s Environmental Assessment Act and Mt. Milligan is positioned to become the first new metal mine in the region in more than a decade. The mine, which will require a permanent work force of 350 to operate, will also need construction of a 92-kilometres power line.

The open pit mine is estimated to cost $827 million and will have an average annual production of 273,300 ounces of gold and 97 million pounds of copper during the first six years of its anticipated 15 year mine life.

The mining exploration industry is riding high in B.C. with a record spending of $416 million recorded in 2007. Central B.C. was the exploration boom’s epicentre where $94.6 million was spent on 88 projects.

These figures translate into good news for the manufacturers, suppliers and service providers for heavy construction equipment that are the work horses of the mining exploration industry.

Rob Pease, Terrane Metal’s president and CEO, is also chair of the Association of Mining Exploration B.C. He told the audience at a recent natural resources forum and trade show in Prince George, that B.C. attracted about 18 per cent of Canadian exploration capital in 2006 and that figure has since increased. Pease said that augurs well for the future as commodity prices for gold, silver, copper, molybdenum and zinc continue at healthy levels.

“China, India, Brazil and some of the former Soviet Union countries are the drivers of commodity prices and that speaks well to the demand for our metals,” Pease said.

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