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Terrane & Goldcorp joint venture Mt. Milligan Project
Robert Pease, president/CEO, reports Terrane Metals corp. [TRX-TSXV] has agreed to a loan arrangement and a joint venture option with majority shareholder goldcorp inc. [G-TSX; GG-NYSE] to develop the Mt. Milligan copper-gold project in British Columbia for commercial production. Terrane has a 100% interest in the project. Under the terms, Goldcorp will guarantee a non-revolving term credit facility of up to $40 million to acquire equipment for constructing a 60,000 tonne-per-day open pit mine. The loan will have an 18-month term and be underwritten by the Bank of Montreal. The agreement provides Goldcorp with a one-time option to convert its fully diluted in-the-money equity interest in Terrane into a participating joint venture interest in the project. The option can only be exercised during the term of the credit facilityUSCorp starts Twin Peaks Project drilling
Robert Dultz, chairman/CEO, reports that UScorp [USCS-OTCBB] has commenced drilling on its 100%-owned Twin Peaks gold and silver project in Yavapai County, Arizona. Twin Peaks has a high-angle quartz vein stockwork of epithermal and secondary origin. The first recorded production on the property was the Hayes Silver Mine in 1886. The ore, running at over 300 oz. silver/ton, was shipped directly to England for smelting. Two miles to the north, the Crosby Mine produced $40 million worth of gold before shutting down during World War II. The reverse circulation drilling program is designed to explore the extension and continuation of the previously identified mineralized trend. Drilling will also test the Glory Hole area for extensions of the mineralized area to the west and north of the Hayes deposit located in the south-central part of the property. Alluviums in the area and then, only if Goldcorp's resulting joint venture interest will be greater than 30% and less than 60%. Upon exercise of the option, among other terms and conditions, Goldcorp's 240 million convertible preferred shares of Terrane would be cancelled and the parties would develop and operate the project under a joint venture operating agreement. The party holding the majority participating interest would be operator. A Special Independent Committee of the board, assisted by Paradigm Capital and Stikeman Elliot LLP, determined the agreement is fair. Goldcorp can nominate two persons for approval as Terrane directors upon regulatory and shareholder approvals. Upon exercise of the option, the two Goldcorp nominees would resign from the Terrane board and the joint venture shall be governed by a management committee comprised of representatives from Terrane and Goldcorp. Terrane currently expects to hold a meeting of shareholders in July 2008, as the transaction is subject to minority shareholder approval. will be tested with numerous short holes. In addition, a few deep holes will be drilled ranging in depth from 100 to 1,000 feet. The Twin Peaks group of claims has a NI 43-101 compliant resource estimate of 15,800,000 tons grading 0.126 oz. gold/ton in two deposits and is broken down as follows: The Crosby deposit hosts measured and indicated resources totaling 1,800,000 tons grading 0.134 oz. gold/ton and the Hayes deposit contains measured and indicated resources totaling 14,000,000 tons grading 0.120 oz/ton. The Crosby deposit has inferred resources of 3,000,000 tons grading 0.132 oz. gold/ton, while the Hayes deposit has inferred resources of 28,000,000 tons grading 0.126 oz/ton. A feasibility study has been completed at Twin Peaks which contemplates an open pit mine at 800 tons/day for an average annual production of 34,633 ounces of gold and 125,581 ounces of silver. Mine life is forecast at 12.9 years. To the south, USCorp is also active on its 100%-owned Picacho Salton Project in A Wardrop Engineering feasibility study estimated capital costs to build the mine at $917 million with commercial production scheduled for first quarter 2012. The project would create 400 permanent jobs over a 15.3-year mine life. Average annual metal production for years one through 15 is forecast at 88 million pounds of copper and 217,000 ounces of gold. The average annual production costs for the life of the mine is forecast at US $0.64 per pound of copper, net of gold credit and -US $250 for one ounce of gold net of copper credit using US $2.75/lb for copper and US $600/oz. for gold. Pre-tax payback for the life of mine is expected to be 3.7 years with a pre-tax internal rate of return of 18.1%. The pre-tax net present value of 8% equates to $606 million. The Mt. Milligan Project hosts a mineral reserve of 333.7 million tonnes containing 1.6 billion pounds of copper and 4.59 million ounces of gold. Millfeed grades will be 0.217% copper and 0.428 grams gold/tonne. n Imperial County, southeast California, 35 miles northwest of Yuma, Arizona, near the formerly producing Picacho Mine of Glamis Gold (now part of Goldcorp). USCorp has completed field work for the environmental and biological assessments and the archeological assessment will be completed shortly. The company has also completed a NI 43-101 compliant resource estimate for the Picacho Salton property. Measured resources stand at 6,614,666 tonnes grading 0.035 oz. gold/ton, indicated resources are pegged at 8,466,777 tons of 0.035 oz/ton and inferred resources are 33,867,093 tonnes of 0.015 oz/ ton. The Picacho Salton property hosts gold values in both the bedrock and the surface alluvium hosting placer gold. A feasibility study has been completed envisaging production of 1,000 tons/day. "Our primary goal this year is to complete the exploration stage on our properties, and begin development with the goal of beginning production as soon as practicable,? said Dultz. n 38 www.resourceworld.com August 2008natural fancy coloured diamonds www.torchriver.ca3bolero resources featuresmining newsbuying opportunities in junior mining stocks the world needs it we've got it910111213diamond exploration & mining15161 888 242 3234 1819- a field visit yukon mining exploration is booming, much more than in the rest of canada. it has increased from $22 million in 2004 to an estimated $132 million for 2008 - a 600% increase. while for this same period mining exploration in canada increased from $1.17 billion to $2.76 billion, a 235 % jump.2223ad design by25big nic, hope bcartha resources exploring wyoming uranium prospectsgive me a stage where this bull can ragesouth africa and precious metalsmolybdenum, uranium & goldmarc natural fancy coloured diamondsin 2005, only 616 carats of investment-grade natural fancy diamonds were recovered, compared with 123.29 million carats of colourless diamonds.leadership development goes deeper at goldcorp35endeavour silver intersects mexican high-grade silvercrescent gold spins off uranium assets to focus on gold mininghard creek nickel increases turnagain resourcesapollo gold plans black fox gold production41riverstone drills karma project, burkina faso, west africaglass earth gold ltd. exploring new zealandpremier gold active on several frontsride the ups & downs encana using co oiloilwww.cambridgehouse.combc's horn river gas playwhen where who how developments in alternative energyalternative energyin the newsnaikun wind energy advancing bc offshore wind projectfacts and newsfacts and newscoming events59directoryprofessional directorysummer doldrums for many junior miners6364